Dulles Denies China Policy Shift; UAW Workers Settle GM Dispute

WASHINGTON--Secretary of State Dulles sought to reassure Chiang Kai-shek Thursday of continued U.S. support for his Nationalist China government.

Dulles sent a message to Formosa in the wake of Chiang's outcry Wednesday against statements by Dulles the day before.

Dulles said Thursday he wanted to straighten out confusion compounded--what he called "an exaggerated idea of a shift of position on our part...misinterpreting the misinterpretation."

Dulles did not deny any shift in policy. Although his news conference remarks two days ago were widely interpreted that way, State Department officials said it was more a shift in emphasis than shift in policy.

They said this basic policy remains: no appeasement of Red Chinese aggression but willingness to negotiate peacefully, support by arms if necessary of the existence of Nationalist China on Formosa.

UAW Strike Ends

DETROIT--The United Auto Workers Union struck and shut down General Motors' widespread auto manufacturing empire in the United States Thursday.

It took the union less than an hour to close up the automotive end of the world's largest manufacturing company.

About 250,000 U.A.W. members walked off their jobs at 126 plants in 71 cities from coast to coast.

Negotiators, headed by U.A.W. President Walter Reuther and G.M. Vice President Louis G. Seaton, continued their all-night efforts at a settlement up to and past the deadline.

Chrysler Corp. and Ford Motor Co., their settlements already in Reuther's pocket, were troubled by scattered strikes, too. But, unlike General Motors, they continued to produce 1959 model cars.

Seaton said General Motors saw "no necessity for a new offer beyond that of the Ford pattern, which the union said was good for the U.A.W. and for the nation."

General Motors has an offer on the table that parallels the economic terms of the Ford and Chrysler settlements--improved layoff pay, a new severance plan, higher pension benefits, and continued cost of living and productivity wage increases.

Ike Plans G.O.P. Strategy

President Eisenhower has called a White House strategy conference for next Monday to try to build a fire under the Republican congressional campaign.

Eisenhower told his news conference Wednesday that unless Republicans help out with their time, brains and money, the cause of moderate, free enterprise government is probably going to be lost.

The consequences, he added, would be incalculable.

Eisenhower also added appearances in Iowa and Kansas and a weekend stopover in Denver to his own Western campaign tour this month.

Before leaving for the West on Oct. 17, the President will spend Columbus Day, Oct. 12, in New York City.

White House press secretary James C. Hagerty told reporters Thursday he may shortly announce some political activity in connection with the New York trip. Present plans call for Eisenhower to attend a wreath-laying ceremony at Columbus Circle in Manhattan and lay the cornerstone of a 20-million-dollar interchurch center in the Columbia University area.

"This contract represents very substantial progress for General Motors workers and their families," Reuther said. "It is good for GM workers and it is good for the country because it is non-inflationary in character."

When the strikers walked out, the shutdown of GM's automotive division was completed within an hour