Friday, November 4, 1966
The Daily Nebraskan
Page 5
Deflation Backfires
4 Wilson Misunderstood Reperc ussions '
PROFESSOR BLOUET . . . Britain has "antiquated Industrial system."
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City, State, National, World j
I Week In Review 1
Brown Fights School Bus Amendment
An opponent of Amendment 6, the,
school bus amendment, says parents who
send their children to parochial schools
voluntarily choose a pathway of educa
tional segregation.
Richard C. Brown of Holdrege, head
of Nebraskans for Public Schools said he
regreted that "religion has entered the
argument" over the amendment.
"It was not introduced however by
opponents of the measure but its sup
porters with their charges of segregation,
discrimination, second-class citizenship
and anti-church bias and their pressures
that have been applied to silence opposi
tion to the amendment," Brown said.
Brown said it is false to say he op
poses parochial schools.
"I would join anyone in vigorous de
fense of the right of churches to oper
ate schools that suit their purpose and of
Housewives'
The housewives' revolt against high
food prices continues to spread across
the country like spilled milk.
Beginning with the successful boycott
of Denver supermarkets two weeks ago,
organized protest groups such as SOS
(Shoppers on Strike) in Indianapolis, Ind.,
and WOW (Women on the Warpath) in
Buffalo, N.Y., are forcing a nationwide
dialogue.
The National Commission on Food
Marketing, appointed by the President
and including leading members of Con
gress, reported last June that food-chain
net profits had declined steadily in every
No Hanoi Rush For Peace
Despite worldwide diplomatic moves
to end the Vietnam war, the view from
Saigon is that North Vietnam still has
very little intesest in peace talks with
the allies.
Hanoi's rulers appear determined to
press ahead with the war, even though
their monsoon offensive in the south was
stopped cold. From Hanoi's viewpoint,
analysts explain, there is no reason to
rush to the bargaining table. The war,
as North Vietnam probably sees it, is
still not going too badly.
Hanoi remains convinced that the
United States will eventually weary of
the conflict and take its soldiers home.
Some 15 years ago, General Vo Nguyen
Glap, North Vietnam's military master
mind, said that the liberal democracies
have a psychological problem when fight
ing against "wars of liberation." Even
tually, he asserted, they must withdraw.
But the major Communist concern
for the moment is the current "dry sea
African Talks
The fourth African summit conference
in Addis Ababa seems destined to open
Nov. 5 amid a major new African crisis.
In the foreground are Guinea and
Ghana. Gen. Joseph Ankrah's National
Liberation Council of Ghana which, over
threw former President Nkrumah last
Feb. 25 arrested on Saturday Guinea's
i Foreign Minister and the rest of a 19
man Guinea delegation bound for the Or
ganization of African Unity (OAU) sum
mit in Addis Ababa, Ethiopia.
General Ankrah's move came only a
few days after he ordered closing of first
the Cuban and then the Chinese Com
munist embassies in Accra for alleged
subversion.
Accra radio announced that the Gui
neans would be freed only after Guinea
releases Ghanaians held against their will
and stops subversion against Thana.
The Guinea government of President
Toure and "co-president" Kwame Nkru
mah turned on the United States.
Guinea blamed the United States Gov
ernment for allowing Ghana police to en
ter an airliner to seize Gulneans during
a transit stop at Accra. The United States
ambassador has been placed under house
arrest.
..... YfjV.
parents to choose such schools for their
children.
"What I opposed," Brown asserted,
"is the division of tax funds among a
number of educational systems, a division
in which public schools may well come
off last."
Brown asserted Omaha Sen. Eugene
T. Mahoney's baseless attack on my in
tegrity should alert Nebraskans to the
truth of what I have said against Amend
ment .
The Holdrege civic leader said his
group, opposed to the amendment has
"managed to scrape together about
$1,000," compared to almost $14,000 in
contributions reported several days ago
by the Constitutional Committee
for Amendment 6.
The Lincoln Evening Journal
Market Boycott Spreads
year since 1957 with the exception of 1963.
Both the Federal Trade Commission
and the food commission seem to agree,
according to spokesmen, that since there
is no fat in food-chain profits, price re
ductions can be made only by cutting
back some of these costs, such as ad
vertising and promotion gimmicks.
The chain stores protest they can't
lower prices because of their slim mar
gin of profit. Government authorities who
keep tabs on supply and demand, prices
and profits appear to agree.
The Christian Science Monitor
son" when favorable weather patterns
spread over large areas of South Viet
nam. During this time, which extends from
late October to May, the allies are ex
pected to launch a major drive into Viet
Cong strongholds, open roads long dom
inated by the Viet Cong, and push the
pacification program.
Allied officials believe It is primarily
to counter this offensive that Hanoi has
launched a counterattack of its own In
northernmost Quang Tri Province. Ele
ments of three Communist divisions are
known to be fighting there against Unit
ed States marines and Vietnamese troops.
The strength and determination of this
Communist counter-offensive in the north,
as well as other factors, convinces ana
lysts here that it will be at least next
June before Hanoi would consider negoti
ationsif then.
The Christian Science Monitor
To Open Amid Crisis
One immediate effect of the Ghana
action against Guinea and the wave of
protests from various African countries
was to rescue Nkrumah from 'obscurity.
Some of the Ghanaians "detained" in
Guinea had been receiving guerrilla and
sabotage training to harass General An
krah's government.
The Ghanaians were trained in ideol
ogy and guerrilla tactics by Soviet, Cu
ban and Chinese Communist instructors.
Some of those Ghanaians, held against
their will in Guinea managed to escape
to Ghana through Sierra Leone and the
Ivory Coast. General Ankrah's govern
ment contends that about 30 are still held
there.
Ghanian authorities regarded the Gul
neans as hostages who would be released
when an estimated 100 Ghanaian citizens
allegedly held in Guinea against their
wishes were allowed to come home.
The Guinean officials were scheduled
to attend an African foreign ministers'
conference in Ethiopia to prepare for an
African summit meeting later this week.
Delegates expressed the fear that the
detention of the Guineans might force
postponement of the summit conference.
The Christian Science Monitor
Foreseen
By John Fryar
Junor Staff Writer
In attempts to d e f 1 a t e
Great Britain's economy,
Prime Minister Harold Wil
son's government may be
creating new problems, ac
cording to Brian Blouet,
visiting lecturer from Brit
ain's University of Shef
field. Blouet said that while it
is still "far too early" to
make an overall judgement
on Wilson's policies, in his
personal opinion "the Wil
son administration didn't
understand sufficiently the
complexities of t h e econ
omy or the repercussions"
before it began the pro
grams. Trying to cut consumer
spending and raise exports
and investments, Wilson
has imposed high taxes
and credit restrictions.
Channel Employees
Measures have included
the Selective Employment
Tax which attempts to chan
nel employees into manufac
turing industries and induce
a price-wage freeze.
Blouet said that the Se
lective Employment Tax is
not paid by employers
in manufacturing industries,
but rather is directed at the
employees in such areas as
wholesaling. He said that
Wilson intends this to be an
incentive for movement of
labor into the manufactur
ing industry.
Blouet said that this may
be backfiring, because this
summer there was practic
ally no unemployment in
Britain, and now there is
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Blockade
I Gibraltar;
Britain will give all aid
necessary to enable be
leaguered Gibraltar to hold
out against the Spanish
blockade of its frontier.
Aid details will be dis
cussed in November when a
team led by Gibraltar's
Chief Minister Sir Joshua
Hassan visits London.
Government spokes
men have been at pains to
underline Britain's deter
mination to back the 25,000
people on the Rock follow
ing doubts on the issue
raised by Colonial Secre
tary Fred Lee's week an
swers to questions in the
House of Commons on Tues
day. Members demanded an
assurance of British sup
port for Gibraltar after the
closure by Spain of the
La Linea frontier to goods
and vehicles on Oct. 25.
Demands are being beard
on all sides for a statement
by Foreign Secretary
George Brown.
The closing of the frontier
is the latest incident in the
dispute in which Generalis
simo Francisco Franco
claims sovereignty over the
Rock for Spain.
The immediate reason
given for the frontier clos
ure was violation of Span
ish air space by British
military planes.
Britain proposed on Oct.
6 that the Gibraltar dispute
should be taken to the
World Court. General
Franco has not replied.
Britain has reason to be
lieve that if the Issue gets
to the World Courts, its
claim to sovereignty estab
lished under the Treaty of
Utrecht In 1713 will be upheld.
Polish Pamphlet Vilifies
Catholic Church, Primate
Stefan Cardinal Wyszyn
ski is accused of spreading
lies, hatred, disloyalty, and
insults against "everything
that people's (Communist)
Poland stands for" In a pam
phlet now on sale in Polish
stores.
The 87-page attack against
the Roman Catholic pri
mate, issued in 20,000 copies
is available for four zlotys
(16 cents).
It recites virtually every
charge ever raised against
the outspoken Cardinal and
declares that he 'signed the
1950 and 1956 church-state
agreements as a mere "tac
tical maneuver" and never
really modified his position
as "a bitter enemy of pro
gress ...afalsifierof
facts."
The church accused the
government of breaking the
1956 pact, which for a time
two per cent unemploy
ment, meaning that more
workers are looking for jobs
than are available.
Durable Goods
"Motor car sales have
fallen off." Blouet said, and
many durable consumer
goods have been depressed.
At the same time, large
plants such as the British
Motors Corporation have
been laying off large num
bers of workers, a situation
the labor unions dislike.
While Britain's economy
has grown "tremendously"
since World War II, Blouet
said that Britain's economy
has been of a cyclical na
ture requiring drastic "stop-and-go"
measures by the
government.
Efforts to Increase pro
ductivity in the long term
1 often become "overheated"
and bring about inflation,
after which short-t e r m
measures must be set up.
Wilson is taking such
short-term measures now to
strengthen the pound, Blou
et said. He added that Wil
son would probably put
stops on these measures be
fore they lead to "reces
sion, the polite term today
for depression."
Blouet charged that Brit
ain now has an "anti
quated" industrial system
and that any long range
British economy programs
should involve "moderniza
tion of industry from top to
bottom management to la
bor. He said that the economy
could be compared with
that of the United States,
with the problems being
Plagues (
GB Aids j
'" General Franco prefers
to have the matter dis
cussed in the United Na
tions where the current
t r e n d to decolonization!
would probably carry more
" weight than an ancient
treaty.
Two years ago Spain ac
cepted the recommendation
of the UN committee on
colonialism that Britain and
Spain seek settlement
through direct negotia
t i o n s. Several abortive
meetings have been held
this year. Technically the
negotiations are proceed
ing.) In November, Treasury
officials will discuss with
Gibraltar experts the capi
tal sum necessary to alle
viate the effects of Spanish
economic restrictions. The
etary aid also will be con
sidered. However it is known that
the people of Gibraltar do
not want to lose control of
their own affairs by becom
ing a grant-aided economy
on the traditional colonial
pattern.
They would prefer a lim
ited "bridging period" to
enable them to get the eco
nomy back on its own feet.
Aid to Gibraltar, White
ball spokesmen say, would
not be a "tremendous drain
on the British Exchequer."
Moreover, trading ar
rangements with Spain are
slightly in Britain's favor.
Britain's exports stand at
120 million pounds this
year, imports at 80 million
pounds. Tourism adds an
other 30 pounds to 40 mil
lion pounds to Spain's invi
sible exports.
Christian Science
Monitor
returned religious instruc
tion to the public schools.
Cardinal Wyszynski and
the Communist Party chief,
Wladyslaw Gomulka made
that agreement in Decem
ber, 1956, after both had re
turned from Stalinist-era ex
ile and arrest.
Jozef Siemek, a Commu
nist hard-liner on church
questions, is author of the
pamphlet called, "How
much longer, Cardinal?"
In a rare comment on Ro
man Catholic demonstra
tions May 8 in Krakow and
June 26 in Warsaw, the book
let says that "a certain
number of ardent believers
and a handful ... of teen
agers . . . chanted We for
give to the delight of (Ra
dio) Free Europe and the
West German revisionists."
The Christian Science
Monitor
merely more concentrated
in Britain.
"There's no end In sight"
to the British economy
problems, Blouet said. In
flation must be avoided and
and the pound kept stable
at the same time.
Domestic Investment
Britain is also having dif
ficulty encouraging domes
tic investment because of
of the lowered consum
er spending. Blouet said
that British membership in
the European Common
Market would open up new
areas to British goods, but
also expose Brisith industry
to more competition.
Blouet said that he thinks
Britain has found that the
country's overseas invest
ments are showing only
small returns, creating a
t Pf GREAT
Investments Fall In Britain:
Employment Faces Decline
Investment in British
manufacturing is falling
faster than the Board of
Trade has supposed, the
Confederation of British
Industry reports. Instead of
a reclining rate of 8 per
cent, the CBI suggests, 15
per cent is more likely.
In a CBI poll of business
men, 67 per cent now say
they are less optimistic
than they were four months
ago. Nearly 40 per cent re
port the trend of new orders
down already, and 35 per
cent more report that It is
just holding leveL The
prime problems now are in
seeing how to make both
investment and optimism
recover.
The Trades Union Con
gress declares itself
"shocked" at the rapid rise
of unemployment (although
the surge of the figures up
to nearly 450,000 is in part
due to union strike action
causing the laying off of
still-needed workers).
But the current level is
what the government ex
pects to be "normal" after
the squeeze is over.
Yet while productive in
vestment and employment
decline, bureaucracy is
growing (by some 25,000
new officials a year). Taxes
are growing. Government
expenditure is growing.
However, Prime Minister
Harold Wilson, answering
questions In Parliament,
declared that the govern
ment, having "released re
sources" now is having dis
cussions with Industry on
how the economy can best
be strengthened through in
vestment. Studies show that faster-
balance-of-payments prob
lem. Many American firms are
currently building facilities
and investing in Britain.
Blouet said that thi& might
help the balance of pay
ments. "American industries
tend to be more efficient
than home Industries,"
Blouet said, and this might
contribute to the moderniza
tion of British Industry.
Blouet said that the coun
trying to move workers out
of the "heavy" industries
such as coal and steel.
The American industrial
concerns in Britain might
raise natural "nationalis
tic" resentment, Blouet
said, but these industries
must still operate under the
incentives and limitations of
6
growing countries tend to
have higher investment ra
tios than others, get a high
er return on their invest
ments and enjoy higher
productivity.
The Department also
points out that Britain's po
sition vis-a-vis the United
States has worsened re
cently. New investment incen
tives are being discussed
with the utmost urgency.
The trouble however, is
that what is discouraging
businessmen from investing
is not lack of tax incentives
but lack of orders.
The CBI survey shows
that nearly 75 percent of
industrialists pinpoint this
lack of orders as the main
cause of falling output.
Another factor is that
investors are taking their
money out of stocks, which
represent a share in com
pany ownership, and going
into bonds instead, which
don't. They now prefer to
lend their money at the
current high interest rates
with less risk.
The truly urgent need,
if serious recession is to be
avoided, would appear to
be a gradual reflation of
the economy In which ex
ports are given priority.
But these high interest
rates and credit difficulties
by now are hampering ex
ports too. jand, as tht car
industry shows, a de
pressed home market can
add to costs which again
hampers exports.
Yet even mor serious per
haps is the gloomy mood
of industry. The Financial
Times, in its latest monthly
survey of industry, reports
"black pessimism" in
Britain's economy and gov
ernment. Blouet pointed out that
the Labour party uses a
"planned economy." The
Conservative Party, now
out of office, believes in ad- .
J 4 J 1 I t
iiivihii riiunniMU iiif vi iiii m.
plex economy. He said that'
1 1 - 1 -4
ueitucr ubs uecu Lumpicieij
successful In their policies."
The government has fro
zen prices and wages, and
the people are "just begin-
mug iu icei uie unc, ac
cording to Blouet. He pre
dicted that this freeze
would last at least a year, '
with no substantial raises'
in wages or prices.
uuring uie last iiiuinu in
Britain, prices have fallen
on the London stock ex
change and unemDlovment
rose 100,000 to 370,000..
ERITAItt
some high places. Invest
ment cuts may be bigger
"than can be justified on a
sober analysis of the eco
nomic outlook."
An unspoken echo of the
voice of President Roose
velt more than 30 years ago
is sensed in the British air,
"All we have to fear is
fear itself."
The Cnrlstaln Cclence
Monitor
Erhard Confers
With CDP Heads
Bonn Germany (Chan
cellor Ludwig Erhard told
party leaders Wednesday
he would quit if he could
take part in all discussions
on his successor, an in
formed source said.
It was not made clear
when he would be ready to
resign.
Erhard spoke at a closed
door meeting of Christian
Democratic party chiefs in
parliament. It has been
widely reported that he
would favor Foreip Minis
ter Gerhard Schroeder to
succeed him if he had to
go.
The source said Erhard
stressed the importance of
continuity in policy and al
so made it a condition of
his resignation that be take
part in the formation of his
successor's policy.
The informant reported
that top party leaders had
already agreed to press Er
hard to quit. This decision
was said to have been made
at an earlier meeting of the
party's top leadership a
group of 11 men.
The Lincoln Journal