Lethbridge Herald, The (Newspaper) - April 17, 1974, Lethbridge, Alberta
28-THE LETHBRIOGE April Mine could slow submarine attack By JOHN W. FINNEY New York Times Service WASHINGTON The U S Navy has developed a novel torpedo-mine that it hopes would help win any battle for control of the Atlantic by sealing off the Russian submarine fleet in the Norwegian Sea. To naval officers who have been following the still secret development program, the new mine represents one of the most radical advances in the 400-year history of mine warfare. In contrast to the present stationary mines, which depend upon a ship or submarine passing in their immediate vicinity, the new mine will send out a torpedo to seek out and destroy its submarine target. As seen by top naval officers, the new mine should lead to a revival of mine warfare, which has become something of an ignored stepchild in naval planning They also believe it will prove to be a significant adjunct in maintaining control over the Atlantic Sea lanes in the event war breaks out in Europe The principal threat to Allied control over the Atlantic Sea lanes is not so much Soviet surface ships as some 170 submarines attached to the Soviet northern fleet based in Murmansk. Under present conditions, naval planners believe it would take at least 60 to 90 days to neutralize the Soviet submarine threat, during which time they anticipate substantial losses of Allied shipping. The military value of the new mine, as explained by highly placed naval planners, would be to keep some of the Soviet submarines blocked in the Norwegian Ocean to the north of the principal Atlantic Sea lanes or .to destroy Soviet submarines as they attempt to return to their home base for resupply. Navy plans call for using the mines to set up barriers across the two principal access routes for Soviet submarines in the northern fleet into the Atlantic Ocean One mine field would be laid in the Denmark Straits between Greenland and Iceland; the other would be in the broader stretch of water between Iceland and the British Isles. The new mine is called Captor a navy contraction for encapsulated torpedo. Basically it is a torpedo enclosed in a mine-like device moored to the ocean bottom. BPORTCXMT SLACK 10 days only i "ttzusn 'a 3 i life wr- UflMtf ill w fc f v f _ I? W K 4 -i- t i 4 K f f Sport Coats. As if the values on our jacket racks weren't big enough, for the next 10 days we're reducing the prices by up to 25% more. They're all-wools and poly blends. They're saxonies, tweeds and hopsacks. In very new checks, plaids and herringbones. Reg. and Slacks. Two groups. First, fortrel and wool, woven in a year-round cloth. Plains, patterns and a nice group of hopsacks. Regularly Next, the knits. Cool on the hottest days. And t practically wrinkle-proof. Regularly Open a convenient Tip Top Charge Account. TIP TOP OYlEX Saving money never Centre Village Mall III XVI SO Phone 328-8255 Assembly line Volkswagen plant in Sao Paulo, Brazil, helps keep economy bustling. Brazil's indexed economy helps control inflation By FREDERICK H. GUIDRY Christian Science Monitor Can the United States, with an inflation rate approaching 10 per cent, learn anything from the experience of Brazil, whose current 15-per cent rate is a dramatic comedown from the 90-per cent annual increase of a decade ago? State Street Bank Trust Company of Boston says yes. Its chief economist, Francis E. Hassey, details the reasons in a booklet called Inflation: The Need for a New Mentality, distributed with the bank's annual report. Mr. Hassey spent about six weeks in Brazil last year talking with corporation officers, individuals, and bankers to discover how Brazil had been managing to achieve real economic growth despite higher than average inflation. The explanation appears to lie in Brazil's "indexed where, Mr. Hassey points out, "practically every area of the economy has some sort of adjustment mechanism for inflation." These adjustments allow the economy to operate as though it had price stability. They also are credited with creating a climate for reduction in the inflation rate through traditional monetary and fiscal policies. The United States is beginning to .make some accounting and other changes that parallel the Brazilian system. Banks often tie interest charges to the prime rate, and labor unions link wage increases to the consumer price index. But more of this sort of thing is in store, Mr. Hassey forecasts. Behind the Brazilian achievement an average 10- per cent real growth despite still high inflation lies a capacity for facing facts "The Brazilians have a system which admits that they have a higher rate of inflation, and accordingly, they have developed mechanisms to allow the economy to operate in a relatively stable fashion in spite of that Mr. Hassey writes. "We in the United States, on the other hand, have an economic and financial system which assumes price stability when in fact such a condition no longer exists It is essential that we adopt a new mentality which distinguishes between what is real and what is he adds. The State Street Bank study details some aspects of the monetary correction concept, by which adjustments are made in various sectors of the Brazilian economy. For one thing, government bonds are issued with a fixed interest rate plus monetary correction on the principal amount "For Mr. Hassey writes, "if the interest rate is four per cent and the rate of inflation is 15 per cent, the total interest income received by the bondholder would be adjusted upward to reflect the currency depreciation of 15 per cent. If inflation increased, monetary correction would adjust the rate still further upward. The reverse would of course be true if inflation declined." Not only is the interest return protected in this way, but Brazil also adds favorable tax features. The bondholder is taxed only on the fixed or real interest rate, and not on the interest income received for monetary correction. Bondholders do not face the risk of capital losses if inflation increases. Brazil also has something like the variable mortgage rate now being considered in the U.S. The borrower pays a fixed rate plus monetary correction Furthermore, in Brazil companies report earnings and pay taxes on income that more closely relates to real earnings than to inflated earnings. Depreciation runs higher, because fixed assets are revalued for the rate of inflation. And there is a tax deduction for that part of working capital growth which is attributed to inflation. "For example, if working capital increases by 20 per cent and inflation increases by 15 per cent, then working capital is considered to increase in real terms by only 5 per cent, with the other 15 per cent... (deductible) from taxable Mr. Hassey writes. Although Mr. Hassey does not foresee a full indexed economy for the U.S., he does believe more of the Brazilian concept of monetary correction could be adopted in the U.S. Army secretary suspends half of Galley's sentence WASHINGTON (AP) Army Secretary Howard Callaway has suspended half of Lieut. William Galley's 20- year prison sentence for murdering at least 22 Vietnamese civilians in the 1968 United States Army mas- sacre at My Lai, South Viet- nam. The action Tuesday makes Galley eligible for parole within six months because he has been in confinement for more than three years, almost one-third of his remaining sentence of 10 years, an army spokesman said The army said Callaway acted because "sufficient mitigating circumstances exist to warrant clemency In a statement, Callaway said: "There are mitigating cir- cumstances indicating that Lieut. Galley may have sin- cerely believed that he was acting in accordance with the orders he had received and that he was not aware of his responsibility to refuse such an illegal order The army secretary also said Calley "is but one of many who were involved in this affair An army spokesman said the case went to the White House on Monday. President Nixon has said he will personally review Galley's case and make a final decision. Technically, Callaway upheld Calley's 20-year sentence, but remitted 10 years of it. The army secretary said his clemency action "must serve the requirements of justice, meet the legitimate needs for sanction against such conduct by individual soldiers and, without violating society's higher needs, accord Lieut Calley an opportunity to return to society as a productive member." New survival kit for the North EDMONTON (CP) The national department of health and welfare says it has developed a new survival kit for use in the north which will maintain life for two persons for up to ten days. The kit was developed following the death of a young English nurse and her two. Eskimo patients during an ill-fated flight in November, 1972, in the Northwest Territories. Dr. F. J. Colvill, acting director of northern health services, said the 25 pound kit augments supplies and equipment carried in the aircraft. Food rations in the kit are the same as those used by astronauts on the first two Apollo space flights. Also included are articles of clothing such as mitts, scarves and socks, a tent, hatchet, chemical lights, a signal mirror and flare gun.