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Lethbridge Herald, The (Newspaper) - April 15, 1974, Lethbridge, Alberta VOL. LXVII The LetKbtidge Herald LETHBRIDGE, ALBERTA, MONDAY, APRIL 15, 1974 10 Cents 32 Pages Kissinger offers assistance UNITED NATIONS (CP) U.S. State Secretary Henry Kissinger warned oil- producing countries today against charging prices that risk world prosperity and provoke economic despair. But, in a call for international co-operation to solve world raw materials problems, he said the United States will help the oil producers to diversify their economies, to industrialize and to take a greater role in international financial organizations. Speaking at a special United Nations General Assembly session on raw materials, Kissinger proposed a possible solution to two major world rising oil prices and resultant fertilizer shortages that have threatened food production in many developing countries. The U.S.. Kissinger said, "will offer its technological skills to develop new fertilizer industries in oil-producing countries, "using the raw materials and capital they uniquely possess." "The price of fertilizer has risen in direct proportion to the price of oil, putting it beyond the reach of many of the poorest nations and thus contributing to worldwide food Kissinger said. TWO-WAY BENEFIT Building lertilizer plants in oil-producing countries can lower the cost ot fertilizer as well as give the producers a supplementary source of in- come, he added. Kissinger began his call for world co-operation by saying that neither the rich nor the poor countries can hope to im- pose their views on the world. "If the strong attempt to impose their views, they will do so at the cost of justice and thus provoke he said. "II the weak resort to pres- sure, they will do so at the cost of justice and thus provoke he said. "If the weak resort to pres- sure, they will do so at the risk of world prosperity and thus provoke despair.... ''No nation or group of na- tions can gain by pushing its claims beyond the limits that sustain world economic growth." Monarch suspects arrested Three persons will appear in provincial court Tuesday charged with armed robbery ol a Lethbridge man near Monarch Sunday night. Michael Bodhark. 617 8th Ave S.. was reportedly robbed of his car and wallet at knife-point near Monarch. 14 miles northwest of Lethbridge. Three suspects were arrested later Sunday evening in the citv. Seen and heard About town Roy Uttley wearing a Salvation Army ladies' bonnet Brian Winchester and Vince Milligan organizing Friday's road race so they could each win a medal. Victims of Israeli attack homeless Lebanese family sits in front of what once was its home in Taybe, Lebanon. Syrian commandos repulsed ASSOCIATED PRESS Israeli and Syrian gunners traded artillery and tank fire on the Golan Heights front today after a weekend of the hardest fighting since the October war. Damascus radio said Syria's defence minister. Maj.-Gen. Mustafa Tlas, made a quick trip to the "forward command headquarters of Syrian forces on Mount Hermon." This was the first official Syrian refer- ence to such a command since the October war. The Israeli military command said shelling resumed today along the northern sector of the 300- square-mile bulge captured by Israel during the October fighting. The announcement made no mention of casualties. The command also announced the appointment of Brig.-Gen. Rafae.1 Eytan, who led Israel's thrust into Syria in October, to command Israel's northern front with both Syria and Lebanon. Eytan. promoted to major- general, takes over from Lt.- Gen. Mordechai Gur. promoted to chief of staff. Israeli fighter-bombers at- tacked Syrian forces on Mount Hermon and the Golan Heights Sunday, while below them the armies of the two countries battled fiercely with tanks and artillery. The Israeli military command said all its planes returned safely Sunday, denying a Syrian statement that four were downed. Syria also said 50 Israeli ground troops were killed or wounded, but Israel said only 17 were wounded. Syria said 15 of its soldiers were killed and 10 were wounded. Israel said a Syrian com- mando unit made another at- tempt to capture an Israeli ob- servation post at the northern end of 9.000-foot Mount Hermon, which has an unrestricted view for 100 miles and more into Syria. The Syrians have been trying to capture the post since April 6. Israel said the commandos were discovered at dawn Sunday, and the Israelis at the post counter- attacked. Syrian artillery opened up to give the com- mandos cover, and the Israelis retaliated with artillery and fighter-bombers. Meanwhile, the United Na- tions Security Council was to be called into session this afternoon to discuss the Israeli raid on six Lebanese villages Friday night. The raid was in retaliation for an Arab guerrilla attack from Lebanon last Thursday on the Israeli village of Qiryat Shmonah in which 18 Israelis and the three guerrillas died. The council was expected to adopt a resolution later in the week condemning Israel, and Israel was expected to ignore it. Inside 'Damn! Another cheap game Classified........20-24 Comics.............8 Comment...........4 Family..........18.19 Markets...........17 Sports...........10-12 Theatres TV.................6 Weather............3 LOW TONIGHT 30; HIGH TUBS 55; SUNNY, MILD. Airport firemen offered 30 per cent increase OTTAWA (CP) A tentative agreement between negotiators for airport firemen and treasury board would give the employees total pay raises of 30 per cent over 18 months. But reaction of the firemen, particularly in western centres where they are on strike, still is in doubt. The settlement, which must be approved by the fire- men, was reached late Sunday night between negotiators for the Public Service Alliance of Canada and the government. Firefighters iri Vancouver, Victoria, Edmonton, Winnipeg and several smaller western centres were still on strike this morning. Alliance officials said in Ot- tawa that the tentative agree- ment would bring the maximum pay of level-one firemen to by October. 1975. The present maximum is Most of the employees fall into the first-level category. But the proposed settlement could still be rejected in the west, particularly in British Columbia, where an illegal strike began 10 days ago when airport firemen there walked out seeking wage parity with Vancouver municipal firefighters, who are paid annually. The strike spread to other centres as contract negotiations continued in Ottawa and national union negotiators urged a return to work. The walkouts by the B.C. firemen halted air traffic into the province although limited movement was restored later by supervisory personnel. An alliance vice-president, James Wyllie. said the proposed agreement provided significant salary increases between April i, 1974, when the agreement takes force, and the last pay increase in October, 1975. The contract, if accepted by members, would expire in June, 1976. Mr. Wyllie conceded that the increase does not catch up with the Vancouver municipal rates of pay. "It's not all we wanted but we did the best we he said. The alliance has been bargaining for national pay rates which would give their members salaries above municipal firemen in some areas but below pay to firefighters in some larger centres. The agreement also provides improvements in long service pay and pay to persons acting in higher level positions, four weeks annual leave after 15 years' service and. protection against contracting out. a union spokesman said. Mitchell denies perjury NEW YORK (AP) Former U.S. attorney-general John Mitchell said today he is not guilty of conspiracy, obstruction of justice or perjury. "Are you guilty or not asked his lawyer, Pe- ter Fleming. "Absolutely not guilty of any of the said Mitchell. High bank rate economy damper OTTAWA (CP) The Bank of Canada has moved to dampen the pace of economic- expansion by raising the bank rate to 8Vi per cent, the highest it has ever been. In a Sunday announcement, the central bank raised its rate for loans to chartered banks by one percentage point. It was the first time since 1967 that the bank has made that large a change in its loan rate and it was the sixth increase since last April 9. when the rate went to per cent from Gerald Bouey. governor of the bank, said in a statement the increase was "unavoidable if reasonable control was to be ex- ercised over the rate of monetary expansion in Canada." The move comes as the Canadian economy is MONTREAL (CP) Quebec Provincial Police are in- vestigating the second fire in less than a month at the James Bay hydro-electric project 600 miles northwest of here. Spokesmen for the QPP and the James Bay Development Corp. said today that damage in the fire, which broke out shortly before midnight Saturday, is estimated at about million. A spokesman for Francon Construction Ltd.. on whose property the fire occurred, called these damage estimates "ridiculous and exaggerated." A development corporation spokesman said the fire involved a trailer containing two diesel generators, a warehouse containing machine parts and a garage used for storing tires. A spokesman in the Francon office at the site said in a tele- phone interview that damage was not that extensive. "We believe it was only a garage containing tires." he said. "It is not possible that the estimates are anywhere near the figure of million." He said the fire knocked two generators out of service and lelt the camp without power until 5 a.m. Sunday. Workers "were not adversely affected" by the loss of power, he said. "We're sure the fire was accidental." Second hydro project fire claimed accident expanding at a rapid rate and it represents concern by fiscal policymakers that strong demand for goods will chase prices higher. The bank rate is the rate the _ central bank charges for loans to chartered banks. The retail banks seldom borrow from the Bank of Canada but the bank rate is a key policy tool by which federal fiscal authorities influence the interest rate structure. SIGNAL IS CLEAR The sharp jump in the rate is a clear signal that federal authorities believe the economy is expanding too rapidly. Mr. Bouey said factors in- fluencing the decision to in- crease the rate were "contin- uing intense demand for credit, sharply rising prices and costs, and the recent substantial upward adjustment of market in- terest rates in Canada, the United States and the Euro- dollar market." That demand for credit has been fed by a rapid rate of ex- pansion of several industries and a boom in real estate where real and speculative de- mands have put strong pres- sures on mortgage markets. Surveys of investment in- tentions of Canadian businesses show most industries expanding capacities at accelerated rates, which means a strong demand for equipment and building materials. Part of the concern implicit in the increase in the bank rate is that supply cannot keep up with that demand and the result will be inflation. Rising petroleum prices also have been a factor in demand for loans, which has led to higher worldwide interest rates. Oil prices have not risen as rapidly in Canada, where pro- duction is about equal to con- sumption. But higher oil prices have meant industries in many countries have had to borrow to cover increased expenses, thus increasing demand and putting upward pressure on the worldwide interest rate structure. This is one of the factor to which the Bank of Canada is responding. A bank rate of 8 1-4 per cent tops the previous record rate of eight per cent, set in July, 1969. From that peak l'ie rate was lowered in a series of changes as federal authorities encouraged expansion. The low side of the cycle was reached in October. 1971. when the rate was set at 4 per cent. It was maintained at that level until last April when policymakers decided it was time to again begin slowing the rate of growth in the economv. Postal strike said unlikely OTTAWA (CP) Postal un- ion- leaders were to meet today with Postmaster- General Andre Ouellet in an effort to resolve a dispute arising from work stoppages and employee suspensions at Montreal postal stations. The dispute has led to suggestions that there could be a wildcat postal strike by Tuesday. The series of meetings continued in the aftermath of the resignation late Sunday of Jim McCall, president of the Canadian Union of Postal Workers, which represents inside workers. Mr. McCall was not available for comment and no reasons were given for his resignation. A spokesman for Mr. Ouel- let's office said a statement Another Gaullist drops out PARIS (Reuter) Christian Fouchet, leader of a right-wing Gaullist party, announced today his withdrawal from the presi- dential elections in favor of leading Gaullist candidate Jacques Chaban-Delmas. He said his decision was in- tended to reduce divisions in the Gaullist ranks. Fouchet, a cabinet member under the late Charles de Gaulle, resigned from the Gaullist party in 1972 and formed a splinter group, the Movement for the Future of the French People. would come alter the Commons resumed today Despite hours of discussions within the committee and a long meeting Saturday night with Postmaster-General Andre Ouellet. there was no agreement on what action, if any. the union should take. The situation developed last week, when a number of Mon- treal postal workers showed up tor work wearing T-shirts with a slogan urging people not to use the new postal code system. About 20 employees were suspended and other workers protested with work stoppages.' He told reporters Sunday the work stoppage constituted an illegal and irresponsible action. He said his actions in the matter have been just and fair. He didn't think that a national had been threatened by some union likely. "I don't see any reason why the people across Canada would strike on this." he said. The postmaster-general said the fundamental Mssue underlying the entire situation is the postal code and automation. The postal code which uses computers to speed mail been a bone of contention with the militant postal unions since it was first brought into operation. The stoppages and suspen- sions continued through the weekend, despite a Quebec Su- perior Court injunction issued Friday ordering workers to return to work and fulfill the job requirements. Book claims White House demanded Agnew resignation WASHINGTON (AP) While maintaining a public posture of support, President Nixon tried through aides to persuade Spiro Agnew to resign as vice-president of the United States In the face of Agnew's possible indictment or impeachment last fall, says a new book on the Agnew case. Eventually, the While House demanded Agnew's resignation, the book says. The White House manoeuvring is detailed in the book A Heartbeat Away, by Washington Post reporters Richard Cohen and Jules Witcover. Alexander Haig, chief of the White House staff, is said to have served as the chief go-between for Nixon in dealings with Agnew and his lawyers. Agnew eventually made a deal with the justice depart- ment, resigned Oct. 10 and pleaded no contest to a charge of lederal income tax evasion, Cohen and Witcover describe how the original investigation of political kickbacks in Maryland's Baltimore County led eventually to was once governor of and resulted in his becoming the highest-ranking U.S. government official ever to resign under threat of criminal charges. Nixon, the authors say, was confronted with the problem of how to deal with Agnew in view of the fact that he (Nixon) personally faced possible implication in the Watergate political espionage scandal and did not want to set precedent that could affect his own case. In particular, the book says, Nixon was worried about Ag- new taking what was called the "impeachment track" by taking his case to the House of Representatives. "This option was fraught with ominous parallel for the president the authors write. "If Agnew, could be impeached and convicted, then perhaps it would not be so difficult for the now-reluctant congressmen to place Nixon on the same track and ride him out of office. "Also, an Agnew impeachment trial would raise in unavoidable terms the basic constitutional question vexing the Watergate-plagued president: Was impeachment the mandatory first step for a president or vice-president accused of crime, or could he be indicted first in a court of law? Finally, once committed to the impeachment track. Agnew would be much less likely to agree to the swift, surgical solution that the president his resignation." Finally, on Sept. 10, "despairing that Agnew would ever take, the hint" to resign, Haig and presidential counsel Fred Buzhardt met with Agnew and one of his lawyers and laid out the case before them, the book savs. Haig, "abandoning the circumlocution and sublety book. White House's addiction lor let Agnew have says the "The vice-president had to resign, it was a simple, straight-forward demand, and Haig kept hammering awaty at it." what may have proved crucial in the end, say the authors, were two developments. One was a brief prepared by Solicitor-General Robert Bork which held that while a president cannot be indicted while in office there is no constitutional bar to such action against a vice-president. The effect of this opinion was to free Nixon of the risk of a precedent set by Agnew being indicted, the book says. Hie second ws an intensified investigation of Agnew's background by the Internal Revnue Service, which not only was uncovering his financial activities but also might have exposed what the authors call "some spicy insights into Agnew's personal life that the prosecutors already had ruled out of bounds. ;