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.