FRANCO LOAN- "REALISM' See rage 2 Y as La test Deadline in the State Iaii41 FAIR, WARMER VOL. LX, No. 27-S ANN ARBOR, MICHIGAN FRIDAY, AUGUST 4, 1950 FOUR PAGES 1m. s * * * * * * * * *1 25th Division Shifts South, Re uses tta ck * * * * * * * * Cabinet Will Remain As Is - Truman WASHINGTON-(P)-President Truman put Korean policy critics emphatically on notice yesterday ' that as long as he is President, Secretary of State Dean Acheson and Secretary of Defense Louis Johnson will stay in the cabinet. His stern comment came in re- ply to a news conference question. A reporter stated that Rep. Priest, of Tennessee, House Democratic whip, had said Acheson and John- son should resign. The reporter asked for Presidential reaction. ** * MR. TRUMAN, who weeks ago had tartly rejected Republican de- mans for Acheson's scalp, said he was surprised that the House whip of his own party had made such a statement. He said Priest had no business doing that. Then, raising his voice, he said he wanted to make it plain that Acheson and John- son are not going to resign as as long as he is in the White House. Mr. Truman, turning to other matters ,expressed disapproval of a proposal approved tentatively today by the House to apply price- wage controls automatically when prices rise five per cent above June 15 levels. HE SAID that is an invitation for prices to go up five per cent: then that would have to be met by a wage increase, and a never- ending spiral upward would start. He added he had not asked for price-wage control power, but if it was to be forced on him it should be authorized without; any restrictions on him. He pre-; ferred standby authority, if any at all, with the President hav- ing the right to put on the brakes1 when needed, using the price level between May 24 and June 24 as a base. The President said he will sup-' port former U. S. Rep. Thomas C. Hennings, Jr., of St. Louis for election if he is finally judged to be the winner over his candidate, State Senator Emery W. Allison, for the Democratic Senate Nom- ination in Missouri. Allison trailed Hennings by more than 4,000 votes in the Tues- day primary, but in congratulating Hennings he clung to the faint Britain To Build Up Western Defenses Offers To Supply North Atlantic Pact Members with Free Military Aid LONDON-(i)-Britain announced yesterday she plans a $9,520,- 000,000, three-year program to build up Western defenses against Soviet Russia, if the U. S. will help pay the bill. In return for U. S. financial aid, Britain offered to supply her North Atlantic Pact partners with free military equipment made in Britain. ** 'I * A STATEMENT from Prime Minister Attlee's office said the pro- gram would increase Britain's total defense expenditure from nearly eight per cent of the national income to 10 per cent. Britain's Labor Government is ready in principle to make this increase, the statement said, but fulfillment will "depend on the j amount of U. S. assistance,forth- comin ,," Ca Mpus YP S uspended By 'U' Move The Young Progressives have been suspended as a recognized student organization pending a hearing by the Student Affairs Committee which will be held Tuesday. Notice of the suspension, receiv- ed yesterday by YP chairman Gor don MacDougall, said. that it was "until such time as .the responsible officers of the Young Progressives appear before the Committee on Student Agairs to explain the cir- cumstances of their meeting of July 24, 1950." This was a meeting held by the Young Progressives to discuss Kor- ea. It has been variously described as "an open student forum," "an all-campus discussion," and a "membership meeting." The Pro- gressives had obtained permission to hold a membership meeting on thatdate in the Union. S* * * THE YOUNG Progressives, in a statement issued by their execu- tive board last night, said: "This suspension comes as a great shock to the YPA. We have not been charged with vio- lating any University rules .. . warned, or consulted in this matter, in violation of the Uni- versity rules governing the ex- pulsion of recognized campus groups.". The rule on withdrawal of offi- cial recognition requires that "af- ter review of the evidence obta in- able, officers of the organization concerned will be heard by the committee . ." Dean Walter last night said that a special meeting of the Student AffairsrCommittee has been called for Tuesday,. at which time the Young Progres- sives will be heard. The YP statement continued: "We feel that the Committee on Student Affairs should temporarily rescind its action until the YPA has had a chance to present its side of the story. "Today in an atmosphere of public hysteria and thought con- trol, the University has the spe- cial duty to avoid even the ap- pearance of yielding to such politi- cal pressures." Senate Denies Loan Review WASHINGTON-(MP)-The Sen- ate refused yesterday to reconsider its vote for a mandatory $100,- 000,000 loan to Franco Spain, al- though President Truman said he doesn't approve. UVI~ g. "This burden would be so heavy that it would be impossible to car- ry out the full program without substantial U. S. assistance in ad- dition to completion of the Euro- pean recovery program, (due to end in 1952)," it said. "Even so it will entail real and substantial sacrifices by the British people. It will delay the recovery and post- pone the improvement in their circumstances for which they had hoped as a result of their efforts since the end of the war." THE PROPOSED outlay totals 3,400,000,000. pounds sterling. The nation's entire budget for the cur- rent fiscal year is 3,455,000,000, pounds or $9,674,000,000. The statement was handed to U. S. Ambassador Lewis Douglas last night. The statement said the pro- gram will inevitably slow down the postwar recovery of the United Kingdom but the gov- Battle Rages 35 Miles From Pusan TOKYO--(P)-A heavy Commu- nist attack was repulsed last night by the U. S. 25th Division, hur- riedly shifted from the North to the crucial Southern Front 35 miles west of the vital port of Pusan. Fast-moving North Ko0r ea n forces elsewhere began shelling new riverfront positions along a shortened, 125-mile front in the shrinking beachhead of Southeast Korea. * * * TANK-EQUIPPED U. S. Marine and Army reinforcements also were racing up to bulwark this line, where a decisive battle may be building up. U. S. Marine carrier-based planes roared into action today for the first time, blasting Com- munist targets behind the Southern Front, a Navy an- nouncement reported. The sudden shift of the 25th In- fantry Division from the North to the South Front was reported in a U. S. ighth Army communique. It said the Communist attack roll- ed up yesterday and was beaten back. An estimated 600 North Ko- rean bodies were strewn on the battlefield. * * * THE 25th CAME to the relief of the battered 24th Infantry Di- vision. The 24th fought a dogged, delaying action in the long re- treat from positions south of Seoul, and has been bearing the brunt of the Communist drive toward Pusan. The Communist assault on the 25th was by an estimated four North Korean battalions. The communique said another Commu- nist attack in company strength was beaten off northeast of Chin- ju, 55 miles west of Pusan. General MacArthur's head- quarters, apparently reporting the 25th action, said a regimen- tal combat team drove the Com- munists back after a six-hour battle. Fighting began at mid- night and raged on until 6 a.m., today. * * * BEHIND THE wide Naktong Ri- ver, now the new U. S. and South Korean defense line, American ar- mor and men were building up in quantity, field dispatches said. Headquarters said reconnais- sance showed that the Commu- nists were building up considerable strength in the Taejon area north- west of the river positions around Taegu. A COMMUNIQUE from an ad- vance U. S. command post in Ko- rea, dated Aug. 3, said a U. S. tank- led battalion has dashed 22 miles behind enemy lines, captured val- uable documents, maps and Rus- sian-made equipment and return- ed successfully to its own lines. The penetration, classed as a definite U. S. victory, was the deepest and most daring so far in the Korean War. It occurred yesterday and last night in the crucial Chinju area. -Daily-rrank Kely RECRUITER SIGNS STUDENT ENLISTEE-Sgt. John C. McAuliffe telephones information to an anxious non-veteran while student Nick Wheeler signs for a hitch in the army, beating the draft the hard way. Trophies flanking banner on wall are recognition of high numbers of recruits for the local station. ernment is bute "to the world in the situation." Britain, it undertake so gram "unless anxious to contri- defense of the free present threatening went on, could not big a defense pro- the U. S. can offer hope that absentee still win for him. ballots may Reece Leads In Tennessee NASHVILLE--(P)-Gov. Gordon Browning held a 10,501 vote lead at 9:30 P.M. (CST) yesterday in his bid for renomination in the Democratic primary. Attention on Tennessee races was focused in east Tennessee's Second District, where Carroll Reece, former Republican National Chairman, took a lead in his bid to return to the Congressional post he held for 24 years. Unofficial returns from 1,111 of the state's approximately 2,300 precincts gave Browning 84,652 votes to 74,151 for State Sen. Clif- ford Allen. The returns included only a fragment of the biy city vote, only beginning to tricle in. This vote from the four big population cen- ters could swing the trend either way. Trespass Hearing 'a1 3 nJ b y Fr Ent financial assistance," part in ma- terials and part in freely-conver- tible dollars. * * * SHE ALSO announced willing- ness to transfer an unspecified quantity of British-made military equipment to her Atlantic allies who were in need, to help in the common job of building up a ba- lanced collective defense. Also proposed was a general ar- ri ngement which might be applied on a reciprocal basis. The new program will be sub- mitted to Parliament for approval oiy when Britain and the U. S. have worked out some kind of a deal on the whole issue, the an- nouncement said. World News Roundup gy The Associated Press WASHINGTON - The Senate voted yesterday to hack about $525,000,000 off this year's general government appropriation bill, but it exempted Marshall Plan funds as well as the military budget from the 10 percent cut. * * * WASHINGTON -- President Truman yesterday created a high level staff to serve with the National Security Council in this critical world period. The Council helps coordinate mili- tary, domestic and foreign poli- cies in the interest of the na- tion's Defense. The President heads it. * * * ' WASHINGTON-President Tru- man is sending W. Averell Harri- Truman Hits Price-Wage* ControlsBill WASHINGTON--(/')-The House voted yesterday for an "alarm clock" system of automatic price- wage controls, and President Tru- man promptly condemned it as an invitation to a price rise. Under the plan, as tentatively approved, price and wage controls would take effect if the cost of living rose five percent above June 15 levels. * * * THE PRESIDENT would be dir- ected to bring under control those prices and wages which he finds' materially affect living costs-bas- ing ceilings on the May 24-June 24 levels. Truman told a news confer- ence that he has no objection to being given authority to roll back prices to a level prevailing be- tween May 24 and June 24. If we are going to have price controls let's have it, he said. Militia In Critical Jobts deferred WASHINGTON W) ---Secretary of Defense Johnson announced yesterday that National Guards- men and Reservists in critical jobs will be deferred temporarily from active military duty. Johnson's announcement was part of an unusual governmental triple play involving three depart- ments: Defense, Labor and' Com- merce. The Commerce Department list- ed 72 important industries, the La- bor Department listed 48 critical occupations, and the Defense De- partment said these lists would be used in guiding the deferment of officers. * * * NOn-V ets Face Reserve, Draft, ROTC or 'Guard' By PETER HOTTON Daily City Editor Exactly what is the student's status in the draft, Reserve, National Guard and college training programs since the start of the Korean war is the question foremost in the minds of both men and women on campuses all over the country. The veteran has little to worry about, for he is draft exempt, at the moment, but he can enlist any time he wants to, sometimes at the same grade he had when he was discharged. Married veterans can't get back in if they wanted to, because they are not allowed to enlist. * * * * THE NON-VET'S situation is somewhat different. If he is regis- tered with any draft board, all he has to do is wait for greetings. All males must be registered within five days of the time they become 18 years old. The local board will move from its old cubby hole to more spacious quarters Saturday at 210 W. Washington Street, across the street from the car port. If a student has registered for the draft in his home town and is called for pre-induction examination, he can take it from the local board, according to Mayor William E. Brown, local board chairman:, A man can transfer his induction to the nearest board where he lives, but his classification and registration stay at the board at which he first registered, he said. Also doing a land office business is the local recruiting station. Monthly enlistments for the Army and Air Force have almost doubled since the war started, according to Sgt. Norwood Broad- way, chief recruiter. The station, located in the Armory, 223 E. Ann St., is open seven days a week to 9 p.m., Broadway said. * * * * THERE ARE WAYS of legally "beating" the draft, but it won't necessarily keep a man out of the army, navy or any other service. The University's ROTC and NROTC programs, plus local National Guard and Reserve Units will keep a student from the draft, but as a member he is liable to be called to duty at any time. NEITHER PROGRAM at the University have had any directives to modify or expand their programs in any way, according to summer commanders Major Bernard H. Schummel and Commander William R. Smith * * * * CO. K. 125TH REGIMENT of the 46th National Guard Infantry Division is located at the Ann Arbor Armory, and trains every Mon- day. Its members, 81 strong, are one-quarter students and are paid for their training. Anyone who joins the National Guard before he is 18 and a half years old is draft exempt and subject to a call to duty at any time. U.S. Motion on Korea Approved Voting Termed 'Illegal' by Malik LAKE SUCCESS-(P)-In a bit- ter session scarred by charges of blackmail and slander,athe Secur- ity Council rejected last night a Russian attempt to have the Coun- cil consider admission of Red China ahead of the Korean War. Instead, the Council approved a United States motion to keep on discussing North Korean aggres- sion and to try for a way to confine the war to Korea alone. THE VOTE TO substitute the United States proposal for the Russian item ws 8 to 1. The So- viet Union voted alone and this did not count as a veto since agen- da votes are considered as pro- cedural and not of major import- ance. The United States proposal was to consider immediately "ag- gression upon the Republic of Korea." The Russians sought to make the item read "peaceful settlement of the Korean ques- tion." They were voted down on this also. Tre Council likewise refused even to put the Chinese question on its agenda. Soviet Deputy Foreign Minister Jakob B. Malik called all the votes "illegal" because they were taken without the presence of Red China, but he showed no sign of walking out after the series of diplomatic defeats. He called another council meeting for today. THE COUNCIL meeting was one of the post heated in UN history. United States Chief Delegate War- ren R. Austin swapped blunt lang- uage with Malik, who is president of the council during August. Malik charged the United States with "flagrant, open and active aggression" against the people of Korea. He told the Council the UN must choose be- tween the Moscow brand of peace or follow the United States along a path the Russian called aggression. Red faced and angry, Austin shouted back that Malik had ut- tered "a new slander, a new threat, a new provocation." Austin said the world is tired of hearing such "shameless travesties" while sons of nations are dying in Korea. The Council sat silent as Malik renewed his demand that it take up the question of seating Com- munist China as a permanent member before going further into the Korean trouble. To some West- ern delegates, his speech seemed like a yarning from the Soviet Union to take Moscow's peace terms--or look out for trouble. U. S. Worlng On Two New UN Proposals WASHINGTON-(P)-Proposals for two new United Nations ac- tions in the Korean crisis are now being developed bythe United States. * * *E THE PROPOSALS ARE: 1. Creation of a permanent watchdog commission to keep check on trouble spots all over the world and have official UN observers on hand when and if some new Communist aggression occurs. President Truman and other Government officials felt the free world benefited greatly and United Nations action against aggression , wpeeded up consid- erably by the presence of a UN commission in Korea when the Red attack broke. 2. Organization of a UN group, including Asian members parti- cularly, to consider the UN's course of action in Korea once troops have driven the Reds back LECTURES ON NEAR EAST: Turkey Has Tradition of in ternal Peace By CAL SAMRA There is no reason to fear that the progress of the Turkish coun- try will lose momentum, and since changes have been made in a gra- dual ann nderly fashion, the tra- HE REVIEWED the modern his- tory of Turkey from the disin- tegration of the Otooman Empire, the War of Liberation, the Re- public, which was founded in 1923 and the era of Ataturk, the Great Lca flnPn of the mnt imncor- and the promulgation of human rights and democratic freedoms in the Constitution. Webster pointed out that the People's Party, of which Ataturk was president, dominated Tur- irn..' "A1it 1'llif. f -n 1aOW1 +r Warty, which recently won an overwhelming victory at the Turkish polls, Webster explain- ed that "the platform of the Democrats is not radically dif- ferent from that of the People's Party."