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Control Post-Freeze Guides Revealed WASHINGTON (AP)--The Cost of Living Council an- nounced yesterday that 45 percent of total U.S. sales and roughly 10 per cent of pay increases affecting workers will come in for close government control dur- ing the post-freeze economic period. In addition, the council announced a group of new exemptions for the period that will follow the freeze. They include all used products, such as used cars, existing real estate and in some cases new homes, and commercial and industrial rents. The council said price increases must be reported to the government before they go into effect if a company Donald Rumsfeld, left, director of th ie Cost of Living has annual sales of $100 million or more. Council with C. Jackson Grayson, Price Commission head. Some 1,300 companies in the United States, repre- senting 45 per cent of total U.S. sales, are in this category, the U.S. NAVAL BASE council said. As for pay increases, all those GAO Ruling which would affect 5,000 workers or more must be reported to the gov- ernment before they can go into ef- fect. The council said 500 economic Spells End to units, presumably meaning bargain- ing units, are included in this category, representing 10 per cent of the total national work force. The surprise in the news confer- *Foreign Aid ence was the large number of new exemptions that will be allowed af- WASHINGTON (AP)--The State Depart- ter the freeze expires midnight ment said a new General Accounting OM ttSunday. Office ruling yesterday means that Raw sugar, dues to non-profit or- as matters now stand the U.S. For- ganizations, international shipping eign Aid Agency must go out of busi- rates, royalties and copyrights for ness Monday. materials furnished for publication Press Officer Charles Bray said THURSDAY, NOVEMBER 11, 1971 are among the new price items that the GAO finding "lends further ur- (Please see PHASE II, page 2) gency" to the administration-backed efforts in Congress to continue the aid program on a temporary basis until the legislators agree on a regular authorization. Treaty Returns Okinawa "The GAO's ruling makes the situ- ation we will face come Monday un- WASHINGTON (AP)-The Senate yesterday approved the agreement returning equivocal and compelling," he said. Okinawa and the Ryukyu Islands to Japan next year. The vote was 84 to 6. The GAO is Congress' financial The agreement represents the end of an era in U.S.-Japan relations. watchdog. It returns to Japan the last remaining occupied territory held by the Both the Senate and the House are United States and ends more than 27 years of the status of occupying now considering ways to keep the aid power. program alive in the wake of the The treaty will not take effect until after the Japanese Diet has also Senate's 41-27 defeat Oct. 29 of the ratified it and adopted legislation required to carry out the agreement yearly bill authorizing continuation and defense arrangements. of the overseas assistance program. The United States is expected to turn over the Ryukyu Islands, includ- The State Department spokesman ing Okinawa, to Japan by June 30, 1972, or possibly sooner. said he does not expect Congress No nuclear weapons are to be stored on the island base by that time nor will wash its hands of the foreign can such weapons be brought there without the approval of the Japanese aid program and leave 13,000 em- government. ployees of the aid-administering However, the United States will retain for an indefinite period of time Agency for International Development the use of 100 of the 134 separate military installations on the island. stranded here and abroad. The communications network on Okinawa, with its airfields, port and lo- But he said the two Senate and gistic facilities, is considered vitally necessary for U.S. security two House committees that pass on commitments in Japan, South Korea, Taiwan, the Philippines, and Southeast aid legislation are unlikely to fin- Asia. (Please see AID, page 2) Much of the air war over Indochina originates on Okinawa's bases. Page 2 Guantanamo Gazette Thursday, November 11, 1971 9 GAZETTEER AID- o -e : ish work on a new regular aid bill by Monday. There- .a digest of late news fore Congress should pass a stopgap continuing resolu- tion, he said. A continuing resolution normally car- ries forward a program at the previous year's rate until the lawmakers enact a new bill. Bray said that the GAO, responding to an inquiry from Senate majority leader Mike Mansfield, D-Mont., A petition signed by nearly 1,000 soldiers, sailors had ruled that money freed from previously committed and airmen opposed to continued U.S. military involve- AID funds could not be used to pay AID's administra- ment in Southeast Asia will be sent to Secretary of the tive expenses. These expenses run some $14 million Navy John Chafee today for forwarding to Congress. a month and include employee salaries. The signatures were collected in the Saigon area by "The result of this ruling by the GAO makes it clear Navy tadarman James Mohler II, 24, of Cuyahoga Falls, that in the absence of the.continuing resolution AID's Ohio, and Ens. Philip 0. Geier III, 23, of Cincinnati. administrative apparatus, the entire Washington head- The petition is being sent to Chafee because Navy quarters operation on the one hand and the administra- regulations require that all such petitions be submitted tive oversight of programs abroad on the other will through the secretary. disappear and AID will be effectively out of business as of Monday," he said. Sen. Fred R. Harris of Oklahoma yesterday ended his brief campaign for the Democratic Presidential No- mination because "I am broke." PHASE II- , Harris said at a news conference that those who be- lieve as he does that America needs fundamental change will be exempt from controls. in 1972 "should not be hurt by an underfinanced So will disposal sales by the government, such as campaign." "There is a new populist coalition which sale of abandoned or confiscated property. Custom can turn this country around," he said. services and products made to individual order, such ".But I am broke and I cannot continue the cam- as leather goods, clothing, wigs and toupees, and fur paign actively for President," Harris said. "The cam- apparel, will also be exempt. paign office is closed." The exemption on raw unprocessed agricultural pro- ducts, financial securities and exports will continue San Francisco Mayor Joseph L. Alioto took the in effect after the freeze expires. stand yesterday in the $2.3 million fee splitting trial Donald Rumsfeld, director of the council, told re- in which he is a defendant. pcrters that other exemptions are being considered and Alioto testified that he told former Washington Atty. may be announced later in the week. Gen. John J. O'Connell in 1961 that it was his practice He also said he would not rule out exemptions to the to share fees with lawyers who worked with him on anti- pay standard announced earlier by the pay board. But trust cases. The trial is in Vancouver, Wash. Rumsfeld would not amplify that statement. The pay board has left itself a loophole that may Fourteen convicts were shot to death Monday stretch wide enough to squeeze a 12 per cent pay raise night in a mass escape attempt by maximum security through. But it may take months to find out. prisoners at the Philippine National Penitentiary. The Cost of living Council has established a three- Officials said one convict was wounded and five level classification system for monitoring price others escaped but may have been wounded. fluctuations. The first category, firms with $100 million or more must prenotify the price commission on Expressing hope for peace, Julie Nixon price adjustments. Second category, firms with annual Eisenhower yesterday joined in ceremonies launching sales of between $50 and $100 million must report quar- two new 8-cent Christmas .postage stamps that go on terly to the price commission information concerning sale across the nation today. The President's daughter prices, costs and profits. The third, all other firms said it was the tenth year that such special stamps will not be required to prenotify or report at regular "have brought an extra touch of color to the Christmas intervals to the commission, but are subject to the mail." standards and criteria that the commission may develop. Stateside Temperatures e Guantanamo Gazette Bos ton 37 N York 42 Local Forecast c0a.a.s.RAM. B. McCauley Public Attairs officer.L.dr. W. Doer X1 Philadelphia 43 saitorial Advisor .a aora Durres Washington 41 Partly cloudy with scattered rain . .702 zra Crews. .ditor Atlanta 32 showers and thundershowers this af- Assistant Editor.Y33 Jeff lariot after sports Editor.L/Cpl. Dennis Roby Miami 60 ternoon, becoming mostly clear staff Artist.1ss rrank siutts Detroit 37 sunset. Surface winds are northerly eaeline sditor.ra Tony madonski 35 at 3-5 knots turning southwesterly The MGUNTANAK) CAZETrE is published according to Chicago the rules and regulations for ship and station news- St. Louis. 37 at 8-12 knots with gusts to 20 knots papers as outlined in NAVEXOS P-3S and under the direction of the Naval Base Public affairs Officer. Dallas 50 becoming northerly again after sun- It is printed four days a week at government expense Oklahoma City 59 set. Today's high will be about 85 on government equipment. The opinions or statements in news items that appear heroin are not to be con- Los Angeles 58 with a low this evening of 75.

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