Evening star., 1962-09-30

eliminate tariffs on wide variety
Of products. The idea is to enable
this country to participate more
fully in the world trade move
ment to unite the free world more
closely against the Communist
bloc. The bill was substantially
as requested by the administration.
One major change AN unwel-
come one-saw the House Ways
and Means Committee inserting
into the bill a provision which
would deny the economic benefits
of most favored nation" status
to Poland and Yugoslavia on the
grounds they are Soviet satellites.
The administration policy is to
treat them as not part Of the
Soviet bloc in the hope that this
would contribute to their actually
being able to maintain independ-
ence from the bloc. The Senate
knocked this proviso out Of the
bill but the House conferees in
sisted and got 1t back in. The
Senators gave In. Apparently the
administration felt it would be
better to keep the paragraph
than 10 run the risk Of having
the whole question opened up
again at this time.
Back OF. the bill, called the most
important long-range legislation
Of the session. lies the likelihood
that some United States indus
tries and workers viii be hurt by
foreign goods flowing more freely
into this country under lower Inn
port duties. The administration
sought-and got-a power never
before granted to a President, the
power to provide Government as
sistance to those injured by the
competition.
FOREIGN AID The House cut
the administrations SAT billion
bill for aid to foreign countries to
help them resist internal subver-
sion and Communist takeover and
for their general economic health.
The figure, as it came from the
House, was $3.6 billion. The Pres
ident Immediately issued Q new
appeal, pointing out that: This
way we can defeat communism.
The Senate was expected to re-
store some Of the cut. Estimates
said about $500 million was q
likely figure. The possibility Of q
fight existed; some Senators were
complaining that they were tired
Of the House always passing to
the Senate the burden Of ''restor-
ing" foreign aid cuts, thereby
branding them as the spenders.
The Senate Appropriations Com
mittee then voted $793. .400, 900
back into the bill. This is about
10 per cent of the funds which
the House had slashed.
TAX REVISION = Agreement
was reached by House and Senate
conferees on the highly contro-
versial tax revision bill which has
been in dispute since the session
began. The administrations plans
for q Z per cent reduction to en-
courage investment by industries
to bolster the economy was in the
bill. The equally sought provisions
for Federal income tax withhold
ing on dividends and interest were
lost completely as the bill
emerged. In its place was q re-
quirement to report interest and
dividend money to the Govern
ment. Moves to eliminate expense
account abuses in income tax
payments resulted In compro-
misses. Over all, the changes in
the tax laws are expected to bring
in about $100 million more for
the Government figure sub
stantially less than the Treasury
originally foresaw.
FARM-This one, too, was q
respectable victory for the admin
istration. Action was completed on
Tuesday and the measure went to
the President. The bill imposes
stiff controls on wheat in 1864. an
adaptation of the 1862 program
Of controls for 1868. offering
higher price supports and COM
pensatory payments to farmers
who reduce their output. The feed
grain (corn, sorghums and bar
ley) program is continued for an
other year. The administration
had asked for strong controls on
this also.
DRUGS-The Senate in August
passed-by a vote Of rs to Ga
bill to strengthen control Of
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