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j Mostly sunny and rather windy with high 1 j about 80 today. Clear tonight with low | near 55. Tomorrow sunny with low hu midity. (Full report on Page A-3.) Midnight, 70 6 a.m. ..-66 11 a.m. --.77 j 2 a.m. .. 68 8 a.m. ---67 Noon_78 . 4 a.m. --_67 10 a.m._74 1 p.m._78 ; Late New York Markets, Page A-31. I Guide for Readers! Page After Dark_A-Z5 Amusements B-18 Cpmics _C-10-11 Editorial _ A-18 Edit'ial Articles A-19 Finance _A-31 F»ge Lost and Found A-3 Obituary _A-28 Radio _C-ll Sports _C-l-4 Women’s Section_B-3-6 An Associated Press Newspaper -v 97th Year. No. 239. Phone ST. 5000 , *★ WASHINGTON, D. C., THURSDAY, SEPTEMBER 1, 1949—SIXTY-FOUR PAGES. City Home Delivery. Dally and Sunday, $1.20 a Month, when a Sundays. $1 30 Night Pinal Edition. SI .30 and $1.40 per Month 5 CENTS Truman Says He'll Keep Vaughan* Larson Outlines Broad Program For Curbing Sharp Operators' Plans to Blacklist Firms Violating Contract Rules By Miriam Ottenbcrg A Government program to curb “sharp operators,” ranging from a virtual black listing of unethical firms to a code of conduct for Federal employes, was outlined to day by General Services Admin istrator Jess Larson. Mr. Larson W'as called before the Senate five-percenter inquiry to tell what he has in mind to eliminate the abuses aired in the Senate Subcommittee’s investiga tion of influence peddlers. After Mr. Larson completed his testimony. Chairman Hoey re cessed the hearing until some fu ture date to be determined by the chairman. At the outset, Mr. Larson ac knowledged that particularly in the surplus property program "un scrupulous operators” declared “open season” on the public treas ury and resorted to every known trick to obtain unfair advantage of their own Government. Actually, he, said, the surplus disposal program came through with a minimum of law viola tions. Wants Red Tape Cut. Mr. Larson, who was War As sets Administrator before he took over the job of overseeing non military procurement policies.' told the committee the firms most ready to listen to the "wiles of the influence peddler are those who are seeking an advantage in deal ing with the Government that they would not otherwise be en titled to have.” "In other words,” he added, "the sharp operator who wishes to put the heat on some Govern ment official in order that some thing be done for him which oth erwise should not or would not be done is an easy victim of the five percenter—ample proof of the old adage that ‘birds of a feather will flock together.”' Mr. Larson’s name came into the investigation earlier when the; committee was told that James V. I Hunt, the management counselor whose activities touched off the inquiry, had boasted he was re sponsible for getting Mr. Larson the War Assets Administration' post. Mr. Hunt has denied mak ing such a claim. Mr. Larson, analyzing the fac tors which make it possible for the five-percenter to prey on the unsuspecting small businessman, said ignorance and misunder standing of Government opera tions was partly the cause but he added that Government red tape must be cut to make it easier for the legitimate businessman to deal with his Government. Procurement Centers Set Up. He urged the committee, in its real to stamp out the undesirable operator, not to set up additional red tape for the legitimate middle man. He assured the committee that as a result of the laws creating the General Services Administra tion and unifying the armed serv ices, “there exists today in your Government greater' concern, bet ter co-operation and more con crete accomplishment in the field of reducing red tape than there has ever existed heretofore in the Federal Government since the days of Andrew Jackson.” As a result of the close co-oper ation between the National Mili tary Establishment and the Gen eral Services Administration, he said procedures had been worked out to make it easier for the bus inessmen to deal with the Govern ment and to force disclosure of the activities of five-percenters. To accomplish the first of these two ends, he said, 60 procurement centers have been set up through out the country so that business men will not have to come to Washington. To force disclosure of the five percenters. Mr. Larson said, a procurement form has been worked out which would require the contractor to disclose whether or not he has employed a middle man, other than a full time em (See'FIVE-PERCENTERS, A-4J Rutledge Slightly Improved After Comfortable Night By the Associated Press YORK, Me., Sept. 1.—Physicians report “a slight improvement” to day in the condition of Supreme Court Justice Wiley B. Rutledge. A relapse caused his family and doctors concern yesterday but Justice Rutledge spent a “com fortable” night. The 55-year-old jurist is a pa tient at York Village Hospital. He vent there Saturday for treat ment of what the hospital called a circulatory condition. Dr. Fred A. Geier of Washing ton, Justice Rutledge's personal physician, and Dr. Elmer Tower of Ogunquit said yesterday their patient suffered a relapse. Dr. Geier stayed nearby last Bight. He flew to Maine from ► ashington for the second time; In four days. President Refuses to Discuss Paragon's White House Status McCarthy Criticizes His Stand on Aide As OK to Other Officials to Do Likewise President Truman emphasized with a smile today that he will keep Maj. Gen. Harry H. Vaughan as his military aide, but he re fused to discuss the possibility , that John Maragon, a key figure in the five-percenter inquiry, would be barred from the White House. The President, who had indi cated that h^ would discuss the Vaughan case more fully after his long-time friend had had his day at the Senate hearing, was asked at the start of a press conference this morning if he thought Gen Vaughan had had a fair deal. | Brusquely, Mr. Truman said he had no comment on that matter whatever. A second questioner recalled that in his testimony before the Senate subcommittee yesterday Gen. Vaughan had indicated that in the future Mr. Maragon would be “persona non grata" at the White House. Gen. Vaughan told the committee that Mr. Maragon "would have to be pretty well washed up and fumigated. I'm afraid, before I will want to have much more to do with him." The reporter then ask£d the President if he had issued any orders barring Mr. Maragon from the White House. Mr. Truman's only comment was that the hearing is going on at the Capitol and he has no intention of transferring it to the White House. The third and last question on the inquiry was whether Mr. Tru man contemplated changing his military aide. The President said no, he did not. Gen. Vaughan stood behind the President’s chair as Mr. Truman talked with the reporters. Although the committee has dismissed Gen. Vaughan as a wit ness, Senator McCarthy. Republi can. of Wisconsin said it is “just getting started” in its inquiry about him. Senator McCarthy told report ers at the Capitol after the press conference that Mr. Truman, in retaining Gen. Vaughan, is saying in effect that it is proper for Gen. Vaughan to “peddle influence.” Furthermore, he said, the re tention “not only encourages other ~ tSee VAUGHAN,"Page A-4.) Defense Committee , Slated fo Be Formed Before Vote on Arms Pact Nations' Session Here Sept. 21 Will Improve Chances in Senate By J. A. O'Leary The administration's foreign arms program may find its pathj through the Senate made easiei' by the announcement that the 12 North Atlantic treaty nations will take the first step here Septem ber 17 to set up a Council and a Joint Defense Committee. This step to get the treaty func- j tioning at an early date takes on! added importance in view of the offer made yesterday by Senate supporters of the arms bill to hold up a substantial part of the mili tary aid money for Western; Europe until the Joint Defense Committee organizes and works out its overall defense strategy. In fact, it looks now as though the Joint Defense Committee may become a reality before the Ameri can military aid program gets through the Senate. This se quence of events seems likely be cause the administration decided yesterday to have a showdown with the Senate right away on re-^ newal of the Reciprocal Trade* Agreement law. The Trade Agree ment debate will not begin until September 7, and informed Senate sources say it will take at least two weeks. Council to Name Committee. / That means the military aid bill would not be up for Senate debate until several days after the Foreign Ministers of the 11 other treaty nations gather with Ameri can diplomats in WaShington on September 17. The meeting on that date is to organize the Coun cil provided for in Article 9 of the treaty. The Council, in turn, will appoint the Joint' Defense Committee. Meanwhile, the forecast is being made in reliable quarters here that the Atlantic pact nations will discard any thought of nam ing a supreme commander. In stead, the belief is they will place over-all strategy in the hands of a small steering group. Representatives of the pact countries are said to have ruled out the single supreme com mander idea partly because it might provide the basis for an argument in Congress that the United States would have to underwrite the decisions of the lone commander, especially if an American was picked for the task. With the Senate in Labor Day (See ARMS, Page A-6.) Polio Foundation Plans First Special Fund Drive ly fh« Associated Press NEW YORK. Sept. 1.—For the first time in its history, the Na tional Foundation for Infantile Paralysis is laying plans for, a special fund-raising drive. The drive is made necessary, President Basil O’Connor said yes terday, because of the extent of this year’s polio incidence. The foundation, he said, has spent 17,078,800 on new cases this year, and a remaining fund of $3,000,000 probably will be used up by November. The 11-year-old foundation un til now has conducted one cam paign a year. I Russian Grain Crops In Serious Decline, III. S. Experts Report Remainder of Europe In Good Condition; Soviet Harvests Down ly the Aetociated Preit A serious decline in Russia’s grain crops was reported today by, the Agriculture Department. In ft report on European grain prospects this year, the depart ment slid Its gleaning of news from behind the iron curtain shows that “in the Soviet Union [ heavy precipitation and other I harvesting difficulties have caused : considerable reduction of the grain crop which looked promis ' ing earlier in the season.” In contrast, the department re« i ported that weather conditions between mid-July and mid-August were favorable, on the whole, for i the grain harvest in the rest of Europe. Yugoslavian Crop Improved. In Yugoslavia, the report said, the bread grain crop, already har-; vested, was “slightly better than 1948.” It had this to say about the Russian agricultural picture: h “Reports of harvesting difficul- ’ ti^s in a number of regions, due ( to wet, lodged and weedy grain, uneven or late ripening, short . stand of the grain and shattering, [ continued early in August. “Much grain that was cut was still unstacked early in August, 1 •and probably deteriorated during the heavy rains which were wide- 1 spread. Considerable crop losses | were reported, thus reducing the actual ‘barn’ yield of what prom ised to be a good crop of grains— wheat, rye. oats and barley. “The quality of the grain ap pears to be inferior in a number of regions. “The potato crop also suffered from the excess of rain. A good [sugar beet crop is reported matur-' ing in the Ukraine, the principal sugar beet region of the Soviet Union. Grass has been growing '(See RUSSIAN GRAIN, Pg. A-3.) Broady and Jones Freed On Wire-Tapping Charge Sy thi Associated Prut NEW YORK, Sept. 1.—A Gen eral Sessions Jury today acquitted John G. Broady, lawyer-investi gator, and his co-defendant, Ed ward M. Jones, on a wire-tapping charge but reported disagreement on five other counts of a six-count indictment. The six-count indictment against the two men charged them with conspiracy, illegal wire-tap ping and grand larceny. The jury returned its verdict after deliberating since late yes terday. Judge Jacob Gould -Schurman said, “I shall accept disagreement on the five counts,” and then dis missed the jury. ' The men were indicted for al legedly swindling Kings County Buick, Inc., out of $8,071 last fall after the concern had hired Broady to look into suspected black-market operations at the agency. i This trial grew out of the so called "wire tap explosion” an nounced at City Hall March 12, when it was charged that there was a plot to tap the phones of I many city officials. ▲ Tito Blasts Reds For 'Selling Out/ Austria Claims $50,000,000 Increase In Soviet Reparations Cited by Yugoslavs By the Associated Press BELGRADE, Yugoslavia,- Sept. 1.—Yugoslavia's official newsnaper charged today that Russia is getting $50,000,000 for selling out Yugoslav claims to a slice of Southern Austria. The charge was the latest; propaganda blast in the war of nerves between Russia and Yu goslavia. The dispute has been highlighted by rumors of Soviet troop concentrations on Yugo slavia’s borders, countermoves by Marshal Tito's army and stories of sabotage inside this Balkan country. The newspaper Borba, voice of Tito's government, put the $50. 000,000 price tag on what it called Russia's “betrayal" of Yugoslavia. War Claim Increased Cited. Borba declared Russia dropped her support of Yugoslav ter ritorial claims on Austria last June after she got Western agree ment on raising Soviet war claims against Austria from $100,000,000 to $150,000,000. Britain, France and the United States have con Tito Reported Able To Muster Army of Million if Attacked By th# Associated Press ROME, Sept. 1.—The Ital ian news agency Astra today quoted Trieste sources as say ing Marshal Tito has 600.000 men under arms. This number could be brought up quickly to 1,000. 000 men in the event Yu goslavia is attacked, the dis patch said. "Tito can count on six armies of about 100,000 men each, composed of 21 infantry divisions, three armored divi sions, two brigades of forntier guards and other specialized units, artillery, cavalry and engineers,” the dis patch con tinued. It said Yugoslav troops had much light equipment, such as automatic weapons and flame throwers, but are weak in artillery. There is a lack of uniformity in the arms, which include Russian, Eng lish, German, Italian and American weapons. sistently opposed Yugoslav land claims as part of an Austrian in dependence treaty. Borba’s editorial was the first Yugoslav retort of an official na ture to an angry Russian note de livered Monday declaring again that Tito himself had abandoned his Austrian claims behind Rus- 1 sia's back. With mixed defiance and sar casm, Borba charged Russia was, trying to bring Yugoslavia under | "control in order to place her in! an unequal and subdued position.”;. The tone of editorials, both in! Borba and another Belgrade j paper, Politika, showed little con-1 cern over the possibility of the1 'See TITO, Page A-5.) Bolivia Rebels Hold Four Vital Centers By th* Associated Press LA PAZ, Bolivia, Sept. 1.— Rightist rebels held at least four key centers today as the govern ment confirmed the fall of two more cities. The government announced that the rebels had taken Yacuiba, an important oil center on the Ar gentine frontier, and Sucre, 250 miles southeast of La Paz. The National Revolutionary Party which launched a revolt Saturday to overthrow Bolivia’s middle - of - the-road government, also holds the important centers of Santa Cruz in the Eastern Bo livian oil fields and Potosl in the tin-mining south. Earlier, however, they had been forced to surrender their strong hold at Cochabamba. Loyal forces which occupied that city were sweeping toda^to attack Santa Cruz, Potosi an Sucre, the In terior Ministry announced. Despite their recent reverses the general staff appeared confident the loyal forces would crush the tevolt. Acting President Mamerto Ur riolagoitia, in a message to the people last night, hailed the re capture of Cochabamba, which he called the principal seat of “to talitarian subversion." ft THAT BOY WASN'T | RAISED To BE I 1 A SOLDIER! TrumanSeesNerveWarWaning On Anniversary of Nazi Attack Still Hopes Trouble With Russians Can Be Cleared Away President Truman, noting the 10th anniversary of the start of World War II. said today he was disappointed that the hindrances to peace imposed by Russia h»d blocked world peace, but that he was still hopeful that eventually the difficulties would be cleared away. * The President's comment came at a news conference when a re porter recalled the anniversary date and asked if Mr. Truman had any reflections for the occasion. The President said that, of course, he was happy that the shooting war had ended, but that he was disappointed that the war of nerves had gone on. He added that he was hopeful it would end up in surrender a& had the shoot ing wrar. When a reporter wanted to know (See PEACE. Page A-5.) 'Don't Want Another' Conflict4 West Reich Press Choruses By the Associated Pres* FRANKFURT, Germany, Sept. 1.— West German newspapers noted the 10th anniversary of the outbreak of World War II today with a chorus of "We don’t want another.” It was on September 1, 1939, that Adolf Hitler’s armored legions drove into Poland. But while the West German press called today for peace, the Soviet-licensed press in Berlin said the American Army was preparing for another war on German soil. The indeoendent Frankfurt newspaper AbendposU in „ the American zone, keynoted the Western German comment against war. “On this day, we will not regret that we lost the war,” said Abend (See ANNIVERSARY, Page A-S.) Refit Controls Lifted From 600 Dwellings In Prince Georges Seven Election Districts Affected by First Action Of Sort in D. C. Area Housing Expediter Tighe E. Woods announced today that rent controls were being lifted im mediately from about 600 dwelling units in seven Prince . Georges County election districts. It was the first such action in the Wash ington area affecting houses and apartments. Previously, on May 18, controls had been removed from 3,500 rooms in Arlington Farms. Localities affected today are in outlying Prince Georges County. The lifting of controls was by election districts as follows: Election District 3 (Upper Marl boro) ; 4 (Nottingham); 5 (Pis cataway): 7 (Queen Anne): 8 (Aquasco); 11 (Brandwine); and 15 (Mellwood). A spokesman for the housing expediter’s office said it was found in a July survey that in these areas the demand for rental hous ing had been ‘reasonably met.” William L. Thompson, area rent director for the Prince Georges tylontgomery county area with offices at 8055 Thirteenth street. Silver Spring, said today, he had been notified of the action by Mr. Woods office. He said that if rent control cases are pending in this area they would be dismissed, but that he knew of none. Chicago Gas Truckmen Endi Strike After Wage Boost By th« Associated Press CHICAGO, Sept. 1.—The 21-day strike of tank truck drivers, which had brought a near gasoline fam ine to the Chicago area, ended early today. The 1,600 members of the AFL Teamsters’ Union voted unani mously shortly after midnight to accept a wage boost of 10 cents an hour and improved vacation] benefits. The fidto agreement is retroac tive to July 1. It raises the pay to $1.$7% an hour and provides for three weeks’ vacation instead of two after 15 years of employ ment. Work schedules continue unchanged. The union originally asked for a 17‘/a cents hourly in-* crease. The union said trucks would start rolling immediately with supplies for the approximately 3,000 gasoline service stations which had been shut down since several days after the strike lagan. 'Fair Deal' Program Will Prevail in EndT President Predicts Looks to Next Session To Attain Proposals; Stands Firm on Budget By the Associated Press President Truman predicted to day that his Fair Deal program ultimately will be enacted in full. The President told a news con ference he is confident that the 81st Congress will catch up at its next session on matters he has been unable to get through at the current session. He reminded the conference that the 81st Congress is in two parts and that there is still a long way to go even on the present session. The second session starts in January. Mr. Truman said he stands full tilt behind the $41,900,000,000 budget he submitted to Congress in January. This was his reply to a question about congressional attempts to write into appropriation bills a rider directing him to make per centage cuts in overall funds voted by the two houses. Pleased at Rider Defeat. He said he was very pleased that such an economy rider by Senator McClellan, Democrat, of Arkansas was defeated by the Senate. The President said he submitted necessary recommendations to Congress and that it was the busi ness of Congress to analyze his (See CONGRESS. Page A-3J Navy Secretary Forced Back on Pacific Flight ly the Associated Press SAN FRANCISCO, Sept. 1.— Secretary of the Navy Matthews and a party of high officials landed safely at Moffett Field early today after being forced back from a flight to Honolulu by engine trouble. The Secretary, accompanied by Representative McKinnon of San Diego and several high-ranking Navy officials, was en route to the Hawaiian Islands to dedicate a new national cemetery. The party was traveling in Sec retary Matthews’ private plane. Six hundred miles at sea one en gine on the four-engine plane Quit. The pilot radioed that h« was turn ing back. Air-Sea Rescue Service from Hamilton Field dispatched a C-47 rescue plane to escort the crippled plane back to land. Both arrived safely. Officials at Moffett Field said Secretary Matthews’ plane would take off again tonight foigionolulu. Compromise Plan Puts Traffic Funnel 30 Feet Farther From Church Trustees, City Officials Agree to Shift Channel At New York Ave. and H A compromise plan will put the controversial H street traffic chan nel'through the triangular “front yard” of the New York Avenue Presbyterian Church 30 feet east of the original site, it was an nounced today. The original District Highway Department plan would have cut the small park in half with the channel to funnel H street traffic across New York avenue, thus opening a part of H street to two way traffic. Under the compromise agreed to by the church Board of Trus tees, the channel will be 30 feet nearer the tip of the triangle, which points east toward Thir teenth street N.W. The project, first disclosed in a story and sketch in The Star, drew immediate protests from members of the congregation, partly because the church had been given no opportunity to con sider the proposal and partly be cause of outright objections to splitting the park. The land is owned by the Government but has long been considered part of the churchyard. No Public Hearing. Acting Highway Director Sam Harrison, at the conclusion of the meeting with the Board of Trus tees, said that since the recom mended change takes care of op position of the abutting property owner (the church) he would not recommend a public hearing. However, he urged any other property owners who have sug gestions to make to communicate with'his office. He added that the conferences among the trustees, the highway department technicians and other interested persons *‘tumed up no particular differences of opinion, but produced a further under standing of each other’s prob lems.” Emphasises Co-operation. In a statement following the meeting, A. C. Oliphant, chairman of the board of trustees, took cog nizance of the traffic problem existing at the intersection and termed the compromise "the best result" they were able to get under the circumstances. "It is the belief and wish of the committee that we desire to be good neighbors and assist in every way we can with maintaining and improving the locality in which our church property is located. “The committee desires to state that the compromise to which they have agreed has been made after careful study and mutual concession by all concerned,” the statement said. Mr. Oliphant emphasized the co-operation received from Dis trict officials and declared “we believe they have modified their | plan to the full extent consistent with the public interest in an effort to be as helpful to the church as possible.” Late News Bulletin Immigration Curb Asked PHILADELPHIA (A*>. — The American Legion today adopt ed a resolution demanding that the United States "cur tail as far as possible any further immigration” at this time. It particularly urged adherence "to laws now in" force applying to displaced persons rather than place ad ditional burden on the people I of America.” (Earlier Story on ifee A-4.) Marshall Plan Goals Not Met, Officials Say Top OEEC Men Report 5-Biflion Aid Has Not Solved Problem By the Associated Press PARIS, Sept. 1.—Europe's two top Marshall Plan officials de clared today that more than $5,000,000,000 in American aid has failed so far to put the war damaged continent on the road to self support. They reported that Europe's economic situation has improved in the last two years, but that the dollar-shortage problem had not been solved. The report, to be sent to Mar shall Plan authorities in the United States, was made by Baron Jean Charles Snoy of Belgium, chair man of the 19-nation Organization for European Economic Co-opera tion, and Robert Marjolin of France, OEEC secretary-general, "If it was at one time our belief that European recovery was pro ceeding fast enough to make it possible to achieve viability (self support) in 1952, we must now admit that the rate of progress is not sufficient,” Baron Snoy and Mr. Marpolin said. “The dollar problem; despite the improvement in the situation over the last two years, is not on the way to solution.” Lower Tariffs Urged. * Similar statemertts have been made recently by delegates to the Assembly of the new Council of Europe at Strasbourg. They ad vocated more measures for eco nomic co-operation between Eu ropean countries and lowering of trade barriers. The goal of the Marshall Plan has been to make Europe eco nomically self supporting by 1952. The Snoy-Marjolin report was studied yesterday at a meeting of the OEEC Council, which ap proved a plan for distribution of about $3,670,000,000 in Marshal aid for 1949-50. The plan was [drawn up to Bar op Snoy and Mr. ! Marjolin after the 19 recipient countries had argued bitterly over i their needs for additional alioca tions. Not Solely European Problem. The Snoy-Marjolin report con tinued: "This (dollar shortage) is not solely a European problem. It is a problem for the United States a$ much as for Europe and also for the whole free world. It is our conviction that the funda mentals of this problem must be reconsidered at a very early date and that, as'soon as the present difficulties have been overcome the organization will have to concen trate all its efforts to this end.” The document had been kept secret, Europeans said, at'the in sistence of American Marshall Plan officials who feared it might make Congress less willing to grant new funds. The 1949-50 aid bill is still pending in Congress. Report Ordered Issued. The report was made public un der OEEC council orders by Mr. Marjolin at a news conference. “Progress toward reducing Eu rope’s dollar shortage is not going as fast as the reduction of Ameri can aid,” Mr. Marjolin told news men. He said this state of affairs had been forseen, but that it had not been expected so soon. It came faster, he added, because the first six months of 1949 showed a drop of about $600,000,000 a year in the ability of European countries to earn dollars by selling goods to the Western Hemisphere. Mr. Marjolin blamed this drop 3 (See MARSHALL PLAN, Pg. A-6.) Deadline Passes Today For Austrian Treaty By th« Associated Press LONDON.«6ept, 1.—The dead line for the Big Four to draft an Austrian independence treaty ex pires today, with Russia and the West still divided on nine of 69 proposed clauses. The Council of Foreign Minis ters in Paris last June asked their deputies to translate an agree ment-in-principle on Austria into j agreement-in-detail and , report not later than September 1 on ! their progress. The Russian and Western depu ties, who have been meeting here since July 1, made only slight headway at a meeting this morn ing. They planned a final pre-dead line session tonight. They are ex pected to decide then whether to submit tlieir incomplete treaty draft to the Council of Foreign Ministers or continue their talks here. The deputies agreed this morn ing on how to divide up the ships owwned by the Danube Shipping Co., which used to be German owned. Under an accord reached in Paris last June by the Council of Foreign Ministers, Russia is due to get 69 per cent of the company's assets. Austria the balance. Some of the Russian-Western differences in those nine remain ing articles are minor in nature. Others are important and ternled but, in the official western view, "quite surmountable.!