THURSDAY, OCTOBER It. 1963
MEDFORD MAIL. TRIBUNE, MEDFORD. OREGON
Jopoimese
Mill
utlcaw Mweleoiir Warheads
By ARTHUR HIGBEE
United Press International
TOKYO (UPI) - Japan, with
deep seated memories of radio
active ruin and great content
ment at today's civilian pros
perity, needs prodding if it is
to be capable of defending it
self. -
Slowly, the Japanese have
been building up their self-de'
fense forces and taking on a
greater share of the cost but
they take each new step with
reluctance.
This week U.S. Ambassador
Edwin 0. Reischauer and Jap
anese Foreign Minister Masa
yoshi Ohira will hold another
annual meeting of the U.S.
Japan consultative security
committee. Among those present
will be Adm. Harry D. Felt, U.
S. commander in the Pacific,
who told a congressional com
mittee last spring that Japan's
defense posture was "growing
slowly" but is as yet "not up to
requirement to defend the islands.
Most Japanese would agree
but they arc nonetheless reluc
tant to do anything about it.
They are doing something,
though the United States urges
regularly that they do more,
faster. U.S. military aid to Ja
pan amounted to $80 billion dur
ing the last 10 years but only
$70 million last year. It is being
phased out.
Increase Defenses
The Japanese had been ex
pecting this. Their own defense
expenditures are increasing
a record $639 million this year,
and a projected $750 million next
year.
This is still less than a fiftieth
of the massive U.S. defense
budget, and it constitutes less
than two per cent of Japan's
gross national product, as com
pared to America's 10 per cent.
But there is more to it than
that. The United States main
tains a huge military establish-
l ment in the Far East, includ
ing the 22,000 - man Seventh
Fleet and the 27.500 - man Fifth
Air Force, both of which are
headquartered on rent - free
bases in Japan.
The mission of these and ollv
er U.S. forces in the Pacific,
such as the 50,000 - man Army
garrison in Korea and the 14,000
military advisers in houtn Viet
Nam, is the defense of the non
Communist Far East.
Political realities preclude Ja
pan from being any more in this
mission than a key supply ana
maintenance base in the island
defense arc that stretches from
the Aleutians down through Ja
pan to Okinawa, Formosa and
the Philippines.
But a bigger effort by Japan
in the defense of her own islands
might cut somewhat the expense
of U.S. forces in Japan.
More Flexibility
Aside from financial consider
ations, a bigger Japanese effort
would give U.S. forces more
flexibility elsewhere in the Far
East.
Japan's postwar constitution
states than "land, sea and air
Forces, as well as other war
potential, will never be main
tained." Cold war realities have caused
Japan to stretch this claue. In
stead of having an army, navy
and air force she has ground,
maritime and air self-defense
forces.
In Adm. Felt's words, Japan
"has a very respectable mili
tary force today," the more so
in that she started trom notning
in 1050.
That was the year that war
broke out next door in Korea
and Gen. Douglas MacArthur,
the father of Japan's anti-war
constitution, authorized a "po
lice reserve force" of 75,000
men, armed only with carbines
Today, Japans ground, air
and maritime self-defense forces
total a quarter-million men,
manning 13 army division, 80S
American - designed jet fighters
and a navy that includes two
dozen destroyers, six subma
rines and plans for helicopter
carriers.
Japan's ground forces are
equipped with Nike-Ajax anti
aircraft missiles, its planes with
sidewinder heat- homing mis
siles. Significantly, neither type
can carry interchangeable con
ventional or nuclear warheads.
Japan does not want a missile
that could.
She possesses no nuclear arms
of her own, nor does she per
mit the United States to bring
nuclear warheads into Japan.
Any serious attempt to do ei
ther would bring down the gov
ernment. Up close, the new sell-defense
force presents marked contrasts
with the defunct Imperial Army
and Navy.
The most obvious differences
are in mission today's troops
cannot serve abroad even as
part of a United Nations peace
keeping force and in size.
At the height of the second world
war, Japan had 10 million men
in uniform (and lost 2,300,000
dead).
The old Imperial Army pri
vate got five dollars a month
and was systematically punched
and kicked by his superiors. To
day's recruit gets $25 a month,
the same food and quarters as
his officers and can quit at any
time.
Last year a first lieutenant
who so far forgot himself as to
slap several recruits for snicker
ing in the ranks when he chewed
them out for sloppiness at in
spection was suspended for 20
days and transferred to another
post.
The old Imperial Army had
field marshals. Highest rank
in today's self-defense force is
lieutenant general. The top
lieutenant - generals, however,
are permitted to wear four stars
instead of three, so they won't
feel inferior to four-star visitors.
Drawn From Academy
The new system has the de
fects of its anti militarist vir
tues. A larg proportion of the
officers are graduates of the
old Imperial Military Academy,
an exclusive institution that
drew the top three per cent of
students from the best high
schools.
But admission to today's self
defense college is less competi
tive, and looked upon less as
the entry to a proud career than
as a free education. Last year
many of the top graduates went
immediately into civilian life.
Many line regiments are under-manned
by as much as half,
because of drop - outs and a
shortage of recruits. At present
the forces have 29,000 openings.
Inevitably, there have been
complaints. After a veteran pi
lot was killed in a crash last
spring, his squadron command
er resigned and wrote a maga
zine article saying that his me
chanics were under trained
and over-worked.
Yoshitaka Iforie, a military
affairs analyst and a 1936 grad
uate of the Imperial Military
Academy (whose site west of
Tokyo is occupied today by a
U.S. Army supply base), recent
ly remarked, "not even lip serv
ice is accorded the notion that
duty consists of defending the
motherland."
Fanaticism Gone
Despite the shortcomings,
American officers who have
worked with the self defense
force describe its personnel as
generally dedicated and hard
working, with the professional
spirit still in evidence but the
fanaticism happily absent.
The defense agency does not
rank as a full-fledged govern
ment department, though its di
rector general has ministerial
rank. The present chief is Toku
yasu Fukuda, 56, a career pol
itician. Like all his predecessors he
wants to improve the force's im
age. One way is to send the
troops in to help with rescue and
repairs after one of Japan's fre
quent typhoons, earthquakes or
lond slides.
"My predecessors have aimed
at making the self-defense force
loved by the people," Fukuda
said frankly on taking office this
summer. "I would like it to go
forward to where it is respected
by the people, and trusted by
the people."
All this may come to pass
and the sooner the better, as
far as Japan's heavy - burdened
American allies are concerned.
It is doubtful, however, that
the Japanese military will ever
again be feared or held in awe
by the people.
Oregon Supreme
Court Decisions
&
Your Money's
Worth
By SYLVIA PORTER
Copyright, Hall Syndicate, Inc.
WHAT THE TAX BILL MEANS TO YOU - IV
(Fourth in a Series of 10 Columns)
You may pay a smaller lax on profits you make from sales
of stock, other securities and real estate next year, for your
capital gains could become eligible for even bigger tax breaks
than now If the 1963 tax bill becomes law.
For the great majority of individuals, capital gains are now
taxed as follows: 1 you held your, securities, real estate, etc.,
for six months or less before selling, your profit Is fully taxable
ordinary income, just as your salary is. If you wait more than
six months before selling, your profit becomes long-term capital
gain. This automatically cuts your taxable profit in half and the
net tax rate on your entire long-term capital gain cannot amount
to more than 25 per cent.
Thus, under the present tax law, you can get a valuable tax
break by holding your stocks, etc., more than six months before
selling at a profit.
Next year, the 1963 tax bill would add a third, even more favor
able category of capital gains called Class A capital gain. Specifi
cally, if you held your stock for more than two years, then only
40 per cent of the full gain would be taxed instead of the present
50 per cent. The maximum tax rate on the full profit could not
exceed 21 per cent.
If you held your assets more than six months hut not more
than two years before sale at a profit, this would produce a
Class B capital gain. In this case, the present rate on long
term capital gains would apply: only 511 per cent of the gain
would be included In your taxable Income, subject to no more
than a 25 per cent rale on your entire profit.
Since the 1063 tax bill also would cut individual tux rates in
1964, you could get a double tax break on capital Rains from sales
made in 1964. For the amount you would take into income as a
Class A capital gain would fall from 50 per cant to 40 per cent
and the amount taxable as income would be subject to lower tax
rates.
To illustrate how this could work out, suppose you are a single
person with $12,000 of taxable income or a married person with
$24,000 of taxable income apart from capital gains. Suppose you
also own some shares of stock which you have held fur 10 months
and on which you have a $1,000 pacr profit and some shares
which you have held for over two years on which you have a
$2,000 paper profit. If you sell both in the remaining weeks of
1963, your tax bill on the profits will be $645 (tax on 50 per cent
of $3,000). If you wait until January, Wfrt, to sell and if the bill
is law by then, your tax on these profits would drop to $467.50 (lax
at lower rates on 50 per cent of $1,000 plus 40 per cent of $2,000).
Because of these possible favorable changes in bulh individual
lax rates and taxation of very long-term capital gains, you should
carefully weigh the advisability of any sales during the balance of
1963.
You may be able to liefer some sales Into l!)CI, thus giving
yourself a crack at lower tux costs If the bill Is enacted, hut
without hurling yourself If the bill does not become law.
Of course, you may want to sell stock this year which you
already have held more than two years. If this is so, discuss with
your broker the possibility of a short sale. An analysis of the tech
nique of short selling cannot be made in this limited space, but.
In brief, a short sale now could nail down your present profit,
while covering the short sale next year would make your profit
taxable under the new rules for 1964, assuming the House-passed
tax bill becomes law.
You also would get a better tax break on capital losses under
the bill. Under today's rules, if you sell securities, real estate,
etc., at a capital loss and you cannot use up the loss in the year
oi sale, you can carry il over for the next five years. But any part
of the loss you have not used up by that lime Is then wasted as a
tax deduction.
Under the bill, this provision would be changed to permit an
indefinite carry-over for as many years as are necessary for you
to use up your entire loss. You could forget about planning how
to lose out on capital losses before they expire.
Next: Two new (ax breaks for those aged 65 or over.
SALEM (UPD-Noting it had
recently discarded the rule of
charitable immunity, the Oregon
Supreme Court Wednesday re
opened a damage action against
the Salem Memorial hospital.
The high court reversed a de
cision by Marion County Circuit
Judge George R. Duncan which
had dismissed a damage action
brought against the hospital by
Minnie A. Wicklander.
The hospital pleaded the de
fense of charitable immunity,
and the Marion county court dis
missed the action.
In a recent case the high court
overthrew the charitable im
munity rule, and said a charit
able institution could be held
liable for negligence of lis em
ployees. Ruling Upheld
In other action the high court:
Upheld a ruling from the Mult
nomah county circuit court of
Judge Dean Bryson that "Lift
Parts Service of Oregon had to
give up use of the name which
was similar to the name of the
"Lift Truck Parts Service of
Oregon." The Lift Truck Parts
firm claimed the names were so
similar it had lost business In
the firm which had adopted the
similar name.
Affirmed a damage action de
cision by Marion County Circuit
Judge R. Duncan.
Affirmed a Multnomah county
circuit court ruling by Judge
Herbert M. bchwab in a person
al injury suit resulting from an
aulo crash.
Upheld a Multnomah county
School News
CP Elementary School
When fourth, fifth and sixth
grade students at Central Point
Elementary school elected stu
dent body officers recently, they
followed voting procedures they
will use as adults.
Polling places were set up in
the library and little gym. Elec
tion and counting boards were
manned by students. The voters
cast their ballots during lunch
hours and before school. Voting
was not compulsory.
Eighty-six per cent of the
fourth grade, 77 per cent of the
fifth grade, and 74 per cent of
the sixth grade voted.
Officers elected were Mike
Johnson, president; Drbra Tay
lor, vice president ; D i a n n a
Hcrndon, secretary: Jcri Par-
circuit court decision by Judge
Herbert M. Schwab which dis
missed a suit by William Mc
Clendon who sought reinstate
ment in a labor union.
Upheld the conviction, in the
Klamath county circuit court of
Judge David R. Vandenberg, of
Boyd Julius Jackson for second
degree murder, for which he re
ceived a life sentence.
Award Affirmed
Affirmed an award of $10,000
to the River Bend Sand and
Gravel company, approved by
Marion County Circuit Judge
R. Duncan, for its interest in
land condemned by the city of
Salem.
Affirmed a ruling by Klamath
County Circuit Judge Lyle K.
Wolff, in an action for recovery
of money due under three con
tracts for sale of furniture, tnai
Adair's Hardware and Furniture
was entitled to payment from
Ben and Edith Adair in spite of
the company's failure to sign
the sales contracts.
Upheld a decision by Mult
nomah County Circuit Judge
Charles W. Redding denying a
motion by William W. Hayncs
that burglary charges against
him be dismissed for failure to
prosecute within a reasonable
time.
rish, treasurer; Deborah Chav
is, sergoanl-at-arms; and iner- since they live underground
Grant Received
To Study Aphids
CORVALLIS An Oregon State
university entomologist has re-1
ceived $34,700 from the Nation-;
al Science Foundation to study
long-standing pest of pears
that has plagued nurserymen
since the turn of the century.
Dr. K. G. Swenson is trying
to determine what effect en
vironment has on development
of pear root aphids.
Some of Oregon s nurserymen
have lost up to 80 per cent of
their stock in certain years due
to this particular aphid, which
feeds on roots of pear trees.
Swenson said whatever he finds
probably will apply to most oth
er root feeding aphids as well.
In explaining the work he
plans, the entomologist pointed
out that most aphids prepare
for winter by responding to days
shorter than 12 to 14 hours
much like some other insects,
plants and birds. The question
is; "What do root-feeding ap
hids substitute for day length
Everybody's Favorite!
jC ICE CREAIvl
vl Miller, safety chairman.
Lester Wilson, fifth grade
teacher and student council ad
visor, and Mrs. Viola Laird,
sixth grade teacher, supervised
the election.
INSTITUTE PLANNED
SALEM (UPI) - Oregon
Fairview Home will hold Its 12th
annual parent's institute Oct. 26,
Sttipl. James M. romeiny said j satisfactory controls can
today. I worked out, he explained.
Swenson thinks and hopes
to prove that some change
in the pear tree, because of its
response to day length, triggers
a change in the aphid.
He hopes to determine not
only what tells the aphid it's
time to prepare for a different
season, but specifically how the i
message is relayed. This basic I
knowledge is necessary before
he
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Phone 773-7444
ML
222 West Main Street
NEXT TO POWER COMPANY
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