Evening star., 1951-07-01
3 Leading Senators
Say Cease-Fire Won't
Affect Program
By J. A. OLeoy

A Korean armiStice would have
little if any effect on the program
still confronting this session of
Congress, in the opinion of in
fluential members of both major
parties.
Chairman Taft of the Senate
Republican Policy Committee,
Senator George, Democrat, of
Georgia, and Senator Ferguson,
Republican. of Michigan. shared
this view yesterday.
Il don't see much reason to
think it would change the fiscal
situation, for the next six months
at least" Senator Taft said.
The Ohioan said that, under a
cease-flre with peace negotiations
to follow, the United States prob
ably would keep troops in Korea
for sometime, which in itself
would entail expense.
Production Would Continue.
He assumed it would slow down
the shipment of weapons and
munitions to that area, but not
the production of defense items in
this country.
"At the close of World War III
spending went on for about six
months" Senator Taft recalled.
Several Senators agreed that an
armistice would produce some
psychological effect in the direc-
ton of showdown. Senator Taft
said the administration is trying
to combat that now. and properly
So" The main thing, he added, is
not to slow up on the military
program.
Senator George, who has charge
of the new 81 billion tax bill rec
entity passed by the House, said a
ceaSe-fire arrangement in Korea /
would not have much effect on
that measure.
Wouldn't Change Needs.
IT don't think it would change
actually, or substantially, the need
for defense or the proper f1nanc-
ing of the whole program" said
Senator George.
The Finance Committee, of
which he is chairman, will resume
hearings tomorrow morning on
the administrations request to
boost the tax bill from ST to $40
billion. Eric Johnston, admins
TRAITOR of the Economic Stabiliza-
tion Agency, will be the next
witness, followed by Mobilization
Director Charles E. Wilson.
The committee wants to get
from these two officials an overall
view of the economic outlook for
the next year or two for the guild
ance of the Senate in determining
how much of new tax load can
be imposed safely at this time.
Sees Budget Unaffected.
Senator Ferguson. a member of
the Appropriations Committee,
said he does not think an arrange
ment to stop the shooting in
Korea would effect the $50 billion :
defense budget still awaiting ac-
ton by both Houses. He said his :
information is that this figure
when submitted did not include
the expenses of the Korean war {
for the new fiscal year, which S
starts today. II
If the fighting in Korea goes on
for a substantial part of the new
fiscal year, Senator Ferguson said,
there would be a supplemental t
budget later to replace the sup u
plies and equipment being used up t
now out of stocks on hand. He as t
sumed, therefore, that a cease fire i
arrangement now might avoid or e
reduce the size of the supplemental {
defense estimates, but he does not T
think the administration would
want to reduce the pending $50 =
billion figure on the strength of a ,
ceaSe-flre agreement. !;
Commenting on the current eff :.
forts to arrange an armistice, :
Senator Ferguson said:
II don't like to see us treat light l.
ly any proposal for peace, but I
don't like to see us weaken our >
selves to the world by seeming to I
grasp at straws for any kind of
peace" n
The Michigan Republican said a.,
he is inclined to believe an armis- q.
tice would lessen the need for eco
ionic controls, on the theory that
during a war people spend more.
Both the House and Senate will '
consider only minor measures until q
after July 4. but thereafter they s
will be busy for the rest of the ,
summer on the accumulation of
bills dealing with appropriations,
foreign aid, taxes and a new price, I
wage and rent control bill to fol- 7
low the temporary July extension ,
of existing controls.