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September 19, 1962 - Image 3

Resource type:
The Michigan Daily, 1962-09-19

Disclaimer: Computer generated plain text may have errors. Read more about this.



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Reduction 1in Foreign Aid

Talks Produce
No Agreement
Commonwealth Leaders Rebuff
Macmillan Plea for EMC Accord
LONDON (A) - Commonwealth leaders failed yesterday to recon-
cile their differences over Prime Minister Harold Macmillan's resolve
to take Britain into the European Common Market.
They argued for an hour and 40 minutes about the draft of a
communique, then recessed to tackle the problem again today.
The deadlock came on the eve of the windup of the 16-nation
Commonwealth Prime Ministers Conference. It represented another
blow to Macmillan's hopes to gett

UN Elects Pro-West Leader

1.4 Billion
Cut From

UN General Assembly opened its
17th session yesterday with elec-
tion of a Western-supported presi-
It braced for sharp debate in
r rthe weeks ahead on a host of con-
troversial issues, including seating
of Red Chia proposed by the So-
viet Union.
Muhammad Zafrulla khan, 69,
veteran Pakistani diplomat who
served the old League of Nations,
was elected president. He won 72
votes to 27 for G. P. Malalasekera
of Ceylon, who was supported by
the Soviet bloc.
Despite a decisive defeat last

year Foreign Minister Andrei A.
Gromyko asked the Assembly to
consider once more, expelling the
Chinese Nationalists and giving
their UN representation to the
Chinese Communists.
Trade Conference
He asked also that the Assem-
bly debate Soviet Premier Nikita
Khrushchev's proposal for an in-
ternational trade conference.
Last year the Assembly voted
37 in favor, 48 against and 19
abstaining on the Red Chine is-
sue. United States sources express-
ed confidence the vote would be at
.least as strong against the Pei-

ping regife this year, and perhaps o rIginal Su m

Kenned Foes Defeated
I rade Bill Showdown
WASHINGTON (P) - The administration won twin victories
r on two big Senate showdown votes on the trade bill yesterday - one
by a hairline - as Republicans sought to curb its tariff-slashing
The Senate voted 58 to 23 to keep in the measure the far-reaching
new program requested by President John F. Kennedy to help business
and workers harmed by import competition. This came after the
Senate, in a flurry of vote switch-

A United States spokesman said
his country would not oppose con-
sideration of the question, which
has been before the United Na-
tions since 1950. Up until last year
the United States succeeded inj
keeping the issue off the Assembly
agenda by proposing postpone-
ment. The Kennedy Administra-
tion decided against that strategy
and agreed to full-scale Assembly
Political Corpses
Gromyko referred to the Chinese
Nationalists as "political corpses"
and said their presence impeded
solutions of such issues as dis-
armament and economic coopera-
He said the United States was
the main force in preventing Red
China's admission of Communist
China, described by him as a na-
tion which "consistently pursues
a peace-loving foreign policy."
UN sources disputed this at once,
saying that there is no evidence
that Communist China did any-
thing in the past year to indicate
it is interested in obtaining UN
Instead, the sources added, Pei-
ping has "consistently derided the
United Nations and has made no
move to indicate it will abide by
the UN charter."
The United States indicated al-
so that it would oppose as un-
necessary the proposal of an in-
ternational trade conference.
A spokesman noted that there
is already on the agenda an item
to consider a recommendation
from the UN Economic and Social
Council for holding such a con-
ference, and that a preparatory
committee be convened by spring.
The Soviet moves heightened the
feeling among UN; delegates. that
the stage was being set for bitter
United States-Soviet debate in the
Assembly session.

Slash Military Funds
By Largest Per Cent
Appropriations Committee recom-
mended yesterday a cut of nearly
$1.4 billion in new funds for for-
eign aid and labeled some admin-
istration estimates of needs as "pie
in the sky figures."
There are strong indications
that the 19 per cent cut will be
-sustained by the House when it
passes the money bill later this
This would provide $5.9 billion in
funds for economic and military
aid during the current fiscal year
where President John F. Kennedy
had asked for $7.3 billion and Con-
gress had authorized up to $7.1
billion. The fiscal year ends June
Last year the House cut more
than $1 billion from the adminis-
tration's foreign aid request but
the Senate restored better than
half the cut and a large percentage
of the Senate increase was retain-
ed in the House-Senate compro-
mise bill.
The cut this year was almost as
deep as the $1.5 billion predicted
by Rep. Otto E. Passman (D-La),
chairman of the subcommittee
that drafted the aid money bill,
when his subcommittee began
work several months ago.
Actually, Passman's subcommit-
tee cut military spending from $1.5
billion to $1 billion but the full
committee boosted this figure to
$1.3 billion-a reduction of 14 per
However, the committee retained
criticisms of military aid by the
subcommittee, which charged that
the military aid program had re-
ceived too much money in recent

some sort of go-ahead - no mat-
ter how vaguely worded - for his
plan to link Britain with her con-
tinental neighbors.
Macmillan has spent almost
every waking moment since the
conference opened Sept. 10 trying
to get some form of approval for
his policy and stave off political
troubles in his own Conservative
Party and in the British parlia-
The possibility grew that the
Commonwealth leaders will leave
for their home capitals without
issuing a final communique of any
Grave Doubts
Led by Canada's Prime Minister
John Diefenbaker, several have ex-
pressed grave doubts - and even
outright opposition - to Britain
aligning herself with the European
trading bloc. Some have suggested
the move could wreck the Com-
monwealth alliance,
The wrangling prime initr
have shown concern that failure
to settle on a communique with
some meaning would advertise to
the world the basic disagreements
in the Commonwealth family.
Senior officials worked last
night preparing the draft of a
statement they hoped would cool
tempers and save everyone's face.
Points of Agreement
The draft was-understood to set
forth points of general agreement'
on the need to increase world trade
and stabilize markets. It also pre-
sumably listed some of the fears
and anxieties of those Common-
wealth countries which, have ob-'
jected to the terms of Britain's
planned linkup with the six-nation
European bloc, France, West Ger-
many, Italy, Belgium, Netherlands
and Luxembourg.
Before this last hurdle was
reached, the Commonwealth lead-
ers concluded a lengthy discussion
on foreign affairs.

World News Roundup
By The Associated Press
BEIRUT-Seventy-nine rightist army officers and civilians yes-
terday were sentenced to death-68 of them still fugitives-for trying
to overthrow the government and lead Lebanon into a new political
alignment. The clumsily planned coup last New Year's Eve was put
down within hours but led to tighter security precautions in this little
country which has pursued a carefully blaanced policy between ele-
ments opposing and supporting President Gamal Abdel Nasser of the
United Arab Republic.
BERLIN-Twenty-nine East Germans reached freedom through
the longest tunnel ever bored under the Berlin wall, West Berlin au-
thorities announced yesterday. There was no indication the Commu-
nists had uncovered the underground escape route.
* * * 4
WASHINGTON-The surgeon general of the Public Health Serv-
ice said yesterday "I don't believe there is any reason in the world
for complete abandonment of plans for mass community immuniza-
tions of children with oral-polio vaccine." Dr. Luther L. Terry added
in an interview that he feels it is "encouraging that many communi-
ties are talking in terms of postponement rather than abandonment,
but there is no reason for postponement of campaigns 'covering chil-
NEW YORK--The Board of Education capitulated yesterday to
35 Negroes who staged a 26-hour sit-in to get students transferred
to more integrated schools. The sit-in ended after a school official
promised that 13 students would be transferred.
* * * *
CAPE CANAVERAL-The Tiros 6 Weather Satellite joined the
earlier Tiros 5 in orbit yesterday to make a double-barreled photo-
graphic assault on hurricanes, typhoons and other storm systems
which might develop over a great area of the globe.
* * * *
WASHINGTON-Russia set off another nuclear test in the at-
mosphere in its Arctic test area early yesterday, the Atomic Energy
Commission announced. The AEC said the device "had a yield of a
few megatons." An earlier announcement from Uppsala University
in Sweden had estimated the blast at about nine megatons-the
equivalent of nine million tons of TNT. The blast, in the Novaya
Zemlya area of Siberia, was the 13th Russian test of the current series
to be announced by the AEC.

. . . boosts trade alliance
Negro Picked
By Dbemocrats

Oust three
In Argentine
Arm Crisis
BUENOS AIRES (M)-Three top
army generals were relieved of
their commands yesterday, touch-
ing off a new crisis between rival
army factions.
A high civilian source said last=
night it "may develop into real
Troop units throughout Argen-
tina were put on alert a few hours
after the war secretary, Gen. Jose
Carnejo Saravia, relieved the three
generals, who have advocated a
quick return to constitutional rule
in Argentina.
Removed from their commands
were Gen. Julio Alsogaray, com-
mander of the 1st Armored Divi-
sion and the powerful Campo de
Garrison near Buenos Aires; Gen.
Pascual Pistarini, commander of
the calvary corps; and Gen. Ed-
uard Luchesi, deputy chief of
Predicts End
Of :Rail Strike
Secretary of Labor W. Willard
Wirtz said last night he foresees
an early end to the three-week
telegraphers strike on the Chicago
& North Western Railway.
Wirtz said after meeting with
both sides that they seemed to be
close to an understanding on the
issues they would submit to arbi-
tration - the settlement proce-
dure proposed by President John
F. Kennedy.

ing, defeated 40 to 38 an amend-
ment to retain the traditional, peril
point restriction originated by the
Senate 15 years ago.
The bill, as it now stands, would
virtually wipe out this restraint on
the President's authority to decide
how low tariffs on particular items
can be cut without damage to
United States industry.
Action on the two provisions ap-
parently cleared the way for pas-
sage of the bill. *
Adjustment Assistance
The program for giving special
aids- to industry and workers,
known as adjustment assistance,
is one of the major features of the
trade expansion measure - a top
priority item on Kennedy's 1962
legislative list.
It had been regarded as the
price that organized labor de-
manded ,for support of the general
features of the bill.
The administration scored a lop-
sided victory on another amend-
ment as the Senate defeated 65 to
13 an effort by Sen. Carl T. Curtis,
(R-Neb.), to arm Congress with
tough new veto powers over trade
Permit Cuts
The trade bill, considered by
many the most important legisla-
tion before Congress this year,
would permit United States tar-
iffs to be cut sharply. In the case
of Common Market countries, tar-
iffs could be eliminated on some
The Senate finally got action
going on the bill after failing to
get anywhere Monday because of
lack of a quorum. First up was the
amendment by Sen. Prescott Bush,
(R-Conn.), to restore the peril
point restriction.
All 25 Republicans present lined
up in favor of it, with 13 Demo-
crats joining them. They were out-
voted by 40 other Democrats.

State Democratic leaders selected
a Negro last night for their state
ticket for the first time, as guber-
natorial candidate Robert M. Mor-
genthau pledged to give Republi-
can Gov. Nelson A. Rockefeller
"the fight of his life."
Edward Dudley, a Negro and
borough president of Manhattan,
was tapped to oppose Republican
Atty. Gen. Louis J. Lefkowitz in
the November election.
Morgenthau, 43, former United
States attorney in New York City,
was named early yesterday in an
uproarious *rattle at the Democrat-
ic state convention, and his run-
ning mates were chosen last night.
For U.S. senator, the convention
chose James B. Donovan, 46', a New
York City lawyer.
The senatorial candidate will
battle the Republican incumbent,
Jacob K. Javits, whose renomina-
tion last night at the GOP conven-
tion in Buffalo had been assured.

Don't Frgl


The Michigan Union
Activities *Staff
Thursday, Sept. 20th
4:15 or 7 P.M.
Second Floor Terrace Room-Union


Hit U.S. Foreign Aid System

4, - -

WASHINGTON (P)--The art of
foreign aid as practiced by the
United States was questioned yes-
terday by Eugene R. Black, retir-
ing president of the World Bank,
and by Ludwig Erhard, West Ger-
many's minister of economy.
Black, making his farewell ad-
dress at the annual meeting of
the World Bank and affiliated or-
ganizations, suggested that the
United States and other prosper-
ing countries put less emphasis on
country by country aid and more
on distributing largesse through'
international organizations.
Erhard decried the United States
practice of insisting that most aid
dollarstbe spent in America in
order to stem the flow of funds
abroad and reduce the United
States balance of payments defi-
cits. The West German said that
if the United States and other
countries continue tieing such
strings to their aid programs, his
country might be forced to retali-
ate in kind.
Not As Wise
Black, a 64-year-old American
who has been president of the
World Bank since 1949, said aid
programs sponsored by individual

countries are neither as econom-
ically nor politically wise as those
administered by multination orga-
He suggested the United States
and Western Europe de-emphasize
their individual aid programs and
increase their contributions to the
International Development Asso-
IDA was created in 1960 to pro-
vide 50-year, interest-free loans to
ur'derdeveloped countries. It ex-
pects to run out of lending au-
thority by the middle of next year.
Replenished Funds
Without dissent, IDA delegates
voted to have their executive direc-
tors prepare a plan for replenish-
ing the organization's fund. The
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aim would be to present the plan
to Congress and other national
parliaments early next year.
George W. Ball, United States
undersecretary of state, applauded
this move, which would eventually
mean larger contributions to IDA
by the United States and other
hard-currency countries.
$$ MONEY $$



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