Friday, October 25, 1974

THE MICHIGAN DAILY

Pace Three

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TH-IHGA"AL Pg he


U.S. PRESSURE CITED
Thieu fires cabinet cronies

-C

SAIGON, South Vietnam ()-
President Nguyen Van Thieu,
under pressure from the United
States and opposition politicians,
fired four members of his cab-
inet yesterday, including a pow-
erful relative, Information Min-
ister Hoang Duc Nha.
Insiders reported Nha w a s
ousted because he angered both
the U.S. Embassy and Saigon
generals by limiting their ac-
cess to Thieu, Nha's cousin and
adoptednephew of Thieu, has
also been accused by opposi-
tion politicians of personal cor-
ruption and criticized by the
press for restrictive policies. He
has denied the corruption charg-
es.
SCANDALS that put U.S. aid
dollars in the pockets of corrupt
officials and businessmen were

apparently behind the three oth-
er firings - those of ministers of
finance, agriculture and com-
merce and industry. While not
charged with corruption them-
selves, the ministers were ac-
cused of failing to control aid
adequately.
Thieu has been pressed by the
Ford administration to rid h's
government of its corruption
image in order to get more aid
from Congress.
The cabinet reshuffle -he
third in the past year -- ap-
peared unlikely to reverse dra-
matically South Vietnam's down-
ward trend on military, ec gnom-
ic and political fronts.
RESHUFFLES last February
and in October 1973, failed to
bring changes, apparently be-
cause they were not sufficient-

ly sweeping. Most of Theis's
cronies remained in the power-
ful positions and were unable to
deal with corruption and a crit-
ical economy that saw inflation
soar above 50 per cent and un-
employment hit an estimated
one million out of 20 million
persons.
U.S. sources say all South
Vietnam's problems lie with its
economy sapped by devoting na-
tural resources and manpower to
support a 1.1 million-man mili-
tary force still fighting 21
monthsraftersthe cease-fire
agreement.
The cabinet changes were re-
garded as unlikely to open the
way for talks with the Viet Cong
and bring anend to fighting.
I.

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Back to court

AP Photo

James Earl Ray heads for U.S. District Court in Memphis,
Tenn., Wednesday to testify he was pressured into pleading
guilty in the slaying of Dr. Martin Luther King. Ray, serving
a 99-year sentence at Tennessee state prison, is flanked by
U.S. marshals.

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Possible end sighted
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WASHINGTON (P) - A major
government study says the Unit-
ed States can become independ-
ent of foreign oil by 1985, if it
promotes both increased domes-
tic oil production and manda-
tory energy conservation.
Beyond 1985, this draft of the
"Project Independence B 1 u e-
'print warns, the nation faces the
prospect of a new energy crisis
as its oil and natural gas sup-
plies start to'run out.
THE STUDY, while making
no specific recommendations,
makes a strong case for adopt-
ing such mandatory fuel-saving1
measures as a gasoline-mileage
standard for cars, and lighting
and insulation standards for
buildings.
Energy conservation, it says,
would:
-Reduce inflation,
-Stretch out dwindling oil and
gas supplies,
-Reduce environmental lam-1
age,
-Have money for productive
investment in other activities,
-Help reduce present h i g h
world oil prices, and
-And put the nation in better
shape to meet the threatened
energy crisis of the 1990's.
The study finds only two maj-
or objections to mandatory con-
servation: the danger that it
could, if pushed too far slow
down economic growth; and the
problem of increased govern-
mental intrusion into the 'nergy
market.
BUT THE study also no t es
that the government must also
tamper with the market in other
ways to speed up domestic en-
ergy development.
In an ironic twist, it says new
THE MICHIGAN DAILY
Volume LXXXV, No. 44
Friday, October 25, 1974
Is edited and managed by students
at the University of Michigan. News
phone 764-0562. Second class postage
paid at Ann Arbor, Michigan 48106.
Published d a i" y Tuesday through
Sunday morning during the Univer-
sity year at 420 Maynard Street, Ann
Arbor, Michigan 48104. Subscription
rates: $10 by carrier (campus area);
$11 local mail (Michigan and Ohio);
$12 non-local mal (other states and
foreign).
Summer session published Tues-
day through Saturday morning.
Subscription rates: $5.50 by carrier
(campus area); $6.00 local mail
(Michigan and Ohio); $6.50 non-
local mail (other states and foreign).

energy production efforts could
turn out to be self-defeating un-
less the government steps in
with subsidies or price-supports.
One of the most important,
and most unpredictable, factors
in energy policy-making is the
world price of oil, the study1
concludes.
IT MAKES a highly uncertain
guess that the price may fall
from around $11 a barrel to
about $7 a barrel, but concludes
that the lower prices would ac-
tually make it harder for the
United States to pay its foreign
oil bills and protect itself
against a new oil embargo. That
is because it would actually
stimulate the United States to
import more oil.
Accelerated U.S. oil produc-
tion would help drive down the
foreign price, but, by the same
token, the United States would
itself become less competitive,
the report says.
Thus, it concludes, successful
domestic development may re-
quire government aid or price-
support to prevent its collapse
if foreign oil prices drop.
The Project Independence, a
proposal to became independent
in developing energy, was set
up by former President Richard
Nixon during the Arab oil em-
bargo last winter. An advisory
panel of 24 persons, largely from
business, government and laoor, I
was appointed last June to nelp
 develop the report.

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Oct. 25

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