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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 7, 1952)
Churchill Defense Needs Cut To Fit Big Budget Tn UD l o Doos 's Call IS:'' AS WINSTON CHURCHILL was about to arrive on his long-ieralded visit to the United States this week, speculation grew that he was ready to do some straight, talking to President Truman. Observers in London said the Brit ish leader will tell the President that Britain is braving economic collapse to help hold the front against Red aggression. He can point out that Britain al ready is fighting Communism with troops spread across the world. Churchill can also show that Britain's contribution to the North Atlantic Treaty Organization is the biggest outside that of the United States. Rearmament Lagging For a three-year rearmament drive and the upkeep of its military forces, Britain is spending some 12 per cent of its national income. The rearmament drive is going for ward although Churchill admits it is lagging behind schedule while the nation is earning less than it is spend ing in the world's markets. Some feel that Churchill will ap proach the subject of further Ameri can dollar loans to Britain, despite statements to the contrary. Churchill Cautions Britons Whitehall officials shy away from talk of more U. S. help of this type, but they admit they'd like steel and other raw materials. They would also like as much economic aid as they can get under the American Mutual Se curity Program. Churchill has cautioned the British people against attaching "exaggerated importance and hope" to his visit to the U. S. All that may be expected from America, he said, is aid in the common defense program. "In rearmament and in the North Atlantic Organization," said Church ill, "Britain and the United States have immense and intricate affairs in common, and I want to make sure that we can help each other as much as possible." In any bargaining with U. S. offi cials, Churchill can point to Britain's troop commitments in Germany, North Africa and the Mediterranean, the Suez Canal Zone, the Middle East, Malaya and Korea. The latest figures put 14,000 British troops in Korea. Britain has about 8,600 sailors on warships assigned to U.N. duty in Korea waters. A small number of Royal Air Force squadrons, mostly based in Japan, are assigned to the Korean U.N. command. rms Stratofortress The Air Force has lifted a corner of the wraps on its huge all -jet B-52 tratojet bomber. The first picture of the new bomber, taken by official Air Force photogra phers, revealed an aircraft having the general outline of the Boeing Medium B-47, eignt-jet bomber but on a massive scale. Its obviously cavernous fuselage should be able to carry more than one atomic bomb. The British publication Jane's "All the World's Aircraft," guesses the plane's weight at 350,000 pounds. Production Ordered Short-cutting the usual long test programs, the Air Force has ordered Boeing to go into production. Air Secretary Thomas K Finletter ex plains that experience gained in pro duction of the B-47 warranted pro. duction orders for the B-52. Eight J-57 Pratt & Whitney engines, mounted in pairs near the middle and toward the outboard end of each of the knife-like wings, provide power for the B-52. Unofficial speculation places the thrust power of each of these newly-developed, engines at con iderably more than 7,000 pounds each. (AU Rights Reserved. AP Newsfeaturet) CSS4 v. a. kh THE LEANING KORiEA: U.N. Command Aims for U"VT truce, negotiators at 1N Panraunjom this week put it on the line. Peace in Korea, they said, was lip to the Commu nists. The U.N. Command had about reached the limit as far as concessions were concerned. Said Brig. Gen. William P. Nuckols, briefing officer at advance headquar ters: "Since we have yielded as much as we have the Reds want us to give up everything." It was apparent at the truce meet ings that the Communists were wait ing for further compromises on the part of the United Nations Command. They did, however, start the new year on a somewhat hopeful note by tenta tively agreeing toi the repatriation of all civilians whoii wish to return to their homes after an armistice in Korea. POW Information Promised .. The Reds also promised to furnish basic information regarding all the prisoners of war they ever held since the war began more than 18 months ago. The plan for repatriating civilians was part of a six-point program pre sented by Allied negotiators this week. The major part of the program dealt with the release of all prisoners of war. In Tokyo, Cot George Patrick Welch, official spokesman for Gen. Matthew B. Ridgway's headquarters, summed up the U.N. plan like this: "In principle, we are proposing an exchange of everyone who wants to be exchanged." j A U.N. spokesman in Korea said the exchange of prisoners would start on a man-for-man basis to make sure the U.N. would get back its full quota of prisoners of war. "When we have finished exchanging Sidelights In Milan, Italya 30-year-old farm er bet his iriends he could drink a pint of grappa (a strong alcoholic drink distilled frm grapes) in one gulp. His funeraliwas held Monday. O In Yonkers, N. Y., civil defense officials suspended; an auxiliary police commander who complained that pro posed uniforms were fit only for "cir cus clowns, storm troopers and space patrolmen." In Decatur, IlL, during the recent seasonal mail rusli, one of two substi tute carriers employed on the same route got a little confused one day. He collected all the letters the other carrier had delivered earlier. In ort Established: by President Truman, a Commission on the Health Needs of the Nation to survey the nation's health needs and present recommen dations for improving American health. Authorized: by ihe Spanish cabinet in Madrid, a visit to Spanish Mediter ranean ports nextSweek by the entire U. S. Sixth Fleet of 35 ships. Revealed: by an official Soviet For eign Office announcement in Moscow, the death of Maxim Maximovich Lit vinoflf, former U.S.S.R. ambassador to the United States. He was 75. Reported: by th Bureau of Employ ment Security hi Washington, that Federal unemployment insurance re serve funds are at a record $7,800, 000,000. Requested: by advocates of a 25 per cent top on Federal income,. gift and estate taxes, a call by Congress for a Constitutional Convention to con sider such a resolution. CURRENT EVENTS IN MIDDLE EAST-TWO VIEWS toimtom, Imditmmptli TOWER OF TEHRAN m Nw ; - ; ' V - ft -- - ' tA 1 all prisoners of war left on either side," said Lieut. Col. Howard S. Levie, "then we will get on to the point where we don't count heads. " Freedom of Choice Anyone who did not want to be repatriated would not be sent back against his will by either side. The International Red Cross would act as supervising agent in this. Levie laid great emphasis on free BUSINESS: Upward Currents UQ BUSINESS, with hardly a pause for breath, plunged this .O. week into 1952 a year that promises to see 1951 records broken in production, personal income, spending and capital outlays. Under the impact of mounting defense expenditures, further up ward trends in business activity Were listed as certain by some observers. A note of caution came from George A. Renard, executive secretary of the National Association of Purchasing Agents. Pointing out that defense and allied production is only a portion of the whole, Renard said: "The addition and multiplication formulas of our economic planners have overlooked the necessary sub traction, for taxes, and division by high prices. "Business does not ordinarily ex pand in anticipation of lower profits. Neither does the average person spend more when there is less to spend." Ups and Downs As 1952 got underway, the pace of the national economy, as measured in dollars, continued to quicken des pite heavy subtraction for taxes and division by high prices. The threatening deadlock in the steel industry, however, produced an uneven trend for business. Federal Reserve figures showed money in circulation was near a rec ord high. Loans to business continued to make large gains and bank clear ings in 25 leading cities were higher than a year ago. Because many plants had just about used up available material allocations, automobile and truck assemblies felt a tight pinch. Freight carloadings were at a low level and soft coal mining was well behind the pace of a year ago. Automobile makers studied reports of the Defense Production Authority warning that reduced second-quarter 1952 material allocations might force DANGEROUS FLIRTATION TRUCE NEGOTIATORS AT PANMUNJOM Waiting for further compromises . . . dom of choice of the individual as to whether he wanted to wind up on the Communist side of the line or the United Nations side. He specificallly mentioned eight groups which should come under the freedom of choice provision. They are approximately 16,000 South Koreans who fought as Red soldiers and now are U.N. prisoners of war; about 38, 000 South Koreans whom the U.N. originally called prisoners of war but 4 $ production slashes to a million units or less for the three month period. The Defense Production Authority had good news too. The word was passed that civilian production will be given an additional 37,500 tons of straight chromium stainless steel dur ing the first quarter. This is used on auto bumpers, kitchen utensils and some types of plumbing. Meanwhile, wholesale food prices varied. After touching a low for 1951 two weeks ago, food prices edged up slightly. Quotes Sen. Robert A. Taft (R.-Ohio), announced candidate for the Re publican presidential nomination, in a comment on Harold E. Stas sen's bid for same: "Every Amer ican has a right to run for presi dent, and it's well that the Republicans should have a wide choice." John Foster Dulles, ambassa dor at large and special adviser to the State Department: "It seems unlikely that there will be a dependable peace in Korea which will settle all political con troversies. It does seem that bit ter ground fighting may have ended because neither side can now advance without a cost in lives and material more than the advance is worth- Showdown has reclassified as civilians; all for mer South Korean soldiers who are in Red armies now; all other South Koreans inducted into the Red army; the 11,000 acknowledged POWs held by the Reds; the 116,000 POWs held by the U.N.; foreign civilians, and all Koreans now in enemy territory. ( South Korea says the Reds have 113,000 of their nationals. The Reds have said 500,000 of their nationals are on the U.N. side.) POLITICS: Game of Riddles A PRESIDENTIAL election year dawned this week as the U.S. continued to indulge in a game of political riddles. The riddles centered around President Harry S. Truman and Gen. Dwight D. Eisenhower and their intentions for the future. In Washington, a Democratic sen ator described Gen. Eisenhower as an "overwhelming favorite" for presi dent, but a Republican congressman declared President Truman could win another term if the election were held now. Political Fence Hopping The Democrat, Sen. Paul Douglas of Illinois, said "a great many" voters in his party would hop the political fence and cast ballots for Eisenhower if the general becomes the Republi can presidential nominee. "I think Eisenhower is the over whelming favorite of the great mass of the American people," said Doug las, who recently made an extended tour of the United States. The prediction that President Tru man could be reelected if the voting were held now came from Rep. Crawford, Michigan Republican. Truman Still Strong Crawford said he believes the in come tax scandals turned up by a House investigating committee have hurt the President politically, but he added that the damage hasn't been great enough to keep Mr. Truman from being reelected. Douglas himself has been plugged for the Democratic presidential nomi- FORMOSA: Brighter Outlook FOR the first time, the possibility of the U.S. and Nationalist China working as a team in action outside Formosa has been publicly mentioned by an American official. In a New Year's Day statement, Maj. Gen. William; C. Chase, head of "the U.S. Military Advisory Assistance Group on Formosa, called the two countries "equal partners in the fight against the evil of Communism." i " He urged "ever closer coordination" between U. S. military advisers and Chinese Nationalist armed forces "to make sure that the 'team' is ready for whatever action is called for wheth er it be on this island or in other troubled areas." Nationalists Face New Tear Meanwhile, Nationalist officials on Formosa faced the new year,, which held the threat of a large scale Red attempt to conquer Formosa. The brightest spark of hope for all Na tionalist troops on Formosa remained the objective of an eventual return to the mainland. Nationalist military men expressed a renewed confidence, despite many setbacks during the past year and many hard problems ahead. The new hope stemmed largely from the build up in combat effectiveness of the Na tionalist armed forces commonly estimated at 500,000 to 600,000 men. Other Bright Signs Other heartening factors include American ECA (Economic Coopera tion Administration) aid which kept the battered economy on a relatively even keel last year and the increased moral backing of Chinese communi ties living overseas. Finally, the Communists failed to DEFENSE DEPARTMENT economists juggled long columns of figures this week trying to come up with a streamlined farms budget for 1952. j r Military and mobilization officials looked a little glum after one White House conference at which they showed President Triiman their recommendations for the Steel Touchy Problem Government officials spent anxious hours worrying thi$ week about the effects a steel strike would have on the national defense program. They pinned their hopes ion the possibility that the CIO steel workers would agree to submit their grievenoes to the Wage Stabilization Board.' The union had called a strike for Tuesday, New Veax's Day, but its leaders decided to put the final de cision up to a 2,500-delegate conven tion held at Atlantic City Thursday. The Wage Stabilization Board went ahead with plans for a meeting Janu ary 7 to start machinery going in an effort to recommend a settlement of the labor-management dispute. Steelworkers Request The steelworkers union has asked wage hikes averaging 18 and one-half cents above the present average of just under $2 an hour, plus other ben efits. Its position has been that the industry can well afford to raise the scale and the men need more money to catch up with the Cost of living. Industry's Position The industry's position, stated by Benjamin F. Fairless, president of U. S. Steel Corporation, is that the workers already have been given raises amounting to more than the cost of living and that the companies would have to ask price increases if raises were granted. President Truman has referred the whole thing to the Wage Board, stat ing also that he would use any law on the books to keep production going to meet defense and other essential needs. SEN. PAUL DOUGLAS nation by some supporters, but the Illinois senator appears to have slammed the door oil that move. In a recent poll of American labor union presidents conducted by the In ternational Association of Machinists (AFL), Douglas was named as the man who would draw the strongest labor vote of any possible Democratic presidential nominee in the event President Truman does not run again. Backers of Eisenhower, meanwhile, insisted anew that the general will be available. New York's Republican Sen. Ives said that Eisenhower could ii ' i-: 'ii x win the nomination without saying a word. make good their boast that they would take Formosa in 1951. So long as the U. S. Seventh Fleet maintains its assigned role of safe guarding Formosa the feeling there is that: (1) The Reds won't try a major invasion; (2) If they do they will be thrashed; (3) The Reds won't try un less given the green light by a Soviet Union ready for world war. Dates Monday, January 7 Anniversary of) the first na tional elections in the United States, 1789. Tuesday, January 8 Congress reconyenes in Wash ington. Wednesday, January 9 Connecticut admitted to the Union, 1788. Thursday, January 19 League of Nations established, 1920. Friday, January 11 Birthday of Alexander Hamil ton (1754-1804), first secretary of the treasury. L . ..L...5 new national defense budget Prolonged huddles at the Pentagon by Defense Secretary Robert-xvett Assistant Secretary Wilfred .Mc Neil, and department budget expert gave rise to speculation that totil esti mate T nMrfi r f ha a rrinAsf a rirmm and for related items such as foreign aid might have been too high tot the President to accept. 1 Revision Takes Time If a revision is in order, it ttill b needed soon by the Presidentltoi' in corporate in the overall national budget Otherwise, he probably will be compelled to use the method of last year, when military requests rer submitted in detail some tim Utter the national budget was sent t Con gress, jj The Pentagon has been cageyS about disclosing how much it thinks "ill bo needed to provide for carrying on existing programs and making start ol an expansion of the Air FdTce to an ultimate size of 143 groups.l Plans for increasing Naval air strength and adding two or three divisions fei1 tho Regular Army also are in the jjNirks. Lovett has said that merely; Is a "bench mark" from which tofitrork toward an eventual budget recom mendation, the National Security Council had started out using a Iflguro of $45,000,000,000. The Defense Secre tary cautioned also that this had Mno relationship to what the actual budget figure will be." iM Air Force Expansion Rep. Mahon (D-Tex), chairman of the House military appropriations subcommittee, says he thinkf the Army, Navy and Air Force will need about $50,000,000,000 during the? fiscal year beginning next July 1. Mahon commented that the main part of tho defense funds will go to the Air Force. Mahon's comment, together! ;fdth the fact that the Air Force expansion project has the approval of the! Joint Chiefs of Staff and the National Se curity Council (as well as strong sup port in important segments of. Con gress) all add up to indications that if President Truman has requested a paring of defense estimates, it prob- ably will not involve a deep cut ifcto the Air Force program. Iran Dangerous Diplomacy Iran's Premier Mohammed Mossa degh believes the best policy for hia country is to play off the West against Russia. He doesn't mind going diep in the financial hole to do it. This week he decided military as sistancnd $1,000,000 under th U. SL Point Four Program were not rnpor tant enough to accept if any jpondi tions went with them. Mossadegh re fused to sign an agreement for continued military and economic aid from the United States unlefcs .all strings were removed. President's Move Mossadegh's attitude left it up to President Truman to decide whether to waive conditions laid down b Con gress for granting American id or face the possible loss of precarious toeholds for the U. S. in strategif Iran, with Russia the probable winner.;. In the meantime, Mossadegh - has to face a tough party fight in the na tional elections, and has to stajhd. up to charges that he is trying to sill out Iran to the Americans. I i Overhanging all this political ma neuvering is the fact that Mosfadegh and his regime are low on cashi They m a . t a a. -Li are, in fact, scraping the bottom of the financial barrel. United Natiohs Back to Work In Paris, United Nations delegates hurried inside the modernistic Plais de Chaillot after tossing a glapice at the famous Eiffel Tower nearby. The U.N. General Assembly was recon vening after a 10-day holiday. 1 Inside the building, another fxound of debate started. A clear cut decision would most likely not be forthcoming. The arguments themselves wer What counted and how they were .pre sented. ; I . Collective Measures jj The Assembly's big political com mittee took up the resolution on, col lective measures backed by ll mem bers. This would permit the U.N. to call on regional organizations, iuch at the North Atlantic Treaty Organiza tion, to help in case of aggression. . On the agenda is the problem I independence in Korea. No debate is possible on that issue in the Assembly until full terms of an armistice in Korea are worked ouu It' After Korea comes a Russian project introduced by Soviet Foreign Minister Andrei Vishin&ky. I Vishinsky's resolution, the I Latest model Russian peace plan, call$ lor declaration by the Assembly that it is incompatible for any member of the U.N. to take part in the aggf eseive Atlantic Bloc; a call for combatants in Korea to withdraw troops jwithin three months after an armistice, which the Assembly should vole for Immediately; armaments reduction;, a call by the Assembly for the United States, Britain, France, China . end Russia to conclude a oeac rf''
