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October 18, 1963 - Image 3

Resource type:
The Michigan Daily, 1963-10-18

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U.S. Economic Time Bomb Tic

{ SAIGON, Viet Nam MIP-The
United States has lighted the. fuse
of an economic time bomb under
President Ngo Dinh Diem's regime,
but the bomb may never go off.
Since Aug. 21, America has halt-
ed its commercial import program,
at least partly to show indignation
over the smashing of Buddhist
pagodas by government police that
The program represents about
half the total economic aid the
United States pours into South
Viet Nam. Indirectly it pays about
70 per cent of the defense budget:
Could End Regime
If the Saigon government starts
dipping into dollar reserves to
offset the loss of American aid,
the nation will exhaust those re-
serves in about one year, United
States Aid Mission officials es-
timate. This could mean a general
economic collapse, and possibly
the end of the Diem gover ent.
Whether the aid program will
be resumed is largely up to Presi-
dent John F. Kennedy. It has not
formally ended. United States of-
Pope Appeals
For New Unity
By The Associated Press
VATICAN CITY - Addressing
non-Catholics Pope Paul VI last
night apealed to all Christians
seeking unity to turn their backs
on the past and look to the future.
The Pope made his appeal at his
first audience for the group of 66
Protestant, Anglican and Ortho-
dox observers from 22 churches at-
tending the Vatican Ecumenical
His expression of hopes for
Christian unity climaxed. a day'
in which a document aimed at
ending anti-Semitism was reported
ready for presentation to the,

ficials say it has been suspended
pending a policy review:; In the
meantimre,' a pipeline carrying
more than $100 million annually
to Viet Nam has been clogged in
an effort to bring pressure on the
Diem government to make political
Ambassador Henry Cabot feels
the purely military aspects of the
war with the Communists are now
less important than other factors,
mostly political in character. Eco-
nomic aid is one lever America has
in bringing about changes.:
Claim Would Revolt
Some Vietnamese opposition
leaders have said that if only
America would stop sending aid to
the Diem government, military
leaders would carry out a coup and
set up a new government.
"If that were true," Lodge said
this week, "I think we would have
seen something after the commer-
cial import program was stopped
in August. So far, nothing has
"Furthermore, I think a coup
right now is unlikely. It will re-
main to be seen what effect the
cut will have. It is not our trump
card, but I don't know at this
point what other move we might
Increase Since Aid Cut
Surprisingly, South Viet Nam's
foreign exchange reserve, which
now stands at $168 million, has
actually increased since the United
States aid cut. The nation has
sold rice and other commodities.
to fill the treasury. Experts say
this trend cannot continue.
In theory, the. economic pres-
sure should become intense soon.
But American economists say the
lever is bound to be less than, 100
per cent effective.
"For one thing," an economist
said, "it depends on what other
nations may do. Japan and France,
to name a couple, may decide to
kick in some aid here.
"In a wartime pinch, the Viet-

Off Talks
Reo pens
K1R. in m*.*t
kig Call Tinjoub
Enemy Goal
Ben Bella To Fight,
Cancels UN Trip
By The Associated Press
ALGIERS-Violent new fighting
was reported yesterday in the un-
declared desert war between Al-
geria and Morocco and peace talks
were suspended.
Algerian negotiator M'hammed
Yazid flew back to Algiers from
Marrakech, Morocco, to report to
President Ahmed Ben Bella. Moves
toward a cease-fire had fizzled.
Algerian officials claimed more
than 100,Q00 have reported for
military duty in the past 36 hours,
including Ben Bella himself and
ABOT LODGE most of the deputies in the Alger-
olitical factors ian National Assembly.
Cancel Trips
Ben Bella and Foreign Minister
ment can always Abdel Aziz Bouteflika, who had
astres (currency)- been scheduled to leave Friday for
be worth anything New York to attend the UN Gen-
ey still can be used eral Assembly meeting, called off
aries and running their trip.
The official Algerian news agen-
e main American cy asserted Morocco now has
ychological. South 10,000 troops in the battle area.
well as a lot of They have used rockets against
allies, knows per- outnumbered Algerians around the
tthe United States Sahara outposts of Hassibeida and
us stake here. We Tindioub, about 900 miles south-
country go to the west of Algiers.
id, without Ameri- The agency said the Algerian
uld. This is their defenders three back all the at-
ad it's an effective tacks. It named Tindouf-an im-
certain America is portant mining center near the
ite off its nose to borders of Mauretania-as the
ultimate objective of the Moroc-
can troops. The town is about 200
miles southwest of the combat
enarts zone.

King Faces Setbacks
In Rights Movement
ATLANTA-Rev. Martin Luther King Jr., a leader in the direct
action movement against segregation, said today the summer's dem-
onstrations had produced some resentment among white Northerners
and brought a temporary setback to his movement.
"Demonstrations in such cities as New York and Chicago arouse
the ire of many persons in the North," King said. "But the Negro
revolution has revealed to many persons in the North that they had
more deep-seated prejudices than


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... vital p
namese govern
print more Pi
They may not
abroad, but the;
for paying sal
the country.
"Finally. th
weakness is ps
Viet Nam, as
America's other
fectly well that
has an enormo
can't let thisc
Communists an(
can aid, it wo
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not going to b
spite its face."
Nhjj R

they realized," he commented.
"And we can never have meaning-
ful integration' until these preju-
dices are realized and discarded."
Temporary Set-Back
King was asked if this negative
reaction outside the South por-
tended the throttling of his eight-
year fight against segregation. He
"This is a kind of temporary
setback necessary to make the
journey ahead. If it had not come
now, it would have come at some
other time. Our only reaction is to
move steadily forward."
King said he was not discour-
aged with the over-all civil rights
Issues in Open
"I am encouraged by the fact
that we are moving issues out in
the open," he said. "It may well
be that we are now in that dark-
est moment before the dawn."
King said there named factors
working in favor of his efforts:
"The growing industrialization
of the South has brought recog-
nition by young Southern white
businessmen of the adverse effect
of bigotry on the economy.
Public Opinion
"The rolling tide of public opin-
ion will force the federal govern-
ment to take a strong stand.
"Also the new determination of
the Negro himself is the most en-
couraging factor-even in the
rural areas," King said.
King said there has been a good
reaction generally from churches.
"Out of this situation, the church
has come to see its role in the
struggle . .. The church has the
responsibility and the moral and
ethical resources to help people
remove the barriers of prejudice,
misunderstanding and ignorance
which prevent us from having a
thoroughly integrated society."
Birmingham Strategic
King said he believed there was
a chance that racial issues could
be worked out in Birmingham, Ala.
He conceded the importance of
that city to his movement.
"Frankly, I think Birmingham
stands out as a great watershed-in
the civil rights revolution," he said.
"I am convinced it would hurt the
*whole movement if we failed to
emerge from Birmingham with a
clear-cut victory."
King claimed he had no desire to
hamper local efforts at agreement
in Birmingham. "I feel the need of
staying close to the situation, yet
I want to give the city leaders the
freedom to negotiate."
King said his return to Birming-
ham also would refute criticism
that he went into a community
only to stir up trouble and then

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... northern resentment
Dillon Hits
Treasury Secretary C. Douglas
Dillon yesterday rejected a pro-
posal which would permit parents
of college students a tax deduc-
tion for costs of college fees.
Dillon claimed the proposal
would be discriminatory because
it would provide tax savings only
for those parents who can afford
to send their children to college.
He predicted a tax deduction, fur-
ther, would not help send any
more people to college.
But Sen. Abraham Ribicoff (D-
Conn) took issue with Dillon. He
pointed out that the Kennedy ad-
ministration had last year pushed
a bill through Congress to give
business a special tax deduction
for money invested in new plants
and equipment.
Deduction for Research
In addition, the administration
this year sought special tax de-
ductions for business research and
"Isn't a tax credit for a "college
education just as important as a
tax credit to business for new
plans and equipment?" Ribicoff
asked at a Senate finance com-
mittee meeting on Kennedy's $11
billion tax reduction bill.
"The bulk of these reductions
would go to families with incomes
of more than $10,000 yearly," Dil-
lon argued.
"But that is true of all tax
deductions," Ribicoff said.

Circle in the Square of New York
SAT . "6 Characters in Search of an
OT. Author"-Pirandello-3:60 P.M.
6th Under Milkwood-Thoms-8:30. P.M.


1 IXX" 1 ll* A
CIA Prodding
Of Buddhists
By The Associated Press
SAIGON, Viet Nam-Ngo Dinh
Nhu, powerful brother of South
Viet Nam's President, said yester-
day Buddhists under interrogation
have identified Central Intelli-
gence Agents and other Americans
who constantly prodded them to
attempt to overthrow the govern-
Nhu said CIA agents "may have
receivedorders to do it against
their will."
Nhu told a group of visiting for-
eign correspondents at Gia Long
Palace, "One thing I don't under-
stanid is why some CIA agents
were involved in the Buddhist af-
Meanwhile, the chairman of a
UN fact-finding team formed to
check charges of religious per-
secution in South Viet Nam yes-
terday appealed for a halt in
demonstrations during the UN
Ambassador Abdul Rahman
Pazhwak of Afghanistan, chair-
man of the seven-nation mission,
issued the plea in announcing that
the UN team will leave for Siagon

Claims Agreed
Morocco's Information Minister,
Abdelhadi Boutaleb, had told
newsmen yesterday in Marrakech
an agreement for a cease-fire was
reached with an Algerian delega-
tion headed, by Yazid..
But Yazid later contradicted
him. The Algerian envoy told
newsmen "we have not found a
Hopes raised by Boutaleb's pre-
vious announcement were damp-
ened when the hourly newscast of
the state-run Algiers radio ignor-
ed it. The radio lost no time, how-
ever in reporting Yazid's an-
nounce of no progress.
Step Up Campaign
The Algiers radio and the gov-
ernment-controlled press stepped
up their violent campaign of ac-
cusations and abuse against King
Hassan II and other Moroccan
The radio station urged the
Moroccan people to "throw off the
yoke of their feudal masters."
Meanwhile, Moroccan military
officers at Marrakech told news-
men the fighting was spreading
north and south of the two posts.
A Moroccan colonel claimed, "We
are holding every inch of our ter-
ritory under heavy fire."
Algerians at Colomb Bechar, an
Algerian military base 250 miles
northeast of the combat zone, said
Algerians held both Hassi-Beida
and Tinjoub.

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World News Roundunp
By The Associated Press
BRUSSELS, Belgium-The United States is going to help the
European Common Market Nations build another nuclear power
plant. The Common Market atomic pool (EURATOM) signed a
contract with a French-Belgian company to erect a nuclear power
plant at Chooz, Belgium with United States scientific, technical and
financial help.


Michigan Union Ballroom
SUNDAY, October 20
2:30 P.M. and 8:30 P.M.
Tickets available at:

An Agency Representative will interview undergraduate Seniors and
Graduate students who terminate their studies in June, August or
September 1964 on Campus on the dates of October 21 through 23,
1963 at the Bureau of Appointments, 3200 Student Activities Build-
ing; and on October 24 and 25, 1963 at the Offices of the Director of
Placement, School of Business Administration. Employment opportuni-
ties are diversified to include a special training program in the Intelli-
gence profession.
Please consult the Placement Bureau appropriate to your curriculum for
information concerning the career positions available. Suc~h information
is, likewise, available at the Office of the Career Counselor, 3200 Stu-
dent Activities Building. A careful review of this information is an
essential requisite prior to scheduling on interview.

CAPE CANAVERAL-Three new United
designed to detect nuclear explosions in outer
hitchhiker to measure radiation-
were launched yesterday.
WASHINGTON-President Tito
of Communist Yugoslavia was
given a red-carpet welcome to the
White House today-six years aft-
er a similar event was, planned,
then canceled because' of mass
HELSINKI - President Urho
Kekkoen has ended six weeks of
government crisis in Finland by
refusing to accept the resignation
of Premier Ahti Karjalainen's co-
alition cabinet. The premier asked
for permission to resign Aug. 30
when three Social Democrats min-
isters resigned from the coalition.
MANAGUA, Nicaragua - Stu-
dents at Managua's National and
Catholic Universities went on
strike today, claiming that stu-
dents engaged in guerrilla activi-
ties against the northern govern-
ment had been shot after being
captured. The national guard de-
nied the shootings, but student
leaders said they had proof.
NEW YORK-The New York
Stock Exchange made solid ad-
vances yesterday as trading reach-
ed its highest peak in nearly six
weeks. Dow Jones averages showed
30 industrials up 2.32, 20 railroads
up 1.19, 15 utilities up 0.51 and 65
stocks up 0.71.

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