APRIL 18, 1963
TI. A.Y M CR NlnaVISN J .
. ...
.TWur Ura ad'Uv~~lA U~ UWY
PAGE THRE
Adoula Names Regime
To Bring Con go Unity;
End Five-Month Crisis
SELECTIVE INCREASE:
Steel Price Hike Ends;
Most Firms Comply
NEW YORK W)-Selective steel price increases all but completed
a sweep through the industry yesterday.
The nation's eight largest producers had fallen into line, and
after them tumbled a growing stream of large and small steel-
makers.
It amounted to the first major increase in steel industry prices
since August, 1958--although confined to a relatively few, big-tonnage
products. Although complete sta-+"
tistics were lacking, the boosts ap- - =r',' .-..
Await Mississippi Decision
I
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DIEFENBAKER OUT:
PearsonT O
oek Ove
Leadership in Canada
OTTAWA ()-Liberal leader Lester B. Pearson was named to be
Canada's 14th prime minister yesterday.
Pearson will take over. on Monday, when Conservative Prime
Minister John Diefenbaker's resignation becomes effective.
Pearson received the nod at a 55-minute conference with
Governor-General Georges P. Vanier, who earlier received Diefen-
baker's resignation. The outgoing
Conservative leader officially called
" it quits ten days after his party
went down to defeat in national
elections. He told reporters he
looked forward to leading the op-
position against Pearson and that
he would make an effort to become
prime minister.
"I intend to carry on," Diefen-
baker said. "I look forward with
considerable interest on being
leader of the opposition."
On the sidelines, meanwhile, the
chiefly conservative Social Credit
Party announced that six of its
members who previously pledged
to back Pearson had withdrawn
their support.
Majority Lost
Their full support would have
given Pearson a majority in the
new Parliament. His liberals won
130 of the 285- seats, three short
of a majority.
The Socred decision was taken
in a party caucus. The announce-
ment said the repudiations by six
of its own members showed "how
the Liberal Party is held in con-
tempt by the Canadian people."
Pearson will go ahead in forming
a minority government, the type
Diefenbaker has headed more re-
cently.
Move Unites
Secessionist,
Left Group's
Bonboko Replaced
As Defense Minister
LEOPOLDVILLE (P)-Congolese
Premier Cyrille Adoula named a
new "national reconciliation" gov-
ernment yesterday in an effort to
end a five-month political crisis.
He brought in followers of for-
mer secessionist Moise Tshombe
as well as Tshombe's opponents.
The announcement brought one
big surprise. Foreign Minister Jus-
tin Bomboko was replaced and
named justice minister. The new
foreign minister is Auguste Mabi-
ka-Kalanda, an independent who
teaches public administration at
the National School of Law and
Administration here.
Tshombe, who ruled over seces-
sionist Katanga until UN troops
forced its surrender a few months
ago, was not personally named 'in
the new government. But a fol-
lower, Jacques Masangua, was
named deputy premier in charge
of socia~l affairs.
The post of deputy premier in
charge of economic coordination
went to Joseph Kasongo, a moder-
ate member of the date Premier
Patrice Lumumba's Congolese na-
tional movement. The leftist Lum-
umba and Tshombe were enemies.
Other pro-Tshombe appoint-
ments were: Albert Nyembo as
economics m i n i s t e r, replacing
Jean-Pierre Dericoyard; Rodolphe
Yava, minister of foreign trade,
and Bertin Mwamba, deputy for-
eign minister, a new post.
The important post of interior
minister went to Joseph Maboti, a
member of the conservative Abako
Party. Emanuel Bamba stays on
as finance minister anod Michel
Colin remains as education minis-
ter. Both are members of the Aba-
ko Party.
Adoula has been trying to rp-
shuffle his government ever since
he was beaten on a confidence
vote in the lower house of Parlia-
ment last November. The opposi-
tion failed to get a two-thirds
majority to force Adoula's resigna-
tion, but the vote had the effect of
paralyzing the government.
peared to average three per cent
or less on products affected.
President John F. Kennedy, who
has remained silent on develop-
ments, was due for a fill-in on
the situation late yesterday. His
Council of Economic Advisers was
ready for him in Washington with
an analysis of possible effects.
Bethlehem Steel Co., National
Steel Corp. and Youngstown Sheet
& Tube Co., all in the top eight,
tagged along yesterday in the
wake of United States Steel Corp.,
the industry giant, which an-
nounced Tuesday.
Effects Unclear
It was unclear what, if any, ef-
fects the increases would have on
prices of consumer goods.
Also uncertain was whether they,
might reflect later this year in
wage or benefits gains likely to
be sought by unionized steel com-
pany employes, and perhaps those
in other industries.
It all started on April 9, when
Wheeling Steel Corp., accounting
for under two per cent of steel
production in 1962, marked up se-
lected products an average of $6 a
ton.
Delay
Nearly five days elapsed before
other .firms followed suit.
Then the hesitancy evaporated
as Republic Steel Corp., the third
biggest producer, Pittsburgh Steel
Corp., Armco Steel Corp. and U.S.
Steel Corp. joined the parade.
Other price rises announced yes-
terday included markups by Acme
SteelCo., a Chicago area firm, De-
troit Steel Corp., Great Lakes Steel
Corp., a division of National, and
Alan Wood Steel Co.of Conshock-
en, Pa.
By JACK BELL
Associated Press News Analyst
WASHINGTON - The Civil
Rights Commission has handed
President John F. Kennedy a
touchy political package by rec-
ommending he consider withhold-
ing federal funds from Mississippi.
The commission suggested that
Kennedy explore his authority to
deny the state about $650 million
it receives annually from the fed-
eral government. This handed him
an escape hatch: he could decide
he lacked such authority.
There was a suggestion too fromI
the conmission Kennedy study,
whether legislation is needed to
prevent federal funds being paid
out to a state which "continues to
refuse to abide by the Constitu-
tion."
Interim Report
The suggestion was made in an'
unusual "interim report" by the
commission. It was the first time
since its creation in 1957 that the
commission had issued such a spe-
cial' report.
"Since October, 1962;" the re-
port said, "the open and flagrant
violation of constitutional guar-
antees in Mississippi has precipi-
tated serious conflict. Each week
brings fresh evidence of the dan-
ger of a complete breakdown of
law and order."
Kennedy was expected to review
the report yesterday. While still
on a short vacation in Florida
Tuesday, aides said that he had
not received the report sent to
him by commission chairman John
A. Hannah, Michigan State Uni-
versity president.
List Programs
The commission said the fed-
eral government funneled more
than $650 million into Mississippi
-in the fiscal year ended last June
30 for grant-in-aid programs, ar-
I
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my engineers construction con-
tracts, military prime contracts
and direct civilian and military
payrolls.
Additional money went to the
state, the report said, for such
purposes as area redevelopment
loans and grants, small business
loans, accelerated public works
projects and federal aviation agen-
cy grants.
The political implications of.
acting-or not acting-on the
commission's proposal could have
a direct bearing on the outcome
of Kennedy's expected bid for re-
election in 1964.
Here is the way many politi-
cians viewed the matter: Kenne-
dy's stock with the Negro minori-
ties which influence the political
decisions of the electoral vote-
heavy industrial states would
slump if he took no action to
sustain the rights of citizens the
commission said had been "shot,
set upon by vicious dogs, beaten
and otherwise terrorized because
they sought to vote ..."
Another view was if the Presi-
dent cut off Mississippi funds, he
would risk losing support among
white voters in the South. The 81
electoral votes he got from Ala-
bama, Arkansas, Georgia, Louisi-
ana, North Carolina, South Caro-
line and Texas gave him his win-
ning margin in 1960.
Others said Kennedy could ex-
pect no action on the commission's
recommendation that Congress
"consider seriously" legislation to
cut off Mississippi funds.
The feeling in Congress is that
if the federal government could
halt payments for highways, flood
control, military contracts and
civilian payrolls in Mississippi in
a controversy which did not in-
volve these programs, it could act
similarly in other states for the
LESTER B. PEARSON
takes over
JOHN F. KENNEDY
... no comment
GUATEMALA:
U.S. Gives
New Regime
Recognition
WASHINGTON ()--The United
States extended recognition yes-
terday to Guatemala's new mili-
tary government, which seized
power three weeks ago with a
pledge to wipe out Communism in
the Central American Republic.
The State Department announc-
ed the action was taken after con-
sultation with other Western Hem-
isphere governments.
Heading the new Guatemalan
regime is former Defense Minister
Enrique Peralta, who deposed
President Miguel Ydigoras Fuentes
in a peaceful coup, March 30.
State Department officials said
the United States noted an in-
formal remark by Peraltathat
elections could take place in about
two years and reported that aid
programs could be resumed.
FRI. - SAT.
What everyone needs
CH UCK LES SMILE-q
)VL*A
'I' K i F K K Y
A
World News
Round up
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