ENJOY ISRAELI EVENINGS at the Rive Gauche with Israeli food, music, singing, and landscapes FRIDAY & SATURDAY (Jan. 22,23) from 9 P.M. at the Modelon Pound House 1024 Hill EVERYONE WELCOME! Paraphernalia I! page three aloe ir rtgttn Dattu NEWS PHONE: 764.0552 BUSINESS PHONE: 764-0554 - -T- Tuesday, January 19, 1971 Ann Arbor, Michigan I ( S LE 215 S. State 20--50% off news briefs By The Associated Press SEN. GEORGE McCOVERN formally announced yesterday that he will be a candidate for the Democratic presidential Inomination. McGovern, the first candidate to officially enter the presidential race, said at a news conference, "The most painful new phrase in the American political vocabulary is 'credibility gap' - the gap between rhetoric and reality. Put bluntly, it means that people no longer believe what their leaders tell them." THE U.S. GOVERNMENT placed a 12-month ban on aircraft sales and ship repair credits for Ecuador yesterday. The action was in retaliation for this country's seizure of Ameri- can fishing vessels on what the United States considers to be the high seas. Secretary of State William Rogers also threatened action against $25.5 million of economic assistance for the South American country, warning the ambassador that it is under review. In addition, a State Department spokesman said, Rogers declared "other possible measures are being reviewed urgently and further action by this government" cannot be ruled out. THE PENTAGON confirmed yesterday that U.S. air power is playing a full-scale role in the Cambodian fighting. American planes are flying South Vietnamese troops and supplies into battle and protecting them with helicopter gunships. A pentagon spokesman broadened considerably grounds for using .American aircraft in Cambodia saying that the planes have free reign to operate anywhere in Cambodia as long as no U.S. ground-forces or advisors are involved, and their actions are beneficial to U.S. troops in South Vietnam. * * POLISH WORKERS walked off their jobs yesterday, de- manding further political and economic changes from their nation's new leaders. The workers demanded the removal of a Communist party official who ordered the shooting of the demonstrators during the riot last month and who called workers "hooligans" in a television broadcast. The workers returned to their jobs yesterday after being promised that management directors and worker's delegates could go to Warsaw to present the demands. * * * THE TRIAL of Lt. William Calley Jr. recessed indefinitely yes- terday to allow a psychiatric examination of the defendant. The action was taken after a defense psychiatrist raised the issue of Calley's sanity during the alleged My Lai massacre. Without the jury present, the psychiatrist testified that Calley "acted as a robot, a slave to the orders of his company commanderI during the My Lai sweep." ECOLOGICAL DAMAC By The Associatedyress Bethlehem Steel Corp. bowed to White House and com- petitive pressure yesterday and halved its price increases for 'some major steel products. Bethlehem said the cut from its announced increase of 12.5 per cent to a 6.8 per cent increase on prices of steel used in shipbuilding and construction was done in order to be com- petitive with other producers. President Nixon called Bethlehem's increases enormous last week, and raised the threat of permitting greater steel I Page Three Be thlehem cuts rates, yields to U.S. pressure. ANNOUNCING: for 191 Fill out the form below an mail it in so you don't mis one exciting issue! d s ----------------------------- I want to subscribe to THE MICHIGAN DAILY and I agree to be billed later. $5.50 JAN. THRU APRIL (1 semester) $10.00 JAN. THRU AUG. (2 semesters) -Associated Press PRESIDENT NIXON meets with construction leaders at the White House yesterday to discuss last week's steel price increases and other inflationary pressures. With him is Labor Secretary James D. Hodgson (left). drops in 1970; discount rate slashed WASHINGTON (R) -The Commerce Department announced yes- terday that the nation's Gross National Product (GNP) for 1970 dropped below 1969's GNP, the first annual decrease since 1958. The shrinkage was accompanied by inflation, which made its sharpest advance since 1951. Reacting to the decrease, the Federal Reserve Board yesterday trimmed its discount rate for the fourth time since November. The government said that the "real" GNP-the output of goods and services-fell 3.3 per cent during the final three months of the year. White House spokesmen said the declining fourth-quarter GNP figures reflected the General Motors strike. The Federal Reserve Board shaved the interest rate charged member banks of the Federal Reserve System from five and one- quarter to five per cent. The drop in real output and the r + price rise reflected a slack in the E? economy and strong inflationary pressures that Nixon is trying to "f0. correct. C isio n Sen. William Proxmire (D- Wis.), who will be chairman of the Senate-House Economic Commit- and advised the Arizona Stand- tee in the new Congress, said the ard there was another vessel GNP decline represents "a tragic nearby, failure of the Nixon game plan." A spokesman said the Oregon "This is bad enough in itself," Standard apparently was n o t he added, "but it is made far warned. worse by the sharp jump in unem- The Oregon Standard had ployment. The rate of unemploy- sailed from Richmond with ment is now six per cent, the high- about 4.5 million gallons, or est level in nine years." 110,000 barrels, of bunker oil "The planned slowdown in the economy, intended to slow the ac- The Arizona Standard w a s celerating rise in prices", he con- inbound from Esteros Bay, tinued "has been singularly un- Calif., with 115,000 barrels of successful', crude oil. The previous largest oil spill In reducing the discount rate in the bay region was about the Federal Reserve Board said it 12,000 gallons, or 300 barrels, acted only to reflect recent re- which spread 12 miles from a ductions in short-term interests. Norwegian ore carrier in a Generally, it was a clear indica- pumping accident near Pitts- tion the board has shifted to the burgh, Calif., more than 40 easier money policies advocated miles inland from the Golden by the Nixon administration. Gate, on Jan. 8. President Nixon has set an ex- The Coast Guard reported pansionist economic policy for that spill was cleaned up in 1971 to get the economy moving five days with no apparent ecol- and tackle a high unemployment ogical damage, rate. imports as a means of push- ing down domestic prices. The White House expressed some gratification o v e r Bethle- hem's pullback to the U.S. Steel range of increases. "We are pleased Bethlehem Steel does not intend to go ahead with the increase they had ini- tially announced," said presiden- tial press secretary Ronald Zieg- ler. But, he said, the administra- tion wasn't happy over the 6.8 per cent boost announced by U.S. Steel. Nixon also called on labor and management leaders of the na- tion's construction industry yes- terday to take "early action to at- tack the wage and price spiral" that caused sharp accelerating wage trends in that industry. At a White House meeting, re- ported on later by Secretary of Labor James Hodgson, Nixon de- scribed the problem as "a crisis situation" and asked the construc- tion industry leaders to report their recommendations to him within 30 days. Price boosts were expected in the steel industry but their size-- the largest for major items in a decade -- was surprising. Stewart Cort, chairman of Bethlehem, and Edward G o t t, chairman of U.S. Steel, had said recently that higher prices were necessary be- cause of rising operating costs and slumping profits. Meanwhile, the Cabinet Com- mittee on Economic Policy, chair- ed by Vice President Spiro Agnew launched its first meeting to pro- vide Nixon with a study of the steel price situation and ways to stabilize that industry. The hassle over Bethlehem's original boost was another in a series of confrontations between the government and the steel in- dustry over prices. In 1962, President Kennedy forcedamajor steelmakers to re- scind a general $6-a-ton increase which had been initiated by U S. Steel. In 1968, President Johnson assailed a price boost by Bethle- hem. On that occasion U.S. Steel halved Bethlehem's increase, and Bethlehem fell back. The Michigan Daily, edited and man- aged by students at the University of Michigan. News phone : 764-0552. Second Class postage paid at Ann Arbor, Mich- igan, 420 Maynard St., Ann Arbor, Michigan 48104. Published daily Tues- day through Sunday' morning Univer- sity year. Subscription rates: $10 by carrier, $10 by mail. Summer Session published Tuesday through Saturday morning. Subscrip- tion rates: $5 by carrier, $5 by mail. N.Y. hit by Hew labor stoppages NEW YORK (P) -- The prob- lems confronting New Yorkers es- calated yesterday when housing and transit patrolmen joined the five-day-old walkout of 20,000 po- licemen and, at the same time, the city's supply of fruit and vege- tables dwindled because of a Teamsters strike. Telephone systems remained un- repaired for a second week, with almost 5,000 craftsmen on strike against the Bell System in t h e city and around New York state. Moreover, in midafternoon the giant Consolidated Edison com- pany was forced to the unusual midwinter necessity of cutting back electric power by 5 per cent because of a statewide power shortage caused by cold weather. Edward Kiernan, president of the Patrolmen's Benevolent Asso- ciation, ordered patrolmen to re- turn to work, but the command was having little effect on the re- bellious patrolmen. The patrol- men refused to discuss a new con- tract until they receive $2,700 in retroactive pay. A skeleton force of uniformed officers, detectives and probation- ary patrolmen, working 12-hour shifts without days off, have pro- vided emergency services since Thursday, when a state court rul- ed the pay dispute would have to be settled by a jury trial. The latest back-to-work plea was accompanied by a promise that the trial would start imme- diately. About a t h i r d of the city's Transit a n d Housing Authority patrolmen, who guard the sub- ways and housing projects, joined the police job action. The strike of 1,500 Teamster drivers left the Hunt's Point Mar- ket, largest in the city, a "ghost town." The drivers, who m o v e fresh and frozen produce into the city, began the strike Sunday af- ter being offered a $35-a-week pay raise - $15 less than they sought. Union leaders said the city had only a day's normal supply Sun- day and severe shortages would develop by the end of the week. I Print Last Name First Name Initial Street No. Street Name Apt. No. Student No. City State Zip Code Check one [] One Semester [] Two Semesters F OR .CALL "764-0558 10 a.m.-4 p.m. Oil1spilled SAN FRANCISCO WP - Two T tankers collided under the Gold- mi en Gate Bridge in dense fog gon early yesterday and spilled an cho estimated 500,000 to 1.5 million the gallons of bunker oil in San T Francisco Bay. we: The Coast Guard would not Sta guess as to eventual environ- T mental or other damage but in- slig dicated guarded optimism. line Standard Oil Co. of Califor- tan nia, owners of both vessels, said edt the inbound Arizona Standard be rammed into the outbound Ore- -12,0 gon Standard at about 1:45 a.m. oft A slick spread slowly Toward B Alcatraz Island, 11 /2m i 1 e s shi from the San Francisco water- T front, and eastward towards un- ha inhabited Angel Island. scre The ships kept together to rimize leakage until the Ore- n Standard was able to an- or in the bay. The Arizona en proceeded to the pier. The company reported there ire no injuries and the Arizona andard appeared undamaged. The Oregon Standard h a d ght damage below the water- e in addition to two ripped aks, the company said. It add- that the two tanks known to damaged contained about 000 barrels, or 500,000 gallons bunker oil. Bunker oil is used as fuel for ps. The Coast Guard reported it d both ships on its radar een just before the collision } n Calif. fill ,_._. One Rosemount deserves another...and U TV RENTALS $10.50 per month NO DEPOSIT FREE DELIVERY AND SERVICE CALL: NEJAC TV RENTALS 662-5671 COED SHOP another s AL I I 10% off EVERYTHING NOW of NOW /wwfu 6C v I r Student Book Service mostly For the student body: 12 OFF Genuine Authentic Navy First choose your boot: the men's Cassic, the colorful lady Rosemount, the Fastback racing boot, or the new ST-100. All have easy side-door entry, lasting fit, and anti-abrasion toes. 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