Wilson Says Armed
Services Keep Budget
WASHINGTON i.T Secretary
of Defense Wilson was reported
Wednesday to have concluded
after a new survey that it would
lie militarily unwise for the
armed services to cut their spend
ing any further this year.
Informants paid Wilson had
assured Secretary of the Treas
ury Humphrey and Budget Di
rector Howland Hughes that the
Defense Department would con
tinue every effort “look under
every log" for more economy, as
Humphrey has asked all govern
ment departments to do.
Cut Militia to Save
But they said the Pentagon
chief also informed the admini
stration's fiscal leaders that the
only way savings approaching a
billion dollars could be brought
about in the military establish
ment would be by:
1. Cutting down the numerical
armed forces strength, called the
“force level."
2. Reducing contracts for
planes, ships and other weapons
and equipment, or
3. Through a combination of
both.
Wilson took the stand against
a further cutback in spending
after reviews of the situation
with each of the service secre
taries. top military commanders
and his own fiscal experts.
Target is Defense
The Treasury and budget chiefs
hope through economies to wipe
out a prospective $1,750,000,000
deficit by the end of this fiscal
year next June 30, bringing the
budget into balance. The most
likely target for the bulk of that
savings was the Defense Depart
Re-Run Chances
Discourage GOP
WASHINGTON (.V—Most Re
publican leaders are reluctant to
concede that President Eisen
hower may retire to private life
because of his heart attack. But
at least a dozen are resigned to
a belief he will do so.
Out of 115 GOP leaders
reached by the Associated Press
Wednesday, only a handful were
willing to express a firm opinion
whether the President should or
should not run for a second term.
The vast majority said it is
too early to tell, and that the
decision is one for Eisenhower
himself and his doctors and fam
ily
Few took note of reports from
Denver that the consensus of
those around Eisenhower is that
he will seek to serve out, his
present term but that it is high
ly unlikely he will be a candidate
again.
The AP polled GOP state chair
men. national committeemen and
national committeewomen. They
were asked: ‘‘Do you believe Eis
enhower should run again?”
They were asked also to name
the strongest candidate the GOP
could nominate in the event he
does not.
Vice President Nixon was the
man mentioned most frequently
as the strongest candidate next
to Eisenhower. Some of those
naming Nixon refrained from en
dorsing him personally, but
termed him the best known pos
sibility. A number said they
wanted to see whom Eisenhower
favors if he does not run him
self.
Others mentioned as the
“strongest candidate” if Eisen
hower does not run were Chief
Justice Earl Warren, Secretary j
of„the Treasury George M.
Humphrey and Milton S. Eisen
hower, the President’s brother
who heads Pennsylvania State j
University.
ment, biggest spending agency of
government.
What the two fiscal officials
hoped was that the pentagon
could find ways to reduce spend
ing by about another billion dol
lars, bringing the total defense
spending for the year down to
about 33 billion dollars.
Wilson bas now said that such
a saving is impossible. Indeed,
spending for fiscal 1956 could be
about 35 billion dollars if tbs
monthly rate which has existed
recently continues through the
balance of the year.
Eisenhower Estimate
When President Eisenhower
submitted preliminary estimates
in his national budget last
January, the military spending
figure was set down as $33,750,
000,000.
On the basis of economies
made in various places which
the Pentagon insists have not
reduced combat effectiveness
the Defense Department estimat
ed early this month that spend
ing for the year would be about
34 billion.
Wilson’s decision against more
spending cuts is believed to have
been made late last week.
The defense secretary was
scheduled to fly to Denver on
Sunday, presumably to advise
Eisenhower personally of his de
cision. However, the President's
illness cancelled that plan.
Washington Leaders Again Say
Business As Usual" For U.S.
By Whitney Shoemaker
Of the \asocluted Press
Washington lift - Administra
tion leaders Wednesday em
phasized "business as usual" in
running the government in the
aftermath of President Kisen
hower's heart attack.
Presidential assistant Sher
man Adams, Vice-President Nix
on and others by word and ac
tion laid stress on what ap
peared to be a policy of operat
ing as normally as possible dur
ing Eisenhower's absence.
Nixon told newsmen things
are "going smoothly and we see
no serious legal problems in
volved" in moving ahead while
the President's guiding hand is
idled by illness.
Condition Satisfactory
Washngton officialdom breath
ed with greater confidence as
reports from Denver continued
Id picture Elsenhower's condi
tion as satisfactory.
Anticipating the President’s
gradual recovery, administration
leaders talked no more of dele
gating executive powers to Nix
on or department heads.
Senate Republican Lead e r
Knowland of California, Just
back in town, acted to squelch
conjecture on the need for a
special session of Congress
As if to underline the business
as-uaual talk, the White House
permitted photogt uphers to come
in and take pictures of officials
at work.
Adams, top assistant to the
President, was pictured confer
ring with Chairman Lewis L.
Strauss of the Atomic Energy
commission and with Meyer
Kestnbaum, a presidential con
sultant on government reorgan
ization and relations.
Stock Market Recovers
From Monday's Decline
NEW YORK I* — The stock
market Wednesday extended its
recovery from Monday's sharp
decline with a vigorous rally that
brought gains of $1 to $0 a share
Buying favorites were such key
stocks as the steels, motors, rails
and oils, but the recovery eni
Molotov Leaves Meeting
To Protest Denunciation
UNITED NATIONS. N. Y. T
Russia’s V. M. Molotov walked
out of the U.N. Assembly Wed
nesday as Nationalist China's
Foreign Minister George Yeh
denounced Moscow's peace drive
and Red “tyranny” over the Chi
nese mainland.
Yeh said the Communists in
their six years of domination of
the Chinese mainland have
“spawned a gigantic system of
repression and terrorism, the like
of which has never been known
in Chinese histoiy."
The foreign minister gave his
policy speech in Mandarin Chi
nese, although Nationalist dele
gates usually use English in U.N.
halls.
He said the current peace cam
paign by the Reds actually is a
form of war between Communism
and capitalism and the “softer
words" do not mean the Commu
nists have given up the fight.
Ministers Walk Out
Molotov was joined in his walk j
by Vaclav David, Czechoslovak
foreign minister, and M arian
Naszkowski, deputy foreign min
ister of Poland. Kuzma Kiselev,
foreign minister of White Rus
sia. lemained.
At the afternoon session, Kise-'
lev in his policy address at
tacked Yeh for making what
Kiseley called “slanderous re
marks.”
V. K. Krishna Menon, India’s
chief delegate who has joined!
Molotov in advocating a U.N. seat |
for Red China, left at the same
time Molotov departed. A spokes
man said Krishna Menon had a
medical appointment but added:
“Our position is well known.”
Nationalists Don’t Care
Asked for comment on Molo
tov’s action, a member of the
Chinese Nationalist delegation
said: “We don’t care.”
The walkout is a favorite Sov
iet device going back to 1946
when Andrei A. Gromyko, now
,first deputy foreign minister,
left the Security Council when ii
decided to hear Iranian charges
against the Soviet Union.
The parade against Nationalist
China began in January, 1950,
when Jacob A. Malik, who is here
lor this Assembly, demanded the
ouster of T. F. Tsiang, National
ist Chinese delegate. Malik left
the table when the council re
fused.
Since then, on approximately
150 occasions, the Russians have
either walked out or registered a
verbal protest against the ap
pearance of the Nationalist Chi
nese at U.N. meetings.
Assembly Shelvey uestion
The Assembly decided last week
to shelve the question of Chinese
representation for this session.
The Nationalist Chinese re
sponded to the Russian boycotts
by remaining away from an As
sembly tribute to the late Soviet
delegate, Andrei Y. Vishiusky.
They also stayed outside the hall
when the U.N. Political Commit
tee stood up for a ipinute's silent
tribute to Stalin after his death.
Ike May Have Had
Hint of Illness
PORTLAND W - President
Eisenhower may have had a
premonition of his heart attack,
Wendell Wyatt, Oregon Republi
can chairman, said Wednesday.
Watt told the Multnomah
County chapter of the Republi
can Club of Oregon that the
President at Denver two weeks
ago told Republican party lead
ers:
“You as state chairmen urg
ing me to run again must re
member that men are frail and
men are mortal. Never pin your
flag to the mast so firmly that
if the ship sinks you can't pin
the flag to another mast. Our
philosophy of government, re
specting the rights of the indi
vidual, is bigger thun any one
individual or any one party. Fol
low this basic philosophy and
the individual that carries it
out will not be very import
ant.”
Wyatt said the President’s ill
ness has not killed the party’s
chance of success in 19r>0, but
“it has made our job a little
more difficult. We must get out
and work a little harder.”
i braced nearly all sections of the
list.
The market opened higher, in
a continuation of Tuesday's up
swing. and the ticker tape ran
behind for more than an hour
in reporting transactions. Then
things quieted down and prices
generally receded.
In the afternoon, however, a
11 ully began that carried through
to the .closing minutes. There
was only a modest shading of
gains by profit-taking at the
close.
fhe Associated Press average
of 6u stocks, which fell $11 10
oil Monday following news of
■ President Eisenhower’s illness,
advanced $2.00 Wednesday to
close at $l7f>.00.
This $2.00. added to Tuesday's
gain of $2.90. indicates that the
market has recovered about 43
|a-r cent of the ground lost on
Monday.
The market valuation of ail
shares listed on tin- New York
stock exchange dropped on Mon
day by roughly 13 billion dol
lars.
The upswing Tuesday and Wed
nesday recovered around 5'a bil
lions of this amount.
Market observers credited th>*
recovery to good news on the
President's condition and to the
fact that .shall* places dropped so
sharply on Monday that they
looked attractive to traders and
investors seeking bargains.
"Strategy Same,"
GOP Leader Says
BANGOR. Mt\ i/fi GOP Chair
jimn Leonard \V. Hall Wednesday
right repeated lis assertion that
President Eisenhower's illness
hasn't changed Republican cam
paign strategy, and declared Re
publicans are “in the best shape
we've been for 23 years.”
“We will,” he said in an ad
dress at a Republican rally, “face
the elections a year from now
confident that the American peo
ple will judge our paity on its
performance.”
Prior to the rally, Hall told a
televised news conference he ex
pects the Republicans to win next,
year’s presidential election no
matter what candidate heads the
national ticket.
He declined, however, to specu
late on possible candidates should
President Eisenhower’s illness
prevent him from seeking a sec
ond term. Hall also refused an
opinion on Vice Perside;u Nixon's
presidential chances.
Thi1 new attitude nituked a
switch from the initial reac
tion to Eisenhower's attack last
Sat unlay.
The first news from Denver
set officials to pondering the
need for legal steps to etpilp
others with authority granted
the President to maintain the
government's foreign and do
mestic policies.
What now seems to is- the
approach a holding operation
his feet crystallized after a
high level meeting Tuesday.
Nixon wus present with Sec
retary of the Treasury Hum
phrey, Ally. Gen. Brownell, Ad
ams. the President's ranking
assistant, and Deputy Atty. Gen.
William P. Rogers.
Nixon said Wednesday he
would not deny reports that from
this and other top echelon con
ferences emerged thy decision
that no delegation of powers was
required. At the same time he
declined to go into just what had
taken place at these sessions.
Seven Guilty in
Air Raid Test Case
NEW YORK - Seven per
sons pleaded guilty Wednesday
in a case testing a government’s
right to rule citizens off the
streets during a practice air
raid. An eighth defendant was
freed.
They are among 2H persons
arrested last June 15 for refus
ing to take shelter during a
mock hydrogen bomb attack on
New York.
The remaining defendants
have anonunced they will take
their cases to the U. S. Supreme
Court if need he. They contend
their civil liberties cannot be re
atricted in a make believe air
raid but they concede their right
to free assembly would vanish
in a real emergency,
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