Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-01-02
Eisenhower HoIts ar Benefits
For New GIs After January 81;
Billions in Savings Predicted
Korea Emergency
Isn't Ended BY
Decree. However
BY GcFnett D. Homer
Star sioH censspondpni

Z ( ~ .h 4
AUGUSTA. Ca, Jan. i.--rres-
ident Eisenhower decreed today
that any one entering the armed
forces after January 81 will not
be eligible for various special
wartime veterans benefits.
he set that cutoff date In .
proclamation which aides said
win eventually save the Govern
ment billions Of dollars. although
the savings are not expected TO
become apparent for some years.
special benefits authorized
since lighting started In Korea
ia 1850 are cut on only for those
entering service after this month.
Those already In service before
February / win not lose their
rights to the special benefits.
They will be able to use them,
although time limits for cashing
Ia on certain benefits win start
running out February ] even for
these veterans.
Doesn't End Emergency.
The proclamation signed BY
the President today. q statement
from the Little white House here
pointed out. does not end the
state Of national emergency pro-
claimed BY former President Tru-
man In 1850 in connection with
the Korean conflict.
White House Press Secretary
James c. Hagerty told reporters
that to proclaim an end Of the
national emergency would involve
o lot Of other steps which the
President is not ready 70 take.
His authority for certain stock
piiing and defense mobilization
measures. among other things,
depends on the national einer-
gency proclamation.
Veterans benefits affected By
Gen. Eisenhower's action today
include those provided In the
so-cailed Korean CT bill grant
ing education and training al
loWances and Federal loan az
sistance In acquiring homes,
farms and businesses.
i Others involve n0ll-service-
connected pensions. higher pay
and disqualification rights based
on "war veteran" status.
Tax Exemption TO End.
The President also issued an
executive order fixing January
81 as the termination date for
tax exemption on the pay Of mil
itary personnel In the Korean
combat zone.
His action does not impair So
called peace-tirne veterans benz
efits, the White House statement
emphasized. These include hos
pital and medical care, disability
and death compensation, the
$4,000 indemnity insurance. dis
ability or other retirement pay,
and the six months death gratu-
ity.
Special benefits in addition to
these were granted after the Ko-
rean conflict began In June, 1850,
TO provide Korean veterans with
benefits similar to those given
World War II veterans.
EFT has been about q year and
ahalf since the Korean armistice
agreement became effective"
the White House noted In its
statement explaining the proc
lamation. Accordingly, consist
ent with the intent Of the laws.
the Presidents action has ter
minated the service period which
conferred eligibility for these
BENEFITS.
"This action Is in keeping with
the long-estahlished practice
whereby the Congress has limited
entitlement to wartime veterans
benefits to periods Of military
service associated with hostil-
ities.s
Mr.. Hagerty said there was no
way to estimate now the savings
that would result from the CUT
off Of the special benefits.
But, as one example. he said.
the Veterans Administration es-
Inmates that the Governments
liability for GI education and
training benefits increase BY
about $45 milton every month
while the program remains in
effect.
4 A detailed review Of the effects
OF the Presidents action was
released along with his proclanla-
ton. The Little White House
lSee VETERANS, Page Al