DECEMBER 14,1962
THE MICHIGAN DAILY
, DECEMBER 14, 1962 TINE MICHIGAN DAILY
Claims
Shifts to
old
War's
Edge
Western Powers'
Kaiser Steel
May Reveal
New Contract
WASHINGTON (P)-A radically
different labor contract is appar-
ently in the making between Kai-
ser Steel Co. and the Steelworkers
Union which could set a pattern
for American industry.
The pact, due for announcement
on the West Coast next week, re-
portedly will contain an entirely
new concept of sharing production
cost savings among the employer,
his workers and the public.
Edgar F. Kaiser, the firm's
board chairman, talked over the
prospective pact yesterday with
President John F. Kennedy at the
White House.
Share Savings
The innovation devised by Kai-
ser negotiators, aided by a trio of
outside labor experts, is to let
workers, management and the
public share in cost savings.
Periodically, computers would be
put to work on a mass of cost data.
Any savings shown in producing a
ton of steel compared with a spe-
cific prior cost figure would be
shared according to a fixed formu-
la.
The effect of the formula would
mean that workers would retain
about one-third and the remain-
ing one-third would wind up as
additional tax payments.
No Profit-Sharing
'The negotiators, working on the
idea for three years, discarded
profit-sharing or worker incentive
systems as the best way to get
maximum team effort from the
management - worker - tool combi-
nation.
The new Kaiser pact is under-
stood to contain a proviso pledging
the company to match other steel
industry wagelevels if cost savings
are insufficient to bring Kaiser
workers' earnings to that level.
Another feature is reported de-
signed to eliminate gradually the
present worker incentive pay sys-
tem. The worker will be given a
series of choices that are expected
to lead him to prefer the new cost
sharing pay method.
The whole idea is to steer away
from individual incentives. Kaiser,
relatively new among steel pro-
ducers, has a less highly developed
incentive system.
Ellender Cites
'Right' Words
At Wrong Time
CAIRO (iP)-Sen. Allen J. El-
lender says he knows now that he
may have said the right thing in
the wrong place.
The Louisiana Democrat discuss-
ed in an interview Wednesday the
furor set off in Africa by his state-
ment in Salisbury, Southern Rho-
desia, on Dec. 1.
He was quoted as saying, "I have
yet to see any part of Africa where
Africans are ready for self-govern-
ment. The average African is in-
capable of leadership without
white assistance." And in other
places his stops were limited be-
cause of his statement.
"It was my judgment that in
these countries leaders will not be
able to establish and operate gov-
ernments without outside help."
Tells NATO
I
NATO MOVES-British Prime Minister Harold Macmillan (left)
receives a reported United States offer to obtain the Skybolt
missile while Secretary of State Dean Rusk tells the Paris NATO
meeting that the Cold War onus has shifted to the Russians.
'SHORTSIGHTED':
T ito Denounces Chinese
for Soviet Criticism
MOSCOW (P)-Yugoslavian President Marshal Josef Tito de-
nounced Communist Chinese and Albanian criticisms of Soviet Pre-
mier Nikita S. Khrushchev's foreign policies yesterday as shortsighted
and dangerous.
The visiting Yugoslav leader, himself once a sharp critic of the
Soviet premier, presented his views on Khrushchev's peaceful co-
existence tactics to the Supreme Soviet.
Gromyko Talk
At the same time, Soviet Foreign Minister Andrei Gromyko pro-
fessed Soviet willingness to come to agreement with the West on ma-
Of Worries
In Moscow
Rusk Gives Meeting
Views on U.S. Status
PAIS (P),-The United States
told its Western allies yesterday
the headaches of the cold war are
moving to Moscow.
The NATO allies responded with
a call for the West to seize the
advantage through carefully plan-
ned diplomatic action.
United States Secretary of State
Dean Rusk told a NATO minister-
ial meeting the Soviet setback in
Cuba and increasing problems
within the Communist bloc itself
give the West an opening to take
the initiative in the East-West
power struggle.
Canadian Foreign Minister How-
ard Green summed up the case
for the ministers in suggesting
positive action. Informants attend-
ing the closed meeting quoted
Green as saying that "this is a
time when the Soviet Union is re-
assessing its policies as a result
of its forced withdrawal from
Cuba."
The United States also offered
at the NATO conference to make
Britain a gift of its $500 million
investment in the Skybolt rocket
program, if Britain really wants to
remain an independent nuclear
power.
Speaking with the knowledge of
the American offer, British Prime
Minister Harold Macmillan told
the House of Commons that "it is
government policy to maintain the
British deterrent if we are able
to do so."
An informed source also report-
ed that the United States would
be prepared, under certain cir-
cumstances, to relinquish its veto
over the use of a European nuclear
deterrent on a multi-national
scale, linked to NATO.
This would require amendment
of the United States McMahon
Act, which restricts sharing of
atomic secrets with other nations.
The veto means that only the
President of the United States can
give the go-ahead signal for use
of nuclear weapons by America's
European allies in any conflict.
Some Europeans have misgivings
about this idea. France and Brit-
ain want to build their own nu-
clear forces. The United States be-
lieves single nuclear forces are
strategically unsound.
Borneo Rebels
Flee to Jungle
LABUAN, North Borneo (MP) -
Anti-British rebels fled into the
swamps and jungles of Brunei and
Northern Sarawak yesterday, ap-
parently to start a guerrilla war
for independence.
A British military commander
said the last rebel strongholds had
been crushed.
UN Plans
Ka tanga
Pressure
UNITED NATIONS ()-Unit-'
ed Nations Secretary-General U
Thant said yesterday the United
Nations will exert all possible pres-
sure short of armed conflict to
compel Katanga President Moise
Tshombe to end secession from the
Congo,
He added that if Tshombe
should choose to attack United Na-
tions forces "we will defend our-
selves fully and hit back to the
full. extent of our capacity." He
said United Nations troops are
alerted "and are being prepared
for any such eventuality."
Closed Meeting
Thant spelled out his views at a
closed meeting of the 19-nation
Congo advisory committee.
He told the committee that he
had received a communique
from Tshombe that would "ap-
pear to be an encouraging devel-
opment" but added that "in view
of our past experiences with
Tshombe wesare not jumping to
any hasty conclusions."
The text of the Tshombe letter
was not disclosed, but members of
the advisory committee s a i d
Tshombe had offered to pay un-
der certain conditions tax reve-
nues to the central government
from Katanga's huge copper and
cobalt mining operations.
Cease-Fire
The conditions were said to be
ratification of a cease-fire agree-
ment with Katanga by the central
government, and stipulations for
return of enough of the revenues
to Katanga to enable that prov-
ince to carry on its governmental
functions.
Thant disclosed also that he had
started sending letters to individ-
ual countries asking them to take
specific measures - apparently
dealing with an economic squeeze
-against the Katanga govern-
ment.
Cutler Awaits
Romney Word
On State Post
"There isn't any doubt I can
be replaced, but there's been no
notice so far from Romney's of-
fice."
This is the situation in which
Prof. Richard L. Cutler of the
psychology department finds him-
self as Gov.-elect George Romney
hones his patronage axe.
Interim Post
Prof. Cutler was named by Gov.
John B. Swainson in May of 1961
to fill an interim position on the
state mental health board
His temporary term expired last
Sept. 6, when he was reappointed
to serve on the board through Sep-
tember 1967. However, the Senate
has not confirmed this appoint-
ment.
Hence, Prof. Cutler and 36 oth-
er state appointees in similar cir-
cumstances are fair game to be
replaced.
Merit Standard
Romney has said he will distri-
bute patronage on standards of
individual qualification and com-
jetence, with party affiliation only
a contributing factor.
Also, Prof. Cutler noted that "in
the past, appointments for the
mental health board have been
made on a professional basis."
BY BARBARA PASH
There is a traditional Americant
theory that the automobile indus-
try is an accurate barometer ofe
the entire economy.
"Like most axioms in the field1
of economics, this one has some
substance but is greatly exagger-
ated," Prof. Paul W. McCracken
of the business administrationf
school noted recently.
The automotive industry is now"
celebrating a record-setting year1
for car and truck sales. Last week,
the industry produced the two-
millionth 1963 model car, a high
for so early in the year. Yet, the
economy asa whole has remained
sluggish.
Key Industry
"The auto industry is impor-
tant, but it does not dominate the
American economy. It has been;
considered a key industry because'
of its quantative importance and
the volatile demand for its prod-
ucts," Prof. McCracken continued.
The question, therefore, is
whether we should view the whole
economy through the microscope
of the auto industry, he said.
There is some relationship be-
tween the strength and weakness
of the auto industry and the mar-
To Scrutinize
ADC Cases
WASHINGTON-Michigan, not-
ed for its tough Aid to Dependent
Children program, is one of 28
states where sample ADC cases
will be scruitinized in a move to
wipe out any abuses.
The investigation, launched by
the Health, Education and Welfare
Department, will begin in January.
ket for cars, but the flow of causa-
tion is as much from the whole
economy to the auto industry as
it is from this industry to the
economy, Prof. McCracken ex-
plained.
Relation Complex
"The relationship between, the
auto industry and the movement
of the economy is more complex
than both rising or falling at the
same time."
The increase in auto sales may,
be due to several factors wvhich
have no connection with the econ-
omy as a whole. It is possible that,
for special reasons in the auto
market itself, a boom is occurring.
Or perhaps, Prof. McCracken
noted, we are observing something
similar to 1957 and 1960. In late
1957 the American economy was
sluggish, but auto sales were
strong. In April, 1958, most busi-
nesses increased their sales' vol-
umes, but the auto industry did
Notes Fallacy in Auto Theory
Ivtw
B'ai B'rith Hillel
Foundation
not. The same thing occurred in
the 1960-61 recession, although
not as clearly.
"There is a tendency for the
auto market to respond to the
general movements of the econo-
my, but with a lag.
Report Team
Snow Bound
By The Associated Press
A six-man University scientific
team was trapped for eight days
by a severe blizzard on the Ross
Ice Shelf in Antartica, Charles
Swithinbank, head of the glacial
geology and polar research lab-
oratory, reported yesterday.
The team was trapped Nov. 24-
Dec. 1 and forced to remain hud-
dled for more than a week in small
tents.
SABBATH SERVICES
jointly with Beth Israel Center
TOMORROW, 7:30 P.M.
At ONEG SHABBAT following Service
NAHUM GUTTMAN, of New York
speaks on
"Israel' Point Four Program
in Afro-Asian Countries"
ALL ARE WELCOME
Zwerdlingg-Cohn Chapel
1429 Hill St.
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f
West Rejects
'Black Box'
GENEVA OP)-The United States
and Britain told the Soviet Union
yesterday they will not accept
black boxes as a substitute for an
on-site inspection system to po-
lice a nuclear test ban.
The two Western powers describ-
ed the Russian offer to place three
robot seismographs in the Soviet
Union as an interesting idea worth
further study. But they stressed
that it was completely inadequate
as a safeguard against secret nu-
clear testing.
"The proposal to use automatic
stations is not the key to achiev-
ing the satisfactory conclusion of
a nuclear test ban treaty," United
States Ambassador Arthur H. Dean
said.
The test ban subcommittee of
the 17-nation disarmament- con-
ference returned to the old funda-
mental deadlock: the West refuses
to sign any treaty without the on-
site inspection system which is
consistently rejected by the Rus-
sians.
In Paris, United States Secre-
tary of State Dean Rusk told the
North Atlantic Alliance the West
has gone as far as it can in offer-
ing concessions in the Geneva
talks. American scientists do not
accept the Russian claim that
technical developments do away
with the need for on-site inspec-
tions, Rusk explained.
Soviet Delegate Semyon K.
Tsarapkin again told the subcom-
mittee the black boxes are as far
as the Russians are willing to go
toward international control of a
test ban. Tsarapkin has offered to
allow foreign inspectors to visit
the boxes regularly to remove seal-
ed tape recordings.
.1
jor East-West issues. He said the
Soviet Union would not press the
Western powers too hard on a
Berlin settlement and renewed So-
viet contentions that the best way
of settling major disputes is
through agreements b e t w e e n
Khrushchev and President John
F. Kennedy.
Tito heaped praise on Khrush-
chev as a peace-loving statesman
and declared Yugoslav and Soviet
views on foreign policy as "iden-
tical or close together."
Tito's speech appeared to mark
the end of his 12 years as the
Communist world's most denounc-
ed heretic.
Tito said that "since some dif-
ferences still exist, we will elimi-
nate them through constructive
cooperation."
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Tito devoted much of his"
speech
------- VvvVVVVVV1fVYVV
YYitmil
to praising Khrushchev's "cour-
ageous" handling of the recent
Cuban crisis.
Although Khrushchev and Tito
have hinted they have partly set-
tled their ideological differences,
Tito made it clear he still consid-
ers Yugoslavia one of the "un-
aligned, peace - loving states."'
Khrushchev, in his speech Wed-
nesday, indicated he was satisfied
with this arrangement.
Gromyko joined the chorus of
speakers at the meeting who de-
nounced the "dogmatist" critics of
Khrushchev's Cuban policy as ca-
pitulation to the Americans.
WORLD NEWS ROUNDUP:
Strike Wave Batters Italian Industries
By The Associated Press
_ROME-A wave of nationwide
strikes closed newspapers, schools
and some heavy industries in Italy
yesterday. Paper mill workers and
Italian Red Cross personnel also
were striking.
BUENOS AIRES - Air Force
Brig. Antonio Cayo Alsina report-
edly returned to Buenos Aires un-
der arrest, Wednesday, ending an-
other Argentine revolt.
WASHINGTON---President John
F. Kennedy hopes a White House-
to-Kremlin "hot line"-probably a
teletype-can be set up to avoid
delays that held up for hours some
Cuban crisis messages.
NEW YORK-Attorney James
B. Donovan said yesterday that the
American Red Cross is joining his
efforts to free Cuban invasion
prisoners and he hopes to have
them released by Christmas.
NEW YORK-The Stock Market showed the 30 industrials down
returned to the losing side yester- 2.13, 20 railroads down 0.47, 15
day on the lightest volume in six utilities down 0.07, and the 65
weeks. The Dow-Jones averages stocks down .61.
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