davidaulloa/AmericanStories huggingface dataset:
Evening star., 1963-05-19

diplomat will have any useful
work to do in Yugoslavia for
a long time to come.
The threat which is so much
on everyone's mind here is the
result of one of those curious
alterations that sometimes
finds its way into the conduct
of American foreign policy.
Specifically. it results from
an act Of Congress last sum-
mer. In passing the Trade Ex-
pansion Act of 1862, the House
tackled on an amendment in
structing the President to deny
as soon as practicable what is
known as the most favored ma
ton treatment in trading with
any country dominated or
C controlled d by communism"
The effect would be to deny
normal trade benefits accorded
in the past to Yugoslavia and
Poland.
To denounce the o. present
trade arrangements with Pol
and and Yugoslavia requires
first that a years notice be
given. Before doing this. how
ever, the administration has
asked Congress to reconsider
its decision. AS a part of the
current foreign aid bill sent to
Congress last month, President
Kennedy has asked for broad
discretionary powers in grant,
ing or Withholding trade bene-
fits.
Motives Unclear
Whether or not this request
is granted, it is by no means
clear what prompted this par
ticular piece of congressional
toughnesS at this particular
time.
Our political relations with
Yugoslavia and Poland have
had a number of ups and
downs. In the case of Yugo-
slavia, the neutralist confer
ence in 1861 and the trip of
President Tito to the Soviet
Union last winter have marked
the most recent low points. 1t
may well be, however, that it
was a feeling of Illustration
over Cuba, rather than any
thing in our relations with the
countries concerned, that did
the damage.
At any rate. in the eyes of
the State Department, the ac-
ton of Congress makes curl
Gus logic. INSTRUMENTATION
treatment" is, of course, n most
unfortunate phrase. What it
implies is that Yugoslavia is
favored above all other nations.
What it really means is that
Yugoslavia is not arbitrarily
Disseminated against in trade
agreements. And that the tariff
on any particular item of trade
is no higher than that which
applies to our moSt-favored
trading partner.
The most favored nation
treatment is granted by the
United States to all trading
nations except for those of the
Soviet bloc and China. 1t Is
not a piece of peculiar Ameri-
can generosity but the uni
versal rule of world trade.
Dates to 1881 Treaty
In the case of trade between
Yugoslavia and the United
States, it dates back to a treaty
signed in 1881. At our own in
sistence it was never with
drawn even between i945 and
l948 when Yugoslavia was con-
Sidered one of the most COM
Evening star., 1963-05-19

any standard Yugoslavia is
still the most economically
promising of any Of the Com
munist nations.
American aid played an i'm
portant part in this dramatic
recovery. In the early postwar
years 1t was perhaps decisive.
But it is important to empha-
size how little American aid is
involved in the picture today
And what a negligible part 1t
plays in the controversy be-
tween the administration and
Congress on the issue Of trade
relations with Yugoslavia.
The American aid program
first reached significant pro-
portions in the early 1950s with
large-scale shipments Of food
and raw materials. In the same
period from 1850 to 1857 there
was a military aid program
amounting to almost $500 mil
lion before it was terminated
at Yugoslavia's request five
years ago. Since then the
country has been buying its
own military equipment.
Mostly Loans and Credit
In later years, American aid
has consisted largely Of indus
trial loans, extension of credit
- along with a number of
other Western countries-to fl
nance the currency reform.
and a technical assistance and
training program.
Today all Of these programs
are in the process of being
terminated. The American aid
mission in Yugoslavia is wind
ing up projects for which funds
were appropriated in earlier
years or putting existing pro-
grams, such as technical train
ing, on a paying basis. The
only exception is the sale of
surplus wheat, cotton and oils
which is continuing under the
Food for Peace program. And
even this the Yugoslav govern-
ment hopes will be unnecessary
after another year or so.
AS outside aid has diminished
in Importance, Yugoslavia' s
foreign trade has become in
creasingly vital to the continu-
ing growth and development of
the country. AS a large-scale
importer Of industrial raw ma
terials the most strenuous
efforts have been called for to
keep foreign exchange-ear
exports in reasonable balance.
The effort has not been easy
or always successful and the
margin between success and
failure remains small.
In this respect, Yugoslavia's
trade with the United States is
of prime Importance. Though
representing less than 10 per
cent Of the country'S overall
trade, the United States in
1862 was the leading exporter
to Yugoslavia and the third
largest market for Yugoslav
goods. This trade, further
more, has been expanding
rapidly, rising from $39 million
in 1861 to $50 million last year,
with a goal of $50 million in
Evening star., 1963-05-19

was again somewhat modified
by KhruShchev's "reconcilia-
ton" with Tito five years later,
this in no way implied a return
to a dependence on the Soviet
bloc in either the economic or
political field.
Today, between rs and 80
per cent of Yugoslavia's trade
is with non-Communist ma
tions. About so per cent is with
Western Europe and the United
States, the rest divided among
the "uncommitted countries"
Of Asia and Africa.
In the meantime, Yugoslavia
has been making strenuous eff
forts to adjust its foreign trade
system to mesh with trade
practices Of the Western world,
including a drastic currency re-
form and the virtual scrapping
OF the state monopoly system
common to most Communist
countries. Beyond this, it par
ticipates in several committees
Of the DECD and has provis-
ional status in the General
Agreement on Tariffs and
Trade. Yugoslavia's hope'of be-
coming a contractual member
Of the latter organization by
1865 implies a further impor-
tant liberalization of its entire
economic system.
In fact, as an "uncommitted
nation" itself, Yugoslavia'S 4
trade with the Eastern bloc Il
considered by most experts tC
be abnormally low. It is in.
creasing slowly and can be ex.
pected to continue to do so a.
industrial goods replace agri.
cultural products as staple ex.
ports. From the American point
of view, an increasing trade
and contact with the East is
no bad thing, since it increases
the political influence and at
traction which Yugoslavia is
able to exert on the Commu-
mist bloc es a whole.
Success Story
This attraction and influ-
ence are already considerable.
On the political side the Yugo-
slav experience-including the
break and reconciliation with
RuSSia-has already had a pro-
found effect on the organize
ton of the satellite system and
even on the development Of the
Soviet Union itself. On the eco
nomic plane it represents q
success story that inevitably
makes all other Communist
nations sit up and take notice.
In brief, the story is that
startin8 from a wretched base
in 1850 Yugoslavia's rate of
economic development has
been among the highest in the
world, matched only in terms
Of absolute growth by Japan.
During the late SOS this rate
reached the phenomenal figure
Of IA per cent annual increase
Of gross national product. In
the last two years, partly
owing to the severe economic
reforms imposed. this rate has
dropped considerably. But by
Evening star., 1963-05-19
Continued From Page Al

Continued From Page Al
traitor to the Communist cause
because he has sought ties with
the West.
BY assailing Yugoslavia, the
Chinese fired indirect blasts
at the Kremlin, which under
Mr.. Khrushchev has been fol-
lowing the line that commu-
nism will eventually win out
over the West by peaceful
means, especially in economic
fields.
The Red Chinese claim the
only way to spread commu-
nism throughout the world is
by violent revolution.
To settle differences in the
Soviet and Chinese camps,
President Diu Shao-chi of Red
China and President Ho Chi
Mini of Communist North
Wet Nam Thursday proposed
a world meeting of Commu-
nists. Mr.. Khrushchev previ-
ously has rejected this idea.
Blamed for All Differences
Marshal Tito blamed the
Red Chinese for the whole
range of differences between
the Kremlin and Peking. In Q
special report today to the
Yugoslav Communist Party,
Marshal Tito claimed the Red
Chinese deny the possibility
Of progressive forces coming
to power in certain countries
by any way other than an
armed struggle in a new war
He claimed the Chinese
sought to dominate the lead
ership Of the world Commu-
Evening star., 1963-05-19


the Socialist equivalent is -
lining the streets with flags in
honor of arriving dignitaries
and then taking them down
again and replacing them with
new ones.
AS the huge Stars and
Stripes flying over the Federal
Council Chamber during Sec
retary Rusk's visit came down,
UP went the blue and white of
Finland for President Kekko-
men. The same delegation that
saw Mr.. Kekkonen off waited
at the airport to greet u Thant
of the United Nations. Egypt's
President NaSsCr, who turned
out the largest crowds, will
soon yield the spotlight to Pres
ident Tubman Of Liberia.
Cordial Exchanges
On all these occasions the
formula is pretty much the
same: A warm and cordial ex-
change of public civilities,
equally warm though some
times less cordial private ex-
changes on current world prob
lens. In Mr.. Rusk's case there
was also mutual agreement on
the need of strengthening rela-
tions between the United States
and Yugoslavia particu-
larly in the field of trade"
For all the festive atmos-
phere and heartiness, however,
the performance is not entirely
convincing. One cannot talk
with many Yugoslavs without
coming away with the impress
sion that the confidence of
their leaders is largely as
sumed. In fact, Yugoslavia this
spring may be facing the most
critical threat to its political
and economic future since the
break with the Soviet bloc is
years ago.
1t is not a very dramatic
threat. No sabers are being
ratified, no breasts are being
beaten. The man in the street,
for the most part, is not aware
that it exists. Even the leaders
find it difficult to believe that
the United States which has
encouraged Yugoslav ipdepend-
ence to the tune of almost
So billion should now be
threatening to adopt a policy
calculated to undermine this
independence and throw the
country back into the Soviet
bloc.
Kennan Quitting
1t is the more difficult to
understand when the Ameri-
can Government itself firmly
opposes any such move as con-
trary to security interests OF
the United States. President
Kennedy has argued against it
Ambassador George Kennan
who rates as one of the ablest
American diplomats, is resign
ing from his post in Belgrade
because of 1t.
Ambassador Remnants resig-
nation is not in empty protest
but in simple recognition Of
the fact that no American
Evening star., 1963-05-19

mitted nations of the Russian
bloc.
Here again the granting Of
most characterization status was
not generosity but an act O.
considered policy.
Since the end of the war
two possible courses have beer
open to the United States with
regard to the countries of East.
ern Europe. They could bt
treated as part of a monolithiC
Soviet bloc, cut off from al
access to the west and aban-
doned to their fate. Or they
could be encouraged by ali
reasonable means to develop
along the lines of their owr
national aspirations and inter-
eSts in the hope that their SUBJ
lection to militant Communist
dogma would change with the
passage of time.
In practice, American policy
toward these nations has beer
a compromise between the two
ideas. In the case of Russia
China and the other bloc coun-
tries except Yugoslavia, most
favored-nation treatment was
cut off in 1851. In the case OF
Poland, it was restored in 1850
by President Eisenhower as q
matter Of determined policy tc
increase that country's ties
with the West.
Not In Soviet Bloc
AS the only Communist coun.
try which has received most.
favored-nation treatment sinct
the war. YugoSlavia provide
the most convincing proof O.
the validity of the more liberia
approach. The simple fact il
that today YugoSlavia is mo-
a member of the Soviet bloc
and has no intention of return.
ing to it. The nature of the
regime and the brand of Com
munism which have developed
here are different from those
of any other Communist coun-
try. And it is a difference which
it is very much to the interests
of the United States to en-
courage.
These differences and the
American interests involved
will be examined in more de-
tail in another article. 1t is i'm
portant, however, to under
stand the extent to which Yugo.
slavia's economic interests are
involved. And how the political
liberalization of the country
has gone hand in hand with
the development of its trade
with the free world.
Starting after the war with
heavy dependence on the East
Yugoslavia's trade with the
Soviet bloc fell to practically
zero after the break in l948
The refusal of Marshal Tito to
submit to the Moscow DOM
mated international Commu-
mist movement was maintained
in spite Of enormous cost and
even greater risk. This was the
bleak and nervous period when
Stain was fond of saying: 81
will lift my little finger. and
there will be no more Tito"
Turned Toward West
After 1850, when the United
States weighed in with a heftS
program Of economic and mill
tary aid. Yugoslavia's trade
turned deciSively toward the
West. Though this orientatior
Evening star., 1963-05-19
FOUND

BEAGLE. tick and white. b4OO ogth
st. NV. NO, 7.b730
TOY sPlTz, buff. vic. Farragut pi.
NV. NO. 7.b730 80
WIMARANERi reddish. Eastern Mar
net. NO. 1880.
Evening star., 1963-05-19
BY CROSBY s. MOVES

European Correspondent Of The Star
BELGRADE.-Since the May
Day celebrations Yugoslavia
has been in something of a
flutter.
The spring visiting season is
in full swing. Workmen are
working overtime-or whatever
First Of Two Articles
Evening star., 1963-05-19
LOST

BILLFoLD, Ill DID,, iady,s ycsu rsdi on "a ave-
BRACELET, gold charm, sentimental
wafs. vSlHf' ElM a9is as.7sosaa and WIS ave- Re-
BRACELET. gold, oeorgetown Univ.
HOSP. VIC. sentimental value, reward.
52s.g243 after pm
CAT, male, long hair, dark gray and
whitei vic. Manor Circle, TAX. PIX,
April lbi reward. bs0-3b30.
DOG M, mixed brown, vic. $500 9TH
fns'I fnEI nIssIns name Eossy ssnaysqsp pans at tip Of
DOG-Toy bulldog, female, black and
white, Lodi n, ~ iden, tag Nifty; |;
reward. ART LoEzfUB Cedar Crest
SoyyndtIy Club centreyille, Va. 7O3-
DOG, old English sheep dos, female,
larget long-haired, gray and white
ws,d VIC; RiVss VSssM rd sTss Snd Wilson lane re-
LADY's OMEGA white gold, pear
shaped watch and narrow band. Vic.
" 50. downtown. JU 5-7giO.
LAPEL WATCH, gold. Hamilton, Fieur
de LIS clasp initials r. H.. Tues.
S5 Ssys' Wea q 5ewaSe p2u' W. s,32sS week
RING, yellow gold, with dark blue
stone eneirsled With small diamondS
WALLET, mans brown; Important
ter. Va reward 532-5s3G.
WRIST WATCH iady's, white gold,
red stones, Mon, bet. 22d and M
and 18TH and Pa. reward. 687-0O43.
Evening star., 1963-04-21
silk OT;glUn5O

~ leading choice of brides for summer
Weddings is this sweeping gOtUn Of silk or
ganzG Ouer peGu-de-SOie. Petal
shaped tiers of OrgGnzd form the bOuGdHt
skirt, which floats to chGpei-Iength
train. This one is available at Lansburgh's.
Evening star., 1963-04-24
Music and Mrs. Nav
The National Symphony Orch

The National Symphony Orchestra
is fortunate to have thousands of
angels" who contribute to its welfare.
But very special angel is Mrs. Herbert
A. May who for five weeks each spring
practically owns the orchestra. Gra-
ciously, she shares Howard Mitchell and
his 95 players with visiting school chill
dren so they may enjoy Music for
Young America" This is the series she
began financing eight years ago with the
dual purpose Of (l) enriching the lives
OF young people through an introduc-
ton to good music and (2) financially
assisting the orchestra members by
extending their season.
The opening OF this years series
was particularly auspicious For the
American Federation Of Music recog-
nized Mrs. Mays generosity with a
bronze plaque. 1t was an award we'll
deserved, but no more significant than
the audience Of bright-faced youngsters
from Wautoma, Wis; Suncock, N. H.:
Whitesboro, KY; New York City, ST.
Louis, st. Paul, Mount Vernon, Ohio,
and IA other cities. For many OF them
1t was the entry into new and wonder
full world.
Evening star., 1963-04-24
WEDNESDAY, APRIL "a, 1868

come back to haunt it in later requests
for similar treatment from other transit
hungry cities around the Nation. Sig
nificantly, however, the department
comedies that "some extraordinary
handling" Of financing for the Wash
ington system Hs warranted" And this,
of course, is the crux Of the matter. The
development of rapid-tranSit subway
in Washington would serve higher
purpose than merely to transport COM
muters and shoppers in and out of town.
1t is needed also to preserve features of
unique national Importance in the
Federal City. Perhaps, actually, it could
be fully justified on no other grounds.
This is the consideration that distin-
guiShes the Washington problem from
others, and which must be constantly
in the minds Of the administration
officials now graphing for solution.
Evening star., 1963-04-24
Reverence for Life

FIFTY years nave gone by since
Albert Schweitzer decided, in his orderly
way, that the time had come to set
up his hospital in Africa. Already famed
as philosopher, theologian and musician,
he was 80 before he took up his medical
studies. He was 38 when he first pushed
into the steaming jungleS of Gabon,
treating that first year alone nearly
1000 natives suffering from leproSy,
elephantiaSiS and similar diseases.
Since then the hospital at Lam
barene has become the living symbol
of DR.. Schweitzer'S reverence for life"
1t has held out through war and famine,
epidemic and flood. 1t and its founder
have survived to the golden day when
he could humbly say, II have saved
an awful lot of human beings"
There was little more to be added
at the 50th anniversary observance. DR..
Albert Schweitzer, now 88, had work
to do at the hospital II belong to you
until my last BREATH" he said.
Evening star., 1963-04-24
Paying for Transit

There is no question that the initial
report OF the Treasury Department has
dealt a severe blow to the National
Capital Transportation Agency proposals
for financing rapid-transit system in
the Washington area. This fact does not
mean, however, that sound and ade-
quate financing plan is unattainable.
The Treasury report fairly sparkles with
fancy legal footwork, raising a great
many questions, discussing them in
forceful language, but quite obviously
leaving the final policy decisions to
higher authority in the Federal Gov
ernment.
It's strongest reservation involved a
proposal that the Government make
direct loans to the Meta TO take care
OF most Of the capital costs Of the sys-
TEN, to be refinanced in later years
through bond issues. And this attitude
is not surprising, in view Of the contro-
versy which has enmeshed the Meta
report as whole. Partly for this same
reason, the District Of Columbia would
hardly applaud the Treasury suggestion
that such loans might be made through
the District, with the city assuming
some measure Of responsibility for them.
A more likely prospect, repeatedly now
under study, involves the Federal guar
antee OF larger amount Of bonds than
previously had been proposed.
The Treasury report makes clear
that its major concern in these matters
Is to avoid a precedent which might
Evening star., 1963-04-24

needed was appropriated.
The President himself sub
stantiated this fact through
his April 10 foreign aid mes
sage TO Congress when he
stated that upward Of 5000
million Of economic assist
ance funds now available will
not be used in the present
fiscal year. The AID ad-
ministrator, David Bell. has
since revised this figure up
ward TO $500 million.
Does this fact alone not
indicate that had Congress
reduced the appropriation by
another $500 million. ample
funds still would have been
available for fiscal 1868 to
take care Of all our foreign
aid obligations and commit
mentsp And does 1t not also
suggest, as 1t is representa-
tive Of the type OF situation
which has developed year
after year. that perhaps
Secretary Rusk's current COM
plants and accusations, TO
the effect that those who
seek substantial reductions
In the funds for foreign aid
are cooperating with global
Communist strategy are
just about as unfounded In
fact as have been the same
type Of accusations in the
past2
/ submit that the record
on this point is rather clear
And 1t is q record which
does not support the posi-
Evening star., 1963-04-24
Facts and Figures on Foreiqn Aid

Your April 13 editorial,
"Rusk on Aid asks who
can doubt the basic validity
Of Mr.. Rusk's argument?"
with reference to his opposi-
ton to substantial cuts In
funds for foreign aid. You
state that perhaps Secretary
Rusk has spoken too blunt
ly to be pleasing" to people
such as myself, and you en-
phasize the point that "reali-
ty is reality"
We are certainly in agree
ment on the point that
reality is reality but
submit that in this particu-
lar editorial comment your
remarks have not been based
upon reality"
The outcry against SUBJ
stantial cuts from the budget
requests for foreign aid
funds is not a new one. Last
year. for example, when the
House had work ed It's
will, basing It's action or
the facts. and later the Con-
gress, In It's wisdom. had
completed action on the
foreign aid appropriation
reducing the amount below
the budget estimate by ST.
032 100000, Mr.. Rusk, among
others, in effect "yellec
bloody murder"
But what are the factsi
The facts are that as usual
despite the substantial re.
duction which was made
far more money than wal
Evening star., 1963-04-24

ton taken by Mr.. Rusk.
Reality" is indeed reality"
as you emphasize In your
editorial; therefore, I re-
spectfully invite you to be
realistic in this matter.
I have much respect for
The Star. although 1t has
chopped away frequently at
me and my work as chair
man Of the House Subcom-
mittee on Foreign Operations
Appropriations, when all that
! have been trying TO do,
and am now trying TO do, is
help contain" the foreign
aid program. TO bring 1t
within some bounds Of rea-
son, and keep 1t from going
wild.
Inc record mas peen clear
for a long time that we have
been attempting TO do too
much for too many" And
we have been attempting this
impossible task In q manner
that has been, overall. Just
about as inefficient, reckless
and wasteful as can be i'm
agined. The time is long
overdue for taking some
positive corrective action.
and that is what ! advocate
doing-which implies, so far
as / am concerned, a sub
stantial reduction In the
spending.
Otto Il. Passman,
Member OF Congress from
louisiana.