Herald and news. (Klamath Falls, Or.) 1942-current, March 29, 1956, Image 1

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Herald and news., March 29, 1956, Page 1, Image 1

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Newspaper Page Textu of osegos lib-ust COUP Pacific Poiver Plant Money Requested WieUTMTVU I n i-i was asked Wednesday to set aside funds lor an early start on at least one new hydroelectric pow er plant In the power-hungry Pa cific Northwest. The recommendation was placed before a House Appropriations sub committee by representatives of eight public and private utilities serving 70 per cent of the elec trical consumers In Washington and Oregon. Cliff J. Erdahl, as spokesman for the group, said the utilities felt work should be started as soon as possible either directly by the In The- Day's Sews By FRANK JENKINS I'm a little surprised to find this morning in the editorial columns of one of our most estimable and most respected Western newspa pers this statement: "We are certain that a good many loyal and reflective citizens will be somewhat disturbed by the government seizure of communist party property, including that of the (New York) Daily Worker, on back tax claims." That seems to me to indicate a fundamental misunderstanding of the ruckus between the govern ment and the communist party and Its New York newspaper, the Daily Worker. . The facts In the case are about like this: , i ' The government says the Daily Worker owes $46,049 in income taxes for the years 1951, 1952 and 1953 and HASN'T PAID IT. The Daily Worker says it actual ly LOST MONEY In those years, and so doesn't owe any tax. tin answer to this contention, the government says: "How come? If you were losing money, how did you go on operating? It takes money to operate a newspaper, Just as it takes money to operate any business, where did the money come from? To this, the Daily Worker re plies, in effect: "We lost money on our news paper, but our friends GAVE US MONEY to keep on going." The government then says: "Well, that was INCOME. You must report It. You must report how much it was and WHERE IT CAME FROM." The Daily Worker refuses to re port it. So the government cracked down on the Dallv Worker's property Just a.s It would crack down on this newspaper if it refused to re port essential facts about its in' come. That': about the situation;:" ' Here's the rub: SUPPOSE THE COMMUNIST F,ARTY OP RUSSIA. WITH HEAD QUARTERS IN THE KREMLIN, HAD PUT UP THE MONEY TO KEEP THE DAILY WORKER GO ING. Or at least a part of it. It would be EXTREMELY em barrassing to the communist Daily Worker to have to confess that. But I think that as Americans we are entitled to know where the Income to support this communist newspaper, the Daily Worker, comes from. We are spending our treasure and in Korea and else where we have spilled our blood to defend the free way of life against the encroachments of com munism. I can see no reason why the communist Daily Worker, which operates in the United States of America, shouldn't be required to report the facts about its income Just as other newspapers and other businesses In our country are re quired to report the facts about their income. Can you? Congressmen Laud Seizure WASHINGTON lPThe padlock ing of U.S. Communist party of fices and those of its paper, the Dally Worker, drew praise today from several members of Con gress. Senators McClellan (D-Ark) and Robertson (D-Va) endorsed a pro posal by Sen. Wiley (R-Wis) that the Treasury Department assign a panel of crack Income tax ex perts for an "all-out blitz" against Communist organizations. In a letter to Secretary of the Treasury Humphrey, and In a Sen ale speech yesterday, Wiley said the technique he has in mind is the same used in income tax cases used to Jail gangsters. Internal revenue agents clapped padlocks on Communist headquar ters and the Dally Worker offices In New York Tuesday, and in si multaneous raids also padlocked Communist party offices in other cities, alleging income tax delin quencies. Declaring it is being persecuted, the Communist party contends it is exempt from such taxes as a political party. The Daily Worker says it owes no taxes and that it has been operating at a loss. McClellan, a member of the Sen ate Appropriations Committee, said he would be willing to support any Treasury Department request for more money to finance such a move as Wiley proposed. But he added the- revenue service "seems to be getting along" on what It has. Robertson voiced similar views In a separate Interview. The Daily Worker kept on pub lishing, using a private firm to do its printing. Only its offices ere padlocked. In an editorial in today's edi tion, the Dally Worker declared it was locked up only after refusing to give the government the names of lis financial backers. government, or through partner ship with non-federal agencies. The recommendation did not list a specific project. ADEQUATE FUNDS The utility groups also asked appropriation of-"adequate funds" to orevent a construction lit on projects already under way: that Congress "expedite" legislation providing Joint local-federal dam construction, and continued study and planning of Columbia River projects to provide a definite con struction program. Requests in the President a bud get for Army Engineers and the Bonneville Power Administration should be regarded as "a mini mum ' the groups said. They requested doubling the 6 million proposed for Ice Harbor Dam, and the (500,000 for John Day Dam planning, and for "whatever funds are required" to permit Army Engineers to work with state and local agencies in trying to solve the fish problem. Included in the gioup making the requests were the Wahkiakum (wasni county puonc utility dis- Co., Seattle Light Dept., Eugene (Ore) Water and Electric Board, Portland General Electric Co., Ta coma Department of Public Utll- ities, Washington Water Power Co. and the Washington State Pow er Commission. Charles Baker and Herbert O. West, president and executive vice president, respectively, oi tne in land Empire Waterways Assn. also appeared before the commit tee. ICE HARBOR REQUEST They requested a 3 million dol lar increase in money for Ice Har bor Dam, saying the 5 million al located would leave Army Engi neers without funds after comple tion of the first cofferdam in Jan uary. Baker and West said failure to Increase the appropriation would Increase the amount needed in two succeeding fiscal years to 15 mil lion and 36 million dollars, respec lively, in order to obtain power by 1961.- Hubert H. Walter, administra tive assistant of the Columbia Ba sin Commission, called for approv al of budget requests of 113.850,000 for the Columbia Basin, (1,500.000 for the Foster Creek unit, (1,28s,- 000 for the Kennewick unit, and (1,720,000 for the Roza power plant on the Yakima project. Clerk Reports Vote Estimate County Clerk Charles DeLap es timated Thursday that when the registration books are closed April 18. approximately 9.250 Republi cans and 10,500 Democrats will be eligible to vote m Klamath Coun ty. ,. - - DeLap -reiterated -"hl wfrnlng that persons who have- moved out of the preclncf in which they are registered will not be allowed to vote unless they re-reglster. All voters who go to the polls in the May 18 primary will have to take an oath that they are living In the precinct in which they are registered. ' ' More than 300 persons signed the registration books at the clerk's office Wednesday. According to DeLap. there is about the expected number of per sons changing registration irom one party to another. On the Friday, Monday and Tuesday preceding the April 18 registration deadline, the county clerk's office will be open evenings. Solon Accuses Doug McKay WASHINGTON Wl - Sen. Neu berger ly-Ore) Wednesday de scribed Secretary of Interior Doug las McKay's entrance into the Oregon Senate race as a "ruthless brushing aside of the Republican Party" in that state. He told the Senate "the intrusion by the present White House hier archy into the Oregon Republican primary election makes pallid and mild by comparison" any partici pation In a state race that took place under President Franklin D. Roosevelt. McKay is seeking the GOP nom ination to oppose Sen. Morse (D Ore) In November. Neuberger said there was some reason to believe McKay also was "thrust" Into the race to eliminate from the Cabinet a man who has become "a national symbol of giv ing away water-power sites, na tional forest timber and wildlife refuges." He said "a little group In the White House and the Republican National Committee" handpicked McKay and "sent him off to Ore- Ron without so much as a courtesv notice to the Republicans already filed In that race." Student Shoots ROTC Instructor MINNEAPOLIS (UP) A Uni versity of Minnesota student, his dream of an Army career shat tered by low grades, shot his ROTC Instructor three times and then killed himself yesterday. Police said Wayne P. Mohan. 24. armed himself with two guns and waited in a parking lot for Capt. Francis L. Franklin, 35. an Instructor in the reserve officer training program. He fired five times, hitting Franklin in the head, chest and groin. Then he ran down the street to the University Museum of Natural History and Into a basement wasn room. He shot himself in the head and died instantly. Franklin staggered to his car and leaned on ita horn until help came. He underwent two hours of surgery last night and was re ported in good condition today. 9H Red Disarm Plan Said Incomplete LONDON Iffl An American source says Russia's latest pro posal for world disaimament in cludes the basic concept of Presi dent Elsenhower's aerial inspec tion plan. Details of the Soviet plan, made at the five-power U. N. disarma ment subcommittee meeting here, were . not disclosed. Informants said, however, . they were quali fied and incomplete. In the American view, the In formants added, the Soviet plan "approaches only part of the problem." But diplomatic sources said they believed the new Soviet proposals represent something more than propaganda and move nearer to the Western position on Inspection. PLAN FORWARDED The U. S. delegation immedi ately forwarded the new Soviet suggestions to Washington for study. Eisenhower's "open skies" plan for mutual air inspection of mili tary establishments and an ex change of military blueprints was presented last July at the Geneva Summit Conference. The Russians previously have dismissed it as unworkable. A British source said Russia's Deputy Foreign Minister Andrei A. Gromyko avoided most eliorts by delegates to get a more de tailed explanation of the new So viet proposals. The source said the Soviet represcntallve also avoided any explanation of the omission of the usual Communis; demand for an atomic weapons ban in the latest proposals. In formants said the Russian plan emphasized cuts in conventional arms and made, only general ref erences to nuclear weapons. ADJOURNMENT The conference adjourned for an Easter recess with the plans of the Soviet Union and the United States and a joint British-French proposal still before it. None of the powers has rejected any of the proposals, which still are In a preliminary stage. Canada is the fifth member of the subcom mittee. 35 Rescued From Vessel PROGRESO, Mexico Wt Port officials said Thursday all the pas sengers and crew aboard the Mex ican motor vessel Motul had been rescued. The ship burned and sank in the Gulf of Campeche Wednes day night. Joselln Heredla Cobas, a port authority official, said 21 passen gers and a crew of 14 were res cued by the Mexican Coast Guard boat Virgilio Uribe and an am phibian plane. They were taken to Campeche on the west coast of the Yucatan Peninsula. Among them was the Motul's captain, Ignaclo Ferrer tia. The 300-ton Motul sank late Wednesday", about 60 miles north- northwest of Campeche about 10 hours after a fire was touched off by engine room explosion. Distress calls sent out during the day were picked up by the Virgilio Uribe on patrol duty. The Mexican Coast Guard vessel sped to the scene and also asked help of an amphibian plane. Cobas described as erroneous report that a U.S. patrol bomber had crashed while looking for sur vivors. A report from New Orleans said that a Mexican patrol bomber had crashed while on a search for survivors. MMV -?.--sr--t7 IKLliillill.JMipiUI,l l.i l V --yMJ'Wg - v v., i ' r s i V i i v.- ANN ANDERSON, 1540 Lookout Street, grinned end bore it this morning while the 9 o'clock photographer snapped this photo of her on her way to school. She is en eighth grader t Fremont School. Price Five- Cents -28 Pages UN Council May Adopt Mission Plan UNITED NATIONS. N.Y. (PI Somt U.N. delegates predicted to day tie U.N. Security Council would adopt a U.S. resolution to send Secretary General Dng Ham- marskjold on a Palestine peace mission. Opinions differed on how soon the council might act. One council member told a re porter the vote would come Tues day at the next council meeting on the American proposal. Anoth er said further meetings would be necessary for full U.S. answers to Arab and possibly Israeli questions on the aim and scope of the mission. FORECASTS The forecasts of final approval were based on speeches to the council yesterday by Egypt and Syria. These generally were con sidered moderate in tone. Egyptian Delegate Omar Loutfi and Syrian Delegate Ahmed Shu kaiiy both asked Hummarskjold was to deal with anything beyond the 1949 Palestine armistice agree ments. Both said they so''nt only clarification, and Loutfi asserted Egypt is "always prepared to work hand in hand" with Ham marskjold and the U.N. truce chief in Palestine, MaJ. Gpn. Ed son L. M. Burns. Shukairy declared Syria had nothing to hide and would 'wel come a survey of the extent of compliance with the armistice agreements.' He asked, however, if Hfliiunar.sk jold would be as signed to amend the agreements and If he would be expected to deal with political, economic and financial problems. Chief U.S. Delegate Henry Cab ot Lodge Jr. said their questions could be "quickly and clearly an swered" at Tuesday's meeting. HIDDEN MEANINGS "There are no hidden meanings in this," Lodge said, "ir you search, f rom riow - until dcomadtvy with a mngnilylng glass, the only purpose you will find is to pre vent war." Calling for "urgent and early action," the U.S. resolution would send Hammarskjold to the Middle East for discussions on reducing tensions along the armistice lines separating Israel and the Arab states. An Israeli source said the U.S. resolution was acceptable to his delegation but that Israel would have "some observations" to make to the council. Israel's other two Arab neighbors, Lebanon and Jordan, so far have withheld comment. Ike Accepts Resignation WASHINGTON (P President Eisenhower Thursday accepted "with profound personal regret" the resignation of Douglas McKay as- secretary ol the interior. He wished McKay well in his cam paign for senator. McKay's resignation Is effective April 15. He has entered the May 18 Oregon Republican primary in a bid for the Senate seat now held by Sen. Wayne Morse, who turned Democrat after election as a Republican. KLAMATH FALLS, OREGON, 1 B. F. STARR, elevator operator at the Klamath Falls Post Of fice, tcowls at one of man's most frustrating instruments Jh battered-up and often messy post office pen. The pens, quit frequently the butt of bad jokes, will be replaced within the next six months by a newer ball point variety. The postmaster general has called for bids for 500,000 of the instruments. Starr lives at 2700 Darrow Street. Adlai Stevenson Launches Attack Against Opponent LOS ANGELES W Adlai Ste- venson "a little angry and upset1 has lnunched his strongest most personal attack yet on Sen. Estes Kefauver, his rival for the Demo cratic presidential nomination. Stevenson, in a major, address here Wednesday night, charged Kefauver with trying to capture California 'support with the same kind of "false and derisive boss nonsense" which he said the sen ator cited in Minnesota. "But more important even than this effort to injuie me ... by confusing endorsement with dicta tion is that by discrediting the leaders of the Democratic party here In California the senator and Willamette . Surveys Asked PORTLAND lPi Army Engi neers are calling? lor .surveys on three proposed Willamette Basin dams. Col. Jackson Graham, district engineer, said bids will be opened April 9 for funilshtnu two five-man parties for surveys on preliminary work for the Green Peter project on the middle Santlam River. They also will be required to do some work for the Hills Creek project on the middle fork of the Willamette Bbove Oakridge and to make revetment surveys on the Willamette In the Eugene area. Graham said the surveys will help toward final selecllon of the site for Green Peter and Us re regulating dam. White Bridge, to be located about three miles down stream. There are about five miles of canyon In which the proj ects can be located. The projecls are expected to cost about million dollars. Primarily lor flood control. Bids also will be opened April 11 for a survey on Cougar Reser voir relocations on the south fork of the McKenzle River. The Cou gar Dam, to cost about 37 million dollars, will be about 42 miles upstresm from the community of Blue River. Congress has appropriated $500. 000 for work on Cougar and 1)0. 000 for Green Peler this year. Fong Murder Trial Opens PORTLAND Opening state ments by the d"i"nsr and prose cution were to t?rt underway here Thursday in the first driee mur der trial of Wayne Fong. He accused of slayinir Dianf Hank. 16. who disappeared all'-r spending the muht at th? fonii home in January. 194. Her body, trus.srd mi a btiUikei. was found some time lairr in a roadside ditch near Washougal, Wash. This i the second time Font has lacrd tnnl on the murder chprc. He and hn Vile, fchrrry, were convicted of fu:.t denree murder at a Joint trial. The ver dict was .set aside, however, and new separate trials ordered. Mrs. Fontj was convicted of ond decree murder at her later trial and now i uppexling to the Oregon Supreme Court. K Jurv of fix men and s x Wo men, worn in Tuesday, will de cide Fong a fate. nn M JU M Tift KSDAY. MARCH 29, 19SS his spokosmen can only weaken and divide the party and thereby help the Republicans,"- Stevenson declared in his televised speech. PARTY OBKKRVERS To pHi-ty observers, t looked as ii bteveuson naci lateen ou his wraps for a hand-to-hand encoun ter with Kefauver even though the former Illinois governor had indi cated earlier vhat he did not Intend to engiiRo in personalities. His unmistakable jabs last night made It appear that he had de cided a real knockdown fight is necessary if he is to recover from the Kefauver victory in Minnesota last week. Obviously referring1 to Kefauver, he told a rally of 500 Democrats later last night: "I have been a little angry and upset about things that have hap pened lately. His characterization of your leaders as bosses upset me deeply. Now It's my turn to fight for you." Stevenson said he would have to campaign "my way from here on in. I am not going to attempt to compete in a race with either Dcmocrntic or Republican candi dates where I will have to con tinually try to outbid by oppo nents." He snid he has long favored a 400-million-dollar annual school improvement program and added: Ot Tl.I! AGAIN "The other day my Democratic friend proposed a 500-million-dollar-a-year school improvement program. And I was outbid again. "I have been upset on another count. They say Stevenson Is aloof. When a man's been in public life very long he cannot afford to be aloof." FORECAST Klamath Fall and vicinity: MoMly fair with variable cloudiness through Friday. Hliths S2-57. Lows Thursday night 28-33. High yesterday Low last niRht Preclp. last l hours I'rerip. ninre Oct. 1 Same nerlod Inst year 55 15 Normal for period fl.39 v. Probers Refuse Trade Papers WASHINGTON iff) The Senate Invc mentions subcommittee re-fu.-.od Thursday to accept In confi dence lite custody of secret docu ments detailing Western allies' tmrie with Russia. The decision came after Sen. McCarthy IH-Wisl served notlre he would not feel bound to keep the material secret. Chairman McClellan IIJ-Arkl said the subcommittee. mccliliK behind rinsed doors with lop gov ernment oificinl.s who had ollcred the documents only on a confiden li;il ba-i.s, declined to accept custo dy until after the group can meet ayitln to "review the situation." The documents contain lists of items embargoed for sale to Rus sia by free world nations, and spell out the controversial changes niiule when this government re luctantly agreed to an easing of tlie curbs on such trade. Administration officials had re-fu.-.ed, In the face of direct orders from McClellan. to divulge the In formation In publio hearings. The ppers were ollered Thurs day by Herbert Hoover Jr., under secretary of state, on a "classi fied" basis which forbade their public disclosure. Telephone 8111 Farm Group Decides On Wheat Plan WASHINGTON Ifl A Senate- House conference committee de cided Thursday that commercial wheat growers should have a choice each year between 90 per cent price supports plus controls or an untried "domestic parity program." Sen. Ellcnder (D-La) announced this decision bv the 10-member group seeking to adjust differences between the Senate and House on the election-year farm bill. He also said after a closed meet. ing that the committee had given up the idea of finishing its Job this weekend. . "It looks now as though we may not complete our report until sometime next week," Ellcnder said. l.M.MI DIATE PKOm.KMS As to Immediate problems of the commltlee,- Ellender said House spokesmen were seeking more curbs and restrictions "on the blanket authority" voied Secre tary of Agriculture Benson by the Sennte on the new $1,200,000,000 a year administration soil bank pro gram. He did not elaborate.' Sen. Aiken (R-Vti, who often voices administration views, said Inclusion of the special wheat pro grams "was unacceptable to me and the administration." He previously had predicted a presidential veto of the legislation because of numerous price boosts lng provisions opposed by Presl dent Elsenhower and Secretary Benson. As the conference group moved into Its fourth day of sessions, El- lender said the "biggest hump we still face Is working out programs for corn and feed grains that will fit them In the bill." The Senate voted mandatory support levels for- the leed grains oats, barley, rya and grain sorghums based on corn prices. Tne House Dm in cludes no such provision. But before tackling that. El- lender" said (he jjrnup hoped to clean up rietnlls affecting wheat and dairv farmers. START NEXT VEAR , He snld a "domestic parity" program for wheat, to slarl either next year or In 1958. had been accepted In principle although some details were unsettled. This proposes to give wheat growers 100 per cent of parity on that part of their crop used lor domestic food. The remainder would be sold or supported at a much lower price Intended to per mit Its export or use as feed grain. Just what Ibis level should be, so that It does not crowd out corn and feed grains or wreck Interna tional wheat export agreements, Is unsolved. Dulles, ike Hold Confab WASHINGTON W President Eisenhower conferred for an hour and a quarter Thursday with Sec retary of State Dulles and Atty. Gen. Brownell. The White House said only that the meeting concerned "govern ment mutters' in which they were mutually Interested. This was Dulles second extend ed meeting with the President in two days. He spent two hours with the chief executive Wednesday. An Eisenhower aide htd said In advance that Wednesday's meet ing was "very Important" but Dulles told reporters at'.erward that no urgency was Involved. He said he and the President discussed "an accumulation of business." Thcr was some speculation that they mhrht have talked over ir Russia s laiesi proposals on oi ?,H1 ! p.rmnmtfnt, the Middle East situa !.! tton and Iceland's request for with- ' drawal of U.S. troops there Hoover told a news conference after the closed meeting that "we believe this material contains In formation affecting the national defense of the United States," a position with wnich McCllellan took nsue. "I don't believe It," McClellan told the news conference, al which Hoover, Secretary of Commerce Weeks and FcjjLign Aid Director John B. Holllvw sat in. The committee wants to know not onlv what Itetni were cleared lor trade with the Communist bloc, but what efforts were made to avoid loosening the restrictions and who made recommendations affecting the negotiations with the Western allies. At earlier public hearings be fore the subcommittee, which Is Investigating East-West trade, all three rclu;ed to produce some re quested Inloimation about a 1954 agreement lo relax free world tra.ie with Russln. They snid they would supply turn data only at a secret session, and that U do no publicly would violate a U.S. agreement wi'h some of Its allies. All three ollicials have testified this country leluctantly agreed to some relaxation to prevent the Many Towns Virtually , Paralyzed By THE ASSOCIATED PRESS Violent wind and snow storms, which struck crippling blows Wednesday to northern sections of the Midwest, continued their as sault Thursday. Many communities In four statei the Dakotas, Minnesota arid Wis. consln were virtually paralysed by the vigorous early spring storms. The dust storms which smoth ered crops in the Great Plains abated. Strong winds which struck from northern Texas and eastern New Mexico to the Canadian bor der diminished from eastern Colo rado and Kansas southward. How ever, there was considerable dust In the air In western Texas and parts of Oklahoma and Kansas. OTHER SECTION'S HIT Stormy weather also hit eastern and southern sections of the coun try In the form of rain or hall and strong winds. , Blizzard-like conditions were re ported early Thursday In the Da kotas with- blowing snow. Winds langed from 25 to 30 m.p.h. and gusts to 40 m.p.h. Temperatures dropped to far below freezing. Oilier northern Midwest states were dealt similar crippling blows. Schools in many rural areas and cities were closed. Highway travel was slowed with many roads blocked by fallen trees and util ity poles. Air travel was curtailed. snow falls measured up to a foot In some plaoes, and the strong winds caused considerable drift ing. Snowplow crews were unable to make any headway In clearing the clogged roads because of the persistent strong winds. The cold air sent temperatures down from 10 to 27 degrees in the central plains and middle Mis sissippi Valley. RAIN STORMS Rain storms lashed wide areas in the south from central Alabama and central Georgia northward through the southern and central Appalachians, the middle Atlantic Coast. Tennessee and southern and eastern parts of the Ohio Valley. Heaviest falls were In the southern Appalachians. Cool dry air was In prospect for most of the southeast today. Bkles were clear In most of the western pari of the -nation al though a new Paclflo storm front brought light' rain U sections of Western Washington and Oregon. The s.iUlhwest insert region con tinued summer-like with readings In the. high 80s. Top mark Wednes. day was 87 at Thermal, Calif. It was 84 at Los Angeles. Police Free ; Youth NOGAL.ES, Sonora, Mexico Iff! Phil Ford, a university student from Salem, Ore., and two com panlons from California were re leased from a Mexican Jail Wed nesday. They had been held by mistake since Saturday night. - They were arrested by Mexican police Investigating the slaying of Mr. and Mrs. Barton Kennison of Detroit. Officers mistook Thomas Joseph O'Brien, 22, of Ban Pedro, Calif., one of Ford's companions, for a Thomas P. O'Brien, a sus pect In the Kennison murder.. On Sunday Mexican police ad mitted their error but said they couldn't release O'Brien, Ford, and the other student, Harold Mc Orath of Lakewood, Calll., until they got clearance from Mexico City. . The clearance came Wednesday and the three . checked across the border a few minutes after they were released from Jail. The youths had been studying at a Mexico City university. Ford was quoted at saying In a telephone interview with the Oregonlan that he was worried for a while by the affair. "The Mexican papers had us splashed all over the. front page as 'murderer and dangerous crim inals caught at border." and the olllclals were not In a hurry to admit they were wrong." Ford. 23. Is the son of Mrs. a. W. King of Leffelle St.. Salem. He plBns to be home some time next week. whole voluntary system of restric tions on Iron Curtain trade from colli-.osing. Hoover testified Monday ihat the Chinese Nationalists have been trading with Red China, while ex changing shots In the Formosa Straits. He said kuch trade amounts lo "quite a number of millions of dollars' worth of goods every year." Yesterday, however. Slate De partment Press OHicer Lincoln White said he could find "no evi dence of direct trade between Na tionalist China and Red Chins." He said tvr.-.w such trade Is ear ned on Indirectly through Hon Kong, a British colony. The U.S. embassy of Chiang Kai shek s Nationalist government said there is some trade in nonstra tegir. poods, mos'ly consumer Items, between Formosa and Hong Kong. It Indicated the Nationalist government has no control over any forwarding of such goods on to Red China. White raid figures Indicate For. move has been shipping good worth about f2J0.0OO to Hong Kong yearly and has been getting from Hong Kong more than 31'- million dollars worth.