The Daily Banner, Greencastle, Putnam County, 19 December 1968 — Page 5

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Thursday, December 19, 1968

The Daily Banner, Greencastle, Indiana

Page 5

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WASHINGTON (UPI) — The soybean tax proposed for the six.nation European Economic Community could trigger a major world trade crisis, spokesmen for farm trade associations and a high government official said today. EEC should expect U.S. retaliation in the form of the most severe protective action taken

On the Farm Front

By BERNARD BRENNER UPI Farm Editor in recent years, it was said. The EEC Council of Ministers meets next month to consider proposals for a $60-per-ton tax on soybean oil and $30 a ton tax on soybean meal. The action was defended as an internal tax, and not a tariff. “We call it a trade barrier, regardless of what name they put on it," said Chet Randolph

of Hudson, Iowa, executive vice president of the American Soybean Association. “It’s a low blow." He estimated that barrier would mean a $500,000 loss to American soybean producers who last year sold 206 million bushels of b e a n s to EEC nations. The heavy tax on soybeans

apparently is intended to reduce Europe’s huge butter surplus by increasing the price of margarine. The American spokesmen contended the “mountain of butter” was the result of unrealistic subsidies formerly provided European dairymen. “It is unreasonable to expect our farmers to pick up the bill for modernizing European agriculture,” said Kenneth D. Naden, executive vice president of the National Council of Farmer Cooperatives. “. . . It is the kind of thing that virtually invites retaliatioiv and therefore violates the spirit of GATT’s (General Agreement

on Tariffs and Trade) resolve for more liberal world trade and political accord.” An Agriculture Department official who did not want to be identified, estimated the effect of the tax would be to raise the average costs of soybeans by about 35 per cent. Official messages of protest against such an increase and warnings of certain retaliation have been sent “through channels" to the EEC, he said, but he did not look for reaction for several days. Randolph said ASA is urging the agriculture community in general and soybean growers in

particular to appeal to their congressmen. It is hoped the resulting congressional pressure would be felt by the Agriculture Department and the State Department in negotiations with EEC. Rhody McCoy is reinstated in old job NEW YORK (UPI)-Rhody A. McCoy, once-suspended and once-arrested administrator of the Ocean Hill - Brownsville School District in Brooklyn was

reinstated in his job by a state official and the school reopened quietly Tuesday for the first time Since Dec. 3rd. The school is one of the fddal points in a dispute between advocates of school decentralization . and the rule of school districts by neighborhood boards, and officials of the United Federation of Teacheirs who fear that the neighborhood jurisdiction will imperial not only the teaching careers but the physical safety of teachers. Ocean Hill-Brownsville is in a section of Brooklyn largely

populated by Negro and Puerto Rican families. The school has a population of al>out 1,700. McCoy entered the school at 8:10 a.m., shortly before students and teachers began to arrive. He said he would administer the school personally “for today and the next few days." McCoy was suspended Wednesday from his $30,000.a-year post in the troubled district after he was arrested trying to reopen JHS 271 without submitting a plan for the orderly operation of the school.

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