NOME NUGGET
OLDEST NEWSPAPER IN ALASKA—MEMBER ASSOCIATED PRESS
VOL. LXII No. 80 NOME, ALASKA, WEDNESDAY, JULY 6, 1960 Per Copy 15*
Eisenhower Cuts Cuba Sugar Import
Quota To U.S. bv !>.*> Million Dollars
Cuba Authorizes
Castro Seize All
U.S. Property
HAVANA, (/Pi — Fidel Castro’s
cabinet today authorized him to
expropriate all American pro
perty in Cuba and pay tor it only
if the United States buys more—
not less—Cuban sugar at premium
prices.
The cabinet said the expropri
ation was authorized because of
“the constantly aggressive atti
tude” of the U.S. government and ,
particularly the authority given
President Eisenhower by Con
gress to reduce Cuba’s sugar sales
to the United States.
Underlining the retaliatory na
ture of the action, the decree pin
ned compensation for the seized
property directly to American
sugar purchases.
It said the American owners
would be paid in 2 per cent 30
year Cuban government bonds
backed by a special fund. But the
fund is to come from 25 per cent
of the dollars paid for sugar sales
to the United States in excess of
3 million tons a year and at a
price of 53-4 cents a pound or |
more.
Gov. Egan Leaves For
Democratic Convention
JUNEAU, tr—Gov. William A.
Egan left Juneau today on a trip
which will keep him from his
desk for more than two weeks.
The Governor flew to Los An- j
geles today and work with the
Democratic party platform com- |
mittee prior to the opening of |
the party’s national convention on
July 11.
At the conclusion of the con
vention, Egan will go to Victoria,
B.C., for a meeting of the Alaska
International Development Com
mission.
Egan’s last trip from the capi
tol was a short-lived affair.
The chief executive boarded a
commercial airliner Sunday to i
fly north for a Fourth of July
speaking engagement at Seward. [
But the airliner had an engine
failure over Gustavus, some 59
miles west of the capitol, and had j
to return to Juneau. Egan was i
forced to cancel the engagement.,
British Woman Walker
Reaches New York City
NEW YORK, (Jt—Dr. Barbara
Moore, British vegetarian, arrived
in New York today, her trans
continental hike still uncompleted !
t!5 days after leaving San Fran
cisoc.
She rode six miles to the Hol
land Tunnel in a New Jersey
State Police car, maintaining she
will return tomorrow and walk J
that stretch.
Dr. Moore left San Francisco
on her 3,000 mile journey April
13, a day after two British para
troop sergeants, Patrick Maloney,
34, and Mervyn Evans, 33, set out
on a similar mission.
Dr. Moore eventually was out
distanced by the sergeants who
arrived here June 17, claiming a
transcontinental walking record
of 66 days.
WASHINGTON, IA*) —President
Eisenhower, accusing the Castro
regime of deliberate hostility to
ward the United States, Wednes
day cut imports of Cuban sugar
700.000 tons.
Eisenhower’s action means that
only 39.752 additional tons of Cu
ban sugar can be shipped into the
United States during the re
mainder of this year.
The United States pays about
2>2 cents a pound above the
world price for the Cuban sugar
it buys.
This subsidy, as it is in effect,
would have amounted to about 35
million dollars on the 700,000 tons
cut from Cuba’s quota.
Eisenhower acted shortly after
signing a bill passed by Congress
Sunday morning giving him au
thority to reduce import quotas
on sugar from Cuba.
Cuba's original import quota
for this calendar year was 3,119,-j
f>55 tons. All but 739,752 tons of j
that quota already had been ship- |
ped prior to Eisenhower’s action, j
In a statement issued after he
had signed the sugar bill, Eisen
hower said:
“Despite every effort on our
part to maintain traditionally
friendly relations, the government
of Cuba is now following a course
which raises serious question as
to whether the United States can,
in the long run continue to rely
upon that country for such large
quantities of sugar.
“I believe we would fail in our
obligation to our people if we did
not take steps to reduce our alli
ance for a major food product
upon a nation which has em
barked upon a deliberate policy
of hostility toward the United
Sattes.”
Pilot Powers Asks His
Family Not to Visit
Him Before His Trial
RICHMOND, Va„ (*i — U2 spy
plane pilot Francis G. Powers has
been emphatic in writing his fam
ily not to visit him before his
Moscow trial, attorneys seeking
to aid the imprisoned American
said Tuesday.
The attorneys told a news con
ference they could give no defin
ite reason for Powers’ comments.
With the attorneys at the news
conference was Barbara Powers,
wife of the pilot. She said she had
received a second letter from her
husband saying he was being well
treated. She said she could not
detect if the letters had been cen
sored.
The attorneys said her letters
and the two Powers had written
his parents had been studied carev
fully by psychiatrists. The three
attorneys were named by the Vir
ginia State Bar Assn, to offer
legal help to Powers. They have
applied for visas to the Soviet
Union.
Bomber Flies 6,000 Miles Non-stop
VANCOUVER, B. C., ilfi — A
Royal Air Force jet bomber, test
ing distance ar.d aerial refueling
capabilities, landed here after a
6,000 * mile nonstop flight from
England.
The bomber, a Vickers Valiant,
made the flight in just over 10
hours, averaging about 600 miles
an hour. It refueled at 30,000 feet
over Goose Bay, Laborador.
U.S. Will Act If
K U88ia Builds Sub
Bases In Cuba
WASHINGTON, life— President j
Eisenhower said the United States \
will act as it sees fit—if neces
sary—to protect its interests if
Russia establishes a submarine
base in Cuba,
, He said, however, he does not
regard the setting up of a Soviet
submarine base as a likelihood, j
but such a thing is a possibility.
As to what the United States
might do in such an event, Eisen
hower drew attention to the Ca
racas Resolution for mutual de
fense of the Western Hemisphere,
and to the machinery of the Or
ganization of American States.
Eisenhower said the OAS would
no doubt come into play but that
in its own interest this country
might have to act as it saw fit.
Eisenhower said this country is
trying hard to have the Cubans
understand that there is no quar
rel between the the people of
this country and them but that
the difficulties are caused only by
what he called the inexplicable
actions of their government.
The discussion came up as Ei
senhower was reported prepared
to slash U.S. sugar imports from
Cuba which have paid big pre
miums to Cuban growers.
The United States sent a for
mal diplomatic protest to Cuba
Tuesday over the seizure last
week of the American - owned
Texaco and Esso Standard Oil
Co. refineries. Castro took over
the U.S. refineries after they re
fused to handle imported Soviet
oil.
The U.S. note expressed hope
that Castro would reverse him
self and return the refineries to
their owners. But U.S. officials
saw little chance of this happen
ing. I
Sudanese Deny Reported
Landing Of U2 Spy Plane
KHARTOUM, Sudan, MV- The
Transport Ministry today denied
a report that an American U2
plane made a forced landing at
Khartoum airport Saturday. j
The report had been circulated
by Cairo’s Middle East news
agency: It said the U2 took off
for Nairobi, capital of British
ruled Kenya, after making emer
gency repairs.
The Transport Ministry said
no such plane had landed in
Khartoum or flown over Sudan.
ABC Schedules Hearings
At Anchorage July 13-15
JUNEAU, Oft—Public hearings
to discuss present and future state
liquor regulations were scheduled
today by the Alcoholic Beverage
'Control Board for mid-July in
Anchorage.
Board chairman Bill Ray of
Juneau said the hearings are
scheduled for the Loussac Library
in Anchorage on July 13, 14 and
1? hut the hearings will continue
until everyone has had a chance
to be heard, Ray said.
WEATHER FORECAST
Cloudy Thursday with rain
showers. Southerly winds 5 to 10
mph switching to the north 12-18 |
mph this evening. Lowest temp
erature expected tonight 40, the
high tomorrow 62.
In the past 24 hours, highest
temp. 62, lowest 40 Sunrise at
1:42 a.m„ sunset at 10:29 p.m.
Ike Rejects Rocky
Contention U.S.
Militarily Weak
By MARVIN L. ARROWSMITH
WASHINGTON. I#— President :
Eisenhower today rejected New J
York Gov. Nelson Rockefeller’s \
contention that America's military
strength has deteriorated.
At a news conference, the i
President also accused Soviet
Premier Khrushchev of very
crude attempts to interfere in
this country’s presidential cam
paign.
Eisenhower voiced confidence
that neither Democrats nor the
Republicans will find the Krem
lin leader’s advice of any value.
As for Rockefeller, Eisenhower
was reminded that the Republican
governor has been critical of the
administration in the economic as
well as the military fields, and
has contented that U.S. military
strength has declined while Rus
sia’s has increased.
The President commented that
since 1953 he has sent eight bud- j
gets to Congress. Five, he said,
were cut by Congress and three
increased—in each case in elec
tion years.
The President said that by and
large the Democratic - controlled
Congresses have agreed with his
Republican administration on
military spending.
It is true, Eisenhower went on,
that some individuals get deeply
concerned about our defense posi
tion, and some get worried.
As for Rockefeller, he is en
titled to his opinions and has a
right to express them. Eisenhower
added that he doesn’t think such
views will wreck the Republican
party.
The President then said Rocke
feller’s views are his own—and
they are not Eisenhower’s.
It was Eisenhower’s first news
conference in eight weeks.
Hearing to be Called On
Tin Bill After Congress
Reconvenes In August
JUNEAU, tP — Rep. Ralph J.
Rivers advised state officials to
day that a hearing is to be held
on his bill calling for the federal
government to subsidize discov
ery, development, production and
stockpiling of domestic tin.
Rivers emphasized that the
Only known tin deposits in North
America are on Seward Penin
sula.
The hearing will be scheduled
after Congress reconvenes in
August, Rivers advised Gov. Wm.
Egan in a telegram.
ANG Organizes New
Unit At Dillingham
JUNEAU, W—The Alaska Na
tional Guard yesterday announced
the organization of a new com
pany at Dillingham.
The new organization, Com
pany D of the Second Scout Bat
talion, 279th Infantry, was set up
to distribute an overstrength of
men in the battalion.
Khurshchev Warns Italy
VILLACH, Austria, tP—Soviet
Premier Khrushchev implied to
day that Soviet troops will march
into neutral Austria if American
rocket bases in Italy arc used
against Soviet bloc countries.
He suggested the Austrians
should advise Italy “not to play
with fire.’’
Largest Navy
Blimp Crashes
In Atlantic
LAKEHURST, N.J., (*—A huge
Navy blimp longer than a football
field plunged into the Atlantic
Ocean today with 21 men aboard.
One body was reportedly brought
ashore. Six or seven crewmen
were rescued.
The silvery airship crashed off
the central New Jersey coast
while searching for a missing
yacht.
Fishing boats and the aircraft
carrier Essex joined in picking
up survivors.
Capt. Andy Loekic of the fish
ing boat. Blue Chip, said the nose
of the blimp collapsed as if a
spike had been driven into it. He
said the blimp struck the water at
a 50-degree angle and sank.
But a spokesman at the Naval
Air Station here said the blimp
was afloat and was being towed
to shore.
The blimp was taking part in
an air and sea search for a racing
yacht overdue in New York after
competing in the famed Newport.
R.I.-to-Bermuda race. The yacht,
the Vat 69 and its six-man crew
were later reported safe.
The blimp was part of Airship
Airborne Early Warning Squad
ron No. 1. The craft was 403 feet
long, 118 feet high and 85 feet in
diameter. It had a helium gas cap
acity of 1V4 million cubic feet.
The Navy said the blimp was
designated the ZPG3W and was
the largest of its type in the world.
Aneurin Kevin,
British Labor
Leader, Dies
LONDON, UP)— Aneurin Bevan,
deputy leader of Britain’s Labor
Party and one of the great self
made men of British public life,
died today. He was 62.
Bevan underwent a major ab
dominal operation last Dec. 29 in
London and had been confined in
his rural home since leaving the
hospital Feb. 14.
Although the nature of his ail
ment has not been disclosed of
ficially it was generally believed
to have been cancer.
Bevan, a fighting Socialist with,
a fiery tongue, stirred up revolt
and controversy within his own
Labor party for years and de
lighted in tweaking Uncle Sam’s
nose.
He was the party’s spokesman
on foreign affairs and had Labor
won the last election he would
have been Foreign Secretary.
When he went to the hospital
for the abdominal operation last
December, there were exclama
tions of “Good old Nye” in some
of London’s most conservative
clubs where the very mention of
his name once brought apoplectic
rages.
Navy Finds Midget Japanese Sub
Believed Pari of 1941 Attackers
HONOLULU, UP) —The Navy is
investigating a Japanese midget
submarine, believed to have been
part of the force that attacked
Pearl Harbor Dec. 7, 1941.
Navy divers accidentally dis
covered the submarine June 13
about a mile outside the harbor.
The 80-foot craft, lying upright
on a bed of coral, was heavily en
crusted with marine growth in
about 70 feet of water.