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Winnipeg Free Press (Newspaper) - December 16, 1966, Winnipeg, Manitoba TODAY'S INDEX JUMBLE CONTEST......'............Page 34 Classified 32 to 41 Movies 29 Comics 30, 31 Sports 43 to 48 Deaths 11 Television 28 Finance ___ 23 to 25 Women........17, 18 Final Edition First Section Pages 1-16 VOL. 74 NO. 68 PRICE lOc 15c WINNIPEG, FRIDAY, DECEMBER 16, 1966 Sun RIMS a.m. Moon p.m. Sun Sets p.m. Moon Sits p.m. FORECAST: MILD; 20 and 35 Loans Legal: Roblin Admits Error 'In Rates Reference By PETER RAESIDE Premier Duff R o b. 1 Ln stoutly defended opera- tions of the Manitoba de- velopment fund Thursday and its principle of "using public credit for the pub- lic good." In an impassioned 105-minute speech in the legislature, he upheld the secrecy surrounding the fund's individual trans- actions. And he blasted opposition allegations of irregularities in multi-million-dollar loans made by the fund to Churchill Foresl Industries Ltd. and Simplot Chemical Co. Ltd. But he admitted making an er- ror he told the house Mon- day that the fund loans money at VA per cent more than the government pays for it. The gov- ernment now pays around. 7% per cent. The premier. accused oppos- ition critics of producing "facts out of a hat in the last few days as if there has been a. scan- dalous when there had been virtually no criticism in the last legislature when the fund's powers were expanded. His speech, often punctuated heckling, was a rousing reply to three days of opposition questions on the fund's opera- tions. Saul Cherniack (NDP-St. John's) got the ball rolling.when he disclosed in the house Monday that the fund had loaned Churchill Forest Indus- tries million at what be called a low interest rate of 6Vt per cent. The ..disclosure-erupted into a storm 'Wednesday with reports that the fund had also loaned million to the Simplot Chemical fertilizer plant at seven per cent interest. Premier Roblin, speaking in throne. Speech the opportunity for a wide review of the fund's operations, terming it a "tool" for industrial develop- ment in the province. But he declined to elaborate specifically on the financial backing of the controversial "million dollar integrated forest industry to be developed near The ..Pas by Churchill Forest .Industries, a subsidiary 'of the-Swiss-based Monoca A.G. firm. Premier Roblin quoted from a report from the auditing firm of McDonald, Currie and Co. which said the loans approved by the fund to date were in accordance with the act. "I hope the idea (of irregul- arities) doesn't get currency ataong the public, as. this will beyond doubt damage the effec- tiveness of the he He' went on to list the questions asked before a loan is granted, incuding the project's economic feasibility, availability of markets and the investigation of-'the company's personnel. Please See .LOANS Page 5 'Hate' Act Changes Proposed Creditor, crowd into the Royal Alexandra Theatre in downtown Toronto Thursday to their proof, of claim at a meeting of the Prudential Finance, Corp., creditors. About are owed money by the bankrupt company. PRUDENTIAL FINANCE Creditors Learn Bad News At Stormy Session; Curse Directors, Applaud Call For Lynching By KEN SMITH Canadian Press Business Editur TORONTO (CP) In a stormy session that brought frequent curse's and even a cry for a lynching, creditors of Prudential Finance Corp. Ltd. had their first meeting Thursday and learned that their position shapes up even worse than had been expected. J, .X., ,BiddeU, NATO Plans To Explore New Paths Belgian Foreign Minister Urges Galling In Outside Experts By ALAN HARVEY PARIS (Staff) The NATO council agreed Thursday to take stock of 17 years of Atlantic partnership and study ways .of adapting the alli- ance in the years ahead. Foreign Minister Pierre Har- mel of Belgium, taking up proposals', first, advanced by Canada-three years ago, called for a close1 look at past developments as a future guide. He suggested specifically that outside experts might consider, whether NATO is the most suitable forum for developing East-West contacts. His proposals reflected the growing sense of changing, trends in an organization whose members generally agree, that miliUry danger no longer hangs so menacingly over Europe. External Affairs Minister Paul Martin, making Canada's contrit ,-tion in Thursday's dis- gave a cautiously opti- mistic analysis of Soviet inten- tions and East-West relations. Later he told reporters he will be surprised and disappointed if speedy progress is not made on a .non-proliferation treaty. He gave .the impression he expected such, a treaty-to result from disarmament talks in Geneva, perhaps early next year. Secre- ;ary .of State Dean Rusk, speaking for the United States in what' appeared to be a different key, said he could not at this time be optimistic about when such an agreement might i reached. Please See NATO Page 12 J, L., of Glarieson Co. for the comp_any ;in bank- ruptcy 'iDec. told creditors that losses -iow known stand at and more -will come. Warning that it -will take., njany details, said" losses Off In January OTTAWA (CP) Finance Minister Sharp confirmed Fri- day federal authorities were tipped off last January by ac- countant William Gruber that something was amiss with Pru- dential Finance Corp. Mr. Sharp told the Commons that Mr. Gruber was formerly employed by the auditors for j will run between and pjoy When Prudential Fi- nance was first reported ;in trouble a month ago, it showed ;a book value, of The by "about 800 rof the ribtehold- See PRUDENTIAL Page 12; Prudential Insurance Co. of America Friday emphasized that there is absolutely no connection be- tween their firm and the Prudential Finance Corpora- tion or ithe North American General Insurance and Wentworth Insurance com- panies. the Prudential group. He had been dismissed from his job. Prudential Finance three in- surance .gone bankrupt in recent weeks. Please See TIPPED Page 5 House Gets Set Stoii Air Strike Confusion Reigns As House By VICTOR MACKEE OTTAWA (Staff) Senator Douglas Everett appealed in the senate Thursday for the inclu- sion of the words "language" and "national origin" in the definition of "identifiable groups" under the proposed hate-propaganda amendments to the Criminal Code. i The newly appointed Manitoba j senator, making his maiden' speech, said he was concerned with the drafting of the section which dealt with "identifiable groups." -He npted that the special Bommittee on hate pro- paganda in ijts report referred to a "group.'' Sen. Everett submitted that this was quite different. In the legislation before the upper house an "identifiable group" meant any section of the public distinguished. by color, race or ethnic origin. The special com- mittee talked about religion, Please See 'HATE' Page 13 By BILL MORRISS The Manitoba legislature recessed for the Christmas- New Year, holiday. Thurs- day, but only after one of the weirdest procedural wrangles in the' province's history. One interpretation of the day's events was .that the throne speech debate was over, but a "post throne speech debate" would con- Legislature Reports Final approval given to grants for municipalities Page 29. Education referen- dum costs get royal assent Page 29. 0 Spending estimates to be revealed Jan. 19 Page 30. House recessed for hol- idays after procedural wrangle Page 1. Roblin defends Manitoba development fund Page 1. Income tax legislation passed by house ,-r- Page 1. No h a 1 d 9 In Prairie price probe Page 39. tinue when the house r'econ-- "ve.nes .Jan. 19. Kenewal of the aebate would decide whether house confidence in the Roblin government's proposals will be conveyed to the lieu- tenant-governor. Here's how the series of events unfolded before the wondering eyes of the press gallery. .In the middle of the afternoon Mr. Roblin indi- cated to the housed that the government wanted to go into committee of the whole to third and final reading for three.bills, which i needed' royal assent before the Christmas recess. To dp so they had to have the concurrence of every'.- member in the house. J. M.' Froese (SC-Rhiheland) de- clined to give his consent. He suggested they carry on with second reading of some other bills on the order paper and. then get on with the throne, speech debate as he had something to say. Consternation r e.i.ft'n e d. Mr. Roblin cajoled, then threatened that unless Mr. Froese gave in. the house would have to sit Friday. He even tried sweet reason suggesting that Mr.. Froese 4-ConfinUfd Please See CONFUSION Page 13 By' VICTOR MACKIE; Ottawa (Staff) The Com- mons will sit tonight all if necessary, to pass legislation to- stop air Vtraffic controllers striking Tuesday., Treasury board president, E. J. Benson'met with representa- tives ot the: 800-plus controllers again today. The talks were still in pro- gress when the commons met at 10 a.m. CST. Mr. one corridor .away in a_. last- minute effort to negotiate the settlement of the wage dispute. The strike would ground all Canada's arid would' mean1.Canada-bound in- ternational flights-would have to land in the United 'The igbvernnjent has said it 'will not such a strike'; to take place: v The legislation would give controllers :another increase the third in: -less than ..two years.' Mr.- Benson has -said the government will -the recommendations of Judge John B: Robinson, who'was asked by the government to inquire., into the air- controllers dispute. He mediator- or arbitra- tor" dispute, said Bir. curb inflationary pressures. He has-, also cut capital expendi- tures by the government. Mr. Benson explained today the. government held off intro- Please See HOUSE Page 11 France rii lo stay in NATO By ANATOLE SHUB PARIS (Special-TPNS) France Thursday indicated for the first time that it will remain in the North Atlantic Alliance after 1969 the year; in which members will be free to with- draw.. French 'Foreign Minister Maurice Couve de MurviUe told the IS-'nation NATO council: "The alliance will continue after 1969, and we agree that it should; because it is an element for stability and peace. There- fore, political co-operation will continue among us." Mr. Couve de. Murville's statement appeared, to end months of speculation as to whether French President de Gaulle's government might choose to renounce the 1949 North .Atlantic Treaty, which specified that after 1969' mem- ber nations could withdraw on one year's notice. France withdrew' last spring from NATO's --integrated' mili- tary organization hut has- re- mained a member- of alliance." Mr. Couve de MurviUe also outlined Thursday a French conception of the dalliance's future which seemed in apparent conflict, with various recent American ideas. Political co-operation; the ster said, "does' not mean' that we must define .a '-common foreign policy. That is not possible. We did not emerge Please See FRANCE Page 5 Mr; -Benson says the. judge's wage would mean a 40 per-'cent wage Juke over two years including" tHe raises tecorporated in t.h e agreement last year. The- government says the raises would throw civiT service schedules; but'of line. people of Canada. cannot afford Mr. v The emergency legislation .will provide a pay raise for the air traffic controllers, 'far less" than the 40 per cent. The federal government came under heavy fine for agreeing, to large increases in. other: salary disputes earlier ths year. Finance Minister Mitchell Sharp has insisted the govern- ment must put an end tq such ''lavish" 'increases if it 'is to 2 Views Collide On Welfare Tryout By BOB LISOWAY The one social worker to a family .project .should be scrapped, says G. G. Myers, public" welfare director for the City of Winnipeg. Hie results of; the provincial government's three-year experi- ment "little justifica- tion" fur using: the project as a model for future welfare pro- grams; he says. Mr. Myers's evaluation of the experiment conducted in the Lord Selkirk urban renewal area in north Winnipeg seems to contradict an appraisal made by J. B. Carroll, Manitoba's welfare minister. A1 two-page report has been prepared by Mr. Myers and will be submitted to city''council Monday night. A recent press release by Mr. Carroll backing, the program will also be presented. Please See' TWO VIEWS Page 5 Extremists Under Fire In China Lin Piao Clique On Defensive As Army Grows Restless V By ROBERT. ELEGANT HONG KONG (Special-TPNS) The extremist faction in the Chinese Communist power struggle, headed by Defence Minister Lin Piao, lias admitted; that it is now on the defensive. The extremists are withou question beset by workers an students under the control o their- powerful opponents at th summit of the Cbmmunis party. It also appears that the face strong and active oppos tion from dissident units of th People's Liberation Army, loya to their own commanders rather than Mr. Lin, a former fiel marshal. The admission came in editorial of the latest issue o Red Flag, t he Communis party's theoretical journal which has been released
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