Eisenhower Outlines Reductions Of 1.8 Billion in Appropriations; State Dept. to Issue Suez Policy

WASHINGTON April 18--President Eisenhower, whose budget for next year has been a target of criticism, today outlined a method of cutting appropriation by $1,858,000,000.

He "commended" specific reductions totaling $1,342,000,000 and told the House it might wish to consider postponing an additional 516 million in spending authority requested for Army procurement and production.

But the President said there can be no substantial reduction in his actual spending budget of nearly 72 billion dollars for the fiscal year starting July 1 unless Congress "revises or repeals the governing laws."

be done under measures voted by previous Congresses.

One third of the actual spending forecast in fiscal 1958, the President said, will

So far the House has slashed 1 1/4 billion dollars from the budget requests and more cuts are in prospect.

New Suez Policy

WASHINGTON, April 18--The State Department is expected to issue in a few days a statement which will effectively lower the barriers against use of the re-opened Suez Canal by American ships.

Present official thinking--assuming the Western powers won't get a satisfactory arrangement with Egypt for operation of the canal--is that the United States should simply advise ship operators that if their vessels must use the waterway the operators should be alert to the requirements of U.S. Treasury regulations specifying that canal tolls be paid to Egypt only under protest.

Welfare Appropriation

WASHINGTON, April 18--Congress got itself untangled from a welfare appropriation controversy today and then quit work for an Easter recess until April 29.

After considerable confusion, the Senate and then the House passed a bill appropriating 275 million dollars for Social Security grants to the states.