Russia's Policy of Peace Averted War Over Cuba, Khrushchev Says
Russia Arrests Alleged Espionage Agent;
Accused of Giving Secrets To U.S., Britain
Moscow - IUPD - The biggest
Western spy cae since the
I960 trial of U2 pilot rrancis
Powers appeared In the ma
lng today with the arrest of
an alleged agent on charges
of supplying Soviet secrets
to the U.S. and Briusn intel
ligence. Tass, the official Soviet
news agency, Tuesday night
announced the arrest of "the
spy O. V. Penkovsky" and
linked him to two U.S. Em
bassy employees and British
businessman Grcvllle Wynne,
who was arrested on espion
age charges in Budapest last
month.
It charged that Penkovsky
delivered military and sci
entific secrets to Wynne, em
bassy employee Richard Carl
Jacob, and an American sec
ond secretary identified only
as "Karlsson."
Jacob, 28, Egg Harbor, N.J.,
was expelled Nov. 6 for al
legedly "extracting espionage
materials" from a letterbox
In a Moscow apartment.
There is no Karlsson at the
Embassy, only a Rodney W.
Carlson, assistant agricultur
al attache, and the Soviets
have taken no action against
him.
Tass charged that Penkov
sky used the letterbox in the
gateway of a house on Mos
cow's Pushkinskaya st. to
pass on secret information to
Jacob. At the time of Ja
cob's expulsion last month,
the United States denied all
charges of espionage.
Tass did not identify Pen
kovsky as a Soviet citizen,
but it was assumed he was.
It said he worked in the "So
viet state committee on co
ordination of scientific re
search work."
Arlington Buildings
Giving Way To Water
Arlington, Ore. -UIPII- Build
ings have started tumbling in
this Columbia river city to
make way for rising waters
behind the John Day Dam.
Six buildings, including the
venerable Hotel Vcndome,
were razed in recent days.
The community is being re
built in a higher area nearby
that is being laid out 'a.a
model city.
Rogue Valley Edition
MEDFORDt
Page 2A
Tribune
It said he was "connected
with British and American
intelligence agencies and on
their orders in 1961-62 gath
ered and handed them secret
information about the
U.S.S.R. on scientific, techni
cal, political, and military
questions."
Tass said Penkovsky admit
ted contacting Wynne, who it
said 'periodically came to the
U.S.S.R. under the disguise of
a businessman." Wynn was
arrested Nov. 2. On Nov. 27,
Soviet authorities announced
he had pleaded guilty to
espionage. His present where
abouts was not known.
Tass said Penkovsky was
equipped with three minia
ture cameras, codes, secret
inks, radio equipment, and "a
false Soviet passport to go
underground in case of immi
nent exposure." In addition
to the men named, it said he
maintained contact with
"some other officials of the
diplomatic representations of
the United States and Bri
tain." The Powers' case was the
most publicized espionage
trial Involving an American
ever held here. Powers,
whose reconnaissance plane
was downed over the Soviet
Union, was sentenced to 10
years in prison and labor
camp. But he was released
early this year in exchange
for Soviet Col. Rudolf Abel,
who had been serving an
espionage sentence in the
United States.
Finance Office at
Cottage Grove Looted
Cottage Grove - IUPH - A
bandit held up the Cottage
Grove office of the City Fi
nance Co. Tuesday afternoon.
The robber ordered persons in
the office to the rear of the
building and fled with about
$253.
MEDFORD, OREGON, WEDNESDAY, DECEMBER 12, 1962
NATURAL GAS
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On Display tht largest selection of gas healing equip
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COLEMAN Space Floor Unit Forced Air
Upflow Down Flow Horizontal Wall Furnaces
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Foreign Briefs
FOUR GUARDS HURT IN PRISON RIOT
Plymouth, England-Wli-Four guards were injured in a
30-minule riot at Dartmoor prison IS miles from here, ac
cording to officials.
Thty said on of the guards was hospitalised. Thirty of
90 prisoners in a mailbag workshop began fighting over
work given ihem in the moil serious riot in the top security
prison since the "mutiny" of 400 convicts in 1932. accord
ing to on officer.
SOVIET REPBULIC CRACKS DOWN ON NARCOTICS
Moscow-WPIi-The Soviet Central Asian Republic of Kirg
hiiia has started a crackdown on illegal narcotics traffic.
A Dec. 9 issue of the newspaper Soviet Kirghisia that
reached her Tuesday said a new decree provides prison
sentences of up to 15 years for dealers in illegal narcotics.
It was one of the few times the Communist press has alluded
to the existence of a narcotics problem in the U.S.S.R.
WAR DANGER GROWS IN MIDWEST
The Aviv, Israel-tlTII-Dangers ol new Midwest fighting
grew today ai a result of Premier David Ben-Gurion's threat
to strike deep into Syria If Syrian attacks on Israeli border
settlements continue.
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Tiger Has Teelh,
Chinese Warned
Moscow fUPD Premier Ni
kita Khrushchev said today
that the Soviet Union's policy
of peaceful coexistence avert
ed a nuclear world war over
Cuba and warned the more
belligerent Communist C h i
nese that the American "paper
tiger" has atomic teeth.
He accused the Chinese of
trying to prod the Soviets
into conflict with the United
States.
Khrushchev said that Soviet
officers had manned the So
viet missiles in Cuba "which
were ready for launching" but
not used, sparing the world
from a nuclear holocaust.
Then, in the most direct
and high-level attack yet on
Chinese policy, which holds
that communism can triumph
over capitalism, only by in
evitable war, he said the
world has no choice but to
survive through coexistence.
Trying To Provoke Clash
In rejecting Chinese
charges that he had bowed to
imperialism in the Cuban
crisis, he said that "these peo
ple who call themselves
Marxist-Leninists" apparently
were trying to provoke a
clash between the Soviet
Union and the United States.
But Khrushchev was hav
ing none of this line, pointing
out that the United States also
had the capability of thermo
nuclear destruction.
The Soviet premier said
Moscow will honor the agree
ments on Cuba so long as the
United States does. But if
American pledges are not ful
filled, he said "we shall be
compelled to take such actions
as may be required by the
situation."
Talks to Resume
Even as he spoke In Mos
cow, it was disclosed at Unit
ed Nations headquarters that
U.S. and Soviet negotiators
will resume talks on the Cu
ban crisis at the Soviet Em
bassy in New York this after
noon. Khrushchev said "favorable
prerequisites" have been cre-
i ated to end the Cuban crisis
and that what is needed now
j is to "bring the negotiations
to a conclusion.
In a broadcast and televised
I address he made to the Su
I preme Soviet, Khrushchev
1 said that those who say the
, Cuban compromise was forced
on the Soviet Union also
should say the United States
also was forced to settle by
peaceful means.
Had Russia taken an "un
compromising position," he
said, it would have helped
i "only the camp of madmen
in the United States" to touch
off world war.
! The United States could
j not win such a war, he added.
Has Nuclear Teeth
I Again with an eye on Pe
j king without specifically men
; Honing the Communist Chi
nese, Khrushchev said:
"Imperialism is no longer
what it was ... It may be a
paper tiger, but people who
call it that should know the
paper tiger has nuclear
teelh."
He said the missiles were
supplied as a result of a "well
founded alarm" from the Cu
ban government that "an at
tack was only hours away" on
Oct. 23.
"We sent our arms there
and placed our rockets just to
avert aggression and that's
why we pulled them out," he
said. "That's it in a nutshell."
Khrushchev ridiculed sug
Kcstions that the Soviet Un
ion had chosen Cuba as the
jump-off point for war against
the United Stales. He labeled
the charges a "malicious fab
rication." Would Have Used Missiles
"Had we wanted to start
war against the United States
we would not have agreed to
dismantle the rockets Install
ed in Cuba which were
i ready for launching for ac
tion," he said. "We would
have brought them into play.
"We did not do that be
cause we had no such aims."
Russia pulled out its mis
siles and nuclear-capable Jet
bombers at a demand from
President Kennedy, who
warned that the United Slates
was ready to use whatever
force was necessary to en
force Its decision.
Khrushchev warned that
the Cuban crisis is not yet
over and "it is not in the in
terests of peace to tarry" in
ending it.
He said Russia's coexistence
policy headed off a thoromi
clear holocaust when the
crisis was at its height, mid
said "all sensible people pro
foundly welcome this triumph
of reason."
At this point in history, he
said, mankind faces "either
peaceful coexistence or de
vastating war and there is
only one alternative: Peace
ful KOCxUt&ncs."
Stocks Weaken At
Closing Bell But
Still Close Up
New York - (UPI) - Stocks
weakened just before the
final bell today but still man
aged to close higher.
Electronics, although below
their best levels, featured the
advance with IBM up rough
ly 6Vt, Motorola and Beck
man around 2 apiece, and
RCA, Ccnco and Texas Instru
ments up approximately 1
each.
Steels also did well with
U. S. Steel, Lukens, Jones &
Laughlin, and Youngstown
Sheet up a point or more.
Ford rose nearly 34 in a firm
auto section. Kodak and Du
Pont advanced more than 1
in a mixed chemical group.
Among the blue chips,
Goodyear and General Elec
tric rose about 1 each.
DOW JONES AVERAGES
New York-llPli-Dow Jones
final stock averages: 30 in
dustrials 647.33. up 2.17; 20
railroads 138.26, up 0.91; IS
utilities 127.12, up 0.83 and
65 slocks 226.66. up 1.10.
Sales today were about 3.76
million shares compared
with 3.7 million fa ni
Tuesday.
Today's prlcei on selected stocks:
Allied Chemical 414
Alum Co. Am 333,i
American Air Lines ..... 18 1 2
American Can 45 ',s
American Motors . IS'.
A T T : Its'.
American Tobacco ...... 32'i
Anaconda Copper . 41'.
Armco 31 .,
Bendlx Corp ...... 33
Bethlehem Steel .... 29 "t
Boeing Air 38 .
Brunswick . 17a,
Caterpillar Corp S31.
Chryiler Corp 71"..
Coca Cola ...... 84 'i
C B S 44
Columbia Gas 25'',
Continental Can 44',,
Crown Zellerbach 47
Crucible Steel 16'i
Curtin Wright 18 ti
Dow Chemical 58
Du Pont 232 fc
Eastman Kodak 109',
Fire.tone 32.
Ford 45 li
uenerai jueciric 77
General Food.
General Motora
Georgia Pacific
Greyhound
Cult Oil
Homeatake
74V,
58'.
43 'i
31 a,
39 .
- 42 li
31"'.
393",
, za.
Idaho Power
IBM
Int Paper
Johna Manville . 41
Kennecott copper 68'.
Lockheed Aircraft 33
Martin 22 .
Marck ..... 79
Montana Power .. 35.
Montgomery Ward . 34'.
Nat l Biscuit 421,
New York Central 15'4
Northern Pacific 36?.
Pac Gaa Elec 3 Hi
Penney. J. C. 43?.
Penn RR 13.
Perma Cement 14 1.
Phillip. 52 'i
Procter Ac Gamble 73?'.
Radio Corporation (xdl 57 li
Richfield Oil 401,
Safewav 43
Santa ft 24 S
Seara .. 75?i
Shell Oil 36.i
Soconv Mobil Oil 57 i.i
Southern Co 50',
Southern Pacific
Sperry Rand
Standard California
Standard Indiana ....
Standard N. J.
. 28
. 12?,
. 64?,
. 48
. 58
. 17',
Stokeley Van Camp
Sun Mines
Texas Co
Texas Gulf Sulfur
Texas Pac Land Trust . 16?:
Thlokol 29?
Trans America
Trans World Air
Tri Continental
Union Carbide
Union Pacific
United Aircraft 52
United Air Linea 32',
U. S. Plywood 47?,
U. S. Rubber 41
U. S. Steel 45?,
West Bank Corp 321,
WesUnghousc 32
. 60',
10',
41 ,
102',
. 33
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i
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