ihee Offers Resignation, New National Elections DEMONSTRATORS-Korean police used fire hoses to control rioters in earlier stages of the rioting. They have been ordered, on penalty of court-martial, not to fire on the anti-Rhee demonstrators. CHALLENGES WEST : Khrushchev Threatens Access to Berlin e+ , MOSCOW M - Premier Nikita S. Khrushchev told the Western powers yesterday they either must sign a peace treaty with Com- munist East Germany or "forfeit the right of access to West Berlin by land, water and air." The Soviet leader referred to West Berlin as "territorially an inalienable part of the German Democratic Republic.' The United States challenges this, pointing to, agreements signed toward the end of World War II setting Berlin apart from occupation zones of the four powers. Khrushchev addressed the Su- preme Soviet (parliament) of the Azerbaijan Soviet Republic, to frequent bursts of loud applause. The occasion was the 40th anni- versary of establishment of So- viet Power in Azerbaijan. It was Khrushchev's first major address since he returned early this month from France. Began Discussion The Soviet leader began his dis- cussion of international affairs by saying his trips abroad, particu- larly to the United States last September, contributed to the re- laxation of tensions, and he added he thought the process of relaxa- tion would continue. He said he would go to the Summit Meeting, opening May 16 in Paris, "with the most sincere determination not only to contri- bute to overall improvement of the international situation, but also to do everything toward reaching understanding with the heads of state and government of the Western Powers and secure some progress in solving problems which are knocking at the door." Major Problem Khrushchev said disarmament would be the major problem. The question of Germany and Berlin! he listed second. East-West rela- tions next, and nuclear weapons tests fourth. On disarmament, Khrushchev claimed the proposals made by the west during the 10-nation dis- armament committee meeting in Geneva were designed not for dis- armament, "but to introduce con- trol without disarmament." "The Soviet Union will uphold its position to the end in order to secure the solution of the disarm- ament problem," Khrushchev said. "Disarmament is the root problem on which depends the elimination of the threat of a new war. We cannot and will not agree to con- trol being substituted for disarm- ament. Living Costs Set Record WASHINGTON M)-Rising food prices pushed the nation's living cost to a new record in March. The forecast is for a continu- ing gradual uptrend. The labor department reported today its consumer price index rose one-tenth of 1 per cent be- tween February and March. This put the index at 125.7 per cent of the 1947-49 average, high- est point in history. Prices are running 1.6 per cent above a year ago. The increase is sufficient to boost pay rates of more than 800,- 000 railroad workers by a penny an hour on a six-month living cost adjustment. No pay change is required for 320,000 electrical and aircraft industry"workers based on a quarterly adjustment. Arnold Chase, labor department' price chief, said food prices are expected to continue rising sea- onally through July or August, this pointing toward still higher cost-of-living marks. Noisy Mobs Demonstrate Continuously Statement Follows Third U.S. Protest SEOUL (-President Syngman Rhee, $5-year-old father of his country, has offered to resign and permit new presidential elections, Seoul's martial law command an- nounced yesterday. The announcement was issued as a milling, shouting mob of many thousands jammed down- town Seoul in menacing anti- government gestures. The demonstrations began at dusk Monday and went on noisily through the night and day. One person was killed and 21 were injured Sunday. The announcement Rhee would quit if the people want him to fol- lowed a third strong United States statement proposing that Rhee speed action on "justifiable griev- ances" of the Korean people. Calls On Koreans The statement, issued by the United States embassy, called on Koreans to support efforts to re- store order but said, "there is an equally deep obligation on the part of the authorities to take immed- iate adequate action to meet just- ifiable grievances." "This is no time for temporiz- ing," the embassy said, adding it was "watching with deepening concern the anguish of this na- tion." The martial law's command quoted Rhee as saying "since the March 15 elections are said to have been greatly fraudulent, there will be new elections called." To Resign "If the people want, I (Rhee) will resign from the presidency," the statement broadcast by the government radio said. This promise followed his de- cision Sunday to sever himself from his ruling Liberal party. The party is blamed for alleged frauds and strong arm tactics in the election that returned Rhee to a four-year term. In the election, Rhee's running mate and alleged election rigger, Lee K-Pong, was chosen vice- president. Young.Koreans, unappeased by Rhee's move to quit partisan poli- tics, dismissal of his old Liberal cabinet and first steps in choos- ing a new independent govern ment, defied martial law and troops in the renewed demonstra- tions. March In Streets Antigovernment forces marched tht streets from Monday evening into daylight Tuesday-and push- ed against cordons of soldiers who were under orders to hold their fire. An 18-year-old high school boy demonstrator was killed in the turmoil. Seoul National Hospital said he had been shot through the head. Confirmed but unofficial re- ports listed 21 wounded. Heedless of troop reinforce- ments and tanks pouring into Seoul, mobs were fepelled twice by gunfire when they tried to break into the home of Vice-Presi- dent Lee Ki-Pong, who is accused of rigging the national elections last March 15. Martial law headquarters im- plied the shots were fired by police. Sidestep Williams' Proposal The Democratic State Central Committee voted Sunday not to take a stand on the proposed No- vember vote on a constitutional convention. The decision ignored the appeal by Gov. G. Mennen Williams for support of the measure. Williams had been the first to sign a peti- tion circulated by the League of Women Voters and much of the Junior Chamber of Commerce call- ing for constitutional reform. State AFL-CIO president August Scholle had been soft-pedaling the constitution issue for weeks, while the Governor and State Demo- cratic Chairman Neil Staebler pre- dicted its support by the Party. Candidates, however, are some- what in support of the convention proposal being included in their campaign. Bagwell Supports Paul D. Bagwell, 1958 GOP gu- bernatorial nominee, has been in support of the measure for two years, and the Republican State Central Committee has pledged its support to reform the old constitu- tion. Both Secretary of State James M. Hare and Lt. Gov. John B. Swainson are also supporting the measure in their campaigns to re- place Williams. Romney Speaks Meanwhile George Romney, president of American Motors and head of the Citizens for Michigan organization, said that the CFM has failed to create the hoped for enthusiasm. He said, however, that he felt that the basic idea and approach of CFM was needed in Michigan, but that he had not anticipated the apathy that the organization had encountered. The directors of CFM voted to establish the organization's posi- tion on the constitutional conven- tion by submitting a recommenda- tion to local chapters to support it. Chinia, India Still Dispute NEW DELHI (P)-India and Red China have failed to settle their dispute over 51,000 square miles of Himalayan borderlands. But a joint communique yester- day said Premier Chou En-lai and Prime Minister Jawaharlal Nehru agreed that officials of their gov- ernments should meet from June through September to examine all documents bearing on the dis- pute. And Chou told a news confer- ence Red China will respect the McMahon line marking the fron- tiers of Tibet and Northeast India. "The so-called McMahon line is completely unacceptable to China," Chou said, "but we are willing to maintain the present status in that sector. We will not cross that line." In return, he added, he wants India to recognize Red China's claim to 15,000 square miles in the Ladakh section of Kashmir in the Northwest, but "the govern- ment of India is not entirely agreed to this." FORENSIC MICHIGAN GUILD Varsity Debate "REDUCE SUPREME COURT POWER" MICHIGAN Women Debaters versus WISCONSIN Women Debaters Rackham APRIL Ampitheater 26 7:30 P.M. TUESDAY . , THE MICHIGAN DAILY '- Business Staff~... "- provides #-- valuable experience in LAYOUT JOIN NOW! 1- r irk i CALLNG SENIOR WOMEN Like to get in on the ground floor and stay there? Sorry, we can't help you. But we do have lots of room for first-rate seniors who want to get places fast in the communications industry. Seniors with a flair for science, engineering, business, account- -- iv 1Ws Y1.. H i' . 'M . 1 2Y - AM-. 'M 1 T M A I