THURSDAY. APRIL 22, 1954
Hensel Blast Adds
To McCarthy Row
WASHINGTON, April 21 (?P)—The ready-torgo public investigation of the McCarthy-
Army row broadened at the last minute today to include new charges leveled against—and
denied, by—Asst. Secretary of Defense H. Struve Hensel.
The Senate investigations subcommittee named Hensel, a top aide to Secretary of De
fense Charles E. Wilson, a principal in the long-heralded hearings which will open at 10 a.m
tomorrow in a blaze of television lights and worldwide pub''
Dulles Talks
Vital Issues
With Bidault
PARIS, April 21 (R)—Secretary
of State John Foster Dulles flew
into Paris today and almost im
mediately held talks with French
Foreign Minister Georges Bidault
on the vital issues which will con
front the Western powers at the
Geneva conference.
Dulles and Bidault will be
joined by British Foreign Secre
tary Anthony Eden tomorrow for
further talks on what the Big
Three will do when they meet the
Communists at the Geneva meet
ing-on Indochina and Korea open
ing on Monday.
Frenchmen Excited
Frenchmen were excited over
the prospect for negotiating a
peace in Indochina, where the
hard-hit defenders of Dien Bien
Phu awaited the arrival of French
parachute troopers being trans
ported.by American planes.
Dulles was determined to oppose
any Soviet move to turn the Gen
eva meeting into a "Big Five" con
ference with Red China. Dulles'
view is that the Chinese Reds are
in the role of invited participants
and not as a big power instigator
of the meeting. He has said he
was going to Geneva to seek an
honorable peace in Indochina and
a free, united Korea.
Review Western Reply
Dulles, Eden and Bidault will
review also the Western reply to
the March 13 proposal by the So
viet Union that Russia be consid
ered for NATO membership in re
turn for the United States being
admitted into a Soviet-proposed
European security system.
On Friday Dulles and the other
13 foreign ministers of the North
Atlantic Treaty Organization will
meet in Chaillot Palace for an ex
change on problems around the
world.
No detailed agenda was pre
pai'ed for the NATO meeting, but
it was expected that Dulles would
be called on to explain further his
proposal for a 10-nation military
alliance of Southeast Asian na
tions patterned along NATO lines.
DickensonAdmitted
Guilt, Army Says
WASHINGTON, April 21 (JO
The Army read into the record of
Cpl. Edward S. Dickenson's court
martial• today a statement by
Dickenson that he cooperated
with the Communists "in appre
ciation" for, being released from
jail,as a prisoner of war in Korea.
The statement was accepted in
spite of objections by the defense
that it wa s obtained illegally
shortly after Dickinson's repatri
ation last November.
Earlier, another returned war
prisoner glared at Dickenson and
swore he saw him push an ailing
POW downstairs after the sick
man asked for food.
Dickenson, charged with col
laborating with the enemy to get
favors for himself, testified an
Army intelligence officer named
"Captain Bert" had lied about the
manner in which the statement
was obtained.
Polio Vaccine Ready
HARRISBURG, April 21 (IP)—
The State Health Department
hopes to have a supply of polio
vaccine on hand by Saturday for
inoculations of school children in
the second grade.
The drug, administered on a
test basis throughout the nation,
will go to children in Pennsyl
vania's Centre, Clinton, Mercer
and McKean counties.
Sen. Joseph R. McCarthy (R-
Wis.) .charged yesterday Hensel
masterminded an Army report
blasting him, and tried in other
ways to discredit the committee,
so as to head off a probe of Hen
sel's own "misconduct" and "pos
sible law violations."
Hensel called these charges
bare-faced lies and dared McCar
thy to repeat them when senator
ial immunity wouldn't protect him
from a lawsuit. The controversy is
over Hensel's connection with a
ship supplying firm while he held
high posts in the Navy Depart
ment during World War 11.
Wilson Supports Hensel
Today Secretary Wilson called
Hensel "a competent, honest man"
and said ,"of course not" when
asked by newsmen if Hensel did,
in fact, mastermind an Army re
port accusing McCarthy and aides
of putting on pressure to get fav
ors for a drafted associate.
At least one subcommittee Dem
ocrat, Sen. John L. McClellan (D-
HOUSTON, April 21 (JP)—Sen.
Joseph R. McCarthy (R-Wis.)
asserted today that "devilishly
clpver plans" are being laid , to
sabotage the Red-hunting efforts
of the Senate investigating sub
committee which he heads.
• He called the Senate hearings
which begin tomorow into his
dispute with the Army a "tele
vision show of Adams versus
Cohn."
Ark.), questioned whether the
Hensel affair had anything to do
with the charges and counter
charges the group is supposed to
investigate -in the ,hearings.
Asked for Statement
But after two closed meetings
the subcommitee announced it
regards him (Hensel) as a princi
pal in this case - arid asked him—
as McCarthy, Secretary of the Ar
my Robert T.' Stevens and the oth
er principals have done—to file a
statement of his position.
McClellan said • later •he and
other Democrats on the subcom
mittee came to the conclusion
Hensel should be , named a prin
cipal because "the accusations
against him are just as serious as
those against other Army people"
in the case.
McClellan said . the various ac
cusations hurled by the McCarthy
forces would add up to a conspir
acy to obstruct the subcommittee,
if they are proved. And he said it
should be determined whether
Hensel "was a part of what I
would call this alleged conspir
acy."
Hensel said he will be available
for questioning any time he's.
called. Beyond that,, he said, he
doesn't plan to do anything ex
cept file "a simple denial" of Mc-
Carthy's charges.
Wilson Reports On
WASHINGTON, April 21 (IP)--
Secretary of Defense Charles E.
Wilson said tonight the mounting
retaliatory capability of our air
units gives full warning to any
aggressor of the possible conse
quences of rash actions on his
part.
In his semi-annual report, Wil
son also said U.S. strategy is
aimed at handling little aggres
sions as well as big ones.
In discussing the "long pull"
concept of national defense, Wil
son appeared to be countering
criticism of the "massive retali
ation" policy.
Adlai E. Stevenson, 1952 presi
dential candidate, for example has
expressed the view this policy is
not fitted to meet local aggres
sions like the one in. Korea. He
has raised the question whether
it wouldn't leave the U.S. only
two choice Touchi - ' oFt rt
rnonuclear holocaust" or letting
THE DAILY COLLE6IAN. STATE COLLEGE PENNSYLVANIA
Reds Submit
Biggest Budget
For Approved
MOSCOW, April 21 (7P) —The
biggest budget in Soviet _history
went before Parliament for ap
proval today Finance Minister
Arseny G. Zverev said defense ap
propriations-17.8 per cent of the
total—"strengthen the defense ca
pabilities of our state."
The defense figure of 100,300,-
000,000 rubles was almost 10 per
cent less than the 1953 allotment,
which in turn, was a reduction
from 1952. But western observers
in Moscow said it was difficult to
measure a Soviet Union budget,
especially defense appropriations.
They said this is because the state
owns and operates the country's
entire economy,• and fixes its own
prices on any equipment needed
for the armed forces.
Under an official Soviet ex
change rate of four rubles to the
dollar, the budget figures in dol
lars would be: income $142,950,-
000,000; outgo $140,675,000,000;
surplus $2,275,000,000; d e f-e ns e
$25,075,000,000.
Zverev accused the United
States of blocking East-W es t
trade, especially with the Soviet
Union. The finance minister said
this policy damaged Capitalist
countries more than it did Rus
sia. He said the Soviet Union was
working not only for peace but
for increased world trade.
Norwegian First Lady
OSLO, Norway, April 21 (IP)
Church bells tolled an d guns
boomed a last salute today as the
nation's first lady, Crown Princess
Martha, was entombed 'in the roy
al crypt at the ancient Akershus
' Fortress.
the Reds get away with local
aggressions..
Wilson, discussing the review
of the whole military situation by
the Defense department and Joint
Chiefs of Staff, said:
"It sought a military strategy
that would deter both a major war
and local aggression and, at the
same time, could be implemented
and maintained without under
mining the social and economic
foundations of the nation."
He wrote that:
"The new long range guidelines
for the military security of the
United States place increased em
phasis on land and carrier based
airpower and on the integration
of new weapons into our strategy
and tactics. At the same time,
they provide for the maintenance
of strong, well-trained and well
equipped naval forces. . . Mili
tary strength is becominggreater
through -the development of in
creased firepower on land, on sea
and in the air and through de-
Supports
Builder. Hits Group
Studying FHA Loans
WASHINGTON, April 21 (?P)—A home builders' spokesman, de
nying that Federal Housing Administration loan abuses are wide
spread, called on the Senate banking committee today to avoid
hysteria in its housing probe, and was charged with "trying to
crucify this administration."
Committee Chairman Homer E.
Capehart (R-:Ind) told President
R. G. Hughes/of the National As
sociation of Home Builders his
organization should give the com
mittee full support. Instead, he
said, it had been warning against
holding investigations in a "cir
cus atmosphere."
Two Charges
The exchange came as the bank
ing committee called industry wit
nesses to tell what they know of
charges (1) that builders obtained
excessive loans for r apartment con
struction and pocketed some of
the FHA-insured money as quick
profits; and (2) that householders
had been fleeced by some home
repair salesmen operating under
another FHA loan program.
The apartment loan abuses are
alleged to have continued under
the Eisenhower administration.
Ask For More Funds
Meantime. Housing Administra
tor Albert M. Cole asked a Senate
appropriations subcommittee for
$250,000 in additional funds to fi
nance the administration's own
probe.
He asked $lOO,OOO for a special
investigation of past irregulari
ties, and another $150,000 to set up
a permanent investigating and
policing unit under the Housing
and Home Finance Agency which
he heads. This unit, he said, would
look into activities not only of
the FHA but also all other hous
ing agencies.
Cole said the special investiga
tion would look into each of the
7000 projects built under the mid
dle income apartment program.
Authority for starting such proj
ects expired March, 1950, he said,
but some are still under construc
tion.
Wants To Clear Innocent
He said he wants to investigate
them all to clear the innocent as
well as to detect those who he
said were unethical. Many of the
cases may not have been illegal,
he said.
Revenue Commissioner T. Cole
man Andrews testified yesterday
that 1149 apartment builders
reaped $65 million in quick prof
its, largely by getting loans for
more than the cost of the buildings
they erected. Cole said more cases
may be found.
But ,Hughes told the banking
committee today he thought the
charges were overdrawn.
"The impression that the gov
ernment has lost millions of dol
lars and that tenants have been
charged excessive rents is, in my
opinion, erroneous," he said.
Store Strike Violence
Results in Two Arrests
PITTSBURGH, April 21 (A)—
Two disorderS stemming from the
146-day old department st or e .
strike resulted today in the ar
rest of two men.
Police charged, Leslie Williams,
28, with assault 'and battery and
Francis Peitz, also 28, with mali
cious mischief.
Defense
ployrnent of our forces in a way
that will make them more readily
available whenever and wherev
er they are needed."
In . his report covering the lat
ter six months of last year, Wilson
also saw "a steady increase in the
military strength of the entire
free world."
Center Stage
Now . thru May 22
Players
original musical revue
"PICK UP STICKS"
Reds Press
Near Fort
In Indochina
HANOI, Indochina, April 21 (W)
—Vietminh besiegers squeezed Di
en Bien Phu's French Union de
fenders into a shrinking circle of
red-dish mud about 1% miles
across today. The rebels kept dig
ding ever closer to the barricades
in a downpour of rain.
Besides tightening their band of
flesh and steel around the fort in
apparent preparation for one final
mass assault, the Communist-led
rebels were cutting down the
"drop zone" by their constant dig
ging. It will be harder for -rein
forcements and supplies to be
parachuted into the fort.
Increasing Pressure
Late tonight a French high com
mand spokesman said the Viet
minh troops were increasing pres
sure against French positions in
tie northwestern corner of tM for
tress. Masses of Vietminh fight
ers were moving slowly but stead
ily toward the barbed wire de
fenses, he said.
But reinforcements were on the
way. Huge U.S. Air. Force troop
cargo transports were airlifting
French parachute troops from Eu
ropean and North African areas
8500 miles to bases in Indochina
outside the combat zone.
Some Troops Dropped
Some of these troops will be
dropped into Dien Bien Phu, au
thoritative sources said in Paris.
The Seventh Battalian French
paratroop battalions usually num
ber about 1000 men had been
alerted since Sunday to leave.
The French army _secretary,
Pierre de Chevigne, said sending
the reinforcements would permit
the use of troops already in Indo
china for quick reinforcement of
heavily outnumbered Dien Bien
Phu.
Nixon States
Indochina Plan
DES MOINES, April 21 (A 3 )—
America will not keep its boys out
Of Indochina by telling the Com
munists they .can come in there,
Vice President Richard M. Nixon
declared tonight.
The Eisenhower administration,
he said, believes that a position
of strength in Asia and Indochina
is the only way to avoid war.
"'The purpose of our policy,"
the vice president added in an ad
dress prepared for a state Repub
lican party gathering, "is to avoid
sending our boys to Indochina or
anywhere else to fight.
"We believe a strong policy has
the best chance to accomplish that
purpose."
Earlier, on his arrival here by
plane from Cincinnati, where he
spoke last night, Nixon told news
men he thought that the war in
Indochina can be won by French
and Indochinese troops with "the
aid the United States has given
and is giving."
PAGE THREE