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November 20, 1959 - Image 3

Resource type:
Text
Publication:
The Michigan Daily, 1959-11-20

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Jnion

Rejects

Proposal
Industry

Made
USW Claims
S N othing N ewk a
In Paekage
Both Sides Differ
Over Pay Increase
PITTSBURGH (AP) - The steel
industry yesterday disclo ed a new
offer to end the long labor dispute
with the United Steelworkers. The
union rejected it as "something
only a company-controlled union
would accept."
R. Conrad Cooper, chief industry
negotiator, said the offer would
mean a 30-cent hourly package
over a three year period. He said
it also tempered industry demands
for more say over working condi-
tions.
USW President David J.,Mc-
Donald called the proposal a re-
arrangemhent of "'the same old
package offered by industry Oct.
1."dHe said the new proposal
would mean a gain of 24 cents
an hour over the three years.
Discusses Work Rules
Referring to the work rules is-
sue, McDonald said:
"The only changes are a stay of
sentence in the same old attempt
to deprive Steelworkers of hard-
won gainss and protections."
On the basis of company es-
timates, the new proposal repre-
sents an increase of six-tenths of
a cent an hour over the 29.4 cent
hourly package the industry sub-
mitted Oct. 17 in a proposed three-
year contract.
Cooper said the proposal was a
"fair offer to do what can be done
and still keep within non-infla-
tionary bounds in the cost of steel
production."
Proposal Fair
The offer was made during secret
negotiations that began shortly
after a 116-day nationwide strike
of 500,000 steelworkers was halted
Nov. 7 by an 80-day Taft-Hartley,
injunction.
Under terms of the injunction
workers will vote by secret ballot
on the last company proposal. The
National Labor Relations Board
will conduct the election between
Jan. 5 and 20.
Unless the industry improves its
current proposal before Jan. 5
this could be the offer the workers
will vote on. They will be free to
renew the strike after Jan. 26.
McDonald said the industry
proposal was actually put on the
table last Sunday. He said the
offer .was rejected by the union's
33-member executive board the
same day.

b~y

Steel

SPAAK SPEAKS:
Urges NATO- Enlargement

WASHINGTON (P')-Paul Henri'
Spaak, Atlantic Pact secretary
general, yesterday urged the 15
NATO countries to extend their
alliance into Africa and the Mid-
dle East to cope with the Com-
munist economic offensive.
Spaak endorsed French Presi-
dent Charles de Gaulle's plea that
the 10-year-old defense pact be
reshaped to promote more coop-
eration in economic and foreign
policy.
"The threat of war is receding
but the Communist threat to the
free world is increasing," Spaak
told the annual meeting of repre-
sentatives of Atlantic Pact parlia-
ments.
Spaak roused repeated applause
from the legislators by declaring
Atlantic Pact nations must end
dangerous economic rivalries and
cooperate as never before to meet
the Communist threat to under-
developed lands.
Cautions Against Cuts
At the same time, he cautioned
against any move to cut Western
defense spending on grounds this
would tempt Russia to get trucu-
lent again.
The former Belgian premier said,
"I believe that the French gov-
ernment is right when it states
that the origin and concept of
NATO must be revised and ex-
panded."
Spaak called the underdeveloped

r

regions, battling for a better liv-
ing standard, the critical battle
area between East and West, and
said the fate of the free world
might be decided by how their
problem is solved.
Unanimously Approve
A few hours earlier, the 150
legislators unanimously approved
a resolution urging immediate es-
tablishment of a special economic
commission to draft a concrete
plan for more aid to the under-
developed regions.
The conference also recom-
mended further strengthening of
Atlantic defenses, including more
radar detection posts and more
standardization of weapons.
Spaak, stressing he was speaking
for himself, was critical that
France, in developing its own
atom bomb, had to proceed as if
such a weapon never had been
invented. He called it "a waste of
intellectual effort and resources."
Forced to Rentake
France is being forced to remake
and discover what was already dis-
covered by its allies 10 years ago,"
Spaak said. "It has to invent in
Europe what was already invented
in the United States-and what
is already known by its own en-
emy."
In proposing a broadening of
the Atlantic Pact, Spaak said it
is no longer possible to isolate

Europe's problems from those of
the Middle East and Africa.
"We can and should without
changing and modifying the treaty
try to make a more systematic ex-
tension of NATO into territories
outside," he said.
Spaak did not spell out any
concrete ideas for expanding the
pact. His emphasis on the eco-
nomic challenge appeared to mean
he wanted more than a military
extension of areas to be defended.
U.S., Russia
PlanWorks
WASHINGTON (P) -- Joint
United States-Soviet space opera-
tions are being discussed, Soviet
rocket experts disclosed yesterday.
The Soviet group,, headed by
Prof. Leonid I. Sedov made the
disclosure at a news conference
while here for meetings of the
American Rocket Society.
Sedov said, through an inter-
preter, that the discussions are
being carried on between mem-
bers of his group and representa-
tives of the National Aeronautics
and Space Administration.
International cooperation on
space research, he said, is of great
concern to both Russia and the
United States, as well as to space
specialists of other nations.
He said that the American and
Russian scientists have worked
out a common view that cooper-
ation is possible and necessary.
But at the same time, he said,
they have concluded that such a
program of cooperation can be
developed only gradually on a step
by step basis.

England,
Germany
End Talks
LONDON (I ) - To the tune of
cheers from a British crowd,
Chancellor Konrad A d e n a u e r
went back to West Germany last
night satisfied that he and Prime
Minister Harold Macmillan had
cleared away some of the fog of
British-German distrust.
Even Macmillan was astonished
at the demcnstration for the de-
p arting 83-year-old German
statesman. As the crowd of around
300 sang "For He's a Jolly Good
Fellow," Macmillan said some-
thing to Foreign Secretary Selwyn
Lloyd and then pointed open-
mouthed to the singers. The fare-
well was in sharp contrast to the
unemotional welcome accorded
Adenauer Tuesday.
Germans Retreat
But although Adenauer said on
his arrival in Bonn that "both
parties were very satisfied" with
the three days of talks, the two
leaders failed to agree on the
place of a stopgap Berlin deal in
coming summit negotiations with
Russia.
Adenauer signaled a West Ger-
man retreat from established al-
lied positions on Berlin. He told a
crowded London news conference
one subject of summit discussion
doubtless will be how East Ger-
many can get self-determination.
Mentions Berlin
Adenauer made clear he wants
Berlin to form part of a wider
German settlement. But British
officials immediately reaffirmed
that Macmillan considers a tem-
porary Berlin solution can and
should be reached with Russia at
the summit based on existing
Western proposals. These, made
no mention of self-determination,
and allowed for a Berlin solution
in isolation,.
German and British officials
said Adenauer's visit had estab-
lished these main areas of agree-
ment:.
The East-West summit meeting
should be held before the end of
April, which is the earliest pos-
sible date.
Full British-German agreement
has been reached on "the political
aspects of disarmament" in ad-
vance of the summit.

Budget
AUGUSTA, Ga. (k)-A presiden-
tial conference on spending plans
wound up yesterday with prospects
that this year's budget will dip
into the red but that the new one
will be balanced at around $81
billion.
Eighty-one billions would set a
new peacetime record.
President Dwight D. Eisenhower
and Budget Director Maurice H.
Stans spent more than two hours
thumbing through all the non-
military items on the new budget,
for the 1961 fiscal year starting
next July 1.
Stans told newsmen afteirward
that "the odds have swung against
a balanced budget" for the cur-
rent, 1960 fiscal year because of
the steel strike.
Instead of the $95 million sur-
plus the Administration foresaw
not so long ago, unofficial esti-
mates now put the prospective
deficit in the vicinity of 500 mil-
lions.
Spending To Go Up
Eisenhower and Stans hope to
have the new budget battened
down, within the next week-in
any event, before Eisenhower
takes off Dec. 3 on a good-will trip
to 11 nations.
The way things look now, spend-
ing is likely to go up from $79
billion this year to somewhere
around 81 billions for fiscal 1961.
The military budget probably
will move up from just below to
somewhat more than 41 billions.
Non-military items stand at
about 38 billions for this year.
Stans and other budget experts
say that existing legislation and
programs entail built-in increases
of more than two billions.
Tax Cut Improbable
These are in such fields as .in-
terest on the Government debt,
housing, space projects, the Agri-
cultural Conservation Reserve, and
Veterans' Pensions.,

To Go

Student Group Protests
Nicaragua Army Tactic

l __.__. _ .. _. _._ _. - - wrwo

An increase to the point that
taxes could be cut is considered
improbable, but it should be suffi-
cient to provide a surplus.
Before flying back to Washing-,
ton, Stans told a plane-side news,
conference that the steel strike is
cutting into -revenue estimates for
the current fiscal year but that
once the strike ends profits should
recoup and this ought to be re-
flected in a gain in revenue in the
1961 fiscal year.
The budget director said that

except for a few tag ends Eise
hower now has reviewed and a
proved all but six parts of t
budget. But the six are big, maj
ones - the budgets for Nation
Defense, the Department
Health, Education and Welfa
foreign aid, atomic energy, housi
and the National Aeronautics a
Space Agency.
"The military budget, it is fi
to say, is getting a closer scruti
than it has in several year
Stans reported.

in Re

(UPS) Nicaraguan students have
continued their protests against
the Luis Somoza regime in the
face of army intervention and the
imprisonment of 10 students, the
Coordinating Secretariat (COSEC)
of the International Student Con-
ference announced last week.
The upheaval started with the
July 23 riots at the University of
Leon in which 4 students were
killed and more than 60 wounded.
COSEC requested the 66 mem-
ber national unions of students of
the ISC to send messages of pro-
test to the Nicaraguan govern-
ment and its embassies.
The COSEC letter was accom-
panied by a message from the stu-
dent organization of the University
of Nicaragua, stating that the
army had occupied the University
of Leon building and surrounding
streets after July 23.
The military forces were led by
officers who were studying at the
University.
"On the resumption of classes
after 43 days of military occupa-
tion of our University," the mes-

sage said, "to the great surprise
of the students, the officers also
returned to classes.
Votes Suspension
However, the university Coun-
cil voted on Sept. 4 only to sus-
pend the officers, precipitating
strong protests from the students
including a hunger strike by five
undergraduates and an attempt to
occupy the university by 600 stu-
dents, who locked themselves in-
side the university building on
Oct. 15.
"At 2 am.," the message stated,
"more than a hundred armed na-
tional guards surrounded the uni-
versity building where the stu-
dents were, blocked all streets and
halted traffic for more than 24
hours, threatening the students
and beating the students who
dared to give them food.
They also cut off the water and
electricity supply of the Univer-
sity.
Go to President
"In the face of this situation,
the University Council, presided
over by Dr. Montalvan, went to
see the President of the Republic,
Luis Somoza ]Debayle, the son of
his predecessor, Dictator Somoza,
to ask his advice in solving the
problem.
Accordingly, a letter appeared
from the officers who were study-
ing at the university, in which they
asked to be withdrawn as students.
Military forces were withdrawn
from the university area the fol-
lowing day, but ten students were
imprisoned.

Ford Set To Discontinue
Production of Edsel Line

Ehe t tan Daily
Second Front Page
November 20, 1959 Page 3
"

DETROIT (P) -- Ford. Motor
Co. yesterday took the unusual
step of announcing that one of its
car lines, the Edsel, will be dis-
continued after only 28 months
of production.
Ford said sales were so poor it
could no longer justify the Edsel's
existence.
Cars, like old soldiers, rarely of-
ficially die but are allowed to
fade away. This was the case of
the Kaiser, Frazer, Packard, Hud-
son and Nash - all of which have
been discontinued since World
War II without official notice.
Ford, however, made a formal
statement that Edsel will be
dropped immediately. Eighteen
Edsels were built Wednesday at
Louisville, the only Edsel plant.

~~~__.

I

"They were special orders," a
Ford spokesman said, "although
now I don't know whether the
buyers will want them."
Prospectus Prompts
Yesterday's announcement was
prompted by publication of a
stock prospectus on behalf of the
Ford Foundation, which an-
nounced plans to sell another two
million shares of its Ford Motor
Co. stock to the public.
The prospectus by law must tell
all about the business plans of the
company. Yesterday's copy in-
cluded a one line footnote on Ed-
sel: "Introduced in September
1957, and discontinued in Novem-
ber 1959."
Ballyhooed
The Edsel was introduced pub-
licly at the end of August 1957
with lavish ballyhoo and predic-
tions that at least 200,000 would
be sold in the first year. It took
250 million dollars and three
years' planning to bring the car
to market.
Total factory sales in the 28
months fell slightly short of 110,-
000 cars.
Only 2,700 of the 1960 model
were built. Ford yesterday advised
persons who bought these it will
give them a $300 non-transfer-
rable certificate good for use on
the purchase of any domestically
produced Ford Motor Co. car.
Ford said that its other cars are
selling at least 40 per cent bet-
ter than a year ago while the Ed-
sel has slipped off to almost noth-
ing.
Because of the poor showing,
Ford said, "continued production
of the Edsel is not justified, es-
pecially in view of the shortage of
steel, the effects of which will ex-
tend into 1960."

t
i

NO 8-9619

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