SUNDAY, SEPTEMBER 29, 1963
THE MICHIGAN DAILY
SUNDAY, SEPTEMBER 29, 1963 THE MICHIGAN DAILY PAGE'
By JOHN M. HIGHTOWER
Associated Press Staff Writer
WASHINGTON-President John F. Kennediy is expected to make
a decision soon after returning to Washington-next week on proposals
to reverse longstanding United States policy and permit the sale of
wheat to Russia at subsidized export prices.
Word spread through administration circles today that ke'y
government departments would recommend the policy change at
a White House meeting, probably .
Tuesday.. However, he Johnson Act has
If, as high officials seem to ex- been interpreted as prohibiting
pect, Kennedy approves the step long term loans or credits in such
it could lead to an early sale of cases but not normal commercial
wheat to Russia and to trade in credits covering a_ period of
other agricultural products with months.
the Communist bloc to whatever In the case of the Canadian pur-
extent such products might be chase Russia has agreed to pay
needed in various Red countries. by combination of cash and credits
Published reports on how much extended. only to an 18-month
grain the Soviets are interested in period.
buying have varied from 100 mil- On any specific deal the United
lion to 300 million bushels. One States government would ask for
report Friday said Soviet negotia- a specific interpretation from the
tors at Ottawa had offered to Justice Department, it was said, to
take three million tons at $250 be sure that it was considered
million. Three million tons would legal under the Johnson Act.
be in excess of 100 million bushels. One of the great mysteries about
State Department officials insist the whole problem is why the So-
that the government still has re- viets need o buy wheat in un-
ceived no direct approach from precedented quantities. The need
the Soviet Union. Grain dealers, became publicly apparent two
however, have informed key g.ov- weeks ago when Soviet negotiators
ernment agencies of Soviet in- closed an agreement at Ottawa
terest in a deal. to buy 198 million bushels of
One of the big problems for the wheat and 291/2 million bushels
President relates to price subsidy; of flour for half a billion dollars.
United States wheat sells at the The Russians have also bought
farm for $1.90 a bushel in the wheat from Australia.
domestic market. The competitive Estimate 10 per cent Failure
export price is ' around $1.30 a United States officials have es-
bushel which means a 60 cent timated that the Soviet crop this
subsidy paid by the federal gov-
ernment-or the American tax- year failed by 10 per cent. Some
payer-to maintain the farm in- Eastern European Communist
come level. sources were saying that by the
I Not Prevented by Law end of this week that the crop
State Department officials said failure was more likely around 25
there is no law barring the sale per cent.
of wheat to a Communist 'country Such a loss in- food production
at the export price but there is could be especially upsetting to the
a policy which was reinforced in Soviet government at a time when
1961 by a' statement of Congress it seems to be facing increasing
saying that price support money difficulties with Communist China.
should not be used to finance ex- The verbal attacks Moscow and
ports to Communist countries. Peking have exchanged in recent
lort to ommnistcoutrie, weks aveincluded charges of
It was primarily for this reason weeks haveinslbed he o
that Kennedy and Secretary of border violations between the two
Commerce Luther Hodges and Sec- countries and if these go on long
retary of Agriculture Orville Free- enough they could lead to border
man spent considerable time last clashes.
week with congressional commit- There is thus some ground for
tees to sound out whether the in- speculation that Soviet leaders
tent of Congress might have may feel under more pressure than
changed. There were some out- they normally would to expand
'spoken opponents of selling wheat aalbefo eevs
to the Russians but State, Agricul-
ture and Commerce Department The favorite explanation in gov-
experts are understood to have ernment circles here is that the
advised their chiefs that the bur- crop failure probably has been
den of congressional sentiment worse than was originally realized
appears to favor the policy change. wn ta n
Another problem is that of in Washington.
credits. A law put on the books Last year the Soviets hardly im-
almost 30 years ago, the Johnson ported any wheat at all. They need
Act, prohibits loans to countries probably around 50 or 60 million
which are in default on their tons of wheat a year for their own
debts to het United States. Russia purposes internally and they ex-
is in that category. port about 5 million tons.
Economist Devises New Plan
GROMKYO HAS THE FLOOR-Soviet Foreign Minister Andrei Gromyko has the floor during dis-
cussion with British Foreign Secretary Lord Home, left, and United States Secretary of State Dean
Rusk. The discussion was on ways of reducing East-West tension.!
Ministers Discuss Easing of Tensions
By BEN F. MEYER
Associated Press Staff writer
WASKINGTON - A Chilean
economist and diplomat has come
forth with a revolutionary plan to
reorganize world finance and
Circulated privataely up to now,
his proposals could produce a
sensation at the annual meetings
here Monday through Oct. 4 of
the International Monetary Fund
and the World Bank.
This is because some of the
smaller nations have been insist-
ing for years that both institu-
tions, and especially the fund,
should liberalize their rules to
give more help to the little coun-
Fernando Illanes is the author
of the proposals. He says "The
little countries, if listened to,
might well lead the big countries
out of the increasingly difficult
morass of financial and trade
His program includes such sug-
gestions as :
1) A rise in the price of gold,
with consequent devaluation of
the United States dollar, the Brit-
ish pound sterling, and other cur-
rencies usd as monetary reserves.
2) Increased trade, through a
form of subsidy if necessary, and
greater economic aid, for develop-
3) Sharp reduction or elimina-
tion of tariff and other barriers
4) Greatly increased use of re-
gional economic agreements to en-
able small countries, with limited
markets, to develop industries and
boost their own living standards.
The plan, Illanes says, would
increase the availability of money
to foster greater trade, economic
development and social progress.
"If the proposals sound some-
what radical or revolutionary, it
should be borne in mind that
world finance is sick-much sicker
than is generally recognized, and
drastic measures are indicated,"
"If big countries such as the
United States are having troubles
maintaining a satisfactory situa-
tion in the complex world of inter-
national finance and t"ade, think
what problems must confront
small countries, with fewer re-
sources, and smaller monetary re-
"It appears inevitable that the
same problems concerning the
balance of payments now affecting
the tnited States will extend to
other industrial nations.
llanes is one of the 18 executive
directors of the 92-nation World
Bank. He represents Argentina,
Chile, Bolivia, Uruguary and Para-
guay on the board.
His proposals will not be sub-
mitted formally to the meetings of
governors of the bank and mone-
tary fund. If past practice is fol-
lowed, however, they will be dis-
cussed widely by financial officials
of the world nations gathering for
the meeting, and especially by the
smaller nations, who have become
aware of the Chilean's study.
"The ideas in the study are not
new," Illanes says. "They have
been discussed or advocated f
years, and some of the proposa
actually were put to use by som
of the nations. What is new is th
approach-the suggestion that a
93 members of the monetary fui
adopt these proposals."
For years the meettings of tV
bank and the fund have heard it
creasingly insistent appeals fri
some smaller nations for a libera
ization of policies. The appea
have been aimed largely at t:
fund, an organization charg
with helping world nations achie
or maintain financial stability,
the theory that less rigid rules
the fund would provide a broad
financial base for world trade an
development, for internal ec
nomic expansion by large an
small nations, and thus woui
boost living standards.'
Illanes' study supports this ide
Apparently anticipating a ne
rash of such proposals at the corn
ing meetings, the monetary fun
has indicated it is not goingi
for any sweeping changes, b
is keeping its eyes open.
The fund, in its 18th annt
report, did not refer to Illane
proposals, which were not in ci
culation among financial exper
at the time it was drafted. Plane
study, however, says "some rece
studies assert there is not lack
liquidity in international pa
ments and it is often added tli
officials of virtually all democra
nations agree with this opinion
By The Associated Press
UNITED NATIONS-The United
States, British and Soviet foreign
ministers discussed y e s t e r d a y
meani of further easing cold war
tensions amid hopeful signs that
this was taking place.
Western sources called the ses-
sion "pleasant and constructive,"
but said the only agreement was to
Secretary of State Dean Rusk
VATICAN CITY ('P)-Church-
men from all over the world as-
sembled last night for the open-
ing of the second session of the
Roman Catholic Ecumenical Coun-
Approximately 2500 of them will
sit down this morning with Pope
Paul VI to resume work started a
year ago by Pope John XXIII.
Eleven Eastern Orthodox
churches decided in conference on
the Greek island of Rhodes yes-
terday to meet the Vatican on
equal terms for discussions that
would further thecause of Chris-
tian unity. They also decided that
each of the 11 churches-includ-
ing most behind the Iron Curtain
-should act freely on accepting
or rejecting the Vatican's invita-
tion to send observers. The Greek
Orthodox Church was a dissenter,
calling, union with the Roman
Church an impossibility because
Orthodoxy does not accept the
Papal claim of infallibility.
The observers are allowed to sit
in on the Ecumenical sessions and
for the first time Roman Catholic
laymen will sit in on secret ses-
sions and offer advice if called
upon. They are said to include an
American-James E. Norris, presi-
dent of the International Commit-
tee on Catholic Migration.
was host to Russia's Andrei A.
Gromyko and Britain's Lord Home
in the first high-level East-West
parley since the Aug. 5 signing in
Moscow of the lmited nuclear test
They declined to go into spe-
cifics of their discussion, but it
was understood disarmament was
the main topic.
No Hard Details
But neither side got down to
Gromyko was said to have call-
ed for general and complete dis-
armament, which differed from
the United States-British emphas-
is on a step-by-step approach.
The Soviet proposal for station-
ing observation posts at important
transportation centers, to guard
against surprise attack, came up
but Gromyko did not giveenough
detail for the Western powers to
know whether it would be accept-
able to them.
Not mentioned at all was the
Russian proposal for a non-ag-
gression pact between the North
Atlantic and Warsaw military
blocs, it was said.
Meanwhile in Washington,
United States officials said that
Russia cooperating in developing
proposals to be discussed at an
international conference n e x t
month on radio frequencies for
They reported that in new pro-
posals the Soviet Union has shown
a willingness to assign a much
greater number of frequencies for
the satellite operations than it had
previously been willing to do.
In Paris, a high Soviet space
official said his country and the
United States could save time
and money by cooperating on
Second to Comment
He was the second Soviet offi-
cial to comment on the Moon offer
President John F. Kennedy made
Sept. 20 in a United Nations
speech. Anatoli A. Blagonravov, a
leading Soviet space scientist, said
earlier .last week in Belgrade that
cooperation would be desirable,
but in what forms he could not
"A Soviet-American cooperation
to share the exploration of the
Moon would permit faster progress
and would reduce, for both coun-
tries, the immense output of
money which it represents," So-
viet air force Gen. Nicolas Petro-
vitch Kamanine said in an inter-
view with the French News Agency.
"However, we need some time
and a favorable political evolution
before such cooperation could take
concrete forms," he added.
ISTEAK, AND- SHAKE
U.S. Emphasizes Displeasure
With Coup by Recall of Martin
Try our STEAK and EGGS
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- also featuring -
1313 SOUTH UNIVERSITY
Juan Bosch was sped out of
the national palace last night
and apparently deported from
the country heruled only seven
months. A high-ranking military
officer said he was taken aboard
the Dominican navy frigate
Mella for "a slow, leisurely ocean
WASHINGTON 0P)-The Unit-
ed States emphasized yesterday
its displeasure at the overthrow
of the government of the Domini-
can Republic by announcing the
return to Washington of the Unit-
ed States ambassador and the
heads of foreign aid and military
aid missions to that country.
The United States government
had announced a few hours after
last Wednesday's military coup the
suspension of diplomatic relations
and of economic aid to the Domin-
Yesterday's action was announc-
ed in Santo Domingo, the capital
of the Dominican Republic, by
Ambassador John Bartlow Martin.
Apprently to press home the word
to the Dominican people that the
United States does not like to see
the country's first elected presi-
dent in more thn 30 years driven
out of office by the military.
close personal and official friend-
ship with the deposed President
The new Dominican govern-
ment, which the military men an-
nounced Friday was being put into
the hands of a three-man civilian
junta, immediately expressed a de-
sire for United States recognition.
Officials here said it is likely no
action will be' taken on that re-
quest for a few weeks, during
which Washington will have an
opportunity to see what happens
in the country and what neighbors
in Latin America think of the sit-
There was a report the United
States government has warned the
new regime it would view with the
gravest concern if - any physical
harm should come to Bosch, re-
ported held a prisoner in the pres-
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world News Roundup
All Houses still interested in obtaining
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By The Associated Press
SAIGON - Scattered rifle fire
formed a distant background for
briefing of President John F. Ken-
nedy's military survey mission at
Ca Mau yesterday on the progress
of the war in Viet Nam's Com-
munist-infested deep South. Ran-
dom shooting was audible near
Ca Mau as Secretary of Defense
Robert S. McNamara and Gen.
MaxwellnD.CTaylor, chairman of
the Joint Chiefs of Staff, paid
a visit there.
WARSAW-East German Com-
munist leader Walter Ulbright
warned yesterday that West Ger-
mans "will have to pay with their
heads" for any attempt to recover
territory held by Communist Po-
land. He charged that in West
Germany "the power is held by
militarists and imperialists who
would like to gulp down the (East)
German Democratic Republic and
once more to dismember Poland."
TOKYO-Communist China has
created tle fifth and sixth Min-
istries of Machine Building and
named two military men to head
Michigan Union Alleys
Open 7 days 1-11 p.m.
them - suggesting increased pro-
duction of military hardware is
OXFORD-A Mississippi justice
of the peace yesterday found Cleve1
McDowell guilty of carrying a con-
cealed pistol in his pocket and'
fined him $100. The 21-year-old
Negro from Drew, Miss., expelled7
from the University of Mississippi
last Tuesday for having the gun,
* ~ * s.
LAGOS, Nigeria - Demanding
general wage increases, 700 Niger-
ian labor unions declared a na-
tionwide strike yesterday but it
seemed quite ineffective.
ATHENS-King Paul yesterday
swore in a nonpolitical cabinet
headed by Justice Stylianos May-
romichalis, president of the su-
preme court, to govern Greece un-
til the election of a new parlia-
ment Nov. 3.
ment officials yesterday denied re-
ports that the United States has
offered West Germany use of some
American military bases in France.
Officials insisted that the United
States would make no offer of this
kind without full French approval
KANSAS CITY - The Kansas
City Tavern Owners Association
claimed yesterday to have more
than 10,000 signatures on petitions
to force a referendum vote on the
city's new public accommodations
The State Department confirm-
ed Martin's announcement of the
return of himself and the two oth-
er officials, Nowell F. Williams, di-
rector of the aid mission, and Col.
David C. Wolfe of the military mis-
State Department officials said
Martin had been called home for
consultation, and that no decision
has been reached whether he will
return to his post.
Diplomatic circles speculated
that even if the United States re-
sumes normal relations with the
new regime in Santo Domingo-
as is expected after a lapse of a
few weeks - Martin eventually
might be replaced because of his
check bulletin board in SGC offices
for available times.
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Sun., Oct. 6,
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