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November 18, 1959 - Image 3

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Publication:
The Michigan Daily, 1959-11-18

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-.

Secretary Calls

on Allies
rd Areas

To

Aid

Backwa

V

Herter Says,
'Time Here'
For Sport
Speaks to Legislators
Of NATO Countries
WASHNIGTON (M) - Secretary
of State Christian A. Herter yes-
terday told this country's Euro-
pean allies "the time has come"
for them to shoulder more of the
burden of aiding underdeveloped
areas.
Herter spoke out on what he
called "this critical area of world
leadership" in a speech before
legislators representing the North
Atlantic pact countries.
He pledged the United States
would continue to carry a fair1
share of the economic burden
while also providing weapons an d
r dollars for military defenses
against Russia.
"We . . . believe the time has
come for other prosperous indus-
trial nations to share more fully
in the responsibility for assisting
the developing areas of the world
in their efforts at economic ad-
vancement," he said.
Called 'Critical'
"This is, perhaps, the ost re-
ative and critical area of world
leadership today."
Herter's carefully prepare d
speech foreshadowed a deter-
mined campaign by the Eisenhow-
er administration to persuade
prosperous European nations, as
well as Japan, Canada, Australia
and New Zealand, to step up sub-
stantially their spending in Africa
and Asia.
At present, these nations are
giving about $1.3 billion annually
in such help. Ninety per cent of
this, however, goes to their own
overseas territories.
Top administration officials be-
lieve these countries could add
perhaps a half a billion dollars
more to such programs without
strain.
Avoids Names
Herter avoided naming any
countries he feels could do more
in this field. He stressed the need
for all West European nations to
show more leadership in the over-
all drive to improve the econom-
ic and military strength of the
free world.
The main targets of Herter's
words are believed to be West
Germany, Britain, Italy, Japan,
Belgium, the Netherlands, Switz-
erland and Sweden. "
Most United States authorities
believe that France, now provid-
ing some $7.5 million yearly of
such assistance, can be expected
to add very little to this total.
Asks Emphasis
Herter also called for continu-
ing emphasis on joint defense
measures until Soviet Premier Ni-
kita S. Khrushchev backs up with
° specific deeds his promises to
President Eisenhower to ease ten-
sions.
"As an aftermath of the
Khrushchev visit, there does ap-
pear to be a greater willingness on
the part of the Soviet Union to
discuss problems frankly," he
said, adding:
"the degree, if any, of Soviet
willingness to reach reasonable
solutions to outstanding problems
will not be disclosed until furth-
er discussion takes place."
In reply to questions afterward,
Herter predicted that a firm date
for an East-West Summit meeting
would be fixed by Dec. 19.
On that day President Eisen-
hower is due in Paris to begin a
Western pre-Summit strategy con-
ference with French, British and

West German leaders. Herter said
the East-West parley would begin
after Khrushchev's visit to France,
which is scheduled for March 15.

EXPANDING CANADA - Resorts like this in te Laurentian Mountains are shrinking in econ-
omic importance as Canada exploits-more of her wealth of natural resources, particularly uranium
and oil.
Canada Fears Reliance on U.S.

By TOM HENSHAW
Associated Press Newsfeatures Writer
OTTAWA OP) - Canada, aglow
with prosperity and a newfound
sense of independence, has the
uneasy feeling it is becoming a
colony again-an economic colony=
of the United States.
Canadians have a vague suspi-
cion that the long arm of the
British Parliament, fully with-
drawn for only a decade, is being
replaced by the even longer arm
of the American dollar.
They have a fear that they are
not going to be allowed to partici-
pate as much as they would like
in the development of their own
vast stores of newly discovered
mineral wealth.
Cold War Link
And there's the realization that
their future in the cold war is tied
irrevocably to that of a neighbor-
giant who at times seems inclined
to ignore a partner's needs and
wishes.
"We're not anti " American,"
Prime Minister John G. Diefen-
baker says. "And we welcome for-
eign investment. But we'd like to
see Canadian subsidiaries run by
Canadians in competition with
firms in the United States.
"And we'd like to see Western
defense built on something besides
military pacts. After all, we are in
economic competition with the
Russians, too. You can't hold an
organization like NATO together
on fear alone."
Post-War Boom
To understand the Canadian
point of view, one must first un-
derstand what has happened there
since World War II.
Canada came out of the war
with the fourth largest air force in
the world. This for a nation of
then only 11 million people with
a hand still clutching the apron
strings of a mother country.
It was accepted without question.
as a charter member of the United
Nations. Less than 30 years before,
membership in the League of Na-
tioins had been opposed as merely
another vote for Britain.
Couldn't Amend
The constitution of Canada is
the British North American Act of
1867, which spells out the legis-
lative authority of the Canadian
Parliament. It was not until 1949
that Canadians gained the right
to amend their own constitution.
Along with independence came
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the almost explosive development
of newly discovered mineral wealth
-strategic metals like nickel, iron
and uranium; and that most im-
portant of-mineral fuels, oil.
Canada leads the world in the
"production of nickel, a vital alloy
in steelmaking. Three out of every,
five pounds of nickel produced in
the free world in 1957 came from
a single Canadian operation, the
International Nickel Co. mines in
Sudbury, Ont.
Continue Search
And still the hunt goes on, par-
ticularly in the great expanse of
the northwest territories.
"There are about 12,000 active
mineral claims in the Mackenzie
district alone," Frank McCall, re-
gional administrator at Yellow-
knife, N.W.T., says. "We expect to
record 3,000 more this year."
"Never in the hostory of Canada
has there been such a concentra-
tion of men and machines engaged
in an investigation to advance the
economic strength of our north-
land," Alvin Hamilton, minister of
northern affairs and, national re-
sources, says.
The most sought-after prize cur-
rently is oil. Last summer a brand
new field was uncovered in the
Yukon territory, about 200 miles
from the gold rush town of Daw-
son. The barren islands of the
Arctic Archipelago also are under-
going close scrutiny.
Closer Source
"The Middle East and Venezu-
ela, Europe's chief sources of oil,
are 8,000 miles from Europe,"
Hamilton says. "The Arctic Is-
lands are only' 3,000 miles away.
And, besides, th9 Middle East sup-
ply is uncertain and the West
needs reserves."
The Canadian boom is being
financed largely through American
investment.I
Diefenbaker estimates foreign
firms own or control 80 per cent of
Canada's oil production and nearly
70 per cent of its mining opera-
tions. Foreign investment in Can-
ada is 18 million dollars. Ameri-
cans have 14 million of it.
Nearly seven out of every 10
foreign trade dollars is spent on
imports from the United States.
Almost six out of every 10 dollars

Canada receives for exports comes
from its southern neighbor.
The United States, in turn, may
be growing more and more de-
pendent on Canada, particularly
for raw materials.
About eight years ago a com-
mission headed by William Paley,
chairman of the board of Colum-
bia Broadcasting System, report-
ing on the state of American natu-
ral resources, said in effect that
the United States is rapidly be-
coming a "have not" nation at a
time when it needs raw materials
the most.
It recommended that the United
States scrap its high tariff system
and laws which prevent other
countries from selling raw ma-
terials to the states.
Paley Report
The Paley Report has been long
since forgotten in the United
States. But in Canada it's still a
prime topic of conversation 'in in-
dustrial and government circles.
Canadians envision themselves as
a chief supplie- of United States
industry.
As yet, it hasn't worked out that
way.
The United States, struggling
with a recession in 1958, restored
a tariff on copper and slapped
quotas on lead, zinc and oil im-
ports.
The value of Canadian mineral
production promptly slipped about
3 per cent from its 1957 high.
Buffer State
Canada woulr like to be favored
economically by the United States
for a very practical reason. Cana-
dians think of their land as a
buffer between the United States
and the Soviet Union.
Airline distance from Ellesmere
Island, Canada's farthest north,
to the Taymyr Peninsula in Si-
beria is only 1,350 empty miles,
roughly the distance between Bos-
ton and Miami.
The country is laced with three
defense lines-the Distant Early
Warning (DEW) Line along the
Arctic Ocean, the Mid-Canada
Line and the Pine Tree Line on
the United States border.

Ike Studies
Space Age
Budgeting
AUGUSTA, Ga. (P)-President
Dwight D. Eisenhower spent an
hour and 10 minutes yesterday ex-
ploring problems and financing of
space conquest.
The result may be a bigger
budget for the National Aeronau-
tics and Space Agency.
Congress came through with
$500,575,000 for civilian space ac-
tivities in the current fiscal year.
There was no direct word on any
increase out of a conference be-
tween Eisenhower and NASA Ad-
ministrator T. Keith Glennan.
Wants Funds
But Glennan came down from
Washington to try to make out a
case for heavier spending in the
realm of space exploration.
With Russia out in front in that
field, the pressure is all in the
direction of a budget boost for the
1961 fiscal year beginning next
July 1.
:NASA, as a result of Presidential
action last month, now has com-
plete responsibility for developing
the huge rocket necessary for
penetrating space. Washington
space officials have announced
plans to speed up the development
and to press for more money to
carry them out.
For Missile Program1
NASA also will need additional
cash because it is taking over
laboratories, production facilities
and manpower of the Army's bal-
listic missile program.
, But except as expansion might
be involved, this would require a
transfer of funds from the Army
to the NASA budget rather than;
a net increase in government
spending. rr
The Saturn project, for which
Congress already has supplied
more than 100 millions, is a NASA
responsibility. The objective is to
develop a booster rocket with 1%
million pounds of thrust - about
twice that which shot a Russian
rocket around the moon.
White House'
Says Truman
May Join Ike
AUGUSTA, Ga. W) - A White
House spokesman said yesterday]
President Dwight D. Eisenhower1
has under consideration a sug-
gestion that he invite former Pres-
ident Harry S. Truman to ac-
company him on his 11-nationE
overseas trip.
Acting White House Press Sec-
retary Wayne Hawks was asked atI
a news conference whether Eisen-i
hower has under advisement the
matter of asking his predecessor
to go along on the trip starting
Dec. 3, as Sen. Thomas J. Doddc
(D-Conn) has urged.I
The President, Hawks said, hasI
not replied to Dodd or been int
touch with Truman himself on the
matter. He said he expects a replyI
will go to Dodd shortly.t
The Senator wrote Eisenhowert
Friday, suggesting he 'take along
one or more Democrats who arer
prominently identified with inter-'
national affairs.
Dodd mentioned not only Tru-1
man but also former Secretary ofr
State Dean Acheson, Adlai E.t
Stevenson, who ran against Eisen-
hower for President in 1952 and
1956, and Rep. Chester Bowles,
former ambassador to India.

lhe iSigUn Z
Second Front Page
November 17, 1959

LONDON OP) - Prime Minister
Harold Macmillan and Chancellor
Konrad Adenauer began talks yes-
terday to settle their differences.
But the signs were that Britain
was standing firm on its main
political dispute with West Ger-
many.
Flanked by advisers the two
long-bickering Allied leaders con-
ferred at Macmillan's residence
five hours after Adenauer's Ger-
man airlines plane landed.
As the talks began one new pos-
sibility was reported by diplomats.
Macmillan and Adenauer may dis-
cuss the future of Alfried Krupp's
giant coal-steel empire in West
Germany.
Order Krupp
Under a 1953 Allied agreement
Krupp was ordered to divest him-
self of 74 per cent of his holdings
to insure against the resurrection
of a combine that had helped build
Hitler's war machine.
An American - British - French- -
West German commission is
weighing whether to grant a re-
quest by Adenauer that Krupp be
allowed to keep his multibillion
dollar interests.
The United States seems to
share Adenauer's belief that an
enforced sell-out by Krupp would
dislocate European economy to
the Allied disadvantage.
Another development was the
announcement that illness forced
Sir Winston Churchill to cancel
an appointment with the Chan-
cellor.
Expresses Hope
Churchill's private secretary,
Anthony Montague Brown, said he
hoped Sir Winston would be up
and about shortly.
Official British and West Ger-
man spokesmen said Macmillan
and Adenauer ranged over three
main topics:
1) The timing and agenda for
an ast- West Summit Confer-
ence. Macmillan wants an early
meeting with a stop gap deal on
Berlin as the top item. Adenauer
wants to go slow on a summit
meeting and is fearful of any deal
with the Russians on Berlin.
2) Economics. Both men appar-
ently agreed on the need for links
between the "outer seven" eco-
nomic group in Europe led by
Britain and the "inner six" com-
mon market led by France and
West Germany.
Macmillan Warns
Macmillan warned that the
common market must stay out of
politics and follow a liberal tariff
policy, or face the prospect of a
trade war.
3) Disarmament. Adenauer
pressed his case for making this
the main subject of summit nego-
tiations with Russia.
A British Foreign Office spokes-
man described the atmosphere as
"frank and intimate."
This suggested that the two
leaders pulled no punches in their
review of the sniping between
them for the past year. A

MACMILLAN, ADENA UER:
Start Talks to Settle Dispute

i

.MI6

HAROLD MACMILLAN
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