Senate Studies Truman Appeal To Aid Balkans Heads of State, Navy And War Departments Discuss Truman Plan Washington, March 13 iff) , Heads of the state, navy and war departments discussed with the senate foreign relations commit tee behind closed doors today President Truman's appeal for $400,000,000 cash and indirect military help for Greece and Turkey, War Secretary Patterson, Navy Secretary Forrestal and Acting State Secretary Acheson brought along top aides to ex plain details of the proposed moves which some members of congress openly declared might lead eventually to war with Rus sia. Action to Be Delayed To report on the military as pects of the president's proposal . to help train and sustain Greek and Turkish troops, Forrestal had Vice Admiral F. P. Sher man, deputy chief of naval op erations, with him. Chairman Vandenberg said the session was called "to can vass the whole situation," but that any action might be delayed for some time. "It is my understanding," he said, "that the house will be asked to act first on this legis lation." He referred to measures to carry out Mr. Truman's pro posals. Actually, Vandenberg said, the senate group has not yet j-e-ceived any bills dealing with the subject.. No Bills Offered "The plain truth is that Soviet-American relationships are at the core of this whole problem. Vandenberg declared. "Every effort should be made to ter minate these controversies. This effort must occur in plain un derstanding of basic principles which we shall not surrender. Asserting that the independ ence of Greece and Turkey must be preserved "not only for their own sakes but also in defense of peace and security for all of us. Vandenberg added that in this critical moment "the president's hands must be upheld. Mr. Truman told congress grimly yesterday that armed communists and political infil trations threaten the "very ex istence" of Greece and Turkey. Restrictions Sought Although the Michigan sena tor obviously was guided by a desire to support the president's proposal as fully as possible in order to preserve the principle of bipartisan foreign policy, some of his democratic and re publican colleagues made it plain that strenuous attempts will be made to write at least some restrictions into legislation to authorize loans to the two countries. (Concluded on Page 17, Column 6) Hungary and Korea Next Washington, March 13 WV- War-torn Hungary and occupied Korea loom biggest today on any list of potential candidates for extension of President Tru man's declaration of support for free peoples. Officials of several govern ment departments already are at work on proposals to help these two nations whose plight like that of Greece and Turkey has resulted at least in part from Soviet Russia's expansive pres sure. The foreign help which the United States has extended since V-E day suggests that a elnhal nrnieption nf the nnlirv Mr. Truman outlined yesterday -to coneress mieht later include China and Italy as well. This government made plain Its intent to bolster Hungary in announcing a $15,000,000 sur plus property credit last month, and still later by voicing a sharp protest against Russia's "direct interference" in an attempt to upset the "freely elected" dem ocratic majority in the Buda pest parliament. Korea, a nation divided by American and Russia occupa tion zones, has a status some what like Austria, but the Koreans can qualify as a free people under formal declara tions of the wartime allies. IMosquito Control A joint Washington-Oregon in terim committee to study mo squito control along the Colum bia river is requested in a reso lution passed by the house and lent to the senate today. Immigration Quotas The house approved and sent to the senate today a memorial asking congress to maintain ex isting immigration quotas, but take its just share of displaced persons irom turope and Asia, C apital 58th Year, No. 62 Marshall Asks Unified Law for Denazification Moscow, March 13 UP) Sec retary of State Marshall, speak ing on denazification before the foreign ministers today, said that the United States has "been disturbed by frequent reports in the Soviet zone of Germany that former active nazis may be cleared by joining the socialist unity (communist) party." Apparently speaking to fore stall an expected Soviet attack on American zone denazifica tion, Marshall read a three-page statement relating that 12,000, 000 persons have been registered for investigation, 200,000 tried and 370,000 removed from of fice in the U. S. section of Ger many. Nothing to Conceal The secretary added that the American zone denazification "went far beyond allied control authority directives," and assert ed "there is nothing to conceal." He pointed out allied control council had not received full reports on denazification in the eastern (Soviet) zone of Ger many and added "my govern ment opposes the use of denazi fication in favor of any political party." Marshall said lack of uniform ity in denazification procedure and practices led to distrust among the occupying powers and recommended that the for eign ministers direct the allied control council to adopt Uni term laws on denazification. Russians Promote Nazis Foreign Minister Ernest Bevin told the council that the British had a list of 40 high nazis who are holding important positions in Germany's Soviet zone. (Concluded on Page 17, Column 8) Renort Crisis In Bulgaria Istanbul, March 13 UP) Ru mors of a crisis in Bulgaria cir culated in Turkey today in con nection with reported move ments of foreign diplomatic personnel. Usually reliable sources said a United States diplomatic courier stopped at the Bulgarian fron tier was told by a guard, "There is a terrific crisis I can't say more." Unconfirmed reports ' mean while said the French diploma tic mission to Sofia had depart ed that Bulgarian capital and might I reach Istanbul today. News dispatches earlier had re ported a French protest against Bulgarian treatment. The U. S. courier, informants said, was refused admission to Bulgaria, despite his visa, by authorities who declared they were under instructions in his case. These sources said that a Pole on the same train, identified from his credentials as Council lor Ludwik S. Bartel of the Tehran Polish legation, was al lowed to enter Bulgaria with his wife and child after authorities had telephoned Sofia. They said the American re turned here from Svilengrad, where the incident had occurred early this week, and left last night for Cairo. These sources reported the Bulgars were curtailing all movements sharply in a border zone nine miles deep. Truman's New Foreign Policy May Affect Reduction of Armed Forces Washington, March 13 P) President Truman's newly enun ciated foreign policy confronted the United States today with the problem of deciding quickly whether to continue reducing its armed strength. The address to congress car- riea no implication that an armed clash is expected or con templated. However, the armed forces are maintained for the support of foreign policy in time of peace At the war and navy depart ments no one was prepared to say immediately what impact any new foreign commitments might have on the planned size of the armed services. It was pointed out, nevertheless, that a critical time element is in volved in at least two phases 01 tnis general question: l should the planned aver age strength for the year be ginning next July 1 of 1,070,000 for the army and 571,000 for the navy be carried out or should the rate of reduction be checked io siaomze me armed services at a higher manpower figure? 2 In this case, will congress ana tne White House proceed with Mr. Truman's recommenda tion of March 3 that selective service be not renewed unnn iu I expiration date of March 31? Entered u tecond Salem, matter it S&iem. Oregon Truman Rests At Key West On Vacation Key West, Fla., March 13 iff) President Truman loafed at this naval submarine base today while world capitals speculated on the implications of his for eign policy address to congress yesterday. Mr. Truman, who usually gets up anywhere from 5:30 to 6:30, slept until 8 o'clock this morn ing, an hour later than his press secretary, Charles G. Ross. Ross said Mr. Truman has not talked with Secretary of State George C. Marshall, at Moscow, since his speech calling upon the United States to back "free peo ples" in their resistance to com munist encroachment in Greece, Turkey and other trouble cen ters. Favorable Telegrams Marshall is expected to get in touch with the president before the chief executive returns to Washington Sunday or Monday. Presidential Press Secretary Charles G. Ross said about 20 telegrams, all favorable, were forwarded to Mr. Truman at his long week-end retreat here last night. They came from individ uals. The White House in Washing ton reported the telegrams were mounting into the hundreds by mid-morning. Eben Ayers, as sistant press secretary, described them as "generally favorable." "The president has absolutely no plans while here other than to loaf," Ross said. Welcomed by Citizens Presumably he will follow the course he pursued here last No vember, swimming at an outdoor pool on the base in the morning, Snd swimming and sunbathing at a nearby beach in the afternoon. The president, looking tired after a strenuous two weeks in which he delivered three major addresses and held fateful con ferences on the crisis in Greece and Turkey, left Washington im mediately after addressing con gress. The civilian population of Key West turned out virtually en masse to welcome him, lining the streets to cheer as his auto mobile procession moved through the town en route to his quarters. Greek Officials Thank Truman Athens, March 13 (U.R) Prime Minister Demetrios Maximos said today that Greece is eter nally indebted to President Truman and the American peo ple for the president's offer of aid. "I am deeply touched by Mr. Truman's message," Maximos said. "Greece is wholly and eternally indebted with grati tude, to the president and the American people." The communists denounced the American policy as "neo fascist." Left wing newspapers called it anti-democratic. Mod erate opposition newspapers em phasized the president's con demnation of extremists on both sides. Mr. Truman's speech was widely distributed. Morning newspapers splashed it. Crowds massed around radios to hear it broadcast. The Nation's military forces are of definitely modest propor tions in the area where the new foreign policy focuses most sharply, the Mediterranean. On the ground that until they receive a directive from the president they will not know the nature or extent of as sistance that might be given Greece and Turkey, war depart ment officials declined to dis cuss publicly the terms of Mr. Truman's suggestions. Pending further clarification by Mr. Truman, his recommen dation for "instruction and training of selected Greek and Turkish personnel" is assumed to suggest a practice long fol lowed by the army in the case of some Latin American and other nations. Under that prac tice, selected army and air of ficers of other nations come to the United States for attendance at army schools and expericnoe in field operations of our army to familiarize themselves with American equipment and op erations. 1 TT Oregon, Thursday, March . I 11,11,1 11 wnv" hs. 'f t i I I 1 jp Oregon Industrial Tourists Visit Salem Plants Shown are W. H. Baillie, Glenn Prathcr, Ted Medford, Grant Murphy, Linn Smith, Hcdda Swnrt, Walter Musgrave, D. F. Stevens, M. L. Kas lens, L. E. Davies, Dan Cavanagh, C. A. McClure, Mai Rudd, Leo N. Childs, Carl Hogg, Paul Laartz, H. R. Bleything, Earl C. Burk, R. F. Lamb, Ed Potter. 2 Salem Industrial Plants Inspected by Newsmen On a tour of industrial plants in Oregon, a group of newsmen representing industrial magazines and newspapers in Oregon and other states, today visited two of Salem's industrial plants, with the tour arranged by the Salem Chamber of Commerce. The group, making an annual tour of Oregon industries under the sponsorship of the National As UN Boundary Balkan Board Lake Success, N. Y., March 13 (ff) Authoritative sources said today that the United Slates may propose the establishment of a permanent United Nations boun dary commission to watch over the trouble spots in the Balkans. These sources said U. S. offi cials felt it may be advisable for such a commission to watch the borders of Greece, Yugoslavia, Albania, and Bulgaria for some time. Such a step appeared to be tied in closely with President Truman's declaration on Ameri ca's new foreign policy aimed at halting the world march of com munism, especially in the Bal kans. . There., was. no. indication- just how far the American delega tion to the United Nations has gone toward drawing up a plan for a permanent UN boundary commission. But authoritative sources said it was under con sideration. An American delegation spokesman said the president's proposals to aid Greece would not conflict in any way with the efforts of the UN security coun cil's Balkan inquiry commission now studying frontier conditions in Greece, Albania, Bulgaria and Yugoslavia. Indians Want Vets' Benefits Washington, March 13 iff) Four Hopi Indians are here to find out, they say, why the red man can't participate fully in veterans' benefits. The Hopis and Navajos occupy a vast area in northern Arizona and New Mexico. They are herdsmen, silversmiths, weavers of blankets. The Indians yesterday saw the veterans' administrator, Gen. Omar N. Bradley, and a sched uled 15-minute talk lasted over an hour. They said they told him they cannot get loans for housing, for business or to buy livestock be cause their only security is their interest in tribal lands, of which the federal government is trus tee. They said the Indian schools do not prepare them for the white colleges and the Indian colleges do not give them tech nical or professional training! sufficient to make a living, I Angell in Favor Of Helping Greece Washington. March 13 (IP) Rep. Angell (R-Ore), said today the question of relief for Greece demands "immediate action." "We are facing a crisis more serious than any that has con fronted us since Pearl Harbor," Angell said in a statement. Unless the United States helps Greece its present government will fall, he said, and a com munistic regime will take over. "The result of such a move," he continued, "will give Soviet Russia dominance in southeast ern Europe, which will result in control of the Dardanelles and eventually Turkey and the east ern Mediterranean with full sway over the whole Middle East." omnia 13, 1947 sociation of Manufacturers and the Columbia Empire Industries from March 10 to 18, came to Salem from Albany, Wednesday night. This morning they vis ited the Paulus Brother canning plant, now under construction, and then the Oregon Flax Tex tiles plant. After being taken through the large concrete building that is to house the Paulus Brothers cannery, by George Paulus, a half hour press conference was held. Following this the news men continued on to the Ore gon Flax Textiles plant and were shown through the plant by Clyde E. Everett, manager and Albert Lamb, assistant manager, who also held a press confer ence. A luncheon at the Marion ho tel, where Charles Sprague, member of the Chamber of Com merce planning commission, told of the plans of the commission fori the development of Salem was'ithe final event on the Sa lem schedule of the touring group. News men coming to Salem were Lawrence Davies, New York Times; Paul Laartz, Ore gonian; Stan Weber, Oregon Journal; Dud Stevens, Western Industry Magazine and the West Coast News; Merritt Kastens, Chemical Engineering News; W. C. Eakin, Albany Democrat Her ald. Accompanying them on the tour are Fred Kcmpe of the Portland office of the National a,,H n fSnvnnno-h nf the San Francisco office of NAM. Joining the visitors on the lour here were Glenn W. Prath cr, James Walton, William H. Baillie, Albert Lamb, Linn Smith, C. A. McClure, Carl Hogg, Mai B. Rudd, Ted Medford, H. R. Blything, Walter Musgrave, Earl Burk, Ed Majck, Hedda Swart, Leo Childs, Grant Murphy, Ed Potter and Claude M. Litchfield. Refuse to Send Oil Machinery to Russia Washington, March 13 (fP) Chairman Taber (R-NY), said today the house appropriations committee has rejected a state department request for author ity to send $25,000,000 worth of oil refining equipment to Rus sia. The senate appropriations committee turned down the re quest earlier. "We can't do such a tiling; that's appeasement," Taber told reporters. The chairman said the equip ment, mostly pipelines, was ob tained for shipment to Russia under lend-lease agreement but had not been transported prior I to last December 31. I A provision in a 1946 lend- lease appropriation prohibited use of any administrative funds for shipments after that date. Taber said the slate department asked authority to complete the transaction anyway. Oihus in Charge Of Valley Project Portland. March 13 UP) Percy M. Othus, Portland, was appoin ted special assistant in charge of the Willamette basin flood control design and construction program for the army engineers today. Othus, former assistant chief of the engineering division, re cently returned from China where he was executive engineer for the Yellow river consulting board. , if n . MOn3nts 3,4.10 Coast Oil Lands Lands in Court Washington, March 13 VP) The supreme court hears argu ments today on the govern ment's long-disputed claim to submerge coastal oil lands wortlj billions. Attorney General Tom C. Clark has asked the high tri bunal to declare that the United States holds title to lands ex tending three miles seaward from the low-water mark along the California coast. The out come of the case will determine ownership of this land belt off all the nation s coastline. In addition to being the sub jeet for years of conflicting claims by federal and stale of ficials, the dispute touched off a public flareup in President Truman's cabinet last year which ended in Harold L. Ickes resignation as secretary of the interior. Ickes testified before the sen ale naval committee that Ed win Pauley, California oilman, told him in 1944 that he could raise $300,000 in democratic campaign contributions if the government did not push its suit to Eain possession of the sub merged lands. Snyder Opposes Any Tax Cut Washington, March 13 UP) Rep. Knutson (R-, Minn.) de clared today that President Tru man's foreign policy statement, raising the possibility of heavy new financial commitments abroad, will not slop the repub licans from cutting taxes. He made this statement to re porters after the house ways and means committee, of which he is chairman, heard Secretary of the Treasury Snyder strongly oppose any tax cut this year Snyder said there might be a tax cut later and told the com mittee that this year, for the first time since 1931, the gov ernment's income may be as large as its expenditures. Knutson is author of a bill for a 20 percent cut in personal income taxes As to the effect of President Truman's statement, Knutson said "Of course if we arc going to shoulder the burdens of the world we could have no lax cuts now or in the next generation If we don't have a tax reduction now we will never get it." Snyder criticized Knutson's bill specifically. He said the administration specifically opposes granting now or any other time a pro posed 20 percent "across the board" tax cut on incomes up to $303,000 a year " Mfl McNarney Rejects Soviet Charge Of Maintaining German Troops Frankfurt, March 13 (U.R) Gen. Joseph T. McNarney today rejected a charge of Soviet Foreign Minister V. M. Molotov that units of German troops were being maintained in the American occupation zone of Germany "We completely reject the ac cusation," McNarney said when asked for comment on Molotov's reported assertion yesterday that 9,000 Germans were being maintained in auxiliary detach ments in the U. S. zone. McNarney is the retiring military governor of the Ameri can zone. He will turn over the post Saturday to Lt. Gen. Lu cius D. Clay, who is moving up from the position of deputy military governor. He said that while the de militarization of the zone was "well on the way toward ac complishment, the major tasks are as yet only begun." Those he described as the re-education of the German people and set ting up a peaceful and stable German economy. Amended Rural School Bill Sent to Senate Measure Passes Unani mously As Substitue for Bill Passed by People By James D. Olson Without a dissenting vote, H. B. 435, the rural school bill substitute for House Bill 80 of the 1945 legislative session, was approved by the house today and sent to the senate for con siclcration. H. B. 80, one of the most con troversial bills of the 1945 ses sion, was referred and approved by a vote of the people. Be cause of passage of the basic school bill, it was found necos ! sary to amend H. B. 80, with the result that the house education committee has been working on proposed amendments for eight weeks. The amended rural school bill extends the time of its operation to January 1. 1949, Rep. Colon Eberhard of the education com mittee explaining that this was felt necessary in order that two new systems of school financing would not be started at the same time. Under the proposed rural school bilt approved by the house this morning, rural school districts containing a number of rural schools would be set up with an elected budget board for the district considering the in dividual school budgets within the district and setting a uni form district school levy. The individual schools would be em powered to pass budgets for cer tain added activities such as kin dergarten classes or other sim ilar features. First class school districts are excluded from the plan. "I do not think that any mem ber of the education committee is enamored with this bill," Rep. Eberhard said. "Many county school superintendents would like to kill House Bill 80. How ever, the voters approved the bill and the committee felt that it was duty-bound to draw up such amendments as to make the rural school district plan work able." Welfare Tax Costs Governor Snell called a clos ed conference today when the $16,000,000 public welfare problem was discussed. Follow ing the conference the governor announced thai a sub-commit tee had been appointed to work out a bill to require counties to levy certain millagc tax to cov er welfare costs. Details of this bill together with the amount of the maxi mum levy are to be worked out by the committee, Governor SneU said, after which the main committee will again meet. At tending the conference were the chairmen of the ways and means committees of both houses; Assistant Attorney Gen eral Rex Kimmel; S. W. Starr, state auditor; Miss Lola How ard, state welfare administra tor; Mrs. Lee Patterson, member of the state welfare board; Ad thur Miller, regional attorney (Concluded on Page 19, Column 7) Redmond-Rainier Win Consolations Eugene, March 13 iff) First round losers in the Oregon state high school basketball tourna ment swung into consolation play today with Redmond meas uring Astoria 42-39. The winners held a 24-17 mar gin over Astoria at the half. Bob Harmon of Redmond led the scoring with 14. Doug Logue paced the losers with 11. Rainier captured the second consolation game, putting Mo lalla out of the tourney 47-38. At the half Molalla held a slen der 22-20 lead, but Bob Ball sparked his mates in a second half drive that brought victory. His point total was 15. Bill Kraxbergcr led the losers with 12. McNarney also rejected a protest by the Polish govern ment on the maintenance of "Polish guard units" which the army has armed to guard sup plies and military installations. "We have every intention of maintaining such Polish units as are needed in the United States zone," he said. However, he added that mem bers of the units could go home to Poland any time they de sired. Camps fur displaced persons in the U. S. zone will bo con tinued until they are repatriated or resettled, McNarney said. Molotov had said that a deci sion had been reached to remove displaced persons from camps and deny them special privileges. Oregon House Passes 2 Cents Tax on Cigarets Expect to Raise $4 Mil lion 2 Year Limit Plac ed to Stop Referendum By Paul W. Harvey, Jr. The Oregon house of repre sentatives, without debate, passed 53 to 5 today the bill to tax cigarets 2 ccnis a pack age for the next two years only, and thus raise $4,000,000 for the state's general fund for the next biennium. The bill, coupled with a previously-approved measure to let the tax commission take its $1, 000,000 expenses out of revc nues, cuts the general fund defi cit to $5,000,000. Both measures still must be approved by the senate. 5 Vote Against Bill Voting against the cigaret tax were Barry, R. A. Bennett, Wiley, Wilhelm, and Manley Wilson. Rep. Robert C. Gile, Rose burg, chairman of the house as sessment and taxation commit tee, told the house the commit tee put the two-year limit on the bill In the hope it would stop a referendum attack against it. The people defeated a simi lar bill two years ago by a nar row margin. The senate defeated 19 to 9 a bill to extend the unemploy ment compensation law to all employers. The law now applies to employers of four or more persons, but other employer may come under the act if they wish. Suspend Vet Loans The house adopted and sent to the senate a bill suspending operation of state educational loans for veterans between next July 1 and July 1, 1949. The sponsors said the law would not be needed during that period because federal loans will be available, and that the state law might be placed into operation again after the federal govern ment stops its educational loans to veterans. Another house bill sent to the senate would let the state land board make reclamation surveys to reclaim its swamp or over flow lands for grazing or agri culture. Governor of Wisconsin Dies Madison, Wis., March 13 U.R) Gov. Walter S. Goodland, oldest governor in the nation's history who proudly told voters he was a "tough old codger,' died suddenly last night of a heart attack. He was 84. Goodland was stricken In his bedroom at the executive man sion as he prepared to retire at 10:30 p.m. His wife, Mrs. Madge Goodland, summoned his physician, but Goodland died almost immediately. Death began and ended the stormy governorship of the huge, stooped man who was liked by Wisconsin voters be cause he preserved his indepen dence whether it meant fighting the state legislature- or his own party organization. A republican, he had served as Wisconsin s governor since 1943, when he took office as acting governor after the death of Gov-elect Orland S. Loomis. Goodland was re-elected in 1944 and again in 1946. Attacked by his opponents as "too old," Woodland told the voters last fall that he was In better physical shape than when he took office. "If I didn't think I could serve out my term. I wouldn't run again," he said. At his inauguration last January, he said he would retire after this term to let a younger man take over. L1. Gov. Oscar Rennebohm, 56, A'ill become acting gover nor. Turkey Grateful For Truman's Speech Istanbul. Turkey, March 13 i,Ti Premier Recep Peker said today President Truman's "American and human speech'' to congress urging aid to Tur key and Greece indicated that the Uni'nd States had awakened to the whole world situation. Turkey feels deep gratitude, he said in a statement. The pre mier said he believed the speech, reflectd American public opin ion in a day when security had become a problem for the entire world and not a local matter. The Weather (Released by United States Weather Btireaul Forecast for Salem and Vicin ity: Fair tonlfiht and Friday. Little change In temperature low tonleht 35 to 38 degrees. Local valley tog In the morn ing. Maximum yesterday 59. Minimum today 34. Mean tem perature yesterday 46 which was normal. Total 24-hour precipi tation to 11:30 a.m. today 0.00. Total precipitation for the month 3.63 which is 2.05 Inches above normal. Willamette river height 10.2.