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Weather Forecast Guide for Readers Sunny, some cloudiness. High, low 90s. p«« p»»« Fair, warm tonight, low 70. Tomorrow, Amusements _A-12 Lost and Found A-3 cloudy, high 90. (Full report on Page Church News A-9-11 Obituary _ a-8 A-2.) * Classified ..A-13-21 Radio-TV_A-21 Midnight, 73 6 a.m. ...68 11 a.m. —76 Comics _A-22-23 Real Estate B-l-ll 2 a.m. ...72 8 a.m. —.69 Noon _82 Editorial_A-6 Sports _A-12 4 a.m. ...70 9 a.m. ...72 1 p.m. ...84 Edit’l Articles _.A-7 I Society, Clubs A-13 _ An Associoted Press Newspaper 99th Year. No. 153. Phone ST. 5000 ★★ WASHINGTON, D. C., SATURDAY, JUNE 2, 1951—THIRTY-EIGHT PAGES. * CENTS i Acheson Says Truman Ordered Him Not to Give Details of Talks Preceding MacArthur Dismissal - ♦ 1 — ■■■ 1 1 — ——— ■ ■■ —■ Warns Situation • In Iran Could Lead to War By Cecil Holland and Garnett D. Horner Secretary of State Acheson said today he was “under direct in structions” from President Tru man not to reveal details of White House conversations leading up to the dismissal of Gen. Mac Arthur as Far Eastern commander. Mr. Acheson made this state ment at the outset of his second Partial Text of Secretary Acheson's Testi mony. Pages A-4.and A-5 Text of Declassified Formosa Policy Docu ment. Poge A-7 appearance before the Senate Armed Services and Foreigji Re lations Committees investigating the MacArthur controversy. Other Highlights.* Other highlights of Mr. Ache aons testimony included: 1. He believes the Situation in Iran, where the government is insisting on nationalizing oil re sources operated by a British controled company, is “of the greatest possible seriousness and might easily deteriorate into a situation out of which war could grow.” xuc way iui a uipiumaiu; settlement of the Korean war may open up when continued slaughter of the Chinese Communist armies convinces the Reds they cannot drive the United Nations forces out of Korea. 3. He does not know of any Ko rean armistice being under nego tiation or of any truce proposal by the Red Chinese. He added that Lt. Gen. James A. Van Fleet, U. N. ground commander in Korea, could not negotiate any armistice without getting instructions from the Joint Chiefs of Staff. 4. First effect in Japan of Gen. MacArthur’s removal was one of “very considerable shock,” but the situation has been “very largely restored” there. Importance of Hong Kong. 5. If the British colony of Hong Kong should fall into Communist hands it would have “a very ad verse influence” on the interests of the United States and its allies in the Far East. Hong Kong is “an important point” for observation and other operations in the Far East. 6. The 38th Parallel, dividing line between North and South Ko rea, has no significance from the military point of view. 7. The Secretary was unable to say whether there is greater danger of World War III breaking out in Europe or Asia since “one never knows where the spark may come from that might ignite the whole thing.” O X UOOIWU- WiWV/JVaUL Ul l/lic V1U" nese mainland is “under constant planning in the Government.” 9. Great Britain and France are not willing to go as far as the United States wants to now in the degree of economic sanctions to be imposed on Communist China. 10. He hopes “we are working closer to an understanding” with the British in regard to keeping the Chinese Communists out of the United Nations. Senator Wiley, Republican, of Wisconsin asked Mr. Acheson if he would claim the White House conversations were privileged and confidential if he should be re quested to disclose them. “If you were to ask me what was said,” Mr. Acheson replied, “I should have to say that I could not answer that question because I am under direct instructions of the President of the United States (See FOREIGN POLICY, A-5.) Britain Seeks Moves To End Korea War By »he Associated Press LONDON, June 2.—Britain is seeking a fruitful opportunity for moves to end the Korean war and arrange talks on a general Far Eastern settlement, according to informed officials. These officials said today For eign Secretary Herbert Morrison and other British leaders believe the psychological moment for a solid peace move is nearer now than it has been for a long time. Britain accordingly has been urging those United Nations hav ing forces in Korea and Common wealth partners to be ready to act quickly when an opportune moment comes. A main reason which has led the British to think the time may be near for a new Korean peace offer is the resounding defeat of the latest Communist offensive. Informants noted with some optimism Gen. Van Fleet‘s state ment today in which the U. N. field commander said the "pursuit phase” of the operations against the ^teds now has ended. Britain long has held the view that once the Communist offen sives have been hurled back. U. N. forces should try to stabilize themselves somewhere along the 38th Parallel. A Iran Says It Will Nationalize Oil Or'Take World to Destruction' Mossadegh Aide Makes Threat After Letter From Truman Is Read to Senate in Secret Ey the Associated Press TEHERAN. Iran, June 2.—Hus sein Maki. right-hand man pf Na tionalist Premier Mohammed Mos sadegh. said today Iran eithei will achieve her goal of nation alization of oil or “we will be de stroyed and all the world with us.” This statement — described as the most inflammatory yet made by any responsible member of Dr. Mosshadgeh’s group — was given to reporters shortly after the Premier read to a secret ses sion of the Senate the text of President Truman’s letter urging Iran to try to settle peacefully the explosive British-Iranian oil dispute. Mr. Maki, who is secretary of the joint parliamentary commis sion appointed to take over the vast resources of the British owned Anglo-Ii anian Oil Co., said, “We have burned all bridges behind us and there is no way of retreat.” “We have reached a stage that either we will reach our goal: and be prosperous or we will be | destroyed and all the world with us,” he told a news conference. A Senator who was present at the secret session termed Presi dent Truman’s message to Iran “very strong.” Although the text of the letter still has not been made available, reliable sources say he expressed "great concern” over the oil crisis and urged Iran to negotiate with Britain on the basis of the principle of nationali jzation. (The President also sent a let ter to Prime Minister Attlee. (See IRAN, Page A-3.) Peurifoy Expresses American Concern Over Greek Crisis Declares Minor Dispute Threatens Nation After Army Chief Quits ly the Associated Press ATHENS, Greece, June 2.— United States Ambassador John C. Peurifoy told Premier Sophocles Venizelos today the United States is gravely concerned about recent developments in Greece. Ambas sador Peurifoy hurried back to Athens after Field Marshall Alex ander Papagos unexpectedly quit as chief Of the Greek armed forces. Premier Venizelos called on the Ambassador at his residence and found Mr. Peurifoy in shirt sleeves. Informed sources said the Ambassador declared he felt the destiny of Greece was being placed in the balance by a dis pute over minor issues. Later Mr. Peurifoy is scheduled to see King Paul and Marshal Papagos. He is expected to tell them the same thing. A high American source ad mitted that Marshal Papagos' iCoiBiiavivu maj jtupai uuc tuc scale of future American military aid tq Greece. He said United States military leaders have unlimited confidence in Marshal Papagos, but that this confidence is not likely to be be stowed on his successor. This source said the United States trusted the marshal to exploit fully all aid received. The Greek military crisis is cre ating anxiety in Washington, it was learned, because of the impor tant role which would be assigned to the Greek army in case of Com munist aggression in the Mediter ranean or Middle East. It is generally believed the Greek army would lose a large degree of efficiency without the iron-handed guidance of Marshal Papagos. Marshal Papagos gave ill health as an excuse for resigning, but the basic reason is a months’-old dif ference with King Paul and his palace guard. The palace group thought the marshal was trying to extend his authority beyond the military sphere into matters which concerned the court. It is known that he has voiced objections to nominations made by the King to his military house hold. These objections caused sharp resentment on the part of the King and his palace advisers Most Restrictive Censorship ot Korean War Imposed. Page A-8 -— ' slble future Allied operations. He left unanswered the ques tion: Will the U. N. Allies stand where they are now, just a few miles north of the Red Korea border, or will they strike out for specific targets? United Nations forward ele ments. meanwhile, had run up against a bristling Chinese and Korean Communist defense line a short distance inside North Ko rea. This line had been strongly reinforced overnight. Reasons for Statement. There were two possible reasons i for Gen. Van Fleet’s announce ment: 1. The Red reinforcements. 2. The Allies might be running lout of steam after hurling back ithe biggest force the Reds pvpr had thrown against them. Gen. Van Fleet told a news con ference the 8th Army has ended its “pursuit phase-’ of operations, but “will continue, however, to stop the enemy’s unwarranted ag gression against South Korea, and will, when necessary and profit able, meet such threats within North Korea. He said the Reds were “crippled severely,” but are not exhausted and have reserves for “still an other round.” The 8th Army commander said the U. N. Allies inflicted more than 100,000 casualties, including 10| 000 captured, on the Communists in the Reds’ second spring drive, from May 16 through May 31 The Defense Department ln Washington listed Red casualties ! for the period at 162,000. “We can whip that Chinese army —any place, anywhere,” Gen. Van iFleet said. “As I’ve said many j (See KOREA, Page A-3.) ’Pursuit Phase'of War In North Korea Ended, Van Fleet Declares U. N. Commander Gives No Hint as to Future Allied Operations By the Associated Pres* • TOKYO, June 2.—Lt. Gen. James A. Van Fleet said today the United States 8th Army has quit chasing Reds in North Korea but will continue to block Com munist aggression. The United Nations ground commander gave no clue to pos John Erskine, Author of Novel 'Helen of Troy,' Dies at 71 Former Professor Also Won Acclaim In Field of Music By the Associated Press NEW YORK, June 2.—Author John Erskine, 71, died at his Park avenue home early today. With him at the time of his death was his wife Helen. Novelist Fulton Oursler was summoned to the home after Mr Erskine died at about 5:30 aun Mr. Oursler said that Erskine had been suffering from a heart ailment for about 18 months and had gone to Europe about a year ago in an attempt to regain £is health. He remained mactive after his return, Mr. Oursler said. Funeral arrangements have not yet been made. Besides Mrs. Erskine, the author | is survived by a son, Graham, an architect, and a daughter, the wife of Playwright Russel Crouse. The son and daughter are Mr. Erskine’s by a previous marriage. Mr. Erskine wrote 45 books— the latest of them, "Venus the Lovely Goddess,” published in 1949. However, it was his novel, “ * ■ i'" —Wide World Photo. JOHN ERSKINE. Private Life of Helen of Troy,” that brought him popular acclaim. This novel was published in 1925, when Mr. Erskine Was 46 years old. Mr. Erskine was a scholar, musician and novelist. To live all three “lives,” he developed a “technique of time-saving." He figured that a man could (Continued on Page A-8, Col. 4.) I NPA Orders Cut Of 200,000 Units In Auto Output Revised Controls Will Slash Production 37% For Third Quarter The Government today ordered new and deeper cuts in the pro duction of automobiles to conserve scarce materials for the re armament program. The National Production Au thority announced it will limit passenger car output to 1.2 mil lion in the three-month period beginning July 1. a reduction of 200,000 from the number of cars being produced in the current quarter year. NPA's action means that third quarter auto production will be about 37 per cent less than in the comparable three months of 1950, a record year for the industry. Nearly 1.9 million cars were made in the July-September period last year. NPA said it was revising the formula for controlling automo bile production. Previous orders reduced output by limiting the amount of steel, copper and aluminum auto manufacturers may use. the new and more complicated formula generally preserves the status in the industry of manu facturers as of January, 1950, dividing among them the avail able metals according to the num ber of cars made in the base moi rn. NPA said the new system allows manufacturers to divert steel, cop per and aluminum from the pro duction of heavier cars to lighter models. Thus the industry, if it chooses, will be able to make more vehicles than it could by following past practices. The new formula, NPA said, allows the industry to use trie scarce metals to the best advan tage. By diverting materials to lighter models the 1.2 million out put figure of the July-September quarter may be exceeded. Production officials conceded there may be some unemploy ment in the industry as a result of the new cut because the out put of weapons and other military materiel will absorb only a small percentage of the number to be laid off in the auto plants. New Wage Formula. Meanwhile, the Government seemed ready to indorse a new control formula tying wages to the cost of living. Chairman George W. Taylor of the Wage Stabilization Board was said to favor adoption of a new policy providing for approval ol pay increases as living costs rise. This policy would replace the present and more complicated formula which, among other things, allows wage increases of up to 10 per cent above levels of January 15, 1950. Dr. Taylor’s board of labor, in dustry and public members will continue their studies of new wage control ideas next week. The board on Wednesday will again discuss the subject with Economic Sta bilizer Eric A. Johnston. nir« _*.__i thing akin to Dr. Taylor's plan in a meeting with the board Thurs day. His proposal would allow wage increases of up to 12!/2 per cent above January, 1950, levels immediately It was understood that Mr. Johnston also asked the board to stop handling individual wage cases which may set pay prece dents until a complete new con trol policy has been drafted. Mr Johnston, it was said, would permit wages to rise by the same percentage as living costs since January, 1950. This would permit increases up to 10.5 per cent under the Government’s old cost of living index In addition, further increases of 2 per cent a year would be al lowed for increases in worker pro ductivity. The employer, however, would have to certify that the per worker output in his plant had in creased at least 2 per cent before the employes would get the pay raise of the same size. Increases Not Mandatory. Under the Johnston plan, the board would fix standards for the granting of additional wage in creases instances of hardship or enequities. The wage increases would not be mandatory on the employer, but the employer would be allowed to raise pay that much if he were willing to do so. The WSB has had under con sideration for more than a week a management-labor request for approval of a 4-cents-per-hour annual productivity increase which is due nearly a million automobile workers next week. A board spokesman announced the prob lem would be discussed further at a meeting Monday. I 1951 Diploma Rooming House Blaze Fatal to Woman, 35; Man Severely Burned Firemen Use Ladders to Rescue Family of Five; Marines Rouse Sleepers One woman died and a man was burned seriously early today in a fire that raged through the second floor of a rooming house at 1214 L street N.W. Firemen were forced to rescue a family of five from the third floor by ladder. Four other per sons fled to safety in their night clothes. Pronounced dead shortly aftdr she had been carried from the blazing building was Mrs. Vir ginia Bailey, 35, a drugstore clerk. Jack Armstrong, 50, a clothing store employe, suffered burns of the chest, face and arms. He was removed to Emergency Hospital, where his condition was described as serious. Rescued From Third Floor. Firemen put ladders up to the third floor back window of the brick row house to rescue Pete Pappas, 39, the landlord, and his family. They were trapped by the flames on the second floor. Taken down the ladders, besides Mr. Ponnoc worn AArc nnrothw pas, 37, his wife: Pamela, 8: Pa tricia, 4, and Petro, 5 months. Four firemen from No. 4 truck company combined to rescue them They were Pvts. Myer Weiner, Stanley Hill, Theodore Burschwitz and John Hughes. Pvt. Henry A. Lang of No. 1 engine company groped his way into the blazing second-floor bed room occupied by Mrs. Bailey and found her still lying in bed. He! carried her down to the street, but she was pronounced dead a short time later. Marines, Airman Assisted. Four Marines and a recently discharged Air Force sergeant were heroes in the fire also, run ning in the house and warning sleeping residents after they no ticed smoke pouring out of a window. Marine Pfc. Ralph Goerke, 22, of Camp Lejeune, N. C„ said he, James Murphy, 31, of Pikesville, Ky„ and three other Marines whose names he didn’t know, were walking down L street around 5 a.m. when they saw the smoke. One of the Marines ran to call the fire department, while the others burst into the rooming house and began banging on doors. Pvt. Georke said. They were still! in the house helping the residents! get out when the firemen arrived,! he added. The fire started in the room occupied by Mrs. Bailey. Fire men indicated it may have be gun from a burning cigarette. Wender to Retire When Term On Recreation Board Expires Attorney Has Served As Chairman Since Creation in 1942 Harry S. Wender, chairman of the District Recreation Board, to day confirmed reports that he does not intend to serve on that body after his present term expires next summer. During his appearance last month before a House District subcommittee to plead for an ap propriation of $275,000 to allow the board to take over the city’s golf courses, Mr. Wender told the subcommittee it was “very likely the last occasion" he would appear before the group. . "I definitely am serving my last term,” the 43-year-old lawyer said “I already have told Commissioner F. Joseph Donohue I will retire when my present term is up." Named to Board in '42. Mr. Wender was named to the board in 1942, when the board was created. He was the first chairman of the Recreation Board and has been re-elected to the position each year since. He said one of the reasons he —HirrU-Ewlnc Photo. HARRY S. WENDER „ plans to retire from the board is that "10 years is ample time to serve in any one position.” But he also said his decision was based partly on a desire to make it clear to the public that (See WENDER. Page A-8.) Angler Starts Out LikeAnanias;Nearly Ends Up Like Jonah By Associated Press SANTA BARBARA, Calif.. June 2.—A Santa Barbara man started out like Ananias—just one wee fib —and almost wound up like Jonah —in a whale’s belly. He told the fib in playing hookey yesterday from his job to go fishing. The Whale came in for its part of the fish story by flipping the fisherman’s 14-foot skiff and bat tering in one side with its tail. The fisherman, afraid he would lose his job. begged for anonymity. The story was told by his com panion in the boat, Fred Suhr. Elevator Starter Breaks Leg in Fall Down Shaft Joseph R. Behar, 57, Hotel Stat ler elevator starter, suffered a broken leg today in a fall down an elevator shaft from the lobby floor to the basement. Mr. Behar, a starter at the Statler since November, 1947. un locked the door to an elevator not in use, believing the cai was stopped at the lobby. He stepped into the shaft and fell about 10 feet. The car had been stopped at an upper floor. Mr. Behar, who lives at 4714 Twentieth road, Arlington, was taken to Emergency Hospital for treatment of the broken right leg and facial cuts. Sign of Cross Saves Veteran From 10-Story Hotel Plunge While a Catholic priest intoned prayers, two policemen edged for ward on their knees to snatch a despondent Army officer from a 10-story hotel window ledge when he relaxed his vigilance to make the sign of the cross early this morning. The officer, Lt. Thomas W Grant, 35, a veteran of the Korean war, had perched on the window ledge at the Harrington Hotel for almost an hour threatening to jump if any one came near him Lt. Grant was taken to Walter Reed Hospital after his rescue. An Army doctor who interviewed him there said the officer is suf fering from “severe combat re action.” He returned to the United States from Korea about three months ago and has been a patient at Valley Forge Army Hospital near Philadelphia. Lt. Grant came to Washington yesterday and registered at the Harrington. Shortly before 3 a.m Night Cleric Arthur S. Brown re ceived a call from Lt. Grant’s room. “If you don’t hear from me any more before morning call the po lice.” a worried voice said. Mr. Brown hailed two military policemen who were passing the hotel and went with them to Lt. Grant’s room. When they en tered they saw the officer seated on the ledge of the open window. “If you come any closer I’m going out this window,” Lt. Grant said. Mr. Brown hurried to another room and called police. Pvts. Frank N. Manthos and Maurice W. McClanahan responded. As the policemen entered, Lt. (See OFFICER, Pag^A-3.) Three Planes Reported in Air Collision By the Associated Press NEW YORK. June 2.—Three Air Force fighter planes were re ported to have been involved in an aerial collision today over Yap hank, formerly Camp Upton on Long Island. A Mitchel Field spokesman said two of the planes were reported to have crashed—one of them in the village streets of Yaphank. I Another is said to have fallen in a field and a third recovered after ;the aerial collision and flew on. The planes were believed to be F-47 Thunderbolt fighters from a new Air Force interceptor base at Westhampton, Long Island. Clouds to Keep Mercury In Low 90s in D. C. Area Summer time kept a firm grip on Washington today despite some cloudiness and a breeze which promised to prevent a near-recoKjt temperature. The Weather Bureau looked for readings in the low 90s before nightfall. Fair and warm was forecast for tonight, with a low of about 70 degrees. The tempera ture at noon today was 82 degrees. Tomorrow will bring more heat with a chance of scattered show ers in the afternoon or evening. A possibility of a break in the heat wave was seen Monday, when the long-range forecast called for scattered showers and cooler Yesterday's 90 eclipsed by ore degree the previous high for thir year, reported on May iii. Looking over prospects for +he next 30 da..,. the Weatlie» Burv.u expected • bovf normal temper atures for June in the Eastern half of the country, and near normal rainfall. Dulles Leaving Today For Talks With British By the Associated Press John Foster Dulles, Republican adviser to the State Department, is scheduled to leave New York today for Britain, where he will discuss the Japanese peace treaty. Official sources here indicated the principal topics will be the future of Formosa and whether Red China—recognized by Britain but not by the United States— should be brought into the treaty negotiations. * D. C. Tax Boost Seen Despite Budget Slash Appropriation Bill Cut $3 Million by Bates Subcommittee By Don S. Warren Inflation haunted the House hearings on the District’s record breaking $137 million 1952 budget, now facing its first legislative ac tion next Wednesday in the House. It moved the Bates Subcom mittee, in charge of the supply Sidelights From Hearings on 1952 District Budget. Page A 3 Reduced Enrollment in White High Schools May Bring Teacher Cut. Page A-3 bill, to trim requested expendi tures reportedly by nearly $3 mil lion to keep financing in balance in the year beginning July 1. And it raised greater concern for the future, provoking discus sions of bond issues, Treasury loans, higher taxes and a pointed suggestion for a 25 per cent in crease in city water rates. Publication today of the tran script of th% recent closed hear ings by the Bates Appropriations Subcommittee made clear the city could meet its big new spending plan, with some cutbacks and postponements, provided only that there was no cut in the Federal payment and no raise in city gov ernment wages. Warning by Fowler. Both, however, are proposed, and Budget Officer Walter L. Fowler warned again that either, or certainly a combination of the two, would mean higher taxes or drastic budget cuts, or both. Against this background, tha House hearings reveal, District of ficials wrote into the official rec ord a lengthy and documented justification for a grant of a full $12 million as tne Federal snare of National Capital costs. This laid the foundation for a deter mined fight against an intended move by Representative Taber, Republican of New York, and others to chop the Federal pay ment down by 10 per cent or more. Last year, at the urging of Mr. Taber, Congress cut 10 per cent, or $1.2 million off the $12 million payment authorized in basic law. Because of inflation, it was charged that the United States now is underpaying the District by $200,000 a year on the amount of city water it uses for its Fed eral agencies. Of the Federal payment, $1 million is granted to pay for Government water use. The actual bill, the House group was told by Water Supt. David Auld, is $1.2 million. Illustrates Issue. This brought from Representa tive Furcolo, Democrat, of Massa chusetts, a declaration that the water payment is an "excellent illustration” of the Federal pay ment issue. "The Federal Government says, jin a high-handed manner, ‘We use the water but we are going to pay you only $1 million in spite of the fact that the actual cost | is $200,000 more than that,”’ Mr. Furcolo commented. Mr. Auld detailed the effects of inflation. Discussing the $23 mil lion Treasury loan Congress has authorized for the long-deferred expansion of the city’s water ; supply, $3.9 million of which now is requested, Mr. Auld said in flated costs have made it "obvi ously hopeless” to depend solely on this source of funds. He Dut it this wav “It is apparent that, in addition to the $25 million originally au thorized as loans to the water fund, an additional $17.6 million would be needed by 1963. "If we assume interest costs at 1.75 per cent and if the inflation ary increases also were borrowed, the water system would owe ap proximately $50.2 million by 1970. “It would not get out of debt until the year 2025, or 73 years hence, and over that period (the District) would have made interest payments aggregating $38,250,000. Any such financing is obviously hopeless and, therefore, more bor rowing to keep up with inflation is not the solution.” He said, therefore, there was no (See BUDGET, Page A-3.) Egyptians Digging For Road Uncover IS Ancient Tombs By th« Associated Press CAIRO, Egypt, June 2.—Work ers digging foundations for a new road near Cairo yesterday unearthed 18 tombs dating back 5.000 years. Dr. Etienne Drioton, director general of the Department of Antiquities, described them as small graves containing bodies and a few vases. He said they dated to the later period of the first dynasty whose pharaohs ruled Egypt around 3,500 B. C. He said it was too soon to say whether the discovery is import ant or merely routine. Similar graves have been unearthed near the city in recent years. The find was made on the fringes of the desert near Giza, a western suburb Cairo.