W, jL L 4c ittL.. 46i ~aitF 000 00 o0 So SPANISH ALLIANCE See Page 2 Latest Deadline in the State FAIR FOUR PAGES VOL. TLXI.JNo. 26- ANN ARBOR. MICHIGAN. THURSDAY, AUGUST 2, 1951 FOUR PAGES YVL LAly AEI V. !yV-P -' "'^"-' ' Republicans Hit Truman On Controls Chrysler Seeks Auto Price Hike t WASHINGTON - (kP) - Michi- gan's Senator Homer Ferguson (R) accused the Administration yesterday of a "political double deal" on prices, and Rep. Halleck (R-Ind.) said President Truman has shown he would rather play politics than enforce the law. Those statements from the two sides of the capitol set the pitch for comebacks at Mr. Truman's assertion Tuesday that the new Controls Law does "damage" to American families. Both the Re- publicans said the President "has power to hold down prices if he1 wants to do it. MR. TRUMAN signed the act but said it is up to Congress to make "repairs" so Americans can be protected against inflation. Democratic supporters of the President's position had their say too, but didn't make a big thing of it. There was so little from that sector, that the effect if not the intent was to give center stage to a development along the lines of Mr. Truman's forecast of rising prices. That was a move by the Chrysler Corporation to get a 9% percent price boost on pas- senger autos. Many officials in the mobilization set-up tsaw it as the start of a price rise par- ade under the new law, less than 24 hours after it took effect. Industry sources have said most other car makers will apply for increases of around 10 per cent. Some OPS men said most or all of the petitions apparently must be granted under an amendment to the Controls' Law. * * * THAT PROVISION, one of Mr. Truman's special targets Tuesday, is the amendment by Senator Capehart (R-Ind.) requiring price ceilings to reflect rises in business costs, overhead and such up to July 26. Mr. Truman said it is "like a bulldozer, crashing aimlessly through existing price formulas, leaving havoc in its wake." An OPS spokesman said Chrys- ler did not file a formal applica- tion for the increase but con- ferred with officials of the agency unofficially and "made it known that it feels it is entitled to- and wants to get-the 91/2 percent increase." Chinese Students llies, Retirn to Odent Reds at Stalemate By DAVE THOMAS Daily Managing Editor Yesterday afternoon a young Chinese, a June graduate of the University, stepped out of the cool shadows of the old brick railroad station down on Depot street, bid farewell to a group of friends and climbed onto a train. Thus began a lengthy journey which will take him across a con- tinent to San Francisco and across an ocean to Hong Kong on his way back to the land of his birth, now$ ruled by Communists. ly intended for Nationalist China but not used were earmarked for 1 1ver Korean uff er ALREADY scores of American- educated Chinese have made this same journey and in the next year or so, additional numbers of the several thousand Chinese students now in this country will do like- wise. They will return for a variety of reasons: a few undoubtedly because of a sympathy for the Red regime; some because of a desire to be with their families; and more because they are being black- mailed. Reports from the Far East in- dicate that Communist China hopes to gain much scientific, technical and engineering skillR at the expense of American tax- payers by forcing students to re- turn to China through threats to their families. These gains will be partially at the expense of the American peo- ple since 2,817 of the approximately' 3,500 Chinese students now at- tending a total of 530 different3 American educational institutions are being supported by State De- partment funds which were orig- inally earmarked for the rehabi- litation of Nationalist China. Already back in Asia are 365 students. How many went to Com- munist China, how many went to Formosa and how many stayed in Hong Kong, the State Department does not know. One group of 27, including two who identified themselves as former University students, was recently escorted through Communist lines by Brit- ish police. They declared that they were going to "serve the peo- ple" of Communist China. * * * NOTIFIED of the names of the supposed University students by Far Eastern newsmen, University officials were unable to find any conclusive record of them. In addition Esson M. Gale, dir- ector of the University Interna- tional Center was quick to point out that statements of this type made at the point of entry into Red China should be taken with a grain of salt. He said that while some of the 200 Chinese students who attended the University in the last several years have undoubt- edly returned to China, but that he has no knowledge of any University graduate who is co- operating with the Red regime in an official capacity. Gale said that about 60 Chi- nese students were enrolled this summer and of that number he expected relatively few to return to China. "Only a trickle are going back," he said. * * * CHINESE students who wish to return to China have their ex- penses paid by the State Depart- ment as part of the Emergency Aid to Chinese Students Act which Congress passed in 1950 to aid Chinese students whose source of income was cut off by the Red victory in China. In all, about $10,500,000 of ECA funds original- this purpose. Those Chinese who decide to return to the homeland do so under their own volition. Since April, Chinese students who have completed their educations have been allowed to stay in this country if they can secure jobs. Local Chinese students are re- luctant to talk much about the situation since most of them have relatives or friends in China whose safety they are in fear of jeopar- dizing, but most of them who were available for comment said that they did not intend to return as things stood now. SPEAKING from more than 25 years' experience as a govern- mental official in China and as director of the International Cen- ter, Gale said "Even those who do go back may pay lip service to the regime because of political and social pressure, but they definitely will retain their esteem for the American way of life." Gale added that he thought that "the only hope of restoring our former relations with China lies in the thousands of American- trained Chinese who are now in* China. It is only a question of time when their -influence will be- come extremely potent in swing- ing China back into the Western orbit," he said.E "The present leaders of China have disappointed the Chinese peo- ple. They have not made good on their promises and furthermore, they never can. China needs sci- entific development, not political slogans," Gale emphasized. New'% Naval Chief Named By Truman WASHINGTON-(.l)-President Truman yesterday selected a salty seaman, Adm. William M. Fechte- ler, as his new Chief of Naval Operations. Fechteler's nomination was sent to the Senate with a request that he be confirmed as successor to Adm. Forrest P. Sherman. who died July 22 in Italy, where he was on a special mission. HoIVNOW. The Delta Gamma sorority house took on the appearance of a barnyard early yesterday morning with the visit of a dis- contented co*. The women, awakened by a rural "moo," rushed downstairs to find a heifer calf wandering from room to room. :." When police arrived to re- move the unwelcome intruder, the beast ran through an open rear door and disappeared. ., Line at 38th Unacceptable Says Acheson N. Koreans Veto UN Compromise UN ADVANCE HEADQUART- ERS, Korea-(P)-The United Na- tions and Communist delegates adjourned their critical talks on a Korean armistice buffer zone to- day and announced another meet- ing would be held tomorrow. The 17th meeting lasted one hour and 20 minutes. The dele- gates scheduled their next meet at 11 a.m. Friday (2 p.m., EST Thursday). POLIO VICTIM-Richard Brink, eight years old, who has been in a University Hospital respirator for a year, gets a visit from some of the top men of the new polio research center. Standing (left to right) are Dr. David G. Dickinson, full-time director of the center, Dr. Kenneth S. Lan- dauer of the National Infantile Paralysis Foun latien and Dr. James L. Wilson, who will have overall supervision of the center. Great Bri tain joins Atomic Arms Race LONI30N-(P)-Britain is now building atom bombs, a supply ministry spokesman disclosed yes- terday. This nation thus enters a field heretofore monopolized by the United States and Soviet Russia. Britain and Canada helped the United States develop the bomb in World War II. * s "THERE IS NO doubt at all we are proceeding with the develop- ment of all atomic weapons," the Supply Ministry said. The ministry is in charge of both atomic development and the' procurement of military weapons. Asked whether any bombs have been completed, the spokesman said "I don't know- and I couldn't tell you if I did know." The London Daily Telegraph re- ported a British test bomb soon will be explored experimentally at UI' Hospital To Establish oio esearch Center World News Roundup By The Associated Press WASHINGTON -- Senator Ful- bright (D-Ark.) proposed yester- day that Congress investigate a $565,000 RFC loan made to the American Lithofold Corp., of St. Louis in 1949. PEARL HARBOR-Five U.S. destroyers returning from Kor- ean war duty were in Pearl Har- bor yesterday.# NEW YORK-Paul Q Soffman, Director of the Ford Foundation, said yesterday he will lead a Foun- dation party on a three-week trip to Europe and Asia in connection with a $5,000,000 program of over- seas aid. DRIGGS, Idaho - Five girls were killed and several others critically injured yesterday when a lightning bolt exploded amidst a group of church camp hikers. WASHINGTON - Most Federal workers would get a pay raise of $400 a year under legislation ap- proved yesterday by the House Post Office and Civil Service Com- mittee. All Civil Service workers, leg- islative employes, foreign service .: personnel, medical and surgical department employes of the vet- erans administration and employ- es of the judiciary would get the raise, effective July 1. A - :Tw c y * r * the huge Woomera Rocket Range A HALE AND hearty man of in the central Australian desert. 55, Fechteler has spent most of The Supply Ministry declined to his life at sea. At present he is confirm this report. The spokes- Commander in Chief of the At- man said if any such test is made, lantic Fleet. Before his apoint- it will be announced to the House Establishment of a respiratory1 center at University Hospital to, provide facilities for polio re- search within a month was an- nounced yesterday by University otficiais. The Notional Foundation for In- fantile Faralysis, joir.tly sponsor- in; tl'e center with the hospital, has pimcnted a checi for $27,380 U.S. to alt Red Tariff WASHINGTON-(P) - Suspen- sion of trade concessions to 13 Communist lands, effective August 31, was ordered yesterday by President Truman. Red China is included among the areas to be denied reduced tariffs on their exports to the Uni- ted States. ACTING AT the direction of Congress, the Chief Executive is- sued a basic proclamation author- izing denial of low tariff benefits to the Soviet Union or any country under its domination. At the same time he sent a let- ter to Secretary of the Treasury Snyder directing that at the close of business August 31, all such benefits should actually be sus- pended for Albania, Red China, Estonia, Soviet controlled Ger- many, areas of Indo-China under Red rule, Communist Korea, the Kurile Islands, Latvia, Lithuania, Outer Mongolia, Romania, South- ern Sakhalin and Tanna Tuva. The proclamation paves the way for future action against Russia and its Eastern European satellites, including Czechoslo- vakia. State Department officials said that in 1950 American exports to the countries involved in yester- day's list amounted to $45,000,000 and imports from those lands to- taled about $150,000,000. A much smaller volume of trade has been going on between those areas and the United States this year. to Dr Albert Kerlik.)wske, director; of tb hospital. the cFr'ter will be under the; supervision of Dr. James L. Wilson, chairman of the oe". atrics and commrincable disease department of the medical school Dr. David G. Dickinson wil De the full-time director. THIRD OF ITS kind in the coun- try the center will have a three- fold purpose, in addition to pro- viding facilities for the complete car- ofsa limited number of polio patients who require iron lungs. 1. The center will study the ef- fects of polio on a victim's physio- logy and ways to remove these patients fiom respirators as soon as kosshile 2. It will provide teaching faci- ities for physicians, nurses an i physical therapists and extensive training for resident doctors and medical students. 3. It will study tne value of new respiraio- equipment for locating polio patients and will attempt to establish a more rational basis for the use of these aids to breathing especially in the early stages of breathing difficulty. M m * SIMILAR CENTERS financed by Vie National Found ition were op ened last year at Children's Hospi- ta, of Eoston .at Wellesley Hills, Mass., kad at Jefferson Davis Hos- pital in Houston. The National Foundation has placed ircreased emphasis upon the r-roblem of respiratory polio recently because of increased inzi- dence of the disease in the last yhree ye s. Britain Asks Egypt To Lift Canal Ban NEW YORK-(P)-Britain told Egypt yesterday either to lift her restrictions against Suez Canal shipping or face possible action by the United Nations Security Council. Britain's views were outlined by Sir Gladwyn Jebb after Egypt's Mahmoud Fawzi Bey again sought to justify his country's policies as necessary to prevent Isreal from building military strength for use against Egypt. U.S. AirForce Chief Asks 'udg~et Hike WASHINGTON-()-Gen. Hoyt S. Vandenberg said, in testimony, made public yesterday, that the United States must match Russia's growing aerial might or reconcile itself to Soviet domination of the world's air. The Air Force Chief of Staff said that "in a few short years" Russia not only has come into pos- session of the atomic bomb but has developed an air force larger than this country's-and one that is steadily improving. * * - . FURTHER, RUSSIA is develop- ing "the techniques of long-range air power," Vandenberg told the H o u s e Military Appropriations Subcommittee on July 12, right after his return from a European trip. Portions of Vandenberg's testi- mony were made public yesterday by the subcommittee which has been holding hearings of the 1952 budget. But Chairman Maron (D-Tex.) declined for "security reasons" to release a detailed out- line of Russian strength by Secre- tary of the Air Force Finletter earlier in the hearings. The U. S. Air Force under its 1952 budget proposed to spend $4,- 957,000,000 to finish financing 3,052 planes now on order and to place orders for 5,604 new ones. It seeks nearly as much-$4,197,- 000,000-for spare parts. Another witness before the sub- committee, Vice Adm. John H. Cassidy, testified that the Navy wants $4,497,869,000 for the next big phase of its aviation buildup. Cassidy is head of the Naval Air Force. Vandenberg bluntly told the sun.~- committee "the choice we face is plain enough. Either we match him (Russia) in the air or we must reconcile ourselves to his spreadnig air dominance over the globe." October Draft Set at_41,000 WASHINGTON -(P- The De- fense Department issued a draft call yesterday for 41,000 men in October, the largest monthly quo- ta since March. Thirty-six thousand will be in- ducted into the Army and 5,000 into the Marine Corps. The Marines resorted to the draft in August for the first time since the outbreak of fighting in Korea. By the end of October they expect to get 18,180 men in this manner. Next ononth the Army is to get 28,000 men through the draft and the Marines 6,180. The figure last March was 80,000, all entering the Army. BEFORE LEAVING for the ses- sion in Kaesong, Vice Adm. C. Turner Joy, Chief UN delegate, was informed of a statement made in Washington by Secretary of State Acheson in which he said the Communist ciemand for a cease fire along the 38th parallel was not acceptable. The official Army announce- ment on today's session gave no indication whether any progress had been made toward settling the explosive issue. The North Korean official radio angrily rejected the Al- lied proposal that the buffer zone be along the present bat- tleline which is mostly in North Korea. North Korea wrould never accept that, the radio s6l. Eleven UN delegates and staff aides arrived in Kaesong by heli- copter at 10:35 a.m. for the 17th meeting. It began 25 minutes lat- er. Both sides were fully aware that continued controversy on the buf- fer zone could break up the talks, or a continued deadlock might bring another recess. .* * *' THE PYONGYANG radio claim- ed the UN truce team received "orders from above" to set the demarcation line inside Red ter- ritory. It asserted that if the talks broke up it would be "their (Amer- ica's) responsibility." At Wednesday's 16th meeting Vice Adm. Joy made a "patient" analysis of Communist arguments and told why the Allies could not accept them. Joy has held out for a 20-mile wide buffer which would give both sides a line that could be defended. While the precise location of such a line has not been offici- ally announced it was believed to approximate present battle posi- tions. Pyongyang radio said the line proposed by Joy would run from Kosong on the east coast to the eastern tip of the Ongjin Penin- sula on the west coast. Kosong is 27 miles north of the 38th paral- lel. THE CHIEF UN spokesman at the truce talks, Brig. Gen. William P. Nuckols, quoted Joy as telling the Communists Wednesday: "Since this is a military ar- mistice conference we are inter- ested only in military realities." Communist Lt. Gen. Nam II apparently had argued that any- one who really desired an ar- mistice had no need for a de- fense line, After the meeting Wednesday, the UN command communique re- ported "the basic views (of both delegations) remained unchang- ed." While the talks were on, Chin- ese-built log rafts with protruding spikes floated down the rain swol- len Injin river and knocked out a pontoon bridge used by the UN convoy on its daily trips to Kae- song. It was not known whether this was deliberate or an accident. A helicopter airlift was required to return personnel to the Allied advance base, and will be used un- til thm h+irgP i retnd , ment as the Navy's senior officer he was slated to become Supreme Commander of all Allied Naval Forces in the North Atlantic. The White House announced Fechteler's appointment immed- iately after he had called on Mr. Truman with Dan Kimball, the new Secretary of the Navy. i t t 'OUR ASIATIC POLICY': Reischauer Will Close world Crisis Lectures of Commons ahead of time by Prime Minister Attlee. 'Cut Proposed 'In Foreign Aid WASHINGTON-(A)-Chairman Richards (D-S.C.) of the House Foreign Affairs Committee moved yesterday to cut $700,000,000 out of the Administration's $8,500,- 000,000 foreign aid program. As his committee began closed- door consideration of the big bill, Richards introduced analternate measure limiting to $7,800,000,000 American economic and military aid to Allied nations during the next 12 months. * * 'I RICHARDS said he would resist any attempts to trim the program below $7,800,000,000. "Everybody knows we are going to Europe to fight," he told re- porters. "The Atlantic Pact and everything else screams that we are going. "We can get more dollar by dollar defense out of this bill than out of our defense bill. You can train a division abroad cheaper than in this country." he said. * 0' Prof. Edwin O. Reischauer, pro- fessor of Far Eastern Language atI Harvard University will speak on "Rethinking Our Asiatic Policy," at 8:15 p.m. tonight in the Rack- ha'n Lture Hall as the concuct- ing lecturer in the Summer Se - si-n series, "The United States in the W(rcl Crisis." Prof. Reischauer, who was born in Trcyo of missionary parents, received an AB degree from Ober- lin College in 1931 and a MA from Harvaid University t 1932. He completrea the requirements for q Tnnt.- r Pnnnhv aripg' row SOME STILL MISSING: Jewels Returned to Hesse Royalty >> FRANKFURT, Germany-(P)-I When the war en! v the castle All wtmbers of the ziesa. fare-