Eisenhower Labels Budget Cuts 'Fearful Gamble' in TV Speech; Haiti Threatened With Rebellion

WASHINGTON, May 14--President Eisenhower told the nation tonight it would be "a fearful gamble" to cut defense spending in the face of Soviet might.

He warned that Soviet leaders are capable of the "supreme folly" of trying to destroy the free world if they ever should believe they could do so without destroying themselves.

Defending the administration's $71,800,000,000 budget in a direct appeal to the people, the President said in a speech prepared for coast-to-coast television and radio broadcasts: "The plain truth is that the price of peace is high."

He added that he sees no prospect for any immediate relaxation "of international tensions to provide the basis now" for substantial spending reductions.

Haiti Revolt Near

PORT AU PRINCE, Haiti, May 14--Haiti's ruling council today battled a rising tide of rebellion that threatened at any moment to explode into a shooting war.

A wave of general strikes and antigovernmental demonstrations swept this Negro Caribbean republic. Police raided radio stations in the capital carrying broadcasts urging the people to rebel.

Thousands of Haitians, largely illiterate, sharpened machetes and armed themselves with catapults and other weapons for possible showdown fights with police.

Dulles Favors Arms Inspection

WASHINGTON, May 14--Secretary of State Dulles, said today he favors a limited arms inspection agreement with Russia covering sparsely populated arctic area such as Siberia, Alaska and Northern Canada.

Dulles said it would be easier to win Russian acceptance of such an arctic disarmament plan than one covering a heavily populated European zone where there are political complications.