Mayor. By MARK DILLEN Daily News Analysis Although it will certainly come 'as a shock to many taxpayers, Ann Arbor ap- pears headed for its first personal city income tax this fall. There is simply no other way to pro- A vide for Ann Arbor's needs, city officials say, and as of now there appears very lit- tle that could happen to change that as- sessment. As a result, taxpayers can soon expect a wide-based campaign aimed at gaining converts to the campaign for more taxes. However, if the plans of city Democrats hold until November, there will also be a referendum that will give residents some voice in the amount of the increase. That seeks c is because a city charter provision must be amended to follow a simultaneous property and income tax. Currently. Ann Arbor has a property tax rate of 7.5 mills that provides about one- third of the city's $13 million operating budget. In order to add a one per cent income tax to raise about $5 million Ann Arbor's city charter must be amended a move which requires a referendum. Thus, because the city is. limited to a one per cent income tax assessment by state law, and since a one per cent income tax would improve the city's financial con- dition by only about $600,000, some sort of "combination" tax package will most likely be pushed by Mayor Robert Harris' administration. ity inco According to City Auditor Kenneth Sheehan, opposition to an income tax on political grounds has all but dissolved as the general economic situation of the city has worsened. For the year beginning July 1, although a record level budget of $13 million was approved, increases in de- partmental appropriations did not offset that of inflation in city costs-estimated between-five and seven per cent over the past year. Thus, few city agencies received their full request from the city and several programs all but died on the budgetary cutting block. "There's no doubt but that an income tax is absolutely necessary." says Ann See CITY, Page 10 me tax KennetheNheeiean Page three ale S it!3an RESPLENDENT High-82 Low-61 Partly cloudy and warmer, chance of showers Friday, June 11, 1971 ANN ARBOR, MICHIGAN News Phone: 764-0552 ixon lifts ban- on trade with China Reminder for litterbugs Members of the Willing Workers 4-H Club in Walsh, Illinois, erected this figure from empty pop and beer cans they picked up from local highways as part of a clean-up program. ABORTION REFERRAL: .Daily business head says pressure idan't end ads By ROSE SUE BERSTEIN Daily Business Manager James Storey yesterday denied that The Daily's decision to stop accepting abortion referral advertising was related to a letter from a state legislator requesting that action. Rep, Dominick Jacobetti (D-Negaunee), vice-chairman of the House Appropriations committee; wrote last March to the president of every college and university in Michigan, requesting that they "advise the advertising departments of (their) campus newspapers that advertising for abortion referral services is illegal in Michigan." Upon hearing of the letter from Jacobetti, the Ankrican Civil Liberties Union of Michigan (ACLU) criticized the -action, charging that they perceived nothing illegal in abortion advertising, from their interpretation of the Michigan statute which allegedly forbids it, In addition, the ACLU urged campus publications "to resist this attempt to interfere with the internal affairs of public institutions." '. In a letter sent to The Daily and other state campus publications ACLU accused Jacobetti of suggesting that "as a condition for con- tinued- approval of public support and appropriations that presidents of state supported institutions of higher learning should exercise illegal censorship over publications related to their institutions." The Daily had announced last month that it had decided to pro- hibit abortion advertising, because of a state law against such ad- vertising. Storey explained at that time that The -Daily had been unaware of the law's existence. and that the action did not constitute a change in advertising policy. ". . . anyone who wishes," Storey said, "may advertise in The Michigan Daily provided they pay their bills and don't violate the law," Storey reiterated yesterday that the decision on abortion advertis- See ADS, Page 10 WASHINGTON (--Presi- dent Nixon ended the 21- year freeze on U.S. - China tr a d e yesterday by lifting the ban on imports from the People's Republic of China' and issuing a broad list of non s t r a t e g i c U.S. goods which may be sold there. At the same time Nixon drop- ped a requirement tinposed by former President John F. Ken- nedy in 1963 that at least 50 per cent of U.S. grain exports to Russia, Communist East Europe and the Chinese mainland be carried in American ships. Administration officials voiced hope this eventually would help U.S. exporters get some of an estimated $200 million to $300 million a year in wheat ship- ments that the Soviets buy else- where. The 50-50 requirement has put U.S. grain at a competi- tive disadvantage in such sales because American shipping costs more. Ambassador Winthrop Brown. who headed an administration task force that drew up the China trade list, declined to predict just what practical ef- fects the new U.S. action will have in getting trade with China under way. US.-Chinese trade was run- ning some $200 million a year in 1950 when Washington im- posed an embargo as a result of China's entry into the Korean war. The Communist mainland now imports about $2 billion annually, including $1.5 billion from non-Communist countries. and exports about the same amount, officials said. The White House listed these main groupings of U.S. goods which may be sold to the People's Republic of China without a spe- cific-export license -Most farm, fish and forestry products, tobacco and fertilizers. -Coal, s e l e c t ei chemicals. rubber, textiles and certain metals. -Agricultural, industrial, and office equipment. -Household appliances. -Electrical apparatus in gen- eral industrial or commercial use, certain electronic and coma- munications equipment, certain automotive equipment and con- sumer goods. Firhss wishing to sell the Chi- nese items not on this list may apply for a specific export li- cense at the Commerce Depart- ment, and the applications will be reviewed on a case-by-cage basis, Brown told reporters at the White House. Oil exploration area The region shaded on the map is the area which the South Vietna- mese government yesterday opened for exploration and exploitation by foreign oil companies. POLICEMAN INJURED Black youths clash with police i People' s Plaa Fighting between a gloup of young blacks and police erupted on the People's Plaza between the Union and the Administration Bldg. yesterday afternoon when two city patrolmen, investigating an assault report, attempted to arrest two black youngsters. As police led the two blacks to- wards their patrol car, parked outside the Union, another black youngster - a girl -- jumped the police, kicking them and knocking one of their helmets to the ground. As police struggled to subdue the two they had arrested, the girl persistently kicked and hit the police, shouting, "let' them go," and "racist." While a small crowd gathered, the two policemen struggled with- out assistance. One policeman lost his glasses, and the other's face was cut. After a five minute struggle, officers locked their prisoners in the back of the patr-il car and drove them to the station, where, after questioning, the twa young- sters were released. According to two white girls- who accompanied the police to the station-they were assaulted by a group of black children outside a "record store." Thegirl was was allegedly as- saulted was in a distressed con- dition, and could not give the lo- catirn of the assault or th-' nt- tnre of the offense. When asked if the two young- ,sters with whom the police were fighting were the two who had assaulted her, she said "I don't know,"