AO1 TTIHIIE WdD ES HUD TDD US WE IE Hi ( - -imiuTilii Ppiss i bil HV' '.P--: 0 w-; Ru les ne!C;ai use-pf - -yla rkef - Jitters I Soviet Still Acts Friendly DesDii OEORGI MALENKOV was J his place over a month foreign policy. It's apparent 4ppear friendly and conciliatory to the West. When Malenkov was thrown out of his job on Feb. 8 the West that this signaled the adoption o. a much is prediction was bolstered ky the general interpretation of! Soviet Foreign Minister Molo- jv's speech of that same day.ruary circumstances Molotovs is warlike. The fact that Molo- statement on H-Bomb develop lov's address was followed im- ment seems to fit into this pat- hediately by an anti-Western pilitary tirade by Soviet Mar- fial Ivan Ko ev added jtress to this oppression. In - addition here were fther facts in he changes of feb. 8 and 9 thich looked t the time to e ominous, receding the lalenkov dis- Whitney hissal there ad been a drumfire in the So- tfet press on the theme that de felopment of Soviet heavy in justry must have absolute and (jlative priority over light in ustry. It appeared this meant bore stress on economic war Iotential including arms indus :ies. The changes involved the Emotion of two men closely ociated with Soviet military rowess Former Minister of )efense Marshal Bulganin and amous war leader Marshal Jeorgi K. Zhukov, who took lulganin's place as minister of efense when the latter became h-emier. This seemed to pve ml he new setup the aspect of a!raeni iito oi xugosiavia. 'war cabinet." Different Perspective Given this ; background it's lot unnatural-that many com mentators on the February jhanges tended to lose sight of Several important facts: 1. The Molotov speech of Feb. I did devote considerable space b the theme of Communist rey- llution and expansion and to ire and brimstone against U.S preign policies, but it also de (oted a great deal of space and tress to the possibilities of -jeaceful coexistence of capital sm with communism and in jluded some pretty strong pleas h this direction. 2. When there are internal hifts in the U.S.S.R. which re teal conflicts within the leader hip and give the outside world he impression of weakness, it is tremlin practice to try to coun teract this with statements fcressing Soviet military hitting ower and strength. Shortly fter Soviet . Police Chief Lav enty Beria was arrested in B53, Premier Malenkov an lounced the U.S.S.R. had the In Short. . . Unveiled: The Falcon, newest Ur Force guided missile with fci electronic brain enabling it b strike its target no matter low the target maneuvers. Sank: Ten small warships in l Nationalist air strike which :attered a Communist flotilla l Amoy Bay, a short distance om the Nationalist-held island utpost of Quemoy. Sent Home: All members of le Czechoslovak and Romanian igations in Sweden, after 11 aspects were jailed in an espi tiage investigation. 'RiTREMSNX sji SECOND BATTLE r ' - - ' --- - - T" :r- 1 1 m M mm 1 I I mm Ml m ft: WW. m.. W B r-" w - - .! e Malenkov s By TOM WHITNEY Associated Press Foreign Staff Writer ousted as Soviet premier ago but so far there are no signs of big changes in Soviet that for the present the Kremlin wishes to continue to hydrogen bomb and. even set one off to prove it. In the Feb- item of "smokescreen" or "dis traction technique. 3. The talk in Moscow about greater emphasis on heavy in dustry right now conceals the fact the Kremlin never in fact reduced by a large margin its overwhelming emphasis on this branch of the Soviet economy. Continuity Apparent In actual fact, events since Malenkov's dismissal show that far from precipitate change in foreign policy in the direction of belligerence the Russians are maintaining a strong line of continuity with previous policy. Several developments illustrate this: The Soviet press was quick to pick up an Iowa suggestion for exchange - of farm delegations between the U.S.S.R. and the United States. This is certainly not a major policy development, but it is not what one would expect' if the Russians werdvolved in a long and exhausting planning to intensify their anti American campaign to the pitch of the last months of Stalin's. era. The Soviet press has taken an exceedingly conciliatory atti- "fww VV. . m Day to day developments in AID: Report More for Asia Returned from a 30,000-mile tour of free Asia, Foreign Aid Director Harold . Stassen said this week the administration's requests for all foreign aid spending in the next fiscal year will be held to 3 billion dol lars. This compares with a total of more than five billion dollars made available for the current year. Stassen's remarks came at the same time President Eisenhower People Excitement in Moscow A fur-hatted young Russian appeared at the high iron gates of the British Embassy court yard in Moscow this week, and there suddenly whipped out a pistol and blasted the Russian guard in the chest. . Racing across the 30 yards which separate the front door of the embassy mansion from the gate, he shoved aside a Brit ish guard and vaulted up the broad stairs to the second floor where the living-quarters of British Ambassador Sir William and .Lady Hayter are located. Minutes later he was forcibly disarmed by two husky mem bers of the embassy staff. Sir William refused any of ficial comment, but Moscow diplomatic observers were in clined to attach no political sig nificance to the incident They dismissed it as the individual action of a person presumably mentally disturbed. Atmnmndm, PhilaJmlphim Smmdmy Bmlltim OF GETTYSBURG Ouster and Nikolai Bulganin put in there were many predictions more belligerent attitude the Soviet Union, in the impres sion they sometimes give of very sharp change, obscure the actual strong continuity in policy to wards the outer world regard less of persons who execute it. This is probably particularly true at the present time when policy is not being determined by any one person but by a group among whom Khrushchev and Bulganin are the leaders. Khrushchev a Gambler The impression prevails that Khrushchev may be a man who is much more inclined to gamble and take risks than ex-Premier Malenkov. In the long run this might have considerable effect on Soviet foreign policy should he become an absolute dictator on the Stalin pattern. For the present at least Khrushchev is not this and it seems probable his colleagues in the Soviet leadership might put the brakes on him should he get too brash. Of course it might well be that neither Khrushchev nor his colleagues would be averse to seeing the United States get in- conflict with Communist China provided they were certain the Soviet Union could stay out of it. One is bound to wonder at the current juncture of affairs whether the Kremlin does not see in such a conflict the solu tion of its foreign affairs prob lems. From Stassen submitted to Congress a For eign Operations Administration report covering activities in the last half of 1954. The report showed that the total value of military aid the United States has shipped to free world countries now stands at 10 billion dollars. Its main point was that with recovery in Europe, there has been a sig nificant speedup of foreign aid to Asia "where communism is stepping up its efforts of ex pansion." When the administration's new foreign aid requests hit Congress next month, even if they are at the level Stassen mentioned, they are likely to run into serious difficulties. . Chairman Byrd (D-Va) of the Senate Finance Committee, for example, has said he will try to end foreign economic aid next July 1 except for a "reasonable amount" of technical assistance Quote Secretary of State Dulles, in testimony before a Sen ate committee considering a bill, to extend the reciprocal trade law and give the President additional tariff cutting powers: "The Trade Agreements Act symbolizes a willingness of the world's greatest economic unit to follow a self-interest that is enlightened by a decent re gard for others whose des tiny has become inevitably interlocked with our own." CRYSTAL The Market and the Investigator 163 162, 161 Start of hearings 160 159 158 1S7 156 1SS 754 153 15Z 151 150 FEB. 25 23 MAR1 JT. Sharpest gain Ar ' in fifteen years STOCKS U- I 1 4 1 11 t U U 1 I L SEN. J. WILLIAM FULBRIGHT, Democrat of Arkansas, in caricature against the AP Average of 60 Stocks, which give ample testimony of the dizzy market since the senator's "friendly study" began: the attainment of an all-time high, the sharpest break in five years, and the biggest rise in a single day in 15. CONGRESS: Ike Wins Tax Cut Beaten Forty-five Republicans and five Democrats joined forces this week to defeat a Democratic proposal to cut income taxes 900 million dollars a year and give the Eisenhower adminis tration its biggest round in the battle over taxes. After killing this plan, the POLITICS: More Advice Shifts Recommended A "broad reorganization" of,but instead make cr0P Purchase the federal government's 104 lending, insuring and guaran teeing agencies was recom mended by the Hoover Com mission this week. j In its continuing series of re ports, the Commission on Gov ernment Reorganization headed by the former President said federal loans, guarantees and insurance now amount to 244 billion dollars. Advice from the commission was that some of the agencies handling this money be abolished, and others put under combined federal- private operation with higher charges to make them self-supporting. Among the agencies the com mission recommended shifting to private enterprise under government control were the Federal Housing Administration, which insures housing loans of millions of home buyers, and the Rural Electrification Ad ministration. The, commission proposed that the government cease making COURTS: Provoo Freed "Oppressive Delay" (year-old former San Francisco Once convicted and sentenced! S!r " j pounds he to prison for the rest of his life on charges of treason during wartime, John David Provoo became a free man this week. Last August his conviction had been reversed by an appeals court on the grounds the gov ernment had wrongfully tried him in New York instead of Maryland and that the judge had wrongfully admitted certain evidence. This week Federal Judge Roszel C. Thomsen m Baltimore, presiding at what was expected to be a second trial, dismissed the indictments against the 38 GAZING All-time lugh 2 -J 4 7 8 3 .10 11 14 IS Senate went down the line for the White House by proceeding to pass on a voice vote a bill extending present corporate in come and major excise tax rates for another year from April 1. The legislation went back to the House, which approved the tax rate extensions but added a provision which would have re duced the tax bill of every tax- I price support loans to farmers contracts, ai price support lev els, leaving it up to the farmer whether he wished to sell his crop to the government or to private buyers. The report said this would make no change in the farmers' price support situation, but would relieve the . government of managing many .thousands of small loans. With a government contract to purchase the crop in hand, the commission said, the farmer would be able to borrow on his crops up to their price support worth from private banks. According to the commission these recommendations and oth ers would result in annual sav ings to the government of about 200 million dollars. In a vigorous- dissent, com mission member Rep. Chet Holi field (D-Calif.) said that if car ried out the recommendations "would make it harder for American citizens to buy homes or to get loans for their farms or businesses." nay iccu uciucu me ngni oi a speedy trial within the meaning of the 6th Amendment. He said the government's "deliberate choice for a supposed advan tage" in trying him originally in New York caused "oppressive delay and damage to the de fendant. Further prosecution would violate the fundamental prin ciples of justice and fairness which we must apply even in the case of these charged with the most heinqis offenses," the judge continued. Provoo's indictment and trial grew out of one of the strangest cases of World War IL He was at Corregidor when that bastion fell to the Japanese in 1942. The government charged Pro voo shaved his head and donned the robes of a Buddhist priest, greeting the conquering Japa nese with offers of his service. At the New York trial two years ago he was convicted of offering to aid his captors, informing on and causing the execution of a fellow prisoner, and of willfully broadcasting propaganda for the enemy. Testimony at hearings preced ing Judge Thomsen's dramatic move brought out that the Jus tice Department arranged with the Army to have Provoo trans ferred from Ft. Meade, McL, to Ft Jay, N. Y'for discharge in the fall of 1949 because of a "more liberal" setup in New I York and because the chief fed eral judge in Maryland had been antagonistic to Justice De partment lawyers. U.S. Atty. George Cochran Doub, who has said the govern ment considered Provoo's case the most important treason trial since Aaron Burr's, .was away when Judge Thomsen's decision was handed down. There was no immediate word on whether an appeal would be made. If so, it could be taken directly to the Supreme Court. in Senate payer and dependent by $20 each. : In bitter debate which pre ceded the Senate showdown, opponents of any tax reduction at this time called the Demo cratic proposal "nonsense and a hoax." It was a compromise be tween the House measure and no cut at all, providing for a $20 reduction for a large group of taxpayers next year, plus $10 for each dependent except a spouse. Supporters argued in vain that it would distribute the tax burden more evenly, push up purchasing power and actually! increase revenues by withdraw - ing some tax relief given cor - porations and stockholders last; year. There were predictions that House spokesmen would put up a strong last-ditch stand for their plan. The chances for suc cess, however, , did not appear strong. Hearings "Point of Order" The fourth investigation of iu j r ,, wm a honorable discharge of Army dentist Ir - ingrCMUegdn nW!linmgl0n this week, and before it was an hour old it had some of the as pects of the tumultuous Army McCarthy hearings of last spring. Sen. McClellan (D-Ark), chair man of the Senate Investiga tions subcommittee, started with an explanation of the proceed ings and a charge the Army had once offered and then pulled back some pertinent informa tion. Then Sen. McCarthy (R-Wis), now only a member rather than the chairman, raised the famil iar "point of order" to suggest the investigation try to deter mine why President Eisenhower issued what McCarthy called a "blackout order" silencing ad ministration officials on a meet ing which took place last Janu ary. McCarthy insists that those at this meeting "successfully con- t t... and acted to instigate "an in vestigation of McCarthy." McClellan, after some fire- wv,xM cuuvlo petroleum products for years for a broadened inquiry would i J be taken up at a closed session. Some 25 witnesses have been lined up for the Peress hearings. McClellan says he wants to learn why the Army promoted the dentist to major and then honorably discharged him a year ago apparently "in disre gard" of a "considerable amount of derogatory information." Sidelights Giacomo Gracciolo couldn't resist the appeal of a waterside bench in Detroit's Civic Center Park. Daydreaming under the spell of the warm sun, he dropped off to sleep. Then he dropped off into the river. Workmen who saw him splash ing about hauled him out. Spring fever had claimed its first victim. Yes, it IS possible to sell an icebox to an Eskimo. Frank H. Whaley, touring the United States for the Alaska Visitors Assn., says Eskimos who worked for the Navy at Point Barrow after World War II bought many electric refrigerators and deep freeze units. And when the Navy moved out, taking along the source of electric power, the Eskimos simply set the refrig erations units out in the open air. (AU.RighttRettrved.AP Ntwtjtaturet) Rise of Dividends Sho ws By J. M. ROBERTS Associated Press A'eici Analyst i T LOOKED for a while this week like the question of whether stock prices are by "Who threw the overalls into the Wall Street Chowder?" But after a bad break on Monday, one of the worst in many years, the market showed some comeback ability. Most of the witnesses before r Sen. Fulbright's investigating committee had testified to their faith in the long bull mar ket as justified by the country's economic condition. But one or two said it was dangerous. Most of them also welcomed the in vestigation, but Secretary Humphrey of the Treasury, said it was the dangerous thing. The . "ev erything is all right" group, when the break came, accused the investigators of being re- Robert! sponsible, and of undermining public confidence in the state of the nation. Sen. Fulbright replied that he was still con ducting his hearirrfes on an ex ploratory basis, without seeking to prove any preconceived opin ion. He just wants, he said, to be sure that everything is really all right, and if things aren't airtight, to see to it that Con gress doesn't miss its obligation to apply corrective measures in time. Uncertainty Results k . r A good many observersjbuy more. Actually, however, thought that right there the, people with entirely inactive senator had pointed to the cause of the jitters. If there was a possibility that Congress would start remaking the rules, nuuuuy .nev wnai course 11 wouia laxe, ana uncertainty was the result Market analysts themselves, for the most part, seemed to take the break in prices as one of those shakeouts which occurs from time to time in any bull market. President Eisenhower, point ing out at his weekly news con ference that any group dealing I j f.A ..4: ...ytv maninnhtmn t i. ipiutccu wiui great cauuun, saiu j knQWS of nQ particular hase jof fte committee tudy which has not been conducted in manner. The papers were full of statis- Dates Wednesday, March 23 National Health Forum, New York City. Thursday, March 24 National Science Teachers Assn. convention, Cincin nati. Friday, March 25 Birthday (88th), Arturo Toscanini. Monday, March 28 American. Academy of General Practice conven tion, Los Angeles. BUSINESS: Booming Oil Reserve Increases teserve Increases .Plenty of gasoline for your car, and an abundance of oil for your furnace ... no shortage to come, That's the conclusion vou could draw this week from thelsum;Ption. tha would take care -..11.- latest authoritative survey the nation's oil and gas re sources. The study, sponsored by the American Petroleum Institute and the American Gas Assn., covered U.S. oil and gas reserves m 1954. It showed- that 1. The nation's underground reservoir of known crude petro leum and natural gas increased WELLS PUT DOWN IN U.S. OIL AND GAS FIELDS n 'THOUSANDS zs L l I , L . M I r- r m5 7 '43 SI 'S3 & Soundness too high might be superseded tics showing that prices- of stocks had not risen as far and as fast as other prices in recent years, and pointed out that the market was still highly selec tive. Department store, airline and other stocks which boomed in 1946 on the release of war stored demand were still in many instances not up to the levels they attained then and later lost when buying leveled off. Another facet of the situation was that dividends also have been going up for two years along with the market, al though many corporations were 1 being very conservative about their rates. Real Function Theoretically, it is this matter of dividends about which the real function of the market re volves. Theoretically, it is not a place for buying and selling pa per, but a place where the cor porations come to gather to gether the savings of millions of people into chunks of money sufficient to finance the nation's business. Theoretically, if the money put into stocks is truly invest ment, stockholders shouldn't worry about market prices at ail except when they want to 'portfolios get worried about the value of their holdings when ; there is talk of insecurity in the market Then things becin to nappen akin to a run on a bank. Accusations of Politics - Everybody fears that too much speculation in the market will give it an unhealthy hue and so arouse such uncertain ties. That's the chief thing the banking committee is looking1 into now. It wants to see whether government restric tions on credit operations are sufficient, and whether specula- ;- -. -f f'-i im likely to trap small investors. . Some supporters of the Re- publican administration also. ae cuse the committee of playing politics with the economy and of trying to make it appear the nation's prosperity is not as sound as it looks. The Demo crats did have a lot to say about a "depression" during the 1954 congressional, campaign, but now admit for the most part, that things are on the rise. They don't back down, however, from their thesis that what the Re publicans do for the economy is done for big business, not for people. All this and more is mixed up in the stock market investiga tion, and there's only one thing you can be sure of. At any given moment you can find an expert to prove just about anything you want to about it. i for the nth year in a row. de- 5pue recora consumption. 2. Knewn resources of rmH oil on Dec. 31, 1954, were at an all-time high of more than 29 Vx billion barrels a gain of nearly 616 million over the year be fore. At current rates of rnn- jo the nation's petroleum needs OI,fri a Inn.t 1ft -. imji, i jrccus, even ii no new sources were discovered. 3. Reserves of natural gas at year-end totaled more than 211 trillion cubic feet a gain of 263 billion in 12 months. Increased known supplies of natural gas and crude oil were the result of intensified hunting for new sources. The industry spent billions on geological sur veys, new leases and costly drilling. All told, 52,815 wells were put down in proven or potential . U.S. oil fields, an all time record for a single year.' Of these, 29,175 produced oil and 3,880 natural gas. One-third or 18,715 were written off as non-producers or "dry holes and abandoned. Many American companies stepped up their efforts to find new oil fields in foreign coun tries. It was a global hunt, ex tending from Borneo and Aus tralia to Iraq, Saudi Arabia, Iran, Egypt, Palestine, Turkey, France, Germany, Italy and in this hemisphere Canada, Vene zuela and Peru. Oil men say supply in the United States is catching up with demand. But in Europe, consumption is rising fast giv-, ing promise of new and wider markets. - 1 j.. r t