The South American Tender Box

America Advised to Soft Pedal Chile Role

By JOHN P. WALLACH

Herald American Washington Bureau

The failure of Marxist President Salvador Allende to become the first Western Hemisphere leader to peacably establish Socialism in a Democratic country should not automatically be regarded as a victory for American foreign policy.

In fact, when the dust has settled on the successful military coup that resulted in Allende's death, leftist forces all over the continent probably will renew charges of Central Intelligence Agency (CIA) complicity. Allende was passionately committed to the preservation of democracy.

More important, Chile was regarded by many as a test of whether there was a peaceful middle road between totalitarian Communism and capitalism in the Western Hemisphere. Premier Fidel Castro long has privately believed Allende's downfall would strengthen his own pitch to Latin nations to seize control of their destinies in Cuban-style dictatorships.

So, before American policymakers have too many sighs of relief, they should look at the new map of South America: only four nations are not directly or indirectly ruled by military governments. They are Argentina, Colombia, Venezuela and Guyana. Both Uruguay and Chile this summer have suspended their nation's democratic constitutions and imposed military rule.

This fact alone should cause a reappraisal of U.S. policies, including a new look at greatly-reduced arms sales programs, and another look at the central premise dating back to the Monroe Doctrine — that there is a "special role" for the United States to play.

Latinos fervently believe in this special relationship no matter how persistently the Nixon administration tries to shrug it off.

To help in that reappraisal, here is a check list of do's and don'ts for the United States to help improve its image in Latin America:

- Avoid becoming involved in disputes between multinational corporations and Latin American governments. These disputes are exploited to shift blame for internal failures — ITT, IPC (International Petroleum Company) become codewords whenever an external enemy is needed.

Rightly or wrongly, many Latinos are convinced that U.S. embassies function almost exclusively as the agents of private American business interests that have robbed them of vital raw materials, exploited cheap labor and frequently been reluctant to re-invest profits in future development.

Contributing to this view are such things as the recently-passed Gonzales amendment to the foreign aid bill which requires the United States to cut off economic aid and vote to block international development loans whenever private U.S. companies are not "adequately" compensated for nationalization of their assets.

This, in the Latin view, converts what is essentially a private dispute into a government-to-government confrontation that frequently sets back bilateral relations in a whole range of other activities. "The Gonzales amendment is a big mistake," charged Salvador Bussaca, the Peronist majority leader in Argentina's senate.

"It only helps the Marxists in their charge that the United States is not truly allied with the struggle for liberation from poverty, disease and neglect," he explained. "The more our countries feel oppressed by hunger and disease, the more we will be thrown against the possibility of peaceful change and into the arms of bloody dictatorships."

Asked specifically how the United States could improve its diplomacy, Bussaca replied: "First, embassies should

stop being lobbies and become real centers of human relationships. Second, Latin American nations must be allowed to have their own political, cultural and economic institutions without intervention by the United States.

"Provided those institutions are solely chosen, they should receive the cooperation of the United States for projects established according to their own way of seeing things and not through the eyes of an international bureaucracy," Bussaca said.

"Third, governments should reeducate investors for a world where property has become more and more intangible. Many of these companies survive by their role in the public sector. President Nixon has a lot of ways to make investors understand the need to adjust their demands to new Latin American realities.

"The companies in the United States could not live without government contracts, therefore the government has a lot of power to make them change," Bussaca said. "We don't like arm-twisting but neither do we like unjust negotiations."

- Avoid any activities within a nation that may be regarded as unwarranted attempts to influence that nation's politics.

The most recent example is the intervention of U.S. charge d'affaires Max Krebs in Argentina's deliberation of new foreign investment and bank renationalization laws.

Krebs, in a series of memoranda that prompted a demand for his expulsion from Argentina, threatened official U.S. retaliation if the laws were passed. The U.S. envoy reportedly was acting on behalf of Chase Manhattan Bank which was not happy with the proposed legislation.

Latin American Intellectuals believe the Krebs affair, which received wide publicity that further damaged America's image, is only the tip of an iceberg that also includes the attempt of ITT to offer the CIA funds to actively oppose Allende's presidential bid in Chile.

They believe these incidents, together with the punitive Gonzales amendment and disclosures that large corporate campaign contributors received political favors in return, illustrate that the U.S. government serves the interests of "big business" before it serves the interests of the American people.

- Throw out the concept of the United States as "the" which makes Latin American development with free elections or "popularly-chosen" governments as the yardstick for determining which nations receive support.

The problems Latin American societies face are so overwhelming and the American model so inadequate for their solution that Latin American experimentation with political and economic systems different from those of the United States is inevitable.

This should be accepted — both because it is inevitable and because original and productive Latin American approaches to economic and social development may emerge. Most important, legitimate nationalist revolutions, such as the military-led program for social change in Peru, ultimately may be Latin-America's best defense against Communism. It is important that such efforts receive vocal and meaningful American support.

—The United States should adopt a general system of tariff preferences for manufactured goods from developing nations, or a special system of preferences for Latin America.

"The Latin American solution is not going to be found through loans but through more trade," Argentina's central bank president Alfredo Gomez Morales contended. "Latin

America has to have a preferential system for its exports. First of all, we're in the same continent and there are ties of political and social character as well as mutual defense obligations which have always been recognized."

"Loans don't solve anything," Morales added. "The loan has to be paid back. There's no purchasing power. We want authentic purchasing power. We're not going to keep the money we receive from the American market. We're going to send it back again by importing more of your exports."

- Pressure Congress to remove the current restrictions on U.S. arms sales to Latin America. They have resulted in America's dropping behind both Britain and France in sales and in recurrent charges that the United States uses the arms sales as a "paternalistic" lever for arm-twisting.

"It's the way in which arms sales are carried out and the buying of necessary spare parts that has been need by the United States to pressure Peru," General Cavero Calixto, chairman of the joint chiefs of staff said.

"Suddenly an amendment comes along and the United States turns off the tap. We can't get spare parts," Calixto complained. "That never happens in Europe. It's a strict business deal. They want to sell and we want to buy. There's no deal."

"If we have the cash, they give us the planes. If not, we don't get them. The explanation we receive on 'turning off the tap' is that the United States 'knows what we really need.' That's ridiculous. After all, Peru has its pride. We consider ourselves an adult nation."

- Appoint more experienced career diplomats to Latin American posts. Assignments there traditionally have been regarded as political plums for wealthy contributors to a U.S. campaign chest. This was fine so long as U.S. diplomacy relied on maintaining contacts with old established families that formed the oligarchic classes frequently ruling Latin nations.

Until recently, American ambassadors, serving at the political whim of the President, outnumbered career diplomats by three to one. Only two U.S. envoys, Ambassadors Taylor Belcher in Peru and Nathaniel Davis in Chile were considered "outstanding" by their host governments.

"It is tragic that this separation should exist between the people of Latin America and the people of the United States," lamented Jorge Fernandez Maldonada, Peru's mines minister and leading architect of its revolution. "We know how your people think — how honest the American people are. We're not hegging for aid from anybody. We're asking for cooperation because we all need each other."

The view is widespread. "Argentine must not isolate itself from the United States," ex-president Arturo Frondizi said in an interview. "At the same time the United States must have respect for our national Argentine feelings."

"I believe the United States should offer investments in the basic sectors but carefully avoid intervention in our internal problems. When I use the term 'non-intervention' I mean the American government and I mean the multinational corporations."

"There should be a real understanding that governments should help people and not serve the interests of huge, multi-national companies," Argentine President Raúl Lastiri explained. "Investments here frequently have made huge profits but left poverty and pain in their wake."

"If the genuine desire of the American people to help the people of Latin America is not strangled by the profit motive, Latin America once again will believe in the United States," Lastiri predicted — "not as a superpower but as an equal."

SUNDAY
30c
How to Get Firewood Free in The
Forests and on the Beaches

November 11, 1973

See Article Below

Seattle Post-Intelligencer

THE VOICE OF THE NORTHWEST... SINCE 1863

College
Students
Hit Hard
Times

BY SOLVEIGT TORVIK

P-I Education Writer

Suzeie Sophomore, whose parents have two other children and an adjusted gross income of $12,000, last year could be a federally insured student loan of $1,500, from a bank to attend one of the state's colleges where expenses run $2,021 a year.

This year Suzeie can count herself among the fortunate if she got a $632 loan.

Hard times have fallen upon the middle-income student seeking both loans and direct grants to attend college this year, and bank and college financial officers say intended reforms in federal and programs have had the effect of keeping students out of college.

Under the federally insured student loan program, the government guarantees up to $1,000 in a student's net amount of interest and, until last year, paid the interest while the student was in school. The student was eligible for up to $1,300, if the student's adjusted gross income was less than $15,000.

In the wake of publicity about a high default rate on loans, Congress passed a law requiring it to prevent students from imposing a needs test on the student. The test has had the effect of disqualifying middle-income students from having the federal government pick up the interest charge they are to pay.

The mythical Suzeie's parents, would be $12,000 adjusted gross income, would be

Page A-15, Column 1

EDITOR'S REPORT

Mideast
Diary

BY WILLIAM RANDOLPH HEARST JR.

Editor-in-Chief, The Hear Newsapers

TEL. AVIV — Momentous events have been occurring with such rapidity since my arrival here in the heart of the Middle

East crisis that it may provide a clearer picture of what has been happening in the Middle East.

and chief foreign writer of The Hear Newsapers, who had been arranged by the Israeli ambassador in Rome. Amiel Nissar, who assured me that security maintained on their flights is probably safer than any other way of getting to Israel.

Greeted by Sam Becker, of the Israeli Foreign Office, who has been with us on every visit we have made to Israel, and

Page A-4, Column 1

ONLY INCIDENTALLY. are T-shirts garments these days. They have become backgrounds for messages, such as "Do it in the snow," worn by slow Karen Korpe against a backdrop of Lake Union on a sunny day. The T-shirts national popularity and the effect of popularity on the Seattle area and vice versa are detailed on Page A-3. —P.I. Photo by Bob Miller

Treatment of Hypertension
Faces Two Critical Problems

BY TOM READ

P-I Science-Medical Writer

ATLANTIC CITY, N.J. — Education and motivation of the public remain the two problem areas in the treatment of hypertension (high blood pressure), a panel reported here yesterday to the American Heart Association.

But there is hope that a continuing hypertension treatment program may be included in a national health-insurance program, if one is enacted, and this might help with the cost factor.

Page A-12, Column 1

30th Annual Home Show Coming

The 30th annual Seattle Home Show has been scheduled for next March 3-9 at Seattle Center Coliium, general man-
ager W. G. McDonald announced.

Sponsored traditionally by The Seattle Post-Intelligencer and Seattle Master Builders Association since its pre-World War II inception, the home building and remodeling exhibition has become one of the outstanding and largest housing shows in the United States.

"We expect this 30th anniversary

Home Show to set records in both attendance and quality of displays. McDonald said, "There is an acute need for home owners and developers to stretch their building dollars and methods and new materials and this show will provide them with many answers."

He said some of the exhibitors undoubtedly would be Home Show pioneers who have participated regularly since the first show, but added that he expected "first timers" as well.

Exhibits will cover every phase of home building and equipping, but the focus will be on 

Selection of a Home Show committee by the sponsors is expected in the next week, McDonald added.

Oil Crisis May
Peril Economy

Grim Warnings
Given by Love

WASHINGTON — (AP) — President Nixon's energy policy adviser, John A. Love, said yesterday the fuel crisis will bring a U.S. economic slowdown that could become a major recession at the whim of the Arab oil nations.

Without restored and even increased Arab oil, Love said, the nation's growth rate could be reduced as much as 90 or 90 per cent.

Love said in an interview that most other administration officials have not viewed the energy crisis as seriously as they have, but they said they may be changing their minds since the Arabs stopped oil deliveries to the United States, in a measure tactically aimed at U.S.-Israeli re-

lations. Love said the steel industry may face a 15 per cent cut in its energy supply some time next year, forcing an end to steel production and send- ing ripple effects throughout the eco-

ntries. Through wholesale distribution control, the Nixon administration plans a 15 per cent reduction in home heating oil this winter and Love said gasoline rationing is likely by next spring.

But he said the energy crisis is spreading far past these impacts.

It has gone beyond, as serious as they are, the cold home and the gasoline shortage, to the effect it's going to have on the

Page A-4, Column 1

Custodians
OK School
Contract

BY PAUL BOYD

P-I Education Writer

Seattle School District custodians yesterday voted 341 to 42 to accept the district's latest contract for a raucous membership meeting in the Labor Temple.

Claude Hobson, president of Local 690, Operating Engineers, said the agreement was the best possible contract we could get.

We figured we'd gone as far as we could on a wage without a strike," said Dale Daugherty, member of the union distribution team.

"We got the concessions we did believe to be a threat of a strike," said the new agreement included.

● A pay increase of 4 per cent above the expired contract, in addition to a $600-a-month salary grant. The pay

bikes retroactive to July 1. "We don't think there is any strike, but we are doing it for the union,

● Acceptance of the custodians' demands for a two-day pay strike due for part-time employees.

● Acceptance of the custodians' demand for binding arbitration in the Seattle procedure. "We don't think we should do it," said the union.

● An agreement on a duty-free lunch

Page A-19, Column 1

$4,000 P-I Football
Forecast Contest
See Sports

UW 41, Idaho 14

WSU 13

UCLA 27

OSU 7

Oregon 7

Fuel Hunters
Take to Woods

BY DICK CLEVER

With firewood gatherns running out, the citizens have taken to the woods and houses for winter fuel.

Slash piles "as big as a house" just disappear. U.S. foresters have issued 10 times the normal number of firewood permitting permits.

Some wood gathers have taken to the beach. A Department of Natural Resources official said wittiness could be taken from state beaches long as it is not "marketable timber."

You should be certain that the beach you are wood-gathering on is, in fact, a state-owned beach. Owners of private beaches can get very surly with

The State Department of Natural Resources says as much as 60 per cent of the available slash wood for fireplaces has been taken from its South Puget Sound District.

And the people keep coming, gathering firewood as a hedge against the energy crisis. Some Seattle suppliers of firewood have run out. Many have stopped taking orders.

"We don't have a stick left," said Arnie Han-ukels, of Lake City Fuel Co.

"When does he expect more wood supplies?" Hamiltons quipped.

"When we see the eyeballs of our cutter," Hamiltons said. "This is the problem. There is still wood out

Page A-16, Column 1

Kissinger, Chou: Old
Friends Meet Again

BY JOHN P. WALLACH

P-I Washington Bureau

PEKING — Secretary of State Henry Kissinger began extensive talks today with Chinese Premier Chou En-lai, Kissinger pledged he had come with "an open mind" and "determined to do much more" to normalize relations "as rapidly as possible." In his last meeting with Chinese Prime Minister Chii Peng-feng, who hosted a banquet for Kissinger in the Great Hall of the People, the U.S. secretary said his goal was to speed up the process we started two years ago." This was "essential to the peace of the world."

Senior U.S. officials immediately discouraged speculation that Kissinger would make another dramatic breakthrough on his 12-day round-the-world trip — announcing an agreement to resume full diplomatic relations with China.

But they limited their denial to Kissinger's three-day stay in Peking, thus leaving a strong impression that enough progress could be made here to pave the way for a resumption of ties soon. "We'll leave with relations amicable but in the same way," a high U.S. official said.

Meanwhile, Chinese officials explained that a

Page A-2, Column 2

The Weather

PERIODS OF RAIN. Highs in the mid- and upper 50s; low, near 100; southwesterly winds 1 to 25 m.p.h. Chance of rain 80 per cent, decreasing to 70 per cent. Record low: 30 on Nov. 19, 1948. Table, Page D-11.

Features in Today's P-I

<table>
  <tbody>
    <tr>
      <td>Arts, Books Tab</td>
      <td>Business</td>
      <td>C-68</td>
      <td>Obituaries</td>
      <td>D-19</td>
    </tr>
    <tr>
      <td>Autos</td>
      <td>D-11</td>
      <td>Crossroads</td>
      <td>Tab</td>
      <td>R. Estate</td>
      <td>E-13</td>
    </tr>
    <tr>
      <td>College</td>
      <td>D-11</td>
      <td>D-19</td>
      <td>Life style</td>
      <td>C-18</td>
      <td>Travels</td>
      <td>G-14</td>
    </tr>
    <tr>
      <td>Editorial</td>
      <td>B-5</td>
      <td>Marine</td>
      <td>C-8</td>
      <td>World Today</td>
      <td>B-14</td>
    </tr>
  </tbody>
</table>

# Historic Pact Today

By UNITED PRESS INTERNATIONAL

Israel agreed yesterday to sign a truce agreement with Egypt today, formally marking the end of the 1973 Middle East war. It will be the first agreement between the two enemies since the armistice that ended the Israeli War of Independence a quarter century ago.

American diplomats said the signing would be followed, probably in a few weeks, by a Middle East peace conference, where Israel, Egypt and probably Syria would sit down for the first time to settle their differences peacefully instead of by war as they have done four times since 1948.

UN Sec. Gen. Kurt Waldheim said the signing ceremony, held under the auspices of the UN Emergency Force (UNEF)

overseeing the cease-fire, was scheduled for 3 p.m. (8 a.m. EST) today at the 10 1-kilometer marker on the road from Cairo to Suez, where Israeli and Egyptian officers have sat together before to work out details of the current UN cease-fire.

Despite the agreement, the Israeli military command accused the Egyptians of five truce violations during the day, none of them considered major. The command also said the Syrians in the North committed two, one involving an artillery barrage that was answered with small arms fire.

The agreement, drafted by U.S. State Sec. Henry A. Kissinger during a week of intense personal diplomacy in five Arab capitals, provides for the exchange

(Cont. on Page Twenty-two)

## Editor's Report

### A Middle East Diary

By William Randolph Heart of

Editor-in-Chief, The Hearst Newspapers

TEL AVIV—Momentous events have been occurring with such rapidity since my arrival here in the heart of the Middle East crisis that it may provide a clearer picture of what has been happening if this report is in the form of a chronological diary. So here goes:

Wednesday: Arrived here from Rome aboard an Israeli El Al Boeing 707, accompanied by J. Kingsbury. Smith, my longtime associate and chief foreign writer of the Hearst newspapers. Our flight had been arranged by the Israeli Ambassador in Rome, Amneil Najar, who assured us that because of the tight security that is maintained on their flights it is probably safer than any other way of traveling to Israel.

W. R. HEARST, JR.

Greeted by Sam Becker, of the Israeli foreign office, who has been with us on every visit we have made to Israel, and by our two correspondents in Israel, Serge Fliegers and John Harris. It did not take us long to discover that the Jewish nation was deeply concerned about what Henry Kissinger was up to in Cairo, where he was meeting with Egyptian President Anwar Sadat. It quickly became apparent that Israel feared its ethnic son, America's new Secretary of State, might wind up with the kind of peace settlement in the Middle East that he got in Vietnam.

Frankly, the Israelis don't think the Vietnam peace settlement was very good for South Vietnam. It did get America militarily out of the Southeast Asia conflict, and that was good for us. But it did not bring peace and it left strong North Vietnamese forces in the South, where they are now launching frequent attacks and building up for what may be a new all-out offensive to conquer South Vietnam.

Israel doesn't want to see that kind of peace settlement imposed on it. It wants a settlement that will give it reasonably defensible frontiers so that if it has to fight again for survival, the battles will not be in the streets of Tel Aviv or Jerusalem.

(Continued on Page Twenty)

KISSINGER IN TOAST

### Kissinger Meets Chou With 'An Open Heart'

By JOHN P. WALLACH

Sunday Herald Advertiser Washington Bureau

PEKING — State Sec. Henry Kissinger began extensive talks yesterday with Chinese Premier Chou En-Lai, pledging he had come with "an open heart" and "determined to do much more" to normalize relations "as rapidly as possible."

In a toast to Premier Chou and Foreign Minister Chi Peng-fel, who hosted a banquet for Kissinger in the Great Hall of the People, the U.S. Secretary said

his goal was "to speed ... (and) complete the process we started two years ago." He said that was "essential to the peace of the world."

Senior U.S. officials immediately discouraged speculation that Kissinger would make still another dramatic breakthrough on his 12-day round-the-world trip — namely announcing an agreement to resume full diplomatic relations with China.

But these officials limited their denial

to Kissinger's 3-day stay in Peking, thus leaving a strong impression enough progress could be made here to pave the way for a resumption of ties in the near future. "We'll leave with relations amicable but in the same state," a high U.S. official said.

Meanwhile, Chinese diplomats explained that a solid foundation for resuming ties already had been created during the Nixon summit in February,

(Continued on Page Fourteen)

## James Reston

### Shortages Bring People to Senses

(C) New York Times News Service

WASHINGTON — The craziest notion that has hit this country in a long while — and we've had quite a few nutty notions lately — is that shortages of gas, beef and a lot of other things are bad for the American people.

What America really needs is more shortages. It is not our shortages but our surpluses that are hurting us. Too much gas, too much booze, too much money, talk, noise, and — fire me tomorrow! — too much newsprint are our problem.

We need to cut down, slow up, stay home, run around the block, eat vegetable soup, call up old friends, and read a book once in a while. Americans have always been able to handle

austerity, and even adversity. Prosperity's what's been doing us in.

For most of this century, we have been told by our leaders that it was our right and destiny to have two cars and a boat for Sunday. The more we consumed, the more the nation would prosper. The voice of America was the voice of the hawker, the prevalent melody of America was the singing commercial. Buy more, consume more, get more things, even if you can't afford

(Cont. on Page Twenty-one)

### News Commentary

... TO CHOU EN-LAI