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October 10, 1963 - Image 3

Resource type:
Text
Publication:
The Michigan Daily, 1963-10-10

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THEMICHIGANDAILY _

Kennedy

Approves

Wheat

Sale'

Labor Bloc
Ends S trike

To Communist

Bloc Countries

fit e

U.S. Claims,
Russia Owes
Past Debts
WASHINGTON (IP) - Official
figures showed yesterday that -
aside from any wheat deal -=- the
United States government claims
Russia owes this country some $1.5
billion which the Soviets have not
agreed to pay up.
The longstanding I.O.U. from
Moscow is one of the disputes that
has soured United States-Soviet
trade relations for years. Trade is
a topic expected to figure in talks
here today when Soviet Foreign
Minister Andrei A. Gromyko sees
President John F. Kennedy and
other high officials.
According to an accounting sup-
plied by State Department of fi-
cials, Russia owes $612 million on
World War I debts, $47 million on
post-World War II United States
lend-lease shipments and a large
sum-perhaps $800 million -- on
lend-lease aid provided during
World War II.
Lend-Lease Goods
America sent nearly $11 billion
worth of military and civilian lend-
lease goods to Russia during the
common World War II effort.
Afterwards, the United States
sought repayment of $2.6 billion
on those items which had postwar
economic value-like oil refining
equipment, communications gear,
trucks and merchant ships.
Talks on a lend-lease settle-
ment broke off in 1952 with the
United States demand scaled down
to $800 million but the Reds still
offering only $300 million. An-
other try in 1960 got nowhere.
That time the Soviets wanted to
tie a settlement to expanded trade
and United States credits. United
States law forbids loans to coun-
tries which are in default to the
United States.
Mammoth Impactl
While conceding that a wheat
deal on the scale proposed by the
Soviets would have a mammoth
impact on the present scale of
United States-Russian trade, ad-
ministration sources said it would
not in itself cause a long-range
rise in commerce between the two7
cold war rivals.-
According to United States esti-
mates, the Soviets can normally,
be expected to be grain exportersa
in the future as they have been in
the past. The Russian grain har-
vest was calculated at around 55
million tons in 1962 and 45 million
tons this year, when drought hit
hard. Meanwhile Moscow's export1
commitments were figured at
nearly 5 million tons, mostly to
the Soviet satellites.

IF MACMILLAN QUITS:

Conservative Leaders
Pro-Butler for Minister
BLACKPOOL, England (P)--Grass roots leaders of the Conserva-
tive Party strongly indicated last night they favor Richard A. Butler to
take over as prime minister if the stricken Harold Macmillan is forced
to quit.
Macmillan is scheduled to be operated on today for removal of,
an enlarged prostate gland. His doctor said the operation means the
British leader will not be fully active for two or three months.
Butler, deputy prime minister, was invited to address a mass rally
of party workers Saturday as a substitute for Macmillan. The move
,apparently puts him in front of

a

French Arm
Supersonic
Strike Force
PARIS (P)-France's controver-
sial nuclear strike force has come
into being and supersonic French
planes are being armed with atom-
ic bombs, authoritative sources said
yesterday.
The informants said a concrete
beginning has been made with
Mirage IV planes rolling off as-
sembly lines and receiving atomic
bombs.
This was described as phase I
of France's nuclear program. Later
France is aiming to develop hydro-
gen bombs and missiles to carry
them.
Historic Shift
An obscure line in a communique
issued following a Cabinet meeting
indicated for the first time offi-
cially that France had made its
historic shift in armament.
The communique spoke of the
withdrawal of French military men
from the naval base at Bizerte,
Tunisia, and said this was now
possible because of "the creation
of new means which the armed
forces are beginning to have at
their disposal ..."
20,000 Tons of TNT
There was no indication of how
many operational planes and
bombs the French now have. The
bombs are believed to be some-
what more powerful than those
dropped by the United States on
Japan in World War IT, which
packed the equivalent of 20,000
tons of TNT.
The Mirage IV, built especially
to carry atomic bombs, is of me-
dium range. It probably would not
be able to- reach into Soviet terri-
tory without danker planes for re-
fueling.
France perfected an operational
atomic bomb following a series of
aerial and underground tests in the
Sahara, beginning Feb. 13, 1960.
The most recent announced test
was last March 18. France now is
constructing a Pacific test site
which is expected to be operational
within two years.

other contenders for the leader-
ship of the party if Macmillan
bows out.
Annual Conference
The' rally is slated to follow the
formal windup of the party's an-
nual conference. Macmillan had
planned to tell the rally he intend-
ed to lead the Tories into next
year's general election.
Lord Chelmer, chairman of the
National Union of Conservative
and Unionist Associations, an-
nounced that Butler had accepted
the invitation to make the speech.
The union represents the con-
stituency groups of Conservative
Party members and, as such,
speaks for the grass roots of the
party.
Presides Over Session
Chelmer said the decision was
taken in the course of a half-houw
meeting of the executive commit-
tee of the union. Immediately after
that meeting Butler presided over
a session of government ministers
in the privacy of his suite at a
swank Blackpool hotel, which is
being used as a headquarters by
party chiefs.
Macmillan Tuesday named him
to act as prime minister during
the period of his illness. But Mac-
millan had failed to suggest that
Butler should replace him at the
Saturday rally. This was widely in-
terpreted by Conservative dele-
gates as a sign that Macmillan
himself was not over keen for
Butler to assume the role of heir-
apparent.
Cabinet Carries On
Another canddate, Lord Hail-
sham, told a party rally the Cab-
inet will carry on the work of
government until Macmillan re-
turns to his "tremendous respon-
sibilities" of office. In a prepared.
speech Hailsham expressed confi-
dence Macmillan would be cured.
Macmillan entered a hospital in
London Tuesday night for remov-
al fo an enlarged prostrate gland.
The operation is scheduled for to-
day. Macmillan's doctor said the
operation means that the British
leader will not be fully active for
two or three months.
Hailsham's speech was taken as
a morale-booster rather than as a
definite announcement that Mac-
millan will stay on indefinitely as
prime minister.
Other cabinet ministers have
said no final decision on the lead-
ership question can be taken until
the outcome of Macmillan's opera-
tion is known.
Incomes Rise
In Past Year
Individual incomes in the Unit-
ed States rose 5.7 per cent in the
past year according to Business
Week magazine.
Michigan was far ahead of this
national average. Personal income
in the state totaled $1754 million
for the month of July. This rep-
resented a 9.4 per cent increase
over the $1603 million total of
July, 1962.

Sees Trade
As Reduction
Of Surplus
To Consider Russians
As Cash Customers
WASHINGTON (P) - President
John F. Kennedy last night gave
a go-ahead for American dealers
to sell some four million tons of
surplus wheat and flour to the
Soviet Union and other nations in
the European, Communist world.
"The Soviet Union will be treat-
ed like any other cash customer in
the world market who is willing
and able to strike a bargain with
private American merchants," the
President announced at his news
conference.
The President did not say just
how much wheat and how much
money was nvolved.
Gives Example
But, in citing an example of the
kind of transaction he had in
mind, he talked of "the sale of
four million metric tons of wheat
. . for an estmated $250 million."
Kennedy said the surplus wheat
would go to the Communist coun-
tries for American dollars or gold
-"either cash on delivery or nor-
mal commercial terms."
He listed what he considered
sceveral benefits from the deal:
improvement of the balance of
payments, increase in gold sup-
plies, strengthening of the farm
economy, and a reduction in the
United States wheat surplus.
Advertises to World
And the President added:
"This transaction advertises to
the world as nothing else could
the success of free American agri-
culture."
The President's decision to au-
thorize the sale came in the face
of the possibilty that Republicans
would use it against him in the
1964 electon campaign.,
Former Vice-President Richard
M. Nixon, for example, has oppos-
ed the transaction, and other Re-
publican leaders gave Kennedy no
assurance they would keep the is-
sue out of the campaign.
Midwest farmers and wheat
traders generally were quick to give
approval of the President's deci-
sion.
The emphasis was on the deci-
sion to get hard cash on the line
and to make sales through private
channels rather than from bulg-
ing government surplus stocks.
Manager George Wilkins of the
Minneapolis Grain Exchange said
the President's decision "will have
a great majority of the members
of the exchange supporting his de-
cision, but it will not of course be
unanimous"
Kennedy, when asked if he was
concerned about political reper-
cussions, told his news conference:
"I suppose there will be some who
will disagree with this decision .. .
but I have considered it carefully,
and I think it is very much in the
interest of the United States."
World Price
Kennedy said the sale would be
made at the regular world price,
which is about 60 cents less than
the domestic market price in the
United States. Dealers, however,
would not lose on the transaction.
The federal government has an
export subsidy which makes up
the difference. So while the So-
viet Union and the other Commu-
nist countries pay the low world
price, the dealers will receive the
higher United States price.
Kennedy, however, talked of the
transaction as a boon to the Amer-
ican taxpayer, mainly because it
would cut down on the United
States farm surplus.
"Wheat ... is our number one
farm surplus today, to the extent
of about one billion unsold bush-

els," Kennedy said. "The sale of
around 150 million bushels of
wheat would be worth over $200
million to the American taxpayer
in reduced budget expenditures."
Kennedy, justifying the sale, said
"our allies have long been engag-
ed in. extensive sales of wheat and
other farm products to the Com-
munist bloc, and, in fact, it would
be foolish to halt the sales of our
wheat when other countries can
buy wheat from us today and then
sell this flour to the Communists."

J. WILLIAM FULBRIGHT
.i. nternational trade

Committee
To Examine
U.S. Trade
WASHINGTON (P) -- A long-
range study of barriers to United
States trade in non-strategic
products with Iron Curtain coun-
tries will be undertaken by the
Senate Foreign Relations Com-
mittee.
The committee's chairman, Sen.
J. W. Fulbright (D-Ark), announc-
ed the plan yesterday after the
senators met at some length be-
hind closed doors with Secretary
of State Dean Rusk and David E.
Bell, head of the Agency for In-
ternational Development.
The two appeared before the
committee with the announced
aim of urging that it restore some
of the $1 billion the House cut
from President John F. Kennedy's
$4.5-billion foreign aid request.
Rusk and Bell went through a
rcountry-by-country rundown of
foreign aid needs with the sena-
tors.
Trade Restrictions
The discussion turned to trade
restrictions in light of demands
that the United States be per-
mitted to share in wheat sales to
grain-short Russia and satellite
Communist countries.
No formal committee vote was
taken on the question, Fulbright
told reporters afterward. But he
said there was general agreement
that the committee "should pur-
sue the subject of international
trade review with the State De-
partment" after the group finishes
work on the foreign aid bill.
The -discussion reflected senti-
ment of many senators present
that this country should go ahead
with a twheat deal with Russia,.
Fulbright said, adding: "Certain-
ly a substantial number felt that
way-clearly a majority."
Set Aside Restrictions
Supporters of the sale contend
the President already has author-
ity to set aside restrictions on such
transactions.
Fulbright, who backs the deal,
said the discussion reflected "con-
siderable dissatisfaction" with the
restrictions which impede sale of
American agricultural and other
non-strategic goods to Communist
bloc countries. He said friendly al-
lied nations purchase the goods
from the United States, resell them
to the Reds and "we get no bene-
fits."

In Singapore
KUALA LUMPUR, Malaysia W)
- The powerful pro-Communist
labor bloc in Singapore, the in-
fant Malaysia's chief trading cen-
ter, called off its widespread but
rapidly tottering strike in defeat
last night.
The central Malaysian govern-
ment, busy with security issues
raised by Indonesia's hostile pos-
ture, appeared to have won a ma-
jor victory on the home front.
The strike was canceled by the
Singapore Association of Trade
Unions, the Communist-lining la-
bor bloc, after hundreds of work-
ers affiliated with member unions
broke orders and returned to their
jobs.
Threaten to Outlaw Unions
The association launched the
strike Tuesday after the Singa-
pore state government threatened
to outlaw seven of its biggest af-
filiate unions on charges that they
conspired in Communist united
front activities.
Advertised as a general strike, it
was never fully effective. About
60,000 workers struck Tuesday.
Buses halted. Some factories, busi-
ness houses, hotels and movies
were affected.
Yesterday the government de-
clared the walkout illegal under
Singapore labor statutes which
outlaw strikes for political pur-
poses.
Police, Pickets Clash
A back-to-work movement de-
veloped quickly. Riot police and
pickets clashed in a series of in-
cidents. About 70 pickets were ar-
rested.
Central government authorities
had charged earlier that the as-
sociation, industrial backbone of
the left-wing Barisan Socialist Op-
position Party, was taking mass
action in an effort to provoke
violence and take over the island
state by force. Left-wing parties
were resoundingly defeated in a
general election last month.
Six hundred miles east of Kua-
la Lumpur, in Sarawak's capital of
Kuching, somebody heaved a gre-
nade at a Malaysian riot police-
man on routine duty.
World News
Roundup
By The Associated Press
ROME-Thousands of striking
construction workers and hun-
dreds of riot police fought a bloody
battle yesterday in the Piazza Ve-
nezia area of downtown Rome.
The violence erupted after Com-
munist and non-Communist un-
ions had called on the city's build-
ing trades workers to strike for
four hours.
UNITED NATIONS-Diplomats
indicated yesterday that Ceylon,
Nepal, Thailand; Dahomey and
Morocco were likely to be sent on
a United Nations mission to inves-
tigate the treatment of Buddhists
in South Viet Nam by the govern-
ment of Roman Catholic Presi-
dent Ngo Dinh Diem.
ALGIERS - Mutinous Berber
troops received ordrs yesterday
to defend the Kabylie mountains
against a possible attack by gov-
ernment forces.
* * *
NEW YORK-Prices on the
New York Stock Exchange fell in
the largest day of trading in two
weeks. The Dow Jones industrial
average for 30 industrials was
down 4.07, 20 railroads down .47,
15 utilities fell .32 and 65 stocks
off 1.10.

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FOLLETT'S

Total personal income for
first seven months of 1963 in
state was $12,064 million, an
crease of 8.9 per cent over
corresponding period in 1962.

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