64 THE MICHIGAN DAILY
Canadian Leader Faces
Problems with Provinces
U.S. Presses Farm Trade Issue
-
By OVID A. MARTIN W
Associated Press Farm Writer
WASHINGTON-The proposed
injection of 'farm controls into
the international trade field is
rising as an issue as United Statesl
prepares for an important con-
ference this spring on liberaliza-
tion of world trade.
The conference is scheduled toI
open in Geneva early next month
under the General Agreement oni
Tariffs and Trade. GATT is ani
international accord signed in
1948 to foster growth of world
trade. The 58 members who area
parties to the accord account for
more than 80 per cent of the non-
Communist world trade.r
The United States-armed witha
the Trade Expansion Act of 1962
--will press for a general reduc-
tion in tariffs and other import
restrictions on a wide range of
industrial and agricultural com-
tnodities moving in world trade.
This act provides for up to 50
per cent reductions in U.S. tariffs
in return for similar concessions
from other countries.
Common Market
This country's greatest advers-
ary in efforts to lower foreign
barriers to its farm products will
be the European Common Market
-France, West Germany, Italy,
Belgiun, the Netherlands and
Luxembourg. This big economic'
area, under leadership of France,
is insisting bn tightened restric-
Lions on imports of some major
U.S. farm products.
American trade leaders obvious-
ly have given up on the hope that
they get the Common Market to
agree to more liberal trade poli-
cies on foreign farm products.
Evidence of this is provided in
recent actions of Secretary of
Agriculture Orville L. Freeman
which propose agreements under
which the Common Market coun-
tries as well as other farm pro-
duct importer members of GATT
would set basic import quotas.
Share Growth
These would carry provisions
allowing exporting countries, such
as the United States, to share in.
Congo Mission
Asks UN Help,
-EOPOLDVILE (VP)-A group1
of white missionaries in restive
Kivu province has messaged that
their. Lemera mission is menaced
by encircling warriors and appeal-
ed for help from the United Na-
tions. f
Informe4 sources said yesterday
U.N. civilian operations men have
been dispatched to Bukavu, 40
miles north of the mission, as a
precaution if it becomes necessary
to withdraw the missionaries.
the growth in demand for such
products in the years. ahead.'
Such agreements would be pat-
terned after recent accords this;
country negotiated with Australia,
New Zealand and Ireland restrict-
ing imports of meat. These ac-
cords set poundage import quotas
for 1964 and give the three coun-
tries conditional increases in sub-
sequent years---that is, a share in
the expected growth in the do-
mestic demand for meats.
This trade mechanism is being
attacked by the American Farm
Bureau Federation, long an ad-
vocate of much freer world trade.
It contends market-sharing agree-
ment in world trade would be
nothing more than an extension,
on a world scale, of government
supply-management programs the
administration has been advocat-
ing for domestic agriculture.
Trade-Restrictive
Market-sharing agreements as
well as international commodity
agreements setting up export and
import quotas are trade-restric-
tive rather than trade-expansive
in character, contended the Farm
j Bureau. In the past such agree-
17
1
f
1
f
1
i
1
A
ORVILLE L. FREEMAN
ments
have worked to the
dis-
National
Roundup
By The Associated Press
WASHINGTON - The nation
should set a goal of three per
cent unemployment and increase
federal spending 'to $5 billion a
year to help achieve it, Democrats
on a Senate labor subcommittee
said yesterday.
Two of the three Republicans on
the subcommittee dissented vigor-
ously from the Democrat major-
ity's far-reaching proposals.
-* * *
WASHINGTON. - Leaders of
ACT, a militant new civil rights
group, yesterday pledged support
for stall-ins on the approaches to
the New York World's Fair and
for other demonstrations aimed at
racial segregation.
They took their stand despite
cautionary statements by Presi-
dent Lyndon B. Johnson and other
civil rights proponents that such
demonstrations might jeopardize
passage of the House-approved civ-
il rights-bill now before the Sen-
ate.
LANSING-George N. Higgins,
a Ferndale auto dealer and former
state senator indicating he will
announce his candidacy for the
Republican nomination for gover-
nor next week, said here Friday
that "if I'm elected you'll have no
income tax, because you don't
need it."
advantage of this country's pro-
ducers, the farm organization;
said.
What this country should work!
for is the tearing down of high
tariffs, import quotas and other
restrictive trade barriers to per-
mit and encourage the world's
most efficient producers to fill the
demands, the Farm Bureau said.
But Freeman takes the view
that American insistence on an
elimination' of barriers to free
movement of farm products would
fail with the United States wind-
ing up with loss of markets which
it might otherwise be able to re-
tain under market-sharing agree-
ments or arrangements.
Little Indication
Of course, there has been little
indication that the European
Common Market will buy the,
market-sharing approach.
The Freeman plan is being sup-
ported by some other farm groups,
including the National Grange
and the National Farmers Union.
In insisting upon big shares of
foreign markets, this country is
expected to criticize policies being
followed or adopted'by some coun-
tries to, encourage greater domes-
tic production by offering high
price supports or government sub-
sidies or both.
Prediction
The Farm Bureau, which wants
to get government out of Ameri-
can agriculture, predicts that the
United States will be accused of
employing farm policies which it
does not want other countries-
particularly the Western Euro-
pean industrial countries - to'
adopt.
There have been indications
that trade experts at the State
Department take somewhat the
same view as does the Farm Bu-
reau. Because of this, some farm
leaders say they are fearful that
the U.S. negotiators may not make
as hard a fight for American
farm export markets as for
markets to industrial products.
But despite the opposition,
F"eeman is expected to be allowed
to push the farm market-sharing
approach at the Geneva sessions.
His aides say Freeman's market-
sharing plan has the indirect en-
dorsement of the Senate.
Denies Cutback
Of A-Material
By The Associated Press
WASHINGTON - President
Lyndon B. Johnson yesterday call-
ed "totally inaccurate" reports
that he would announce a major
cutback in the production of fis-
sionable materials for nuclear
weapons.
The ,riationally circulated news-
paper reports had cited high off i-
cials as saying thatdproduction
was to be cut back 20 per cent in
addition to the already announced
25 per cent cutback of earlier
this year.
Associated Press News Analysis
OTTAWA - Lester B. Pearson
begins his second year in office
Wednesday facing challenges that
could make him one of Canada's
greatest prime ministers-or the
last of Canada as now constituted.
As a Nobel Peace Prize winner
and a formber president of the
United Nations General Assembly,
Pearson won recognition as per-
haps the outstanding diplomat in
Canadian history.
Now, as prime minister, he needs
all his diplomatic skill to bring
Canada through a threat to its
future as a nation.
New Partnership
He must find a new basis of
partnership b e t w e e n English-
speaking Canada and French-
speaking Quebec Province or risk
seeing the nation split in two. He
must find a formula for granting
strong provincial governments
more money without weakening
the federal government's central
authority.
He may have to do both while
his Liberay Party lacks a majority',
in the House of Commons.
Pearson told Parliament this
week: "Our problem today is not
one of nation building. It is one
of nation saving."
He urged English Canada to rec-
ognize Quebec's special status as
the guardian of French Canada's
minority rights. He warned Que-
bec against exploiting that status.
Failure by either side, Pearson
said, could destroy confederation.
Despite the difficulties, Pear-
son still has several factors in
his favor.
When he took office last April
22 United States-Canadian rela-
tions had reached a low point,
due mainly to defense policy con-
flicts between Washington and the
former government of John Dief-
enbaker. One of Pearson's major
jolicy aims was to normalize ties
with the United States. He has
largely succeeded and now can
devote more time to Canada's in-
ternal problems.
Wheat Sales Spur
A booming economy bolstered by
mammoth wheat sales to Commu-
nist countries has brought the
Pearson government more time to
find solutions to Canada's long-
range economic and political woes.
An economic upswing enabled the
government to predict a one-third
cut in Canada's 'chronic budget,
deficit this year, despite a 3.8 per
cent rise in federal spending.
'he 67-year-old prime minister
has learned from the mistakes of
his first year in office.
The Liberal campaign of "60
days of decision" led to a feverish
effort to do too much too soon. It
spawned budgetary!blunders which
had to be withdrawn. The Pear-
son government's second budget, a
stand-pat document, slowed the
pace.
LESTER B. PEARSON
Also, Pearson showed evidence of
more confidence in his own politi-
cal judgment and of taking a firm-
er hand in"running his cabinet.
The Conservatives, the main
opposition party, have been weak-
ened by a split on the question of
Diefenlbaker's continued leader-
ship. And the Canadian people ap-
pear to be more fed up with elec-.
tions than with the minority gov-
ernments which the last two poll-
ings have produced. A national
election this year, the third in
three years, is not likely.
Canada's 265-seat House of
Commons is a Parliament of mi-
norities. Pearson's Liberals, five
seats short of a majority, have
128 votes; Diefenbaker's Conserva-
tives have 94. Three minor par-
ties share 41 seats and there are
two vacancies.
Opposition Parties
The four opposition parties could
bring down the government and
force an election by combining on
a no-confidence vote. On 23 such
tests since the Liberals took of-
fice; the closest margin was eight
votes.
Diefenbaker seeks an election
and is always at his best cam-
paigning. But enough opposition'
members apparently feel the pub-
lic has no stomach for an elec-
tion, and side with the govern-
ment.
All provinces are pressing Ot-
tawa for more funds for education,
welfare and other key areas Which
are their responsibilities under
Canada's constitution. The prob-
lem centers on Quebec, mainly be-
cause of the historic friction be-
tween French and English Cana-
diens.
Ottawa is attempting to meet
provincial demands but also faces
rising federal spending, continuing
deficits and pressure to even the
gap between richer and poorer re-
gions through strong, central con-
trol.
UN WORRIES
Congo Unit
Departure
Scheduled
UNITED NATIONS (P) - The
approaching withdrawal of the
United Nations military force from
the Congo is viewed here with
both relief and misgivings.
The world organization is get-
ting rid of a costly and often con-
troversial mission which has come
close to wrecking the UN finan-
cially. But many UN diplomats ex-
press doubts about the ability of
the shaky former Belgian territory
to maintain order without outside=
military forces.
These doubts are increasing as
preparations are begun toward li-
quidation of the massive four-
year UN operation, scheduled for
completion by June 30.
No Talk
No official has suggested pub-
licly that the UN military opera-
tion be extended. This could be
done only by a special session of
the General Assembly, and there is
no talk of that.
By the end of June the remain-
ing 4200 UN troops will leave
the Congo. The UN will continue
to be represented by 1150 civilian.
advisers and 400 Nigerian police.
During the peak year of 1961
the UN military force totaled 21,-
000. The cost that year exceeded
$100 million. Altogether the UN
has spent more than $300 million
in the Congo since its first inter-
vention in July, 1960.
Tribal Loyalty
To many of those connected with
the operation, results have been
disappointing. Many of the Con-
go's' own troops still place tribal
loyalty above national loyalty. The
government faces armed tribal op-
position in several provinces, and
possible outside interference.'
United States Undersecretary W.
Averell Harriman has expressed
concern because the Soviet Un-
ion, Red China and Czechoslova-
kia have opened embassies at
Brazzaville, in the former French
Congo just across the river from
the territory of the Leopoldville
government, which has expelled
the Communists.
There is also concern over a
possible emergence of the defeated
forces of Moise Tshombe, ousted
president of Katanga Province, for
a new effort against the Leopold-
ville government.
Tshombe Training
The UN secretary-general, U
Thant, recently asked Portugal
about reports that some of Tshom-
be's former gendarmes and mer-
cenaries were training in Portu-
guese Angola, near the Congo bor-
der. Portugal denied this.
Some diplomats fear that the
government of Premier Cyrille
Adoula will be in trouble the min-
ute UN forces pull out.
Europeans Defeat Briti.
Bidtfor Trade Coordina
By NEL SLIS
Associated Press Staff writer
BRUSSELS -- Britain's efforts
to keep within arm's reach of
the European Common Market
suffered a new blow this week,
diplomatic sources said yesterday.
This time the reversal was in
the economic field. F r a n c e
thwarted a British move to co-
ordinate her aid and trade poli-
cies toward Latin America with
the Common Market six.
The French acted in the council
of the Western European Union,
an organization originally set up
eight years ago to coordinate de-
fense matters.
WEU Members
Britain is a member of WEU
along with the six Common
Market countries-France, West
Germany, Italy, Belgium, the
Netherlands and Luxembourg.
Foreign Secretary Richard A.
Butler led the British delegation
which came to Brussels with plans
for the six and Britain to mesh
their Latin American programs.
France, represented only by a
secretary of state for foreign af-
fairs, L. M. Habib Deloncle, said
in effect: "No dice." Deloncle
stressed that' the meeting was
strictly consultative and had no
power to take such a decision.
Veto Britain
France vetoed Britain's entry
into the Common Market in' Jan-
uary, 1963. Since then ethe French
have rejected a Common Market
trade tied with Britain and nip-
ped in the bud Britain's bid to
play a part in future negotiations
for European political unity. Now
came the third and latest blow-
the turn down of the idea of co-
operating in economic relations
with Latin America.
France's President Charles de
Gaulle has his own plans for aid-
ing the Latin American countries,
diplomats pointed out. He visited
Mexico last month and, his health
permitting wants to make other
tour in Latin America.
Privately, some British diplo-
mats seem discouraged about their
country's prospects of forming
closer links with Western Europe.
These men believe de Gaulle's
block-Britain polieies will live on
long after the president has 'left
public office.
I
guaranteed
8m we
- - -
Down through
the
years.
France's five partnersi
FCommonMarket would lit
organization to keep close
with Britain: So would the
States, it was pointed out.
But one diplomat said,
of the steam has gone out
pro-British group for the
being. The British have a nf
election in the autumn. Acc
to present indications it see
though the Labor Party wi
The Laborites' attitude towa
Common Market is equivoc
at least seems so from 'Br
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