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August 17, 1971 - Image 1

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Text
Publication:
Michigan Daily, 1971-08-17

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El4e £Ui iau &t
Vol. LXXXI, No. 69-S Ann Arbor, Michigan-Tuesday, August 17, 1971 Ten C
FOREIGN EXCHANGES CLOSE
Stocks up after Nixon

til
:ents

Twelve Pages

Nixon move
explained
by Connally
By The Associated Press
Clarifying President Nix-
on's announcement Sunday
of far - reaching economic
moves, S e c r e t a r y of the
Treasury J o h n Connally
yesterday maintained that
the 90-day freeze of wages,
prices and rents, will be
tough and all-inclusive.
Both in Congress and the
business world yesterday, reac-
tion to Nixon's announcement
was mostly favorable although
some observers felt the moves
should have been made earlier.
The administration doesn't
intend to grant exceptions, Con-
See Page 6 for further
clarification of the Nixon
plan of action.
nally, its chief economic spokes-
man, told a news conference.
For such even to be considered,
a business or other petitioner
would have to show really ca-
tastropic inequity as a result of
the freeze, he said.
Although Nixon's action in
halting U.S. purchase of gold at
$35 an ounce had been widely
described as devaluation of the
dollar, Connally rejected this
term. He said the dollar would
rise in relation to some curren-
cies and drop in relation to
others in an over-allrstabilizing
action.
A few hours after Connally's
conference a news report under-
scored one of the chief problems
behind Nixon's economic moves
-the deficit in the U.S. balance
of payments.
The Commerce Department
reported that the second quarter
saw the official deficit soar to a
record $5.7 billion, $238 million
more than the previous worst
See NIXON, Page 10

-Associated Press
U.S. TOURISTS crowd the American Express office in Paris yesterday to change travelers' checks
after President Nixon's announcement of new U.S. economic measures.
Strike atB ended;

3-r.contract ratified
By ZACHARY SCHILLER as well as a cost pf living clause the workers as the recently ne-
Members of United A u t o which will give the workers ano- gotiated steel settlement, it was
Workers (UAW) Local 157, who ther 20 cents an hour by Sep- very good when compared to the
had been striking at the Buhr tember, 1973. tool and die industry as a whole.
Machine Tool Co. since July It also includes transfer rights, When asked about the con-
19, ratified a three-year con- which guarantee the workers .tract, company officials replied
tract and returned to work the option of moving with the that "It is not corporate policy
over the weekend. company if it relocates within a to divulge details of the con-
The new contract, approved 65-mile radius of Ann Arbor. tract." They were unsure, how-
Saturday by a 121-31 vote, Union Chief Steward George ever, whether the new freeze on
grants about a 15 per cent wage Judy said that although t h e wages would necessitate post-
increase over the three years, contract was not as favorable to ponement of the pay hikes
agreed to in the contract.
The settlement, Judy s a i d,
{ includes guarantees to the work-
ers concerning sub-contracting,
se a major issue in the almost
month-long strike.
The strikers had objected that
the company, while laying off
Buhr employes, was subcon-
tracting work out to other
plants and workers who labored
side-by-side with Buhr e m -
ployees in the Buhr shop.
. According to union sources,
several of the subcontracted
workers, who were only "tem-
porarily employed," have been
working at Buhr for ten years.
Judy said the new settlement
gives the workers "some guar-
antees" on the subcontracting
issue, but he was not specific.
The agreement also includes
X an equalization of the overtime
clause which provides that the
man who has worked the least
number of hours in any job
classification will be asked
first to work extra hours.
Judy said the Bendix Cor-
poration, of which Buhr is a
subsidiary, changed its attitude
significantly in the past week
towards the strikers. He attri-
buted this change to dissatis-
Assaiated Press' faction with Buhr.
According to Judy, B u h r
It's a walkout customers were irritated over
to the "Big Four" talks in Berlin yesterday wards off questions as he the fact that machines p r o-
duced by the Bendix subsidiary
However, the U.S. Ambassador to the talks announced that there were not being serviced.
See BUHR, Page 10

speech
Experts meet
for study of
int'l. money
By The Associated Press
In the wake of President
Nixon's sweeping measures
to protect the U.S. economy,
investors on the stock
market yesterday r a 11 i e d
with the heaviest trading in
history.
Abroad, the shock announce-
ment Sunday night of what
amounted to a devaluation of
the U.S. dollar brought the
shutters down on most major
money exchanges in Europe, Af-
rica and Latin America.
American and European ex-
perts met in London, mean-
while, to study ways of reform-
ing the international monetary
system.
In trading at home, the Dow
Jones average of 30 industrials
rocketed 32.93 points to 888.95,
its largest one-day advance. The
previous record was 32.04 points
on May 27, 1970. The New York
Stock Exchange common stock
index closed up $1.79 at 54.67.
Britain moved early today to
seek international conferences to
concert European reaction to
Nixon's economic measures, in-
formed sources reported.
A night cabinet meeting de-
cided that Britain, as a suppliant
member of the European Com-
mon Market, must act together
with its prospective trade part-
ners, the sources said.
As afirst stage in the reported
plan, Chancellor of the Exche-
quer Antiony Barber will sug-
gest a meeting with Finance Min-
isters of the six Common Market
members-France, West Ger-
many, Italy, Belgium, Holland
and Luxenmbourg.
Volume on the New York
Stock Exchange soared to 31.73
million shares, topping the 28.25
million-share total reached last
Feb. 8.
The session was one of the
most hectic in Big Board his-
See U.S., Page 10
U.S. Capitol
bomb probe
to continue
Detroit's federal grand jury
probe into the March 1 bombing
of the U.S. Capitol and May
anti-war demonstration is ex-
pected to resume today.
In a telephone interview from
California, Ken Kelley, one of
the "Psychedelic Scapegoat Six"
previously subpoenaed to testify
before the grand jury, said that
new subpoenas have been issued.
Three of the new subpoenas call
for appearances tomorrow, Kel-
ley reported, while - two others
(including himself) have receiv-
ed subpoenas calling for October
appearances.
A sixth activist, Colin Neiber-
ger, has not been subpoenaed.
Additionally, K e 11 e y said,
Washington D.C. activist Jane
Silverman has been served with
a subpoena.
The activists previously have
refused to give any information
to the grand jury beyond their
names. The government is ex-
pected to attempt to force them

to testify tomorrow or face con-
tempt charges.

Fyotr Abrassimov, Soviet envoy t
leaves in the middle of the talks.
was no crisis.

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