See Page 4
Seventieth Year of Editorial Freedom
Showers and thundershowers
clearing by early afternoon.
VOL. LX, No. 161
ANN ARBOR, MICHIGAN, TUESDAY, MAY 17, 1960
UN Should Direct Aid
Officials Discuss Budget Plan
By MICHAEL HARRAH
"The single most important thing
about underdeveloped countries is
that only they themselves can
bring about their development into
modern nations," Paul G. Hoff-
man, Managing Director of the
United Nations Special Fund said
He spoke at the Michigan Con-
ference on Economic Development
Gov. G. Mennen Williams also
spoke on regional development in
the Near East.
Hoffman cited a need for "multi-
nation partnership" in the eco-
nomic development of- the world.
This partnership would be a func-
tion of the United Nations..
"In every country, people yearn
for a certain satisfaction from
life," he said.
COMPARING NOTES-Gov. G. Mennen Williams (left) and Paul
Hoffman stop to chat after they spoke yesterday on international
H ain Calls Economic Aid
'Ineffective in Middle East
American economic aid has been "inadequate and relatively in-
effective" in raising living standards in the Middle East, Ambassador
George Hakim of Lebanon said yesterday.
Hakim, who serves as a permanent repre'sentative to the United
Nations, was the first of four foreign envoys to appraise United States
foreign aid at the current International Development Conference.
Hakim said undeveloped countries hal not profited much from
United States foreign aid. "It has been largely due to the efforts of
these nations themselves, with the
help of some important contribut-
Point Four ing factors such as the remarkable
progress of communications; the
1 expansion of world trade, and for-
I,'klat VJII AAT I eeign private investments in certain
11 l1 11 fields."
American foreign aid had fallen
Foreign aid alone cannot bring short of the expectations of the
prosperity to underdeveloped na- countries of the Middle East. "The
tions, Prof. Willard Thorp of the enormity and complexity of the
Amherst College economies de- tasks confronting undeveloped na-
partment said Sunday. tions are not fully realized."
r He gave the opening lecture of Necessary Capital
the Michigan Conference on In- "The necessary capital ... can-
ternational Development, not come, except in small 'part,
' rnd ion Dpiteofe t t from the less advanced countries
And In spite of the fact the themselves, even If their savings
United States can "contribute in themsely eved hir said.s
mjrfashion" to underdeveloped are fully mobilized," Hakim said.
major "hehean o Amderst'slMerd "Neither is enough capital com-
areas, the head of Amherst's Mer- ing from industrialized countries,
Iul Center for Economics said, whether by gift, by loan, or by
.we should not look for more than private investment."
a supporting role in bringing eco- To eliminate mass poverty,
nomic improvement~tO other coun- which now affects two-thirds of
ries. the world's population, Hakim
Speaking on "The Meaning of called for "international coopera-
Point Four," the former assistant tion" on an "unprecedented scale."
secretary of state for economic "To my mind, the problem of
affairs added "the successes will undevelopment is too vast to be
be theirs and the failures will be capable of solution by present con-
theirs. The obstacles are all with- ceptions and methods. American
in the country." economic aid, though substantial,
He discussed the history of the does not come anywhere near pro-
Point Four program which began viding a solution."
in 1949 when former President Second Speaker
Harry S. Truman called for a The second speaker was Am-
"bold new program to assist the bassador W. M. Q. Halm of the
underdeveloped nations of the newly-created nation of Ghana
world triumph against their an- who said the incentives offered by
emies-hunger, misery and de- his own government have attracted
spair," $90 million worth of foreign in-
However, it was sixteen months vestment.
before the final form of the pro- He said the capital came from
gram emerged, for "at the time of private sources in countries such
the inaugural there was no spec- as the United States, Great Brit-
ificity. ain, Sweden and Australia.
"Like Lend-Lease and the Mar- Halm pointed to tax relief for
shall Plan, the program was an- pioneer industries, lowered import
nounced in terms of objectives duties, guarantees against expro-
See THORP, page 2 priations and provision of sites and
___________________________services as the attractive features
FrIeomy He noted that over 90 per cent
of Ghana's income is generated
from purely domestic activities,
M arch Speech with the prominent cocoa industry
comprising about 60 per cent of
et Sa So to achieve a more balanced
economy, Ghana has begun a ma-
A "Freedom Day" march in jor effort to diversify its agricul-
commemoration of the 1954 Su- ture, increase liberal production
preme Court decision on school and accelerate industrial activity.
"Out of these yearnings can
come a better world, if exploited
correctly. But if these yearnings1
are ignored, only tension and un-
rest can result.
"It is our function to see that
these yearnings are channeled
"The underlying reason for
underdevelopment is underutiliza-
tion. These countries have the
resources available to them to
provide a prosperous comfortable
life. The difficulty lies in the fact
that they do not have the techni-
cal knowledge to exploit them."
Hoffman said there is one great
lesson the underdeveloped coun-
tries must learn: Concentration
on the goal of economic develop-
ment as a goal well worth, achiev-
He added economic aid has been
misdirected because of the "mis-
taken concept that it could and
should be used to win friends and
"If you want the most for your
money, economic aid has to be
channeled multinationally, through
an objective body.
"The main objective of the
United Nations Special Fund is
to assist member nations in estab-
lishing what their resources are
and to assist in training their
people to exploit them in a profit-
In this regard, he said, the
United States must "turn our
backs on paternalism toward other
nations." We must have a part-
nership between nations, to aid
international development. This is
good business-not charity."
Hoffman said the unsponsored
program is "costly," but he went
on to say that he felt that "we
the people of the more advanced
countries can well afford to make
this relatively small investment
in the creation of a more peaceful
and prosperous, a more dynamic
and exciting world for the chil-
dren of future generations."
Following Hoffman, Williams
spoke briefly on the fallacies of
the present American foreign pol-
He called the policy "ambiva-
lent," saying that the state de-
partment was torn between the
traditional dedication to human
dignity and the present drag to
the status quo.
"We have drifted well over to-
ward the status quo, as a result,
for it is a position of expediency,"
ht said. "Our fear of thehRussian
bear has blinded us to the needs
of the very problems we wanted to
The Conference on Interna-
tional Development will con-
tinue today with:
1) Round - table discussions
on "Aims, Techniques and Limi-
tations of International Assist-
ance" at 9 a.m.
2) Lectures on "How Eco-
nomic Aid Looks to Recipient
Nations" by Ambassador B. K.
Nehru, Indian commissioner
general for economic affairs,
and Israeli Ambassador Avra-
ham Harman at 1:15 p.m. in
the League Ballroom.
3) Reports from the morning
round-tables at 3:30 p.m. in
Rackham Lecture Hall.
By SUSAN FARRELL
"I don't think there is any ques-
tion in the Legislature about the
University's needs," Vice-President
for Business and Finance Wilbur
K. Pierpont said recently.
"It's more a question of their
not having money to fill them."
The record $108 million higher
education appropriation passed by
the Legislature last week included
$35.2 million for the University.
But this amount, $5 million less
than requested, fails to meet the
"minimum needs of the Univer-
sity," President Harlan Hatcher
Faculty and staff salaries are
the most important area in which
the University will suffer because
of the inadequate appropriation
Vice-President and Dean of Fac-
ulties, Marvin L. Niehuss said.
The University asked for a nine
percent increase in faculty salar-
ies and did not receive it.
The legislative appropriation
also failed to provide for expan-
sion in staff necessary for in-
creasing enrollments, Niehuss said.
"Serious arrears in maintenance
of the plant" and a need for in-
creased appropriations to provide
additional books and library serv-
ice were also unsolved by the re-
cently passed education bill.
"Two years ago all University
expenditures except faculty salar-
ies were cut roughly ten percent,"
Niehuss said. "We still haven't
made that up.
"At that time we increased fac-
ulty salaries by reducing every-
thing else, including supplies, re-
search facilities and custodial
staff. We can't do it again.
"The amount we will have for
operation this year will depend on
whether or not we are able to
supplement the legislature appro-
priation with fee increases."
(The proposed fee increases for
both instate and outstate students
will be discussed at Friday's Reg-
An item-by-item breakdown of
the budget is being drawn up at
present and will go to the Regents
some time in June for their con-
sideration and approval, Admin-
istrative Dean Robert Williams
The $19 million capital outlay
program, approved the.same time
as the budget, includes $7 million
for University construction.
One and one half million dollars
are earmarked for a new cyclo-
tron laboratory, with the balance
for the planned Physics-Astrono-
(A federal appropriation for the
cyclotron itself is presently under
consideration by the House of
committee in Washington.)
A new music 'school building,
given top priority in the Univer-
sity's request, a fluids engineering
building planned for North Cam-
put and the second unit .of the
medical science building were not
included in the bill and will be
submitted to the Legislature for
consideration again next year,
Plans for the construction of the
cyclotron laboratory are "com-_
Boils to End
Ike's Trip Invitation
In Angry Exchange
pletely ready to let out for con-
struction bids," he added.
Plans for the other buildings
approved by the Legislature will
be drawn up immediately.
The Legislature also approved
a $975,000 bond issue for the
planned addition to the Student
The addition will be financed by
student funds, but law requires
the Legislature to approve all Uni-
versity self-liquidating projects.
"We share the disappointment
of the entire University about the
budget," Vice-President and head
of Dearborn Center William Stir-
"We would like to strengthen
our library and provide more ex-
tensive staff counseling and a
greater breadth of selection in our
liberal arts program," he explained.
Not in Hurry,
Red Leader Aims
To Build Advantage
By MICHAEL BURNS
There are two possible reasons
for Soviet Premier Nikita S. Khru-
shchev's angry termination of the
summit talks, Prof. J. David Sing-
er of the political science depart-
One is that Khrushchev has
gained favorable results from his
propaganda efforts on the recent
United States spy plane incident,
so he feels "a few more weeks
won't do any harm" to his con-
He may be trying "to build up
such an advantage" that Western
leaders will be "impatient" to hold
a summit meeting with him.
Another reason may be Khru-
shchev actually feels the Western
powers are belligerent and is ex-
pressing "righteous, indignation."
Khrushchev wants a summit
meeting badly, Prof. Singer said,.
and he will probably turn around
and ask for another conference,
striving for peace at all costs.'He
will criticize the United States for
its poor intentions.
Prof. Singer called the Soviet
move politically smart in the short
run but that his moves may even-
tually "bring the roof down on
everyone." He called Khrushchev
"irresponsible" in his actions.
"The whole incident magnifi-
cantly illustrates the utter futility
of diplomacy whether it be quiet
or open diplomacy," on the ambas-
sadorial or summit levels. Diplo-
macy cannot be expected to bring
results, Prof. Singer said.
Khrushchev's actions may be
due to influences in Russia from
tiha tn tnr~ nfficials_ he raid.
EISENHOWER LEAVES-The President, shown shaking hands with French premier Michel Debre
leaves the Elysee Palace after yesterday's unsuccessful summit session in Paris. French president
Charles de Gaulle Is shown center.
PROF. PEEK SPEAKS:
Calls '60 Issues 'Short-Run'
By MAME JACKSON,
"The Function of a political cam-
paign is to get votes-not to dis-
cuss issues." Prof. George Peek of
the political science .department
He spoke to Theta Sigma Phi,
women's journalism society.
The significant political issues
which will dominate the 1960 cam-
paign are designed "primarily to
solve short-run problems, and they
leave the more fundamental, long-
range problems unsolved," Prof.
None of them are directly con-
cerned with the "two major chal-
lenges facing the United States;
today - the prosperity challenge!
and the challenge of American aid
to underdeveloped countries..
"Over the past ten years United
States private income and con-
sumption rates have risen sharply.
During this same period, propor-
tionately less of the gross national
product has been spent for public
affairs uch as education, welfare
"Relative to the economic
oner Lop paruy wlil, Ghal. trc A.V V~au"-
DRAMA SEASON PLAY:f
olden Fleecing To Star David Wayne
"The Golden Fleecing," starring
David Wayne, will open today at
Lydia Mendelssohn Theatre as the
second of five Drama Season pro-
Called an "excursion into hilar-
, 4 ity" by a New York critic, the
~ 'V4farce is the story of a group of
; } :. >: ;.:" .:": :. ." " ' k sailors stationed in Venice who,
with the aid of an electronic brain,
set out to break the bank of a
-fI° Lorenzo Semple, Jr., is the au-
thor of the la
Featured roles in the comedy
.s will be taken by Wayne, Larry
;1':" :4Hagman, Monica Lovett, Donna
:: . . "_ " rPearson and two, members of the
growth of the country, taxes have
been going down. The United
States has subsequently come to
grips with the problems of pov-
The greatest external challenge
that faces the United States to-
day is not that of a big war, Prof.
Peek contended. Rather it is the
effective development of under-
developed nations. "It is much
more important to keep deprived
people from starving than it is
to get a man into space."
Prof. Peek said the political ra-
tionale for not discussing these
two major issues in the coming
campaign is that the solution to
both problems rnecesstates in-
creased taxation; this is not a
method of achieving party sup-
If we don't face up to these
problems in the near future, he
predicted, "the United States may
become the only country in history
which possessed the resources and
the knowledge to maintain pros-
perous co-existance and didn't be-
cause of political mis-direction.
Defining the issues to be de-
bated in the 1960 election, Prof.
Peek cited international, defense
as one of the major problems.
"While both parties' positions im-
ply increased taxation, the Demo-
crats advocate additional spend-
ing for missiles and army flexi-
bility and the Republican party
feels that present missile financ-
ing is adequate."
*PARIS W--Prime Minister Har-
old Macmillan was striving des-
perately yesterday to revive the
collapsed summit conference.
The conference boiled to an
angry end over a blaze of Soviet-
One thing was sure: President
Dwight D. Eisenhower's June visit
to the Soviet Union is off.
On his initial efforts last night,
Macmillan failed in a talk lasting
an hour and 35 minutes to placate
Soviet Premier Nikita S. Khrush-
But the British said contact is
being maintained with the Rus-
sians on the off chance that the
breach could be healed.
Expected To Confer
Macmillan and Khrushchev are
expected to confer again today.
(The Soviet news agency Tass
in reporting the Khrushchev-Mac-
millan meeting, said "a friendly
conversation took place" but gave
Eisenhower, described as impas-
sively sitting through Khrush-
chev's summit tirades over the
U2 spy plane episode, and then
letting his fury show later in pri-
See Interpretive Story, Page 3
vate at the American embassy res-
idence, was understood to be
awaiting the outcome of Mac-
The fourth summit principal,
the host President Charles de
Gaulle, was filled in as was Eis-
enhower on Macmillan's report of
the Soviet mood.
Turns To Debacle
The Big Four meeting turned
into a debacle at the outset in a
bitter trading of cold war blasts
between Khrushchev and Eisen-
The Macmillan - Khrushchev
meeting broke up 15 minutes be-
fore midnight without an agree-
ment for the Big Four to come
together again. Although main-
taining contact, the British were
gloomy and held out but slim
In the opening summit round
Khrushchev bitterly declared he
could not negotiate now unless
Eisenhower apologized for the
plane incident. He withdrew the
invitation for the President to
visit Russia nevt month.
Outside the conference Eisen-
hower angrily accused Khrush-
chev of insulting the United