The Austin American from Austin, Texas • 1

LONDON STYLE CENTRAL TEXAS: Fog and drizzle Friday morning, partly cloudy and warmer Friday afternoon and Saturday. Temperature lange Friday: 65 to 84. (Details, Page 11). erica in LONE HOME Vol. 38, No.

149 Austin, Texas, Friday, October 26, 1951 2 Parts 52 Pages 5 Cents Am I lie Allies Awaiting rJ Churchill, Conservatives Near Keov on Lne a fiB rn on vacwy nrar pieait Years Expected Afte Attlee, Labor Lose 12 Seats With Half of 625 Districts In Wallace Free From Jail On $10,000 Bond BY LEONARD MOIIRMANN A silent prisoner to the last, Malcolm E. (Mac) Wallace was released from county jail Thursday i a Laborite in still another district. That made a net loss of 12 seats for the Laborites. who had an overall majority of only six in the last Parliament. The Laborites, at the halfway point in tabulation, had failed to take a single seat from Churchill's men and by all normal standards the full Conservative strength was yet to appear.

Churchill and his supporters campaigned on the theme that Attlee party lacked the skill and power to restore Britain to strength and to save her from becoming the battleground of a Ihird world war. Churchill, 77 next Nov. 30, spoke of it as the "last prize" he wanted the chance to get into the fight for Counter Offer lions but would retain Heartbreak and Bloody Ridges in the east and a piece of ground northwest of Yonsong, all won at the cost of many casualties. Major General Henry I. Hodes, head of the UN subcommittee, in presenting his proposal with maps, suggested the Reds accept it or face a less favorable one later.

He noted that during the long suspension of the talks, the battle line had moved many miles north. The Reds in the past have insisted they would agree only to the 38th Parallel as a cease-fire line. Recently there have been indications they would settle for less. FOR ONE THING, they failed to mention the parallel at Thursday's meetings. For another, the Peiping radio has been hinting recently that the Chinese consider their military task in Korea is about done.

A UN spokesman said the Communist offer to start from scratch on negotiations Thursday led to "hope that progress will be made." However, even if the buffer-zone is settled, there remain the Ques tions of supervising a cease-fire, exchange of prisoners and recom- mendations covering eventual with' arawai of troops from Korea. 80 MIGs ATTACK In -ii irii'iif-jg fcmmt mi in WINSTON CHURCHILL CROWDS SHOUT VICTORY Churchill Feels Long Fight Approaching Successful End LONDON, Friday, Oct. 26 (UP) Crowds surged through the streets of London chanting "We Want Churchill" early Thursday and in his home at 28 Hyde Park Gate, Britain's wartime prime minister began to feel his long comeback fight was nearing a successful end. Lord Woolton, chairman of the Conservative Party, left the Churchill house just 4 Allied Planes Hit or Destroy 36 Red Locomotives, 289 Cars at 3:10 p. approximately 70 hours after his arrest Monday in the gunshot slaying of Douglas Kinser.

The former University of Texas campus leader was free under bond in the slaying pending grand jury action. The bond was lowered from $30,000 at an examin ing trial earlier in the day. District Attorney Bod Lone said the 98th District Court Grand Jury is scheduled to convene Tuesday. THE US DEPARTMENT of Ag riculture economist was bound over for grand jury action by Justice of the Peace Travis Blakeslee at the examining trial. Four state's wit nesses testified.

Testimony did not indicate any motive for the slavina of the popular golf professional. Wiley O. (Pete) Edgar, 503 San Jacinto Street, testified it was his opinion Wallace was the man be saw leave the pitch and putt golf course clubhouse shortly before the course owner, Kinser, was found slain. He said he could not positively identify the accused. Tom Ericson, Department of Public Safety officer, testified he arrested Wallace about an hour after Kinser's death.

Ericson said Wallace had a cut left index finger and told him "to mind your own damn business" The officer said he asked Wallace where he had been in the last hour. Wallace' reply, the officer said, was, "no Defense Attorney Polk Shelton entered a plea of not guilty for Wallace to the murder charge at the opening of the examining trial Wallace rose in the spectator-jammed County Court-at-Law courtroom and said he did. not wish to make a statement The husky, black-haired Wallace 1 was signed out at the county jail at 3:10 His bond was posted by M. E. Ruby and J.

E. Greenhaw, both of Hays County. Sheriff Jack Gray, of Hays County, and Travis County Sheriff Ernest Best approved the bondsmen. The jailer. Speedy Lee.

said Wallace asked to see Sheriff Best shortly before the prisoner left the jail. f-'' V. Mld wal- iuiu uun, ieij mm teestl I think he is one of the grandest! fellows I ever met." Lee said he understood Wallar-p nlmn his wife shortly. He had tplpnh nfr earlier. Lee said, THE ATTRACTIVE brunette at motionless between the defendant's father and brother A Wallace and a wnVr; uuuijij ine morning examining trial.

She and Wallace separated Ans a She filed a divorce petition last year but later dropped it. Attorney Shelton said his client plans to stay in Austin with his wife and their two children. "He will be around for a while," Shelton said. Asked if Wallace plans to make any statement regarding the case, Shelton said, "He doesn't know anything about it the bov doesn't Know now they ever got him con- necjwi with it (the Kinser Wallace's wife has been one nf i the central figures in the investi- gation of the case which erupted I (tontinued on Page 16. Col.

6) Compromise Enemy Makes MUNSAN, Korea. Friday, Oct. 26 (JF) A concrete Allied proposal for a Korean buffer zone involving cession of about 200 square miles of territory by each side, put the next cease-fire move squarely up to the Communists Friday. Subcommittees met for one hour and a half and adjourned for the day at 12:30 p. m.

(9:30 p. m. CST, Thursday.) There was no immediate announcement of the results. Presumably the Communists gave their answer to the Allied buffer zone proposal or countered with a proposal of their own. THERE WAS speculation that gome sort of compromise would be effected after the Reds make a counter-proposal.

Upon this might depend the speed with which the United Nations and Communist negotiators settle this thorny question or go into possible new deadlock. The sudden Allied proposal was Introduced at a subcommittee meeting immediately after the truce negotiations were resumed, ending a 64-day suspension. It was on this issue that the previous talks were snarled, but the Reds themselves offered to start all over with a clean slate. A United Nations command spokesman said the Allied suggestion entailed a line generally following the preset battlefront, but with the Reds to give up about 200 square miles territory in the west and the Allies to pull out of a similar area in the east. A buffer zone two and one-half miles wfde would be created, most of it in North Korea, but dipping into South Korea at its western end.

It would run from the mouth of the Yesong River in western Korea to a point 114 miles southeast of Kosong on the east coast where the Allies are now 50 miles north of Parallel 38. Under this plan, the Reds would lose Kaesong. the old truce nego-tiatoin site. The Allies would give up some east coast and central posi- 7,711,194 Final Census in Texas WASHINGTON, Oct 25 (UP) Final census figures for Texas put its 1950 population at 7,711,194, gain of 1.296.370 over 1940. Roy V.

Peel, director of the Bureau of Census, calculated in Thursday night's report that the state's 1350 population was more than 36 times greater than in 1850, when Texas was first enumerated in federal census. The balance of population has shifted decisively to urban areas. Of the total residents, 4.838.060 live in cities and towns: 2.837.134 in rural areas. Urban dwellers account for 62.7 per cent of the population. The final summary showed 108 of 254 counties made population gains in the last decade, of which Andrews County had the biggest, percentagewise, 291.1 per cent.

Its population increased from 1,277 in 1940 to 5.002 in 1950. Four counties Ector, Midland, Moore and Orange, all spurred by oil booms or other industrial developmentmore than doubled in population between 1940 and 1950. Harris County made the biggest numerical increase for the period, 277.740, up to 806.701: followed by Lianas County, up 216.235 to 614.799 up 162.284 to 500.460, and i Tarrant, up 135.732 to 361.253 Population of counties ranged irom Hams' 806.701 down to Kenedy's 632. A-Bomb Production 'Revolution' Near CHICAGO. Oct 25 (4-Senator McMahon (D-Conn) said Thursday night the United States is "on the threshold of a revolution in production and profitable military use of atomic weapons a revolution in our power to deter the Kremlin." McMahon, chairman of the Senate-House atomic energy committee, declared at the same time that Stalin is going all-out he means business in atomic energy." The Senator added: "Each successive top secret intelligence report presented to the joint committee draws a little darker and a little trimmer picture of Russian progress In a speech prepared for delivery at a meeting of the American In-Btitute of Physics.

McMahon said America's stockpile of atomic weapons "has been the free world's mightiest shield against Red aggression." AS YOU a of S1 of to hot 50 was lire peace at tne helm of the govern ment. Final returns from Thursday's elections are not due until Friday night, but Labor Party leaders privately conceded the early trend meant the end of Britain's era of socialism. One predicted Churchill might have a majority of 35 seats or so in the House of Commons. For the last few months, th la borites have struggled along with a majority of only a half dozen seats. A swing of Liberal Party strength to Chufthill's Tories was a decisive factor.

In the last election the Liberals entered 475 candiates. This time they put up only 108. The "orphan" vote went Conservative in districts where it hurt labor most. The polls closed Thursday at 9 p. m.

Early Friday the counting reached the 323-seat mark, and the tabulation was suspended until about 11 a. m. (5 a. m. CST).

The remaining 302 seats will be accounted for in the later tabulations. By 2 a. m. Conservative Party headquarters had an air of "we're in." Shortly after 3 a. m.

Gerald O'Brien. Conservative press spokesman, said Churchill's followers should have a workine mainrit-v nf 30 to 35 in the new House of Commons. Returns from 323 district Labor 175 seats, the Conservatives and allied parties 145. the Liberals ana tne irisii Labor Party 1. The xrisn lapor win renresented one 1 LinnS ConserYatlVef' u3s nrt Tintnnw TrL0' thf While th.

ures for the nights counting thiv did not tell the story. The real story-was in the net gain of seats by the I However, Morgan Phillips, gen-j erai secretary ot the Labor Farty, would not concede defeat "The resuu cannot De decisively known until late Friday," he said. The first 275 districts reporting gave the Conservatives 47.9 per cent of the total rxinnlar vnto WJU1- naro1 with AO 7jj ui mose districts; 111 election. Tne comparsion for Labor was 50 5 per cent ox the total this year, against 48.2 last year. The Liberals had 1.7 per cent of the total in these districts, against 8.3 per cent in 1951.

Attlee himielf was re-elected to Parliament in the London suburo of West Walthamstow, polling votes for an 11.574 vote margin ever a comparatively unknown Conservative, D. L. Duncan. Last year Attlee ran up a margin of 12.107. With a Churchill victory, Attlee would go back to Parliament only at "leader of the ODDositinn the post Churchill has held the last six years.

The party winning the most seats in Commons chooses the prime minister and runs the government. Each of the districts voted only for its ow'n man, nothing else. Aneurin Bevan, left wins Social ist who quarreled with Attlee over arms spending policies and then closed ranks during the campaign, was re-elected with five of his close supporters. Bevan's chances of grabbing leadership of the Labor (Continued on Page 16, CoL 1) I LONDON, Friday, Oct 26 tffV-The Conservatives dealt socialism a smashing blow ia the national elections, and Friday were within reach of a victory sending Winston Churchill back to the prime ministry at the age of 76 after six bleak years on the sidelines. Results in more than half the 625 parliamentary districts pointed to a political and personal triumph for the old warrior who led Britain to victory in World War II only to be brushed aside when the war- weary people adopted the Socialist tuaDon Party promises of a better life.

The Conservatives wrested 11 House of Commons seats from Prime Minister. Clement R. Attlees Laborites. The Liberal Party ousted Truman Says He Overestimated Protests on Clark WASHINGTON, Oct. 25 (JPV-President Truman said Thursday the hullaballoo caused by his nomination of General Mark Clark to be ambassador to the Vatican was not as great as he had expected.

The President said there was no L-uiiLuti ueiween me esiaonsnmeni of an embassy at the Vatican and the historic American conception of separation of church and sW Discussing the issue at his news conference, the President also re- time lor the criticism to be aired, and for people to get it off their chests before Congress considers the nomination at its January session. ON OTHER MATTERS, Mr. Truman said: 1. Mrs. India Edwards, now vice chairman, is perfectly capable of serving as chairman of the Demo cratic National Committee but has told him she doesn't want to be chairman.

The President also added that John L. Sullivan had told him het did not want to be considered. Mrs. Edwards and Sullivan, former secretary of the Navy, have both been mentioned in speculation as possible successors to William AT. Boyle Jr.

who has resigned. Mr. Truman would not give any hint as to who he thought might get the chairmanship. 2. He feels hopeful some progress is being made in current State Department talks over the British-Iranian oil controversy, and hopes also for further progress.

3. He has a great many names under consideration for appointment to the two federal judgeship vacancies in Illinois, but hasn't made up his mind. The Senate rejected his two original nominations be cause of objections from Senator Douglas (D-Ill) who was not consulted in advance. DURING THE EXCHANGES over a possible new democratic chairman. Mr.

Truman remarked at one point that trial balloons had been raised for about 30 persons. I When he was asked about the possibility of Frank McKinney. In-! dianapolis banker, for the partv post, the President said McKinnev's name was one of the 30 he had in i mind. The President said the New York Herald Tribune certainly picked a fine man the "newspaper came out Wednesday night in sup port of General Dwight D. Eisenhower for the Republican presidential nomination.

The President had no other direct comment on the newspaper's action except a remark that it was something the newspaper had a perfect right to do. The President was told that Jake Arvey, Chicago oolitical figure, I On the had "commented favorably" on the editorial The President said J.ke iSa in 1948. Arvey was one of the Dre. convention boosters of Eisenhower for the democratic nomination in 1948. Two Austin Marines Return From Korea Corporal David Hawlev of 304 West 34th Street and Sergeant Walter B.

Sullivan Jr. of 2001 vvhitis Avenue were among the 1.307 Marines arriving in San Francisco aboard the Navy transport I.t Raymond O. Beaudoin from the Korea battle zone for reassignment after 30-day leaves or for release from active duty. Also aboard the transport was Sergeant Marvin R. Busch Jr.

of Route 1, Seguin. LUCKY Lucky in more wavs than one is this little gal, held in the arms of St. Paul Hospital nurse, Mrs. Margery McGuffin. She was born minutes before a five-alarm fire routed some 260 i patients from their beds at St.

rams nospnai in uauas. bne is the 8L'-pound daughter of Mr. and Mrs. R. P.

Lucky of Dallas. made a firing pass at Thunderjets during another rail cutting mission. mere was no damage. The Sabre jets escorted 30 fighter-bombers during an early morning sweep in the Pyongyang area. Wave after wave of the fighter-bombers caught enemy trains in the open before they could reach the shelter of tunnels.

First American Bomber Wing Slated for France WASHINGTON, Oct 25 UP-The 126th Light Bomber Wing was alerted Thursday for early movement to France to bolster the five American air groups already flying with General Dwight D. Eisen- ower 8 European Defense t.orces the flrst bombing wing stationed in trance since World War II davs. At the same time, the Navv dis-1 closed it may not have to call up any more naval air reservists bar- ring a change for the worse in the international situation. Rear Ad- miral L. A.

Mocbus. chief of the Navy's Air Reserve Training Command, said the Navy is filling its pilot needs through volunteers. Movement of the 126th Bomber Wing was announced by Genera! Hoyt S. V'andenberg. air chief of staff, who said it will leave soon.

An Air Force spokesman reported that it will be stationed at the Bordeaux-Merignac Air Field in Southern France. The 126th is an Air NaHnnai Guard unit of three squadrons from IH.nois and Missouri. Composed of to uoupias ts-'b piston engine bomb- ers. it has 1,600 officers and men and is commanded by Brigadier General Frank Allen of Chicago. The United States already has sent Eisenhower three fighter and two troop earner groups and has promised him three or four more fighter wings.

It also has stationed in England two or three groups of B29 or B50 medium bombers and one group of F84 fighters. This country also soon will havi five organized ground divisions in Europe. The 43rd National Guard Division already has started moving overseas and the 2Sth will begin leaving shortly. Besides the two National Guard outfits, the United States has sent to Europe the 1st and 4th Infantry and the 2nd Armored Division Tho 43rd oriKinally was composed of men from Connecticut, Rhode Island and Vermont and the 26th of men from Pennslyvania. But both were built to full strength by men from virtually all the states.

Catholic Chaplain On Honeymoon SAN FRANCISCO, Oct 25 (JV-A Roman Catholic chaplain of the Air Force, who recently returned from Korea, was honeymooning Thursday with his 24-year-old bride. He was identified by the San Francisco Call-Bulletin as Lieutenant Thomas J. Mitchell, 34, of New York, discharged as a patient from the hospital at Travis- Air Force Base near San Francisco last Friday. A base spokesman said the priest was found to be free of psychoneurotic symptoms. A Reno justice of the peace.

Laurence Laymon, said he performed a marriage ceremony there last Friday night for Thomas J. Mitchell and Pauline Zaina of Ukiah. Calif. Laymon said Mitchell was in civil- cm iju uipuuun of military Status. i i CLEMENT ATTLEE Railway Express Rates Increased 11 Percent by ICC WASHINGTON, Oct 25 VPy-The Interstate Commerce Commission Thursday granted a new general 11 per cent increase in railway express rates.

The authority was Issued to the Railway Express Agency, which was permitted to apply the increase on 15 days' notice to the public. The increase will apply to all types of shipments except daily newspapers, milk, cream, and corpses. The commission estimated the changes, less than half of what the agency sought, will increase express charge! by about $29,560,524 a year. Commission officials said the company has had $21 million in-erease in wage costs during the past year, plus a $1,500,000 jump in materials costs, and that the authorized increases "will not take the express operation out of the red." The company asked for Increases averaging 25 per cent and ranging in some instances to well over 100 per cent. The ICC rejected this formula and provided for a 30 cents per 100 pounds hike in first class rates covering the general merchandise field, with proportionate increases in all other classes of express.

The nrrfpr nrnvirfprf for 30-rpnt increase in all first class shipments under 100 pounds, In addition, the commission au- thorized a minunum charge of $1-50 on all express shipments, Annexation Foes Map Law Fight Members of the Travis County Club who oppose the annexation program of the Austin City Council resolved Thursday night to try to get the City Charter changed or a state law passed to prohibit "arbitrary annexations." The resolution came after several hours of debate during which attorneys advised club members on legal methods they can use to block the current annexation. Club President A. D. Potter advised members that the club- as an organization could not enter a suit or injunction. "It could support an individual, however," he added.

Club Treasurer Gene Howard read an opinion from his attorney saying that legal action would be "difficult" Attorney Hubert Lee. who is vice-president of the club, outlined some of the legal difficulties in trying to stop the City Council. Ryan has refused to honor this demand. He said to do so would be to renege on a signed and sealed agreement with shipping firms. The shippers themselves flatly refused to reopen wage talks with the wildcat stevedores.

Said Mills: "This is a dispute which must be resolved within the union. This situation is intolerable and must hp PTlHH immoHaolw "We recommended that the work enae tne wor stoppage re turn to their respective jobs im mediately. New York's milk strike was spttled Thursday a little more than 24 hours after it began. Mayor Vincent Impeilitteri made the announcement that an agreement had been reached in the dis-put which affected supplies for some 12.000,000 residents of the metropolitan area The peace terms were expected to be linked to a federally-approved price increase for milk, to be. shared in by dealers and drivers.

A price boost if granted by the Office of Price Stabilization would probably raise the retail price of milk by one and a half to two cents a quart. In New York, it now sells for 24 cnts a quart delivered and 211 cent at the store. before 3 a.m. (9 p.m. CST), "walk.

ing on air" with latest returns showing Churchill's Tories taking Socialist seats in a strong trend toward victory. THIS WAS THE hour of Chur-chill's apparent triumph but the venerable statesman was taking it quietly, even solemnly, friends said. Outside the old-fashioned house in Hyde Park Gate, a crowd of well-wishers shouted for a glimpse of the "next prime minister." But Churchill sat near a news ticker with his brandy and cigars, checking his returns. When Churchill became prime minister in the dark war days of 1940, he was appointed by King George. He went to the people for the first time in the general election of 1945 and was stunningly rejected.

The people he led through the great war again denied him power in the 1950 elections. lu en- neaa 01 lne Lon servatlve press office, visited Chur- chill just after 2 a.m. and found him puffing a cigar and examining charts in a downstairs room he usually uses as his painting studio. "He was pretty happy," O'Brien said. Churchill has faced too many crises in his 54 years in politics to display any emotion In public but he almost lost his celebrated calm when he went to vote at St Stephens Hall.

POLICE TRIED hard but failed to hold back some 200 to 300 persons who had been waiting for him for hours and it looked for a moment as though he would be knocked down by his admirers. In desperation, three big policemen surrounded the astonished old statesman, orartirallv liftpd him off his feet and crashed through a group at the gate of the hall with flying wedge" tactics. man, meanwhile, said an Egyptian labor boycott, obstruction and starvation tactics in the Canal Zone are creating a critical situation for the British. But British forces holding the Suez went on "iron rations" like a wartime field army and kept Brit- ih ships moving through the canaL They turned to canned foods in place of fresh foodstuffs that are no longer flowing into the zone from Egyptian sources. Egyptians also are reported pinching off fresh water.

Salah El Din told reporters he and the Russian minister talked about "Egypt's support of Russia's demand for appointment of a Russian judge to The Hague International Court of Justice and other questions concerning Egypt." (Available records show the Soviet Union has had a judge on The Hague Court since it was formed in 195 by the UN Charter. White Russia and the Ukraine, the other Soviet members of the UN. ar? not represented on the court.) The pro-government newspaper Al Misri said in a banner headline "Russia confirms her support of Egypt's fight against domination." The independent Al Ahrem said Kozyrev and Salah El Din reviewed the "Egyptian case." It added that Salah El Din said "No" when asked if armament affairs were discussed. (IN ASHINGTON, the State Department said the US has made no move to mediate between Britain and Esypt. It said Caffcry talked with King Farouk "about the general situation" brought on by Egypt's acts to get rid of the US EIGHTH ARMY HEAD- QUARTERS, Korea, Friday, Oct.

26 OP) Allied planes smashed the Korean war's record blow at Communist rail transport Thursday. Pilots estimated they destroyed or damaged 36 locomotives and 289 rail cars in a series of bombing and strafing attacks centered in the northwest. The old mark set Sept 19. was 20 locomotives and 272 rail cars aesiroyed or damaged. FOR THE FIFTH dav in a row.

Communist jets tried to break up the daylight raids. At least 80 of them pressed attacks aaainst 63 Allied planes. The Fifth Air Force said one Russian-made M1G was damaged. There was no report of Allied damage. In the ground fighting, Patton tanks again slashed to the outskirts of Kumsong and shot up that former Red supply base 30 miles north of the 38th Parallel.

Allied infantry battered at Communist hill positions southeast of Kumsong for the second dav in row Thursday and was stopped cold. In all there were three Allied attacks. Other US tanks struck out on the right and pounded Red positions five miles east of Kumsong for six hours before returning to their lines Communist troops who had withdrawn from Kumsong to the north were, caught by Allied artillery. An estimated 500 Chinese troops were killed. The Allied showed no intention seizing Kumsong Under the new buffer zone proposal submit ted by the United Nations command at the Panmunjom cease-fire talks.

Allied forces would withdraw and one-half miles south of Kumsong. On the Western Front, United Nations troops in an early morning attack Thursday made a smalt advance to a hill northwest of Yon-chon. which is 35 miles north of Seoul. A briefing officer said the attack was checked by intense small arms fire and grenades. The Allies then switched the attack to the southwest but again were fiercely engaged.

They finally broke off the battle. Artillery took up the attack and pounded the Red lines northwest Yonchon for two and a half hours, inflicting an estimated 200 300 casualties. Northeast of Yonchon in the Kumhwa area, a tank-infantry force slashed two and a half-miles deep into enemy territory before re-turnine to its lines. LIGHT ENEMY probing attacks were repulsed on the mountainous eastern front, which generally was quiet. The air war, however, continued and heavy.

While the Fifth Air Firce reported no Allied losses in a 10-minute clash between 31 Sabre jets and MIGS, in which one Red plane damaced. it said one Marine Corsair fighter was hit by ground and crashed. A third clash came when 10 MIGs LIKE IT MARKETS A14 RADIO All REUBEN B6 SOCIETY A6-10 SPORTS A20-25 EGYPT TO GET MILITARY AID UNDER SOVIET PACT Mediators Give Up in Effort To End New York Dock Strike From Wire Services CAIRO, Egypt. Oct 25 Egypt would receive military equipment from Soviet satellites under terms of a draft trade agreement with Russia, usually well informed sources said Thursday night. Details of the draft traie agree- ment which would make the Soviet Union and her satellites Egypt's! principal buyers and sellers in place oi Britain, were made known as it was reported British soldiers killed an Egyptian in the Suez Canal Zone.

The informants said the agreement stipulates that Czechoslovakia would supply arms and machinery while Romania would sell oil to the Egyptians. Russia would supply Egypt mainly with barley, wheat and newsprint, they said." The sources did not indicate when talks to conclude the Soviet-Egyptian tr.ide pact would begin. IV A NEW outbreak of violence in the tense Suez Canal Zone, British soldiers killed one Egyptian and wounded another last night. Interior Minister Fuad Serag El Din said Thursday. The Sovict-Egyptiaii meeting the midst of the British-Egyptian irisis over the Suez and the Sudan won headlines in Cairo newspapers Thursday.

A meeting botween King Farouk and US Ambassador Jefferson Caf-fery was reported at the same time in the official Gazette. The newspapers splashed front pages with pictures and stories of the 90-minute talk Wednesday at the Foreign Office between Russian Minister Semen Paviovitch Kozvrev and Egypt's foreign minister, Mo namro raian El Din A BRITISH MILITARY spokei- NEW YORK. Oct. 25 (API-Federal mediators gave up trying to end New York's waterfront strike Thursday night and rebel dock workers said it bound to spread to Philadelphia and Baltimore. "We're giving up," said Clyde M.

Milts, the nation's too labor trou- ble shooter for the US Mertiatinn i service. TT go back to wo rk" and'1 end The crippSnS tTeun Xch has clamped an economic vise on Npw work. the greatest port -in the world. The mediators withdrew after non-strikers, led by President Joseph P. Ryan oi the AFL International Longshoremen's Association, bolted the peace talks.

"We're not getting anywhere," Ryan said. "We're leaving." As peace talks collapsed, strike leader John (Gene) Sampson told newsmep: "That means Philly and Baltimore will be tied up too." He said dock workers in those two big ports are meeting now to decide whether to quit their piers. The rebel wildcat strikers in New York have insisted that a new work contract be junked and an-i other one with labor pay scales i be negotiated. CITY SIDE The one-way traffic plan has developed an' interesing sport for motorists. Page A17.

SPORTS The University of Texas rosh and Rice Owlets tangle here Friday with five former Austin High Players among the two teams' starters. Page A22. WOMEN Preserving world peace isn't just a man's job, clubwoman says. Page A6. DAILY FEATURES CENTEX A13, 30; Bl-22 CLASSIFIED A26-29 COMICS EDITORIAL.

LOCAL A17, 19.