THE MICHIGAN DAILY
IND THE THRONE:
otal Viet Control
U.S. Acts To Protect Trade
SAIGON M)--In less than a half year, a few political-minded
Buddhists have tumbled two South Vietnamese Premiers.
Riding on a crest of new power is a group of Buddhists-
mostly from the central and northern parts of South Viet Nam-
whose apparent goal is to dominate the political life of the country.
Their statements brim with self-confidence about their ability
to control South Viet Nam's southerners, the nation's quiescent
Regionalism appears to have been a'key element behind last
Wednesday's military coup by Lt. Gen. Nguyen Khanh that ousted
JAMMU, Kashmir (AP)-In Kash-
mir the United Nations' flag of
truce and the men who carry it
are scorned and shot at regularly.
Both frequently are chased off
The Indian-Pakistani struggle
for Kashmir is heating up though
ostensibly halted by a cease-fire
16 years ago. The UN helped ar-
range that cease-fire and has
watched over it since but today
UN influence and prestige are low
UN observers have been forced
to become mere spectators of vi-
cious raiding, ambushing and
Want Pull Out
The observers say they should
pull out unless UN headquarters
wins guarantees from both India
and Pakistan that the UN flag-
and the lives of men who serve
under it-will be protected.;
In effect, they say,
already is happening.
southerner. The upheaval came
after weeks of demonstrations,
riots and hunger strikes by Budd-
Khanh, a southerner, fell from
the premier's job himself last
September as the result of similar
By all indications, Khanh learn-
ed his lesson with that defeat.
Since then, he has mended his
fences carefully with Buddhist
leaders and has done little to in-
terfere with their movement.-
Areas of Strife
Reflecting the regional leader-
ship of the Buddhist machine,
practically all the major strife of
recent weeks has been in Central
Viet Nam and Saigon, which is
dominated by Central and North
Operating as a kind of junta,
their most powerful commander is
Thich Tri Quang, from Central
The real reason appears to have
been that Tri Quang and his col-
leagues felt sure from the begin-
ning they could not control Huong.
The Buddhist leaders apparently
do not want nominal power them-
selves. They want to be the power
behind the, throne.
By The Associated Press
WASHINGTON - Railroad ne-
gotiators and representatives of.
five non-operating unions reached
agreement yesterday on a major
job security issue, a Labor Depart-
ment spokesman announced.
An "attrition formula" provides
that all employes of these craft
unions with two or more years of
seniority will be kept on the job.
Any employe reductions made nec-
essary by cutbacks in service or
technology will be handled by the
normal attrition-deaths, retire-
ment and resignations.
* * *
UNITED NATIONS - Malaysia
has told the United Nations Se-
curity Council that Indonesia
seems to be planning "a large
scale operation" against Malaysia
in about a week.
* * *
BALTIMORE-Officials of the
striking AFL-CIO International
Longshoremen's Association and
the Baltimore Steamship Trade
Association announced a tenta-
tive agreement after a private bar-
gaining session yesterday.
EDITOR'S NOTE: This article, the
second in a three-part series on the
European Economic Community, is
a survey of the Kennedy Round of
Tariff reductions and the General
Agreement on Tariffs and Trade.
It discusses the theory of compara-
tive advantage on a trans-Atlantic
scale, and how the success of the
EEC forced the United States to
negotiate for reduced tariffs.
By DICK WINGFIELD
As tariffs among the "inner
six" nations droped, the customs
union separating the European
Economic Community from the
rest of the world grew stronger.
It became increasingly apparent
to the United States that this
country was losing much of the
economic rapport it had previous-
ly maintained with Europe. To
America the customs union posed
a concrete and immediate eco-
nomic danger-it threatened to
cut off a major portion of Amer-
ica's export market.
As a result, one of the most
immediate effects of the Euro-
pean Economic Community suc-
cess was an effort by the U.S. to
negotiate tariff reductions. The
benefits acruing the "inner six"
had become sufficiently apparent,
and the dangers to the U.S. were
adequately manifested. The U.S.
had to negotiate; the EEC could
benefit by obliging.
In the spring of 1963 the U.S.
and the Common Market entered
into negotiations which have come
to be known as the "Kennedy
Round" of tariff reductions. The
U.S. was brought to a new height
of enthusiasm as a result of the
trade Expansion Act of 1962. This
act enabled President John F.
Kennedy to offer U.S. reduction
in duties up to 50 per cent in
return for equivalent concessions.
With determination to attain re-
sults even through concession on
some points, the U.S. wanted:
-Liberal treatment of farm
-Tariff cuts of 50 per cent on
industrial goods, and
-No bargaining on non-tariff
barriers to trade iuch as "buy
in accordance with the Trade Ex-
pansion Act of 1962. However, the
EEC was highly adverse, to this
type of tariff cut because it would
not have taken into account the
irregular tariff schedules which
the U.S. maintained, as opposed
to the relatively uniform, middle-
range tariff schedules of the EEC.
The Community objected strong-
ly to the 50 across-the-board cut
because this would have almost
completely opened the European
markets to American goods, while
leaving protectionist tariffs on
some American products( those
carrying the previously high tar-
Acceptance of U.S. Plan
The result was an acceptance of
the basic U.S. approach, with the
provision that there be special
treatment, with an automatic
cutting formula, for especially
high tariffs that might restrict
trade even after a 50 per cent cut.
In this way, both sides conceded
Serving as a framework for the
Kennedy Round, the General
Agreement on Tariffs and Trade,
was molded in the preparatory
committee of the United Nations
Conference on Trade and Employ-
ment in Geneva, from.April 10-
Oct. 30, 1947.
The signatory parties recognize
according to their contract, that
their relations in the field of trade
and economic endeavor should be
"conducted with a view to raising
standards of living; ensuring full
employment and a large and
steadily growing volume of real
income and effective demand, de-
veloping the full use of the re-
sources of the v orldt and expand-
ing the production and exchange
of goods, and promoting the nro-
gressive development of the econ-
omies of all contracting parties."
Furthermore, the contracting
parties desired to contribute to
arthese objectives "through agree-
ment by entering into reciprocal
and mutually advantages arrange-
ments directed to the substantial
reduction of tariffs and other bar-
riers to trade and to the elimina-
tion of discriminatory treatment
in international commerce.".
The significance of GATT is not
that great progress has been made
under that agreement alone-be-
cause it definitely has not. The
real function of thehagreement is
to provide a framework around
which projects such as the Ken-
nedy Round of tariff reductions
The aura of approval afforded
by the agreement of the UN adds
special meaning to negotiations
and treaties formulated under
GATT. In addition, it attracts
negotiators because the contract-
ing parties pledged themselves in
1947 to ". . . the substantial re-
duction of tariffs and other bar-
riers to trade."
Framework for Reductions
In essence, then, the framework
for tariff reduction was formu-
lated in the General Agreement
on Tariffs and Trade in 1947; the
more recent Kennedy Round is a
manifestation of the goals cited
in that agreement, and an ex-
pression of the need of the U.S.
to negotiate for more favorable
trade opportunities in the face of
However, it should be strongly
emphasized that the immediate
problems and desires of nations-
France's desire to keep her cap-
tive agricultural market, the U.S.
desire to stave off more balance-
of-payments deficits-will con-
tinue to be foremost in the nego-
tiation of tariff reductions. To
these matters the high ideals of
common good, and comparative
advantage take a second place.
TUESDAY: Unity in Western
Europe - economic, political,
military-Is it possible within
the European Economic Com-
LIBREVILLE, Gabon (P)-Left-
wing external pressures and rum-
blings of internal dissatisfaction
are threatening this bastion of
French presence in Africa.
Despite difficulties, witchcraft
and tribal quarrels among the
primitive officialdom of the Ga-
bon republic, France- is pushing
an ambitious economic program
among the 500,000 Gabonese.
Potentially the richest nation in
equatorial Africa, Gabon has huge,
still largelyunexploited resources.
Its manganese reserves of some
200 million tons could supply the
world's needs for 30 years. An es-
timated one billion tons of iron
ore promises to make Gabon one
of the world's top five producers.
Gabon supplies uranium for the
French atomic force. Its oil pro-
duction has been growing. Gold,
hardwood, coffee and cocoa pro-
vide other exports.
France, which has been unoffi-
cially directing Gabon since its
independence in 1960, maintains
anti-Communist President Leon
M'Ba in power despite signs of
unpopularity. Western diplomats
agree that M'Ba's fall could open
the door to Chinese Communist
infiltration from the adjacent
Many_ young Gabonese appear'
receptive to leftwingeideas and
complain that Gabon has no re-
lations with the Commuist East.
M'Ba, who is 63, is torn between
Western civilization and the an-
cient African lore.
French paratroopers, 250 of
them, guard M'Ba against a possi-
ble uprising. The president is also
forming his own commando of
tough Africans who served in
France's colonial army.
The opposition also failed to ex-'
poit gains demonstrated during
last April's legislative elections.
Sixteen opposition deputies were
elected to the 47-man National
Assembly despite government re-
pression. Ten rallied to the gov-
ernment "democratic Gabonese
bloc." Three have been jailed.
The 6000 French in Gabon are
a mixture of highly paid govern-
ment advisors, businessmen and
former settlers from Indochina
and North Africa. An often-re-
peated opinion among Gabon's
French is that "Americans want
to unseat M'Ba to replace our in-
There are 39 officers from the
armed forces of 11 countries in
divided Kashmir. They are charg-
ed with reporting cease-fire viola-
tions to UN headquarters in New
York, and patrol a 360-mile line
armed only with a white flag and
the blue berets of the world or-
These officers are fed up.'
They feel they risk their lives
on a job which is respected by
neither Indian nor Pakistani
forces. Several already have been
Many tell of narrowly escaping
death on both sides of the cease-
Under their mandate, UN ob-
servers supposedly are free to
roam in their efforts to check re-
ported violations of the line and
any buildup of forces or weapons
from levels maintained by both
sides when they halted a full-
sdale war in 1948.
In practice, a conscientious ob-
server who does this may be shot.
Both sides have said the ob-
servers' safety can not be guaran-
teed without 72 hours' notice of
their movements. This makes it
impossible to arrive quickly on the
scene of a clash and determine
who violated what.
Common Market Desires
The Common Market, on
other hand, wanted :
-No bargaining on agriculture
until they arrived at a definte
protectionist farm policy;
-No big reduction on industrial
goods unless the U.S. would bring
down its highest rates, and
-Modification of non-tariff
barriers policy and anti-dumping
The U.S. hoped at that time
that the reciprocal tariff reduc-
tion could be implemented as a
part of a general GATT agreement
that would include Britain, Can-
ada, Japan and many other na-
tions. However, one of the main
road blocks was the EEC's reluc-
tance to include farm products
in the Kennedy Round.
The French presented the main
obstacle for debate on agricultural
tariff reduction. Since France is
the "farm" of the Common Mar-
ket, the French were very re-
luctant to yield even part of their
captive market to the U.S. One
French official said: "The Amer-
icans are in effect asking that
we guarantee them comparable
outlets for their farm goods, just
as the British did on behalf of
the Commonwealth. We turned.
the British down and we intend
to turn the Americans down."
The U.S. wanted tariff reduc-
tions across the board on indus-
trial products by up to 50 per cent.
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