fHURSDAY. FEBRUARY 24. 1985
of State Stresses
Formosan Policy
Secy
Firm
BANGKOK, Thursday, Feb. 24 C/P)—U.S. Secretary of State John
Foster Dulles reportedly stressed a firm policy on Formosa yesterday
before the Southeast Asia defense conference as a deterrent to Com
munist aggression.
Dullea also told the closed meeting the United States has a mo
bile force in Asia adequate to cope
with trouble anywhere in the
Orient.
Eisenhower
Challenged
On Ladejinsky
WASHINGTON, Feb- 23 Wb-
A newsman challenged President
Dwight D. Elsenhower today to
say what he will do about Secre
tary of Agriculture Ezra T. Ben
son's “unsubstantiated” charges
against Wolf Ladejinsky.
Clark R. Mollenhoff of the Peg
Moines Register and Tribune first
brought the matter up at the
President's news conference. He
asked what steps the President
would take if an offiolal “would
call an individual a member of a
subversive organization” when
there was no evidence to support
the charge.
The President said he wouldn’t
answer hypothetical questions but
he said if Mollenhoff had any in
formation about “wrongdoing” he
should submit it and it would get
“the finest kind of consideration.”
Three hours later Mollenhoff
went to the White House with a
letter he had written to the Presi
dent He asked Press Secretary
James C. Hagerty if he could see
the President. Hagerty said he
would make sure the President
got the letter. Elsenhower was out
playing golf.
The letter dealt with the case
of Ladejinsky. former agricultural
attache at Tokyo. Cleared by the
State Department, Ladejinsky was
ousted by the Agriculture Depart
ment as a security risk. But later
he was cleared again by the For
eign Operations Administration
and given a key job in Viet Nam.
Mollenhoff recalled that for
eign aid chief Harold Stassen said
an FBI Investigation showed Lad
ejinsky was never a member of
a subversive organization.
Adenauer Threatens Expulsion
Of FDP from Government
BONN, Germany, Feb. 23 (£•)—
Chancellor Konrad Adenauer to
day threatened expulsion of the
Free Democrats (FDP) from his
four-party government unless
they support the Paris agreement
to Europeanise the Saar. A po
litical crisis threatened .as the
Free Democrats, the number two
party, replied defiantly.
Adenauer's ultimatum was de
livered on-the eve of a parliamen
tary debate on the Paris accords
to arm 500,000 West Germans in
Western defense. The Saar deal,
unpopular among many West Ger
mans, is among those accords. The
French insisted upon it as part
of a package deal.
Adenauer’s backers had hoped
—until today—that some of the 47
FDP deputies would support the
treaty to place the German-speak
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Near the windup ot the first
closed session on ways to deal
with communism in Southeast
Asia, Dulles Was understood to
have stressed that a soft policy,
on Formosa would only Invite
further Red aggression.
Britain’s Sir Anthony Eden, in
formed sources said, omitted men
tion of Formosa in his opening
speech. He did support Dulles on
tne need of an immediate meeting
of military advisers for the South
east Asia defense treaty, often
called SEATO.
In Washington, President
Dwight D. Eisenhower told his
news conference that Dulles plan
ned to confer with Eden at Bang
kok on the Formosa situation.
Peiping radio, in a broadcast
heara in Tokyo, said Dulles was
"expected to try to persuade oth
er SEATO members to link South
east Asian security with Ameri
can strategy in the Formosa
Straits," It was quoting foreign
press reports.
The broadcast repeated that
"the Chinese people regard fpr
eign intervention, in any form, in
the liberation of Taiwan-Formosa
- as a hostile act.
Carlos P. Garcia, Philippines
vice president and foreign affairs
secretary, reportedly told the
opening session his country back
ed a Formosa policy of "fight if
we must.”
. He urged members to carry out
immediately both military and
economic phases of the treaty
they signed at Manila,
Dulles, in his opening speech,
is reported to have said if trouble
arises in Southeast Asia, the Unit
ed States already has the mobile
force there to act.
His remarks were taken to
mean the United States is not
seeking a permanent type military
force In Asia, as in the North
Atlantic Treaty Organization.
A British source, summing up
Wednesday’s opening session,
said the talks by delegation heads
were only exploratory.
ing border state under a neutral
commissioner until the final peace
treaty with Germany is Written,
Free Democratic waverers now
may rally behind their party lead
ers in voting against the pact.
Adenauer’s Christian Democrats
alone, however, have 244 seats in
the 487-seat House. The govern
ment bloc also numbers 27 of the
Refugee party and 15 of the Ger
man party.
The Bundestag tomorrow starts
a three-day debate on the vital
second and third-final-readlngs
of the treaties under the threat of
Communist demonstrations.
Squads of state and city police
will take up posts at strategic,
points near the building at dawn
tomorrow. All streets leading to
Parliament will be closed and
guards inside the building heavily
strengthened.
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Churchill Urges
Softer Policy
Towards U. S.
LONDON, Feb. 23 Prime
Minister Winston Churchill —in
an apparent softening of his own
government’s policy—warned to
night against pressing the United
States too far in insisting on sur
render of China’s offshore islands
to the Reds.
He said there was no question
of Britain being involved mili
tarily in defense
of the offshore
islands and that
“we s h o u 1 d be
careful of what
advice we should
offer to our
friends and al
lies.”
In a move ap
parently directed
at smoothing
Britlsh-American
differences on the
issue, C h U rchill w | Bpton Churchill
spoke sharply to
Laborites clamoring for surrender
of the islands to Red China.
Churchill gave a written state
ment to the House after he ver
bally described as "scornful” Red
China’s refusal to attend a Se
curity Council meeting on For
mosa. He turned down a Laborite
suggestion to intervene person
ally with v ßed China’s Premier
Chou En-lai.
At the same time Labor’s Na
tional Executive Committee kept
the controversy in the foreground
by urging that Red China be given
membership in the United Na
tions as a way of settling the
explosive Far Eastern situation.
Churchill’s remarks tended to
back off somewhat from an earlier
stand taken by his government.
Foreign Secretary Anthony Eden
has said publicly Britain regards
the offshore islands as belonging
to Red China and has privately
urged U.S. Secretary of State
John Foster Dulles to engineer
an evacuation of the islands by
Chinese Nationalist troops to help
bring about a quick unwritten
cease-fire.
The British had been advocat
ing getting the Nationalists off
the coastal islands of Matsu and
Quemoy. as a way of easing the
threat of war.
lk«-Rqyburn Clash?
WASHINGTON, Feb. 23 (/P)—
Are the channels of. communica
tion clogged between President
Eisenhower and his old friend,
House Speaker Rayburn (D-Tex.)?
And is the , Speaker somewhat
miffed?
The President voiced chilly dis
belief of any such idea at his news
conference today. But Rayburn’s
reaction left the question still
open.
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Democrats
Is Blasted
WASHINGTON, Feb. 23 Dwight D. Eisenhower
blasted the Democrats’ $2O-a-person tax cut plan today. He called it
the height of “fiscal irresponsibility.”
He also accused the plan’s backers of lacking the courage to sub
mit a separate tax-cutting bill. Thus he challenged them to aban
don their present tactic of putting
it forward as an amendment to
another tax measure backed by
the administration.
In a aeries of vigorous and
sometimes heated statements at a
news conference, the President de
clared a further tax cut at this
time—while the government is
spending more than it takes in—
would cut the value of the dollar
and hurt the nation’s economy.
“We simply cannot have this
kind of thing in responsible gov
ernment,” he declared.
But Eisenhower said a tax cut
should be possible next year if
the budget deficit is reduced.
The tax controversy popped up
as soon as the President strode
into his meeting with some 225
correspondents.
Eisenhower said that “by hard
work” his administration has re
duced the budget deficit from
nearly 10 billion dollars to around
2% billions.
"Now,” he said, referring to the
tax cut proposal, “we are going
back to deficit spending, the most
insidious thing that can happen to
a free economy, and particularly
in its bad effect on low income
groups.
‘ln the last two years the cost
of living has varied less than
one-half of one per cent. From
1939 to 1993 the dollar went from
100 cents to 92 cents. It is that
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established.”
Declaring a stable dollar is
more important to lower income
groups than to others. Eisenhow
er said: “Rich people can buy
equities . . . and as the dollar
goes, cheapens, the amount of dol
lars they have invested goes up
and up. But the fixed income
group, the man who is buying an
insurance policy, I repeat, or look
ing forward to living on his pens
ion, is the one that is hurt”
Red Islands Bombed
TAIPEI, Formosa, Thursday,
Feb. 24 (iP) Nationalist planes
bombed Red islands yesterday
north and south of the menaced
Nationalist garrison on Nanchi
shan Island.
Signs multiplied that the out
post 140 miles northwest of For
mosa may have to be abandoned.
Unemployment
WASHINGTON, Feb. 23 (£>)—
The Senate Labor Committee to
day unanimously approved a res
olution calling for an investiga ion
of the causes of unemployment in
the coal, railroad and other indus
tries.
PAGE THREE