TUESDAY, NOVEMBER 12, 1963
TILE MICHIGAN DAILY
PAGE' THRE
.. _ _
REJECTS WESTERN OFFER:
Somalia To Get Soviet Arms
Illia
To
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WASHINGTON (R) - Somalia
has informed the United States it
will accept a Soviet arms offer
and has no use for military hard-
ware from the West.
Administration officials said this
decision makes Somalia the num-
ber one Soviet-leaning country in
Africa.
Independent since June, 1960, it
is located on the easternmost tip
of Africa.
Red Advisers
The officials said they were less
disturbed by the Russian weapons
that will reach Somalia, than by
the fact that Mogadishu, the
country's capital, is teeming with
Communist-bloc "advisors."
The city, they said, appears to
have become a stepping stone for
Soviet ambitions on the African
continent.
The Somalia disclosure came
after long months of talks be-
tween United States Envoy Horace
G. Torbert Jr., and the Somali
government. Torbert tried to con-
vince the Somalis that a no-
strings-attached Western offer
was more attractive than the So-
viet proposal.
The United States, Italy and
West Germany, proposed a pack-
age military-assistance program of
$18 million, consisting mainly of
small arms. Moscow offered $30
millioon in arms.
The Somalis are understood to
have asked for more than the
West offered, and questioned the
feasibility of arms coming from
three countries.
The Somali decision is expected
to satisfy neighboring Ethiopia, a
country disturbed by the Western
offer to supply the Somalis with
arms. Emperor Haile Selassie told
President John F. Kennedy here
last month of his concern over
Somalia's claim to Ethiopia's Oga-
den Province and parts of eastern
Kenya.
Kennedy, it is understood, as-
sured the Emperor of United
States support.
The Soviets also are building a
modern air base in Somalia. It is
considered by Washington experts
much larger than justified by
Somali needs.
Oil Agreements;
Negotiaions Fail
By The Associated Press
BUENOS AIRES-United States-Argentine relations sank lower
yesterday with the collapse of a high level Washington effort to
head off a decision to annul American oil contracts in Argentina.
Hardly had Undersecretary of State W. Averell Harriman left
this capital Sunday than the government leaked a communique
announcing the government's "sovereign and irrevocable decision"
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World News
Roundup-
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MWP
By The Associated Press
LEMONT, Ill. - The Atomic
Energy Commission announced
that an experimental reactor
which makes its own nuclear fuel
achieved its first self-sustaining
chain reaction yesterday. The re-
actor is situated near Idaho Falls,
Idaho.
KARACHI-Central Treaty Or-
ganization Nations opened exercise
Midlink Six yesterday in the
Arabian Sea off Karachi. Naval
and air units of Pakistan, Iran,
Turkey, the United States and
Britain are participating.
WASHINGTON-The National
Aeronautics and Space Adminis-
tration postponed indefinitely yes-
terday the launching of the Imp-
A Interplanetary Explorer Satel-
lite on a radiation charting flight.
The agency said ground tests of
the third stage of the Delta launch
vehicle indicated that rocket ex-
haust, after burnout, might cause
a spacecraft contamination prob-
lem.
BONN-The United States and
West Germany agreed yesterday
that the proposed project for a
multilateral nuclear force should
be pushed ahead speedily, the
foreign ministry reported.
The agreement was reached in
talks between United States Un-
dersecretary of State George W.
Ball and Deputy Foreign Minister
Karl Carstens. Foreign Minister
Gerhard Schroeder is away from
Bonn on a Far Eastern tour.
NEW YORK-The stock market
rose arratically yesterday, with
strength exhibited by science is-
sues leading the way. The final
Dow-Jones averages showed 30 in-
dustrials up 2.96, 20 railroads up
1.98, 15 utilities down .02, and 65
selected stocks up 1.29.
to be taken this week.
Harriman Demurs
The communique had been de-
signed as a joint one to be issued
after Harriman completed his
talks with President Arturo Dllia
and other government leaders. But
a high government source said
Harriman "understandably, did
not want to sign."
Illia and Harriman firmly stat-
ed their positions in conversations
Sunday, informed sources report-
ed.
An authoritative United States
source said that "failure by the
Argentine government to act with-
in the concept of the United States
position can harin this climate
for foreign capital and with it
the Alliance for Progress."
To Act Within Law
Argentina has promised to act
within the law. The United States
demands immediate and just com-
pensation if the contracts are an-
nulled.
United States Ambassador Rob-
ert McClintock is known to have
planned a trip to Washington late
this month to report on Illia's new
administration. Now he may be
called home earlier.
In his' successful campaign for
the presidency, Illia assailed the
legality of the foreign oil con-
tracts because then President Ar-
turo Frondizi signed them in 1958
without any action by the Argen-
tine c0ongress. He restated his
views in his inaugural address last
month.
The foreign oil companies, most-
ly American, insist that the con-
tracts were legal and that under
this assumption they have sunk
$397 million since 1958 in develop-
ing Argentina's oil industry.
No Mention of Indemnities
The communique leaked to the
press made no mention of indem-
nifying the oil companies for their
investments. The companies fear
that compensation will be too little
-and late in coming.
The oil dispute put a cloud over
the opening of the Alliance for
Progress ministerial meeting in
Sao Paulo, Brazil. In addition,
Brazil balked at contributing new
machinery to the Alliance for Pro-
gress.
Since Brazil and Argentina are
the two largest Latin American
members of the 20-nation Alliance,
any problems involving them could
jeopardize the future of President
John F. Kennedy's multi-billion-
dollar aid program.
Hard New Look
Purpose of the conference of the
Inter-American Economic and So-
cial Council is to give the alliance
a hard new look-and some fresh
muscles. The alliance has run
into trouble from the dominant
conservative classes in most coun-
tries because their privileges would
be curtailed under the reforms
proposed by Kennedy.
Speaking at the conference, Bra-
zil's President Joao Goulart said
Latin American countries could
solve their economic problems by
themselves through a united front.
He seemed to exclude the United
States.
He claimed that the high cost
of industrial imports and low
prices paid for Latin American
raw materials was a major cause
of financial drain in the area.
Goulart made his heaviest im-
pact on the already-beclouded
opening session, however, by what
he did not say. He did not once
refer to the United States as the
chief supplier of funds to the Al-
liance for Progress, nor to foreign
investment for Latin American de-
velopment.
The United States is represent-
ed by Undersecretary of State W.
Averell Harriman.
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