SEPTEMBER 26,1962
THE MICHIGAN DAILY
PAGE T REE
SEPTEMER 26.1962 TE MICHGAN DALY PAG THRE
.o,
Senate Votes Passage
Of Compromise Bill,
Sets Farming Control
Russia Finances
New Cuban Port
Native Labor, Materials To Build
Common Headquarters for Fishing
HAVANA W)-The Soviet Union and Cuba plan to build a port
somewhere on Cuba's 2,500-mile coastline as headquarters for a joint
Atlantic fishing fleet, Cuban Prime Minister Fidel Castro announced
yesterday.
He unveiled the plan in a television speech after signing a fish-
ing treaty with Soviet Fisheries Minister A. A. Ishkov. He said the
Russians will use the port under a 10-year contract "which surely will
continue much longer than 10 years."
As outlined by the prime minister, part of the cost will be financed
by the Soviet Union, but the port will be built by Cuban labor with
Cuban materials. Cuba will be >
BERLIN TENSION:
Western Notes Accuse USSR
COMMUNIST THREAT:
_<, ,
Taylor Explains Need
To Restore Aid Cuts
WASHINGTON ()-Gen. Maxwell D. Taylor said yesterday that
4urbing the Communist threat to South Viet Nam and the entire Far
East hinges in part on restoring cuts made in President John F. Ken-
nedy's foreign aid bill.
Taylor, who becomes chairman of the Joint Chiefs of Staff next
week, spoke out in testimony before the Senate Appropriations Com-
mittee while Sen. Hubert H. Humphrey (D-Minn) was reporting the
---aid legislation is in serious trou-
ble.
I
ANDREI GROMYKO
...meets with Rusk
U.S., USSR'
Fail To Agree
On Key Issues
UNITED NATIONS (P)-United
States Secretary of State Dean
Rusk and Soviet Foreign Minister
Andrei Gromyko met for more
than three hours yesterday but
apparently failed to come to grips
on the vital issues of Berlin and
Cuba.
It was the first meeting of the
two foreign ministers since the
conference in Laos in Geneva last
July. It is expected they will meet
again in New York, but no date
has been set.
Robert Manning, assistant secre-
tary. of state for public affairs,
who briefed newsmen on the meet-
ing, said that only Laos and a nu-
clear test ban were discussed-and
that both subjects had been
brought up by Rusk.
Cuba, Berlin
Asked specifically if Cuba and
Berlin were discussed, Manning re-
plied in the negative.
"The subjects were not brought
up," he said.
He said that the United States
is undertaking a military with-
drawal from Laos as a result of the
agreement reached in Geneva, and
presumably this was touched upon.
On the nuclear test issue the
United States has proposed a ban
on tests in the atmosphere and
under water which would not be
subject to inspection.
No Indication
Manning gave no indication of
Gromyko's attitude on that pro-
posal, which has not been accepted
by the Soviet Union.
"Matters of general interest, in-
cluding the work of the General
Assembly, were discussed," Gro-
myko told reporters.
Humphrey, assistant S e n a t e
Democratic leader, told reporters
after the weekly White House con-
ference of Kennedy and party
leaders that winning substantial
increases in the bill will be "the
toughest fight we have" in the
closing days of the session.
Chop Funds
The House, last week, chopped
$1.124 billion from the $4.754 bil-
lion in foreign aid funds authoriz-
ed in a previous bill.
Humphrey, noting this, said part
of the difficulty stemmed from
House accusations that the Sen-
ate always ups its appropriations
measures.
"Senators are justifiably tired of
being accused of being spenders,"
he declared. "If the committee
makes a substantial restoration of
the House cut, we'll have the fight
of our lives to sustain it on the
Senate floor."
Taylor, just back from a tour
of Asian trouble spots, told re-
porters after the closed commit-
tee session that he attributed re-
cent progress against Communist
forces in South Viet Nam largely
to effective use of foreign aid
funds.
'Turn For Worse'
He said if the House cuts stand,
"it could turn for the worse."
These military and economic
fundssTaylor said he assured the
committee, "are essential for the
deterrence of the military strength
represented by Red China and to
resist the subversive insurgency"
of the type that is found in Laos,
South Viet Nam and to some ex-
tent in Thailand.
W. Averell Harriman, assistant
secretary of state for Far Eastern
affairs, accompanied Taylor to the
committee meeting.
He said it was "inconceivable"
that the United States should re-
duce its aid to South Viet Nam,
where a war is under way, and to
other areas under Red pressure
like South Korea and Thailand.
The Senate Appropriations Com-
mittee plans to begin drafting the
bill Thursday.,
,Soviets Blast
Nuclear Device
WASHINGTON (P)--The Soviet
Union exploded the second largest
nuclear device in its current test
series yesterday, the Atomic Ener-
gy Commission announced last
night.
The blast, triggered in the at-
mosphere in the Siberian Novaya
Republicans
Unanimously
Oppose Act
Measure Denounced
As Political Bribe
WASHINGTON (P)-The Senate
ignored a barrage of sharp-tongued
denunciation of the compromise
farm bill yesterday and Passed it
52 to 41, with the Republicans vot-
ing solidly against it.
The action sent the measure to
President John F. Kennedy, who is
expected to sign it even though it
contains only about half the au-
thority he asked to control grain
surpluses. Congress was put on no-
tice that the Administration will
be back next year with a new re-
quest aimed at putting grain sup-
plies in balance.
All 34 Republicans who voted on
the proposal opposed the bill, and
were joined by 7 Democrats. But
the Administration's half-way
Senate victory was by a more com-
fortable margin than the hairline
five votes by which the legisla-
tion squeezed through the House
last week.
'Monstrosity'
In five hours of debate, the bill
was denounced as worse than no
bill at all, a monstrosity, almost
diabolically conceived, a one-year
political bribe for a select group
of feed grain and wheat farmers
and costly.
Sen. Bourke B. Hickenlooper (R-
Iowa), aiming his words at the
housewife, said the measure's
wheat provisions would raise the
price of flour and bread to con-
sumers.
'Good Bill'
Sen. Allen J. Ellender (D-La),
chairman of the Senate Agricul-
ture Committee, and Assistant
Democratic Leader Hubert H.
Humphrey (D-Minn), led the forc-
es defending the measure-
compensated by additional Rus-!
sian food shipments.
Soviet Credit
Credit from the Soviet Union
will finance the purchase of port
machinery.
Cuban workers will operate the
port and its ownership will be
vested in Cuba.
Without giving a date for the
ground-breaking, Castro said the
facilities will make unnecessary
the trips Soviet trawlers now make
to Eastern European ports for
maintenance and overhaul.
A small flotilla of Russian trawl-
ers, equipped with refrigerated
units and electronic detection
equipment, arrived in Havana in
the summer.
Instruct Cubans
It was reported that the Soviet
crews would instruct Cubans in
operation of the vessels and that
the flotilla ultimately would be-
come the property of the Cuban
government.
USSR Rejects
Nuclear PlanI
GENEVA (M)-The Soviet Union
again rejected yesterday an Amer-
ican-British proposal for banning
nuclear weapons tests in the at-
mosphere, underwater and in
space.
Seymon K. Tsarapkin, Soviet
delegate in the three-power nu-
clear test ban subcommittee, told
his Western colleagues the West-
ern proposal was "a step in the
right direction," but was accept-
able to his government only if the
United States and Britain com-
mitted themselves to stop under-
ground tests as well.
Cites Rights
To Action'
Against Reds
UNITED NATIONS ()-A Cen-
tral American foreign minister
warned Cuba and the Soviet Union
yesterday that the countries of
the American hemisphere have the
right to take "every measure and
action" if Cuba tries to export
Communism to its fiighbors.
Without naming either country,
Galileo Solis, Panama's foreign
minister, told the 108-nation UN
General Assembly "establishment
of a Communist government in any
country puts it necessarily outside
the inter-American system."
This applied not only to armed
intervention 'but to alien econom-
ic, ideological or doctrinary pene-
tration, he said.
He asserted that by itself es-
tablishment of a Communist gov-
ernment does not constitute a dan-
ger either for domestic or world
peace "if that government limits
itself to exist within its own fron-
tiers with the approval and ac-
ceptance of its own people, freely
expressed, without pressures or
fear."
Then he added that he did not
consider it a danger "if such gov-
ernment does not organize cam-
paigns or movements of propagan-
da, infiltration, subversion or of
any other kind to undermine,
weaken or upset the system of rep-
resentative democracy of the oth-
er inter-American countries or to
threaten their security or their
existence.
iX Prices
cials of government and the labor
movement.
*' * *
ST. LOUIS-A Negro communi-
ty erupted into violence over the
fatal shooting of a youth by an
elderly policeman and scores of#
officers broke up a mob after three
officers were hit by a shotgun
charge early yesterday. The dead
youth and the officers were Ne-
groes.
WASHINGTON - The House
unanimously passed yesterday a
compromise bill to ease the tax
treatment of pension funds for
self-employed persons. Sponsors
concede they fear a presidential
veto. Senate approval is expected.
WASHINGTON ()-The West-
ern powers accused the Soviet Un-
ion yesterday of showing a "de-
sire to maintain tension in Berlin"
and to "distract attention from
the brutal activities of the East
German regime."
Notes replying to a Soviet com-
munication of Sept. 5 were deliv-
ered in Moscow yesterday. The
State Department said those from
Britain and France were identical
to that of the United States.
Bearing particularly on the
points of the Soviet rejection of
four-power talks on Berlin and
Kremlin accusations of Western
provocations in the German city,
the United States note said it is
"manifestly unreasonable" for the
Soviet government to accuse the
United States of fomenting trou-
ble in Berlin and to turn down
Western appeals for a four-power
conference.
Heavy Responsibility
"In opposing such a discussion
of the situation in Berlin the So-
viet government must bear a
heavy responsibility and evidence
thereby its desire to maintain ten-
sion in Berlin," the note went on.
As for incidents in the divided
city, the note to Moscow said:
"The Soviet note ignores the fact
that the tensions in Berlin are due
to the wall which divides the city
and to the brutality of the East
German regime toward its inhabi-
tants.
"Both are the responsibility of
the Soviet government."
The Allies' note rejected Soviet
charges that they are stirring up
trouble in the beleaguered city.
Council Notes
Bias Effects
On Economy
WASHINGTON (P) - President
John F. Kennedy's Council of
Economic Advisers estimated yes-
terday the elimination of racial
discrimination in employment
might increase the gross national
product-the value of all goods
and services produced-by about
$13 billion annually.
And if non-whites had the same
educational level as whites, and if
the economy fullyused their edu-
cation, the increase might amount
to $17 billion annually, the coun-
cil said.
The council included the esti-
mates in a report prepared for the
Joint Economic Committee of
Congress.
It was drafted in response to
questioning of ChairmanWalter
jW. Heller and other council mem-
bers during this year's hearing on
the President's Economic Report.
The council called its estimates
"at the best tentative and approx-
imate" but said it regarded the fig-
ures as roughly correct.
Hear Dr. Otto Graf,
Chairman of the Honor's Program
speak on
IBSEN'S "GHOSTS."
Sunday, Sept. 30
8:00 P M
UNION BALLROOM
The text of the American note
follows:
"The government of the United
States regrets that the Soviet note
of Sept. 5 does not attempt to
deal with the points raised in the
United States notes of Aug. 24 and
27.
"The United states government
rejects the allegations contained
din theSoviet note, which seemed
designed only to distract atten-
tion from the brutal activities of
the East German regime.
"It is unfortunate, to say the
least, that the Soviet government
should say in its note that 'the
question is not one of discussing
incidents and consultations.'
"It is manifestly unreasonable
for the Soviet government to ac-
cuse the United States government
of various activities in Berlin and
to refuse to discuss the situation
there, as the United States has
proposed in its notes of June 25,
Aug. 24, and Aug. 27.
"In opposing such a discussion
of the situation in Berlin, the So-
viet government must bear a heavy
responsibility and evidences there-
by its desire to maintain tension
in Berlin."
Medical Costs
Remain Stable
WASHINGTON (M - Medical
care costs did not increase in
August for the first month in more
than eight years as over-all living
costs also remained steady.
The Labor Department report-
ed yesterday its consumers price
index remained unchanged in Au-
gust at the same record level set
in July. This is 105.5 per cent of
the 1957-59 average, or 1.2 per
cent higher than a year ago (on
the 1947-49 base, the August in-
dex was 129.4).
WORLD NEWS ROUNDUP:
Promise Never To [
GRAD
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FRIDAY, SEPT. 28, '62
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By The Associated Press
PHILADELPHIA-General Elec-
tric Co. yesterday promised the
federal government it would never
fix prices, rig bids, or restrict, sup-
press, limit or prevent competition
in the sale of heavy equipment
used in the generation and distri-
bution of electric power in the
United Statse. The sweeping court
decree, subject to approval of the
United States District Court, end-
ed the criminal and civil anti-
trust actions brought against the
nation's largest electrical manu-
'facturer in 1960.
WASHINGTON - The Senate
Judiciary Committee yesterday
quashed contempt of Congress
charges brought against nine steel
company executives accused of de-
fying an antitrust subcommittee
headed by Sen.-Estes Kefauver (D-
Ten). Kefauver protested that the
Kennedy Administration "should
have been :more helpful" in press-
ing the charges.
*~ * *
COPENHAGEN-NATO Secre-
tary - General Dirk U. Stikker
warned the Russians yesterday to
keep hands off West Berlin. He
served firm notice the Western
powers would never compromise or
surrender their rights in the front-
line city.
* * *
ALGIERS-The first meeting of
newly independent Algeria's Na-
tional Assembly opened yesterday.
The old revolutionary, Ferhat Ab-
bas, presided.
WASHINGTON - The House
passed yesterday a compromise bill
to grant self-employed persons tax
advantages on personal pension
funds. The vote was 361-0. The
measure now goes to the Senate.
If it is approved there, it still faces
uncertainty.
WASHINGTON - The Senate
confirmed by voice vote yesterday
President John F. Kennedy's nom-
ination of Arthur Goldberg to be
an associate justice of the Supreme
Court.
WASHINGTON - W. Willard
Wirtz was sworn into office as
secretary of labor yesterday in a
ceremony attended by President
John F. Kennedy and high offi-
Zemlya testing area, was describ-
ed by the AEC as "slightly higher
in yield than the multi-megaton
test conducted on Sept. 19."
The Sept. 19 test device was es-
timated at 17 megatons. Largest
of the 16 explosions announced by
the AEC in the current test series
was the first on Aug. 5-a 30-
megaton device.
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