The Michigan Daily Vol LXXXV, No. 31-S Ann Arbor, Michigan-Thursday, June 19, 1975 Ten Cents Eight Pages Wallace wil 6 Ford nmes aim effort at middle class By GORDON ATCHESON WASpecial Ta The Daily-Aaaa Governor George Wallace all but an- nounced his candidacy fur the presi- dency yesterday during a rousing speech in which lhe declared that the survival of the middle class will be the key cam-- paign issue. The country's middle and lower in- come people have been threatened by an unfair tax system, an unresponsive fed- eral government, and "the elitist intel- legentsia'' Wallace said, striking a re- sponsive chord at the National Federa- tion of Independent Business National Conference here. "I WILL BE involved in 1976 because the middle class needs someone to force- See WALLACE, Page S Callaway to election post ay AP and UPS WASHINGTON - President Ford yes- terday named Army Secretary Howard "Ho" Callaway of Georgia as chairman of the 1976 Ford-for-President campaign and promised a formal declaration of candidacy shortly. The selection of Callaway, a promi- nent figure in Georgia politics, seemed to give Ford's campaign an instant Southern strategy flavor and some extra appeal , for conservative Republicans who have threatened to support some other candidate. ASKED WHY FORD was maying so early into active candidacy, Press Sec- retary Ron Nessen said Ford wanted to start arranging political trips, rais- See FORD'S, Page 5 H EW warns schools on minority hiring WELCOME TO THE CLASS OF 1979, as eager freshpeople begin their descent on the University this week. Groups of incoming students ovill -;arrive for the three-day sessions which include tests, tours, regislration 5and the red tape known as orientation. convicion,; cites Nixon approval By BlLL TURQUE The Department of Health, Education, and Welfare (HEW) has ordered 32 in- stitutions of higher education, including Michigan State University .(MSU), to correct weaknesses in affirmative action programs or face the loss of over $63 million in Federal contracts. Although the University was not among the institutions cited, there were indica- terday tatheexacluion may have been in University President Robben Flem- ing's words, "purely accidental." HEW SPOKESMAN Donald HcLearn said the schools notified "are in a cru- cial situation because of the rapidly ending fiscal year" (it ends July 1). McLearn explained that the schools listed are involved in negotiations with variot"s'federa agencies fo contracts worth over $1 million each. Federal law requires that such institutions submit affirmative action programs to HEW for review and approval before the contracts are awarded. The University, according to McLearn, is apparently not involved in such ne- gotiations at the present time. 'IT LOOKS LIKE we escaped it this time," nsted Political Science Professor Nellie Varner, director of the Univer- sity's Affirmative Action Program. Fleming left the door open for a pos- sible future HEW citation. He expressed some surprise that MSU was being sub- jected to an HIEW review and the Uni- versity was not. He called MSU's posture in hiring and promotion practices for women and minorities "similar" to the University's. Fleming intimated that it was more a quirk of the University's contractual re- ationship with the Federal government than compliance with Federal affirma- tive action guidelinses wvhich kept the University from being called on to the carpet by HEW. "IT MAY HE merely coincidental that nose of our contracts fall within this period," said Fleming. MSU is is danger of losing nearly $2 million in Federal research funding. Rob- ert Perrin, MSU Vice President for Uni- versity Relations, feels HEW's action is unfair, and agreed that the University's exclusion from the HEW citation may hare bee coincidetal "I would think so," he said. "Consider- ing the other schools involved, it doesn't look like they were sparing anybody." Other schools cited include Harvard, the University of Southern California, and Purdue. PERRIN acknowledged that HEW, which has drawn sharp criticism for its alleged laxity in enforcing affirmative gidelines, may be trying to save face with the latest crackdown. "There's no question that they have been under fire for their own deficien- cies, and it does appear to be a reaction to that criticism," he said. WASHINGTON (/P) - John Hrlich- man's lawyer argood yesterday that he former, White House aide's oviction in connection wit the burglary ofa Cali- fornia psyahiatrist's office shold be overt uned on gr undo that former Pre- sident Richard Nixon indirectly author- zed the break-in. Hrliobman was convictedo conspir- acy to violate the rights of Dr. Lewis Fielding, a Beverly Hils psychiatris., beoase of a burglary at Fielding's of- fice in 1971. EIIRLICHIMAN and three other men convicted wit him are appealing the isry's verdi t in the so-called W h I I e House Plumbers trial. William Frates, who representd Ehr- lichsman bth in the Plumbers trial and in the later cover-op case told te ap- peals court that Ehrli hman was "the alter ego" of President 'Nixon and there- fore had the right to sothorize a search of Fielding's office withoat getting a warrant first. Frates contended that the president has the right to order soc break-ins where national security is concerned. - One of the bases of Ehrli'hman's ap- peal i' that the trial judge, U2.5. D'strict Judge Gerhard Gesell, denied him the right to. res 01 a deflnse-that-the break- in was f r national security purposes.