THE MICHIGAN DAILY IND THE THRONE: uddhists Desire otal Viet Control If 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 majority. Regionalism Regionalism appears to have been a'key element behind last Wednesday's military coup by Lt. Gen. Nguyen Khanh that ousted United Nations Ineffectual in Kashmr Strife 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 battlefield. 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 in Kashmir. UN observers have been forced to become mere spectators of vi- cious raiding, ambushing and sniping. 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. a pullout southerner. The upheaval came after weeks of demonstrations, riots and hunger strikes by Budd- hist leaders. Khanh, a southerner, fell from the premier's job himself last September as the result of similar Buddhist pressure. 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 Vietnamese monks. Quang Spokesman Operating as a kind of junta, their most powerful commander is Thich Tri Quang, from Central Viet Nam. 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. World News 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 goods; -Tariff cuts of 50 per cent on industrial goods, and -No bargaining on non-tariff barriers to trade iuch as "buy American." 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- iffs). 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 somewhat. 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." Mutual Advantages 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 can develop. 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 EEC competition. 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- munity? oil Wealthy Gabon Sees Shaky Rule 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. Resource Rich 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 Congo-Brazzaville republic. Many_ young Gabonese appear' receptive to leftwingeideas and complain that Gabon has no re- lations with the Commuist East. Superstitious 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- terests." 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- ganisation. These officers are fed up.' Many Wounded They feel they risk their lives on a job which is respected by neither Indian nor Pakistani forces. Several already have been wounded. Many tell of narrowly escaping death on both sides of the cease- fire line. 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 : the -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 procedures. 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. French Obstacle 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. MICHIGAN UNION CHARTER FLIGHT EUROPE 65 I May 6-June 6-SwssAir B707 Jet $245* DETRO I T-LON DON-AMSTERDAM-DETROIT II May 4-Aug. 11-Air France B707 Jet $265* il May 5-Aug. 7-FILLED IV June 28-Aug.15-FILLED Temporary sign-up DEADLINE: Feb. 3 For information and sign-up, visit the Student Offices of the Michigan Union from3-5:30 P.M. or cal 662-4431 ext. 1039 "Final price for a filled plane U V7 t. 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