European Stars And Stripes (Newspaper) - July 24, 1968, Darmstadt, Hesse                                Page 8 the stars and stripes wed newday july 24 tax demands stir Vatican to action big Church state fight shaping up in llah n a a m m a j _ � _ _ _  of t  a pm my i 4hm m Ima Jav t of m 4tmm 4 it m a i i by Edward Maori Rome a it is the oldest institution in the Western world and possibly the richest. Its collective wealth ranges from the Gold in countless crosses an candlesticks to its unmatched Patrimony Oart to the properties and business holdings of the  the italian government is determined to get a tax share of the earnings of the roman Catholic Church in this  though its fight seems hopeless the Vatican is Ashingback with denunciations and the veiled threat of economic reprisals. On the surface it appears tha tall the Vatican is really facing is the loss of up to $12.8 million in Back taxes and up to $2.4 Mil lion a year thereafter. Not a Gigantic sum for an institution of Gigantic wealth. But the Vatican clearly sees a far bigger Issue at stake the very status of the head quarters of roman catholicism Premier Leone. Won t oppose majority in the land where for Cen Turies the Church was supreme and there was no secular Power big enough or Strong enough to interfere. It is taken for granted that from next november the Vati can by Law will be obliged to Start paying taxes on the dividend income earned by its Stock investments in Italy. This has been made Plain by a majority in parliament. Premier Giovanni Leone Christian Democrat and a sup Porter of the Church bowed tothe inevitable by announcing that his government would no oppose the majority View. He will not introduce any Bill to prolong the tax exemption that up to now has spared the Vati can from paying taxes like any other  Vatican however does not regard itself As comparable to any other stockholder. In an angry blast against Leone the holy see recently declared that paying taxes would reduce the Money the Church devotes to religious and charitable workaround the world. It asserted that lifting t h dividend tax exemption would violate the 1929 Lateran pact which restored to the Church a special status in Italy after Testate ended the Church s Histo Ric temporal Powers in 1870.this is the Crux of what is shaping up As the most serious Church state dispute in Italy since the Lateran pacts we renegotiated under fascist dicta Tor Benito Mussolini nearly 40years ago. By All indications the Vatican is preparing the strongest bar gaining position it can to protect most of its other privileges against the expected time when the Lateran pacts eventually will be revised. Parliament Las year demanded the Start of negotiations to revise the  big question is whether the Vatican intends to use its Vas Stock holdings to Force the government to preserve most of the Church s  economists believe Yards and chains of business and the Vatican is Ironside. That residential properties. Unlike a move on the Bas Irthy through its holdings the Vatican the dividends these holdings Are Church must protect its a can exert a profound influence tax free for the Church and this for its own purposes me " " is a privilege the Vatican Watson the Overall italian  government estimates that the Vatican holds $160 Mil lion Worth of stocks in italian companies. This is an estimated1 per cent of All italian stocks providing the Vatican with reported annual average of $4.8 million to $6.4 million in dividends. Unofficial estimates put the holdings much higher. In addition the Vatican own various construction and rental companies land farms Vine to  massive shifting of Vatican investments out of the Stock Market into other areas to escape taxation could affect Stock trading it could cause a flight of Capi Tal of the kind that posed a major economic problem for the government during the recession of several years  have begun to spread that in its fight with the state �./= Nixon Strong in Dixie but Wallace is a threat editor s note in a year of political uncertainties there is one certainty that no on challenges that Southern republicans will go almost unanimously for Richard m. Nixon at the party s forthcoming National convention. The mood in Nixon and Wallace country i described in the following Dis Patch. Up by John g. Warne Atlanta up Southern delegates to the Republican National convention sit staunchly around the campfire of Richard m. Nixon. But looking ahead to november they can escape the Shadow of George  deep South belongs to Nixon at the Miami Beac convention. As things now stand he is expected to get Allbut 35 01 40 of the 210 votes from these eight states Vir Ginia the Carolinas Georgia Tennessee Florida Alabam and Mississippi. Even More May have swung Over to the former vice president by convention  Many Southern gop leaders Are looking beyond the convention at the Swath they fear Wallace will Cut through their area in november. Nixon has won the hearts of Southern Republican stalwarts chiefly for two reasons he Wasoff and running for the nomination Long ago he never has hesitated to work hard an Long for local candidates in Dixie. On purely ideological grounds Many probably would have preferred Ronald Reagan. Buthis Coy attitude about the race Cost him heavily in the  a. Rockefeller can Muster roughly two delegates votes from the entire South. Republicans Are generally convinced they could carry Dixie in november if it were not for Wallace. But they expect Wallace to carry several South Ern states and make deep in roads into the Republican turn out in others. The Only southerner with any avowed Hope of get Ting on the gop ticket is  Kirk of Florida who has made frantic gestures in virtually every direction in Hopes of a vice presidential bid. But Kirk goes into the convention lacking even a favorite son Des ignation. Nixon appeared to have cornered 25 of Florida s 34 delegates when Kirk announce that although Nixon was a great pal and Reagan had him All excited he was for Rockefeller. Rockefeller has on Delegate in Florida. Florida gop chairman Wil Liam Murfin agreed with Kirk on one subject George Wal lace. Murfin has advised candidates in Rural North Florida not to attack Wallace openly because Wallace assaying what Many frustrated disturbed worried and some times angry americans want to  this is largely the tack take by Many Southern republicans. They rarely speak out against Wallace. Instead like Kirk they base their stand on the theory that a vote for Wallace amounts to a vote for the democrats. Kirk began talking last Yea about a Johnson Wallace plot to keep president Johnson in the White House. When Johnson dropped out Kirk changed this to encompass the other demo cratic candidates. Nixon appears to be weaker in Alabama than in any other Southern state. State go chairman Alfred Goldthwaite says the delegation is about evenly divided Between Nixon and Reagan. As for what will happen i Miami Goldthwaite offers some advice in the baroque manner if Humphrey continues Lead ing Nixon by five or six Point sin the polls and Reagan becomes an avowed candidate and Wallace continues to climb then we mild have a situation where the majority would consider going for Reagan. On the other hand if Nixon closes the Gap and Wallace does no continue to gain and Reagan does not become an avowed candidate you could have them moving toward  but come november if therein anything sure it is that Wallace will carry Alabama. Nixon appears to have missis Sippi and Tennessee locked up. Tennessee went democratic in 1964, despite the South s move toward Barry m. Goldwater. But political leaders in the stat seem to agree that Wallace will not be taking any More vote from the gop than he will from the democrats. Georgia delegates Are overwhelmingly committed to Nixon. Reagan s few supporters Are squabbling among them selves Over whom the California governor likes the most. Nixon also apparently has South Carolina locked up. North Carolina republicans currently arc solidly behind Nixon. The party Leader is rep. Jim Gardner who is running for governor at the age of 34. Gard Ner was reported committed w Nixon. Nixon has All but three of Virginia s 24 delegates and observers feel lie has a Good Hance of carrying the state w november. To Fri i r nov i Urf Al i it to off ii a if Fri i Muf Elmer d. Prank production m�n9 Henry bpm Tobi circulation my thl newspaper to an authorised publication of the department of is fam . Armed Forcee overseas. The stars and Ripe is  by a w,, . By ropes command in Epport of the command i we information program of the department of defense. Contents a tripes do not necessarily reflect u official View of the . Of i the department of defense. 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