THE MICHIGAN DAILY

Congress Votes $4 Billion

UN FORCES:
Katanga
Demands
Troops, Go

Kennedy Approves New Age

* To

Finance

Foreign Aid

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GERMANY::
Reds Jail
American
St udents
BERLIN (')-An East German
court yesterday sentenced two
California students to two years
in prison on charges of trying to
smuggle an East Berlin girl stu-
dent into West Berlin in a car's
luggage compartment.
Victor Searles Pankey and Gil-
bert Page Ferry, both from Tus-
tin, Calif., and four others were
convicted of having violated the
Communist laws against "flight
from the republic" as well as pass-
Port regulations, the official East
German news agency ADN an-
nounced.
The Communist prosecutor said
all six tried to woo people over
to the West and aided East Ger-
mans in illegal attempts to leave
their homeland, ADN reported.
Students Imprisoned
The trial brought to three the
number, of American students
known to have been sentenced to
prison behind the iron curtain
this month.
Marvin William Makinen, a Ful-
bright student at West Berlin's
Free 'University, was sentenced to
eight years in prison in the Soviet
Union. A military court in Kiev
found him guilty Sept. 5 of spy-
ing while on a car trip from Ber-
'd lin.
Ferry was a student at .Santa
Ana College and Pankey was
studying mathematics at Pomona
College. Both had been attend-
ing summer school in Europe and
were due to return to their schools
in California.
In passing sentence, the court
ruled that time spent by the six
in pre-trial confinement would be
applied toward their prison terms.
The East German interior min-
istry announced the arrests of the
two Americans, a Briton and a
Dutchman Sept. 13.
Try Arabs
Western sources reported they
1 went on trial Monday. The sen-
tencing was the 'first indication
that two United Arab Republic
! citizens also were on trial.
Western newsmen were barred
from the trial.
The Communist prosecutor,
identified only as Schulz, tdid the
East Berlin city court that the six
"shamnelessly abused the generos-
ity' East Germany extends to for-
eigners
S"They were all actively engaged
in the trade in human beings. in
full knowledge of the Berlin sit-
uation and in the knowledge of the
damage their criminal acts would
have caused to our society," ADN
quoted Schulz as saying.
Respect Authority
"The German Democratic Re-
public will only welcome those
foreigners on its territory who re-
spect the authority and laws of
our state."
ADN said Ferry and Pankey
were convicted of trying to smug-
gle a girl student of East Berlin's
Humboldt University to West Ber-
lin in the luggage coipartment
of their car. The girl was not
identified.

DETROIT SEES RISE:
Living Cost Drops
During Past Month
WASHINGTON (P)-Living costs dipped slightly in August, the
Labor Department announced yesterday, but they may be climbing
back to record high levels again this month.
A late summer drop in food prices sent the consumer price index
down one tenth of 1 per cent last month to 128 per cent of the
1947-9 average, the Bureau of Labor Statistics estimated.
(In Detroit, however, the price index rose 0.2 per cent to 125.8,
the North Central Regional Office of the Labor Department reported.)
Decline Normal
BLS Commissioner Ewan Clague said the national decline was
normal for the season. It is likely, he told reporters, that seasonal

S peech Citesr
'Resolution~
SAN ANTONIO (P)--Vice-Pres-.
ident Lyndon B. Johnson said
yesterday Communist leaders musth
not misjudge "the fortitude and
resolution of the free world."
In a speech .prepared for the
convention of the Texas County
Judges and Commissioners Asso-
ciation, Johnson said the United
States has no desire to be bellig-
erent or provocative but has no
intention of abandoning its rights
or, surrendering its interests.
" We seek only a sign from those
who speak for the Communist
world that they are ready to re-
spect (our) principles and will
not simply use the conference ta-
ble as the forum to ratify their
own demands and gain new ad-
vantages," he said.
The United States has made it
clear to the Soviet Union on many
occasions that this country is
ready to enter into 'fair and re-,
sponsible negotiations over Ber-
lin, the Vice-President said.
Negotiation is not surrender, is
not a formula for capitulation,
not a certificate awarded to the
nation creating the, crisis and not
a reward for strategy of "military
bluster and diplomatic intimida-
tion," Johnson said.
He said negotiators must "speak
the language of honorable com-
promise" and must grant conces-
sions for the 'sake of agreement
and not grab every concession that
can be "extorted by the display of
power or the trick of diplomacy."
Johnson said "the Communist
leaders in Moscow and Peiping
would be . well advised to under-
stand the fundamental and en-
during fact of national unity."
"With us," Johnson said, "the
process of debate is not a sign of
weakness.'

factors-rather than gains in gen-
eral business activity-will domi-
nate consumer price movements
at least until the year-end.
This would mean that living
costs may rise a bit this month
as used auto prices continue to
rise and the fall 'clothing lines
displacesummer sale offerings.
October also may show a con-
sumer price advance, Clague said,
because the new model cars will
be reaching the market at full list
prices. But the index should fall
again in November and Decem-
ber if meat prices take their nor-
mal downward course as the holi-
day season approaches.
Inflation Slight
Despite the July bulge in the
index, carrying the price average
up one-half of 1 per cent to .a
record 128.1, the first eight months
of this year have shown a net ad-
vance in the index of only about
0.5 per cent, BLS said.
This is a smaller increase than
in any similar period since 1955,
and was attributed mainly to
steady increases for services and,
an, unusual, prolonged increase in
the price of usedkcars.
Wage Hikes
About 100,000 workers in air-
craft and missile plants will re-
ceive a one-cent increase because
the cost-of-living clauses in their
wage contracts are tied to the
quarterly period ending with the
August index.
The contracts of about 580,000
steel workers theoretically provide
for a three-cent increase on the,
basis of the August index, but it
is uncertain whether this will be
paid in cash or will be diverted--
as it was in December-into the
payment of higher insurance costs.

Falls Short
Of Request
By Kennedy
Compromise Bill
Viewed as Victory
For Administration
WASHINGTON () - Congress
last night voted almost $4' billion
to finance the foreign aid pro-
gram this year and moved ahead
toward final adjournment.
Only one more major money bill
remained to be acted on, but it
appeared that the task of resolv-
ing differences between Senate and
House versions might require sev-
eral hours. The measure contains
more than $1 billion in funds for
a wide variety of federal agen-
cies.
The foreign aid budget, a
source of heated controversy for
months, went through quickly aft-
er Senate and House conferees
agreed on the final version, car-
rying $3,914,600,000.
House Approval
House approval came on a 192-
81 vote. An hour later the Sen-
ate passed it by voice vote and
sent it on to the White House.
The foreign aid figure repre-
sents a compromise between the
$3,657,500.000 voted by the House
and the $4,196,600,000 approved by
the Senate.
President John F. Kennedy
originally asked for $4,775,500,000
to finance his military and eco-
nomic aid program during the 12
months ending next June 30 and
Congress authorized up to $4,253,-
500,000.
Administration Victory
Foreign aid supporters in both
parties fought to keep the figure
from being reduced below $4 bil-
lion, which Kennedy urged as a
minimum. Thus the outcome could
be viewed as a victory for admin-
istration forces.
The compromise agreement,
reached after a series of dead-
locks that helped snarl adjourn-
ment plans, was subject to rati-
fication by House and Senate.
One of the last arguments to be
settled involved a $40-million fund
to finance the President's new
Peace Corps through its first year
of operation.

ELISABETHVILLE (P)-Katan- and war.
ga Foreign Minister Evariste Kim- As he signed the new agenc
ba, fresh from a cease-fire talk into law, Moscow radio was re
with a United Nations delegation, porting Soviet rejection of Ken
said yesterday his government is nedy's disarmament proposals t
demanding immediate withdrawal the United Nations Monday.
of UN troops from this secessionist
The demand is one that has
been repeatedly voiced by Presi-
dent Moise Tshombe and Kimba
said there will be no more meet-
ings until a reply is received from
United Nations headquarters in
New York.
The chief UN negotiator, Tuni-
sian diplomat Mahmoud Khiari,
said only that the hour-long talk
was just a preliminary contract.
Yesterday's Session
Yesterday's session was held un-
der an !agreement reached be-
tween Khiari and Tshombe last
week at Ndola, northern Rhodesia,' -
that halted an eight-day-old fight
between Katangans and the UN
Congo command. Meanwhile:
Provincial troops and tribesmen
were alerted to guard against any
attempt at invasion by armed JOHN F. KENNEDY
forces of Premier Cyrille Adoula's . . approves agency
Central Congo Government, which
is displeased that the UN opera-
tion failed'-to bring this mineral- I5T7
rich land back under Leopold- orld News
ville's rule. Elisabethville newspa-
pers carried a semiofficial state-
ment saying Tshombe ordered the
The 'president announced his By The Associated Press
former chief of staff, a captain BEGAE Ygsachk
named Mwamba, is underarrest BELGRADE - ugoslav chec]
on a charge of treason. He told points have reported a six-fol
newsmen Mwamba will be tried by increase in radioactivity over Yu
military court for dealings with goslavia.
UN officials in contravention of
orders. Tshombe did not elaborate. DAMASCUS, Syria - Traveler
Violated Commitment arriving from northern Iraq sai
yesterday there have been heav
A competent source in Usum- casualties in bloody fighting be
bura, capital of the adjacent Bel- tween Iraqi armed forces and re
gian protectorate of Ruanda- bellious Kurdish tribesmen.
Urundi, said the UN flew about * * *
60 Indian troops from Leopoldville NEW YORK-A vigorous tech
to Katanga Saturday in violation nical rally from Monday's shari
of a UN commitment not to move sell-off was trimmed cionsiderabl:
in reinforcement. late yesterday.
Two Ethiopian F-86 sabre jets Standard and Poor's 500 Inde
landed in the Congo to boost UN closed up .01, with 425 industrial
military strength and provide air up .05, railroads off .14 and 5
cover lacking during the Katanga utilities off 1.9.
battle. With Ethiopia, Sweden and Some stocks at the close: For
India contributing, the UN expects down 2%; General Electric u
a dozen more fighters and bomb- 1%; IBM up 10; International Sal
ers in the next few days. off 22; Parke-Davis up %.
SOPH SH OW
Mass Meeting
on: September 27
at: 7:30 P.M.4
in:the League Ballroom

I


:

Death Takes
Charles Wilson
NORWOOD, La. 0,P)--Charles E.
Wilson, secretary of defense un-
der former President Dwight D.
Eisenhower, died yesterday at 'his
sho.wplace plantation home in the
hills of southeast Louisiana.
He was alone in the three-story
white manor house. Dr.. C. S.
Toler, coroner of East Feliciana
Parish, attributed death to cor-
onary thrombosis.

THE YOUNG DEMOCRATIC CLUB

PROF. HAROLD STEIN
Visiting Honors Professor, 1961-62
Professor of Public and International Affairs

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