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Lethbridge Herald, The (Newspaper) - April 8, 1974, Lethbridge, Alberta Conflict of Interest 'may cause break-up' of OPEC By WILLIAM 0. SMITH New TtaM Strviet NEW YORK The OrpniiaUon of Petroleum Exporting Countries the cartel of nafioM that hai jputhed up the price of oil by 400 per cent in the last year facet serious internal problems and possible breakup by 1MO because of potential sharp conflicts of interests among its members, according to Walter J. Levy a prominent and influential oil economist. In a study that has received wide attention in high government circles here and in Europe, Levy says that the division in the ranks of the producers could result in a sharp decline in the world price of oil in the later years of the decade. On the other hand, Levy asserts that if the OPEC nations reach accommodations with each other, prices will rise even higher, resulting in "a continuing spiral of economic and monetary chaos for producing and consuming nations alike." The Levy study contends that because of the sharply higher prices for petroleum, the consuming nations of the world will have no choice but to go on a long-term energy austerity program. The crucial problem will be how to finance essential imports in the years immediately ahead. The long-term problem for the oil-exporting countries, he says, is how to ensure the continued expansion of revenues in a world that will become increasingly conscious of conserving energy. The Levy study is receiving particular attention in government circles at this time because of the opening this week of a special session of the United Nations General Assembly on raw materials and development. Many countries that produce basic raw materials are looking at OPEC's success in driving oil prices higher as a model on which to pattern efforts to obtain increased prices. The Levy oil analysis, if applied to other commodities, suggests that there can be long- term disadvantages offsetting the obvious short-term gains. The Levy report predicts that the high price of oil will enforce the oil-consuming countries to cut their oil imports to a level that will just permit them to maintain viable economic and industrial operations The study argues that forced austerity among the consuming countries would eventually reduce consumption to the point that growth in production of oil would exceed the growth in demand for it, and output would have to be cut back sharply by some producing countries to maintain high price levels. However, he says, the ability and will of the various' oil- producing countries to cut back differs considerably. The oil- producing nations with moderate populations and large capital demands Iran, Algeria, Indonesia, Venezuela and Iraq will Find it difficult, if not impossible, to reduce their output, he believes. "Saudi Arabia, Kuwait and Abu Dhabi are thus cast in the pivotal role of a balancing wheel with respect to the middle east and hence world supplies." the report states. "On one hand, these major tyiddle East producing countries have large reserves available to meet expanded production requirements; on the other they are presumably under the least pressure to generate revenues because of small populations and can thus also accept lower levels of production." On the prospects of rekindling competition among oil exporters, the report comments that if the revenues of Saudi Arabia, Kuwait and Abu Dhabi fall very significantly below expectations, they would have an economic incentive to expand production, to the disadvantage of the other producers and prices would probably fall. Wilson defends aides' land deal LONDON (Reuter) Prime Minister Harold Wilson told Parliament today -he played no part in a land deal that rocked his minority Labor government. Wilson complained the affair has been blown out of proportion and said there is "no reason for any member of my own staff to forfeit the trust I have placed in them." Heovas speaking about Brit- ish newspaper reports in the last week about the alleged in- volvement of his staff his political secretary, Marcia a speculative Prisoners riot in Sask. jail Regina (CP) Prisoners rampaged through part of the Regina Correctional Institute early today, setting fires, breaking windows and punching a hole in one wall before they were subdued by guards. Police estimated damage at Two sections of the jail suffered severe damage. There were no reports of in- juries. The RCMP surrounded the jail, about two miles outside the city, but said it appeared that no one tried to escape. Police said the, trouble started with complaints about the prison's food. Some of the prisoners started their rampage about 9 p.m. Sunday night and were not subdued until about 1 a.m. The prisoners knocked a hole in a cell block wall and were able to squeeze through it into the jail compound. land deal in northwest Eng- land. "I was not myself involved in any way in any of the transactions in Wilson said. "At no time have I had any financial interest, direct or in- direct, in any of them. No evi- dence has been produced to suggest that any of the transactions was in any way illegal or improper." None of the newspaper stories has suggested any illegality or any involvement by Wilson. It is a matter of government embarrassment at the sugges- tion that associates of Wilson might have engaged in land topic which was a target of bitter Labor party criticism during the recent general election campaign KNEW ABOUT DEAL In rep'y to a question, Wilson admitted that he knew about the land deal when it started, but he drew the distinction he made last week land speculation in the profiteering sense and land reclamation in the sense of the deal in ques- tion Mrs. Williams' brother, An- thony Field, has said that he bought the site at Ince-in-Mak- erfield to remove the slag heaped upon it. Field has said that Mrs. Williams and his other sister were associated with the deal. Wilson insisted that Field never used the Wilson name in connection with the land deal. He said Mrs. Williams has been subjected to "an intolerable degree of newspaper harassment on her doorstep." He described this as "a cowardly way of at- tacking me." The letkbrtdge Herald VOL. LXVII 98 LETHBRIDOE, ALBERTA, MONDAY, APRIL 8, 1974 10 Onto 40 Suez clean-up begins next week PORT SAID (AP) The clearing of the Suez canal is expected to start next week, but a United States admiral predicts it will be another year before the waterway is open to shipping. Rear Admiral Brian McCauley, who lead a U.S.1 team that will help in the project, told reportsrs Sunday that mines in the canal can be swept in three to five weeks. Then the canal must be cleared of bombs, artillery shells and rockets before vage crews can remove 11 sunken ships and oilier major obstacles since the 1M7 Arab- Israeli war. The steel-and-concrete causeway the Israelis built across the canal during the October war also mwt be removed. Nixon 4knew' of tax claims Strike end seen VANCOUVER (CP) Posi- tive steps will be taken today to settle a strike of British Columbia airport firefighters, a spokesman for the federal ministry of transport said Sunday night. "I am not saying it will result in tfie resumption of air services right he said, "but it will lead to the resumption of them." Ninety-six firemen at 10 fed- eral airports in B.C. left their jobs Friday and were defying a court injunction issued Friday night ordering them back to work. The men want wage parity with Vancouver city firemen. New contract proposals were submitted by the firemen, members of the Public Service Alliance of Canada, at a meeting here Sunday with transport department officials, but the talks broke off after 90 minutes. Union spokesman Bill Brown complained that the federal officials "can't make decisions." They don't have the power to do he said He said..the transport officials were trying to open up lines of communication between the 'federal government and the fire- fighters Mr. Brown said he had been advised that ministry offices here would remain open 24 hours a day in case of sudden developments. Hundreds of passengers stranded in Vancouver during the weekend were able to continue with their travels by driving to Seattle and booking on U S. flights Others stra'nded in interior and northern B.C. communities were less fortunate as bus ac- commodation and rental autos were reported at a premium. The number of stranded air passengers .also was growing at Edmonton and Calgary where Air Canada and CP Air were ending their flights. Greyhound added a number of extra buses during the weekend to bring these passengers to the West Coast. Herald Good Friday The Herald will not publish Good Friday, April 12. Regular editions will be published Saturday. Herald Display advertisers are reminded of the following ad deadlines: advertisements to appear Saturday must be received by. noon Tuesday, April 9; for Monday by Wednesday, April 10, and for Tuesday by Thursday, April 11. Classified advertisements received by 3 p.m. Thursday will appear Saturday. The tap's run dry Marquis Hotel manager Mike Wolczek drains his last beer keg into tapman Tony Gunczar's glass. City beer drought looms Drought conditions loom nearer today for Lethbridge beer drinkers after weekend sales cleaned out supplies at the south side liquor store arid left taverns with only small supplies. Striking Alberta Liquor Control Board employees have completely tied up the beer delivery systems in the city. Officials of the ALCB in Edmonton and the Civil Service Association in Calgary, which represents the workers, were not optimistic progress in the province-wide dispute would come today. S.A. Ashmead, manager of the south side store, told The Herald the store's last beer was sold Saturday. But local drinkers apparently did not switch to hard liquor as did thirsty customers in Calgary and Edmonton. Beer was the first beverage to run out because the liquor store and the taverns usually rely on weekly delivery from the warehouse. Hard liquor is usually delivered less regularly and therefore bigger stocks are kept. The Lethbridge south side store is being kept open by managers and supervisors during the strike. The north side store is closed. Civil Service Association members have set up pickets at the local beer warehouse, both liquor stores, and the Taber liouor store. Frank' Webb, CSA representative for the Lethbridge ALCB employees, said the Coaldale liquor store would not be picketed today because it is closed Mondays. Pickets would be withdrawn from the brewery in Lethbridge, he said. Gang may have massacred and hord About town Nellie Saler chasing her car down 7th Avenue after a prankster made off with it... Walter V. Borat wondering if the sweet offered from Walter F. Borat was candy mint or a breath mint. TAPACHULA, Mexico (Keuter) Military authorities investigating a criminal gang which terrorized this southern Mexican city close to the Gua- temalan frontier believed the gang massacred more than 000 persons. In a report issued Saturday night, the military commander in charge of in- vestigating the "Black Hand" gang allegedly run by several brothers of a locaj family, said he is sure the brothers are responsible for the deaths of more than men, women and children, At least 66 people have been arrested as gang members in the last month, most of them in this city, several in neighboring Tuxtla- Gutierrez and two in Mexico City. The gang members were re- ported to have, murdered land owners to get their property and killed laborers were the workers demanded payment. Two mass graves have been discovered, military investigators said. The first, found at a ranch belonging to the brothers, contained more than 200. bodies, and the second, found Friday at another ranch, contained the bodies of a number of uniden- tified men, women and children machine-gunned to death. Soldiers of the 29th Infantry Battalion called in to impose otder in the area say that other clandestine cemeteries have been discovered in the last week. Those arrested include 20 actual gang members, 30 local policemen accused of collaborating with them and Tapachula Mayor Fernando Acosta. The city police force was commanded by one of the brothers until his arrest Satur- day. The entire force is accused of involvement in the gang's activities. Bill Holowatiuk, a CSA membership services officer working here during the strike, said pickets would remain at the retail beer store at the brewery. Action to have the employees at the Fort Macleod ALCB store join the strike was being held off in case of developments in the dispute with the liquor board, he said. All-night battle rages From AP-REUTER Artillery and tank fire blazed along the 40-mile Golan front again today, and Syria claimed its air defence system shot down an Israeli plane "when an enemy formation penetrated our air space over Mt. Hermon." Syria also said its forces battled all night with Israeli troops trying to overrun Syrian positions on Mt. Hermon, but Israel denied this. It was the third day fighting was reported on the slopes at the northern end of the truce line, and the 28th straight day of clashes on the Israeli-Syrian front. By JOHN M. CREWDSON New Vert LOS ANGELES President Nixon's tax advisers were ordered by the White House to take some of the deductions from his taxable income that were declared improper by a congressional investigation, according to Nixon's personal accountant. "It was take 100-per-cent of that and -take 50-per-cent of Arthur Blech, the accountant, recalled in an interview. He said he understood that the instructions, which he in one case disregarded, had come at different times from John W. Dean, John D. Ehrlichman and other former high Nixon aides. "Any allusion that we had options is Blech said "The pattern was set in 1969 and the deductions for 1970 1971 and 1972 just followed suit." At one point aftei completing the president 1970 federal income ta> return, he said, he asked for ;i meeting with Nixon because "I came out with a no-tax situation and I asked myself 'What's going on As a Result of the; deductions, the President only J793 in federal incomp; taxes in 1970, something Blech1" said he believed at the time to be "politically unwise." A meeting was eventually promised with the president in 1972 at his San Clemente estate, but was canceled when Nixon returned to Washington unexpectedly. Blech said he had still never talked with Nixon and that he never spoke with anyone in the White House "until the stink came out." Blech said that instructions were passed to him through Frank Demarco, a partner in a firm of lawyers here retained by Nixon, to deduct 100-per-cent of the expenses of one of the president's two homes in Key Biscayne, Fla., and 50-per-cent of the cost of operating his oceanfront estate at San Clement. One of the orders dictated from the White House, according to the accountant, concerned the deduction from the president's taxable income as a "business expense" part of the cost of running his homes in Florida and California. Blech's remarks followed a declaration by Demarco last week that Demarco and. another lawyer had gone over Nixon's 1969 return with the president "page by page" duririg an April, 1970, conference in the oval office m the White House. Demarco was replying to a White House statement of last Wednesday, the day the committee's report was released, attributing "any errors which may have been- made" in the president's returns to "those to whom he delegated the responsibility for preparing" them, meaning Demarco and Blech. The statement added that any existing errors had been made without Nixon's "knowledge" or One source familiar with the preparation of the president's returns went further than Blech or Demarco have in their public remarks. The source asserted that Nixon knew everything that was being done in his behalf and had not objected to any of the procedures employed. He said that everything had been explained to the president. President 'used IKS to harass enemies" WASHINGTON (AP) A secret unit -to compile intelligence reports on President Nixon's political enemies was set up inside, the Internal Revenue Service within months of Nixon's be- coming president. Senator Lowell Weicker said today. Weicker presented a docu- mentary history of the unit to three Senate subcommittees He also disclosed of new details on howr he said, the White House used government agencies to thwart its political opponents jn the United States and Weicker produced other documents which he said show the IRS had been used repeatedly by that time to harass political opponents of the Nixon administration. "When that situation exists in the country obviously something Weickei said "It is a provision of the American constitutional system." Weicker read from a hug ;