davidaulloa/AmericanStories huggingface dataset:
Evening star., 1953-06-21

Gus that there are adjustments to
be made not only In individual busi-
ness but in the economy as whole.
These adjustments, however, GER
tainly would seem in no sense to
portend recession or depression Of
severe proportions"
Economists argue over the ability
of the civilian markets to make up
the gap that declines in Government
spending would leave. Statistics
point in every direction.
Beorish Foctors
On the bearish side are these
facts:
. Agricultural prices are skidding
so farmers may be spending less.
. Consumers already owe more on
their charge accounts than ever be-
fore, indicating their future buying
power might be curtailed.
. Department store sales are unin-
Spired.
. Sales of television sets and some
other electrical appliances may be
slowing.
. Home building shows dangers Of
slipping.
. Automobile production is BOOM
ing, used cars are selling only at
knocked-down prices. This sluggish
ness could spread to the new-car
market with effects on steel, rubber
and other industries.
BulIish Foctors
On the bullish side is the fact
that businessmen plan to put up
new plants at q surprising rate.
Industrial building was expected to
fall OF at midyear, but now the
trend is at least sideways. and may
be up through September.
Millions of Americans have bank
accounts and other liquid savings
that could encourage them to
spend when they think the time
and price-are right.
Consumer prices remain near the
all-time high, and there's not much
prospect Of q real decline In price
tags on necessities. Even II agri-
cultural prices continue downward
and Q Korean truce could speed
the decline only q small part Of
the drop would be passing along 10
Evening star., 1953-06-21
By John B. Spore

Associate Editor. Combat forces Journal
extend this period. Rotation will be
slower. The required length of serv-
ice in Korea is unpredictable at this
time; there are too many variableS
and unknown factors. For example,
the truce agreement provides that
$4,000 men can be rotated each
month. This will be for all of the
U. N. forces (including air elements).
United States forces make up only
about Is per cent Of the strength
Of the 9th Army. The ROK
forces, which make up so per cent,
could create havoc with that 35, 900.
man rotation figure If their govern
ment were so inclined. The attitude
of the Turkish, Greek. British Com
monwealth and other troops (they
make. up the remaining Is per cent
Of the strength of the 9th Army
is unknown. But what their govern
ments do could also affect the United
States rotation rate.
Monpower Changes
The difficulties that a prolonged
truce will create for the services
are not confined to Korea. For
the Army, most of the problems
will be with manpower.
It may not be as difficult to keep
the Korean manpower pipeline filled
If men are no longer being killed
or wounded. and If the period Of
duty in Korea is heightened. But
to Offset these advantages, there
loom the cuts in military strength
the Eisenhower administration
plans. The new Army budget has
provision cutting the Army's
strength by an additional $4,000
men If the Korean shooting stops.
Evening star., 1953-06-21

OTTAWA. - Lester B. mike"
Pearson. Canada's Secretary Of
State for External Affairs and preSi-
dent Of the United Nations General
Assembly, remarked the other day
that few q. N. countries would back
q policy that would treat Asian
communism "aS an implacable foe.
bound hand and foot to Moscow" to
be destroyed when it comes to
power. to be kept from power at
the risk Of war, or to be opposed
by encouraging "any regime"
That counsel, In speech at Har-
ward University commencement, was
taken by many in America as q
warning that Canada would use its
influence to temper the hot United
States revulsion against Asian COM
muniSm.
New Tolent
Thus Mr.. Pearson, former Ambas-
sador to the United States from
Canada, re-emphasized the new Ca
madam talent for compromise. now
emerging as perhaps his country's
greatest contribution to Western
unity and world peace.
The ability to compromise Is bred
into the marrow Of Canadians. It
hac to be, for the Canadian nation
itself is a never-ending series Of
compromise between its English and
French-speaking citizens.
To build q unified country, Cana
dianS have had to compromise, be-
tween their own different cultures,
between their interests as q unit Of
the British commonwealth and as
the close neighbor and best friend
of the United States, and even with
their climate and geography.
Canadian statesmen are applying
their techniQues Of compromise in
the field Of international relations.
and nowhere more earnestly than in
smoothing the rufleS which oc-
casionally develop IN Anglo-Amer-
lean relations.
You don't hear much about their
efforts because they flnd that in
formal talks with the Americans and
the English are most effective with
out publicity. But surprising num-
ber Of international problems during
the last few years have melted into
agreements because Canadians like
Foreign Minister Pearson and Prime
Minister Louis st. Laurent helped
reconcile conflicting viewpoints.
For instance, qualified sources tell
me there would have been no agree
ment on the partition of Palestine
If it hadn't been for Mr.. Pearson.
The Americans considered the Brit
iSh withdrawal Of forces from Pales-
Evening star., 1953-06-21

France have been somewhat less
than sold on the fire. eating Korean
President. They have seriously
questioned the wisdom of the
United States lending a sympathetic
hand to maintain him in power.
American reaction to Mr.. Rhee's
latest antics is likely to draw the
allies closer together on the question
Of future relations with the regime.
At this point the feeling is that
President Rhee. by freeing some
$4,000 anti-C Communist war prison.
ers. may have strengthened his
own political position in Korea.
But at the same time he has seri-
ously jeopardized the economic and
military support that the allies may
be willing to offer him in the critical
postwar years.
Europe's Changing Foee
In spite Of the seriousness Of the
Korean crisis. however, the major
reorientation of American-and Big
Three-thinking must be directed
Evening star., 1953-06-21

This is in addition to the 10000
man cut the Ike budget has already
planned for the Army. The Marine
Corps will also be cut in the event
Of truce.
A Department of Defense memo
randum for the press gives the
following rundown of strengths of
the services:
Evening star., 1953-06-21

To meet these reduced strengths,
only the Army will have to call on
selective service to fill its needs.
But whether the drop will be con-
tinued is question. A draftee
makes a good soldier when he can
see a need for his service. It takes
singularly objective individual,
however, to be content about being
drafted when there isn't any shoot
ing going on. This was true in 1948,
when the draft was reinstituted for
a few months. And it has been true,
in part, during the Korean conflict,
because of the widespread puzzle
ment and disagreement over why
we were in Korea and what our OBJ
jectives were. Despite all the fine
and brave words these days about
the need for retaining our strength
in Korea until the Far East ques-
tionS are settled, it would be q rash
and not very well-informed man
Evening star., 1953-06-21
New Developments in Korea Germany Copicote Big Talks

Of such an offer would be sure to
increase the pressure in East Ger.
many and add to the woes that the
Russians already face.
Another issue which may well ba
revived in the course of the Ber-
muda talks is the advantage of q
sharply stepped-up propaganda of
fenSive aimed at creating similar
outbreaks among the satellite ma
tionS. Certainly, In this country at
least, there has been tendency to
look on the Berlin riots as vindica-
ton Of the EiSenhower-Dulles thesis
that the West should encourage the
spirit Of liberation wherever it ex-
lists. Up to this point this thesis
has met with chilly reception from
our allies. The argument has been
that such an effort, If successful,
would lead only to futile bloodshed
and further compromise the pos
Sibility Of arriving eventually at Q
peaceful settlement with the Soviet
Union.
Four-Power Conference?
This, in turn. brings up the final
question which must be re-evaluated
by Western StrategiStS before they
pack their bags for Bermuda. Does
what happened in Berlin affect our
present opposition to q four-power
conference in the near future?
The issue, of course. involves the
whole field Of Western strategy, in.
cluding the future of Germany. the
Russian satellite states and the
Far East. From the American point
of view, the question can be argued
and is being argued-both ways.
On the one hand, there are
those who say that If there is any
hope Of arriving at favorable set
tlement with Russia. now Is the time
to find out. The Berlin riots, they
contend, have shown up an unex-
pected weakness in the Russian
regime. They have proved that
their control Of the situation, par
ticularly in their Eastern border
states. is uncertain. The Berlin in
cident has knocked them of their
political balance and badly shaken
their self confidence. The chance
that they will be willing to talk
turkey on outstanding cold-war is
sues. say the enthusiasts, is brighter
today than at any time since the
war. ...
Another Viewpoint
Others. arguing from the same set
OF facts, come up with quite diff
ferent conclusion. An offer from
the West for a four power confer
ence at this point. they say, would
nullify the advantage which the
West has gained and actually serve
to strengthen RuSsia'S position in
Eastern Europe. The argument Is
that no deal with the Russians
would be possible which did not at
least include approval of Russia's
hold on it's satellites.
On balance, 1t seems unlikely
that American strategists will look
more kindly on Sir Winston Church.
ills cherished hope of an early
huddle with Russian Premier Ma
lenkov. Apart from the question Of
what Solid value such conference
would have. there remains the prob
lem Of its psychological impact. It
Is felt that a, four-power conference
would add immeasllrably to the al
ready serious effects of the Russian
peace offensive At a critical stage
in the Western rearmament effort.
it would give official sanction to
wishful thinking at home and
abroad and encourage the all-too-
prevalent feeling that the time to
relax was at hand.
Evening star., 1953-06-21
By jones E. Roper

A truce In Korea almost certainly
will cause American economic ac-
tivity to dip. How far the slide goes
will depend partly on you.
When the Korean war began, in
flation psychology caused economic
activity-and priceS-to skyrocket.
AS the war apparently nears an end,
a psychology of gloom could drag
the country into q recession or full
blown depression.
Administration economists don't
expect that to happen. What they
expect, they say, is q "readjust-
ment." This is the new-style name
for an economic downturn that Is
milder than even a recession.
The readjustment would result
from cutbackS in Government
spending and from descriptions that
some segmentS Of business will Suf-
fer as they put more emphasis on
civilian markets and less on military
markets.
MiIitOY Spending Cuts
Reductions in military spending
probably will be significant, but not
as large as might be expected at
flrst glance. Some estimates are
that the Korean war has been cost
ing the United States IS billion Q
year. But II peace comes, we won't
save all Of that money-perhaps
barely 81 billion.
Much Of this saving will come
because the United States armed
forces won't shoot 30 much ammuni-
ton or break up as many aircraft
and tanks. The United States, how
ever, may step up economic aid to
Korea and keep large military gar
riSonS in the Far East. Then, too,
some Of Americas heaviest military
spending Is just ahead-for aircraft
ordered long ago, but only now hit
ting production peaks.
Some authorities say Americas
direct saving on the end Of the
Korean war represents little more
than the tip Of the overall defense
bill. An easier international situa-
ton, however, could ease some other
defense expenditures, encourage cut
backs in foreign economic aid and
speed Republican economies in Gov
ernment operations generally.
On balance, therefore, Govern
ment spending is sure to decline
after a Korean truce. How much
this will be, nobody in Washington
can say for sure.
Undersecretary Of Commerce WAL
ter Williams tries to measure the
defense cut-back this way: About
IS per cent of the gross national
product now goes to defense: after
a Korean truce, the figure may drop
to 10 per cent or per cent or even
8 per cent.
This is substantial. But compare
1t with World War II experience.
In 1914, some a per cent Of the
national effort went for defense.
This dropped to z per cent by 1916.
No depression resulted. The slack
was made up quickly when industry
shifted to fulfilling pent-up con-
sumer demands.
After a Korean truce, a quicken
Ing Of the civilian economy again
must make up for the loss Of Gov
ernment spending. This is where
you come in.
Psychological Foctor
The administration hopes con-
SumerS and businessmen keep their
spending on an even keel. II indi-
viduals or corporations become
frightened by a dip in the economy,
they well might start holding onto
their money. They could do this
out Of fear Of the future or out of
the expectation that prices will 60
lower.
Business and jobs depend not 30
much on the existence Of money,
but on the now Of money. Once
that flow Is halted. business stalls
and jobs disappear. That causes
Evening star., 1953-06-21

24B,0 1900 $50, ,000 5,000
s.5is, 900 i65. 600 5,555, 600 5000
Evening star., 1953-04-25
Strike on Nickel Plate
Is Cancelled Again
BY the A,soeiahad Rra,s

CLEVELAND. April 25.-The
Brotherhood Of Railroad Train
men today Cancelled a strike Of
1900 members against the Nickel
Plate Road and its Wheeling &
Lake Erie Division. It was the
second time in a month the
strike had been called of.
Last midnight, six hours be-
fore the strike deadline, Com
mon Pleas Judge Adrian D. New
comb issued a temporary in
junction restraining the walkout.
It would have left idle 10000 en-
ployes of the 2,200-mile rail
system operating in Ohio. In
diana, Illinois. Pennsylvania and
New York.
w. E. B. Chase Of Detroit.
BRIT vice president, telephoned
and telegraphed local officers to
call of the strike, pending a
hearing on Judge Newcomb's
order Tuesday morning.
The order declared the BRIT
could not lawfully cause a work
stoppage until 80 days after an
emergency board appointed by
President Eisenhower makes its
recommendations. The restraint
said this delay was required by
the Railway Labor Act and that
q strike would violate the broth
erhood'S contract with the rail-
road.
Evening star., 1953-04-25
Constantine Brown:

Admiral Arthur w. Radford,
commander of the Pacific
Fleet, was ordered to Indo-
China to make an on-the-spot
survey Of the explosive Situa-
ton which has developed there
since the Wet Mini invaded
Laos. He reached Saigon yes
terday and will go to Hanoi
today for talks with the French
commander, Gen. Raoul Salau.
Large quantities of hard
ware - tanks, guns, ammuni-
tion-and also planes are be-
ing rushed from the Pacific
Coast to French Indo-Chinese
ports. But it Is feared that
they may not arrive in time
to make much difference to
the future of the Laotian
kingdom, which was attacked
two weeks ago by the Commu-
mist forces Of Ho Chi Mini.
From the meager reports avail
able, it appears that Russian
and Chinese senior officers are
in charge Of the strategy Of
the Wet Mini forces.
Neither Washington nor
Paris attempts to hide the
gravity of the situation.
This is no longer a case Of
the enemy trying to grab some
more Viet-Nam territory to
make his way toward the sea-
ports.
The conquest of Laos -
which the Communists have
already declared a peoples
republic c"-means a direct and
immediate threat to Thailand
and an increased danger to the
already shaky Burmese re-
public.
The French have been
caught by surprise. They con-
centrated the best and largest
defense forces to protect Wet
Nam and paid little attention
to the more remote Indo-
Chinese areas. The approach
ing monsoon season, with its
torrential rains, will make mil
itary operations in the noun
tains and jungles of Laos diff
ficult, particularly for West
ern troops. The optimistic
evaluation Of overall condi-
tions and poor intelligence in
the Laos area resulted in a
Evening star., 1953-04-25
Bus Stoned in Strike,
Delaware Seizes 3
BY the Assoeioied Press

SELBYVILLE, Del, April IS.
Trouble at the struck H. & H.
Poultry Co. here yesterday led
to arrest of three CIO leaders
and 80 workers on charges Of
melting to riot.
Delaware State police and
Selbyville officers said the 33
were arrested after a company
bus was stoned and several win
dows broken.
The strike by the CIO Team
sters and Poultry Workers Union
is in it's second month. The
union asks a 17-cent increase in
the 83-cent basic hourly wage.
guarantee of at least 80 hours Of
work a week. improved vacation
allowances and other fringe ben
efits.
H. & H., whose normal force
is about 800. said it was contin-
uing operations at almost full
strength.
The three union leaders ar
rested were booked as Herbert
jenkins. business agent for Lo-
cal 262; Daniel H. Klein and
Frank Smith.
Bail for the SO was set at $500
each.
Evening star., 1953-04-25
GrunewaId Excused;
Talks Lot but Says
Little, Prober Finds
BY the Assoeiated Pres.

Henry w. Grunewald had a
respite today from his quizzing
by House tax fraud investigators,
who seemed to feel they got
many words but little informa-
ton.
He talks a lot but never says
very much" commented Repre-
sentative Boggs. Democrat. of
Louisiana, a member of the Ways
and Means subcommittee study
ing Grunewald's connections in
high places.
Chairman Kean commented
unfortunately Mr.. Grunewald's S
memory becomes faulty when
ever a vital point is approached. J"
HoarSe but still talkative, the
60-year-old Washington mystery
man was excused indefinitely
yesterday after two weeks of ses-
sions with the subcommittee.
Not Through With Him.
Mr. hean SAID the committee
won't call him back for at least a
week-"but we aren't through
with him."
Yesterday. Grunewald pro-
tested he recalled nothing about
alleged conferences with high
tax officials concerning efforts to
cancel a 81 million jeopardy tax
assessment against Hyman Har-
vey Klein. former Baltimore
liquor dealer.
He acknowledged knowing the
principal figures in the commit
tee investigation of purported
$500,000 shakedown attempt
against Abraham Teitelbaum,
Chicago lawyer. But he dis
claimed any knowledge of the
alleged incident.
And he said he lunched with
screen actress Dorothy Lamour
and her husband, William How
ard, just to meet "some celebri-
ties"-not because they had an
income tax case pending in the
Internal Revenue Bureau.
Grunewald said he attended
Evening star., 1953-04-25

the lunch in February. 1850.
along with the Howards, Attor-
ney Leo Dorsey, Charles Oil
phant. former general counsel Of
the Revenue Bureau, and former
Revenue Commissioner George
Schoeneman. He said he was
invited by Mr.. Oliphant.
Committee Counsel John E.
Tobin read from bureau records
showing Grunewald and Mr..
Howard later the same day con-
ferred with Mr.. Oliphant in his
Office. followed by another con-
ference in Mr.. Schoeneman'S
Office.
Grunewald replied Indignantly.
II should say not" when asked
if Mr.. Howard paid him a fee.
AS to the bureau visits, he said:
II won't deny anything. To
the best of my recollection I
was never with Mr.. Howard in
Oliphant's or Schoeneman'S
Office"
Klein, Nathan, Master.
Grune wald acknowledged
knowing the two men named by
Mr.. Teitelbaum as trying to
shake him down for $500, ,0O0-
Frank Nathan and Burt Master,
both of Miami. Master and Ma
than have denied Mr.. Teitel-
baum's charge that they sought
$500.000 to keep him out of tax
troubles.
Grunewald said he spoke to Mr..
Oliphant about the Teitelbaum
case but insisted this was only
to caution of grapevine" talk of
a fix.
Senator Bridges, Republican,
of New Hampshire, whose name
has been mentioned during the
Subcommittee'S hearings, de-
clared last night he had exerted
no pressure on the Revenue
Bureau in tax cases.
OF testimony that he had in
quired about Mr.. Klein's 81 mil
lion tax case, Senator Bridges
said on a radio panel, II don't
want to serve in the United
States Senate If you can't call
up a department and make in
quiry :"
Evening star., 1953-04-25
One More Department Of State
Government Reorgonzers Would Set Up One in the Name
Of Propaganda; With McCorthy's, That Makes Three

ment, foreign policy is en-
trusted to the State Depart
ment.
That will continue to be
true, it is explained. The old,
established department will
still do the high thinking and
occasionally make major pro-
nouncements, but the grubby
daily job Of making friends
and influencing people in for
eign lands will be given to a
new and separate agency.
There will be no conflict, it is
said. One will operate in an
ivory tower and the other on
a somewhat lower level.
If there is now some confu-
sion in our Foreign Service, as
is sometimes alleged. it is hard
to think Of a surer way of
compounding it.
Willy-nilly. If this proposal
Is carried out, instead of hav-
ing one State Department we
will have two-or three, if you
count Joe McCarthy's. Half
the time, no matter what CO.
ordinating machinery is de-
vised, the right hand will not
know what either of the left
hands is doing. That will pro-
vide ideal conditions for buck
passing, but not for effective
presentation Of our case to
the world.
If you owned a big store
you wouldn't make the ad-
vertising department an in
dependent agency free to
promote what 1t pleased. You
wouldn't leave it to your de-
livery service to deliver what
it desired or, perhaps, to
Evening star., 1953-04-25
Laos roubIe Has West Worried
Neither Washington Nor Paris Attempts to Hide Gravity
Of Dangerous Threat to Burma and Thoiond

In view of the Red trickery
and the threat to those two
still-free countries, an effort
to reorganize the Nationalist
guerrillas might have been a
more expedient policy.
The State Department was
worried, however, that the
Reds would implicate us in this
affair-as they actually did
and preferred to ioin the other
U. N. members in requesting
the evacuation of the men who
had been pin-pricking the Chi
nese Communists for more
than three years. We have
thus proved our international
honesty. But this fact may
result in the Thailand and
Burmese governments losing
repeatedly well-equipped and
bitterly ti-Communist guer-
rillas who could have fought
on their side. Freebooters are
unreliable and switch from one
side to the other, depending
on who pays best. And we
could have provided the neces-
sary funds.
Politically, the invasion Of
Laos adds another heavy cloud
to the international situation
and should show the peace
offensive launched by the
Kremlin in its true light. The
Wet Mini leader, Ho Chi
Mini. is only a "second-class"
puppet. All his moves are
directed and controlled by a
staff of Chinese and Russian
advisers. He has been able
to mobilize men, but their
equipment and supplies de-
pend entirely on what is sent
to them from China. It is
only with this support that he
has been able to push the
French in Viet-Nam to the sea.
The arms captured from the
Wet Mini in recent engage
ments show that they were
of Russian type manufactured
in Chinese arsenalS. Thus,
had the men in Moscow and
Peiping intended to terminate
the present world conflict by
an equitable understanding
with the Western powers, they
would not have precipitated
at this time a new aggression
in one of the most strategic
sections of Southeast Asia.