SUNDAY, SEPTEMBER 29, 1963 THE MICHIGAN DAILY PAGE ' SUNDAY, SEPTEMBER 29, 1963 THE MICHIGAN DAILY PAGE' Expect Kennedy Change Polic 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 -Associated Press 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 trade. 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- tries. 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 problems." Reform Program 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- ing countries. 3) Sharp reduction or elimina- tion of tariff and other barriers to trade. 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. Need Money 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," he asserts. "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- serves. "It appears inevitable that the same problems concerning the balance of payments now affecting the tnited States will extend to other industrial nations. Executive Directors 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. Old Ideas "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 Open Eyes 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 meet again. Secretary of State Dean Rusk Churchmen Open Council 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- cil. 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 ban treaty. 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 hard details. 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 communication satellites. Greater Willingness 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 Moon exploration. 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 say. "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 served with potatoes and toast - also featuring - Char-Broiled Hamburgers 1313 SOUTH UNIVERSITY BULLETIN 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 voyage." 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- ican Republic. 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. Confirm Announcement close personal and official friend- ship with the deposed President Juan Bosch.I Desires Recognition 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- uation. 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- idential palace. 1 1 665-9655 665-9655 * IF BUSY IF BUSY S665-38001308 SO. 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No. 4635 Average, sizes S-M-L at 4.00 world News Roundup All Houses still interested in obtaining SGC candidates for speaker programs , ~ - / \ ii 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 COED BOWLING Michigan Union Alleys Open 7 days 1-11 p.m. Automatic Pinsetters them - suggesting increased pro- duction of military hardware is their aim. * *4* 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, pleaded innocent.a * ~ * 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. WASHINGTON-State Depart- 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 ordinance. 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- sion. 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. (SAB) ALL CAMPUS-SGC FORUM Candidates Speak.Out 7 P.M. Sun., Oct. 6, 1963 Union Ballroom a and his Sextet IN PERSON FRIDAY October 4 8:30 P.M. Hill ATTENTION?? ALL UNIVERSITY WOMEN There are a few positions yet to be filled in the Women's League by interested Michigan Women Petitioning until Oct. 2 Auditorium I III 11 III