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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
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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
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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.
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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.
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