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ARCH 24, 1963

THE MICHIGAN DAILY

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Clay Committee Asks,
Half-Billion Reduction
In Foreign Aid Scheme
- - - - - -- - --- - ---

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UNREST:

South Korea Seeks
Stop To Coup Plot
SEOUL (R)-Apparently playing for time, South Korea's hard
pressed military government offered its civilian opponents yesterday
a vague promise and veiled threat.
The Korean central intelligence agency delivered the threat by
announcing it'was trying to determine if certain civilian politicians
were connected with an alleged coup plot smashed two weeks ago.
The promise came from the regime's spokesman, who said that if
strongman Gen. Chung Hee Park's military regime stays in power a de
facto caretaker government will

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BOURKE B. HICKENLOOPER LUCIUS CLAY
.supports findings .. . cut aid
NEW PROJECT-
U.S. To Carry Through
On Brazil Aid Program
WASHINGTON-W)-Despite frustration over Communism in
Brazil, the Kennedy administration was reported determined yester-
day to go through with a new financial aid program to help Latin
America's biggest country put its economic house in order.
According to present plans, ah announcement will be made to-
morrow.
President John F. Kennedy is scheduled to confer with Brazilian
Finance Minister Francisco San Tiago Dantas tomorrow morning.
Officials said the amount of
money involved in the first step
Cuban M eeting fthe new assistance program, so
9far as the, United States is con-
Lose Su port eered, would be small-reported-
Loses Support ightly over $50 million. But
the heart of the agreement is a
From Brazil United States commitment to
assist Brazil-along with the In-
ternational Monetary Fund, the
RIO DE JANEIRO (P)-Brazil- World Bank, and probably other
ian President Joao Goulart's gov- individual countries-in a three-
ernment reversed itself yesterday year development program. For
and indicated it does not look ap- this whole project the Brazilians
provingly on a pro-Castro Cuban have estimated they need $1.5
solidarity meeting opening here billion from foreign sources.
next Thursday. mPresident Kennedy is understood
The new statement of policy toyelihaste UndeStates
came amid unconfirmed report must do everything Uit to assist
that the progress of a Brazilian Brazil and avoid any action which
financial aid mission now in the would compel the regime of Pres-
United States had been snagged ident Joao Glaregomovean
by the controversy over the Cub- clentr oao Goulart to movemany
an conference, closer to the Communist elements
Goulart's news secretary, Raul of the country.
Riff, told newsmen Foreign Min-
ister Hermes Lima's decisions on Note Benefits
the conference stand as official
policy. Lima has called the con-
ference "inopportune" and ordered From Olympics
Brazilian consulates not to facili-
tate issuance of visas to prospec- A University study has shown
tive delegates. that holding the Olympic Games
Lima also has said that Brazil in Detroit could mean nearly $140
could not prohibit the conference million for the economy of Mich-
without violating its own constitu- igan.
tional precepts on rights of as-
semby an spech.The Bureau of' Business Re-
emyani rs ofe meeting-call-search estimated consumer ex-
ed the Continental Congress of penditures directly related to the
Solidarity with Cuba-went ahead games would total $47 million,
with plans to open -the three (lay capital expenditures $40.1 million
ci A hi A. and derived expenses $52,3 million.

Hiekenlooper
Cites Value
Of Demand
Congressmen See
Report As Damaging
For Kennedy Bill
WASHINGTON ()-A special,
committee headed by Gen. Lucius
D. Clay recommended to President
John F. Kennedy yesterday that
he cut his foreign aid program by
half a billion dollars as soon as
possible and reduce it even further
in the future.
But the group endorsed the prin-
ciple of continuing substantial as-
sistance programs under tighten-
ed-up management and with closer
controls over the way the recipient
nations use the United States aid.
The committee, dividing 9 to 1,
said the guidelines it laid down
would result in a $500-million re-
duction in the present $3.9-billion
level of aid spending. But it said
an immediate cut of that size is
not feasible because of commit-
ments already made.
'Attempting Too Much'
"We believe," the committee
said, "that we are indeed attempt-
ing too much for too many and
that a higher quality and reduced
quantity of our defense aid effort
in certain countries could accom-
plish more."
Clay and eight other prominent
citizens on the presidentially ap-
pointed committee agreed on the
recommendations for a smaller
and more tightly administered pro-
gram. The dissenter, AFL-CIO
President George Meany, asked an
expanded program,
Key members of Congress hail-
ed the report as constructive and
thought-provoking. Those who
commented were nearly unanimous
in predicting that the committee's
findings would make it doubly dif-
ficult for Kennedy to get any-
where near the $4.9 billion he has
budgeted for foreign aid in the
coming fiscal year. That is an in-
crease of $1 billion over the esti-
mated spending this year.
No Kennedy Response
Perhaps with the congressional
situation in mind, Kennedy re-
frained from any immediate public
endorsement of the broad recom-
mendations made by the commit-
tee.
Sen. Bourke B. Hickenlooper (R-
Iowa), chairman of the Senate
GOP Policy Committee, said he
thinks now nobody can disagree
with the need for weeding out
some of the foreign aid programs.
Sen. Leverett Saltonstall (R-
Mass), ranking Republican on the
Senate Appropriations and Armed
Services Committees which con-
sider foreign aid, added "it also is
clear from the report that we must
continue the program in the in-
terests of our own detenses and
for peace in the world."

be established to prepare for even-
tual civilian takeover.
The timing of both announce-
ments seemed aimed at slowing
the expanding civilion movement
for immediate and unconditional
end of military rule.
Civilian leaders quickly express-
ed suspicion about the caretaker
government proposal. How wide-
spread would be the effect of the
investigation remains to be seen.
For the first time in four days,
however, there were no anti-gov-
ernment demonstrations in Seoul's
streets.
Arab Nations
Reveal ]Plan
For Merger
DAMASCUS (R) --The United
Arab Republic, Iraq and Syria were
reported yesterday to have agreed
on six principles as the corner-
stone of their projected federation.
The Damascus newspaper, Sawt
Al Jamahair, usually well inform-
ed, said these basic points were
established in a recent talk in
Cairo :
1) The forthcoming m e r g e r
should be a federation eventually
developing into a pan-Arab union;
2) The federation should be like
one nation with one president;
3) Democratic freedom will be
guaranteed for all political organi-
zations advocating Arab unity and
socialism. This would entail a ban
on old line parties and Commun-
ists;
4) Interparty disputes should be
avoided, possibly by a national
charter combining all political or-
ganizations or the formation of
an Algerian-style National Libera-
tion Front;
5) The federal state should
adopt socialism as its economic
and social pattern;
6) The federation should be
open to Algeria and Yemen, pos-
sibly with strong military, politi-
cal, economic and cultural pacts.
Within this framework, the
newspaper said, the United Arab
Republic, Iraq and Syria have
agreed to draw up separate blue-
prints. It said each plan will be
discussed in Cairo, probably next
Monday or Tuesday. Then a urni-
fied plan will be voted on in the
three nations prior to formal
proclamation of the federation.
It is believed that President
Gamal Abdul Nasser of Egypt will
emerge as the leader of this new
federation. After long negotia-
tions, the Arab leaders are now
starting the discussions concern-
ing the federation's new consti-
tution.

French Give
Coal Strike
Concessions
PARIS (4) - French President
Charles de Gaulle's government
gave ground yesterday before the
nation's 170,000 striking coal min-
ers, raising its pay boost offer
from 5.7 per cent to 7.4 per cent.
Union leaders said it wasn't
enough.
A government-appointed study
committee recommended the 7.4
per cent offer, saying this match-
ed the lag in miners' pay com-
pared to private industry wages
since 1958.
The committee also recommend-
ed increases of between 3.1 and
3.6 per cent for electrical and gas
workers, and 4.7 to 5.2 per cent
for railroad workers. These groups
also are involved in the strike, but
the rail workers' stoppages are
only sporadic.

May Try
Unseating
OfGnido
BUENOS AIRES OP)-A mili-
tary-political campaign is gather-
ing strength in Argentina to in-
stall a so-called strong govern-
ment and block the promised June
elections-by revolution if neces-
sary.
Behind the increasingly vocal
agitation by some military men
and politicians are openly avowed
fears that the elections will bring
a resurgence to power of followers
of former dictator Juan D. Peron.
The chorus of "action now" can
be heard from retired army gen-
erals and political figures ranging
from socialists to conservatives.
They pay little heed to reassur-
ances by the divided government
of President Jose Maria Guido that
no "dictatorships" will be allowed
to come back.
Dyed-in-the-wool anti-Peronists
are not satisfied and claim that
the ections, as they are now
shaping up, would be a mockery
of democracy.
A number of political weeklies
have Joined the agitation for a
"strong government" to take Ar-
gentina's reins for an indefinite
period. They preach that the Gui-
do government is ineffective and
the elections, if held, would bring
a regime torn by dissenting forces.
Guido came to power a year
ago, when the military deposed
President Arturo Frondizi follow-
ing sharp Peronist victories at the
polls. Frondizi, who has refused to
resign, is now held at a mountain
resort in southern Argentina.

4.

By ROBERT SELWA
Special To The Daily
LANSING-A film that describes
alleged Communist activity on col-
lege campuses is being circulated
at the behest of Rep. Richard
Guzowski (D-Detroit).
The film, called "The Price Is
Youth," deals with "Communist
party activities in the United
States and throughout the world
on college campuses," Guzowski
said.
He noted that he has seen the
film three times and that it has no
reference to any specific univer-
sity in Michigan. "The Price Is
Youth" and another film, "Com-
munist Encirclement," are being
shown to high school students
in Hamtramack schools at Guzow-
ski's request.
"C o m m u n i s t Encirclement"
deals with the functions of the
Communist party throughout the
world "and how the Communist
party has been able to take over,"
Guzowski explained.

world News Roundup

He commented that education is
the best means of meeting the
threat of Communism.
Guzowski gave a secretary a
letter to write to the school boards
of the cities of the metropolitan
Detroit area asking them to start
comparative government courses.
"I would not say that these two
films would be required," he said
"Any films could be used, after
evaluation by the authorities."
He noted, however, that he
would like to have the films shown
more widely than just in Hamtra-
mack.
Guzowski is a co-sponsor of a
bill to appropriate $80,000 to the
state's schools for the setting up
of courses in comparative govern-
ment. Guzowski's resolution call-
ing for the banning of Communist
speakers from state-suoported col-
lege campuses never made it out
of committee. Ibis bill to outlaw
the Communist party in Michigan
was defeated by the House Friday
in a 51-52 vote.

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By The Associated Press
WASHINGTON -The National
Aeronautics and Space Agency said
yesterday it will launch a fourth
test flight of its mightiest rocket,
the Saturn I, from Cape Canaveral
next Thursday or as soon as possi-
ble thereafter. The flight test will
be one more step toward the ad-
vanced rocket, the Saturn V, be-
ing developed to carry men to the
moon and back.
LONDON-The British govern-
ment, plagued by export difficul-
ties and high unemployment, is.
quietly setting the stage for im-
portant new business deals with
Russia and Red China. Two -big
contracts with the Russians weie
reported under study. Each seems
certain to heighten controversy in
Western capitals.
ADDIS ABABA,Ethiopia-Pres-
ident Gamal Abdel Nasser of the
United Arab Republic has agreed
to attend a conference of heads
of African states to be held here
May 23, officials announced yes-
terday. The conference is expect-
ed to last three days.
* * *
WASHINGTON-President John
F. Kennedy's $500-million mass
transit subsidy bill appears to face
a rough track in the floor debate
that lies ahead. Its backers, high-
ly optimistic only a few weeks ago,

now concede that the legislation
faces more opposition than they
had realized.
ST. PAUL-Republican Gov. El-
mer L. Andersen conceded defeat
yesterday-nearly five months
after he and Democrat Karl Rol-
vaag locked in the closest gover-
norship election in Minnesota his-
tory. The final count was Rolvaag
619,842, Andersen 619,751.
HAVANA-A medium-sized So-
viet ship sailed Friday night from
Havana. Several hundred "techl-
nicians" were believed to be aboard
her.
VIENNA-Austria's longest post-
war government crisis ended early
yesterday morning. Negotiators of
the two biggest parties, the Con-
servative People's Party and the
Socialists, agreed on details of the
1963 budget, last hurdle in the
lengthy talks.

Guzowski Distributes Film
On Communists' Activities

VICEROY
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K

IICERM

session on scneauie. KetireadLGen.
Luis Gonzaga Leite, chairman of
the organizing committee, said
about 200 foreign delegates are
expected, including a large num-
ber from Asia and Africa.
The United States delegation is
headed by Jason W Smith of Port-
land, fOre.

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