PRE-COLUMBIAN ART—Howard Walker, director of the University Extension, above pieces together parts of one of the pre-Columbian art exhibits now on display in the main lobby of the Kansas Union. The artifacts were bought by Walker last summer when he was in Costa Rica with the extension program. Walker said the collection contained about 150 pieces which were bought mainly from Alfonso Jimenez, one of the most famous collectors of artifacts in Costa Rica. Panama Resumes Relations with U.S. PANAMA CITY, Canal Zone-(UPI)-Panama agreed today to resume diplomatic relations with the United States, and the two countries agreed to negotiate "all existing matters," at issue within 30 days. Within hours of the agreement, the American and Panamanian flags were raised simultaneously on brand new and separate flagpoles in front of Balboa High School in the Canal Zone. Wednesday, Jan. 15, 1964 The agreement to resume relations and to negotiate was reached in talks sponsored by the Inter-American Peace Commission sent here by the Organization of American States (OAS). About 1.500 students and faculty members watched the flagraising ceremony this morning. There was some grumbling among the students about the move, but others made clear that "we have nothing against the Panama flag—all we wanted was to get the American flag back up." SCHOOLS IN THE Zone opened today for the first time since last Thursday's rioting in Panama which was touched off when Panamanian students sought to raise their country's flag in front of the Balboa school. Barba school. There was speculation that the U.S.-administered canal area, which has been under virtual martial law since Thursday, would revert to its usual semi-military status. Military sources would not comment on this possibility, and it appeared probable that the decision would be made in Washington on the basis of recommendations from the men on the scene. Brig. Gen. Robert J. Flemming Jr., governor of the zone, asked Gen. Andrew P. O'Meara, chief of the U.S. Southern Command, to take charge when the Panamanian mobs got out of hand Thursday. take charge. ALTHOUGH THERE NEVER was a formal declaration of martial law, O'Meara took command of the zone and placed its non-official residents under an indefinite curfew for a time. The trouble started when Panamanian students "invaded" the zone and tried to raise the Panamanian flag outside the American High School in Balboa. Police dispersed the Panamanian students, and a few hours later armed Panamanian mobs attacked the zone and began destroying U.S. property in Panama City. began destroying U.S. students at Balboa High School had been resisting a government plan to remove the school's flagpole rather than display both the U.S. and Panamanian flags outside the building. THE AMERICAN STUDENTS had taken to raising the U.S. flag each day and standing guard around the flagpole to prevent its removal. As zone schools reopened, Panamanian schools were closing. The education ministry announced yesterday that the 1963-64 term has ended and ordered all public and private schools to close because of last week's violence. A communique said classes were suspended "at the request of students, teachers and parents." There was no indication how long the schools would remain closed. It also was announced that Panama's pre-lenten "mardi gras" carnival this year will be canceled as a gesture of "mourning for the tragic events of the past week." Money which was to have been spent on the activities will be used for "a monument to the martyrs of Januarv.1964." Lawrence, Kansas Daily hansan 61st Year, No. 72 After recommending to the legislators where to get the new money, Anderson also made some proposals on how to make the money go further. He recommended establishment of a "Little Hoover Commission" to seek out and eliminate wasteful duplication and inefficiency in state government. Anderson Cuts Budget; Requests Tax Increases "... We have only one state government and only one set of tax-payers, and from time to time a new look at growing bureaus of government is in the interest of the taxpayer," the governor said. THE WITIHOLDING system for income tax collections will also give the state $5 million to $6 million extra for the first year of collections. son took a long hard look at the TOPEKA —(UFI)— Gov. John Anderson sounded a call for greater economy in state government today, asking for a budget less than the state's current operating expenditures but requesting also some scattered tax increases. Anderson, in a budget message before a joint session of the Legislature, presented a $421.1 million budget for fiscal 1964-1965. His budget request was for $2.1 million less than the state currently is spending. THE GOVERNOR said his budget could be financed without new sources of revenue, but to be on the safe side he recommended measures that would give the state an extra $15 million. Anderson asked for a cigarette tax hike of two cents per pack that would produce $5.2 million; a 48-cent per gallon increase in liquor taxes that would bring in $1 million and a withholding system for collection of state income taxes that will produce $2 million. in addition he sought a beer tax hike worth $390,000 and a one per cent increase in interest that banks pay on state accounts that will bring in $800,000. See related story on page 3. ANDERSON continued, "I have in mind that a commission of informed men from the varied segments of our business and economy of the state could and would be willing to review many facets of our governmental structure today and recommend beneficial changes. . ." And if that wasn't enough to set the legislators to wondering, Ander- Pay Increase Hinges On Anderson's Action If Gov. John Anderson today approves KU's request for an average 12 per cent increase in professor's salaries, there is a good chance KU salaries will top those of Wichita University. WU was admitted last year as a state institution, and as a municipal university, it had a higher pay scale than KU. HOWEVER, KU is more concerned with raising itself in comparison to schools nation-wide than surpassing Wichita University, according to Raymond Nichols, vice chancellor in charge of finance. The measure must be approved by the budget session of the Kansas Legislature—now in session—to be made final. The Weather Bureau predicts clear to partly cloudy skies and warmer temperatures today and tonight. Low tonight will be around 18. There will be a slight cooling trend Friday with the high temperatures expected to be around 39 degrees. He said he was told the rebel in charge of the insurgents' post in the cable office was heard to speak Spanish. Lillicoe did not identify him as a Cuban, but said: Texas Honors Former Student U. S. INFORMATION Officer Stuart Lillicoe, one of the 54 Americans reaching here, called the takeover by "Field Marshal" John Okello and leftist political leaders "a well-planned and executed coup." A 32-year-old graduate of the KU city manager training program has been chosen as one of Texas' top five young men of the year by the Junior Chamber of Commerce of that state. Weather Jerry L. Brownlee, Lawrence native, has been city manager of Fort Worth, Texas, the past year. Brownlee earned the A.B. degree from KU in 1953, and was elected to Phi Beta Kappa. He received his master of public administration degree in 1956. Zanzibar Riot Rages; Claim Cuba Involved DAR-ES-SALAAM, Tanganyika—(UPI) More fighting and looting was reported today on the island nation of Zanzibar, where a leftist revolt deposed the British-backed sultan last weekend. predence. Refugees taken from the island yesterday by the U.S. Destroyer Mianley said on reaching this neighboring nation that a Cuban was in charge of a rebel stronghold in a cable office, two Cubans in battle dress were seen in the streets, and at least two Cubans headed sections of the rebel army. Other reports reaching here said Cubans played roles in the coup, which deposed Sultan Seyyid Abdulla Bin Khalifa only 34 days after Britain granted Zanzibar independence. SWAHILI IS the language of many African tribesmen. The revolt appeared to be backed by Zanzibar's African majority, which had been ruled before and after independence by an Arab-dominated government. "He was obviously not a Zanzibari but he could have been a North African. He spoke no Swahili but did speak English." Reports from the island said about 80 persons have been killed and 500 injured since the rebels seized police barracks and communications centers Sunday morning to begin the coup. The 33-year old Sultan escaped on his yacht and Tanganyika offered bim political asylum. Kenya yesterday ordered the yacht to leave its port of Mombasa. OKELLO, THE KENYA tribesman who appeared to be in control of the new regime, said over Radio Zanzibar last night that four other officials of the deposed government would be hanged, including former Finance Minister Sheikh Jumalay. He said the four officials ought to commit suicide. Many Britons remain on the island 22 miles off the African coast and reports of violence said that no Whites have been harmed. But the United States closed down its space tracking station there and removed all its personnel from the island. Project Commander George Brown said the station was locked up and abandoned. "It was still there when we left," he said. state's system of county government. "The other area where I believe we can lay some ground work for needed change is in the structure of our county government. "Not only in Kansas, but throughout the nation there is too much tendency to be unyielding to the vast social, economic and political upheavals of our day." Anderson said. "The people are not receiving optimum service for their tax dollar," he said. HE CONTINUED. "County government has too long been stereotyped and remains in the form cast by the settlers of the state." "While it may be difficult to bring about geographic reorganization completely upsetting political and private interests, it is entirely possible to begin a trend toward functional consolidation in governmental services." Anderson added. Anderson then asked the legislature to provide travel and administrative funds for his "Little Hoover Commission" and the "County Reform Commission." THE GOVERNOR told legislators that his budget of $421.1 million was adequate to meet the clear and apparent needs of public interest, but was "soundly conservative in financing." Fear Deaths Of US Pilots In Viet Nam SAIGON, SOUTH VIET NAM, (UPH)—Two U.S. Air Force pilots and a Vietnamese are feared dead in the crash of their B-26 bomber, which apparently was downed by Communist fire, a U.S. military spokesman said today. A search began at dawn today for the Vietnamese Air Force plane's crew 40 miles northwest of Saigon. The plane crashed just before dark last night and rescue workers could not reach the site because of the darkness and heavy Communist fire in the area. "There is no evidence of survivors," the spokesman said. "The victims will not be identified until relatives are notified." THEIR DEATHS, if confirmed, would bring to 167 the number of U.S. servicemen killed in South Viet Nam in the past three years, since large-scale U.S. aid began here. The crash followed the wounding of two other Americans in operations against the guerrillas south and southwest of Saigon. Despite intensified Communist activity, U.S. Ambassador Henry Cabot Lodge took a risky drive in an unescorted civilian car yesterday to pay a surprise visit to a provincial capital 25 miles south of Saigon. Lodge, accompanied only by three aides, went through Communist infested territory but encountered no trouble from the guerrillas. LODGE SPENT TWO and one-half hours in Tan An, the capital of Long An province. He met with Vietnamese military leaders to discuss their plans for winning the province back from the Communists, who established clear dominance in all but a few areas there last year. Lodge, dressed in a sport shirt and slacks, rode in a blue American car with civilian license plates, accompanied by his military aide, Lt. Col. John M. Dunn, a bodyguard, and a driver. The Communists rarely bother civillian vehicles on such daytime trips on the Tan An road, but there have been instances of sniping and mine explosions.