WEDNESDAY, JULY 27, 1966
THE MICHIGAN DAILY
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WEDNESDAY, JULY 27, 1966 THE MICHIGAN DAILY A I~!U P~it?~wu4
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KY IDEA:
U.S. Refuses
To O.K.
Senate Reschedules
Air Strike Hearing
Jacobson's
Plan To Invade Hanoi
WASHINGTON (IP)-The United leadership also through the Amer-
States refused yesterday to go ican Embassy at Saigon.
along with South Vietnamese Washington sources suggested
Prine Minister Nguyen Cao Ky's that Ky, an air force general, has
call for an invasion of North Viet been relatively moderate overall
Nam as the sure way to win the in expressing his views as prime
war, minister although he has stepped
"Our position of not seeking any beyond agreed-to policy on the
wider war," said a State Depart- war from time to time.
ment spokesman, "has been re- They attributed this to such fac-
peatedly made clear and remains tors as his zeal in the campaign
our position. We do not seek to against Red aggression, his mili-
threaten any regime." tary background and domestic rea-
State Department press officer sons.
Robert J. McCloskey issued this But as a practical matter, it
statement-while avowedly avoid- was noted here, Ky does not have
ing direct comment on Ky's con- the military power to mount much
troversial remarks. of an invasion of North Viet Nam
Senate Democratic Leader Mike without U.S. help.
Mansfield of Montana, with bipar- Committed
tisan backing, earlier called on the Both the Washington and Sai-
Johnson administration to "dis- gon governments are committed to
associate itself completely and at preventing a Communist take-over
once" from Ky's assertion. of South Viet Nam by force. The
U.S. View divergence over strategy between
South Viet Nam's ambassador, announced U.S. policy and Ky's
Vu Van Thai, had received the view, as he outlined it in a U.S.
U.S. view in a 65-minute session News and World Report inter-
with the assistant secretary of view, can be summed up this
state for Far Eastern affairs, Wil- way:
liam P. Bundy. The United States wants to bar
The Saigon diplomat emerged a Red conquest of South Viet Nam
from Bundy's office saying "Pre- without broadening the conflict,
mier Ky, so far as I interpret it, so it concentrates military action
has expressed a personal tune." in the south plus hitting limited
"The official position of the military targets in the north used
government," according to his in- in infiltrating the south. Ky fig-
structions, the ambassador said, ures an invasion of the source
remains one of seeking peace on of aggression, North Viet Nam, is
the basis of the Geneva accords in needed for definite victory and if
Indochina. this brings the Chinese Commu-
The U.S. disassociation from Ky's nists into the fight, "it's better to
statement was expected to be con- face them right now than in 5 to
veyed to the South Vietnamese 10 years."
Mansfield said that "to accept
for ourselves a concept of this
Gen. Ky, would appear to be at
war, such as that advanced by
the gravest variance with the in-
terest and policies of the United
States."
Sen. Jacob K. Javits (D-NY)
said, "It is high time Gen. Ky un-
derstood he doesn't speak for the
United States."
WASHINGTON (P) - Abrupt
postponement of a Senate hearing
on the 19-day airline strike yes-
terday stirred brief but ground-
less hope of breaking the dead-
locked lavor dispute without emer-
gency legislation.
The Senate Labor Committee
rescheduled the hearing for to-
day while union, management and
government spokesmen insisted
no new negotiations were in pros-
pect.
"There is no negotiating going
on," said a spokesman for the
five major airlines grounded by
Conservatives Ask
'No Confidence' Vote
LONDON (P)-The Conservative
party opposition demanded yester-
day a vote of "no confidence" in
the Labor government because of
Britain's flagging economy. Party
leader Edward Heath laid the
blame at Prime Minister Harold
Wilson's door.
Heath spoke at the start of a
two-day debate on the Conserva-
tive motion of censure of eco-
nomic affairs.
With a 96-vote majority, Wil-
son was in little danger of cen-
sure and James Callaghan, chan-
cellor of the exchecquer, reflected
this atmosphere in a cool de-
nunciation of his critics.
Callaghan declared the propos-
ed wage and price freezes was a
necessary step, along with reduc-
ed expenditures abroad and tight-
er controls of sterling to restore
BUT PRODUCTION RISES:
GM Reports Drop in Profits
NEW YORK MP) - General Mo- Second-quarter profits were $1.90
tors Corp. reported yesterday that a share, compared with $2.23 a
profits had dropped to $546 mil- share a year ago. Sales were $11,-
lion in the second quarter from 203,000.000, down from $11,215,-
$639 million in the comparable 000,000 a year earlier.
period of 1965. The corporation made 1,253,201
Explaining the figures, GM passenger automobiles in the Ap-
Chairman Frederic G. Donner and ril-May-June period and 2,604,213
President James M. Roche said for the first six months. A year
that during the early part of last ago the figures for passenger cars
year production and sales had in- were 1,386,527 and 2,771,965, re-
creased abnormally as a reaction spectively.
from strikes. Total sales for cars and trucks
The officials said lower unit during the first half of 1966 drop-
sales, costs of facilities being con- ped four per cent to 3,874,000 from
structed under a worldwide capi- 4,056,000 in the 1965 period. Sec-
tal - expenditure program, and ond-quarter sales also dropped.
higher costs for labor, materials, Car and truck production totaled
engineering, and tooling had af- 1,895,000 worldwide, a decrease of,
fected earnings. seven per cent from 2,036,000 in
1965's second quarter.
Donner and Roche said first-
half sales this year, although low-
er, were above the long-term trend.
Worldwide sales of GM vehicles
in the period, they added, "not
only exceeded all other compar-
able periods prior to 1965 but
were about a million units, or 32
per cent, in excess of the aver-
age for the first six months in
the four years 1961-1964."
Both officials said the outlook
remains favorable: "the economy
continues strong, consumer in-
come is rising, and unemployment
is at a very low level."
"The current outlook is for an-
other good year for the automobile
industry," the statement said.
the British economy and shore
up the pound. Should some unem-
ployment result, he said, it is
hoped to spread it around so that
its impact would be minimal.
Concentrated unemployment in
one area would be intolerable, he
said.
The prime minister said earlier
that up to 2 per cent unemploy-
ment-about 470,000 - could be
sustained for the common good.
The trade unions were of mixed
mind about the government's new,
tough stand and they had the
backing of a strong left wing in
the Labor party.
Frank Cousins, former minister
of technology who has returned
to his primary position as general
secretary of the giant Transport
Union, urged a general conference
of the executive members of the
Trade Unions Council to deal with
the wage freeze principally.
He took the stand that they
were impossible, across the board,
because of commitments due in
September and he also said he
was not satisfied with the gov-
ernment's attack on the economic
crisis.
The Executive Council of the
Electrical Trades Union decided
to delay a 5 per cent salary in-
crease for 13 of its senior offi-
cials. The council coupled this
with an appeal for Wilson to find'
ways of cutting back defense ex-
penditures.
The Liberal party, on the side-
lines, presented a motion some-
what along the same line of!
thinking that the government
should drop "a prestige role" cost-
ing a fortune in Asia and else-
where, except in Europe. On the
Continent, the motion implied,
Britain should retain its armed
fist as a sign of "the fullest co-
operation with European powers
where Britain's future lies."
Heath, in presenting the Tory
motion of censure, asserted Wilson
had lost face in the economic
world, that his own deputy, George
Brown, first threatened to resign
over the freeze plan and then
retracted it, and now Callaghan
and Brown were of opposing minds
about the wages and incomes pol-
icy.
He accused the Labor govern-
ment of "overmanning, restrictive
practices, too little competition
generally, low incentives, mass
government spending, and region-
al imbalance." No single remedy
for all these is possible, he insist-
ed, but wider and better planning
on all fronts.
the 35,000 striking members of the
AFL-CIO International Associa-
tion of Machinists.
"There just isn't any," said a
spokesman for Secretary of Labor
W. Willard Wirtz of the prospect
of negotiations, adding that Wirtz
simply wanted more time to pre-
pare testimony for today's hear-
ing.
The crux of the hearing will be
whether the strike is affecting the
national interest, requiring emer-
gency legislation, or is merely an
"inconvenience."
The Senate appeared to be ready
to act quickly once today's hear-
ing is completed, and Chairman
Adam Clayton Powell (D-NY) of
the House Labor Committee sched-
uled a hearing on the strike for
Friday.
The Senate hearing was post-
poned at the request of Wirtz,'re-
portedly after a 90-minute meet-
ing with Postmaster General Law-
rence F. O'Brien, a political con-
fidant of President Johnson, and
Sen. Wayne Morse (D-Ore), who
first offered emergency legislation
to end the strike.
"There is a suspicion in the
minds of some that maybe there's
more to this than meets the eye,"
said Sen. Joseph S. Clark (D-Pa),
a member of the Senate Labor
Committee, when the hearing was
postponed on little more than an
hour's notice.
New Offer
While there was immediate spec-
ulation of a possible new contract
offer, or a possible White House
move, there was no solid shred
of information for such guesswork.
"The real answer is probably
just what Wirtz said," said one
source in the dispute, "that the
administration wants more time to
prepare its case for the Senate
hearing."
Union President P. L. Seimiller
saw the postponement as just an-
other delay:
"The continued interference by
the legislative branch of govern-
ment is delaying the final time
when agreement can be reached
with the carriers," Siemiller said.
Republicans demands in the
Senate for Johnson to call in the
negotiators were ignored by the
White House.
Senate Republicans drafted a
resolution to fix "dual responsi-
bility" on Johnson and Congress
for solving the strike.
GOP Leader Everett M. Dirksen
of Illinois told a news conference
he was instructed by the party
Policy Committee to produce a
resolution. He previously has pro-
posed compulsory arbitration of
the strike and he indicated the
new proposal will follow that for-
mula.
Johnson previously said he had
exhausted all legal means to re-
solve the dispute after the union
rejected the contract compromise
suggested by a presidential emer-
gency board headed by Morse.
The Taft-Hartley 80-day cooling
off injunction, available to the
federal government in some strikes
does not apply to he airlines,
which are covered by a separate
law, the National Railway Labor
Act.
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World News Roundup
By The Associated Press
NEW YORK-The stock market
tried to mount a rally yesterday
but failed in fairly active trading.
The effort at a recovery from
Monday's worst loss since the as-
sassination of President John F.
Kennedy Nov. 22, 1963, fizzled
around midafternoon. Some of the
loss was recouped near the close.
The Dow Jones average of 30
industrials dipped 0.66 point to
852.17, a new 1966 low. The As-
sociated Press 60-stock average
fell .7 point to 307.5, also a new
low for the year.
Of 1,418 issues traded, 818 de-
clined and 348 advanced. There
were 210 new 1966 lows and 2 new
highs.
WASHINGTON-Prime Minister
Harold Wilson of Britain will ar-
rive here Thursday night for a
one-day visit.
The White House said yesterday
Wilson and President Johnson will
discuss such matters as the North
A t 1 a n t i c Treaty Organization,
East-West relations, and Viet
Nam.
CLEVELAND - Ohio National
Guardsmen started to leave the
city's East Side riot areas yester-
44 day while a grand Jury probed for
reasons behind five nights of ra-
cial violence here last week.
Lt. Col. Robert Canterbury,
troop commander, said after a
meeting with City Hall officials
that 450 troops had left yesterday,
with 750 more set to pull out
16 Thursday.
That would leave about 800
Guardsmen available for duty, and
they should depart by Sunday
afternoon, Canterbury said. Police
will stay on 12-hour shifts.
The Cuyahoga County Grand
Jury, summoned into special ses-
sion Monday, toured the riot area
yesterday in a chartered bus, then
listened to closed-door testimony.
WASHINGTON-House debate
on the civil rights bill and its con-
troversial open housing provision
crackled yesterday against a back-
ground of recent racial violence in
several Northern cities.
Rep. William M. McCulloch (R-
Ohio),a supporter of the legisla-
tion, warned that continued dis-
turbances would jeopardize its
passage. An opponent, Rep. Wil-
liam M. Tuck (D-Va) said Con-
gress is being bullied into action
by the rioters.
LONDON-Government officials
last night rejected Peking charges
that Britain is helping the Ameri-
can war effort in Viet Nam with a
military airlift and with base fa-
cilities in Hon Kong.
Defense Ministryauthorities
said some medium-range Royal
Air Force planes are using Saigon
as a staging point for flights be-
tween Singapore and Hong Kong,
but they carry no military supplies
for American forces in Viet Nam.
* * *
MOSCOW-United Nations Sec-
retary-General U Thant had "a
free, frank exchange of views"
yesterday with Premier Alexei N.
Kosygin on Viet Nam, disarma-
ment, and European problems, a
UN spokesman reported.
talked for three hours.
They
* * *
MILAN, Italy-The Milan Daily
Corriere Della Sera quoted un-
named sources yesterday as say-
ing Pope Paul VI might allow
Roman Catholic married couples
to use contraceptive pills for as
long as two years after a child-
birth.
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