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THE President this week served
up a fiscal cocktail with po
tential kick enough to knock the
hat off an election-minded Con
gress. Chief ingredients were armaments,
foreign aid and veterans' services,
with a dash of Federal housing thrown
In. The name of the mixture: The
rederal Budget for 1952-53.
The total budget, as laid down by
President Truman, came to a whop-
fing $85,400,000,000. It is the largest
ederal Budget proposed since World
War n, and the largest in history, ex
cept in time of all-out war.
Tax Hike Requested
Many members of Congress pro
tested it was billions too much.
The President predicted the Gov
ernment will run some $14,400,000,000
into the red next year unless Con
gress votes new taxes. He added that
he has never given up hope that the
defense buildup can be financed on a
pay-as-we-go basis. The President
stated he would settle reluctantly for
a tax rise of perhaps $4,500,000,000.
That would leave a deficit of nearly
$10,000,000,000.
Congress showed no disposition to
vote even a fraction of $4,500,000,000
In new taxes. With the day of reckon
ing at the polls coming up, many
members of both houses said they
doubted if any tax rise would be ap
proved. Budret Proposals
More than three-fourths of the
budget are earmarked for "major na
tional security programs" the armed
forces, foreign aid, atomic energy,
promotion of defense production and
economic stability, civil defense and
Merchant Marine.
The President proposed $51,200,000,
000 for the military services alone.
Some other highlights from the
President's budget message were:
A proposal for bigger staffs for the
Office of Price Stabilization, the Wage
and Salary Stabilization Boards, and
extension of rent control to cover
tenants in an estimated 10,000,000
rental units.
A recommendation to increase postal
rates. The President said he was very
concerned over the prospect of the
Post Office Department's going nearly
$670,000,000 into the red next year.
A proposal to spend $678,000,000 on
Federal housing and community de-
Probes
Temptations
Predicting a full-scale investigation
of some multi-billion dollar activities
in the Department of Agriculture,
Vermont's Sen. George D. Aiken de
clared this week:
"We should be able to make sin a
little less tempting to people when
they deal with the Government."
Chairman Ellender (D-La) of the
Senate Agriculture Committee, said
he was confident the Senate would
approve the investigation and provide
$50,000 to finance it
The Agriculture Department activi
ties under question concern grain
storage, complaints that Department
employes in St Louis, Mo., formed a
pool to speculate in oil and gas leases
on land formerly owned or controlled
by the Government, and reports of
irregularities in connection with the
"processing of government commodi
ties." Intelligence Inquiry
House members were told, mean
while, that a sweeping inquiry is un
der way to determine whether vital
secrets have been leaking out of the
nation's nerve-center for intelligence
reports from all over the globe.
It was revealed that at least eight
investigating bodies are looking into
complaints dealing with the Army
Signal Corps Intelligence Agency
which receives reports from agents
around the world.
Meanwhile, Attorney General J.
Howard McGrath began organizing his
projected cleanup program aimed at
clearing the Federal machinery of
corruption.
United Nations
Arab Gestures
At a downtown Paris hotel a gay
party was in progress. The caviar and
vodka were abundant
The host, according to sources at
the Palais de Chaillot United Nations
headquarters, was Abdl Rahman Az
zam Pasha, secretary general of the
Arab League. The guest of honor:
Andrei Vishinsky.
The dinner party set off speculation
that the Arab bloc in the United Na
tions was about to launch a concen
trated friendship drive toward the
Soviet Union.
Egyptian spokesmen at the U.N. de
clared they have no objection to the
Soviet government as long as it keeps
Communism at home
The new independent kingdom of
Libya's application for United Nations
membership hit a snag when Russia
served, formal notice she will veto it
unless the West agrees to simultaneous
admission .of five Soviet satellites.
Later in the week Vishinsky left
Paris fox. Moscow ' with a furious
charge that all the decisions of the
current United Nations -General As
sembly had been made for the prepa
ration of H new war.
fAU RiQHU Rmamt AP Nranfcatwrm)
$51,331,000,000
DEPT. OF
DEFENSE
tma.ucNc
MILITAPY ASD
CIVILIAN
$10,844,000,0
MUTUAL
SECURITY
PR OCR AA
tnBflCNAiO)
$t,77S.O0O,Q00t
ATOMIC
ENERGY" '
COMMISSION
$4,197,000,000
VETS SERVICES
AND BENEFITS
velopment. This would be a slash of
more than $2,000,000 from the present
ouy for such projects
Expenditure of $4,197,000,000 for
veterans' services and benefits a drop
from the $5,166,000,000 earmarked for
these services under the present
budget
ABANDON SHIP Greek crewman
buoy after vessel ran aground
A
I.
iuSSi
$678,000,000
FEDERAL Vbf
HOUSING P-yJffi&D)
ELIZABETH DEATH SCENE For the second time in five weeks a
plane crash at Elizabeth, N. J. has brought death and destruc
tion. A Buffalo to Newark American Airlines Convair plowed
through three homes there this week killing ' at least 28.
Among the victims was former Sec of War Robert Patterson.
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NAVAL SNOW BRIGADE Crewmen of U.&S. Ismx dtar flight
deck and planes after snowstorm si ruck in heavy Korean seas.
KOREA: Speed-up in Red Plan for
IN western Korea, a United Na
tions raiding party crouched in
foxholes at the foot of a Communist-held
hill.
At a signal, the raiders leaped
from cover and swarmed up the
hill in the face of murderous small
arms and mortar fire. They back
tracked part way down the hill, took
cover where they could find it.
In the rear. Allied artillery opened
up on the Red positions. When the
barrage lifted, the Allied infantrymen
tried again. But the dug-in Commu
nists hadn't been hurt.
Bitter Truce Sessions
Actions similar to this one took
place all up and down the U.N. line
as the deadlocked truce talks were
marked by short, bitter-meetings be
tween Allied and Red officers. The
thorny airfield issue was still the chief
obstacle to progress.
The Peiping radio said' Allied de
mands for "restrictions on airfields can
have no reason other than holding up
and torpedoing the armistice negotia
tions." "We have submitted every possible
reasonable proposal," the official Chi
nese Communist radio said. "Further
changes are impossible."
The radio added, in comment on the
other roadblock on the truce path,
that "we will never move from the
principle of unconditional release and
repatriation of war prisoners."
In the midst of this week's negotia
tions the Allied Command acknowl
edged that U.N. planes dropped a bomb
on Kaesong, former Korean truce
site, and may have strafed a Commu
nist armistice convoy. The bombing
of Kaesong was a mistake, the Allies
said.
Allies Firm on POWs
At one session this week, the Com
munists refused to ban airfield recon
struction although the Allies offered
to accept Red wording on other terms
for supervising the peace in exchange.
is hauled ashore in breeches
on rocky coast of England.
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The Allies were unbending, how
ever, in their insistence on freedom of
choice for all prisoners of war as to
whether they wanted to go to the Red
or the Allied side.
In Washington, meanwhile, many
observers thought they saw signs that
the U. S. was getting ready for trou-
POLITICS: Democratic Action
IN the Senate office building in Washington, a tall, dark-haired law
maker doffed his specs and said some kind words about a
colleague.
"We were classmates at Yale Law School," said the senator. "He
is a very fine man and a good friend. And he has lots of ability."
The speaker was Tennessee's Estes Kefauver, a cautious aspirant
for the Democratic presidential nomi-
nation. He was talking about another
Democratic senator Connecticut's
Brien McMahon.
Kefauver's comments came in the
wake of an announcement by Sen.
McMahon that he will enter his name
in the Illinois Democratic Presidential
Primary. McMahon's disclosure
touched off speculation that President
Truman may have asked him to get
into the April 8 contest.
"Favorite Son"
The McMahon development came
shortly after Sen. Humphrey (D
Minn) had agreed to run as a "favor
ite son" candidate in the March 18
Minnesota Presidential Primary. Hum
phrey, said he was filing in that race
at the President's request. Both he
and McMahon are strong Adminis
tration supporters.
The report was promptly circulated
that Truman supporters were moving
in on Illinois and Minnesota to count
ter Kefauver.
Meanwhile, President Truman's re
ported remark that he has "never quit
a fight" was seen by New Mexico's
Democratic Sen. Anderson as a new
indication the chief executive will
seek another term
If the President doesn't bid. Sen.
Kefauver would make a "very won
derful" presidential nominee for the
Britain
Red China Question
Britain may withdraw her recogni
tion of Red China if the Korean War
resumes on a major scale.
The British recognized the Chinese
Communists more than two years ago,
on Jan. 6, 1950. Since then British at
tempts to set up normal diplomatic
relations have made no headway.
Western diplomats in London be
lieve Conservative government lead
ers were not happy with the way the
former Labor government granted
recognition to the Chinese Reds. The
Conservatives felt it should have been
done if at all only after agreement
was reached , among Britain, its Com
monwealth nations the United States
and other western allies.
China Means Trade
British policy in the Far East was
moved a notch closer to that of the
United States through the recent
Truman-Churchill conferences. Lon
don sources feel Britain gained Amer
ican understanding of the British posi
tion on recognition of the Peiping
regime.
In their Washington talks, Church
ill and British Foreign Secretary An
thony Eden explained Britain's point
of view. China represents a big trad
ing area to Britain Some British in
terests still are operating on the
Chinese mainland. The British crown
colony of Hong Kong carries on trade
with the Red mainland.
The British are anxious to safeguard
the whole of Southeast Asia Indo
china, Burma, Thailand, Burma and
India from Red ' encroachment
With the! whole Southeast Asia area
sitting on China's front door, Britain
probably finds having a representative
in Peiping of some value.
ON THE ALERT IN KOREA
. . a calculated risk of World War III.
ble, not only in Korea, but elsewhere.
They read in the stalled truce talks
and the President's budget message to
Congress portents of evil.
President Truman's statement that
western Europe, with American help,
can be ready at the end of the year
to "offer strong resistance" to any
Democrats, Sen. Humphrey stated.
On the Republican side, the name of
Gen. Dwight D. Eisenhower is down
for New Hampshire's preference pri
mary as a Republican candidate for
President.
The name of Gen. Douglas Mac
Arthur was tossed into the Illinois
presidential preference primary but
the general quickly made it known
he would have his name withdrawn.
A spokesman for MacArthur's Illi
nois supporters said "we are aware
that Gen. MacArthur is not a candi
date but we believe he'd eccept a
draft"
Quotes
Charles E. Wilson. U. S. De
fense Mobilizer: "American In
dustry should begin planning
now the weapons of 1960 and
1970. We are preparing for a
Buck Rogers era, the atomic
fissioo, supersonic, electronic age,
when yesterday's brilliant ideas
are already on the way to the
scrapheap."
Gen. Dwight D. Eisenhower:
"The answer to the Soviet threat
is for the West to establish sys
tems of collective strength that
will bring about equilibrium with
the Communist world as cheap
ly, effectively and economically
as possible."
Mrs. Andre St. Phalle, promi
nent New Yorker: "Lipstick and
other cosmetics are symbols of
feminine deceit and . despair.
Women should be more honest
with themselves and the world."
GERMANY: Draft Army Planned
TTTEST GERMANY'S chief defense planner, Theodore Blank, is
VV
a tight-lipped man who fought against the Allies from start
to finish, of World War II.
This week Blank tossed aside his customary secrecy and revealed
that West Germany will draft 300.000 to 400,000 men.
The head of West Germany's shadow "defense ministry," known
officially as "The Service Office of the
Federal Chancellor," said his country
hoped to ' provide 12 divisions and a
tactical air. force for the proposed Eu
ropean army to be set up by France,
Italy, Belgium, Holland, Luxembourg
and West Germany.
Resume Negotiations
The foreign ministers of these na
tions met this week in Paris and re
sumed negotiations on the European
army plan:
Blank stated that West Germany is
still divided on whether joining the
western nations is the right course.
In his opinion, said the 45-year-old
Blank, Germany has no choice.
Instrument of Peace
"It is no fun for any of us having
to set up an army again but there is
no other, choice if we are to have.
peace in Europe," Blank said. "The
defertse community, is net an Instru-
ment tsfwar but an -instrument ' of
peace,'. . ' '
His announcement, he said, was not
to be taken as the signal for German
Conquest?
Communist aggression helped set off
the round of pessimistic speculation.
The President's remark was taken
by some as the tipoff that the U. S.
now thinks Russia is ready to make
a major move much sooner than
originally anticipated in a calculated
risk of World War III.
Dates
Monday, January 28
Twenty-eighth anniversary of
the beginning of the Teapot
Dome oil lease inquiry.
Tuesday, January 29
Steel Industry Price Advisory
Committee meets with Govern
ment officials in Washington to
discuss price adjustment order.
Wednesday, January 30
. Birthdav of Franklin D Roose
velt (1882-1945).
Fourth anniversary of the as
sassination of Mohandas Gandhi.
Friday, February 1
Execution of Oscar Collazo
scheduled for attempt to assassi
nate President Truman in No
vember. 1950.
In Short
Nominated: by President Truman,
Henry S. Villard. chief of the State
Department's Division of African Af
fairs, as the first U. S minister to
Libya; Eugene M. Zuckert, to be a
member of the Atomic Lnergy Com
mission for a four-year term to sue
ceed Sumner T. Pike, who resigned
recently
Resigned: Stanton Griffis as U S
Ambassador to Spain
Completed: a globe girdling, good
will flight in a tiny single-engine
plane by Congressman Peter F. Mack,
Jr., Illinois Democrat.
Convicted: Dennis Delaney, ousted
Massachusetts Collector of Internal
Revenue, on six counts of accepting
bribes and false certification of tax
payments.
Formed: a new French cabinet made
up of moderates anc. right-wing min
isters by Premier Edgar Faure. The
new cabinet was almost the exact
image of that of ex-Premier Rene
Pleven, who was defeated on a recent
vote of confidence.
mothers to rush to their sons and say:
"Go pack your things." There will be
many delays before a new German
army gets underway, the defense
planner stated.
Blank pledged that the old German
militarism would be rooted out of the
model German divisions. Earlier re
ports have stated the aim is for a
"people's army" based largely on the
American selective service plan.
Past Creates Problem
In a reference to the Nazi era.
Blank declared: "Oue of our biggest
problems is our past.'
. In this connection, U. S. High Com
missioner John J. McCloy said a pub
lic opinion poll taken by his staff
Shows only 20 per cent of Germans
tntervie wed would do anything to pre-
vent the rise of another Nad party,
But, hie said, the survey indicated,
ionly 13-per cent of the German peo-
pie would support a Nazi-like party
- today." ;
"I SHALL consume as much of
- 1 Ismaiha as I want. Then if I.
want I will take mora - tie
towiu"- -'. '
With these blunt words, Gen.
Sir George Erskine, British com
mander in the Suez Canal Zone sent
British troops ; scouring . through - the
Arab quarter of .that blood-stained
town. ' r :
Ersklne's action came - in the" wake ,
of the slaying of - a New .York-bora
nun, first American casualty in the
Suez fighting. She was 52-year-old
Roman Catholic' Sister Anthony,
daughter of Samuel Timbers Cf Peek
skill, N. Y. A bullet struck htr in the
heart as she stepped from ber- .con
vent door.
Tonisiaa Tensiosii.5- . '
In another Middle East hot SpoUthff
strife-torn protectorate ' of : Tunisia '
mobile guard reinforcements - from
neighboring Algeria bolstered Frenci.
efforts to quell bloody nationalist riot
ing for home rule. - f i -
In Paris, Premier Edgar 'faure got'
a vote of solid backing from the Na-t
tional Assembly for his determination
to hold Tunisia but to resume talks'
on self government -there. f; - 1
In Iran, meanwhile. Britain closed
the doors of her nine consulates and
vice-consulates in that country thus
complying with demands by Premier
Mohammed Mossadegh's gOTemment.
Iran based the 'losing order on re-;
peated charges that British diplomatic
and consular officials had been inter
fering with Iranian internal: affairs.-"
Mossadegh announced Iran's accept
ance of a $24,000,000 American aid
project under President Truman's
Point Four Program for Technical As
sistance to Underdeveloped Countries.
Iran refused to accept the British"
government's nomination of Robert
Hankey as ambassador to Iran to re
place Sir Francis Shepherd. This ac
tion was part of Iran's policy to pro
hibit those who have served in
Britain's diplomatic service in-' Iran"
before -from heading the British mis
sion in Iran now aa ambassador "or
minister. j
Science
New Treatment for TB -1.
A new drug aldinamide for lh
treatment of tuberculosis has been. de
veloped . .,..,. -
Dr. J. fL Williams, director -of - re
search at Lederie Laboratories,. says
the drug has been used effectively not
only against the usual strains which
cause tuberculosis, but also-against
tubercule bacillus strains which have
become -resistant to str'eptotoychL-
: Akiinamide was tested on 43 - pa
tients at a New York sanitarium with
reporu?d favorable results. spokes
man "for the hospital said that in al
most all of the patients treated who
had moie than one degrees of fever,
there was a rapid reduction of tem
perature and diminished coughing. "
11 was noted, however, that disease
organisms also build a resistance to
the new drug after about two months.
Tr.e job for researchers now is to over
come that flaw. ' "
Sidelights
Thieves who broke into a bar near
Mason, Mich planned for a big night
-and the morning after. They took
24 cases of beer and I2 boxes of
aspirin. I
A little old lady in Ingham County.
Mich., complained to sheriffs officers
when she heard short wave'radio pro
grams on her hearing aid.
In Washington. Michael V. DiSalle,"
national price administrator, pre
sented an? award to "Milton? A. Smith,
who coined a word to designate the
complex governmenta' language used
In official notices and letters The
word: "Bafflegab."
The director of the New; Vork City
Zikd told a budget hearing it would
take S636.523 in the next year to keep
the zoo's 2,500 animal- in hay. fish and
borsemeat.
Foreign Affa ir
Frozen Steel Mill
In various warehouses i a Philadel
phia, Pa., Troy. N Y New Castle.
Pa, and Youngstown, Ohio there are
bulky, seemingly unrelated pieces of
complicated machinery. Ifyou could
put them all togethei. you would have
one complete steel mill. ,
The steel mill machinery was or
dered by Czechoslovakia soon after
World War II fighting stopped in Eu
rope Before the mill could be deliv
ered, the Czech government suc
cumbed to the Communist coup of
1248. The U. S. refused to permit ex
port of the steel machinery. .
The U S. has acted again to freeze
the status of the milL The America,
action this time set oU rumors thai
the State Department wat - consider
ing a deal with the Czechs under
which export of the steel mil would
be permitted in exchange Tor the re
lease of William N. Oatis American
newspaperman held by th Czechs.
Michael McDermott, a spokesman
for the State . Department, denied the
action had anything to do with the
Datis case. "
Secretary of the Treasury Snyder
signed, the 'order .which forbids any
disposition of the steel mill without
Government approval. i
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