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Lethbridge Herald, The (Newspaper) - April 18, 1973, Lethbridge, Alberta 'POLITICS NOT INVOLVED' IN TABER LOAN The LetKbridge Herald VOL. LXVI No. 109 LETHBRIDGE, ALBERTA, WEDNESDAY, APRIL 18, 1973 PRICE: TEN CENTS THREE SECTIONS 32 PAGES Nixon removes lid from oil imports Jobs at stake in auto pact By VICTOR MACKIE Herald Ottawa Bureau OTTAWA Exploratory talks have been held with United States Treasury chief George Shultz for changes in the Canada-U.S. auto pact. Industry Trade and Com- merce Minister Alastair Gillespie told the Commons Tuesday. would be overstating it to say that proposals have been made.'' the minister added under questioning. He assured the House that if there are changes in the auto pact agreed to with the Americans, they will be only agreed to if there is a mechanism to "protect existing and future Canadian jobs" based on the agreement itself. Opposition Leader Robert Stanfield expressed con- cern in the house over reports coming out of Wash- ington that the U.S. senate will move this fall to abolish the Canada-U.S. auto pact unless the Canadian government agreed to remove the safeguards in the agreement. Washington press reports quoted 201 unnamed source in Congress as saying the senate finance committee will attach an amendment to the Nixon trade bill that would abrogate the auto pact cr fix a time limit on its life unless the agreement is revised. Ottawa is reported to have presented a compromise pro- posal for gradually eliminating the safeguards in the pact. EXPLORATORY CONFERENCE Mr. Giliespie confirmed in the house, under ques- tioning, that hs had bssa in Washington recently and held talks with Mr. Shultz. He said the discussions were about a number cf matters of mutual interest to the two countries, bilateral and multilateral matters. "In the course of these talks we also had exploratory discussions about inclusions that might be made in the auto pact." said the minister. Mr. Stanfield asked the minister to give the bouse assurances that any proposals he had made to Mr. Sfaultz "do in fact constitute improvements in the pro- tection afforded to the automotive industry in Canada." Mr. Gillsspie said any changes agreed upon by Canada will provide some kLid of "built-in so that Canada will have its "fair share'' of the pro- duction North American vehicles consistent with the first article cf the aulo pact. Mr. Sianf jeld faid the minister was giving the house "vainie assurances." He there appeared to be an "ominous situa- tion" building up in Washington. He asked the mini- ster to agree to the auto pact being referred to a com- mittee of the Commons. Cool spot Temperatures in Toronto hit the 72-degree mark yesterday and employees of Muirhead Engineering Ltd., decided to have lunch in a shady spot supplied by Muirhead-made heating ducts waiting to be ship- ped. Inside s Classified Comics........28 Comment......4 District 17, 21, 26 Family.......5-7 Local News 3 Sports......13-29 Theatres 25 'X! TV.........24 Weather........2 MV t like LOW TONIGHT 30, ,nGI1 K. SNOW FLURRIES Tax refunds legislation in Senate OTTAWA (CP) If the Sen- ate moves as it usually 132.000 people eligible for new tax ex- emptions will receive refund cheques in about two weeks. The upper chamber is ex- pected to give third reading and royal assent today to a bill amending the Income Tax Act and five others on different matters. Should royal assent be given, a revenue department spokes- man said cheques with refunds based on the changes can be out within two weeks. The de- partment already has processed the 132.000 claims on computer tape and is simply awaiting leg- islative approval belore sending the tape to the supply depart- ment to be processed into cheques and mailed. Among other things, the tax changes would raise exemptions for students, the elderly, the disabled and the blind. They were announced in a federal budget last May 8 and are ret- roactive to Jan. 1.1972. All were included on the 1972 tax forms, but the legislation must be passed before the gov- ernment can act to pay refunds where applicable. Alberta coal sale seen as breakthrou EDMONTON (CP) Indus- ry and Commerce Minister Fred Peacock said Tuesday the sale of teas of COB! by Mclntyre-Porcupine Mines Ltd. in Grande Cache to the eastern United States could lead to a breakthrough, in the sale of Alberta coal to American and Ontario markets. "We're getting very close to being competitive to eastern he said outside the legislature, after announcing the sale. Word of the sale followed on the heels of an anouncement that Mclntyre Porcupine has negotiated a price increase with Japanese buyers for coal shipments from its Grande Cache mine. TRANSPORTATION KEY Air. Peacock said transpor- tation was the key for the east- ern U.S. sale, which involved the government-owned Alber- ta Resources Railway and CNR. He did not disclose the rate structure, but said the sale will improve the financial position of the debt-ridden ARR by up to The minister has said Ws strategy for the sale of coal is to have cheaper freight rates to ship the coal out of the province, placing it in mar- lets where it is competitive in price. Mr. Peacock suggested the sals was part of a package deal that increased the price of coal the Japanese buv from Mclntyre-Porcupine. They will pay a ton, an increase of S3, but will reduce by 750, 000 tons the original commit- ment to purchase two million tons a year. The coal shipped to the U.S. will be worth S10.50 a long ton when it arrives at the Lake- head and will mean nearly a return, Mr Peacock said. In another move to sell coal, the government announced this week that is supporting the idea of shipping coal slurry coal mixed with oil to East- ern Canada in a pipeline to beat high transportation costs. secure and "will probably turn into half a million tons." He indicated the coal would be going to Gary, Ir.d., a large steel producing centre. "WASHINGTON (AP) Presi- dent Nixcn removed oil import limus today in a wide-ranging proposal designed t o end fuel shortages that plague con- sumers last winter and gasoline shortages that threaten this summer. In his message to Congress, Nixon also proposed to end fed- eral price regulations on new supplies of natural gas. He of- fered a variety of measures, all aimsd at'assuring U.S. energy supplies for the future and avoiding over-reliance on for- eian sources. Nixon sa'd ending regulations on natural gas would permit CAMBODIAN LEADER BOWS TO PRESSURE PHNOM PENH (AP) Pres- ident Lon Nol has bowed to United States pressure and agreed to bring some of his op- ponents into the Cambodian government in an attempt to get ceasefire negotiations started with the Communists. will choose a new prime minister to lead the government with the participation of the op- the 59-year-old chief of the embattled Pnnom Penh regime said in a broadcast Tuesday night. Authoritative sources said Lon Nol agreed to broaden the government under pressure from President Nixon, who sent the vice-chief of staff of the U.S. Army, Gen. Alexander Haig, to Cambodia last week to assess the current Communist threat to Phnom Penh. U.S. officials in Washington fere hopeful that Lon Nol will turn the government over to his former associate, Sisowath Sirik Matak, a relative of the de- posed chief of state. Prince Norodom Sihanouk, and that Si- rik Matak can get Sihaircuk's supporters in the Khmer Rouge guerrilla army to the confer- ence table. Watergate probe gains momentum In Grande Cache, mine man- ager Phil Johnson said today that no contract has been sign- ed, bat the ton sale is and heard About town RICHARDS ask- ing for the cream and sugar and then realizing she was drinking a soda pop Phil Blakclcy, squeezing into a car. claiming it was juM like trying to put on a small coat City Manager Tcm. Nutting pouring wine at the council's budget meeting din- ner. WASHINGTON (AP) The Watergate investigation is gain- ing momentum after President Nixon abandoned his blanket claim of innocence for White House aides. Nixon said Tuesday he will send his aides to testify publicly as demanded by Senate investi- gators preparing for hearings next month. He said he launched a new presidential inquiry into the matter last month, about the time convicted Watergate bur- s'ar James McCord begsn tell- ing his story to a Senate com- mittee and a fed.pral grand jury. This time the president's in- quiry is being conducted by per- outside the White House staff, some of whose membsrs ere reported to have been im- plicated in McCord's secret tes- timony. In a related development, Nixon's re-election committee was reported to have offered the Democratic party S52-5.000 in damages to settle a multi- million-dollar package of law- suils over the Watergate raid. Nixon disclosed his actions in a three-minute statement to re- porters at the White House. No queslicns were permitted. NOBODY EXEMPT Nixon no officials are ex- empt from prosecution, and saH he'll suspend any govern- ment employee indicated in the case and fire anyone convicted. While House press secretary Ronald Ziegler said the Tues- day announcement supersedes Nixon's longstanding claim that administration officials have been cleared. The latest state- ment stemmed from "serious charges" that Nixon said first reached him March 21. The president's original claim was made Aug. 29 when Nixon said presidential counsel John W. Dean HI had concluded an independent investigation of the burglary and wiretapping of Democratic offices at the Wa- tergate building. CoiMlemnation resolution sought at UN UNITED NATIONS (AP) United Nations Security Council members sought a resolution to- day that would condemn Is- raels raids into Lebanon and still survive the veto gauntlet of the United States. China and the Soviet Union. British and French diplomats were reported working with Arab delegations to draw up a draft for submission to the council A British spokesman said his delegation waaiis it to include references to both the Israeli attack and to Palestinian guerrilla actions. U.S. Ambassador John Seal! said Tuesday he will veto any resolution that does not also condemn acts of terrorism by the Arab guerrillas. prices of new gas to rise. But the consumer, he said, would be protected against sharp in- creases because existing sup- plies would remain at regulated levels until their contracts ex- pire. He warned that, if present trends continue unchecked with U.S. energy demand cutracing new supplies, "we could face a genuine energy crisis." AVERT CRISIS' "But that crisis can and should be he said, "for we have the capacity and the resources to meet our energy needs if only we take the prrper take them now." The most immediate step taken was his removal, by proc- lamation, of present quotas lim- iting imports of foreign oil. He said oil importers could bring in as much as permitted under current quotas without paying further tariffs. He said they may, however, import pet- roleum in addition to the 1973 quota levels upon payment of a fee. He said the tariff-free imports will be phased out over seven years until all oil imports are governed by the fee schedule. Nixon asked Congress to end the price control of new natural gas supplies on the interstate market by the Federal Power Commission The proposed legislation would allow the secretary of the interior to monitor natural gas prices and impose a ceiling on them if necessary. Prices already dictated by the FPC would remain unchanged. The president told the interior department to triple by 1979 its leasing of federal offshore areas for oil and gas development by extending the leasing into new areas beyond an ocean depth of 200 metres (about 622 feet) and beyond the channel islands off Santa Barbara, Calif. FAVORS A SANCTUARY But he resubmitted his pre- vious proposal to create an oil- free sanctuary off Santa Bar- bara in California in the area which suffered major oil spill in 1969. Nixon asked Congress to au- thorize the interior department to license the construction of deep-water ports in federal wa- ters beyond the three-mile limit. He also proposed that the de- partment be converted into a new department of energy and natural resources, expanding his previous proposals along those lines. To enable power plants to continue burning coal, a plenti- ful fuel. Nixon asked the states to postpone implementation of a national air-quality standard de- signed to protect the environ- ment. No Herald Good Friday The Herald will not publish Good Friday, April 20. Regu- lar editions will be publish- ed Saturday. April 21. Copy for display advertise- ments for Monday. April 23. must be turned into The Her- ald by noon Thursday. Classi- fied advertisements received by 3 p.m. Thursday will ap- pear Saturday, April 21. Albertan sure ICCS choppers off course PHU BAT. Sewth Vietnam "I didn't want to believe it but now Tm sane." says Capt Ray Parsons. "The h c 1 i copiers were off course.1" Capt. Parsons of Red Drcr was one of two Canadians who survived 10 days ago when one International Commission of Control and Supervision helicop- ter was shot down ever Com- munist territory in northern Snrth Vietnam. Another land- ed safely. Since the return of an ICCS Investigating team from the area last week. Parsons has become absolutely convinc- ed tiat Use area examined and photographed by the team was Uie same place where he land- ed on April 7. "They the (Viet Cong) 3d us lais a few pictures of the he said. "Just com- paring the photographs yester- day, there's no question in my mind that it's the same loca- tion. HIT BV MfSSLK ''They haven't mmed any- thing or CsTia d i a n Capt. Eupene ard e'pht others were Wltd whrn the fire; of two ICCS helicop'crs on Ihe ICCS mission was destroj- ed by a Viet Coag missile. Cap1. Parsons and Master Cpl. Robert Laplanlc wera aboard a second helicopter, was hit by Communist fire but landed without injury to the 30 passengers and crew- men. American charier sen- i cc p.lo's of tbc helicopter haic InM the ibcy are certain i'-cy were "i twyr. Capt. Fa i. sons shielded fr-m the press un'il he had p.vm events the investigation tezn in Hue H" interviewed Tuesday a4 Bai. the ICCS sub re- gional headquarters to which he assigned, fk mites of Hue and miles east of the crash site. The captain dismissed news reports that the wreckage of the helicopter might been moved. He the evidence ?o conclusive thai he did fc-rl any f-r the survivors lo the crash site. OPINION StTPORTED His opinion, according Jo in- formed fources in Sajgon, is supported by Canadian experts in photo analysis, who have examined with great care the two of pantographs taken by She survivors and the iaves- ligalaoa learn. They say the photographs shon the same wreckage in the Simc place. The same conclusion that the helicopter -was off vsc reached by all eight ICCS investigators when they went lo Uhe crash si'e last week. The wreckage was located almost exactly where Oic Viet Cong said it was. some 35 miles from the air corridor through which the IOCS heli- copters had been promised safs passage. A Taber businessman, who is president of the Taber-Warner provincial Progressive Conser- vative Association, is another developer granted a Alberta Opportunity Company loan. Norman Long, who says ho will put the loan towards a hotel-motel complex In Taber, said Tuesday his politi- cal affiliations had nothing to do with the Joan application be- ing successful. "I've had money Invested In this thing since 1967 and I had made an application to the de- partment of tourism and indus- try under the Social Credit gov- Mr. Long a real es- tate agent, told The Herald. Mr. Long's announcement comes in the midst of a po- litical battle in which the So- cial Credit opposition in the legislature is alleging Alberta Opportunity Company develop- ment loans influenced by politi- cal considerations. Another Taber- area busi- nessman, Patrick Shimbashi, had also applied for an Alber- ta Opportunity Company loan to build a hotel development in the community 30 miles east of Lethbridge, but this was turned down, he told The Herald. Mr. Shimbashi is past vice- president of the Alberta Liberal Association. He said Tuesday he was nev- er given reasons for his loan application being rejected. CHARGES AIRED Political patronage claims were first aired last weekend when James Henderson, Soared house leader, insisted a 000 development loan was given to a director of ths Alberta Housing Corporation, who is organizing a SlOO-a-p'ate dinner for Premier Loughesd. Lethbridge business man Fred Weatherup said later he thought Mr. Henderson was pointing a finder at Mm. Mr. Weatherup, an automo- bile dealer, denied ever having acplied for such a loan from the Alberta OpDortunity Com- pany cr the Alberta Treasury Branch. completely he insisted. Tuesday he announced he would sue Mr. Henderson and the Scored party for slander. Then, in the midst of the has- sle Tuesday, Lethbridge res- taurant owner Sven Ericksen announced he had received ap- proval for a loan from Alberta Opportunity Company. He feared Mr. Henderson may have somehow confused Mr. Weatherup with him. Mr. Ericksen added that plans for his new development, to be located next to Sven Ericksen's Family Restaurant on Mayor Magrath Drive, are not yet complete and he will net receive the money from the Alberta Opportunity Company until construction is underway. City developer Art Batty con- firmed today he has received the lean from the Al- berta Op p crtunicy Comp-any described by the government last week as going for a nine- storey, 144 rcoju Izciol, two storey office building, bowling alley and shopping mall in Lethbridge. Mr. Batty is developer of the Holiday Inn and Holiday Vil- lage. SECRECY ISSUE The government last week re- leased descriptions, but no names, of six developments granted loans by the Alberta Development Opportunity Com- pany. Mr. Long and Mr. Ericksen say they are two of the sk. but the government has clung to its rule of confidentiality. However, Industry Minister Fred Peacock said in the Leg- islature Tuesday the secrecy issue may be reviewed "when and as we get around to Jfr. Henderson asked the government to "remove the cloak of from the fund since "a number of re- cipients of loans'' have already identified themselves publicly. Mr. Peacock said the loans are given with the assurance of confidentiality, but that the matter might be reviewed. The minister also told Mr. Henderson that government employees are not necessarily excluded from loans from the new million fund. Mr. Peacock, replying to Al- bert Ludwig (SC -Calgary Mountain Viewi. said informa- tion about loans wili be made in confidence Jo any MLA who asks privately TABER LOAN The Taber Joan will cover 75 per cent of the value cf Uie comptex. to a maximum of S500.WO and will be provided when the 30-unit hotel, restau- rant, 3cunge. and caharei is completed. A building rermit will he obtained within a month. Mr. Long Mr. Lone has been president of the Taber Warner cwi- Mitumcy aswriation for Hinx- 1 o T Trt s. airi unfTKyesiifuTJy the Conservative 3n Ihal ridinc for the Ross Gihb. indixs'rial CO-T- dinator for Taber said to h1' knowledge Mr. Ltsng has been talking about the project for two or liree yean. ;