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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 13, 1960)
rP O o 0 0 oo Q) o ) 0 0 0Q 2 Oc. O Co co c ( ) r:- , o. 9 n O : i ( -) ,0 0 o O 1 ' ' '.' -S 17. J.'rfVjj- f- "4 f$ I ., Questions and Answers Designed To Clarify Picture on Beriin Dispute PLANE EXAMINED - A crowd watches as soldiers examine Hie bullet-riddied plane in which American pilot Matthew Edward Duke, 42, of North Palm Beach, Fla., was shot to death Thursday. He was shot as h was attempting Uj pick up four men and a woman on a highway near Mriel, nhout IS miles west of Havana, Cuba. (UPI Telephoto) Inflation Forces Appear To Be Waning in United States By ELMER C. WALZER UPI Financial Editor New York - HOT - Inflation forces appear to be waning in the United States while they W rise in Europe, a u thoritative sour ces reveal. "Busi ne s s in Europe has continued s o far this year to be char- by swift ex- Elmer Walzer pansion," says the Morgan Guaranty Sur vey, published by the Morgan Guaranty Trust Co. "In a number of countries," the bank adds, "there is con siderable threat of inflation, although central banks have moved to lessen the pressure by pursuing restrictive monte tary policies." Standard . & Poor's, busi ness and financial statistical and analytical service, says the disappearance of infla tionary psychology in the United States is a matter of considerable official and gen eral comment these days, ... . . .- Many in Wall Street Ersctlbe the stock market's dullness and weakness from time to time to the lack of the infla tion urge. When prices were rising steadily not long ago it was held that much of the buying of common stocks re flected a desire to insure in vestment against inflationary forces. According to the experts, the tendency is for the market to rise in inflationary periods to compensate for the erosion of the dollar that inflation brings. Our lack of inflation psy chology is ascribed to ample supplies of goods, surplus producing capacity, increased domestic and international competition, application o f credit restraints .by the fed eral reserve, and prospects for a federal budget surplus in the next fiscal year, says Standard & Poor's. "However," says Standard, "shifts in inflation sentiment generally run to extremes. out of line with actual price trends. "The price rise was small last year, inflation sentiment strong. "Inflation sentiment is now weak, with the over-all price Structure still on the firm and slightly firming side." Some Causes Factors cited as causes of waning inflation sentiment apply primarily to commodity prices. But commodities have Jagged heretofore in the over all inflation of living costs, while service costs have risen largely and are still pointing higher. Standard & Poor's notes that in March, the consumer price index was unchanged for commodities while the in dex of service costs rose to a new peak, and the rent index gained a small amount. set care, and New highs also were by costs of medical transportation services household operations. Thus, it Is noted, living costs are still rising even though inflation psychology is waning. The Morgan bank notes that in two very important countries, Great Britain and Germany, the fear of inflation Is coupled with concern over the balance of payments, though for different reasons Great Britain Is troubled by a deficit and Germany by a rather unwieldly surplus. Firm Quits Dock Lease at Astoria Astoria -HOT- Port Manager R. J. Bcttendorf said Thurs day Zirtell Fxplorations Inc. would not renew its lease on a section of Pier 2, Astoria Port Docks, which the firm has used the past six months for scrapping ships. Bettendorf said there were possibilities for other scrap operations for the area." ZiaefT took "option -bh the section about six months ago and scrapped two baby air craft carriers. The lease gave the firm first a six-month op tion then a yearly lease with option to renew up to 10 years. Zidell decided against renewal after the six month trial. London - (IW - Soviet Pre mier Niki'.a Khruhchev fre quently reminds the West that he is determined to sn.ueeze ll.e Allies out of Bcr- lin-sooner or later. That tht matter will come up at the summit meeting starting Paris May 16 is a certainty. The many statement! about Berlin by both East and West have clouded the situation. The following questioni and answers are designed to clar ify the present picture as much as possible: Question: What are the re spective legal positions of the Western Powers and Russia in Berlin? Based on Agreamenla Answer: Berlin's present status is based on Allied agreements with Russia in September, 1944, which speci fied what would be the Ai led sectors of tht city. These agreements and subsequent agreements at Potsdam spell ed out what roads, canals, air corridora and railroads the Alliest were entitled to use into and out of western-occu pied Berlin. No time limit was set on these arrangements. Question: What is behind Moscow's drive to oust the Al lies? Answer: West Berlin, with its 2,500,000 people and an area of 15S square miles is an outpost of the Free World within the Iron Curtain sphere. It is the West's show window inside the Communist world and a haven for ref ugees escaping from Red rule in East Germany. Question: Is Krushchev the first Soviet leader to make an issue of Berlin since the end of the war? Brokt Soviet Blockade Answer: Berlin has attract ed Moscow's attention ever since the Allies took over the western part of the city. Stal in tried to freeze the Allies out by imposing a blockade of the city in 1948. The Allies mounted their famous air lift and broke the Soviet block ade in May of 1949. At that time, the United States had the atom bomb; Russia did not. Question: What precip itated the latest Berlin crisis? Answer: On Nov. 27, 1958, Khrushchev gave the West sudden ultimatum, to quit Berlin. He served nonce on the Allies that Russia no long er considered itself bound by post-war agreements on Ber lin and that the occupation regime must be terminated. Question: What is Khrush chev's plan for the city? Answer: Khrushchev has proposed that West Berlin be made a so-called "Free City" and that Allied forces be with drawn. (In effect, thii would amount to West Berlin being waiiowed up by the East utrnidn communist regime and the western outDost re moved from inside the Iron j Curtain) j Question: What anrt of! treaty for Germany dors the West want? I Answer: The Aiiiesi uio-1 pose that liie two Gerniiiii.vs be united through free elec- Pages 1-12 Medford T Section C RIBUNE MEDFORD, OREGON, FRIDAY, MAY 13, 1960 Invention Used in British Cars May Benefit Americans o o The best BIG NEWS FROM KEITH SCHUIX TRIUMPH HERM!) IS HERE! It's the all-new Herald 3 full engineering yean ahead of all other economy can domestic or im ported. Researched and tested the world over to meet world-wide driving needs. Worth teeing and driving before you buy any car. Only 4 parts ever need grease 4 wheel Inde pendent suspension plut torsion bar Up to 40 m.p.g. Lower insurance rates dramatically styled Unusually comfortable New low in re pair costs fully equipped has everything stand ard except radio and whitewalls Low price, easy terms. V JjTA'fA OPEN HOUSE SAT. & SUN. All day Saturday, noon till 6:00 Sunday COFFEE - BALLOONS! TAKE A RIDE in the fabulous new Herald, ind the famous Triumph TR3 Sports Roadster! KEITH SCHULZ TRIUMPH SALES Detroit - (UPH - U.S. motor ists may get the benetits of an American inventor's genius in the next few years because a British car manufacturer has made a success of it. Although the electromag netic transmission was origin ally conceived by Jacob Radi now of the United States bureau of standards, it has been largely ignored by Amer ican car makers until recent ly. It might have gone on in obscurity except for the fact that the British company, Smiths Motor Accessories, Ltd., developed it and put it into production for the Hill man Minx, which is now be ing imported into this coun try. Now Eaton Manufacturing Co.. which patented Radi- now's idea after developing it, has convinced some American auto makers they should look into the possibilities of using the electromagnetic trans mission on American compact cars. It has been installed on a number of U.S. cars on an experimental basis. The ex perimental version being test ed by American car makers is simpler than the one on the Hillman Minx but it is still 1 expected to take at least two years to work out an accept-1 able version. Clifford S. Steadman, gen eral manager of the English firm which makes the electro magnetic transmissions for the Hillman Minx, told Automo tive News recently that this type of transmission was not practical f6r engines with dis placement greater than 2V4 liters - 150 to 160 cubic in ches. This would limit it to compact cars in the United States. Steadman said the electro magnetic transmission was impractical for larger engines because manufacturing costs and the size of the transmis sion mount faster than its output. Just the opposite is true of the fluid couplings and torque converters u s e d in automatic transmissions In American-made cars today. The transmission Is filled with a magnetic powder which, when energized by electrical current, creates a bond between the power shaft of the transmission and the shaft which delivers power to the wheels of a car. Slippage Eliminated This solid bond eliminates the slippage found In all fluid transmissions, and the lack of slippage increases the effic iency of the transmission. It avoids wasted gasoline and makes it ideal for economy cars where gasoline economy is an important factor. The electromagnetic trans mission also eliminates the "creep" that is common to all cars equipped with fluid transmissions. This is true be cause the electromagnetic coupling is either solidly con nected or completely free of any connection, unlike fliud connections. Handicaps of the transmis sion include the use of differ ent transmission for standard sized cars and compact ears made by the same manufac turer. This would decrease volume in production and in crease unit costs. tions. An all-German govern ment would subsequently de termine whether it wants to keep Germany on the western aide in NATO or choose an ir.dipciiucut pwliwy cuuie. Tiie West wants to leae the Rerlin issue unchanged until the overall German problem is resolved. Failing this an interim solution might be found which would leave western rights of access un touched. The West might agree in return to freeze the level of its armed forces in West Berlin and not to sta tion atomic weapons there if East Berlin reciprocates. Question: What is the West's stand on Berlin on the eve of the summit meeting? Not Willing To Nagotiala Answer: The West is deter mined to maintain its position in Berlin and its rights of free access to the city. The West docs not intend to recog nize East Germany and does not want to free Russia from her obligations or to negoti ate its rights of access with the Communist regime. Question: What docs Khru shchev intend to do? Answer: Khrushchev has said he will demand at the summit that Berlin be turned into a "free City." He does not intend at present to cut the West's routes of access to Berlin, but the West would be at East Germany's mercy once it renounced its rights stemming from the occupation arrangements. Question: What is the al ternative? Answer: Khrushchev has threatened that if the West refuses to settle the issue and to conclude a peace treaty with the two Gcrmanys, Russia will sign a separate peace treaty with Communist East Germany. He has warned that, in such an event, the Al lies would lose their rights of access to West Berlin, which, he says, is an integral part of East Germany. A, bourbon bottled m intern. Ji now m costs less! Miitptcm a ui-boil i5clicnlcij AGED 8 YEARS Now only fioht Champion Jjourbon Schenlcu, "''ski -I., $R00 "4, $325 li qt. pint 11 SOUR MASH STRAIGHT BOURBON STRAIGHT BOURBON WHISKEY, gft PROOF, 6 YEARS OLD, SCHtNLEY DISTILLERS CO, N. Y. & Never before, so much Frigidaire EXTRA VALUE at such a saving in space and Money ! Frigidaire Colonists Waif Ecuador Visas Terminal Island, Calif.-IIIPD -The second group of 78 co lonials bound for the Galapa gos Island have been strand ed here more than a month waiting for visas from the government of Ecuador. Some of the colonists have been staying with friends and relatives ashore, but most of them are living aboard the Western Trader, tied up at berth 224. The adventureri originally planned to spend only three to five days while they picked up visas and equipment for the voyage. Capt. Lloyd Van Kirk said the visas probably have been delayed pending next -week's elections in Ecuador. Coloniza tion of the Galapagos Islands has become an issue In the elections. The first group of 32 per sons to leave from Seattle, Wash., arrived in the Galapa gos Islands on the converted tuna clipper Alert and are waiting for the equipment to be brought by the second group so work can start on the colony. The Island Development Company made a sizable down payment on a 64,000 acre plantation on San Cristobal islands for the colonists. 10.87 CU. FT. DELUXE MODEL REFRIGERATOR DA11-60 mm mm 1 BOTH FOR ONLY nk n s-v ; 10.39 cu.ft. Sfl95 ?"aL 1 if U UFD-10 60 j jfMrt,MV h r5 J- , V ' 1 iiiniEaaaaaalEiiiiaaaaaaaaaaaaaaaaa .w-.-a.W-aa VifcwaoM.-atW iirtt. .Ww-. - 21.26 cu.ft OF REFRIGERATOR-FREEZER CONVENIENCE IN JUST 56" OF WALL SPACE! New Magnetic Seals close doors a'tr tight Meat Tender for fresh meat, Bydrator all around (no latches). for wgetables in Refrigerator. Zero zone Freezer temperatures for peak food and flavor protection JL CLOGSTON'S Metal Weather Stripping tad Screens Plus new "Sculptured Sheer Look"! 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