WASHINGTON—FEDERAL ENERGY CHIEF William E. conduct a joint news briefing at the State Dept. yesterday
Simon gestures as he and Secretary of State Henry Kissinger Kissinger left for the Mid-east last night.
Kissinger expects trip to
produce Mid-East talks
WASHINGTON (AP) Secretary of
State Henry A. Kissinger said yesterday
he expects his trip to the Middle East to
produce a basis of negotiations between
Egypt and Israel on disengagement of
their forces near the Suez Canal.
Kissinger agreed at a news conference
with the suggestion that there is a
danger that he would eclipse the role of
the countries in reaching an agreement.
But he said "in this crucial phase it's
most important to get the process
started."
Kissinger was scheduled to leave at
midnight for Egypt with a brief stop
along the way in Spain. He said he will
take to President Anwar Sadat of Egypt
some "general ideas" about
disengagement and then, in Israel, see
whether a concrete proposal for
disengagement can be reached.
Offering himself as willing to shuttle
between Sadat and the Israeli Cabinet,
Kissinger said he would then gladly go to
Aswan. where Sadat is recovering from
bronchitis to nail the proposal down.
The secretary said he did not expect
Israel and Egypt actually to reach an
agreement during his third swing
through the Middle East since the Israeli
war. "The more likely outcome of this
Federal development
of resources urged
HARRISBURG (AP)—U.S. Sen.
Richard Schvveiker says a federal
corporation should be created to
stimulate development of domestic
energy resources.
At a news conference here yesterday,
the Pennsylvania Republican said he is
drafting legislation that would set up a
Federal Energy Development Corp. to
grant loans for development of shale oil,
anthracite coal and atomic energy.
Industries participating in the
program would be licensed and
regulated such as public utilities, he
said.
"We're going to show the oil sheiks we
have some energy monopolies in this
country too and we're going to invest in
them," Schweiker said.
He estimated the cost at $5 billion or
$lO billion. But he said it was a cheap
price to pay to avoid an expected $2O
billion trade deficit in 1980 when the
country will depend on the Middle East
for almost 40 per cent of its fuel
supplies.
Schweiker said the federal
government would pay for the program
but eventually would be repaid by
industry.
"My plan relates to building a supply
Today is the last
day to drop courses
and preregister
for Spring term
=Collegian
would be that negotiations could be
conducted" in Geneva, he said.
After flying all night, Kissinger will
reach Madrid in midafternoon for a two
hour meeting with Pedro Cortina, the
Spanish foreign minister. The talks are
likely to focus on continued use of an air
base outside Madrid and a nuclear
submarine base at Rota.
Kissinger is due in Aswan tonight and
will stay over until tomorrow evening
when he flies to Jerusalem to see
Premier Golda Meir and Israeli cabinet
ministers.
On other matters Kissinger said
J. The administration would seek in a
series of meetings with consuming and
producing nations a global approach to
sources of energy supply and the pricing
of gasoline and other products.
2. France, in working out an
agreement with oil rich Saudi Arabia
may be helping itself, but in the long run
faces the prospect of being sucked into
an international depression as demands
for energy escalate beyond supply.
3. The underdeveloped nations stand to
suffer the most from the energy
shortage, with all the foreign aid that
•lias flown to them over the years
to counteract this monopolistic
situation," he said.
The proposed corporation, which
Schweiker described as quasi-public,
would allow the energy industry
reasonable profit but prevent it from
price gouging.
Schweiker said he estimates 80 per
cent of the Senate will support his
proposal.
Once the corporation is functioning, he
predicted, Middle East oil suppliers will
have to come down or lose their markets.
Bill may merge
By JERRY SCHWARTZ
Collegian Staff Writer
The 13 Pennsylvania state colleges
and Indiana University of Pennsylvania
will merge into a university larger than
Penn State if a bill currently in the
drafting stage becomes law.
The bill, which is being written by a
student-faculty-administration com
mittee, would unite the state-owned
schools into what has been tentatively
named "The Pennsylvania
Commonwealth University" and would
give them the same status as the
University of Pittsburgh, Temple
University and Penn State.
According to Paul Nickels, professor
at Millersburg State College and a
member of the drafting committee; the
change is not a drastic one.
"We already have a board that
oversees the operation of the state
colleges as a system," Nickels said.
"What we are basically doing is
removing the board from the direct
supervision of the Department of
outstripped in one day by a hike in oil
prices.
Substantial progress has been made
between ihe - United States and Panama
toward a statement of principles to guide
a new Canal Zone Treaty.
Kissinger did not dispute reports that
the United States and Israel are near
agreement after Defense Minister
Moshe Dayan's trip here last week on an
Israeli withdrawal from the Suez Canal.
But he said he was not bringing any
specific propoal to Sadat.
Once the "Initial phase" of working
out a disengagement is past, Kissinger
said his own role in the peace conference
would be reduced. He said he would
participate "only when there is a
deadlock."
Senior diplomats disclosed-yesterday
what they described - as the five main
elements of Israel's plan for the
disengagement of Israeli and Egyptian
forces in the Suez Canal zone.
Israeli Foreign Minister Abba Eban
said in Jerusalem that Israel is awaiting
Kissinger's visit to that capital before
deciding on final proposals for
separating forces.
The informants here said the Israeli
plan is this:
Withdrawal of all Israeli forces
from their positions on both sides of the
canal to a line 12'2 to 18 miles eastward,
just short of the Mitla , and Gidi passes.
A cutback of Egyptian forces on the
east bank to a point that would reduce it
to token proportions, with an estimated
400 Soviet-built tanks and other offensive
armor removed.
- Demilitarization of all intervening
Sinai territory plus the establishment of
a string of United Nations observation
posts between the Israeli and Egyptian
positions.
Action to clear the Suez Canal of its
obstructions as Israel's withdrawal
proceeds, in order to reopen the
waterway to the ships of all countries,
including Israel. Parallel operations
could be undertaken to restore the war
battered towns along the canal.
Education."
The bill also will provide for a
chancellor who will serve in a capacity
similar to that of Penn State's president,
Nickels said.
Nickels said the move is being made
primarily for financial reasons, and that
it will help •centralize the system and
make it more efficient. He said the
Commonwealth University also would
save time and work by submitting only
one budget to the state legislature,
rather than 14.
Irving Murphy, a member of the
drafting committee and of the current
board that governs the 'state colleges,
said the move would cut through the
bureaucratic red tape of working
through the Department of Education.
"We hope that the chancellor, who will
be conerned with only the state colleges,
will be able to give more attention to the
colleges than the Department of
Education, which is involved in all
education throughout the state,"
Murphy said.
To deal with energy crisis
Nixon asks meeting
By THE ASSOCIATED PRESS
?resident Nixon said yesterday
the energy crisis could bring about
"severe and irreparable damage" to the
world's prosperity.
In letters sent to the governments of
oil-consuming nations invited to a
Washington conference next month on
the energy crisis, Nixon said the fuel
shortage "threatens to unleash political
and economic forces that could cause
severe and irreparable damage to the
prosperity and stability of the world."
Secretary of State Henry A. Kissinger
said in Washington that the meeting
would be the first in a conference series
aimed at stabilizing the world's energy
balance and economy.
Nixon's letter, released in San
Clemente, Calif., said the situation has
produced — an historic crossroad" in
which nations "face a fundamental
choice that can profoundly affect the
structure of international political and
economic relations for the remainder of
the century."
Stressing a theme later brought out by
Kissinger, Nixon wrote:
"Two roads lie befOre us. We can go
our own separate ' ways, with the
prospect of progressive division, the
erosion of vital independence, and
increasing political and economic
conflict; or we can work in concert,
developing enlightened unity and
cooperation, for the benefit of all
mankind producer and consumer
countries alike."
AP wirephoto
Kissinger said diplomatic effort of
unprecedented scope is necessary to
deal with a global problem of
unprecedented size.
Kissinger said this effort seeks
international agreements or
understandings on the sharing of energy
technology among nations; efforts to
determine demand for energy; and
measures for conserving energy.
Beyond immediate problems,
Kissinger said, lay greater problems for
which "we have not even the beginnings
of an answer."
One serious problem, he emphasized
was the fate of developing, energy
consuming nations, all of whose foreign
aid would be wipedi out by the recent
price increase of foreign oil.
"Our estimate is that their bill may
approach $3O billion, which of course far
Mast: tuition matter of residency
Every state recognizes some
provisions to handle out-of-state tuition
rates. Whether or not these rules are
constitutional is a question which may
go unanswered for some time, according
to Yates Mast, University legal
counselor.
There have been about 40 cases
dealing with this issue in the past three
years, Mast said, and what it all boils
down to is a question of residency.
According to Mast, there are two
methods used by the courts in
classifying a situation as constitutional
or unconstitutional. The first involves
what the - courts call a fundamental right,
such as the right to vote. When a
situation arises involving the
constitutionality of a case where a
fundamental right is involved, Mast
said, the courts use a strict scrutiny test.
This means they study the case from
every possible angle and review all the
ramifications before deciding.
The second method involves what
Mast called a relationship test. Here, the
case does not involve a fundamental
right so the courts use any reasonable
facts to decide. In effect, this is a more
relaxed means of deciding.
The Pennsylvania Supreme Court has
never handled the question of the
constitutionality of out-of-state rates but
according to Mast, the most recent case
in Connecticut seems to set the trend for
such decisions.
The case is the Vlandis vs. Kline case
where Kline challenged the
14 Pa. colleges
The bill is being sponsored by the
Association of Pennsylvania State
College and University Faculties,
bargaining agent for the faculties of the
state-owned schools. Murphy said the
union has "altruistic motives, but they
also feel frustrated."
"They just don't know who they are
dealing with," Murphy said. "When they
negotiate with the college, they are told
to go to the department, and from there
to the Governor." Thetbill will remedy
the situation, he said.
As for the effect of the move on
students, Nickels said he believes there
will be very few initial changes. In the
long run, however, he sees several
possibilities, including a partial
specialization of some of the
"campuses" in certain subjects. "We
feel this will allow the poorer student to
attend a school that is noted for his
discipline," Nickels said
According to Nickels, the
Commonwealth University has been
patterned after the 'model of Florida
By MURETTA MURRI
Collegian Staff Writer
Friday, Anuary 11, 1974
Vol. 74, No. 82 12 pages University Pa*, Pennsylvania
Published by Students of The Pennsylvania State University
exceeds any of the aid flows that anyone
has ever projected," Kissinger said.
He said economic experts believe that
bill "cannot be paid."
He said the United States is in a strong
position, with its own energy resources
and a strong economy, to take care of its
own energy needs independently and
through bilateral agreements for
example, by making separate
arrangements with Arab nations.
However, he said such a narrow
approach, lacking regard for other
nation's energy patterns, would not be
wise in the long run.
"It could be that we will be driven to
this," Kissinger warned, but he said it
would be far better for the world's
nations to solve the energy problems
together.
Self-centered policies, he said, would
only weaken the economies of other
nations and in time the world economy
would suffer and the nations would learn
that "no nation can prosper in
isolation."
Kissinger said the United States could
achieve self-sufficiency in energy, and
perhaps even an energy surplus, within
10 to 15 years.
Once that happens, he said, the United
States would consider sharing its energy
with others.
To develop the long-range, global
energy policy, Kissinger said a series of
meetings was envisioned, beginning
with the Feb. 11 meeting announced
Wednesday by the White House.
He said the United States would not
object if the European nations already
invited ask other European
governments to participate.
The second stage, Kissinger said,
would be a larger meeting of oil
consuming nations, including the
developing countries and "other
interested parties."
The third step, Kissinger said, would
be a meeting of the oil-producing
nations, to take place within three
months after the Feb. 11 meeting.
Kissinger was asked whether this
diplomatic plan, aiming to create a
framework for managing the world's
energy flow and thus the global
economy, had any precedent.
Kissinger replied there was "no
precedent for this appraoch" and added,
"there is no precedent for this problem."
constitutionality of the out-of-state
tuition rates charged at the University of
Connecticut.
First the court ruled that education is
not a fundamental right and therefore
the university was in accordance with
the constitution in charging out-of-state
rates. The courts said education is not a
guaranteed right but when it is provided
it must be fair and equal.
The courts ruled in favor of Kline,
saying an institution must recognize
proof of residency in considering a
student for tuition purposes. That is, a
student who can prove that he resides in
the state where he attends school cannot
be charged out-of-state rates merely
because his parents live outside that
state.
Penn State students wishing to claim
residency have two avenues open to
Last day for free tax aid
Today is the last day the State
College School District will provide
information tables and free notary
service to students filing tax
exoneration forms in the HUB.
School district personnel will be
there from 12:30 to 4 p.m.
There are several notaries public
in State College who charge 50 cents
to one dollar for signatures, and
there is one in Bellefonte and in
Boalsburg.
State University, which is in its third
year of operation. Nickels termed the
Florida experiment "highly successful."
Nickels said the target date for the
introduction of the bill in the legislature
is March 1 and once there the bill will
receive a friendly reception.
"We have Gov. Shapp, Secretary of
Education (John C.) Pittenger, and both
the House and Senate Education
Committees backing us," Nickels said.
"You can't be much better off than
that."
Nickels felt the Commonwealth
University's only major opponent might
be Penn State. "They see us as a possible
rival, especially if money for education
gets tight," he said.
T. Reed Ferguson, vice-president for
Public Affairs at Penn State, denied the
assertion that Penn State might lobby
against the bill. "We only lobby for
things, not against them," Ferguson
said. "We're in favor of anything that
strengthens the state colleges."
He said the global energy problem was
not caused by the Arab Embargo on oil
shipments to nations considered friendly
to Israel, although the embargo
highlighted it.
He said more basic causes were a
worldwide growth of demand
outstripping energy supply, and the
large oil price increases imposed by the
Arab nations and then by other
producers.
Those prices, Kissinger said, "may
have a revolutionary impact on the
world economy," which could eventually
rebound against the oil producing
nations themselves.
He expressed understanding of the
Arabs' oil policies but appeared to
criticize them indirectly by referring to
the harmful effects of "decisions which
certainly did not take all of the
consequences into account."
He said the United States' approach
reflected the belief of President Nixon
and his top adivsers that no single
country and no single group of countries
consumers or producers can solve
the energy problem alone ,
The proposed meetings, he said,
"should not be seen as a confrontation
between the consuming nations and the
producing nations." but rather as an
effort to create a new framework for
energy management to "prevent
potentially catastrophic consequences."
Energy chief William E. Simon. also
at the news conference, said the
domestic energy problem had five
aspects:
The need to reduce energy demand
and eliminate waste in the United
States:
The need for "a new government
relationship" with the energy
industries;
The need to deal with world oil prices
in a way that maintains a healthy world
economy
Weather
Cloudy and cool today with rain of
variable intensity, high 35. Tonight
cloudy and cool with rain possibly
mixing with or changing to snow, low N.
Saturday mostly cloudy and a little
colder with a chance of some snow, high
32. Partly sunny and cold Sunday, high
V.
them. They can either live in
Pennsylvania in a non-student capacity
for one year before admission or they
can appeal their residency by showing
proof of their residency. This includes
tax records, property ownership papers
and a Pennsylvania driver's license.
There have been five cases of students
appealing their residency classification
since Penn State adopted its new
guidelines.
"The Vlandis vs. Kline case really
didn't decide anything," Mast said, "it
just threw the question back to one of
residency requirements." The big issue
here, he said. is classifying education as
a fundamental right and working from
there to decide whether out-of-state
tuition rates are unconstitutional. Action
in this direction is not in the immediate
future because of the conservative views
of our Supreme Court Judges, Mast said.
The Associated Students
Activities office in 202 HUB offers a
free notary service daily from 9 to
11 a.m. School District Business
Administrator Ralph Moyer said
some students did not receive tax
bills if they started school here in
September, or if they were not here
Fall Term.
Moyer added that some tax bills
are still at the post office because of
address changes, so some students
may receive bills next week.
I ::
--i • , • : ,- 1
/ 1
. , 2i,
4