WHY SOVIETS ARE RUSHING A MILITARY BUILDUP IN CUBA

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP65B00383R000200230060-1
Release Decision: 
RIFPUB
Original Classification: 
K
Document Page Count: 
106
Document Creation Date: 
December 15, 2016
Document Release Date: 
June 4, 2004
Sequence Number: 
60
Case Number: 
Publication Date: 
February 7, 1963
Content Type: 
MAGAZINE
File: 
AttachmentSize
PDF icon CIA-RDP65B00383R000200230060-1.pdf21.19 MB
Body: 
THE CUT IN T WHY SOVIETS ARE RUSHING A MILITARY BUILDUP IN CUBA CK AFRICA AND ITS FUTURL 00200230060-1 as"ll Approved F'#r Release: 2004 23 F CIA-R?R65.B0038 , 3R00020{ 2 ( 060-1 t .1111stvei an office electric with 4t5o luxury featureSfor 2S0 (theprice o, f a manual) This is the new Smith-Corona 250. It's quite a typewriter. It may very well change your ideas about office type- writers. It's a full-featured office elec- tric priced like a manual-about half the price of conventional electrics. How can it be priced so low? Engi- neered compactness ... a new idea in for the professional buyer. I_I It makes 12 carbons, more than most typewrit- ers. The Smith-Corona 250 also offers more bonuses than typewriters costing twice as much .. a unique half-space key for spacing in corrections, elec- tric back space and 5 electric repeat actions-space bar, cross-out key, office typewriters. Naturally, it has the hyphen, underline and dot. 11 The com- e full-size keyboard and carriage pact typewriter is the beginning of a am FREE! Mail coupon for valuable 64-page typewriter fact book. Tells about six different typewriter buying plans, trade-in economics, service information, rules for improving letters, many other helpful facts. SCM Corporation, Dept. USN-2 410 Park Avenue, New York 22, N. Y. s Op I ~pewriters. ^ See (electric, of course) ~py~tS6ug Kep` .t re p used to. ^ The new is 1 n ~f*'~t+6`p1~0038af?.Q06k20fl0060-1 -215 Typewriters - Calculators ? Photocopiers - Adding Machines- Cash Registers - Data Processing Systems ? Telecom mumcatlons Systems. 01hce Supplies Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 ? The more profits, the more jobs More than 1,250,000 additional people want jobs every year. In manufacturing, $20,000 investment is needed to tool up for each new job. That $20,000 cannot be raised out of depre- ciation allowances-it has to come out of profits after taxes. Depreciation allowances only provide part of what is needed to keep tools modern for present workers. So to tool up for every new worker and his job, companies must make more profit-$20,000 more for every new worker you want a company to employ. Yes, profits make jobs, and more profits are necessary for the more jobs America must supply. Wool fibers being prepared on Warner & Swasey SERVO-DRAFTER Automatic Levelling Draw Frame prior to twisting into yarn. Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 \\ URLp LtA 11aldh iQ . al D 0 soeg 14 xn at nd3dit. CIAQ~I2faa`a$OA.383jR0002o TO Wash po -, w.s K'D C R-4 -c Las Povt h paid at R's h n D C , ,c. GI mailing offices. SPECIAL If Taxes Are Cut - the Chances of a Boom Will tax cuts, if voted by Congress, lead to fuller employ- ment, sustained boon-? here are views of some top economists -page 32 . , . Also: Bright and Clark spots in the profit picture, page 38 ... l'pturn in business-how strong' Page 36. Interview With West German Chancellor Adenauer just how does West Germany feel about De (;aulle's moves to block Britain out of Europe? Certnanv's Adenauer gives his appraisal, in this exclusive interview: page 31. If It's Rockefeller vs. Kennedy in 1964 - 'ltore and more, its being taken for granted that the 64 race will he between Kennedy and Rockefeller. here's how the political pros see that race shaping ill) now-page 56. A New "Sea of Trouble" in Southeast Asia What's involved in the latest efforts b.- Indonesia's Sukarno to upset the balance of power in Southeast Asia: page 46. "Seaports" for Oklahoma here is the story of what one Senator-Kerr of Oklahoma- wc?as able to do for his State, with federal billions-page 66. Cover Articles: Wily Soviets Are Rushing a 'Military Build- up in Cuba, page 42 ... Itlterview: The True Story of Black Africa and Its Future, page 72 ... The Cut in Tax Deductions -What New Plan W'ould 'dean, page 33. (For detailed table of contents, see page 4) HANDY WAY TO SUBSCRIBE U. S. NEWS & WORLD REPORT Circulation Department, 435 Parker Ave., Dayton 1, Ohio Please enter my subscription to "U. S. News & World Report" for one year. (Continental U. S., Canada and Mexico, $7; other countries, $9. By air only, Alaska and Hawaii, $10; Europe, $15. Rates by air to other areas upon request.) L Remittance enclosed. L Bill me. City Zone State I - NHW 45 1------------------------------ -- COMPANY OFFICIALS LOOKING FOR A NEW PLANT SITE 0 SUBJECT PAGES Introduction ............ 1 Growth Trends .......... 2-3 Climate ................ 4-6 Public Utilities .......... 7-22 Financial .............. 23 Government Services ...... 24.44 Taxes ? Protective Services Water Supply & Sewerage Community Facilities ..... 45-73 Housing Education Recreation & Culture Industrial History ........ 74-79 Labor ................. 80-92 Natural Resources ....... 93-94 Transportation & Markets.. 95-104 Sites .................. 105-133 TAILOR-MADE. This confidential re- port is not taken off the shelf. It will be prepared specifically for you, based on the requirements for your new plant as you give them to us. Send these re- quirements on your business letterhead to Commissioner Keith S. McHugh, N.Y. State Dept. of Commerce, Room 316 K, 112 State St., Albany 7, N. Y. Keith S. McHugh, Commissioner New York State Department of Commerce 2 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Fleet Buyers : Here are 7 reasons why Fords give you more for the money to fit every fleet need. Ford offers a total of 51 models, including sedans, hardtops and wagons. Fords, middleweight Fairlanes, compact Falcons, and for special prestige, the fabulous Thunderbird. 2. Thunderbird Styling! Thunderbird styling is yours throughout the entire Ford line-plus Thunderbird's style of engineering! This year, the '63 Ford has the look, the power, even the feel of the Thunderbird. This trend-setting styl- ing pays off in added company prestige and increased employee morale. 5. Twice-a-Year or 6,000-Mile Service! One stop twice a year or every 6,000 miles will normally take care of everything! All of the '63 Fords (except Falcon Station Bus and Club Wagons) go 36,000 miles between major chassis lubrications and 6,000 miles between minor lobes. 3. More Savings! Ford's traditionally low purchase price is just the beginning of your savings-because you keep on saving with twice-a-year or 6,000-mile service intervals and loss maintenance. For the biggest money savings of all, see the '63 Falcon, America's all-time economy champ. 6. Improved Quality! A $100 million Quality Assurance Program has enabled Ford to extend the warranty on these cars to cover the first 24,000 miles or 24 months of ownership', proof that Fords are built to stand up under thousands of extra miles of the toughest kind of wear-and- tear driving! For further details, see your Ford Dealer or write: Fleet Sales Manager, Ford Motor Company, 2750 W. Fort Street, Detroit 16, Michigan. *Ford Motor Company warrants to its dealers, and its dealers, in turn, warrant to owners as follows: That for 24 months or for 24,000 miles (6 months or 6,000 miles on 427-cu. in. high-performance V-8 engines and related power train components), whichever comes first, free replacement, including related labor, will be made by dealers of any part with a defect in workmanship or materials. Tires are not covered by the warranty; appropriate adjustments will be made by tire companies. Owners will remain responsible for normal maintenance services, routine replacement of parts, such as filters, spark plugs, ignition points, wiper blades, brake or clutch linings, and normal deterioration of soft trim and appearance items. PRODUCTS OF Cf.(11~Q~ MOTOR COMPANY 4. New Durability! The '63 Fords are rugged- they're the best built Fords in history! There's greater strength and durability, thanks to top- quality construction throughout. Hoods, doors and deck lids fit to more rattle-free tolerances even carpets are tougher, longer lasting! And, mufflers are fully aluminized for long life. 7. Better Trade-in Value! It stands to reason that these Fords, engineered to deliver so much rugged dependability, will still have plenty of life left in them when it comes time to trade. This means that you can expect a higher resale value than ever before ... another saving grace from Ford! AMERICA'S LIVELIEST MOST CAREFREE CARS FORD Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 ,1psricht , INGt. by U. S. News & \\'orld Report, lice.. '?(N) N Street, N.\k'., Wash, ir.Gnm U. C., for entire contents of this publication. All rights reserved. Vol. LIV No. 6 FEBRUARY 11, 1963 U. S. News iS World Report INDEX EDUCATION .. ............... 60 FINANCE 38, 92 FRONT PAGE OF THE WEEK... 6 INDUSTRY, BUSINESS (see below) INTERNATIONAL (see below) LABOR ...... ...... ._ .... ......_. 88 LAW ........ 80 MARCH OF THE NEWS ......... 10 NATIONAL AFFAIRS (see below) PEOPLE ..........._.... ..... ._........ 15 PLUS AND MINUS .............. 19 POLITICS ............................... 56 POPULATION .......................... 70 TAXES ........................32, 33, 85 WASHINGTON WHISPERS .... 26 NEWS LETTERS TOMORROW .......................... 23 WORLDGRAM ........................ 53 TREND OF BUSINESS (U. S.) ..., 63 U. S. COMPANIES ABROAD ..,, 82 NEWS YOU CAN USE ............ 85 BUSINESS AROUND THE WORLD ...................... 97 CONTENTS It -must be Amphora AMPHORA. the cool, calm tobacco front Holland that soothes the spirit and re- laxes tit(- mind. AMPHORA, f tagrant and rich, slues-burninti to the bottom of the bowl mild, full-bullied Cavendish at its best. AMPHORA, the right tobacco for the young man who takes up a Pipe. and for the voteran who seldom sets one down. This pipeful and the nt?xt, it be Atl('110IZA. Anierica'-. biggest-cell- in" Dutch tubac,?o... fill onlq ;w, A product of DOUWE EGBERTS ROYAL FACTORIES Utrecht, Holland David Lawrence Editorial: Normalcy ..............................................100 "G. S. ' ets s a World Report" goes [o press on Friday night. Beginning on the follow- ing slondac, the current issue is available at the newsstands for one week-until the elate printed on the toyer. Extra copies desired should he houehl before the cover date. Rift in West-How Serious Problems Face U. S. After De Gaulle Rebuff to Britain .................. 29 Adenauer Sizes Up De Gaulle Interview With West German Chancellor .................................... 31 If Taxes Are Cut-the Chances of a Boom .................................. 32 The Cut in Tax Deductions-What New Plan Would Mean...... 33 New Gains in Business: How Strong ................................................... 36 Bright, Dark Spots in Profits Picture .................................... 38 Canada-A Weakening Ally? "Gap" in Hemisphere's Defenses.... 41 Why Soviets Are Rushing a Military Buildup in Cuba .............. 42 Latest Facts on Russia's Cuban Base Interview With Senator Keating of New York .............................. 43 A New "Sea of Trouble" in Southeast Asia Is Sukarno Expanding His Empire Again? .................................... 46 What De Gaulle Sees Ahead ....................................................... 55 If It's Rockefeller vs. Kennedy in 1964- ...... .................... 56 Kennedy's Latest Program for Aid to Schools. ......................... 60 "Seaports" for Oklahoma-Senator Kerr's Goals .......................... 66 The U. S. 37 Years From Now ............................................ 70 The True Story of Black Africa and Its Future Exclusive Interview With Dr. George H. T. Kimble ........................ 72 News-Lines for Businessmen: What You Can and Cannot Do...... 80 Labor Week: Where Unions Have Hit a Roadblock ............................ 88 Finance Week: What Investment Funds Are Doing With Their Money .................... 92 cabscnption rates deivered prepaid to continental United States t- ~ i-ossessions. Canada and Mexico. ~.' one year. 511 for two vents. $14 for three years; all other countnes Sc, for one year. By air only, to Alaska and liaw aii. $10 for one tear: to Europe $15; to other area, rate, upon request. The Associated Press :s exclusively entitled to the use for repubsic at:on of the local. tele Graphic and cable r._..s published herein. orieinated by ft S. News & World Report c. ..,d from The Associated Press 4 Approved For Release 2004/06/23 : CIA-RDP65B00383MO020'O23O9 @.R'FPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 The union leader? His constituents benefit when busi- ness is profitable. Therc can be no col- lective bargaining with bankruptcy. The newspaperman? His personal welfare depends substan- tially on the profitability of his paper -ask any man who works on a heavy loser. The mayor? iM He knows that civic development can be realized effectively only when local business is operating profitably. The family? The security of the employment of its wage earners depends on the prof- itability of the businesses they work for. The baby? Will its future be bright or dismal? Rising population demands vigorous economic growth, which in a free so- ciety can be powered only by profit incentives. Who cares? All of us. Whether we recognize it or not, we are all affected, seriously and personally, by the profitability of our business enterprises. In- decd, only irresponsibility or indifference could char- acterize those who don't care. For quest of profit is the essence of national growth and national survival and an inseparable characteristic of the free society. Who cares about Profits? The investor? His concern is obvious. Only hope of reward entices his dollars from safe, but unproductive, hiding places. The government employee? Government services come chiefly from taxes on profits of corporations and earnings of individuals. As profits go down, tax revenues feel the pinch. Better Things for Better Living ...Uirough Clhemisby QU PONT TIIOSl WHO CARE enough to explore further may obtain, with- out charge, a new 32-page booklet on profits which has won an en- thusiastic reception among readers. The coupon below will bring a copy to your door. Address Department P-B, The Du Pont Co., Wilmington 98, Delaware. ........................................ 1 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 The professor? Endowments and gifts produce a sub- stantial share of the income support- ing higher education. Dwindling prof- its tighten budgets on the campus. The consumer? Only profitable businesses can do the research and development workwhich bring new products, lower prices, and better things for better living to the consumer. The plant worker? The security of his present job and his opportunities for advancement de- pend on the profits that stimulate em- ployment and expansion. FRON10pAr ;3M. CI Qe,65BQ. HE 02002W6E1 WEEK tRt AS U. S. FORCES ENTER THE MISSILE AGE 'I'hc I. S. armed forces is they swill look fine scats from now sere skctcfted for Congress bs Sccretal% 01 IXfeltse Robert S. AIrAanuLa on l.L1n.trs .30. Predicted, for 1965: Army. It will have 16 dis isiuits .is now, but will be conipletelw rcor- ganizrd into six in[antrs, fist mechan- ized, three armored and (wo ,tirbnrlle divisions. A radicallw new air-.tss:mlt division is a possibility, as is ,t bit' Army an farce. Modeni e(Inipnu?11i Will be stockpiled for six additional divisions in case of a hurried Bescrwe call-lip. Navy. "I'odaws S.16-ship fleet sill shrink somt shat. No "crash" building pro,t;r.on is foreseen. '1 ll< re swill be otc tletc carrier ewerv other sear. 'I'hc building of unclear-driven ships \0 11 be 11(1(1 to a trawl. 1.11cre aw to he It'sw(r dcstroy(rs ill the ness \.n w. more guided-missile friilates. laws, of .ill services. swill change till- least. Air Force. Big shiitcgic boutbeis still be (-lit back hc 50 per (.(.lot. to a force of (300 B-:53 and B-.55 bombers. There still be less emphasis on air power rl,nl,ralls. except where it is ue_ed(d to lielp support eroond tntlPs in battle. Missile force. 'I-lus gets till- roairt (mphasis, ssitll (lie Air I orcc ;old \avv controlling at least I,S1)1) i11ter- contiuc[till ballistic missiles. Included will he 950 solid-fueled \tintttt?into in hardened silts and (i.56 Pal;u'is missiles aboard -il stibmariu(s. Also coining: a new medium-range missile to be fired from mowing tracks, and a nl,sw ad- 13--pt of 1 Oi'tc,e Photo A MINUTEMAN IS LAUNCHED To stand guard: 950 more sainted I( "B\1. details of swbit'li are "ecrtt.. The chief danger. "()lit principal cu11t-ern iii the wars ahead most be the (Lingers of all ICBM or suhmarine- I,ttinched missile attack.- Mr. \Ic\a- tniuu said, ".111(1 till' main thrust of our efforts should be redirected to meet these risiiii thic;tts. "Although the Soviet t-oioi than now base. or 50)11 achiese, the capability to place in orbit bomb-c:a-rsing s,itel- lites, there does not appear to he any ON THE WAY: LOWER MEAT PRICES C111C:1GO - Ilottseswiwes app.uient- h ('an look fcrwird to lower prices for beefsteaks mld roasts at till, meat counter. l'or farmers. prices al-cads haws (bopped. "I'hc price of choice I.tt steers, at the end of January, had fallen it full 55 from the three-year high of 5:33 it hnndredsweight in November. \larketin_t experts sin- the price de- cline is likely to continue into the spring. According to the .Agri(oliore I)ep.mitinent, farmers Lase 13 per cent more cattlc fattening ill their feedlots tba11 they had a sear ago. A recent spot check of meat prices in supermarkets showed some good buys in seek-end "specials." lu (.iiicagu, one big grocers chain offered rotted steak reduced from 95 rents to 79 cents it pon11d, sirloin steak both $1 09 to 89 cents, and porterhouse steak Irom $1.39 to 98 cents. Sass an official of the chain: 'If the predictions ;Le right, not only the Cat- tle market. but the hog market is go- ing to he somess hat softer. At the same time, we're beading into tilt- usual big spring supply of broilers and frying chickens. -1'hc outlook is for lower prices on most kinds of meat at the grocers stole. logical reason for them to do so. since there are much more efficient svays of deliscring nuclear warheads. But we cannot ignore the possibility of that kind of threat arising in the future." WILL HOFFA'S UNION BE PUT OUT OF BUSINESS? 16'--151/1.A"GTOy - Teamster boss lames B. Iloffa came to \Vashington Pebrnarw I to tell the house Labor Committee his troubles. 'I'hc I'eainstei's Union no longer can find insurance firms that are twilling to bond its officials, \Ir. Ilofla said. And, under the Lai drum-Griffin Act. the union can't operate unless its offi- cials are bonded. 11 the situation doesn't char ge soon, \Ir. Ilofla said. "'T'here will be uo strike benefits. -I'ht-re swill be no bills paid. . . . ..his is just the latest attempt to pit the Teamsters out of business." \Ir. f Ioff.t accused Attornev General Bohert 1'. Kennedy and other officials of pitting pressure oil insurance firms. But till, labor leader conceded lie had no personal knossled(,e'' of uns Gov- ernmcot officio] approaching am- bond- ing company. Gostrnme11t officials, including the Attorney General, base maintained that the Teamsters' difficulties had nothing to do with official "pressures.,, Instead, one official told Com,ress, the trouble etas stein from the fact that ".t number of Teamster officials have had difficulties with the lass." (front Page continued on page 8) Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 App.Fea006/3: CIA-RDP65B00383R000200230060-1 t2'3n; Y3yfk, "~ ?x1AsS UY4,y Ffi+SlArb z si '' b FS #~s 'ie~yrt?nZ'4aY ~ ~ in3 F~'fi~bl.% ~ & ~ ~3~L ~1t Ada ~ fln "We're not getting enough reorders from our out-of-town customers" Solution: Use Long Distance to make more frequent sales contacts! Every salesman would like to visit his out-of-town accounts more often. And many are doing it- by using Long Distance phone calls as a supple- ment to selling in the field. Timed to fit customers' buying cycles, Long Distance can help you cover your market more thoroughly, produce extra business and stay ahead of competition-at minimum sales cost. Many business problems are really communi- cations problems. And they can be solved by effective use of Bell System services: voice ... written ... or data. Talk with one of our Communications Consult- ants. Just call your Bell Telephone Business Office. BELL TELEPHONE SYSTEM Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 HIr F e CIA-RDP65B00383R000200230060-1 FRO OF THE WEEK U. S. ATOMIC TESTS: OFF, THEN ON AGAIN 1t'ASII1\Y;TOV - .\ sequence of events affecting U. S. unclear tests: On fannarN 36, President kenned- ordered suspension of urtclcrgrouncl tests in Nevada, ill the hope unit this ssonld facilitate test-n;ui negotiations R? von ks Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Why does the Volkswagen have 4 forward speeds? The VW has 4 forward speeds because 3 wouldn't be enough and 5 would be one too many. The 4 forward speeds let you get the most out of the engine without straining it. when you're on the highway. Just to make it easy, all 4 gears are synchromesh. You can shift up, down and sideways without crunching. But maybe more than anything else, As one VW owner said, You feel you national sport. Lots of people are paying fancy prices for 4-speed stick shifts, just to get in on the fun. On the VW, one of the world's smooth- est transmissions is standard equipment. So even if you don't fall in hi t y o uv with driving again. ' least you're not lets the engine relax land live Ion er) Shiftin r n paying extra Approved For Release ~66t/bV~1 vP' ('A-kbMB00383RG00-l0028QOi6G4e. And without swallowing up a lot of gas. 1st gear gets you off to a running start. And 4th gear is actually overdrive; it Size is your advantage in this plant location service When you come to that management decision on locating a plant, there is a sound reason for you to remember this big "A" for Allegheny Power. Why? Because this company, covering a five- state area, is big enough to know a vast region as only an electric utility can know it. With no bias for a single town or state, Allegheny offers impartial facts to in- dustry. Search for the right location for your firm extends far and wide to match your needs in materials, markets, labor, tax structure and transportation. The map shows the five-state region in the center of America's markets ... in the center of materials for industry. The area has skilled labor, and training pro- grams for special skills. There is ample water for processing now ... and in 1980 or even 2000. The big "A" is also a symbol of a vital point: objective accuracy of plant location data from Allegheny Power is backed by all the integrity of this major electric utility. If your firm has an expanding future, it may be here in this key area of America, with all its materials, its manpower and markets. ALLEGHENY POWER SYSTEM, 320 Park Avenue, New York 22, N. Y. Monongahela Power Company... The Potomac Edison Company... West Penn Power Company. Investor-owned electric light and power companies. Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Avis is only No.2 in rent a cars. So why go with us? We try harder. (When you're not the biggest, you have to.) We just can't afford dirty ashtrays. Or half-empty gas tanks. Or worn wipers. Or unwashed cars. Or low tires. Or anything less than seat-adjusters that adjust. Heaters that heat. Defrosters that defrost. Obviously, the thing we try hardest for is just to be nicc.To start you out right with a new car, like a lively, super-torque Ford, and a pleasant smile. To know, say, where you get a good pastrami sandwich in Duluth. Why? Because we can't -afford to take you for granted. Go with us next time. The line at our counter is shorter. Approved For Release 2004/06/23 : CIA-R Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 PEOPLE OF THE WEEK DEFICIT ADVOCATES Economists Heller and Gordon Lead-off men in the campaign to get the Administration's tax-cut program through Congress were two New Frontier officials who helped formulate the theory that a federal deficit now means a bal- anced budget later- Walter W. Heller, Chairman of the President's Council of Economic Advis- ers. Kermit Gordon, former member of the Council who took over in January as the new Director of the Budget. As members of the Council, the two men helped write a report last year on which the Administration's tax and budg- et policies are based. A report on these policies appears on page 32. Mr. Heller and Mr. Gordon were first to testify when the joint Economic Committee of Congress began a study of the tax-cut proposals. Mr. Gordon, a 46-year-old former eco- nomics professor at Williams College, told the Committee that a balanced budget now would lead to a general eco- nomic decline, bigger deficits later. An increase in taxes to balance the 1964 budget, he said, "would ... depress production, employment and purchasing power. . . ." And a cut in spending, he said, would "tend to produce a sharp de- cline in gross national product which might even get as high as 50 or 60 bil- lion dollars a year. . . . Either way, Mr. Gordon said, unem- ployment would increase-probably to as much as "10 per cent of the labor force." Mr. Gordon's testimony outraged Sen- ator Harry F. Byrd (Dem.), of Virginia, chairman of the Senate Finance Com- mittee. He called for the removal of Mr. Gordon. "A man who thinks a balanced budget would be a catastrophe does not have the frame of mind to direct the budget of the United States Govern- ment," Senator Byrd said. Mr. Heller said the key to faster eco- nomic growth lay in "a sustained rise in demand." The tax cuts, he said, would do this by putting 8 billion dollars per year back into the disposable income of individuals. By 1965 or 1966, he said, the increased consumer spending would add several times 8 billion to the gross national product. Cuts in U. S. spending, however, would wipe out the effect of the tax reductions, Mr. Heller declared. "A deficit is an in- evitable part of the stimulus," he said. (People of the Week cont. on p. 16) Approved For Re -Wide World Photo Dean Harlan McClure of Clemson's school of architecture talks with Harvey Gantt A NEW SEMESTER-A In South Carolina, the last holdout against court-enforced school integration, a Negro has been admitted to Clemson College. He is 20-year-old Harvey Gantt of Charleston, who won a court order for his admission. Mr. Gantt registered on January 28. Heavy precautions had been taken by State officials against disorders and vio- lence. But the event was accepted calmly by the students, and the State. And in the spotlight of national attention that turned on Mr. Gantt, he was revealed as a tall, serious young man, intent on get- ting an education. Son of a civilian mechanic at the Charleston Navy Yard, young Gantt was NEW NEGRO STUDENT raised in a religious home. He is active in church work, as are both his parents. He graduated from high school with honors, was a star athlete, a competent musician. In two years at Iowa State University, before quitting to attempt to enter Clemson, he had a B average. Mr. Gantt has been active in the Na- tional Association for the Advancement of Colored People, but he is not regarded as a zealot. His decision to seek admis- sion to Clemson was a personal one. "I am happy," he told newsmen, "to know that this is going to give other Negroes an opportunity to go to Clem- son. But my main purpose here is to get an education." In Mississippi, James H. Meredith de- cided to stick it out for another semester at the State university. The 29-year-old crusader for civil rights is the only Negro attending a pub- lic school for white persons in Missis- sippi. He was enrolled last September un- der court order, and to the accompani- ment of rioting. For four months, U. S. marshals and soldiers have guarded him on the campus. More than 300 troops are still stationed there. Officials estimated it costs the Government $4,500 a day to keep him in school. Mr. Meredith, shunned by most stu- dents, harassed by some, said early in January he might quit. And there were reports that he was in scholastic trouble. On January 30, he told a news con- ference he would return to "Ole Miss." "I see signs," he said, "that give me hope. . . ... Also, his grades were appar- ently adequate for readmission. Next day, he registered without incident. James Meredith, shown discussing his return for another term at "Ole Miss" Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 PEOPLE OF THE WEEK VIETNAM VICTORY IN THREE YEARS? Victory over the Communists in South Vietnam is in sight-but three years away-reports Adm. Harry D. Felt, com- mander of U. S. forces in the Pacific. At a news conference in Washington, Admiral Felt cited favorable trends to back his prediction. Among them- e Armed attacks by Red guerrillas have fallen from a weekly average of 118 a year ago to about 50 now. The attacks are seldom of battalion size any more. ? In recent months, Government forces have killed five Communists for every one of their own lost in combat. ? Since September, the Reds have been losing more weapons than they have captured. They now are short of USN&WH Photo The Shah of Iran "LEGAL REVOLUTION" Voters Support Iran's Shah Shah Mohammed Reza Pahlevi of Iran is a new kind of royal politician. He out- promises his political opponents and beats them at the ballot box. On January 26. peasants, workers and women turned out in droves to endorse the Shah's program of "legal revolution." The program calls for breaking up feudal estates ; an end to serfdom ; profit sharing by industry; a vast educational program, and new electoral laws. Landowners, businessmen, some Mos- lem religious leaders, and politicians of the National Front called for a boycott of the referendum. There were some riots, some arrests. But the boycott failed. Al- most 5.6 million Iranians voted for the program, fewer than 5,000 against it. The Shah came to power in 1941, when Britain and Russia occupied Iran, forced his pro-German father to abdicate. He has survived an assassination attempt, a coup by nationalist Mohammed Mossa- degh, and constant Soviet pressure. Many of the key reforms had already been decreed, were theoretically in effect. The Shah himself had given away most of his land to peasants, endowed a foun- mecicine and food. Communist fighters are defecting at the rate of 50 a week. ? The Diem Government now controls 51 our cent of the population, compared with no more than 30 per cent at one time. Some river routes closed for years by the Communists now are being kept open, and Vietnamese rice exports are on the rise. The 60-year-old naval officer has corn- manded U. S. forces in the Pacific since 1958. He is the man in over-all charge of U. S. military efforts in Southeast Asia. There still are serious problems in Vietnam, he said. But his was the most optimistic official report from there Amer- icans had heard in some time. elation to boost education. But real prog- ress had been snail-slow. The referendum clearly has given the Shah new authority. Reforms may come falter in Iran from now on. SPLIT IN FEDERAL AGENCY Power Commissioner Leaving Howard Morgan has asked President Kennedy not to reappoint him to the Federal Power Commission. Reason: Mr. Morgan, a former Oregon public-utilities regulator, finds himself too often at odds with a majority of his fellow commis- sioners, Mr. Morgan was named to the Com- mission in 1961 for a term that expires next June 22. He has frequently dissented from FPC rulings, and his opinions in those cases indicated he did not think consumers were getting enough protec- tion from the FPC. In his letter to the President, Mr. Mor- gan voiced some sharp criticism of the FPC-and regulatory agencies generally. Ile warned that only men of courage, character and broad vision should be named to such agencies. "Ordinary men cannot administer 'hose laws today in the face of pressures generated by huge industries," Mr. Mor- gan said. "Utility regulation ceases to be or never becomes a protection to the ,onsuming public. Instead it can easily become a fraud upon the public and a protective shield behind which monopoly may operate to the public detriment." FPC Chairman Joseph C. Swidler de- fended the Commission, said it had been .,more active and worked more for the public benefit in the last year and a half . . . than any FPC in history." -Wide World Photo Adm. Harry D. Felt BACK IN GOVERNMENT FDR, Jr., Gets Commerce Post Once more, a Roosevelt has been named to a sub-Cabinet post. President Kennedy picked Franklin D. Roosevelt, Jr., to be Under Secretary of Commerce, replacing Edward Gudeman, who re- signed. Both Mr. Roosevelt's father and great- uncle-Theodore Roosevelt-began their Washington careers as Assistant Secre- tary of the Navy. Franklin, Jr., has been active in poli- tics. He won election to Congress from New York three times, was Democratic nominee for State attorney general in 1954. In 1960, he campaigned for Mr. Ken- nedy. Now 48, he has been dividing his time between a New York law practice, -UPI Photo Franklin D. Roosevelt, Jr. a Washington auto agency, and a cattle- breeding farm near Poughquag, N. Y. Mr. Roosevelt and his three brothers were familiar Washington figures while their father was President. James, now 55, is serving his fifth term as a Repre- sentative from California, Elliott, 52, is a Miami, Fla., businessman. And John, 46, a New York investment banker, is active in Republican politics. Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 PINCH BY HAIG & HAIG, LTD.. BLENDED SCOTCH WHISKY, 86.8 PROOF. BOTTLED IN SCOTLAND. RENFIELD IMPORTERS, LTD.. N. Y. Not at all. This patrician among Scotches gets along famously with the most plebeian of ice- cubes. Once you pay the price for Pinch, no fur- ther special treatment is required. Pour it as you would any Scotch. But there the resemblance ends.There's brawniness and bravura in the taste of Pinch, just as the Highlanders of old intended. By all odds, Haig and Haig Pinch is the most lux- urious Scotch a man can enjoy. (No wonder peo- ple get those expensive notions about ice-cubes!) A ople who prize Scotch Pav the Price for Pinch? prove or a ease 2004/06/23 : CIA-RDP65B00383R000200230060-1 Inside the dritwers of this 'l"alkar [''ile- 1LL;ter* every inch of ;pace is (!rei'.ti.tiib/1 uurl N.,(,/)/v brcutr.wth(e drawer; expy deadlines already set. '['It(- United Nations now is "caretaker.. of \Vest Ncw (:ninea. A t-. N. Army. composed nminly of Pakistani troops. plans to hand over West New Gtninea to Indonesia ou or about May 1. Sukarno Inas asked the V. N. to dc- fiver West New Guinea to Indonesia right now. I'll(, U. N. is looking into his request. But Britain and outer members of the U. N. feel that Sukano is merely anxious to move into New Guinea before he begins an all-out military operation against British Borneo. Malaya's Tengku Hahman and the .un- thorities of Sarawak. Brunei and North Borneo plan to get the Madavsi,ut Fed- eration going about August After this Federation beconnes a fact. Sukarno's talk of "liberating" the British Borneo territories will sound rather empty. since the Federation itself will be run by \Ialayaus, not b\ Europeans. Sukarno's worry. What worries Su- karno now is that the U. N. might decide Indonesia is "unfit" to run West New Guinea it the Indonesians get involved in an attack on British Borneo. Sukarno also fears that British Borneo might get away from him and into the new Fed- eratiou of \lalassia unless he acts fast. If it does come to it war over Borneo the Indonesian leader will have much in his favor. Thanks largely to Khru- shehev, Indonesia has it Navy and Air Force with real striking power. Russia has sent Indonesia about 100 MIG-15, 17 and 19 jet fighters phis at I' ast it dozen long-range \lIG-2I jets. Also in Sukarno's Air Force are 20 IL-28 jet bombers and at least 10 `I'U-16s. The 'IV-16 is it jet bomber with it range of i earls' 5,(1(1(1 miles. Pride of the Iulouesian Navy is it 19,000-ton cruiser of the Sr:erdloc class. "I7tis warship, as well as two Riga-class I igates also supplied by Russia, has mis- sile capability. In addition, the Indone- sian Nan'v has 2(1 submarines, it dozen of I will long-range Soviet vessels, plus sev- ens modern destroyers. The Indonesian Army of 350,00(1 reg- a l:u's has amphibious tanks, artillery car- rcrs and at least one hatters of Soviet around-to-air guided missiles. There are both Russian-made and U. S.-made sea and air troop transports to move Indo- nesia's soldiers to war. Motive for Sukarno. Indonesian of- ficials, obedient to Sukarno's will, al- r''.ulv talk about applying it policy of oulrontatiion" toward the British and \Ltlavans over Borneo. Lest there be doubt about just what the "conlronta- I oil" policy means, this was ]tow Sukar- no described his technique for getting Ilntch West New Guinea. Selected para- troopers and guerrilla-warfare Special- irk from Indonesia's armed forces are ptnshed into the arras Sukarno wants. 'I hey' "canlroot? the owners of the real c;tatc whether Dutch in Ness' Guinea or British in Borneo--ss'ith force. \Vlny does Sukarno avant British Bor- ueu' 'I'll(' three territories, Sarawak, Bru- nei and North Borneo. have pretty much v hat tlne rest of Indonesia's scattered is- SUKARNO holds crowds spellbound by hurling defiance at nations opposing him lands have-oil, rubber, copra, timber and great undeveloped wealth in min- erals and raw materials, Most observers here believe Sukarno wants British Borneo "because it's there" -because the Indonesian leader would rather dabble in empire building and world power politics than face his real troubles at home. When experts are fired. Indonesia is deep in economic troubles, largely be- cause of mismanagement-or no man- agement. Oil, normally the No. 2 export item, is doing well in the hands of British, Dutch and U. S. producers and marketers. Hub- bcr, though still No. I export of Indone- sia, is falling off fast, like tin. Dutch technicians were ousted long ago and Indonesian administrators failed to maintain rubber plantations or tin dredg- ems. Al] through the Indonesian economy there is a pattern of mismanagement, inefficiency and inexperience. Sukarno's Indonesia owes the Soviet Union about 1 billion dollars-mainly for arms. Even the arms-happy Sukarno is worried about this one-sided bill and has shown signs of cutting down on arms buying. The combined debts of hnlo- uesia to Western nations may total an- other billion dollars. Funding of these debts now cats up nearly one quarter of Indonesia's annual earnings of for- eign exchange. Inside Indonesia, and particularly on Java, Sukarno's personal prestige and popularity with the masses remain high. At 61 the President still is a spellbinder, capable of swaying great crowds as the self-styled "Bung (Brother) Karoo, Tongue of the Indonesian People." Again and again in crises past he has told his people, "We don't care about in- ternational opinion." That is still Sukar- no's theme today. Reputation: ruthlessness. Outside Indonesia, Sukarno has earned a repu- tation among neighbors and 'esterners of complete political ruthlessness. IIc considers Malaya a "lost province- of Indonesia and scorns the Philippines, which lie considers dominated by the U. S. For Sukarno and many of his fol- lowers, all of Southeast Asia is no more than the tail to the Indonesian cornet. Everywhere in Southeast Asia today you find deep concern over the unpre- dictability of Sukarno's will, his plans to use his power and his vaulting ego. At this time all(] for the immediate future Sukarno appears to be the main source of trouble in this part of the world. As such, Sukarno helps Russia and the Com- munists, hurts the U. S. [END] 48 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Report to business from B. F. Goodr%cJ'r Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 BFG to the rescue when rubber throats choked up That sea-going tanker gulps its 41/4-million-gallon cargo through rubber hose. The hose is so big and so much of it is used, the tanker can be fully loaded in less than a day. But with the hose previously used there were problems. The hose strangled on some of the stuff it had to handle. Benzene and toluene, for example. These petrochemicals attacked the inside of the hose. They made the rubber swell and blister, then buckle and crack. Before long, the hose had to be replaced. Then BFG engineers went to work on the problem. They analyzed and evaluated scores of ingredients, experimented with many rubber compounds, and made dozens of tests. The outcome? An entirely new compound forthe hose lining. But BFG product improvement didn't stop there. The rest of the hose was redesigned, too. Using nylon cord instead of stiff fabric made the hose stronger, yet about 20Jo lighter and noticeably more flexible. The big ques- tion: How would the hose react in service? No sore throat was the verdict. The improved B.F.Goodrich hose has been at work on the Gulf Oil Corporation's docks at Port Arthur, Texas, for two years without showing any sign of failure from the corrosive petrochemicals. Today, B.F.Goodrich makes hose to carry just about anything. Fact is, we make more hose and more different kinds of hose than anybody else. And, as in the case of Gulf, when a customer needs a special hose to solve a problem, we go all out to develop one that'll do the job. Putting rubber, plastics, textiles or metals to work to help make your business better is the business of B. F.Goodrich. If we can be of help to you please write the President's Office, The B.F.Goodrich Co., Akron 18, Ohio. Omy one nian conies around this ..satellite" compressor station on our natural gas pipeline . . . and lie's it caretaker-for this station is un- manned. Its operation is regulated by push buttons from 30 miles away. It is one of it growing number of satellite stations on our system, some of which are located as far as 1200 miles from their control centers. These electronically-controlled power units provide another economical way to meet the day-to-day needs of our natural gas customers. As pipe- liners of energ, we make use of every tool that can help reduce the cost of moving energy from source to market. Automation, as represented by our satellite stations. is one of the most promising ways we have found to keep gas transmission costs down. Texas Eastern Transmission Corporation, Houston, Texas. 01 3110 IIICUS Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 World gram sRr&t~ FROM T H E C A P I T A L S O F T H E W O R L D PARIS .... MADRID .... WASHINGTON .... LEOPOLDVILLE....SALISBURY.... >11 Looks like a bad winter for people with "grand designs." President de Gaulle has blocked--possibly wrecked--President Kennedy's "grand design" for an Atlantic community with U.S. in the driver's seat. Simultaneously, De Gaulle knocked galley-west Prime Minister Macmillan's "grand design" to make Britain a major power on the continent of Europe. >> Then, while all this was going on in the West-- Khrushchev's "grand design" of a Communist empire, with himself in charge, fell apart when Mao Tse-tung refused to take any more orders from Moscow. Castro, in addition, shows signs of bucking Khrushchev's "grand design." Castro wants to launch one of his own for the conquest of Latin America. > > Sukarno is another with big ideas. His latest "grand design" (see page 46) threatens islands and sea lanes vital to the Philippines and Southeast Asia. Nehru is in the market for a new "grand design." His old one--a neutralist bloc headed by himself--collapsed when Red China swept into India. Nasser has revived his "grand design" of an Arab empire. But this time he is moving cautiously, sending troops into Yemen first, maybe Saudi Arabia later. Nkrumah of Ghana is not to be overlooked, either. His ambitions appear to involve a very large chunk of Africa, with himself at the controls. >> It's doubtful how far the minor-league "grand designs" will get. Big powers, if they will, can upset the plans of a Castro or a Sukarno. De Gaulle is something else again. He plays in the major leagues. Critics can't see how Europe can go it alone without U.S. to defend it, as De Gaulle's "grand design" implies, but many Europeans are willing to overlook this point. Vision of a Europe for Europeans--free of U.S. leadership, with American investment and influence sharply reduced--has its appeal in Europe. It may be De Gaulle has chosen just the right psychological moment for an anti-U.S. move. >> For example: The Paris weekly "Express," often critical of De Gaulle, on January 31 asked if it wasn't about time U.S. got out of Europe. Here's the way "Express" reasons: "Times have changed. Now it is not so much the Communists, but first of all, and much more strongly, the big bankers who are indignant about American investments in Europe... Since the Cuban affair ...the Americans and the Russians have understood that nothing... is more important than to avoid nuclear war.... Today the great alliance...is that of Moscow and Washington, to impose atomic peace on the world. They can only do it together, keeping for themselves the power of decision...." Issue of February 11, 1963, Volume LIV-No. 6 (over) U. S. NEWS & WORLD REPORT Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 WORLD GRAM,4~diiF t)Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 In other words: De Gaulle is justified in opposing U.S. in Europe if U.S. and Russia are about to make the big decisions for the world, including Europe. > > A De Gaulle-Khrushchevv "deal," then? It's just a rumor, that's all. Actually, what De Gaulle is busy doing now is making preliminary moves to pull the countries of Western Europe closer together--with Paris as the hub. Overtures have gone from Paris to detach Denmark and Austria from Britain's trade group, the "Outer Seven." These overtures are on the economic front. On the military front, De Gaulle is sending a mission to Franco's Spain. The reason: De Gaulle regards Spain as "Europe's rear guard," therefore to be tied into De Gaulle's concept of European defense. So, high-ranking officers from Paris are going to Madrid to plan co-operation with Franco's armed forces. Timing of this French mission can be expensive for U.S. It is just about to renegotiate agreements with Franco for U.S. bases in Spain. Franco may be encouraged by De Gaulle's sudden interest in Spain to raise the ante for U.S. Probably this wouldn't bother De Gaulle. He has begun work on his plan to push U.S. out of the Continent, make it a Europe for Europeans only. > > The Congo is relatively quiet. Now trouble is brewing elsewhere in Africa. Battle lines are being drawn between black-controlled Northern Rhodesia and white-controlled Southern Rhodesia. Britain is giving up its attempt to tie them together. As a result, the remaining white governments in Africa will tend to close ranks against a rising tide of African nationalism moving south. A white alliance is talked of. Likely members: South Africa, Portuguese Angola and Mozambique, plus Southern Rhodesia. By cable from Salisbury: "White attitudes are hardening all along the line. Blacks north of the line have the support of most of Africa, plus that of U.N., maybe U.S. as well. The pressure on white-run southern Africa is mounting." >31 At the United Nations, diplomats got a sample of what is to be expected from De Gaulle's France from now on out. De Gaulle dropped a monkey wrench into the machinery by which the U.N. hoped to pay for its armies abroad. U.N. bonds, you remember, were issued to pay the costs of keeping U.N. forces in the Congo and in the Mideast. U.N. members would be billed for a fair share of principal and interest on these bonds. But.... De Gaulle refused to pay the French share. Only $300,000 was involved, out of more than 5 million dollars, for the French share of U.N. costs. French argument is that France doesn't think a U.N. Army should be in the Congo and therefore won't pay. Russia, others are likely to follow De Gaulle's lead. Who then will back up U.N. bonds? U.S. has done most of it so far. >> U.N. military operations in the Congo, said Secretary-General Thant, are now at an end. The door is open, he said, for foreign aid to the Congo. Almost as a postscript to this announcement came another from Congo where U.N. experts are looking into the Katanga National Bank. Books examined showed 2.8 million dollars in hard currency. Amount actually found in the bank's vaults: 116.28. Shortage is "under investigation." Things like this Katanga incident make dispensers of aid uneasy. Natural fear is that the open door for Congo aid may turn out to be a swinging door, one that lets the aid go out about as fast as it comes in. 54 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News & World&Wd For Release 2004/06/23: CIA-RDP65B00383R000200230060-1 WHAT DE GAULLE SEES AHEAD Why did De Gaulle slam the door to Europe on Britain? From those close to him: The French President is looking far into the future. He sees changes coming-in Russia and in the U. S. So his goal is to build a "Europe for the Europeans." PARIS Charles de Gaulle, in the aftermath of his victory in repelling Britain's bid to join the European Common Market, is described as being "serene." France's President is said to be confi- dent that the crisis he set off will die down with time; that the Common Mar- ket may shudder but will not break up. In the end, De Gaulle feels, his position will be recognized as right and neces- sary for the creation of a truly united Europe. Many people ask: "Why does De Gaulle seem bent on shattering the very unity in Europe that he claims to be working toward?" The answer you get from officials close to him is this: "You must understand that De Gaulle is not a wily politician. He could have let the negotiations in Brussels drag on indefinitely until Britain was forced to break them off. There still were enor- mous difficulties to solve which we be- lieve were insurmountable for Britain at this time. But De Gaulle decided to end it. That's his style-attributable, in part, to his military background." French officials emphasize that De Gaulle is not excluding Britain from the Common Market for all time. In his view, however, Britain is not ready eco- nomically or politically to participate without reservations in the building of the Europe that he has in mind. Moreover, he is convinced that Britain will not be ready for Europe until the British break off their "special relation- ship" with the United States. Pique over missiles. Britain's "spe- cial relationship" with the U. S. took on new meaning for De Gaulle when Prime Minister Macmillan at Nassau last De- cember agreed to accept American Po- laris missiles and put its own nuclear weapons under the North Atlantic Treaty Organization. De Gaulle was quoted recently as saying: "Britain has agreed to turn its nuclear force into the hands of the U. S. She could have given it to Europe. Well, she has chosen." Those close to the French President say he was struck by the fact that on a vital matter of defense Britain made a long-term commitment within a few days. Yet, Britain had been haggling on economic matters in the Common Mar- ket negotiations for 16 months without, in French eyes, much progress being made. Observers here get the impression that De Gaulle somehow expected Britain to offer to work with France in the creation of a purely European nuclear force out- side NATO. When Macmillan, instead, chose to intensity co-operation with the U. S. in the nuclear field, De Gaulle decided to act. There is an economic side to the French position, too. Long before Brit- ain made the Polaris deal with the U. S., French officials frankly said they preferred that Britain enter the Common Market at a later date. The reason: The sudden arrival of Britain, followed by other candidates, would in the French view wreck the careful structure of eco- nomic integration. French spokesmen talk about the "dilution" Britain's entry would have -Wide World Photo "U.S. GO HOME?" This ban- ner headline appeared in the Paris weekly "L'Express" on Jan- uary 31 over a full-page picture of President Kennedy. Editorial in "L'Express" said: "Let no one have any illusions about it: France ... is behind De Gaulle." caused in Europe. Thus, De Gaulle feels himself to be the defender of Europe against a Britain which would have been nothing more than a "Trojan horse" of American economic and political dom- ination. The upshot is that De Gaulle expects Britain to enter a period of great diffi- culty. He foresees a Labor Government returning to power-only to fall in a few years, proving that there really is no workable alternative to joining Europe. Then, as De Gaulle sees it, a govern- ment headed by progressive, young Conservatives would emerge-capable and willing to transform Britain and take it into a united Europe. A U. S. withdrawal? Behind all these Gaullist predictions is a long-range vision-10 to 15 years ahead-of the way the world is moving. De Gaulle be- lieves it inevitable that the U. S. will sooner or later disengage from its com- mitments in Europe. Ile believes the NATO alliance, created in 1949, is com- pletely out of date. Since then, the whole power relationship between Eu- rope and the U. S. has changed. De Gaulle has long insisted that Rus- sia will become more moderate, so that some kind of East-West agreement will become possible. That's what he means when he talks of a Europe "from the At- lantic to the Urals." Will De Gaulle now make a deal with Russia's Khrushchev? French officials point to his rigidly anti-Communist rec- ord, his support of the U. S. on Cuba, his opposition to concessions to the Russians in negotiations on Berlin. Ile hasn't changed, these officials say. It's often asked where the U. S. fits into this Gaullist picture. The answer is that first priority in De Gaulle's mind is to get rid of American influence on the Continent so that Europe "can make itself." But he reportedly favors an alli- ance with the U. S. as long as it's under- stood that Europe-under French lead- ership-is free to go its own way. Right now, De Gaulle faces isolation. He does not believe it will last. If only for geographical reasons, not much can be done in Europe without France. For the immediate future there seems to be little that the U. S, can do to dis- suade De Gaulle. He regards U. S. ef- forts to form an Atlantic community as the "kiss of death" for a truly independ- ent Europe. If and when anyone can change De Gaulle's mind, it will be Europeans, not Americans. More on De Gaulle, page 53. U.S. NEWS & WORLD REPORT, Feb. 11, 1963 55 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 oved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News & Wol 'Keport IF IT'S ROCKEFELLER VS. KENNEDY IN 1964 Politicians already are counting the 1964 vote, State by State. They agree that Governor Rockefeller has a tall job ahead if he is to unseat President Kennedy. This analysis of trends in key areas shows why. ---Magnum Photo BEST BET for the Republican presidential nomination in 1964: Governor Nelson A. Rockefeller of New York. But it's almost certain that a fight will develop. more and more it's being taken for granted that in 1961, the race for the Presidency will be between: Nelson A. Rockefeller of Nev.- York for the Repub- licans and John F. Kennedy of Massa- chusetts for the Democrats. President Kennedy will be renomi- nated without challenge. Governor Rockeleller's victory at the Republican Convention will not come so easily. Richard M. Nixon appears to have re- moved himself from the running. Gov- ernor George Homney of Michigan and Governor \Villiam \V. Scranton of Penn- sylvania have a scant year and a half in which to establish themselves, and Mr. Romncy in 1964 will have re-election problems of his own. That leaves only one Republican who might have' it chance to challenge Mr. Rockefeller for the nomination. Ile is Barry Goldwater, the "conservative" Senator from Arizona. Senator Goldwater, however, comes up for re-election to the Senate in 1964. Under Arizona law he may not run for both the Presidency and the Senate. Mat iv Republicans keep referring to the Arizona Senator as the "ideal vice- presidential nominee." Senator Gold- water, however, has said flatly that he is not interested in second place on a Rock- efeller ticket. A party trend? Meanwhile, there are stirrings within the Republican Party which suggest to many of its leaders that it "conservative" trend may be run- ning within the party. Opposition to foreign aid is growing. There is little enthusiasm for constant expansion of Government spending, with budgets-and deficits-that do not stop increasing. Public opposition to big, long strikes scums to offer an issue to such a "conservative as Mr. Goldwater. The Senator has cultivated the "con- servatives" of the South. Reportedly there is much support for him there and in the Border States. Goldwater enthusi- asts think that, running against President Kennedy, the Senator might pick up 125 or so electoral votes in those areas. 56 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News & Worldvted For Release 2004/06/23: CIA-RDP65B00383R000200230060-1 They see additional votes to be had in New England, the Middle West and Mountain areas. But even if the Senator should score heavily in these States, as neutral observers see it, he still would be short of the 270 electoral votes needed to win the election, "Big" States. The consensus is that Senator Goldwater would have to score in several of the big industrial States, with large electoral totals. It is in these States that Mr. Kennedy is strongest. All this, in any event, is conditioned upon Senator Goldwater's winning the nomination. Here, general opinion is, he would run into a formidable obstacle. The Republican Party and its conven- tions came under the control of Repub- lican "liberals" with the nomination of Wendell L. Willkie in 1940. Thomas E. Dewey and Dwight D. Eisenhower de- feated Senator Robert A. Taft. Richard M. Nixon became acceptable to the "lib- erals" and, in 1960, he adapted his pro- gram-over Mr. Goldwater's objections -to the ideas of Mr. Rockefeller. The latter now is acceptable to the "liberals" and also to numerous "con- servative" party leaders who might actu- ally prefer Senator Goldwater, but see the New York Governor as the more probable winner. Totting up figures-. Those close to Mr. Rockefeller, and the Governor himself, are busy figuring out a combi- nation of States that would give him the needed 270 electoral votes. Usually, they begin with Mr. Rocke- feller's own State, New York. It has 43 electoral votes, biggest of all, The Gov- ernor, of course, is well known. He has been elected twice there. Now the Democratic organization in New York City is in disrepair, torn by internal feuding. The Republican or- ganization is firmly based on the party's control of the State government. Nevertheless, the expectation that Mr. Rockefeller would win in New York is firmly disputed in knowledgeable polit- ical circles. The State will be one of the great battlegrounds of 1964. Next, Rockefeller strategists turn to Pennsylvania and its 29 electoral votes. Mr. Kennedy carried the State in 1960 by 116,326 votes, getting 51.2 per cent of the total cast-a close result. Governor Scranton replaced a Demo- cratic predecessor last autumn. This gives the Republicans an opportunity to beef up their organization with extensive State patronage. Democrats are feuding in Philadelphia, and a blowup is ex- pected. Pennsylvania will be another battleground of 1964. With New York and Pennsylvania, Mr. Rockefeller would have 72 electoral votes. In Ohio, the Rockefeller forces have (continued on next page) Watch these five men when Republicans mobilize for the presidential- election campaign next year. They are expected to play key roles at the party's Convention and in the ensuing struggle to defeat President Kennedy. ARIZONA'S Senator Barry Goldwater, right, who may be in contention for the presidential nomination. His main strength lies in the party's "conservative" wing. -USN&WR Photo MICHIGAN'S Governor George Romney. He could give the party's cause a lift in his pivotal State. -USN&WR Photo CALIFORNIA'S Senator Thomas Kuchel, now being talked about as a vice-presidential possibility if Rockefeller gets the top spot. PENNSYLVANIA'S Governor Wil- liam W. Scranton could develop into a dark-horse presidential candidate. Mr. Scranton is pop- ular, has a big and powerful party organization in his State. -Wide World Photo OREGON'S Governor Mark O. Hatfield, below, is discussed as a vice-presidential possibility. He could help with the Western vote. -Wide World Photo Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News & Vf W ftor Release 2004/06/23: CIA-RDP65B00383R000200230060-1 continued from 1 [ preceding page l IF IT'S ROCKEFELLER VS. KENNEDY every reason to expect a victory. The State has 26 electoral votes. Richard M. Nixon carried Ohio by 273,363 votes in 1960. Last year a Republican defeated the incumbent Democratic Governor, giving the astute Republican State chair- man, Ray Bliss, a base for strengthening his already strong organization. Add Ohio, and the Rockefeller total is 98. President Kennedy took Illinois in 1960 with a bare margin of 8,858 votes. The big-city organization of Richard J. Daley in Chicago has weakened. Repub- licans are confident about 1964. The State has 26 electoral votes, which would give the Governor 124. Problem States. Rockefeller forces are aiming somewhat uncertainly at a prize of 21 electoral votes in Michigan. To win they would have to defeat the determined efforts of the United Auto- mobile Workers and the AFL-CIO. With IN THE WHITE HOUSE, President Kennedy and Governor Rockefeller confer. Next year, they may be facing each other in the presidential election. labor's help Mr. Kennedy took Michigan by 66,841 votes in 1960. Mr. Romney's victory, by 78,500 votes, last autumn was considered more. personal than political. In the same election a Democratic Representative-at-large was elected. The consensus is that Mr. Rockefeller has his work cut out for him, but with Michigan his total would be 145. In California, with 40 electoral votes, both sides will go all out. Opinions differ as to which will win, but are dominantly pro-Kennedy. Mr. Rockefeller has problems in Cali- fornia, where he is not too well known. There is a continuing row between-Re- publican rightists and those who are more to the middle of the road. The Democratic organization, despite some bickering, is anchored to the Democratic State administration. Some suggest that Mr. Rockefeller might help himself by making Senator Thomas H. Kuchel, a popular figure, his vice-presidential running mate, or by turning to Governor Mark O. Hatfield of neighboring Oregon. California went to Richard M. Nixon by 35,623 votes out of more than 6.4 million cast in 1960. These six big-city States will cast a total of 185 electoral votes in 1964. In all except Ohio and perhaps Illinois, there are serious doubts that Mr. Rocke- feller can defeat Mr. Kennedy. It is in these States that Mr. Kennedy perhaps is strongest. The electorate in- cludes millions of low-income voters, la- bor, Negroes, people of the Jewish faith, ethnic minorities to whom the Presi- dent's appeal is strong. There also are many Roman Catholics. Politicians ex- pect the latter to stand by the President, On the West Coast, Oregon, with 6 electoral votes, has Republican tenden- cies in national elections. Washington State, 9 votes, veers from side to side. Hawaii, 4 votes, went Democratic in 1960, and Alaska, 3 votes, went Repub- lican-both by a hair. Even if Mr. Rockefeller should take all six big-city States, the smaller States credited to him would leave his total a little short of the 270 needed for a ma- jority in the Electoral College. He would look to the South and the Border States to make up the deficiency. South: an enigma. What the South might do in 1964 is a politicians' enigma. Southerners like neither Mr. Rockefeller nor Mr. Kennedy because of their em- phatic stands on Negro rights. Nevertheless, expectations are that Virginia, 12 votes, and Florida, 14, might go to Mr. Rockefeller, with the possible addition of North Carolina, 13 votes. This would put him over. Politicians say that Mr. Kennedy could count on Georgia and Arkansas and that the Catholic vote makes him formidable in Louisiana. They also see his strength growing in Tennessee, which he lost in 1960-mainly, politi- cians think, on the religious issue. Texas now is generally credited to Mr. Ken- nedy. The Texas Poll of January 20 gives Mr. Kennedy 60 per cent, Mr. Rocke- feller 29, with 11 per cent undecided. Along the border, Mr. Kennedy is re- ported well entrenched in Maryland and West Virginia and gaining strength in Kentucky and Oklahoma. Politicians, studying these figures, think one conclusion is obvious: To win, Mr. Rockefeller must score somewhat heavily in the six big-city States where the going is toughest for him and the while simultaneously the religious issue power of the Presidency is greatest. that hampered him in 1960 has receded. For issues, Mr. Rockefeller is criticiz- There are States, however, to which irig Government secrecy in the Cuban Mr. Rockefeller can look more certainly situation and the President's stopping of for electoral support. On the basis of bomb tests. He agrees with most of the historical voting in presidential elections New Frontier social programs, but he he could expect to win in New Hamp- would insist that there be sufficient reve- shire, Maine and Vermont, with 11 votes, nue to finance them. This attracts "con- making his total 196. servative" support. In the Middle West there are Indi- Bets now: on JFK. Whether this ana with 13 votes, Iowa with 9, Kansas would be enough is sharply questioned with 7, Nebraska with 5,. the Dakotas in many political circles. In this century with 8-a total of 42. Wisconsin, 12, only two first-term Presidents seeking a and Minnesota, 10, would be less cer- second term have been defeated. Wil- tain. Excluding the latter two, this would liam Howard Taft was beaten in 1912 raise the Governor's list to 238. by the Bull Moose split in the Republi- In the Rocky Mountain States, Mr. can Party, and Herbert Hoover lost in Rockefeller might reasonably pick up 1932, due to the depression. A change 21 electoral votes in Colorado, Wyoming, in the economic situation could alter Utah, Montana and Idaho, giving him a forecasts. But, as of now, the betting is total of 259. on President Kennedy. [END] U.S. NEWS & WORLD REPORT, Feb. 11, 1963 58 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News & WdkJ"tFor Release 2004/06/23: CIA-RDP65B00383R000200230060-1 U. S. News i; World Report KENNEDY'S LATEST PLAN FOR AID TO SCHOOLS What about the Kennedy Ad- ministration's omnibus education bill for '63-will it fare any bet- ter than last year's? Here's a look at the latest mul- tibillion-dollar aid plan, item by item, and how it is being received in Congress. As with his tax plan, President Ken- ncdv has thrown into his school-aid plan just about every idea his advisers have hoeii able to think tip. Many items of the President's school- aid program already are in trouble with Congress. Of two dozen-with a price tag of 5 to 6 billions over a three-year period-the big new item most likely to get approval is the one providing federal aid to build college classrooms. Rua down the list and you find few other school-aid ideas that are not in trouble. As key Congressmen see it- Aid for teachers' pay. This one faces intense opposition because parochial schools would not benefit and for other reasons. Passage is highly doubtful. Aid for construction. Together with teacher aid, this idea would cost 1.5 bil- lions, making it the most costly of the new proposals. Federal money would help build public elementary and high schools in needy areas. Again, the re- ligious issue is a factor. Parochial schools want to share. There's also pressure to tie on an amendment requiring inte- gration in the new schools. Seems dead. Help for equipment. Idea is to con- tinue the present program of subsidy for science, mathematics and language- teaching equipment for secondary schools. Opposition unlikely. Aid for impacted areas. Extension of it current program to subsidize public schools in areas inundated by military families and federal workers seems as- sured. Cost: 1.5 billions over four years. But proposed changes, including addi- tion of Washington, D. C., to subsidy areas. are running into trouble. Grants for junior colleges. Outright federal grants are proposed here, to pay up to half the cost of building and equipping new, two-year "community colleges. The idea has considerable sup- port, but serious questions are raised as to why grants are involved instead of loans, as in the case of four-year colleges. l.'neertain as of now. College building loans. Proposed are I ederal loans of up to I billion dollars aver three years, to help finance aca- dcmic buildings. Unless the religious ssue blocks it, this proposal appears to have a good chance. Loans to students. Idea is to expand v 50 per cent the present national de- -USN&Wtt Photo CAMPUS ADDITION-Congress may ap- prove loans to build college classrooms tense student-loan plan. Fair chance of passage, unless talk of adding free schol- arship grants adds controversy. Insurance for bank loans. This plan- for federal backing to underwrite pri- vate loans from banks or colleges to students-has gotten nowhere in the past. Its chances of being approved this time are uncertain. "Work and study" program. Thisisa new proposal. The U. S. would pay half of student wages for part-time campus jobs. Little enthusiasm sparked in Con- gress thus far. Graduate fellowships. Idea is to in- crease the number of federal fellow- ships from 1,500 to 10,000 annually, and add 2,000 summer-session fellow- ships. F.ach pays $2.000 to $2,400 a year. Has some chance, but considered too big a jump by many. Technical schools. Donations of fed- eral money are envisioned here, to pay half the cost of building, equipping two-year, college-level schools to turn out technicians in engineering, science and health fields. Relatively new idea, its reception still uncertain. Aid for college libraries. A new Gov- ernment subsidy is proposed to build li- braries on campuses, stock them with books. Little reaction to this one. Graduate-school grants. Federal do- nations here would cover half the cost of building or expanding university graduate schools. First response in Con- gress: Why not loans, like those pro- posed for undergraduate buildings? Language centers. Proposed is a 50 per cent increase in a current program for language studies in colleges. Both public and private institutions eligible. Approval likely. Community libraries. This one is a new idea: federal funds for new libaries in cities and towns across the U. S. No quick approval foreseen. More extension courses. Off-campus education would be expanded by financ- ing bigger extension-course programs by land-grant colleges, State universities. Such a plan got nowhere last year, has an uncertain outlook now. Aid for adult education. Small fed- eral grants are proposed for programs of education up to the eighth grade for adults. Crowded out last year, proposal now has a 50-50 chance. Handicapped children. Grants of fed- eral money would provide special train- ing for teachers of deaf, blind, retarded and otherwise handicapped children. No real opposition; relatively little money involved. Vocational education. Half again as much federal aid is proposed to spur vocational training. Not controversial at this time. Teacher training. Several proposals are involved: (1) Direct payments to teachers to help pay for further school- ing. (2) Grants to colleges to expand teacher-training facilities. (3) Some spe- cialized training programs. (4) An ex- panded program to help prospective teachers finance their education. Pros- pects seem to be tied in with bigger school-aid programs, now in trouble in most cases. [END] 0 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 60 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Approved 00230060-1 "Profit? .Who needs it!" T O MANY AMERICANS these days, `Profit' has become an almost evil word. Yet everyone in the country favors a fast rate of growth for the U.S. economy. This is like being for transportation but against the wheel. Under our system, you simply can't have economic growth or material progress without profits. T AKE UNION OIL'S CASE. During the last 10 years, the public. demand for petroleum products in our mar- keting territory has grown from 885,000 barrels per day to 1,215,000. To keep pace with these growing needs, Union Oil has had to invest some $280,000,000 in refin- ing, marketing and distribution facilities alone. To say nothing of the even larger amounts we have invested in the search for more oil and gas reserves. HERE DID WE GET THE MONEY to do this? Part of Wit came from funds set aside to replace worn out facilities. Part of it came from net profits - slightly more than half of which we customarily plow back into the business each year. And part of it we borrowed. But, in any case, these necessary facilities would have been impossible without profits. Union Oil Company of California SO WOULD A LOT OF OTHER THINGS. Taxes on profits of U. S. corporations provide our Federal Govern- ment enough revenue each year to pay the entire costs of operating the Departments of Agriculture, Commerce, Health Education and Welfare, Labor and State; plus the Atomic Energy Commission, C.A.B., F.H.A., Veterans Administration and the National Aeronautics and Space Administration. W ITHOUT PROFITS, all our nation's research and development on new and improved products would falter. In fact, practically every product your family uses owes its existence to profits. And every one of the 681/2 million jobs in the country-public or private - is dependent on profits. O WHEN YOU'RE TALKING about our nation's eco- S nomic growth and welfare, profit is not just a part of the system, it is the very foundation of the entire American economy. You simply can't have one without the other. YOUR COMMENTS INVITED. Write: President, Union Oil Company of California, Union Oil Center, Los Angeles 17, California. MANUFACTURERS OF ROYAL TRITON, THE AMAZING PURPLE MOTOR OIL Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 It comes hissing out at 2,000 feet a minute. Then it's sheared, bent, shaped and joined into cars and cabinets, freezers and fryers, washing machines, and scouts' canteens. To keep fine steel products within the reach of everyone, steelmen rely on Timken tapered roller bearings . . monsters weighing four times as much as your car, yet precise to a hair's breadth. They roll twenty-four hours a day under millions of pounds of pressure, yet require QUALITY TURNS ON only the simplest, most economical lubrication system. ?1962 THE TIMKEN ROLLER BEARING COMPANY, CANTON 6, OHIO. MAKERS OF TAPERED ROLLER BEARINGS,-FINE ALLOY STEEL AND ROCK BITS. Approved For Release 2004/06/23: CIA-RDP65B003$3R00020023006;0-1 rich steel, they roll for years without costly shutdowns. ` ' ROLLER BEARINGS And because they're made of case-hardened nickel- TAPERED TIMKEN Where in the world do we go from here? Could be Bangkok. Or Stockholm. Or Cape Town. Or anywhere else in the free world. And why not? Language is no barrier to A-M equipment. Our machines process business data eign languages just as fluently as they do in English. That's why you'll find A-M equipment doing so many different things every day in every country. Right now, A-M offset machines are duplicating business reports in Bangkok. A-M data recorders are helping Swedish wherever business is transacted - business of every type and size. Wherever you do business - an A-M man is ready to apply his broad experience and wide range of equipment to cutting your data processing and other paperwork costs. Why not call him, now? Addressograph-Multigraph Corporation ' A l * i b \ e FoF P , d f d d ? 6 2'004/'0'6'/23: C`IA~JRDPE85BOO383R00020023OO6O p F T H E motorists charge their gasoline purchases. Other A-M ma- chines are processing data in Cape Town. A-M people, too, are located all over the world to provide on-the-spot assistance Approved F r Rel s 004/0 / `'rend of rme aI-- R 230060-1 2300 N Street, N.W. Washington, D.C. Business activity is climbing, but slowly. That's the latest report of the Commerce Department after scanning the record for December, early January. People's income continues to show gains. In January there was a sharp jump because of payments of dividends on veterans' life insurance. Rising incomes, however, are about the only sign of substantial advance. Industrial production has been level for seven months. Factory shipments of durable goods showed little change. Orders for durables, however, showed a dip in December. Retail sales are running at a record clip but show few gains. It's this sluggishness that the Kennedy Administration hopes to overcome by tax cuts and federal spending. Improvement will not come quickly, however, as a result of these devices, even if Congress approves. Nonfarm employment in January totaled 61.7 million. That was down a little more than seasonally from the December total of 63.5 million. After seasonal adjustment, the Labor Department notes that nonfarm employment has shown little change since last May. That's another sign of sluggishness. Unemployment in January was 4.7 million, against 3.8 million in December. Rise in number of jobless was a little more than usual for the season. Unemployment rate, seasonally adjusted, was 5.8 per cent of the labor force, against 5.6 per cent in December--not a great change. 1962. Unemployment in January, 1963, was at the same rate as in January, As far as the problem of the jobless is concerned, there was no improvement over the year. And little improvement is expected for the months ahead. Total output in 1962 came to 554 billions, up 35 billions or almost 7 per cent from 1961 Output this year is estimated at 578 billions, for a gain of a little more than 4 per cent. That will not be enough to get the plant use, production and employment that the Kennedy planners want. Official view, in brief, is that economic sluggishness will not be corrected this year. Moderate improvement in business is reported for January by the National Association of Purchasing Agents. That is about what was expected. Production gained, but the purchasing agents said the advance slowed. New orders however, are reported by the purchasing agents to be running ahead of production. That's regarded as a healthy sign. Orders had been smaller than production for three months. Order gains are a sign that plants will be kept busy in the future. Drops in the backlog often signal drops ahead in output. Inventory trimming, which had been going on since June, came to a halt in January. The purchasing agents said that, while some 23 per cent of firms (over) Written for the issue of February 11, 1963, Volume LIV-No. 6 U. S. NEWS & WO p~ 'For Release 2004/06/23: CIA-RDP65B00383R000200230060-1 TREND OF AMERICA g Approve For I fig 16611 ]23q)CIA-RDP65B00383R000200230060-1 reporting were still cutting back stocks, an equal number were building stocks. Chances are that more inventory building will be done as industrial buyers begin to hedge against the possibility of strikes. Purchasing agents, however, still seem to be cautious in making forward commitments. Construction industry continues at near-boom levels. Total new construction in January ran at a rate of 62.6 billions a year, after seasonal adjustment. That was a gain of 1 per cent above December and 5.8 per cent above a year earlier. Private building activity accounted for the January increase. The gain was sparked by a rise, seE-.sonally adjusted, in residential building. Home building, in fact, was at a record for the month, 13.6 per cent ahead of a year earlier. Other private building also gained in January, after slipping for four successive months. Industrial building continued to decline. Public construction dipped in January for the third successive month. Activity in public building was down 10.6 per cent from the October record and 2.7 per cent below a year earlier. Drop in highwa building accounts for most of the decline in public works. Outlook is for declines in building activity over the next month or two because of the bitter winter. Return of milder weather should bring a large gain in public construction and perhaps a moderate upturn in housing starts. Orders for cutting-type tools rose 10 per cent in December to the highest point in 13 months. Shipments in fourth quarter were the highest since 1957. Bookings for fabricated structural steel also rose in December. The American Institute of Steel- Construction reported the highest volume of orders since January, 1956. December shipments were high. Rising orders for tools and structural steel may indicate that business firms are raising their sights on investments. If so, the improvement in general business activity this year may be greater than now is expected. U. S. News & World Report's INDEX OF BUSINESS ACTIVITY m LATEST WEEK LATEST WEEK 110.1 MONTH AGO 110.7 YEAR AG0 YEAR AGO 115.7 J A S O N D I J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J WEEKLY 1959 196(D 1361 1962 1963 Sluggishness in the economy shows up on the latest chart of indicators. The base of the index has been changed from a 1947-49 average to a 1957-59 average. That lowers the index numbers on the chart, but does not affect trends. 64 U. S. NEWS & WORLD REPORT, Feb. 11, 1963 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 THEY CALLED THE MAN WITH THE FASTENING FACTS ... SPEE PACKING 50%, SAVED $1500 YEARLY IN MATERIAL COSTS When Algonquin Marine found that the costs of shipping its wrap-around, contoured motorboat windshields were running too high, the company turned to Bostitch stapling for a solution. By using a flat, scored corrugated board for the outer packaging and sealing the container with a portable Bostitch stapler, the total packaging operation was speeded up 50%, according to James Gassien, Shipping Department Manager. Besides time savings, the material-cost savings have been substantial. Cartons that took 44? worth of material each with the old method, now only take 8? worth with Bostitch. In addition to this operation, the company has standardized on stapling wherever possible in all its shipping operations. To see how you can save time, money, and manpower in your shipping room, call THE MAN WITH THE FASTENING FACTS. He's listed under "Bostitch" in most phone books--or write direct. Fasten it better and faster with pproved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 202 Briggs Drive, East Greenwich, R. I. Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 Approved For Release 2004/06/23 : CIA-RDP65B00383R000200230060-1 U. S. News 9 World Report "SEAPORTS" FOR OKLAHOMA A "seaway" through Oklahoma and space-age factories on the plains-they were part of Senator Robert S. Kerr's plans for his State. He reached many goals before his death. What he sought for Oklahoma-and got-is a saga of the new West. Reported from OKLAHOMA and WASHINGTON, D. C. '['his is the story of stli;ti one Senator etas able to do for his Stale. Senator Robert S. Kerr of Oklahoma hall it dream. Ile sass- it "prairie fleet' of barges plying up and dostn the me- anderin