THE MICHIGAN DAILY

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Confidence
Compromise

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SEA-TO

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French Veto
'Tugh' Line
Of Kennedy
Agreement Reached
As Meeting Ends
BANGKOK P) - Despite its
compromise aspects, Secretary of
State Dean Rusk said yesterday
the moderate resolution of the
Southeast Asia Treaty Organiza-
tion foreign ministers on Laos is
strong enough to provide "all that
is needed."
The prevailing. hope here was
that Iron Curtain leaders would
read between the lines and be con-
vinced the alliance means busi-
ness.
Nevertheless the eight-nation
SEATO veered away from the
tough language proposed by the
United States after' France threat-I
ened a veto.
French Argue
The French argued that open
threats of force by SEATO might
block negotiations with Moscow
on Laos. A watered-down resolu-.
tion was approved this morning
and the' three-day, meeting end"-
ed.
Another factor in the compro-
mise was a series of Soviet peace
feelers on Mon~day, the day the
conference opened.-Soviet For-
'eign Minister Andrei A. Gromyko
vited President John F. Kenne-
dy in Washington and expressed
hope that the civil far in Laos
could be solved by negotiations.
Retaliation Threat
The threat of military retalia-
tion by SEATO-an idea original-
ly pressed by the United States
-was veiled behind a warning
that the alliance would take "ap-
propriate action" if Moscow re-
fuses to negotiate on Laos. The
United States and other delega-
tions consideied this strong enough.
for their purposes.
The key paragraph warned that
if the British proposed cease-fire
is not accepted "and there con-
tinues to be an active (Commu-
nist) military attempt to obtain
control of Laos, members of
SEATO are prepared, within the
terms of the treaty,,to take what-
ever action may be appropriate
to the circumstances."
Although SEATO members want
to negtiate an end to the war in
Laos, they appear to differ on how
to get the Communists to sit down
and start negotiating.,

Portuguese Protest

Legislators
Receive Bill
On Housing
WASHINGTON (') - President
John F. Kennedy yesterday sent
Congress a $3.2 billion housing bill
which he said would provide the
help required "to reverse the
steady deterioration of our' cities. "
A proposal that the government
insure 25-year home improvement
loans to encourage the refurbish-
ing of rundown neighborhoods was
the chief surprise.
Kennedy proposal that the loans
carry a maximum interest rate
of 6 per cent -and be made avail-
able in amounts up to $10,000 per
family living unit.
Present Terms
At present, the Federal Hous-
ing Administration will insure im-
provement loans for only five
years and up to a limit of $3,500.
These loans are discounted so that
the total charges over a five year
period can run to 9.4 per cent on
a $3,500 loan and as high as 9.7
per cent on smaller amounts.
A broadening of home improve-
ment loans was suggested briefly
in Kennedy's special housing mes-
sage to Congress on March 9. The
proposed legislation he submit-
ted yesterday spelled out the de-
tails of this and his other hous-
ing recommendations.
These include 100,000 more low
cost public housing units, a $2.5
billion authorization for loans and
grants for urban renewal proj-
ects, and a two-year test program
of 40-year, no-down-payment
FHA mortgages for low cost
homes.
Letters to Leaders
In letters to Vice-President Lyn-
don B. Johnson and House Speak-
er Sam Rayburn (D-Tex) Ken-
nedy said his program would en-
able private enterprise to "meet
the housing needs of millions of
Americans who today live under
conditions this nation can no long-
er afford."
The President's bill was of-
fered in the Senate by Sen. John
Sparkman (D-Ala) chairman of
a banking subcommittee on hous-
ing.
He said his subcommittee will
start hearings April 4.
In the House the President's bill
was sponsored by Rep. Albert
Rains (D-Ala) chairman of a
housing subcommittee.'
Picks 'U' Alumnus
As Ambassador
WASHINGTON (y - President
John F. Kennedy yesterday pick-
ed Theodoro Moscoso of Puerto
Rico to be United States ambas-
sador to Venezuela.
Moscoso, administrator of the
Economic Development Adminis-
tration of Puerto Rico since 1950,
will succeed Edward J. Sparks. He
attended the University, from
which he was graduated in 1932.

FRENCH REFUSAL TO PAY:
UNFaces Bankruptcy
UNITED NATIONS () -- The
threat of bankruptcy facing the budget estimated at $120 million be levied on the same basis
United Nations grew yesterday to finance the Congo operation normal UN assessments.
with a report that France had through 1961. Under such a plan the
refused to pay anything toward Secretary-General Dag Ham- States would contribute 32
the UN Congo costs. marskjold was given authority last cen't as the richest UN m
Some Western delegates-obvi- December to spend up to $24 mil- while others would be p
ously Jolted by the report-pre- lion to pay for Congo costs for tionately less.
dicted the United Nations would the first three months of this Actually the United Stat
have to come up with some kind year, but such authority expires up the equivalent of alm
of new formula for raising money on Friday. per cent, and enabled son
for its Congo operation. Reluctance of the big majority tions having economic di
The -Soviet bloc announced of UN members to come up with ties to apply for a 50 per ce
months ago that it would not pay payments on last year's Congo duction in their assessment
anything toward Congo costs. costs was threatening the entire But only three other nati
Serve Notice organization with bankruptcy. addition to the United State
Spokesmen for the Latin Ameri- The General Assembly decided actually paid anything th
can republics served notice Tues- before its recess last December for the 1960 costs. Ireland
day they were unable to pay be- that assessments for the 1960 tralia and the Netherlands
cause of severe financial strain at Congo costs of $48.5 million should paid a little over $1 millia
home. They have come up with a
plan that would Put the major
financial burden for the Congo on
the five permanent powers on the
Security Council - the United, r n e i~ a u e
States, Britain, France, Soviet Un-
Complicating the picture was a t In I it CS
statement from a Congo represen-
tative yesterday that in view of By HARVEY MOLOTCH other lawmakers will oppc
the difficulty the United Nations B AVE pOOTHOrovisinwhihnakerdriP
was having in raising money, the President John F. Kennedy's provision which, in order t
Congo should not be prevented budget request for a whopping calls for a cutback in m
from seeking bilateral aid. $43 billion for national defense abases, Feingold said. Ma
NoWork. which went to Congress Tuesday tbases eio acate
wil et itWhesrkdep ;these bases exist to" placate
Jean N'Sele, the Congolese dele- will meet with the same deep. lators who have vested in
gate, told the Assembly's finan- seated resistance that all other in maintaining job-providin
cial committee hundreds of thou- proposals in this politically touchy eral facilities for their consi
sands of Congolese were without yet crucial issue have met. ies.
work and starving. In particular, Kennedy's failure I~Tm
"We will knock on other doors to act on Sen. Stuart Syinington's Prof White noted that
if the UN can't help," he said. (D-Mo) recommendation for in-
The committee is considering a tegrating the Army, Navy and Air nedy's program can't be ex
Force into a single fighting force to "buy back overnight the

-AP Wirephoto
LISBON PROTESTS-Natives of Portugal's capital city demonstrated before the American Embassy
In Lisbon Tuesday in reaction against United Nations Chief Delegate Adlai E. Stevenson's vote of
censure against Portugal for that nation's actions in her riot-torn African colony, Angola.
DISARMAMENT:
U.S., Russia Agree To Head Off Debate

UNITED NATIONS (P)-United'
States and the Soviet Union were
reported agreed yesterday on'_ a
formula to head off full-scale de-
bate on disarmament in the-
United Nations General Assembly's
current resumed session.
Diplomats said the formula was
for the two to announce to the
United Nations. that thef would
continue their four-week-old talks
on the time, 'the place and the
committee to resume big-power
disarmament negotiations.
They said Soviet Foreign Minis-
ter Andrei A. Gromyko and United
States Chief Delegate Adlai E.
Stevenson would inform the As-
sembly's 99-nation main political
committee of this arrangement to-
day in parallel speeches,
Diplomatic sources said Gro-
myko and Stevenson had agreed
that the negotiations should re-
sume July 31 and were inclined to
the Idea that ;they should be in
Geneva again.
The informant also said the
two would introduce a joint reso-
lution by which the assembly

\
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would take note of the United
States-Soviet understanding and
defer further debate on disarma-
ment to its next regular session
starting Sept. 19.
This would enable the Assembly
to get something over in a few
short speeches that might have

taken many long speeches- and
help it to finish a good part of its
work for the resumed session by
the closing date, Apr. 21.
Stevenson began the disarma-
ment-procedure talks with Soviet
Delegate Valerian A. Zorin at the
start of this month.

Nine Students Convicted,
Fined for LibrarySit-In

Jews .Debate
School Aid
WASHINGTON VP) - House
hearings on President John F.
Kennedy's $2.3 billion program of
federal aid to public schools end-
ed yesterday with a rabbi and the
spokesman for a prominent Jew-
ish organization in conflict over
help for church schools.
Rabbi Morris Sherer said Or-
thodox Jews pay taxes and argued
that to deny tax-supplied aid
which would help maintain the
Jewish parochial school system "is
a discrimination not in accord
with basic American ideals."
Rabbi Sherer, who said he rep-
resented 50,000 Orthodox Jews
throughout the country, thus sided
with the nation's Roman Cath
olic hierarchy in the controversy
over assitance to church-backed
schools.
Leo Pfeffer of the American
Jewish Congress supported Ken-
nedy's position.
"The demand that federal funds
be granted to parochial schools
represents the most serious as-
sault upon the wall of separation
of church and state in the his-
tory of our nation," Pfeffer said.

World News Roundup

JACKSON, Miss. (') - City
Court convicted nine Negro col-
lege students yesterday of dis-
turbing the peace by sitting in a
white library after police used
clubs and dogs to disperse a crowd
that gathered in protest of the
library's segregation.
City Judge James L. Spencer
fined the nine students $100 each
and gave them 30-day suspended
jail sentences. Their attorney said
they would appeal to Hinds Coun-
ty circuit court.
Shortly before the trial start-
ed, a group 'of whites and a group
of Negroes lined a city block in
front of the city cQurt building.
Police officers stood guard in
front of the courthouse just
watching the crowd.
As soon as the Negroes - ap-
proximately 100-started singing
and clapping, the police and dogs
guarding the front of the building
rushed at the crowds with their
clubs swinging. Negroes who did
not get out fast enough were
clubbed on the head and back.
The crowd of whites were or-

dered to leave the area. They were
not struck.
Spencer said such sit-ins have.
caused breaches of the peace in
other areas. "Jackson has avoid-
ed any such incidents until now.
By the grace of God, we will con-
tinue to avoid them."
Ask Skill Plan
For jobless
Detroit School Superintendent
Samuel M. Brownell advocated
Tuesday establishing an "Urban
Service Corps" to re-educate job-
less workers in new skills.
The plan, devised through a co-
ordinated effort of labor, manage-
ment, social-service agencies and
welfare officials, would allow
young people up to about' 25 to
,take -jobs as apprentices working
for governmental agencies.

By The Associated Press
MOSCOW-The Warsaw Pact
Conference.ended its second meet-
ing yesterday amid growing ru-
mors that Russia may withdraw
additional troops from member
countries.
The big problem before the con-
ference was believed to remain
what it has been at earlier meet-
ings, the problem of the settle-
ment of the, Berlin and East Ger-
man issues.
East Berlin officials have not
hidden their desire for the Soviet
Union to" make an early move to
sign a separate peace treaty and
decla * West Berlin an open city.
PRETORIA, South Africa -
Twenty-eight foes of the govern-
ment's white supremacy policies
were acquitted of treason charges
yesterday, ending the longest,
most costly trial in South Africa's
history.
The defendants were among 140
perscons of all races arrested on
Dec. 6, 1956 in nationwide dawn
-raids aimed at cracking resistance
to the government's apartheid
policy.
EILAT, Israel-The foundation
stone was laid at this southern-
most point of the Negrev Desert
yesterday for . an Israel-American
pilot plant for removing sa]t from
seawater.

NEW YORK-General Electric
Co. said yesterday that all 15
executives sentenced last month
for antitrust violations have left
the company payroll,
NUERNBERG - German police
hinted yesterday that sabotage
may have caused the flaming
crash of a Czechoslovakian airliner
loaded with Communist bloc tech-
nicians, 22 of them Russians.

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