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Britons Find U.S.
Guilty Of Spying
LONDON (AP) Three men and
two women including an Ameri
can couple today were convicted
of stealing royal navy secrets for
the Soviet Union and sentenced to
prison terms ranging up to 25
years.
Defendants in the trial in the
Old Bailey Court and the sen
tences handed down by Chief Jus
lice Sir Hubert Lister Parker
were:
Gtts 25 Years
Gordon A. Lonsdale, 37, de
scribed by a Scotland Yard super
intendent as probably a member
of the Soviet intelligence service,
25 years.
Peter J. Kroner, 50, an Ameri
can who the FBI says is Morris
Cohen formerly of New York, 20
years.
His wife, Helen, 47, 20 years.
Scotland Yard said she is the for
Soviet Union Rocks
New Test Ban Talks
- GENEVA (AP) The Ameri
can and British delegations at the
nuclear test ban talks concluded
today that the Soviet Union has
rocked but not wrecked the pro
tracted treaty negotiations.
Spokesmen said the Western
camp intends to push ahead with
the half-dozen new concessions
thev offered the Russians in an
attempt to get a pact concluded
quickly.
There was widespread disap
pointment in Western circles that
the introduction of this program
at the conference Tuesday coin
cided with what the West regard
ed as two steps backward by So-
County Facilities
For Juveniles
To Be Studied
The Douglas County Juvenile Ad
visory Council decided Tuesday
night to conduct a full-scale study
of needs for improvement of ju
venile detention facilities at the
Douglas County jail.
Ralph Peterson of Winslon was
appointed to head a committee to
conduct the study. He will appoint
two other members of the execu
tive committee to help him.
Jail Improvement Needed
The council has also set its sights
on finishing the study and mobil
izing for recommendations to the
Douglas County Budget Committee
in 1962.
Julian Helleck, county juvenile
department director, insisted at the
meeting that the need for improve
ment of present facilities in the
jail are great. He said some times
four and five youths must be hous
ed in the same cell. He also claim
ed the facilities are not safe for
despondent youngsters.
"One of these days, something is
going to happen. One of the kids
will slash his wrists with broken
glass from a window or hang him
self from one of the bunks. Then
it will be easy to get detention fa
cilities," Helleck concluded.
Circuit Judge Charles Woodrich
said he would support the move to
improve present facilities, but he
did not think construction of a new
building for detention was worth
the cost.
Cost Heavy
L. A. Suiter, who was not able
to attend the meeting, sent word
that any addition to the present jail
atop the courthouse for juvenile
detention would cost about $25 a
square foot.
It was decided bv the executive
committee it will stage a public
meeting in June. The spotlight at
the meeting will be focused on slate
juvenile institutions.
Family Life Series Session
Draws About Fifty Persons
About 50 people turned out for
the spirited first session of a four
part series on the problems of fam
ily life.
The series is being sponsored by
a Roseburg committee and the E.
C. Brown Trust of Portland. Moder
ator of the first session, devoted
to management of money in the
family, was Wayne Schulz, YMCA
secretary and a member of the
sponsoring committee.
After a movie on the subject of
finances, the audience was divided
into groups w hich formulated ques
tions. These questions were then
directed to the whole audience
again.
'Retreading Mama'
One of the questions drawing ma
jor Interest was "How much insur-
The Weather
AIRPORT RECORDS
Showers end partial clearing to
night end Thursday. A little cooler
tonight.
Highest temp, last 34 hourt 44
Loweif temp, last 24 hourt ... 48
Highest temp, eny Mar. ('40) 81
Lowest temp, eny Mar. ('54) .. 19
Precip. last 24 hours .28
Precip. from March 1 5.48
Preeip. from Sept. 1 J'.47
Eicets from Sept. 1 S.45
Sunset tonight, 4:27 p.m.
Sunrise tomorrow, 4:12 1
t
mer Lorna Petra, born in Massa
chusetts. Harry F. Houghton, 55, British
employe of the secret Royal Navy
Research Station at Portland, 15
years.
His fiancee and fellow worker
at the station, 46-year-old Miss
Kthel Gee. 15 years.
Plead Innocent
All five had pleaded innocent.
Discussing the background of
the defendants in court before the
sentences were imposed, Scotland
Yard Supt. George Smith said the
Krogers were linked by U.S. au
thorities with Soviet master spy
Rudolf Abel four years ago.
Smith said Abel later sen
tenced to 30 years for sending
U.S. atomic secrets to Moscow
had photographs of the couple
among his of loots when seized in
New York in 1957.
viet Delegate Semyon K. Tsarap
kin. Asked to define the situation
now, an American source told
newsmen: "One has no reason to
assume that this conference has
been reduced to a state of wreck
age." U.S. Delegate Arthur H. Dean
and British Minister of State Da
vid Ormsby-Gore intend to elabo
rate on their proposal for a three
year moratorium on small under
ground tests and the scientific
program related to it.
Moratorium Proposed
Earlier the Western Powers had
proposed a 27-month moratorium
while the Russians asked for four
years.
The basic idea of the moratori
um is to gain time so scientific
research can produce some solu
tion to the problem of how to tell
the difference between small un
derground atomic explosions and
earth tremors.
When the conference resumed
Tuesday after a 3'i-month recess
Tsarapkin produced two diplomat
ic explosions of his own.
First he warned the U.S. and
British delegations that more ex
plosions of atomic devices by
France could kill off any chance
of ever getting a nuclear lest ban
treaty.
Board Proposed
Then he demanded that the top
executive post in the proposed
control organization be filled by
three members rather than one
man. The three-man board would
be made up of a Communist, a
Westerner and a neutral giving
the Russians the same veto they
want to gel in the U.N. secre
tariat. The Western powers always
have visualized one, neutral scien
tist at the head of the control or
ganization. Long Night Looms
For South Polers
Twenty U. S. Navy men, includ
ing former Roseburg resident Dav
id Sylwestcr. gathered at the South
Pole Tuesday night in a 25-mile
an hour wind and a temperature
of 63 degrees below zero and low
ered the U. S. flag for the last
time this season.
Deep Freeze headquarters in
Christchurch reported the cere
mony marked the official begin
ning of the antarctic winter. The
South Pole remains in complete
darkness until late August.
Sylwester, a former News-Review
carrier, is the son of the
Rev. and Mrs. W. A. Sylwester.
The Rev. Mr. Sylwester was minis
ter at St. Paul's Lutheran Church
in Roseburg from 1931 to 1959 when
he and his family moved to another
pastorale in Everelt, Wash.
ance should a breadwinner carry?"
Dr. Ted Johannes, director of the
Brown trust and an adviser for the
scries, told aboul a new concept of
insurance which he described as
"retreading mama." He said it
was worth considering that money
be spent to teach the women of
the house some type of job which
would increase her income capa
cities if the husband should die.
He said minimum insurance could
include $1,000 for funeral expenses,
S2.500 lo $4.0uo for last illnesses
and enough money lo tide a family
over until the woman gets a job
or remarries.
Also discussed were installment
buying and how much a family can
aflord to carry, spending attitudes
and managing finances of families
in which the breadwinner works
'only part of the year.
J How To Get Along
I The session was designed to dis
miss alternate ways of solving com
1 111 on financial problems of famil
ies
The Family Life series contin
ues next Tuesday at 8. again at
the Y.MCA. This second session
will be devoted lo the subject of
getting along with friends and rela
tives. .Moderator will be Jark Sum-
merfield, administrator of the
! Douglas County Welfare Depart
ment and also a member 01 tne
committee. He will be assisted by
Hush Kyml, another committee
' member.
Couple
Charges
The stiff sentences, one after
the other, brought muffled sounds
of surprise from the courtroom
audience.
On the official secrets statute
itself, court attaches had said the
normal sentence on conviction
would have been three to seven
years.
Bui Lord Parker emphasized
that he saw the crime as a viola
tion of Britain's common law.
"For a common law misde
meanor there is no maximum sen
tence," the chief justice said.
The main courtroom of the his
toric Old Bailey was packed for
the closing session of the eight
day case presented by Scotland
Yard's top secret agents after
months of stalking and surveil
lance. The prosecution had charged:
That Henry F. Houghton, 55, a
naval clerk, and his mistress,
Ethel Elizabeth Gee, 46, gave de
tails of the royal navy's under
water warfare plans, including
plans of the atomic submarine
Dreadnought, to Gordon A. Lons
dale, 37, variously described as a
Canadian, an American and a
Russian.
That Lonsdale conspired with
Peter Kroger, 50, and his wife,
Helen, 47, to transmit secrets to
Moscow from the Krogers' subur
ban home.
In the home, the agents found
a radio transmitter on a Moscow
beam, thousands of American dol
lars, false passports, microdotting
equipment and various gadgets
with false compartments for con
cealment. The FBI in Washington has
identified the Krogers as Morris
Cohen and his wife, Lola, Ameri
can citizens who had once lived
in New York.
Civil War Group
Defies Kennedy
WASHINGTON (AP) The Civil
War Centennial Commission has
brushed aside a suggestion by
President Kennedy it should act
to prevent racial discrimination at
Us annual assembly in Charles
ton. S.C.
The state commissions from
New Jersey and several other
states have said they will boycott
me April 11-14 sessions unless as
sured Negro members may tat
lend all functions.
The President sent a letter to
the national commission last week
alter complaints arose that a Ne
gro rnember of the New Jersey
commission was denied a room
i in the hotel headquarters for the
National assembly.
Kennedy said that the commis
sion, as a body created by Con
gress, had an obligation to avoid
racial discrimination in its activi
ties. After a long, closed meeting
Tuesday, the commission's execu
tive committee said it had no au
thority to require Charleston ho
tels to provide rooms for Negroes
allending the assembly.
Rep. William Ai. fuck. D-Va.,
chairman of the executive com
mittee, said the commission feels
"that the basic law by which it
was created gives it no legislative
or executive power in matters
concerning the actions of local,
civil, patriotic or historical groups
in arranging centennial obsetv-
snrnc " I
County 'Hams' Aid
Search Forjudge
Three Douglas County "ham"
radio operators have been on stand
by duty at their sets this week to
help if needed in the search for
the flying Oregon circuit judge who
vanished Sunday on a flight from
Lebanon to his home at Newport.
Missing is Circuit Judge Richard
Anderson, 38.
Russ Worthlcy, one of the ama
teur radio operators, said today he
and three other members of the
Umpqua Radio Club have been
standing by in case it is necessary
to take a portable radio station
unit into a crash area. They have
offered the portable unit for use if
the searchers need it. The offer
was made to the state Board of
Aeronautics which is directing the
search.
The three county men are Worlh
ley. Bob Dorman of Oakland and
Doug Hanson of Roseburg. All are
members of the Oregon Emergency
Net, which has been mobilized for
civil defense use.
House Told
SALEM (AP)-The House State
and Federal Affairs Committee
was told today that the trading
stamp regulation hill would force
all stamp companies out of busi
ness. Supporters argued lhat ils only
purpose was lo protect consumers
from irresponsible companies thai
go out of business so Ihey won't
I have to redeem the stamps.
The supporters lined up a solid
I front of grocers, gasoline dealers,
i druggists and other retailers. The
j opposition was headed by Sperry
1 & Hutchinson Co., largest of the 435
1 stamp companies doing business
in the country.
R. R. Bullivanl. Portland, S 4 11
attorney, said the hill would
"sound the death knell" for the
stamp companies because of its
provisions outlawing exclusive
stamp franchises, and requiring
lhat the ttamps be redeemed at 1
Established 1873 30 Pages
Adlai Condemns
Hope Fades
To End Cold
War Debate
UNITED NATIONS, N.Y. (AP)
Adlai E. Stevenson's sharp con
demnation of the new Soviet at
tack on the U.N. Congo operation
was seen today as a warning that
the Kennedy administration won't
shrink irom a cold war slugging
match in the General Assembly.
Any hopes that world tensions
might be eased by avoiding de
bate on cold war issues in the
assembly faded Tuesday when So
viet Foreign Minister Andrei Gro
myko renewed the Soviet attack
on Secretary-General Dag Ham-
marskjold and U.N. actions in the
Congo. .
Cold War Reopens
"We had hoped at least that the
Russians would suspend the cold
war for a while," Henry Ford
Cooper of Liberia told a reporter,
but Gromyko s biting attack on
Hammarskjold and the United Na
tions opened it all up again."
Speaking at the beginning of a
new assembly debate on the Con
go, Gromyko once again accused
Hammarskjold of organizing the
murder of Patrice Lumumba, de
manded the secretary-general's) re
placement by a three-man direc
torate, and called tor an end to
the U.N. Congo operation within
a month.
Non-Communist delegates es
pecially from Africa and Asia
were openly impressed with Stev
enson's immediate reply, lie said
Gromyko spoke "in the worst and
most destructive traditions of the
cold war."
The U.S. delegate said Gromy
ko's "insensate attacks" on the
secretary-general imperiled the
"very survival of the United Na
tions as an effective operating in
strument tor peace and progress.'
By demanding Hie U.N. with
drawal trom the new African na
tion, Stevenson said, the Soviets
were trying to substitute anarchy
for "constructive efforls of the
world at large to achieve peace
and reconciliation.
Stormy Sessions Due
Since the assembly session re
sumed on March 7, Stevenson
and Gromyko had been sparring
lightly in public exchanges while
negotiating in private to see if
they could agree on dropping cold
war items from the assembly
agenda. Tuesday's sharp ex
change pointed to stormy sessions
in the weeks to come.
Officers Charged
In Tower Collapse
WASHINGTON (API Air
Force Col. William M. Banks has
been accused by flie Air Force of
involuntary manslaughter in the
collapse Jan. 15 of a radar tower
off the New Jersey coast.
Twenty-eight men died when the
6.000-tnn Texas Tower tumbled
into the Atlantic during a howl
ing gale.
The Air Force first announced
that Banks had been accused of
"culpable negligence" and dere
liction of duty. Two other olfi
cers, Maj. William R. Sheppard
and Maj. Reginald L. Slarke, also
were accused of dereliction of
duty.
The three officers exercised
varying degrees of command over
the radar tower 85 miles south
east of New York City .....
The Air Force Tuesday said that
the charge of "culpable negli
gence" could be more specifically
phrased as "involuntary man
slaughter." The charges were brought bv
Maj. Gen. Henry Vicelho, com
mander of the 26th Air Division
at Hancock Field, Syracuse, N.Y.,
based on the findings of a court
of inquiry. A more complete in
vestigation of the disaster now is
under way.
All three officers have been re
lieved of their duties lo prepare
their detense to tne charges.
Proposed Bill Would Force Out Stamp Firms
leash value equal to the retail val -
ue of the merchandise they now
give. Some companies now also
.redeem in cash.
But Warren McMinimee, Tills
I mook. former slate senator, said
I the bill's purpose is lo save "Ore
!gon retailers and stamp savers
from losing millions of dollars to
I irresponsible stamp companies."
1 He said many of these companies
have gone out of business without
redeeming the stamps
BuUivant explained that the
tamp companies make their prof-'
it through the diflerence between'
the cost of the merchandise they
j distribute, and the retail value. He
said that doing away with rxclu
sive franchises would make it im
possible for the companies to oper
ate The hearing, which had been
billed as one of the higgent, si
ll acted only about 100 persons.
i
ROSEBURG, OREGON
Shopping Center Slated Here
L - ''iky,'-
sW Kd i ri 1 jri I ft . ,
i f p. If A w ;. iMiSj li :g
iter Hiii '1 ae'eeS
A REMINDER OF THINGS post and present is shown here by the blast-devastated in
terior of the Central Junior High School. The structure was one of the hardest-hit during
the Aug. 7, 1959 dynamite blast in Roseburg which also claimed 13 lives. The structure
will be entirely razed now and a shopping center developed by the Roseburg Plaza Co.
A contract on" general construction is expected to be awarded by the firm in early April.
(See other picture Page 3). (News-Review Photo)
Tugman Heads
Library Board
William M. Tugman of Gardiner
has been elected chairman of the
Douglas County Library Board.
He succeeds Gordon M. Carlson
of Roseburg, who had served as
chairman since 19S3. Carlson was
the first chairman of the board.
The Roseburg attorney has been
elected to the office of vice presi
dent. Prepares Budget j
Mis. Hal W. Schiltz of Myrtle
Creek was re-elected secretary, a
post she has held since the board
was created. Airs. Jack Randall nl
Drain continues as treasurer, and
Mrs. Joe Withers of Glide fills mil
Hie board.
The hoard has also been prepar
ing a budget lor the lil-f)2 fiscal
year to be submitted to the county
Hunget Board. Included in the
budget is a new salary schedule
for library professional help. The
board says the new schedule is
aimed at bringing salaries up to
the level of oilier professional peo
ple in the county.
The budget will also include a re
quest for a children's librarian lo
serve throughout the county and
the addition of one clerk.
The hoard will ask for SIIO.OOO
for books and periodicals. This is
an increase of $5.UU0. The board
says that in the five years of li
brary operation, circulation of
books has climbed to two million.
Also lo be requested are several
items of furniture and a second
bookmobile. The board says the
present bookmobile has traveled
some 80.000 miles and must he
limited to stops in any given com
munity because of the heavy de
mand. Hatfield, Appling Aid
In Planting Of Trees
SALEM fAP) Cov. Mark: O.
Hatfield and Secretary of Stale
Howell Appling Jr. Tuesday
joined in a tree planting cere
mony at Hie slate capilol in Sa
lem. The officials planted a western
hemlock received as a gift from
Gov. Albert Rosellini of Wash-
i ington. The wcslern hemlock is
Mhe Washington siaie tree.
IOnly
few of them were house -
wives. dealers are uireaiencn wnn ruin Harold Wendel, president of Lip-
Wallace Brown, Portland, said , because ot price cutting and w . c , Pnr. n
he had been a manager for four stamps. man, wone and Co. In Portland,
stamp companies in the Wesl, audi BuUivant, leading off I lie opposi-l""1" "e opposes government inter
said that less than half of the lion, said he "objects lo a man-1 fenng with business. He said his
stamps are redeemed. But an
SicH official said its redemption
rate is 98 per cent.
Brown, pleading or passage of
Ihr hill simiI the sinmn mninanins
put pressure on retailers to lake
their Mamps bv holding out the!
1 possibility of giving the slamps lo
his competitor.
Strong support for the bill was
'given by Euucne liwe. Astoria
state president of the Independent
itiurria ss.stii-imiuii, in- hi iu
many housewives favor regulation
lo protect them from loss. He said 1 said that his company spends $334,-
that Sft million worth of stamps'OOO in Oregon each year for trans-
are sold each year in Oregon. Iportalion alone. He said a mer-
Virgil Rukke, Portland, presi-i chant should investigate e stamp
dent cf the Oregon Gasoline Deal- company 1 Iinancial condition be-
t
WEDNESDAY. MARCH 22,
Gromyko's Attack
.'. 1
u Stf
- iu I
Ss-
Sutherlin Area Residents
Talk Recreation District
The differences of opinion well
ing up as the result of the forma
tion of the Sutherlin Valley Park
and Recreation District can be
worked out amicably.
This was- the conclusion made
by the two Eugene men who ran
into the same kind of opposition in
formalion of Hie River Road Park
and Recreation District near the
Lane County city.
Crowd Of 150
The two, James Dickinson and
Bill Bennett, were featured speak-
lers at a public meeting of the
Sutherlin district Tuosday night at
Sutherlin High School. The meet
ing drew a crowd of 150 people.
Its purpose was to clarify mis
understandings, according lo the
board members.
Considerable opposition to I h e
district was voiced at the meet
ing particularly from those living
considerable distances from Suth
erlin. The heaviest pockets of re
sistance lo the district have come
Commerce Department
Says Gold Flow Stopped
WASHINGTON (AP)-The now
of gold from the United States
"for some weeks now has stopped
entirely." according lo the Com
merce Department.
In an encouraging report on Hie
nation's balance of payments, the
department's Office of Business
Economics said Tuesday that the
U.S. payments positions has
shown "very substantial improve
ment" from the deficits which
caused a serious drain on gold
slocks for more than two years.
The department, added that the
gold price in the London market
has returned to the normal range
and speculation in gold has been
dampened.
The U.S. gold outflow was halt
ed in the last week of February
for the first time since last July.
Harriman, Nehru Meet
NEW DELHI, India fAP)Rov
Ing U.S. Ambassador W. Averell
Harriman had a 32-minute meet-
ng Willi Prime Minister Nehru
today and delivered a personal
1 message irom rresineni nenncuy.
lers Association, said independent
I date that would make the stamp
I companies supply their stamps to
I all comers. It is the traditional
right of a business man lo do
business with Dconle of his choice,
Stamps would lose their business
appeal if we didn't have exclusive
'franchise.
' BuUivant called it a price-fixing
bill, and asked why the stamp
companies should be singled out;
for regulation.
Joe G. Beinert, San Francisco,
western vice president for S It H.
1961 68-61 PRICE Sc
Js'reiE'. ' ts.
Tn.mr 1 ,"
from Fair1 Oaks and Nonparlel
Tim nnnnsilinn puma uhitnt whnn
it wa ininnimi'iifi a tn wnnlH
have to be levied to cover costs
of a swimming pool for the dis-
trict.
The two Eugene men said they
had met the same kind of opposi
tion when they were involved in
helping form the district near Eu
gene. They said it is good to have
the opposition expressed early in
the operation of the district so ac
ceptable pornosals cun be worked
out to the agreement of all people
involved.
The men also explained the state
law on formation and operation
of the district. The reported taxes
for the district must be limited to
10 mills. (It has been estimated a
swimming pool would cost $50,000.)
Annexation Vote
Slated Thursday
Residents of the Keasey-Calkins
annexation area in suburban north
west Roseburg will go In the polls
Thursday to vole on whether or
not they want to join the City of
Roseburg.
The polls will he at the home of
Curlcy Craig, 1572 NW Kcasey Rd.,
and will be open from 2 to 8
p.m. All residents of the area who
were legal registered voters as of
Feb. 23 may vote in this election.
According to Roseburg City Man
ager John Warhurton, the election
was brought about by requests of
residents of the area for sanitary
sewer facilities. He said lhat if the
election is successful, a profession
al engineering firm from Corvallis
will he called in immediately to
do the design work and a contract
should be let this summer,
Budget Session Set
The Roseburg School
Committee will meet in
Budget
special
session Thursday night to try and
wind up deliberations on the 1961-
62 school year budget.
The committee had been sched
tiled to complete its budget study
Tuesday night, but a quorum of
members could not be obtained
and the meeting was postponed.
1 fore using Its stamps.
store hasn't raised a single price
because of giving Green Stamps.
nepresemauves ot tne Portland
Retail Clerks Union and the Broth
ernoon 01 Kaiiroad irainmen also
opposed the bill, saying it would
.deprive people of jobs.
Mrs. C. V. McCord. Princville,
said trading stamps "are like hav-
1 ing Santa Clans all year. They
promote the spirit of fellowship'
when women save them for their
churches and other organizations,
Then Mrs. Adolph Thompson,
Lebanon, told of getting stamps
on tOOO worth of drugs she buys
each year for her paralyzed son.
She uses the premiums lo make
him mora comfortable, she said.
New Agency
Would Direct
Lending Plan
WASHINGTON (AP) P.nci.
dent Kennedy asled Congress to
day lor a draslicallv revamoed
long-term foreign aid program
the most sweeping overhaul since
the Marshall Plan started in 1948.
It would include sr .3 billion in
five-year loan authority to meet
"the crucial decade of develop
ment" abroad.
No Price Tag
The President put no over-all
price tag on his program. But of
ficials figured the fue-vear total
would run several time's the S7.3
billion proposed for economic de
velopment loans overseas.
For the coming year, the pro
gram would equal the $4 billion
sought by former President
Dwight D. Eisenhower for foreign
aid.
In a special message to Con
gress, Kennedy said, "it will both
befit and benefit us to take this
slop boldly. For we are launching
a decade of development on which
will oep.'nd, substantially, the
kind of world in which we and
our children shall live."
Golden Chance
Kennedy said the 1960s offer a
golden chance to put more tlian
half of the peoples in underdevel
oped lands on their own feet
economically and the rest closer
to the day when they no longer i
need aid.
But without this massive out
side help from the United States
and other free industrial coun
tries, he said, resulting chaos
abroad would cost even more and
"would be disastrous to our na
tional security, harmful to our
comparative prosperity and offen
sive to our conscience."
The President hoped to over
come opposition in some congres
sional quarters both to the monev
amount and to his loan systems
which would bypass congressional
appropriations procedures. Kev
legislators rebuffed Eisenhower
on similar counts in the past.
New Agency Proposed
Kennedy proposed:
1. Lumping most existing eco- '
nomic aid programs into a single '
new agency whoso boss would re
port directly lo the secretary ot
aiuie aim me rresmeni.
Labeling the present setup "bu
reaucratically fragmented, awk-
wam and slow, competing and
confused," Kennedy proposed that
the new agencv take over: "The
multi-purpose international Coop
eration Administration (ICA), the
development Loan Fund (DLF)
easy-term loan agencv. the fond
for Peee farm surplus disposal
Program . and the new Peace
v-oips or voiumcers lor overseas
work.
2. Five-year authorization for
the new aid agency plus five
year authority to borrow from the
Treasury to make loans for eco
nomic projects abroad, $900 mil
lion in the fiscal year starting
next July 1 and S1.6 billion an
nually for the following four
years. '
50-Year Loans
The Joans would run up lo 50
years, at no interest or at low
rates or perhaps up to 2 per cent,
and would be repayable in dol.
lars. , s
Kennedy saw long-term authori-
(y. rather than the present vpar.
by-year appropriations system, as
me core ot nis plan to tackle for
eign economic problems which he
said require long-range solutions.
"A program based on long-range
plans instead of short-run crises
cannot be financed on a short-
term basis," he said.
3. Arms aid. now runnim? abnnf
$2 billion a year and administered
through the Pentagon, would be
separated from the annual foreign
aid package and placed in the
military budget.
4. Carefully tailored programs
for each country receiving aid.
based on over-all needs and local
resources rather than unrelated
projects, with special favor to
ward those nations undertaking
social and economic reforms.
Repayable In Dollars'
5. Emphasizing loans repayable
in dollars, doing away with most
of the loans repayable in local
foreign currencies now handed
out by the DLF.
6. Encouraging other Industrial
nations to share more of the aid
burden.
For the fiscal year beginning
July 1, Kennedy said that while
he would stick with Eisenhower's
$4 billion spending request he
would shift sharply the use of the
funds, including transferring $200
million from military lo oconomic
aid.
Elsenhower proposed spending
$1.8 billion for arms and $2.4 bil
lion for various types of economic
assistance.
Under the Kennedy program,
the arms figure would be cut to
SI 6 billion, $900 million would be
spent under the long-term develop
ment loan plan, and tho remaining
$1.5 billion would go for technical
or Point Four aid, outright gifts
and assorted projects including
the Peace Corps.
Total amounts for following
years are not yet drawn up but
could well exceed the Eisenhower
figure, authorities said.
Levity Fact Rt
k(tnt
j
JBFRejzenstenJ
The U. S, and the Soviet
have set a date for a meet
ing on the subject of disarma
ment. They still have to reach
an agreement on what sub
ject to disagree to maintain
the status quo, jj