WEDNESDAY, JULY 27, 1966 THE MICHIGAN DAILY PAV.V. #rlTrtvle WEDNESDAY, JULY 27, 1966 THE MICHIGAN DAILY A I~!U P~it?~wu4 8 H~3iAt*'1 AJZ4'4't i 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. Read Daily Classifieds SKIRTS PA SHIFTS SH SUITS MILI CO-ORDINATES JEWELRY NE BELTS SW SLIPS G LOU NGEWEAR BOYS WEA R Starts Wednesday 9:30 A.M. - Ends Friday 5:30 P.M. 50% off and more DRESSES Juniors; Misses, Custom Sizes; Maternity and Bridal dresses NTS IRTS LNERY HANDB CKWEA R EATERS IRDLES BERMUDAS ENSEMBLES BLOUSES AGS GLOVES JACKETS SHELLS BRAS MEN'S FURNISHINGS GI RLSWEAR INFANT'S and TODDLERS' WEAR wm 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. 4 ekee- ,qeci' ed T7ape REDUCED FOR BARGAIN DAYS LONDON VANGUARD COMMAND ABC-PARAMOUNT DGG A & M KADD ARCHiVE AMERICAN AIRLINES ETC. 8-TRACK AUTO TAPES Many Record Selections Drastically Reduced AA I f. 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