European Stars and Stripes (Newspaper) - January 17, 1969, Darmstadt, Hesse                                Page 2 the stars and stripes Friday january 17, 1969 panel warn report Washington a Cabinet level report to presi Dent Johnson warns that the United states faces a possible recession when the Vietnam War ends and urges that the government be ready with inaction plan to Stop it. The report sent to Congress thursday by the president said the Economy would be subjected to the same deflationary pres sures that followed the Korea War. While not predicting any Dat for an end to hostilities in Viet Nam the committee of top White House advisers based estimates on an Assumption that the transition to peace could be essentially completed by july 1,1971in other words the Start of the 1972 fiscal  report said that if the cur rent 10 per cent income surtax is still in effect when the fight ing ends earlier phase out of the tax could help offset any recession and promote health economic growth. It also urged that a detailed plan to Speed up government spending on High Trow to transition from a War to peace i More t  import the Abl net Secretary committee since March Signatur Clatk Setfa ratified Lecce use Cromme wet it % a Jacie a secret Forf off lord Wirts budget director Charles j. Zwick an chairman Arthur m. Okun of the nomic  s Council of eco Sand billion by 1972. The report said the Cost of the Vietnam has been a 1econom to support report said. The amount available for fed eral peace and growth1 spend ing would amount to $22 billion. Of Tiff icon to Ion a year thereafter once peace is restored it estimated. Could ways cd France urged to return military forces to nato London a members of seven european parliaments including gaullist deputies in the French National Assembly have urged a return of French forces to nato qualified sources said  sources said the move was approved unanimously wednes Day by a committee of 29 parliamentarians who included eight French lawmakers four of them  vote came at a meeting Here of the defense committee of the Western european Union which brings together lawmaker from the six common Market 283 reserves lose in court Honolulu up a  court judge has dismissed a suit by 283 army reservist who claimed they were illegally called to Active  soldiers members of the 29th inf brigade at Schofiel Barracks alleged that their mobilization was illegal because Congress had not declared a state of War in  reservists also said the government had breached the contract they had signed which said they would not be called Tractive duty unless War or a National emergency was  Martin Pence in his seven Page written opinion Rule monday that the government had not breached its  soldiers being members of the ready Reserve were prior to activation members of the militia he  indicated above Congress has the Power As an attribute of sovereignty to enact Laws which in their effect May alter existing military contracts such As we Are herewith concerned Pence said. He also said the reservists in countries and  proposal will go to the we Assembly meeting in Paris feb. 20 and 21. It must be approved there and at a we Council meeting in May before it goes to the governments concerned. The committee made this recommendation to the Assembly that it urge France to reconsider its withdrawal from the nato military organization an that it urge France to define precisely the conditions in which it forces and facilities would be available if the peace  the proposal was included Ina series of recommendations to strengthen nato. France withdrew its military forces from nato in 1966 but says it is still a Loyal member of the Alliance and attends political  sources described the vote As a  delegates previously had refused to go against gaullist policy. That Peachin a number of Wilities might decl Index a cd not permit it  of u. A forces in Southeast Asia. But on i Assum within six months the Winner the defense department has released a draw ing of the Navy s new supersonic Carrier based fighter the f14a, chosen to replace the Navy s version of the tfx. A new fighter to replace Navy Al 11b Washington up Grumman aircraft has been selected to build a new supersonic fighter plane replacing the Navy s now abandoned version tithe tfx the f111b. Some observers expect $5billion will be spent on the plane in the next 10 years. The Nav announced that the selection of into no Ordinary con he said they ail gave uttered tract some of the rights of a private citizen and became amenable to the Laws applicable to the Mili tary when they enlisted in the Reserve. Autopsy ordered in death of i Fulda Germany is a autopsy has been ordered in the death of a huh army Cav Reg Soldier whose body was found in his bed Early wednesday a corps spokesman said thursday. The victim spec. 4 Thomasa. Shouse 20, of he troop was dead on arrival at the f u 1 d dispensary the spokesman said. Ile said Shouse is survived by his father Vernon of Memphis Tenn. Grumman located at Bethpage Long Island n.y., came after intensive  Mcdonnell Douglas of St. Louis mo., was the last company to be eliminated. Proposals for the plane were requested last july 17 after Congress refused to appropriatef111b North Rockwell general and Ling Temco Vought also entered the Competition but the Field was narrowed to two on dec. 17, the Navy said the new fighter originally known As the More Money for the version of the tfx. American dynamics Mideast scholar Dies new York up William Stevenson Smith an internationally known scholar on egyptian and Middle Eastern history and Art died at his Home in Cam Bridge mass. Smith 61, was curator of egyptian Art at uie museum of Fine arts vfx1 and now designated thef14a, will be a two Man plane equipped with Pratt and Whit Turbofan engines. It is expected to make it first flight in 1971, and to become operational i 1973. Dec countries seeking economic cooperation Garmisch Germany up finance ministers and the Cen trial Bank presidents of the six common Market countries agreed Here that govern ments unsettled by lust year s monetary crisis Are making greater efforts to coordinate their economic policies West German economics Man ister Karl Schiller told newsmen that the ministers and Bank chiefs noted however that More convergence of economic Airai and greater coordination of eco nomic policies Are essential to monetary stability. . Asks More details of soviet Mideast plan Washington up the United states Hus asked Russia to explain in greater detail it recent proposals for an Arab israeli Betti cent particularly whether the plan would permit Israel to use the sue  of state Dean Rusk handed a note wednesday night to soviet charge d affaires Yuri. Tcherniakov in reply to a dec.30 proposal which some ofic mis Here believe was primarily propaganda move but which others think May contain some Merit. The . Note also asked rus Sia to clarify the question of whether Israel s withdrawal tits boundaries prior to the june 1967 War would have to take place before the Arab states recognize israeli  United states heretofore has insisted on a package Deal in the Middle East involving direct negotiations Between the arabs and Israel. The . Posi Tion has been that any settlement imposed by the big Powers would not  soviet note which also went to Britain and France Trieste get around the unwillingness of the arabs to negotiate directly by providing that each Side should give its guarantees to . Representative in the mid dle East Sweden s Gunnar Jar ring. On thatt truce there would be a genuine Assur Ance of peace and the beginning of a full withdrawal of u. , the report gave the Fol lowing estimates for a rapid de mobilization the u. S armed service would decline do 1 00o000 per sons averaging 200,000 a Quarter starring in the third Quarter after the truce. Civilian personnel in the de sense department would be reduced by 170,000 during that same period. As a result of manpower reduction military and civilian compensation would be reduced by $7 billion by the end of 18  operating expenditures would drop by $4 billion Over a slightly longer period. Expenditures for procure ment would be reduced by $8 billion Over an interval of 30months. The report thus estimate that defense spending would be reduced 98 billion by the end of12 months $16 billion by the end of 18 months and $19 billion atthe end of 30 months. Negative tax the United states now i spending $80 billion for defense. In the absence of peace it was estimated that defense Pur chases would reach $86 billion after 18 months and $90 billion after 30 months. But if a genuine peace is reached the re port estimated that defense Pur chases could be reduced to $73 billion by fiscal 1972.among suggested new pro Grams the report recommended negative income tax which it said could make major inroads on poverty while preserving work incentives at a Cost of $15billion to $20 billion a year. It would still need to be reinforced by housing health education and Job  proposal was for an Urban development Bank also mentioned in Johnson s final budget. The problems of which could add to  estimated 600,000 to the labor Force during the 18 months Fol lowing a truce the report said a readjustment operations com Mittee should be established to take responsibility for detailed planning. 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