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May 01, 1964 - Image 3

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Publication:
The Michigan Daily, 1964-05-01

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FRIDAY, MAY 1, 1964

THE MICHIGAN DAILY

FRIDY, MY 11964THE ICHGAN AIL

GOP Couneil Urges
Government-in-Exile
Republicans Demand Removal of
Restrictions on Anti-Castro Raiders
WASHINGTON (JP)-A Republican council urged yesterday an
end to United States curbs on anti-Castro raiders and establish-
ment of a Cuban government-in-exile.
It said such a government should be set up in Latin America to
rally 300,000 Cuban refugees "to work openly for the liberation of
Cuba."
In backing actions against the Red Havana government, the
GOP Critical Issues Council said, the U.S. should serve notice to the
world that it is prepared "as a last resort to use military force to
remove international Communism from Cuba." The 24-member coun-
cil of prominent Republicans is

Ceylon Turns to Marxist Groups for Aid

Cost of Living
Rises Slightly
WASHINGTON (M)-Consumers
got a little better break on prices
at the food counter last month,
but paid out slightly more for most
other basic living necessities.
The net result added another,
penny for every $10 spent on
living costs, the government's Bu-
reau of Labor Statistics reported
yesterday.
The over-all March increase of
one-tenth of one per cent brought
the Consumer Price Index to 107.7.
This means consumers paid $10.77
for the same items that cost
$10.76 in February and $10 in the
1957-59 base period.
Deputy Commissioner Robert J.
Myers of the bureau said the rel,.
atively small increase in a period
of general economic upsurge rep-
resented "a very reassuring per-
formance."

headed by Dr. Milton S. Eisen-
hower, brother of former Presi-
dent Dwight D. Eisenhower.
'Castro Must Go'
Declaring "Castro must go," the
council said the situation his
worsened because the Johnson
administration "has no clear and
firm policy toward Cuba" and "the
time for action is long overdue."
The Republicans also proposed:
1) A step-up in U.S. pressure
to persuade free world countries
to stop trading with the Fidel
Castro government.
Collective Action
2) U.S. initiative in the Orga-
nization of American States for
collective Latin American action
against Cuba.
3) A greatly increased counter-
propoganda operation against Cas-
tro to be conducted in Latin Amer-
ica, preferably with the coopera-
tion of the OAS and the proposed
Cuban government-in-exile.
4) Stepping up effectiveness of
the Alliance for Progress program
of aid to Latin America by with-
holding U.S. assistance from those
countries which do not live up to
their reform pledges and liberally
rewarding those which perform on
their commitments.
Diplomatic Conference
5) Calling of a diplomatic con-
ference of leading free nations for
the purpose of reaching a common
program of meeting each serious
Communist probe.
The Republican group said Cas-
tro is now stronger at home and
abroad then in 1962, Communism
flourishes, strategic missiles may
well remain in Cuba, subversion
continues "and the threat to the
U.S. and Latin America is clearer
and present."
It said Washington has lost op-
portunities time and again to get
rid of Castro, adding that the 1961
Bay of Pigs invasion would have

By DENZIL PEIRI I
Associated Press Staff WriterT
COLOMBO, Ceylon-A politicalE
storm is gathering over Ceylon
and Prime Minister Sirimavo Ban-1
daranaike has turned left in an
attempt to escape it.
Convinced neither she nor her
Freedom Party alone can solve
Ceylon's problems, Mrs. Bandara-,
naike is seeking help from Marx-1
ist-oriented political groups.
In repayment, she is offering
concessions that would take this
island nation of 10 million closer
to socialism.
The nation is confront-I with:
-Rampant inflation, unemploy-
ment and paralyzing strikes;
-Rising governmental expen-
ditures that outstrip income, and
-Unrest in rural areas, the
prime minister's primary source
of political support, and a dip in
her parliamentary margin to three
seats.
Come Back Later
The government was taking such
knocks in Parliament earlier this
year that Mrs. Bandaranaike sent
members home until July, hop-
ing to use the interval to shore
up her position.
Aided by her socialist-minded
finance minister, Tikiri Banda I-
angaratne, Mrs. Bandaranaike has
opened talks with N. M. Perera,
leader of the Social Equality Par-
ty, and Philip Gunawardena, head
of the People's United Front.
Perera is an old-school Trotsky-
ite who has taken the parliamen-
tary road to what he calls re-
organization of society.
Gunawardena is an oldtime
Marxist who claims he picked up
leftist tendencies at the Univer-
sity of Wisconsin and Columbia
National
Roundup
By The Associated Press
DAYTON - Former Vice-Presi-
dent Richard M. Nixon yesterday
rejected as "a serious mistake"
President Lyndon B. Johnson's of-
fer to brief major presidential
candidates on top security mat-
ters.
Nixon said at a press conference
here that he received the. offer
earlier this week and that he does
not intend to make a formal reply.
* * *
WASHINGTON - The Defense
Department yesterday set a draft
quota of 6000 men for June, half
as many as in the two previous
months.
BUFFALO-Investigators from
the House Subcommittee on Un-
American Activities met stubborn
resistance from witnesses yester-
day as they sought to learn wheth-
er any of them had knowledge of
possible Communist subversion in
the Buffalo area. One witness
after another invoked the 5th
Amendment when asked, among
other things, whether they were
or had been members of the Com-
munist Party.
NEW YORK-The stock market
continued to decline yesterday,
failing to respond to a rally in the
late afternoon, although trading
was heavy. Dow Jones averages at
closing showed 30 industrials down
2.04, 20 rails down 1.05, 15 utili-
ties down .33 and 65 stocks down
.90.

University in the 1920's. He says
nationalism, Buddhist revivalism
and Ceylon's indigenous culture
are the instruments of making
progress.
20 More Seats
If Perera and Gunawardena can
carry their parties into Mrs. Ban-
daranaike's fold, she will pick
up about 20 more seats in Par-
liament-enough to relieve pres-
sure.

controls on export-import firms
and a firmer clamp own on
banks, with "concessions" to mi-
norities, especially one million Ta-
mils, who feel they are second-
class citizens.
. Beyond Its Means
The problems causing Mrs. Ban-1
daranaike to swing left stem
mainly from what one political ex-
pert calls Ceylon's desire to drink
champagne on a beer economy.
Ceylonese, about 85 per cent
literate, for years have yearned
for the West's higher living stand-
ards. Education from kindergar-
ten to university is free, medical
treatment costs nothing, and
train and bus travel is subsidized.
Nearly 18 per cent of the annual"
national budget of $460 million
goes to lower consumer rice prices.
Price supports pay farmers more
than the world rice price.
Investment Sparse
The welfare bill and salaries for
top-heavy goverament administra-
tive sections leave little money for
capital investment and the hope
of creating industries that might
raise the annual per-capita income
of $123.
Heavy deficit financing has
been in effect 10 years. External
assets were used to. import con-
sumer goods and swab up excess
money, thus preventing inflation.

But foreign exchange reserve
has slipped until at times it is
adequate to cover just two months
of imports. Ceylonese import half
their rice and almost all their
clothes.
Curbs on imports drastically re-
duced customs and tax revenues:
strikes reduced tea and rubber
production, and tied up Colombo's
port so many times that foreign
shipping lines imposed a surtax.
The .budget, as a result, has been
thrown almost hopelessly out of
joint. Some projects such as road
building have been allowed to
lapse as an economy measure.
Rotten Apples
Further hampering Mrs. Ban-
daranaike are - inefficiency and
corruption in some state-owned
ventures which report large finan-
cial losses.
Westernized, English-speaking
intellectuals who run the govern-
ment have been alienated by Mrs.
Bandaranaike's move to make Sin-
halese the official language - a
move that grew from her at-
tempts to widen her rural support.
As matters now stand, Mrs.
Bandaranaike has until July 10
--the day Parliament reconvenes
-to set up a coalition. If she
cannot, her government will be in
danger.

SIRIMAVO BANDARANAIKE

Finance Minister Ilangaratne
has nationalized properties of
American oil firms, set up
state-owned petroleum corpora-
tion, taken over British, Canadian,
Indian and Ceylonese insurance
firms, and imposed strict controls
on British and Indian banks.
Perera wants worker participa-
tion in management of state-
owned industrial and commercial
firms that control cement pro-
duction, transport,petroleum dis-
tribution, and chemical and tex-
tile manufacturing. He wants state

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