Page 1 of 8 Mar 1980 Issue of Brandon Sun in Brandon, Manitoba

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Brandon Sun (Newspaper) - March 8, 1980, Brandon, Manitoba Today parents keeping children at Home parents of school children attending Elkhorn and Sinclair sch have decided to Kep their Stu at Home until the fort la Bosse school division Board changes its mind about closing Elkhorn collegiate next fall. The Boycott is to begin monday. About 300 area residents at a Publ meeting in Elkhorn on voted in favor of the Boycott last night. Students affected Are 234 in grades k to 12 at Elkhorn and 43 in grades one to eight at Sinclair. A meeting is being organized in Reston sunday night to determine support in that Community for the Boycott. Canada backs Loans Ottawa up a external affairs minister Mark Macguigan says the Federal government is committed to loan guarantees for financially troubled Chrysler Canada Ltd. Macguigan went further Friday than Industry minister Herb Gray in promising financial Aid for the Auto company. Gray has said he Hopes the government will help Chrysler provided the company gives commitments to increase jobs and investment in Canada. The external affairs minister said the Chrysler problem gives Canada an Opportunity to reduce the annual $3-billion automotive Trade deficit with the . Discipline delayed Ottawa up a the Liberal government will delay any Reform of ramp discipline procedures until after the Royal commission investigating ramp activities makes its final report solicitor general Robert Kaplan says. In an interview to be broadcast sunday on the new radio network Kaplan said he expected the commission set up in july 1977, would have reported before now. The commissions findings must be considered when undertaking any changes to the Federal police Force. Rejection expected Yellowknife . Up a Bud Drury said Friday the rejection by native groups of his report on constitutional development in the Northwest territories was expected. The report released thursday suggested that the Northwest territories remain As one unit Ottawa give up some of its authority and northerners be allowed to decide for themselves How the territory should develop politically. The Dene nation formerly the Indian brotherhood of the Northwest territories and the inuit Tapar sat of Canada the National Eskimo brotherhood called the report a. A t $5.02 billion in red Ottawa up a Canada did better than expected in International payments last year but still ended up $5.02 billion in the red. Seasonally adjusted figures released by statistics Canada on Friday show the 1979 deficit is Between $500 million and $600 million lower than expected. Although 1978�?Ts deficit was $5.3 billion indicating an improved performance in 1979, a statistics official said revised figures probably would bring the 1978 figure lower than 1979�?Ts. Alberta to set tax Edmonton up a Alberta will have its own corporate tax system in the 1981 taxation year provincial treasurer Lou Hyndman announced Friday. A greater control of our own provincial destiny in the years ahead is a key goal of the net system a he told a news conference. Hyndman said the new system will be More sensitive to Alberta needs and offer incentives for Small businesses in the province. It would help those businesses to expand diversify and compete with Large National and International corporations. Processing of More agricultural products will also be encouraged he said. This would indirectly strengthen the family farm. Vogel takes leave Victoria up a Dick Vogel asked for and received a leave of absence until completion of an investigation into charges he used his position As Deputy attorney general to influence three criminal cases attorney general Allan Williams said Friday. A cog news report said thursday that Vogel influenced or tried to influence the course of Justice in three cases an impaired driving charge against Mickey Moran a Kootenay lawyer and Vogel Friend a charge of driving with a blood alcohol level of More than 08 per cent against Andrew Rigg son of a family Friend and the Wendy King prostitution Case which led to the resignation of former . Chief Justice John Farris. 99th year no. 43 serving Western Manitoba since 1882 Brandon Manitoba saturday March 8, 1980 Price 20 cents a m in urn my. Iranian militants marching around . Embassy in Tehran this morning up wire photo hostage Exchange snags militants blame minister Tehran Asp a the . Hostages will not be leaving the occupied . Embassy today said Ayatollah Mohammad Khalkhali an islamic revolutionary court judge. The Ayatollah s statement came As the hostages militant captors were embroiled in a dispute with foreign minister Sadegh Ghotb Zadeh Over plans to turn the captive . Diplomats Over to iranian authorities. The about 50 hostages a will not leave the . Embassy today Khalkhali told thousands of demonstrators waiting for hours of sic the . Diploma in Mission. The militants occupying the embassy since nov. 4 had said earlier they stood by their Promise to hand Over the hostages today to a representative of the revolutionary Council a but not to Ghotb Zadeh. Meanwhile Khomeini s office issued a statement saying some newspapers a have attributed the arrangements to the a Imam Khomeini continues to maintain silence on the Issue and he has delegated responsibility for the hostages to the islamic National Assembly a the Brief statement said. Ghotb Zadeh responded to the accusations of the militants saying he Lull to to it ear in an interview tonight presumably on National television a and inform the nation of what happened in order to reveal the face of the that statement May postpone the hostage Transfer although Ghotb Zadeh did not say so. He said his comments about Khomeini were based on what president Abolhassan Bani Sadr had told the Council. He said the Council had unanimously appointed him to look after the Transfer. Tehran radio broadcast later a further clarification of the situation from Bani Sadr. The radio quoted Bani Sadr As saying the militants first proposed to an unidentified member of the Council and to Khomeini a son Ahmad that they hand Over the hostages and the embassy to the Council. Bobiak sees policy test election fuelled Jet opposition by Tracey Taylor Sun staff writer a proponent of Jet passenger service for Brandon says the election of a Liberal government has unleashed a flood of objections to Pacific Western airlines proposed Calgary Brandon Toronto route. The election results have spurred the airlines into thinking they can get the liberals to change the policy made by former Federal minister of transport Don Mazankowski Ian Bobiak of Brandon said Friday. Bobiak has been a Long time supporter of East West air service for the City. Mazankowski announced that regional carriers could apply for a Brandon route while in Brandon in november. Previously Only Continental carriers such As up air and air Canada could apply. The service will be the first real test of the Liberal party As to whether or not they will Cater to the West Bobiak said. A it Hurt our position. When the conservatives provincial tried to take credit for something they did no to do a he said. Bobiak said a very powerful lobby is now under Way to Boycott those airlines which Are trying to Stop the air service a air Canada up air and Norair a should pm a not get the route. The route is not economically viable and the Calgary Toronto route is adequately served by up air and air Canada. Tony Schoe a Public affairs spokesman for air Canada said Friday from Winnipeg. The regional air Carrier policy has not been changed so designated carriers can be allowed out of their regions he said. Perimeter airways Inland Ltd. Has also filed an intervention saying they will lose business if pm a receives the application. Perimeter currently operates a government subsidized commuter service Between Brandon. Dauphin and Winnipeg. Two interventions in favor of the application a Eastern provincial airways of Gander fld. And Tremaine air services of Russell Man. A have been filed As Well As about 250 letters from individuals and groups. The Brandon chamber of Commerce should be pushing for support from the surrounding communities Art Howard president of the Crystal City chamber of Commerce said recently. However. President Jack brawn of the chamber said All mayors councillors and Reeves in the West Man area have been called upon for their support. A no forces leading in Quebec poll Montreal up a a Public opinion poll conducted for radio Canada says a majority of Quebe cers plan to vote against the Quebec referendum on sovereignty association. About 52 per cent of the 1,264 persons polled for the French network of the cub by the Montreal based Centre de Recherche sur a opinion pub Lique said they would vote no to the Quebec govern ment s bid for a mandate to negotiate sovereignty association. Premier Rene Levesque who was on a referendum Campaign tour in Sherbrooke said he would have no comment on the poll until he and his advisers had studied its results. A it would be stupid to comment Quot he told reporters. Quot it has to be Analysed by others than myself it is the first time the no forces have topped 50 per cent since Public opinion polls on the referendum by various groups began in 1977. Taken As a sub group however. French speaking respondents voted yes to the referendum question by a narrow margin a 48 per cent to 46. With the rest undecided. By comparison More than 80 per cent of anglophones voted no. Money new York apr the . Prime lending rate has skyrocketed to As High As a record 18 per cent and analysts done to think the spiral has ended yet. The rate Banks charge top ranked business borrowers is a destined to move toward 20 per cent based on the prevailing Money Market Structure a said Henry Kaufman economist at the brokerage House of Salomon Brothers. Kaufman a comments came Friday As Chicago a Harris Trust and savings Bank the 24th-largest . Bank increased its prime rate by three quarters of a Point to 18 per cent. No. 1-ranked Bank of America no. 2-ranked Citibank of new York and most others increased their prime rates by one half Point to 17% percent. Bankers and economists attributed the rate spiral to credit tightening by the Federal Reserve worried about 18-percent annual inflation and to a borrowing Boom by businesses fearing higher rates or the imposition of credit controls. A i think there a a speculative surge going on a said Bob Sinche an economist at the brokerage House of Bear Stearns and co. Companies a Are buying insurance a said Beryl Sprinkel a Harris Bank economist. A every # banker in be talked to has said there a been a Rush in the past week or two of businesses setting up Loans before the axe meanwhile n new York the Stock Market sold off for the third straight session Friday winding up its worst week since last october. Oil issues were the biggest losers As the Market absorbed another barrage of bad news on inflation and interest rates. U s. Economy Analysed Page 2 Toronto Stock Market continued plummet Friday Toronto up a the Toronto Stock Market continued to plummet Friday As investors worried about rising interest rates cashed in their stocks. The tse 300 Index Sank 50.81 Points to 2045.71, just a Day after plunging 69.31 Points its worst daily drop on record. The declines erased gains made during the last three weeks pushing the Index roughly to the level it w i at feb. 15. All 14 Stock groups in the composite Index retreated with Oil and Gas issues a favorite of investors during the last three years taking the worst beating. The Oil and Gas Index plunged 169.58 Points on the Day to 4641.44 what stocks did Fri. Thurs. Advances 86 72 declines 443 460 unchanged 172 177 totals 701 709 major . Banks raised the . Prime rate a the rate at which Banks loan Money to their most credit worthy customers a to 17% per cent Friday the second increase in a week. The rates had jumped to 17% per cent on tuesday. And at least one Harris Trust and savings Bank of Chicago increased its prime rate to an unprecedented 18 per cent. Gerald Bouey governor of the Bank of Canada said the Canadian Bank rate will not a Toi Lati Caily Rise in reaction to interest rate increases in the but analysts say investors think differently. Roland Jones an analyst with Pitfield Mackay Ross Ltd. Of Toronto said the Canadian prime rate could Rise to 18% per cent this year if the double digit inflation the . Is experiencing hits Canada As Well. But he said the Toronto markets decline thursday and Friday was the first real correction since its previous worst plunge on record last oct. 9, when the composite Index dropped 64.37 Points. How High will they go rates just keep climbing skyrocketing rates a destined to go higher Ottawa up a borrowers and deposited have Good reason to wonder How High interest rates can still go. Mortgage rates Are 14.5 per cent making the monthly interest charge $605 on a $50,000 House for a 25-year period. A year ago the Cost was $482. The monthly Cost today of a $5,000 car loan at 16 per cent interest repaid Over three years is $176. A year ago at 13 per cent the Cost was $169. Today a one year term Deposit of $5,000 earns 12 per cent for a yearly interest payment of $600 last july a depositor earned 8.75 per cent for a return of $437.50. Today a one year term Deposit earns 1 per cent for a yearly interest payment of $600. Last july a deposited earned 8.75 per cent for a return of $437.50. All those figures May move up if the Bank of Canada raises the Bank rate a the key to interest charges in the Economy a from the present record High level of 14 per cent. For the last three weeks the Bank has resisted despite rate increases in the . Which have pushed interest rate Levels there Well ahead of those in Canada. The private rate in c Anada is 15 per cent compared to at least 17.25 per cent in the . Normally that would cause an outflow of Money from Canada thereby lowering the value of the Dollar and forcing the Bank to raise interest rates and attract Money Back in. But an unexpectedly Strong inflow of capital Hasni to happened yet because of investor interest in the Prospect of major Oil discoveries off the East coast. However the Dollar began to slip in the last few Days to the Low 86-cent level an indication the Bank May have to defend the Dollar and attract foreign capital by raising interest rates. Economists say there is no limit to How High rates can go a it depends on what happens to the rate of inflation. If inflation rises so do interest rates. Doug Peters chief economist for the Toronto Dominion Bank predicts a prolonged period of High interest rates this year As inflation rises close to to per cent in the Wake of higher Energy costs. Bobcats rattle Westmen 85-75 Page 6 Mobile Home Parks Safe Page 11 event6 today 1 . A Central Community Centre carnival. 2 . A Park Community Centre Winter fair. To Chaar is it the meatloaf again

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