THE WEATHER.
SHOWERS, PAKTIAL deariaf to
Bight, early Sufey taenia;, he
earning cla4y will rata by saaday
iterswap or ereaiag. CUanr4
snlM. Law laal(hl, tf; high 8-
ar. a. .
3 SECTIONS
,24 Pages
68th Year, No. 18 . : Solem, Oregon, Saturday, January 21, 1956 iST'A'CrMS, Price 5e
Tax Impact
On Farmers
Gets Study
State Interim
Body to Make
i New Study
By, J AMES D. OLSOri
A study on the impact of state
taxes on farmers was orders) by
thai legislative interim committee
on taxation at its meeting at the
State Capitol Saturday.
Senator Phil Lowry told the com
mittee that farmers in Oregon are
alarmed over the sharp increases
in their state taxes. .
"We hear a great deal about
the impact of higher state taxes
on Oregon individuals and corpor
situation with which they are con
fronted." Lowry said that the increased
taxes on farm property is par
ticularly alarming due to the gen
eral slump in farm prices. ,
senator Rudie wilhelm, cnatr.
Flooding
Threat :
Remains
Heavy Rainfall
Could Bring
Damage
By MARIAN LOWRY FISCHER
Thrent nf another - dnmnffintf
man of the committee instructed flood continues to haunt the Salem
Thure Lindstrom, Jr., tax analyist arel 0f the valley as it does in
for the committee, to confere with! ,ji western Oregon because the
staff members of the Oregon State
College who have gathered consid
erable data on the farm tax pro
blem in Oregon, and report to
the committee at its next meeting.
Wilhelm has appointed sub-committees
to make detailed studies
of various facets of the tax pro
blems in this state, and said that
it would be several months before
all reports from this committee
will be ready for consideration by
aliens but we have not heard about entlrek
the farmers," he said,
"However, there have been
many area meetings throughout
the state where the farmers have
gathered and discussed the tax
Second Man
Released in
Robbery Case
Ownership of Gun Not
Sufficient Evidence
To Hold Suspect -
Grocer Dean McFarland will
probably carry a permanent souv
enier of his battle with a hold-up
man at his Keizer area grocery
store Thursday night, his phy
sician said Fridav.
McFarland, reported making
"satisfactory"' recovery at Salem
General hospital from a bullet
wound suffered in the battle, will
keep the slug where it now rests
in his abdomen unless it later
should cause Turn trouble, his doc
tor said. The bullet entered Mc
Farland's lower left chest and
coursed downward, perforating his
stomach, the doctor said.
Gradv William Cope, Portland,
:-U mMk ekargMi with the attempt-,
ed robbery, is being held in lieu
of $10,000 bail on a charge 01 .as
milt with intent to rob. Arraign'
ment In Marion -County District
court was continued to Monday for
Cope to make his plea on the
'
Vila, g..- p -
Police meanwhile have question
ed and released another man who
they believe may have had a'part
in planning the robbery, or at
least had a Knowledge 01 11. ine
gun used in the wounding of Mc
Farland belongs to the second s
pect, police said. Cope told officers
he came to saiem inursoay m.a
stole the gun from the other man's
car., however oolice said they hid
information that Cope and the sec
ond man had been seen together
quite a bit earlier In the weeK.
Police released the second man,
thev said, as there was insuffi
cient evidence to directly connect
him with the robbery.
. Core was captured by McFor.
land, his wife and a neighbor,
Sam Davis, after the attempted
hold-up at McFarland's Market on
West Chemawa road about 9 p.m.
Thursday.- McFarland was shot
when he Jumped Cope.
t.
"It is not likely that our com
mittee will come up with anything
spectacular," . Wilhelm said, "but
we are endeavoring to locate any
inequities in the present tax laws
and at the same time learn if
there are any legitimate sources
of tax revenue which are being
overlooked."
Among the studies to be made by
sub-committee is a comparison
of the Oregon tax rates as they
effect persons in various income
brackets with taxes imposed on the
same groups in neighboring states.
Money Not Given Man there,' will be broadcast over radio
Who Threatened to
Blow Bank Up
r
Pouiade Fined
For Libeling
Assembly Head
PARIS (UP) Extreme right-
wing leader Pierre Poujade was
fined $1428 by I Paris court today
for libeling outgoing National As
sembly President Pierre senneuer.
The court found Poujade guilty
of repeating libelous statements
made by an omciai 01 nis anu
! mnvpme-it during the cam
paign for the recent French elec
tions. '
The 500,000-franc fine was the
second official blow In as many
days for Foujaae, wnose exixeiini
imr movement won 51 assem
bly seats in its first try at the
mite. .
A National Assembly Committee
declared, invalid the election of
fdbr of the Poujadist deputies on
grounds of election law violations.
Eight other Poujade deputies face
similar action.
In the court action. SchneHer
charged that Poujade libeled him
during the election campaign by
blaming him for the 1944 killing
of a woman wno Knew too mucn
akMif hi wartime activities.
' Poujade told the court he was
only quoting a letter from Leon
D'.pont, one of the principal lead
en of his UDCA party, when he
accused Scbneitsr of ordering two
policemen to kill the woman.
Dupont has already been found
guilty of Jjbel for circulating the
VtlandBank
Holdup Try
Unsuccessful
ground is so soaked, rivers still
run high, and the rain does not
cease. .
Any big deluge of rain could do
the trick In a hurry because of
the soaked ground conditions and
the high levels of the streams.
10.67 Inches ef Rala
January rain to date totals
10.67 inches in Salem, against a
normal fall of 9.94 inches, and
while the precipitation tapers off
in periods there is always some
to add to the vast amounts of sur
face waters prevailing throughout
most of the" countryside end to
the muddy rivers that continue to
run high. The Willamette at Sa
lem measured 14.6 feet Saturday
morning and has been, undergoing
a slight drop through most of the
week, but it would hot take too
much upsurge from the south to
zoom it up to near or above flood
stage of 20 feet. Only once in
tfanuarv has the Willamette here
been below 10 feet, a reading of
9.6 on January 14. All other days
the river has ranged from around
10 to 17.5 feet.
River officials say the situation
is so critical in southwestern Ore
gon that an emergency flood warn
ing system has been set up in the
Umpqua Basin with volunteers
ready, in case of heavy rains, to
give hourly rain and stream read
ings to civil defehsn headquarters
in Roseburg. .Emergency warn
ings, listing stages of the situation
War Dead Returning
wmmmm-wmw
.j
I J'i
K -CI U!r
Air Force, Army, Navy and Marine Corps
pallbearers carry caskets of four unknown Korean
. War dead aboard the light cruiser USS Manches
ter at Yukosuka Naval Base in Japan for return
to American soil. The four represent 852 uniden
tified dead at a ceremony led by Gen. L. L.
Lemiyzer, commander-in-chief of United Nations
and Far East Commands. The Manchester with
the first 50 caskets, sailed for Hawaii where they
will be interred at Punchbowl Cemetery overlook
ing Honolulu. The rest will follow aboard other
ships in the next few weeks. (AP Photofax)
onuses
aiue ior
His Policies
Man Who Escaped from Death
Row Reported in Five States
PORTLAND m A man who
threatened to blow up a bank in
downtown Portland, failed in a
holdup try here Saturday.
Robert Hunyon, assistant man
ager of the Metropolitan branch of
thj U. 8. National Bank, said the
m e-a Wdidn't - look desperate
enough," and so he refused to give
him the money which the man had
demanded in a note.
Runvon' said the man entered
the bank at 11:10 a. m. and handed
carrying a vial of nitroglycerin
him a note. The writer said he was
enough to "blow the place to
pieces" and that he had only six
months to live and didn't care
what haortened if he was refused
He demanded all tne ss, iu ana
$20 bills available.
Runvon said he read the note
and then told the man he wasn't
going to give him any money. The
man then asked to nave me note
back. Runyon, however, kept the
note and turned to a telephone to
call police.1
The man then ran out tne aoor,
Runvon said.
He was described as in his late
30-, with a mustache. He wore a
brown raincoat and was bare,
headed.
There were only a few persons
in the bank at the time .
The same branch, located at
S. W. 6th and Taylor in the Public
Service Building was held up last
October. Some 3,2S5 was taxen
then. That robber was never
caught. :
Senate Favors
More Flood Funds
The senate Saturday afternoon
passed unanimously a bill provid
ing $35,000,000 for the Small Busi
ness Administration to use 'in dis
aster loans for rebuilding small
businesses and homes damaged or
destroyed by floods or other dis
asters, according to word receiv
ed from Senator Wayne Morse.
The bill contains a three percent
limitation on interest.
Stations in inai area. t ,
(Continued on Page 7 Column 51
Director of
BudgetHughes
Leaving Post
WASHINGTON tfl Rowland
Hushes is steoniiut down as Pres
ident Eisenhower's chief budget of
ficer after helping pilot the govern
ment within signt of its tirst Dai
anced budget since 1951.
To replace Hughes April 1, Ei
senhower announced yesterday he
would appoint Percival F. Bran
dago, a former accounting execu
tive who has been serving as dep
uty budget director. Brundage is
from Montclair, N. J.
Just last Monday, Eisenhower
told Congress he expected the
budeet to be in balance this .Iscal
year which ends June 30. He nlso
submitted a oaiancea ouagei ior
the coming fiscal year as well.
Hughes cited "compelling person
al and family reasons" for leav
ing his post. He did not sa'y what
these were.
Before joining the administration
as deputy budget director nearly
three years ago, Hughes was comp-1
troller of the National City Bank
of New York.- It was not immedi
ately clear whether he would re
turn to that job.
Hughes shared the spotlight dur
ing the controversy last year over
the Dixon-Yates private power con
tract. The Budget Bureau had
been involved in early negotiations
on that contract which since has
been repudiated by the government.
Brundage, 63; is in line to be
come the third budget airecior
since the Eisenhower administra
tion took office three years ago.
The first was Joseph M. Dodge,
a Detroit banker. Brundage for
merly was senior partner of Price,
Waterhouse 4 Co., a New York
accounting firm which has been
associated with surveys of govern
ment efficiency.
Many Claiming to
Have Seen
Killer
PRINCETON? Ind. (UP)-Jittery
citizens "positively" identifying fu-
gitie Leslie Irvin in five states
sDurred a confused police and FBI
search today for the escaped mad
dog killer.. .
The search concentrated In Illi
nois and Indiana. But the slayer,
condemned to the electric chair,
was reported seen In Dayton, Ohio
Louisville.' "Ky., and Sc. touts, Mo.
Irvin escaped the Gibson County
Jail here Thursday. He was await
ing electrocution in June for mur
der. He had been accused of slay
ing six persons and was convicted
for the murder of one ot tnem.
The FBI entered the case Friday
morning when a fugitive warrant
was obtained at Evansville. Ind.
The warrant charged the 31-year-old
slayer had crossed the state
line from Indiana to mi. i-armei,
III., where he is believed to have
stolen an automobile.
Wllnmsei Under Protection
Witnesses and officials who had
helped convict Irvin were under
protection of armed guards, but
life here had started to return w
normal after the first flurry of fear
fallowing his escarje.
Leonard Blaylock, special agent
I- rhnrca of the FBI at Indianap
olis, Ind. said the FBI and police
in Indiana and the neighboring
states of Illinois, Ohio, and Ken
tucky were busy checking all clues.
Irvin was "positively identified"
in a drug store at Kendallville,
Ind., nearly 200 miles from here
Friday, police at Fort Wayne, ina.,
reported. '
At St. Louis.'' Mo., just across
the Illinois border, a hotel waitress
who said she knew Irvin, told po
lice she saw the fugitive late Thurs
day where she works.
Identified As' Hitchhiker
Near Springfield, Mo., a motor.
1st said also that he spotted- a
hltchljiker. whom he. jdentlfiedUas
Irvin Friday night
Other reports said Irvin was In
the Chicago area. He naa Deen
identified as visiting a Watseka
Plea of Guilty
To Embezzlement
PORTLAND (UP) Ralph
Henry Van Houten, 39, yesterday
pleaded guilty in Federal Court to
embezzlement of $4133 from the
Burns branch of the U. S. National
Bank of' Portland.
U. S. Deouty Attorney James
Morrell said Van. Houten took the
monev over a period of years when
ho was assistant manager of the
F rns bank.
Federal Judge Gus J. Solomon
ordered a pre-sentence investiga
tion. .'
Survey Team Seeking Air Base
Studies Sites in Valley Area
Sites near Salem that might be I
used as an air base will be visited
next Tuesday by a 15-man sur
vey team, which has been in the
state checking sites since Janu
ary 13.
The team, headed by W. H.
Banks, U.S. Air Force, Washing
ton, D.C., before checking sites
in this area will call on city of
ficials and the Salem Chamber
of Commerce. Friday they were
in the Albany area. Also to be
visited Is the Ballston area near
Sheridan, which has been propos
3d by the Sheridan Chamber of
Commerce.
Prosecution of Idaho Power
Urged at Hearing at Baker
Weather Details
Mubma ytvtcraty. M: mlalmam
tix!r, 44. Tout M-honr precipita
tion: .1: for month: 1S.ST. normal,
S.M. Briton precipitation. 3S.H-, nor
mal. t2.. Rivet ntllM. Ill IMt.
Btport ky U.S. PTeaUicr Boraan.)
BAKER, Ore. OB The Idaho
Power Co. should be prosecuted
for starting to build a dam in Hells
Cagyon without first getting a per
mit from Oregon, a public power
counsel asserted Friday.
C. Girard Davidson, attorney lor
a group of agencies urging a high
federal dam in Hells Canyon,
called the power company's ac
tions "arrogant and flagrant vio
lations of the laws of the state of
Oregon."
He urged the state to prosecute
and said the possible penalties
were a fine up to 11.000 and tail
terms up to six months.
Davidson's demands climaxed a
day-long hearing of the Oregon
Hydroelectric Commission on
whether to Issue a construction
permit for the Idaho Power Co.
developments in Hells Canyon.
Idaho Power last summer on
a Federal Power Commission li
cense to build three dams in that
stretch of the Snake River.
R. P. "Pat" Perry. Idaho Power
Co. attorney, said his firm bad full
authority to start construction once
it had the H'U license.
George W. Joseph, state Hydro
electric Commission chairman, in
dicated, however, that the firm
also needs state approval. He said
there were questions of concurrent
jurisdiction. -
This was tne latest aeveiopmeiu
in a long struggle between Idaho
Power and public power advo
cates for the Hells Canyon stretch.
Parry said he did not want to
get irtto a long repeat of argu
ments already made before the
FPC. So he sooke only briefyl and
submitted some papers and plans
to the commission.
There were number of other
witnesses from both sides, how.
who went into previous ar-
Col. Banks said in Portland
Saturday the site should contain
about 5,000 acres and be flat and
able to accommodate a 15.000
toot runway. Four or five Wil
lamette Valley sites have already
noon visited hv the team.
The base, which would be lo
cated from seven to 15 miles
from a city Is the one the Penta
gon announced last January 16
was being considered. It would
be an Air Defense Command
Base and a training base for
Naval Air Reserves.
Composing the 15-man survey
team, which will not make the
final decision on the location but
is only making the survey, arc
representatives of the Air Force,
Corps of Engineers, Air Defense
Command, Western Air Defense
Force, the U.S. Navy and the
Civil Aoronatillcs Authority.
Both Elmer Berg, who heads the
Salem Chamber of Commerce and
Fltnn Thomnson. cMirman of the
111 . tavern about 85 miles from
Chicago. ' ' .
Indiana state police said Irvin
apparently made keys out of card
board and glue to escape the jail.
Irvin was sentenced, last month
for the slaying of an Evansville
filling station attendant. He also
was responsible for the killings of
two Indiana women and three
members of a prominent Hender
son, Ky., farm family.
Second Story
Burglar Gets
2?0inTlieft
Police wondered Saturday If
they had another "second story"
burglar in Salem with the report
ed break-in of Pade's Market,
1244 State street.
About $200 in cash and checks
were taken in the burglary, most
of it in cash, police said. A ten
tative break-down listed it as
about $55 in checks, about $50-
$60 in small change and the re
mainder in bills.
Entry 'was made by drilling a
scries of holes through the floor
of a vacant apartment above the
store, .removing the floor boards
ind insulation and then drilling
more holes through the ceiling
boards to remove them. The
brace and bit, were left at the
icene.
After dropping through onto
a floor rack, the thief made his
way to the office and took the
money bag from the unlocked
tafe. No attempt was made to
enter the front nf the istore
where s small amount of change
In the till was undisturbed, po
lice said. The burglar left the
same way -he entered, officers
reported. Entry into the vacant
apartment was made by rear
stairway, they said. - 1 ne bur
glary was discovered about 7
a.m. Saturday by proprietor Ben
Psdc.
Olficers said the burglar ap
parently worked pretty hard for
his money. The bit was so dull,
they said, it must have taken him
President Gives
No Hint on
2nd Term
WASHINGTON un-Either as a
candidate or as a "worker in the
ranks," President Eisenhower has
promised to battle with all my
strength" for the policies of his
administration.
Despite the uncertainty with
which he viewed his role, Eisen.
hower's promise of support last
night cheered more than 60,000 Re
publicans whose "Salute toabisen.
hower" dinners up to $100 a plate
raised an estimated five million
dollars for national, state and local
GOP campaign purposes.
Responding to demands that he
run again. Eisenhower said "my
future role remains undetermined
whether to-be a candidate for your
nomination or a worker in the
ranks." But he promised his help
in either case.
The President arose smiling and
outwardly hale and hearty to re
turn the salute of 53 dinners
throughout the country. But tears
clouded bis eyes as ne acknowl
edged the tribute, saying "The
heart is so full that It is indeed
dangerous to say more than 'thank
you.
Eisenhower told 1,700 diners In
Washington and about 60,000 more
over the country that his decision
when it is reached, will not be a
selfish one.
"I could devoutly wish that
there were some other method by
which the American people could,
under the circumstances, point out
the path of my true duty," hi
said. "But It appears that this is
a question that first I alone must
answer.
The Republicans who cheered his
entrance with Mrs. Eisenhower.
gowned in purple and carrying
American Beauty roses, leit
Neither did 'he closed circuit tele-
no doubt that they would like to
help him make an affirmative decision.
evision flashbacks, from Los An
geles to New York' leave any
thought that the Republicans salut
ing his third anniversary in the
White House have in mind any
other candidate but Eisenower.
Some of them obviously were
cheered' by Eisenhower's statement
that he hopes his decision when
it comes, "will not unduly reflect
concern for self. . ."
These party member's said they
Interpreted this as indicating the
President will make the race if
he finds he has reached what ha
called at Thursday's White House '
news conference "a reasonable lev
el of strength" physically.
Harriman Has
Sharp Word's
For President
LOS ANGELES lAWBucV pass
er"- and "The biggest dodger" is
the double-barreled salute to Pres
ident Eisenhower fired -by Averell
Harriman. . -
Speaking like a man perhaps
ready to make the - switch from
"inactive" to "active" presidential
candidate, the Democratic gover
nor of New York also emptied nis
verbal artillery at the Republican
administration for what ne termed
its "lukewarm, reluctant or non
existent policies."
"Eisenhower Is the biggest
dodger of any president we've ever
had in my memory," Harriman
told newsmen. And he said his
memory extended back to the Mc-
Klnley administration.
The charge came when Harri
man was asked his opinion of the
President's remarks concerning
Gen. Matthew Ridgway's puo
lished differences on 1054 military
policy.
Eisenhower Is creating the im-
Bond Measures
Coming Before
City Council
Council to Decide If ;
Proposals to Appear ;
On Ballot
Five bills proposing bond issues .
for $4,899,000 and two for special '
tax levies totaling $85,000 to cover
needed city projects will be before
the City Council Monday night for
final action. .
Two others for special tax levies, 1
totaling $65,375, will be on the.'
HKunua mr . wirouucuon ana ursi f:-
rcadlng. . . f
. All of the bills.' if passed, will
Lgo on the special city election bal
lot in May. . y
Among toning measures before
the council will-be two in the
southeast quarter of the city, one
of which would make way for con-
struction of the Erlckson super-
market In that area. It would , .
change from R-4 residential to C-S
business district property on the -
south side of Lewis Street and
the north side of Oxford Street,
150 feet west of South 12th Street. .
Another would make the sama
zone change for property on tha
south side of Oxford between 12th '
and Berry on petition of Mrs. Mel- t
ba Dougherty. Both have the rec- '
ommendation of the City Planning
Commission. The bills will be glv-
en first reading. 1
Another bill on the calendar for .
first reading will initiate proceed- ,
ings for the annexation of 57 acres
in Polk County adjoining West Sa- ; ,
lcm.
street Improvement resolutions ,
to be acted on are for the Im
provement of North 24th front
Windsor to Ellis Avenue: and of ,
prcssion he's over and above the
aaminisirauon, numman wlllamollo nrlvo from Stnrlc Street
adding .that the President "tesnt to Dc,mar Dr,ve
take responsibility for his nro-
grams.
By contrast, Harriman said, for
mer President Truman "always
took responsibility for his programs."
He accused Elsenhower of "pass
ing the buck" when he referred
reporters to the Pentagon concern
ing a statement In the 1954 State
of the Union message. The Presi
dent had claimed the Joint Chiefs
of Staff had agreed on an Army
manpower cut; Gen. Ridgway says
he opposed It.
While Harriman demurred at be
ing called either "active" or "In
active" at this stage, newsmen
most twice as much power nnd
would add flood control and other
benefits not available under Idaho
Power's plans. -
There also were other witnesses.
Petitions for street Improvement
rnrnlnn In are-..
i Riviera Drive from North River
Road to Island View Drive, with
88.5 per cent of the assessable :
property covered by the signa ! .
hires: Island View Drive from Riv- ,
iera Drive to south terminus, 86.1 :
per cent; Dreamerle Lane from i
Riviera Drive to Island View ;
Drive,' 100 per cent; and Shipping
Street from Broadway to Fifth, i
All have the recommendation of 1
the city engineer without side- ;
walks, and if approved the proj- ,
ects will go on the city program.
General Services Administration ;
is asking the city (or permission
to widen two driveways into tha
here were Inclined to tab him a
. t. tin,. IA nt mx-olo liohfninff rnH rflnrilHafo for Ihe
work to grind his way through Democratic presidential nomina- j post office grounds and to build
the wood. lon. .. . I a new one on v-ouage aircxt.
Abandoning Formosa
Demand of Red China
Industrial council nf Ihe S,alem WASHINGTON The United It therefore appeared that the .propaganda exchanges between the ;
Ucncva tniKs wnicn ncgan Aug. l unucu aiaics ami nra viinm nui ,
and produced an agreement on ox-' a reaction in world opinion wni':n
Chamber of Commerce, said their .,, Red China Salur-
representatives would be dad to I d of dcmanding American abaml
mect with Col. JJanks . team and. , w,rm05a tne ,hce
Thompson said he wa i pleased to! f Wnj , rca renunciation
Charles Campbell of the Oregon '.j t.J r.iZ' 7" 1 ... liof the. use of force,
. . . f . bnu nurcu uicy iuuiiu a uiuimc
Game Commission and John
Hodges of the Oregon ,Fish Com-1
mission protested against granting
of a permit -until further study is
made to determine the effect on
wildlife.
County Judge Lloyd Rea of Baker
County said there were still other
problems to be settled. He men
tioned' grazing rights, taxes and
roads to be replaced when the res
ervoir behind the dams flood :andt.
The commission adjourned the
hearing late in the day without
giving indication whn it would ar
guments, inounce us course oi action.
Mnho Power Co. suooorters id ! Davidson, in presenting his do
the darns manned by the lirm big petition for action against 'da-
would provide tax money, oeveiop ino rower, saia ne rcpreseoica ine
almost as much power and would state Grange, the state AFL ind
location some place in this area.
Today's Index
Section One
Amusement
Society ..
Local
Editorial .........
7
...I
"lion Two
Sports .....
Chorea
Comic 4
Television
Classified $-7 $
cos. far less than the high federal CIO, Oregon Farmers Union. 0re-'o W.. Tlirw
J . m UFA romvr alive Assn. ind T t. IIOH J IITI
Public power advaocates said the i the Hells Canyon Development romlr
high federal dam would create al Asn. I
1, I
change of civilians Sept. 10 aro now persuades the Reds to moke ub- ,'
tightly deadlocked on the question stantial concessions In their .rasi-
Striking back at Red. Chinese
charges of American stalling in
talks at Geneva, the Stole Depart
ment .issued a summary of four
months of those discussions and
said:
Summary Given
The Communists so fir seem
willing to renounce force only if
they are first conceded ine goais
for which they wfuld die force."
The State Department officios
said Red China's goals were to
get the United States to withdraw
its small defense force from the
Formosa area, abandon its base
rights there and cancel the mu
tual defense treaty with National
ist China.
These' officials .tald the United
States would never do these things
and asserted the American post
lion In defense of Formosa is not
I negotiable with the Reds.
of renouncing the use of force
The State Department charged
again Saturday that the Commun
ists have failed to live up to .he
agreement to release imprisoned
Americans.
Deadlock Stymies
Negotiation on further questions.
especially the Communist desire
to end the American trade
embargo and to set up a meeting
between Secretary of State Dulles
and Foreign Minister Chou bn-Lai,
seems completely stymied by the
deadlock.
Thirteen Americans -'.ill re held
In Communist prisons despite the
Sept. 10 agreement. State Ucpait
ment informants contended hat
the Reds are using them as pawns
in the bnrgining. to be ransomed
by American concessions.
How long tha deadlock holds. In
the American view, probably will
depend on whether the present
tion.
The State Dcoarlmcnt. which !
has accused Communist China of
"distorting U.S. alms in the Ge- t
neva talks, set forth its position In ,
a strongly worded statement giving i
its side of the story. '
The PeiD Ino regime earlier '.his ,
week contended it had made reas- '
onable offers but that the United ;
States was holding up progress. ,
In its declaration Saturday, tha 1
State Department released 1 se-'
ries of American proposals and
counter proposals running from '
early October into this month on
the Issue of promising not to re-;
sort to Ihe use of arms.
The record shows, the United '
States said, that what the United
Stater wants is an agreement ,
which would specifically apply to i
Formosa and commit the Reds not
to make military assault to tat
is(y Heir claims a that island.'