L
1
J
TUflE WdDKDD THUDS WEEK
. j a -kil
Furor Over The Brink of War" Is Prelude to Battle
Russians Are Dead Serious on1 Business Bets B'"onson Prosperity foreign Aid Plans
Overtaking U.S. Production
JW TOM I IIITNF.Y
Ainu-laird Prtn foreign Slaff V rilrr
Tilt essential fart emerging from xtudy of the new Soviet five-year plan in that the
Kremlin in throwing everything Into it giant effort to overtake the industrial
military might of the United State before 1070,,
The Soviet leadership'! record of fulfillment of all major coal for heavy industry in
the liHt five-year plan indicate the CommunihU have learned how to plan effectively j
for industrial development an distinct from agriculture, wnere ineir record is poor.
And thi pose a major que
km il i , , A
Wh.iiw
I ...
tmn for U.S policy maker:
Ii the United State to permit
the U.SSR. to get within
itnkrg position of world no
Domic leadership, no held with
turwtantial margin by the
United States? And what will
happen if thli
don take
plare?
The United
State ii by no
mean stand
ing Mill in
economic de
velopment, of
eourie. The
at decade
hai seen enor
mous progress
in the entire
American
economy. Addition! to produc
(ive capacity planned for the
coming year by American in
dustrial leaders teem to insure
continued rapid rate of
growth. i
No Eoora for Complacency !
But Soviet induitrial progress
has been pyramiding at so rapid
rate that the race between
these two powers can hardly be
viewed with complacency in the
United States.
A major depression in the
United States, for example,
eould mult in the Soviet
Union's overtaking the United
States. Most American official:
nd economist feci that this lr
extrcmcly unlikely. But even a
recession of few yean' dura
tion could enable the U.S.S.R.
to narrow appreciably the gap
between them a gap which;
has appeared' to many West-
erners to be the world's main.
hope of continued peace in the
remainder of this century.
The charts on the right sum
marize the relative positions of
the two nations in, four vital
field! The I960 Russian figures'
are the targets of the new five
year plan. The 1970 figures arej
projections reached by assuming
that during the decade between
1960 and 1970 the Soviet Union
will maintain the annual rate
of increase planned for the
1955-60 period. Actually, the
Russians have been increasing
regularly their rates of ex
pansion in basic industry.
Not shown on the charts is
the expected natural growth of
American production.
An interesting thougn not
ELECTRIC w
POWER F
m union or ''
viiowan Mouei
,
3?0 ,'
Z '
una us si usta u s a.
wsj o wo- ms
hi I
y . - v
STEEL
in mnuoHi
or rcms
126
50
75
Pi
4
A L
USSI.
less
US$1
I960"
urn.
W70
U.S.A.
less
imcnu of the coming five yrr
m quite hkrly they will then
,it i the living standard lector
ol the eeonoiry vhxh will be
expected by the Communiitt
Irtrleri to muke again tht ncc
ary sacrincc,
The new five-year plan'i pot
poncment once more of a rie
in low Soviet living standard
.brings up a vital question:
j If the enormous Soviet in
dustrial might is not to be used
t.ri.v.ta.'tlM ,.,..,, C.t,; lit,.
ing standnrds, juM what will it TWO IUSINISS GIANTS, Renjomin f airless (left), spokesman far steel manufacturers, and 0f war. The
be used for?
Three Channel
In bny modern economy sue h
Stir Real Trouble
ly l M. HOIJKHT.S
Atiorinlrd Veil Aeiei Antilyit
SECKETARY DULLES wondered out of furor thll
week and promptly marched Into a fight.
The furor was over aome ouotations in a uje rnaga
ine article which aome people interpreted as meanintf
the United Statcj had gone to the brink of war three
tlmeg, aucceeding each time In getting the enemy to oaca:
down jut in time.
The fight wa over a
term foreign aid program
The wordi behind the
were:
we were
brought to the
verge of war.
Of course we
were brought
to the verge
long-
furor
as that of the Soviet Union or
the United Sute there sit
three general channel of con
Kumplion of national output
II) by the population for its
need;; (2) by the state for
defense or ultimately war; and
(3) by the state or private Balance Achieved
enterprise taepenaing on me Fer lne flrst tirne
type of economy) for capital , .
ident Eisenhower
C.n.ral Malar 'raiidtnt Horlow Curtice (rioht) revealed this week In separateVstaltments sbility to get
heavy Industry's confidence In a continued boom. Curike announced CM plans a spend ane to the verge
billion dollars an expansion this year; Fairltts reported ihot the steel Industry plans spend j10"'
three billion an incrtattd production capacity during the next three years.
Boom Gives Lift to Budget
. l .... . a,.i ..... k.ir
in me ena noi oniy iniouxn cui-,n-m " vum- . , , , , l j .
tmg back government spending, plete. Principal credit for this . in (he faceon thej The foreign aid fight was real
had been taking voluntary
chance.
What it mostly boiled down to
wa tnat uune critics nia
manned him tin on some techni
"Veu have to take chance for rilllf, 0f language, whereas
peace, juM as you must take poIjfy 1Uef nad actually been
chances in war. Some say that bl..d on - lone-esUbhshed and
generally accepted thesis that
strength, with constant remind
ers to the aggressor nations that
it will be used when they push
too hard, is America's best war
deterrent.
The incident came early in
year of intense domestic politi
cal activity. Perhaps it served to
remind the secretary that, since
broad general foreign policy il
accepted bv both parties, it is
the little asides, the generaliza
tions, the mall words that need
not necessarily be said at all.
inevitably get into war. if you which will give his critics their
try to run away from it, it you targets.
are scared 10 go 10 me onn.. Trouhla Ahead
ting into war
is the neces
sary art It
you cannot
master it, you
1 ri 1 1
LJILL
IvktfH
, ... but bju of me current wave turn 01 events can m ascnoea " n . enl,rin. lne Ko- and promised to be earnest
House. Pres- of prosperity. The Presidentjto the record-breaking business J""11"" 01 lrfueon It Dulles said he believed the
this week estimated that tax receipts.; boom, which has seen tax .col-, ,,,. the lndochin a war.! administration could convince
in ratio ID cumo- .. , . nr.'rnnirre. aventuallv that thii
on mi qucsiiuii i iunnu. " n - j --- - -
walked to the brink and welcountry must be in a position t
investment
rt . 1 , l. . u y .
coumonthTdVniU realized an aim toward which'-oUen by prosperity, would lections rise
i.,.c,. ....... In .V'ha h.. ea.erlv worked ver!previde a budget surplus even.ing prom.
only deferred consumption of' since 1952. He sent the Congress ough planned spending in; IndicaUons that businessmen looked u in lhe fiC6i We look I encourage underdeveloped coun-
the Other two types, since it a balanced budget
represents goods used to produce
fiscal 1957 will be more than are banking on a continuation
COAL
1,H
IN MftllONI r 7-1
oe rows ,s
653
riiln
USSR
mi
U.S.S.R.
I960
USSI.
U.S.A.
less
tries to undertake long-term
I 1- Klllion Wntlara Vm.Vi.i- than U1. li.ina " I . .: :.u .u.
Eisenhower estimated federal "Va ' . I rf wl vl e.,.', Not Exact '-"P w u.
other tnoA Thu there are in rf,,r,n flrl 19.17 i..c w ,., iw awuranreonong-irrm.ia.ini.
effect only two ultimate types v h h rUnin next Julv 1 at Current Surplus Harlow Curtice, president of The secretary ina.caiea mat j, ,0 mect renewed Russian ef-..
ofCt!on4 t The House Tlso happily UrL tnT eSh.n
,. . , , j. .-j w ,,. . j . w inn . j l . j . . pub ic confidence inspired by red, but sometning less man rnce ,nt0 immature economie
tor Zvnl or l J" . uV, n . ? ' u " h" Bnhower administration exact a. to word.ge. He said he ,y.tMni nd i0 8ain . polilic.l
tL it? Z I Ln s h'?h'r th'n thM r'C"re- u 1 fT'.td ,8X Z P n will carry the nation', economy would never have referred to hyoId upon them
The U.S. wmomy p e.ent Aluinn,nt f thc inj!.SouCht duand there would be a small ' , he ..nwMiry rt,- ,nd that in- Thi add .n additional com-
Vrw 3. rZ n nil ., COal f 8 haanvcd buei came budget surplus during ine cur- e revM,ed lh GM erpreU. ,houid emphasize the plication t0 the cust0mary fight
.rld!!tJ J ' .has earmarked a record one bil- word "brought- rather than the L those who donH believe in
by rises in popular consum
Despite current high defense
expenditures, it is not "war-,. T
. User lax
. ieaerai Dorrowing on a uvi.u j .u. a.v that ih.
Tv.. in.,ut iTr,in ih-'. A new n an for bu d ne a nro- . i nouncea the same day tnat me
t iv t 1 t, vsuviif wi . - r r
PCTRCLEU 364
IN MfUIOMS
Of TOMS
77
149
a
U.S.S.R U.S S R.
less i960
U.SSR.
17 0
U.S.A.
tess
MniMi ' .has earmarked a record one bil- word brougnt ratner man me by those u.no don't believe in
nntinn DAA.HC A A4-Ua D r c T I llon dollarl for caPiU1 expend-iinferenc that the United States (oreign iid it a 1, in fc,,
n"e KUAUJ: AnOTher PrOpOSaiutumthis year. Benjamin Fair-! foreign aid, or believe in it only
, . . . ... i... less, presioeni 01 me American 1 -
.money 'would be raised through; , ; Steel Institut HOUSinC
federal borrowing on a bond nniI . m. lh,t lhi IWWJlliy
KUlfa . . . m . a
other hand, has been consistent- posed 40,000-mile lystem of in- Cort., proposa, pasMd by the f!T!!.7 ...w ."iau,ck Chan
Ihwsys acros. bu, ... Hous. wouid c After a clamp
- n.mnt;nn a 1 fiat inn .'n fe arfvanrian hl . -. . UOli
ly carrying out a policy of rais- terstate superhighwsys
consumption
less week.
for those countries who are defi
nitely committed to the West in
the Cold War.
It is traditional that Congress
does not like to try to commit
. . fiitur CAnfmin It ra n of
over six monins, tne govern- ".7 V.. "u.ii
ment acted this week to loosen l"' .-....
clampdown of barely;1
1
a . . 11. .. it. 1 : 1 k v.. .jj;..
ion wic uuik vi uiv iiitn..u nancea in pan uy uumg,
output a penny a gallon to the federal
. .l .HHnairv finri ii fiKil it V ti U'flfJPar 2
This means tna; me f rurthermore the he world, and in particular the tee.
Russian whose l.v ng nQl'" 7 " " econom c only power which is in a posi- The Clay plan envisaged a 30
i, sUU Uttle higher than U was r record of ' prev ious onoc V P
1028-before the nugur.uon "V a eult of the United States-intend to ment footing most of the bill in
the five-year plans and coiiec- ms develop b)rm? , . 27 billion dollar project-Th
tiviiation ol larming wm c
Dates
Thursday, Jan. It
Speech by Gov. Smylie of
Idaho on GOP "Pulse of the
Nation" Forum, New York
City. . , .
Saturday, Jao. Zt
Convention of the Ameri
can Academy of Orthopedic
Surgeons, Chicago.
Monday, Jan. JO
Prine Minister Anthony
"klen arrives in Washington
to begin tflks with President
Eisenhower,
irrMi . ..L. 11 u.1
r .. . senate dui not me nousc, wouiu ,- ...:. v ,u.
1 xnls set ud a flve-yaar program with . . . Z ', .... ;i);
living standards at much less weex. !lhe ,0Vemment paying 7 bil- "",",, jllrin, ,1.. ... ment ,clM ,n" WWK 10 10O,en li w. V hnrrfu
-.T-.... .w :.. .11 ... mu. r. r u.l! . . -T--.v--.tons annually during the next f a Mminirtr.inA plan had to hurdle
r.u. ..m u..n in vommmrc .ur "-,Jon oouar a. me major ....r. lh The price Ug. three V.tVr. Adm n Utra on; Regardless Of the Dulles be-
put. Development, a nonprofit organ-e money would come from bilIi'd 6 Veterans Administration Coneress will ao along
So long uth a Soviet pol- -tion of businessmen whose re-Ungressional appropriations. bllllon dol"rs- mortgage rules. 'when the need has befn thor.
icy is continued it inevitably search tudie have been used inj The CED plan would scrap the Tax Cut Delayed ; Llst July the repayment ouohy eXprained the proposal
suggests that it is the second tye past in the formulation of hond issue idea and finance the In his budget message, Pres- period on loans insured by . m jon'. terrn ,SDect
""""' ... nriKiatiuM, .uKK..u ... ....... supcrnignways largely oy raminn lunu um-ihiuc lunxu uia. ciinrr vi u.e jemit, 'and the increased appropriation
state for defense which is ab-i : jn tha. the roads be built thf federal gasoline tax from 2 the surplus margin will - be cut from a maximum of 30 . . .fi t rocKy legislative
sorbing in one and another fash- over the next 29 years and fi-10 3 tcntJ , gallon. "slim" in both fiscal 'M.and "57. years to a maximum of 25. This road
ne aia not aavocaie a tax cut, wees, ine action was uiktiku .
proposing to use the surpluses and 30-year mortgages which; eaaers upposea
on reduction of the national make possible slightly lower j Sen. George, chairman of the
debt jmonthly mortgage payments Foreign Relations Committee,
Secretary of the Treasury can again be insured by both! was against it, and so was Sen.
George Humphrey, however, ad-! the FH A and the VA. jKnowland, whose job it is to
mitted to reporters that the A joint announcement by the; line up as much strength as he
Treasury's forecast of future agencies said last summer's ac-lean behind administration pro
tax receipts may be "unduly tion ending 30-year loan guar- posals.
conservative." If such later turns antees was aimed at avoiding; The long-term proposal is, prl
out to be the case, the ad-over-extension of credit and at marily, a propaganda weapon.
Iministration still might recom- helping to protect home buy- inasmuch as it merely would
I mend a tax cut before Congress ers against inflationary price in- give congressional approval for
! adjourns in the summer. creases. t what the administration already
I As in the recent past the new! The announcement added: has most if not all of the au
budget was dominated by the' The reduced volume of home thority needed.
Cold War. Defense and other building has reduced the hazard Despite the difficulties facing
'expenditures for protection0' over-extension of credit to the proposal, help for it has
such as atomic energy and the Pint where the 30-year come from the usual quarter.
foreign aid took up two-thirds maximum mammy again may just Deiore uuiici ana unucr
of thespending.Inthiscategory.be permitted.". .secretary Hoover urged their
the President called for an in- Numerous builders have pro-; views on Congress, the Russian!
t .,w. vmi,.,. tested that the tighter mortgage announced a program of eco.
This suggests mat me soviet gasoline tax.
Communist party slogan of, H. C. Turner Jr., chairman of
"heavy industry first" is in fact the subcommittee which drafted
a phrase which in reality means the report described the CED
"preparation for war." j highway plan as "somewhere!
And this in turn leads one to between Clay and Gore."
surprising fact which emerges j New five-year plon goal. ssk other questions: He referred to rival roadbuild-i
from study of the new Soviet j Projection based on '55-'60 1. Just how long does the inr plans debated inconclusively
five-year plan is that again thej re ef jncreose. Soviet government intend to by Congress last year, one backed,
Soviet consumer will have to! , .carry out this kind of a policy by Gen. Lu:ius D. Clay, head of
take a back seat in economic relatively minor benefits while and what does it ultimately President Eisenhower's highway
1- ,u. c.,;. .lot. ronliniiM in n. Dortcna lor 111c icsi vi u.c iwiiiniiiKrr. i.u w.c vu. w, uv..,
... , i w. L..,j,
Emphasis on Industry crease ita industrial productive "
Gore (D-Tenn). chairman of the
Just how does the rest of Senate Public Road Subcommit-
Quote
Secretary of State Dulles,
in summing up his position
on American foreign policy:
"I have devoted my whole
life to the pursuit of a Just
and durable peace. I believe,
however, that there are basie
moral values and vital In
terests, for which we stand,
and that the surest wsy te
avoid war is to let it be
known In advance that we
are prepared te defend these
principles, If need be by life
Itself."
Report from Jordan
Twenty years ago a dimihutivej
British officer named John Bagot,
r.inhh rame to the deserts of
ini-Han Snpakin. Arabic like a
native, wearing Arab dress, rid
ing a camel he coaxed the rou
and-ready Bedouins into
ciplined army called the
Legion man-for-man the
fighting force i' the Middle
Now chief of the general staff
of this crack-army, he is called
by his enemies "The Uncrowned
King of Jordan. ....,-,,..-...,..
Writing from Cairo, Egypt
after a trip to riot-torn Jordan
where cen rship has been in ef
fectAssociated Press Corre-
1 security , , wiU- vr,n thi week
aecrecy. more data on increased dcribod clubb as tne No. j, ,
use of pushbuttons in possible of the ,nli.Western ele-
future wars are emerging from tpearheadcd violent
jni.ii.. - -- nots in almoft every town in
One of the latest devices to be jordan iast weck.
.announced is SAGE. The Pen- Orderhasbecorestoredthrou".h
tagon descriijc the device as a most of the country and a week
"quantum jump" -a major ad- ,cng curew ijflcd jn the chief
vance in effectiveness. It is a ,cjt es Restive elemenU tempo
device to operate manned war-;rarily called off QiT demon
planes from the ground, jstratjons after achieving their
When it was previewed for! first political objective, a govern-
"the press SAGE was described. ment promise that Jordan would
as sui important factor in thejnot sign the Western-sponsored
attempt to permit fleiense meas-i Baghdad Pact
Rioters Aiming at British Organizer
far suggested for accomplishing
the first purpose is to have neigh
boring Arab states Saudi Ara
l:.r in snrnrlina in dtrpntrthen TUleS naVC mterierea Wltn me
the defenses of the United States housing market and are respon
! and its allies. s'be or harP cut ln nome
Other increases were recom-, starts.
mended in the field of domestic me relaxation win oe ap
economic and social
nomic penetration into uann
America.
As so often remarked before
in this column, when the Rus
sians have committed some overt
nlicable on all VA-suaranteediact just at the right time to
bia. Egypt and Syria-pay the!pr0grams to susUin what thej loans not closed by Jan .17 and.stiffen some weakeningAmeri
subsidy now coming from the: president railed the nation's on all FHA-guaranteed loans'can or Allied po icy. The Rus-
like a A XV 2 '
Arab! 7 A 1 , y -; . 1 .
. best. .V J VA7 S -1
Pushbuttons
1 o-
Sidelights
ures to catch up in speed and
power with the offense.
But victory-flushed opposition
leaders from left to right warned
Y ?r Z
Wff ' " V i
t - ' . . .
It. Gen. Clubb, British chiaf of the famed" Arab leaion
much of Arab Palestine and in
herited. nearly a million urban
ber wolves. Suddenly, one of the
wolves took a mighty leap at its
or agricultural Palestinians, half j tormentor. The animal hit a ski
of them homeless refugees blam-u the plane whipped by and the
ing the west ana uiuoo ior snlx piled up in the snow, com
their fate, - 'oletely wrecked. Although ma
Combined with previous an-that their-rxt several hours, Bur-
nounment, of plan, for dr jput the nation's army under Arab ,onf J 0. must flrs Uk. over this' politically volatile, these people !gesI ,nd Ulyt were uninjured.
t air atomic weapons and long-, control. According to Corre-; wave of trouble can rexpuraft rid ofiwere the mainsprings of mobs iThey Ceure they have the dis-
h emiauto-isnnlenl Wvnn. that means they " me army is not roc- r-cm. whirhreoentlvatUcked-svmbols'.inMiftnnf Kin rh first nersons
- . ,. , - 7 . v-
JZZ Z.r. . imnreSsive'intendihatr.1ubh must eo. Lead-! The Arab Legion as financed uiuoo -no uu. ,.
.ZXZ i lis military effec- er f the opoosition to the gov- by British subsidy of newly.comm.no.n, m.
tiveness. eramentof Western-backed King,$22.00,000 annually. Jordanese
officers I which recently attacked "symbols' tinction of being the first personsi
of the West" all over Jordan. !ev,r to see a wolf score a killj
The most popular method so ,AttRiohuHtnrvt.APNw$ttmion an airplane. I
Rritish Rfnnrts from Damascus'.'.. n.,A.A rncA.rif ,r,A not insured by that time. sians have done it again.1
- 1 unjivui llicu yt ij saaivi
say the three states already nave t0 spread iU benefits more wide
made such an offer to the Jor-.jy throughout the country.
dan government.
Wynn reported the opposition
leaders predicted that the gov
ernment will reject the Arab
offer. They added that if this in a When i3-year-old Karen
'ff ct occurs, blood will again flow Smith of Ogden, Utah, broke her
in the streets. jfoot this week she wasn t sur-;
Britain has tried to remedy i prised. In 1948 she fell from a;
the Jordan problem by offering i horse , and broke an elbow, in
membership in the Baghdad '1 950 shfslipped on ice and broke ;
Pact promising economic aid and a wristMn 1952 she broke a foot;
a greatly expanded Arab Legion.iin gym class, in 1954 she cracked
One opposition leader retorted a bone in her back. This year it
the "expanding the Arab Legion was a foot again, broken when
onlv means expanding the power she twisted too far in ballet class,
nf niuHh o imDrison us all." iWith a record of an accident
In the past although Jor- every other year since W48. Ka
dariese governments have come ren gloomily reported 'I m not,
and gone, Clubb's Arab Legion iooing ioi.u i . ;
has provided stability and tran- j,cK Burgess and Richard
quility for Jordan's half a mil- L,nya of Tower, Minn., were'
j lion inhabitants. After the Arab-iskimming over the snow-covered
,Tra.1i H'S, llA11Vr the situ1:.. - - T sir. 4ki wnlr!
ation changed. Jordan annexed playfully chasing a pair of tim
t t
MwfM, MM Svitr Nwl
HOW NOT, TO REDUCE
0 M t