Khrushchev Outlines New Plan for Soviet Eco
inomy
MOSCOW (P)-Soviet Premier Nikita S. Khrushchev directed
a vast new party and industrial reorganization in the Soviet
Union yesterday, and told party leaders to copy from capitalism,
if they Must, to increase farm and factory production.
Khrushchev disclosed his plan to the Communist Party Central
committee. He outlined a countrywide, industrial and party or-
ganization reaching down to the ranks of the 10 million Com-
munists he said are the "ruling party" in the Soviet Union.
To the farming industry, Khrushchev promised some much
needed tractors and fertilizer, but not necessarily in the im-
mediate future. The main supply of government money, he said,
will continue to go to heavy industry, which supplies military
hardware, and a little more, but not much, to the consumer goods
industry.
Russian Blessing
Near the end of his speech, Khrushchev gave a mild blessing
to certain Soviet economists and factory managers who for months
have argued for a sort of profit system in factories. The aim is
to give an incentive both to the factory manager and to the
workers to produce more and better goods faster.
"Under the socialist system of economy," he continued, "profit
as an economic category does not have the social meaning which
characterizes it in the capitalistic society. Our industry manu-
factures goods not to obtain a profit, but because they are needed
by the entire society. Instead of condemning the idea, he said,
in effect, try something along that line in certain areas.
But he added that Soviet industry should also adopt features
of the capitalist system where research and designing are made
a part of every industry. To block what he described as an
excessive labor turnover in some areas, he recommended legisla-
tion to determine where a worker's personal interest conflicted
with state interest.
Low Pay
His comment followed reports from some areas that thousands
of workers had quit their jobs because of low pay and unsatis-
factory working conditions.
The party reorganization appeared the most far-reaching
shakeup since that of 1957 when Khrushchev defeated the so-
called "antiparty group." His directives set up two powerful
party branches, one in charge of agriculture, one overseeing indus-
trial production. The same type of reorganization will go on down
through individual USSR Republics, thence to regional parties
and so on, until there is a vertical "top-to-bottom type of organiza-
tion for party, industry and agriculture.
Decrease Councils
In industry, the number of economic councils will be cut,
and the size of economic councils will be increased. These councils
were created in 1957 to help decentralize the government bureau-
cracy and create regional initiative. In the Russian republic, biggest
of the 15 Soviet states, the number of councils is cut from 67
to less than 25; in the Ukraine; from 14 to seven.
Old organizational forms, Khrushchev told the committee,
"are becoming a drag on guidance of production," and "therefore
we must take radical measures to insure more concrete and
systematic guidance of all branches of production by party or-
ganizations."
Practically every phase of the economy, including even scien-
tific research and designing will follow the same vertical pattern
of organization, Khrushchev disclosed. The advances of this sort
or organization, he said, were shown by the experience of the
military in its achievement of top efficiency. Such a system had
been developed in capitalist countries, Khrushchev said, and then
commented:
Once Upon A Time ...
"There was a time-I mean the period of the personality cult
-when the idea was sedulously fostered that everything that is
ours is unreservedly ideal and everything that is foreign is un-
reservedly bad.
Khrushchev also included the European Communist countries
in his future economic plans. He said a tighter organization was
needed of the Council of Mutual Economic Assistance because
the EuropeanCommon Market in the West was "directed at the
growing peaceful system of Socialism."
NONE OF THE
ABOVE FIVE
See Editorial Page
Y
Sitr isoan
Seventy-Two Years of Editorial Freedom
I43aitt
CLOUDY
High--45
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Light snow ending this morning,
warmer this afternoon
VOL. LXXIII, No. 57 ANN ARBOR, MICHIGAN, TUESDAY, NOVEMBER 20, 1962y
U. S. Asks or Sovieteply on Bomber
Hope To Get Answer
Before TV Session
BULLETIN
KEY WEST (R)-Havana radio said early this morning that
Cuban Prime Minister Fidel Castro has sent a new message to
Acting United Nations Secretary-General U Thant offering to
ship back to Russia the IL28 bombers now in Cuba.
WASHINGTON (P)-The United States has told the Soviet
Union it hopes for a satisfactory answer on withdrawal of Russian
bombers from Cuba by today, when President John F. Kennedy goes
on the air.
In reporting this yesterday, state department authorities said
Soviet representative Vasily Kuznetsov did not give a satisfactory
Sresponse on this central issue Sun-
I
*
*
*
*
*
*
*
*
Chinese Advance
Tow
i
As* Indian u DfnersI
SEVEN CENTS SIX PAGES
ith drawal
rard Assam
[)raw Bac
e Troops Overrun
Impregnable Pass
Radio Reports Chou En-Lai Says
Indian-Chinese Dispute To Grow
NEW DELHI (Ak)-Driving Communist Chinese forces crum-
bled Indian defenses in the Se Pass sector of the Himalayan
front yesterday and lanced to a point only 25 miles from the
populous plains of Assam.
Red battalions, 20,000 strong, outflanked and overran
defenses of the 13,156-foot pass-which Indian frontline
troops/had considered impregnable-and then captured Bom-
dila, another mountain position 60 miles to the southeast,
where the Indians had hoped to make a stand.
Meanwhile, in Peiping, Red China's Premier Chou En-
Lai was quoted as saying that, far from being near an end,
the India-China conflict will
grow in scale.
Void Limit
On Funds
By The Associated Press
LANSING - Attorney General
Frank Kelley ruled yesterday that
a legislative restriction on appro-
priations for Michigan State Uni-
versity is unconstitutional and
void.
Kelley issued his opinion in re-
sponse to a request from Leland
Carr, Jr., attorney for MSU.
The query stemmed from action
by the Legislature this year in
which MSU's entire appropriation
was granted only upon the condi-
tion that. none of the money be
used to continue a controversial
Labor Relations Center.
Kelly said:
"Where the Legislature condi-
tions the entire general appropria-
tion for Michigan State University
upon the fact that no portion of
the appropriation shall be used to
maintain or continue the Indus-
tries and Labor Relations Center
or any center or school of a sim-
ilar nature, such a condition is
unconstitutional .' ."
Kelley pointed out that the state
constitution vests exclusive con-
trol of the general fund of the
university in the governing body-
the trustees.
Citing an earlier case, Kelley
said that the State Supreme Court
recognized the authority of the
Legislature to make appropriations
for specific objects attatch law-
ful conditions which would be
binding upon the appropriation.
"Nevertheless," Kelley added,
"the authority of the Legislature
does not encompass general funds
appropriated for general purposes
of the university in that the peo-
ple had reposed exclusive control
and direction over such funds in
the governing body of the univer-
sity."
The Industry and Labor Rela-
tions Center was the subject of a
Senate investigation after charges
were aired that it was pro-labor.
Kelley said that the Legisla-
ture's action demands -that the
MSU trustees abdicate authority
to manage and control MSU in re-
turn for the appropriation.
The Legislature could impose
oher conditions of a similar na-
trol of the university from its
constitutionally designated govern-
ing body."
Set Launching
Of U' Device
WXAT TnP TfiT ANT)-~A "'Tee-
day and thus the United States-
Soviet negotiations on a Cuba
settlement remain deadlocked.
The United States:authorities
said it would be helpful to have
a clear cut Russian reply by the
time Kennedy meets with news-
men at 6 p.m. today.
They declined to term this a'
deadline or hour of ultimatum
for a Russian answer, but they
made plain that timerisbrunning
out on removal of the bombers.
The President's news session,
which will be carried by major
radio and television networks, is
expected tofeature a report on
the Cuban crisis.
At least in part because touchy
negotiations have been under way,
Kennedy has not held a news con-
ference since the crisis erupted
Oct. 22.
United States negotiator John
J. McCloy had a afternoon-long
meeting with Kuznetsov on Long
Island Sunday.
He was said to have the Krem-
lin representative forcefully that
no progress on the proposed Cu-
ban settlement is possible until
the Soviets pull out the estimated
30 IL28 jet bombers in Cuba.
Death Fells
Physicist Bohr
By The Associated Press
COPENHAGEN-Niels Bohr, a
nuclear physicist generally ranked
second only to Albert Einstein,
was stricken by a heart attack
Sunday and died in Copenhagen.
When only 28 years old, he had
undertaken and solved problems
that had baffled many scientists-
including an explanation of theo-
retical relationships in atomic en-
ergy, which won him a Nobel Prize
in 1922.
N ehru Sends
U.S. Appeal
For Arms
Indian Ambassador
Meets with Kennedy
WASHINGTON VP)-An urgent
appeal from India's Prime Minis-
ter Jawaharlal Nehru for heli-
copters and transport planes was
delivered to President John F.
Kennedy yesterday.
India also sent a number of re-
quests for more arms and equip-
ment to the State Department.,
Authoritative sources said the
appeal for aircraft was contained
in a letter delivered to the Presi-
dent in person by India's Ambas-
sador B. K. Nehru, a cousin of
the prime minister.
After the White House meeting,
Ambassador Nehru. said the pur-
pose of his call was to acquaint
Kennedy with the latest develop-
ments in the military situation
and the urgent need for defense
requirements.
State Department Press Officer
Lincoln White said the United
States has a number of new re-
quests from India for arms and
equipment to supplement the $5
million worth already airlifted.
Authoritative Indian sources
said there were no specific re-
quests in the letter delivered to
Kennedy.
India faces a major problem in
supply and equipment for its
troops engaged along the 1,500-
mile Himalayan frontier with Red
China.
United States officials expect
the Chinese Communist offensive
in the northeast frontier may
pause to regroup before driving
farther toward the plains of As-
sam.
Us* SsSs R.0 300
MILES
" Koshgar S I N K I A N G
CHINA Lanchow
LADA KHNI al04J4 t
KASHMIR Pongong Lake!
Demchok Chinese Reds
PAKISTAN TIBET Reported Massing
Reinforcements MC MA HON LINE
NEW
DELHI " BHUTAN '
ti~cA SIKKIM r '
Walong
aipurBomdila Ta i
e6
*r o " .
Allahabad Kunming
Indore PAKISTAN Indian Troops
INDIA \ Form Defense
CALCATTAS P
..
I
BOMBAY Nag pur
DEFENSE POSITIONS-The m
munists as they advanced closer
been reportedly massing troops
COLLEGE AID:
Predicts
WASHINGTON (P) - Secretary
of Health, Education and Welfare
Anthony J. Celebrezze said yester-
day the Administration will seek
action early in the new Congress
for aid to higher education.
"We will introduce the legisla-
tion early and hope for coopera-
tion from the committees," Cele-
brezze said in answering a ques-
tion after speaking at the Na-
tional Press Club.
Letter to Asians
Peiping Radio said he made the
Bay of Bengal BUR M A statement in a letter last Thurs-
day to heads of 24 African and
nap shows the Indian defense lines crumpled by the Chinese Corn- Asian Nations.
to the populous state of Assam. It indicates where the Chinese had A single mountain ridge stood at
for yesterday's offensive against the Indians. nightfall between the invaders and
___________Assam, 'a state which produces
much of India's tea, rice and oil.
The Indians' next possible de-
fense position-perhaps the only
one-is at a place called Eagle's
Nst, 9,300 feet up on a road run-
Earl Action on Bi ning to the Assam town of
pur, an Indian army headquarters.
Bomdila Falls
"There is great need at this time He mentioned a quality educa- Prime Minister Jawaharlal
in the field of higher education," tion program and loans for stu- Nehru announced the fall of Bom-
he said. dents. dila, which a Chinese vanguard
More Than Buildings So far as aid for teachers' sala- struck Sunday night. The Indian
Asked whether he would push ries is concerned, the secretary army had considered that a rear
for federal aid for teachers'Sala- said he feels the government area and' its contingents there
should help in providing educa- were surprised before they had a
ries or aid only for school con- tional aid for persons who want chance to dig in effectively.
struction, Celebrezze said plans to be teachers but expressed the The other two man Chinese
are "to push for many things, not feeling that "the salary structure thrusts into India appeared at least
only construction." is purely a local responsibility." temporarily stalled, although not
Clarify Views necessarily halted.
Department officials later were At the eastern end of the front,
asked to clarify this remark. They near Burma, Indians were fighting
issued this statement: on a defense line in the Luhit Riv-
"Teacher salaries are a matter er Valley a dozen miles south of
P erfo m yiof state and local responsibility. their overrun positions at Wolang.
However, the secretary believes Capture Outpost
that if any federal grants are At Chushul in Ladakh, at the
Iw ceroreason od hnoe tt n oa epniiiy teirerun poitins t Woslag.
Snmade avaliable for elementary and northwest end of the battlefront,
Making their Ann Arbor debut, secondary education, the state the Chinese captured an outpost
the Chicago Little Symphony un- should make the determination ain ta an a
Jerhnsbon ofnu Thoy Johnsos guthrdiEg aRLEAal(CIn)i-nThirfir."
dert bton cofdt To chow the money should be used as and moved againstChushul itself.
will give a special concert at Rack- between construction and teach-
ham Aud., Dec. 9 at 2:30 p.m. ers' salariesy "Chushul has been attacked
The symphony, presenting a rep- -- __ with force, but they are holding,"
ertory of classical, romantic and Nehru said.
modern works, has for the last Groupfl iBlasts The prime minister held an
two concert seasons toured the 1 emergency meeting with his cab-
South and the Midwest perform- i D m iet to discuss the dark turn in
ing their chamber programs. TheL ane ap i what he called "a full-fledged war
group has 20 members... a kind of brutal and callous
Johnson annually appears at the NEW ORLEANS (CPS) - The war."
University to conduct two concerts Louisiana branch of the National Then, in an unscheduled broad-
at the May Festival. tts ihsPat a lse cast to the nation, Nehru said the
The Ann Arbor program will in-4 tts igt atwhsbatd ar forced on India by the Chinese
SPECIAL CONCERT:
Chicagro ttle Symphony To
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JAWAHARLAL NEHRU
. .. 'full-fledged war'
STUDY JUDIC;
orientation
.first Topic,
At Meetings
The Judiciary Study Committee
of Student Government Council
held its first meeting yesterday to
orient the members with the pres-
ent structure of University Judi-
ciaries.
SGC established the committee
earlier in the semester to study
possible revisions. in present Judi-
cial structure.
The members of the study com-
mittee are SGC treasurer Thomas
Brown, '63 BAd; SGC -members
Mary Beth Norton, '64, and Rich-
ard G'sell, '63; the chairman of
Joint Judiciary Council Gary
Hoffman, '63; Herbert Heiden-
reich, Grad, member of the Hu-