February 28, 1955

3d rept on Fed health services; finds chaos, waste, duplication; asks reorgn; urges closing uneconomical hosps and end to excessive Fed hosp bldg; urges end to free med care for merchant seamen, curb on care of veterans with nonservice-connected disabilities, voluntary contributory med and hosp ins systems for Fed civilian employes and dependents of service men in US; finds Govt responsible for all or part of med care of 30 million Amers; finds no one place where all med activities are coordinated; urges creation of advisory council; rept based on task force findings; Comm, without backing it, urges VA consider task force proposal that 19 VA hosps be closed; makes no proposal on task force recommendation that 3 mil and 1 VA hosp in NY area be closed but notes that at least 9 mil hosps and 9 infirmaries are marginal; urges that most gen hosps and clinics of Pub Health Service be closed; exceptions noted; Comm urges regionalization of armed forces hosp services, more realistic determination of disability ratings of veterans with service-connected disabilities, creation of natl library of med, creation of central authority for med care in atomic attack and reorgn of Food and Drug Adm; Holifield is only dissenter; opposes facilities cuts because of impending CD needs; opposes cut in services for dependents of mil personnel until ins programs are developed; urges med ins system for nation

Ollenhauer says Soc Dems will not back Adenauer policies after rearmament, Bundestag; will insist on priority for reunification talks; says latter are jeopardized by rearmament; Bundestag passes resolution stressing Saar borders as matter for final peace treaty settlement

Teamsters, other groups to join in drive, through new Economics of Distribution Foundation, for distribution economy and efficiency; pres Beck comments; economist D Kaplan blames outmoded systems for high costs and 'prices

Dr Bersohn, 29, and Mrs Rickett, 35, freed by Communists after 3 1/2 yrs imprisonment as spies; admit guilt, hold sentences justified, laud captors, int, Hong Kong; seen victims of 'brainwashing'; Mrs Rickett's husband still in jail, Peiping; she does not know his sentence but says his crime was bigger; both had been Fulbright fellows; Bersohn repts Rev H A Rigney and H Mills in jail but well; he, Rickett echo Communist propaganda; confessions of spying revd; relatives' reaction, US; CIA and State Dept silent; Bersohn and Rickett illus