May 7, 1953

Communists back down on demand that POWs be shipped to neutral nation; offer new plan giving custody to neutral comm with reprs from Czech, Poland, Switzerland, Sweden and India; ask 4-mo 'persuasion' period; ask vesting final authority on POWs in pol conf; urge neutral nations provide equal number of troops to carry out plan; Harrison seeks Govt-level decision; asks 1-day recess

de Gaulle withdraws his party Reunion of the French People (RPF) from organized pol; leaves members free to act as individuals in Parliament; says party will continue mission to change regime

Sec Dulles sees SE Asia imperiled by Vietminh invasion of Laos, Sen com; cites threats to other areas

Sen subcom restores some, sustains other House cuts in Ind Offices Bill

Dulles and Stassen defend request, Cong coms; testimony reveals shift in stress from Eur to Far East; Dulles estimates $300-400 million will be unspent at end of fiscal '53; Stassen sees $200 million minimum; repts $11,859,500,000 unspent as of Mar 31; cites factors that may affect balance at end of fiscal '54; cites $200-million savings by cutting aid to GB for jet planes, shipments of US wheat, cotton and lard