Lethbridge Herald, The (Newspaper) - August 19, 1971, Lethbridge, Alberta
SUNNY FRIDAY 80-85. FORECAST HIOH The Lethbridge Herald VOL. LX1V No. 211 LETHBIUIJfJE, ALBERTA, THURSDAY, AUGUST 19, 1971 PRICE NOT OVER 10 CENTS TOO PAGES U.S. crisis good lesson for Canada By I. II. ASPEIt There are several important lessons for Canada arising from the dramatic economic policy shift U.S. president Nixon announced on Sunday night- Our own problems are nol loo different. The United States, like Canada to a lesser extent, has spent itself into a position where not only its pres- ent but its future is heavily over-mortgaged. Those commentators in both countries who have learned against government over-spenduig, over-taxing, and the futility of recent labor management collective agree- ments, view the current economic upheaval with vary- ing degrees of irony, anger and bitterness. The sickness in the American and Canadian eco- nomy requires slrong medicine. Persistent inflation is exacting its most severe penalty from those least able to defend themselves the poor, the elderly and those who live on filed income, whether by being on pen- sion or by working in a sector of the economy where vage raises haven't kept pace with increases in the cost of consumer goods, InrJustry lias become demoralized became of gov- ernment attitudes, spending and taxing policies. It has become unwilling to expand in the face of demands from labor, attacks from government and general hos- tility from the academic and youth sectors. Labor Imsls neither business nor government. In- stead, labor leaders argue that they must continue their demands for increasing wages, regardless of any relationship In productivity gams, [Because (hey have no confidence in the economic system of supply and de- mand. Abandon role Governments have abandoned their traditional role of being the honest broker between conflicting inter- ests in society. Political leaders, in their zeal lo woo Ihe so-called labor vote, promise almost anything, rr- gardless of 'he coat. ,n order (o pain or r'.iintain sf fice. The recent elecuun in Saskatchewan and the cur- rent election in Alberta are outstanding esamples o[ politicians competing for office on the basis of elec- tion promises (hat run into the hundreds of millions of dollars annually. President Nixon's move was both necessary and Inevitable. Some will say he has not gone far enough. It raises the question of what Canada ought to do un- der the circumstances because, except for the foreign exchange crisis, our positions are not too different. Both countries face escalating inflation, high unem- ployment, an industrial malaise, massive government over-spending, inordinately lu'gh laxalion levels, and are crippled b> government bureaucracies which stymie quick public action. Keen interest 'Hie. program tu deal vitli the foreign exchange problem is of profound interest to Canada for if Lhe U.S. dollars drops below Canada's dollar, exports from this country to Lhc U.S. may become over-priced. Add lo UiaL Uie new 10 per cent tariff on imported goods and it is likely Canadian goods will be unable Lo com- pete in the U.S. market. If we are deprived of Uie U.S. market, for our goods, planl and un- employment result in Canada. Thus, regardless of anything else, the number one economic priority in Canada is to negotiate an exemption from the new Nixon laws. In that endeavour, Ottawa will have full support for any muscle it applies. The other Nixon remedies should be immediately adopted in Canada. There is no need for us to go (o UK! brink before we act.. Wage-price-rent freezes Would force business and labor to sit down and end Mie adversary j-y.sleir; which lins victimized Canadians. A pciipr.il lax cut will put. money into the, hands of which when spent will increase production and lessen unemployment. Lone; overdue o Special tax incentives to industry as proposed hy Uie president, are long overdue in Canada in order to encourage industry lo .seek new markets and tints expand the work available to labor. Niton's proposal lo cut federal spending nnd reduce the civil service by live nor cenl is also required in Canada, particularly at the provincial level where civil service gnnvth and budgeting deficits have escalated unduly. The crisis in Ihe United Slates doesn't have lo he repealed in Canada, hut it will lie unless governments act soon. What is needed, and has been absenl in many areas of ixtlilici.il life, is fiscal statesmanship. AllJmugh the guilt for our current and potential dilem- ma.', must ho .-.hniTd amongst, many forces in socirly, IJic fimil hlamo rests with government, si nil In Ihe lusl analysis, it is only government, which cm end tho madness lhal. has severely eroded Ihe pulv lic confidence needed to keep a nation on a sound nud straight course. But government must clean its own house first, and concurrently start lolling the lic Ihe facts cf (TMiuur.ic life, facls which have for loo long now, Ixx'ii hidden from Ilic average Canadian lirxnuycr. (Mr. Asjirr Is a Winnipeg lawyer) Canada tax bid weak -Connally WASHINGTON CAP) _ U.S. Treasury Secretary' John B. Connally said todav thai Can- ada's case for an exemption from President Mxon's import duty surcharge is weak. "I must say that I don't think their bargaining position is quite as strong as it might be.'1 Connally said in a television in- terview. A cabinet-level Canadian nds- sion was due lo meet with Con- nally Thursday to seek an exemption from the 10-per-cent extra on dutiable imports imposed by the NLvjn adminis- tration. The surcharge would af- fect 23 per cent cf Canada's ex- to the United Stales, or roughly S3 billion annually. Kinoncc Minister E. J. Benscn and Trade Minister Jean-Luc Pepin were due in Washington for the meeting. T li c Canadian government sought the exemption on the grounds that Canada does nut impose discriminatory tariffs against the U.S. and has not un- dervalued its dollar to grab off trade. Recalls 1962 situation GARDENER OF THE YEAR Bill Domeier of Ulhbridge, winner of The lelhbridgG Herald's Gardener of the Year trophy at the 49th annual telhbridge and District Horti- cultural Society show, with Jack Downs, immediate past president of both the Leth- bridge and the Alberta Horticultural Societies. (See story Page 16) Jobless ranks thin out OTTAWA (CP) Unemploy- ment declined in Canada, to at mid July from in June and a year ear- lier, as more students and young people were absorbed into tho labor market. A Joint report by Statistics Canada and the manpower de- partmenl said employment in Canada "shiwed (he usual strength in July" as the numher of jobs increased by over the IT a total of Tile July labor force slood at an increase of over a monlh earlier. 51.000 from and on the Prairie it rose to from Whale Quebec's seasonally- adjusted unemployed rate in- creased, the actual number of unemployed declined to 184.000 from a month earlier. 0 n t a r i o 's unemployed de- creased to 159.000 from 194.000, while British Columbia's dropped to from The number of unemployed in July represented 5.7 per cent of (he labor force, compared with 6.2 per cent in June and 5.9 per cent a year earlier. But there was a much smaller decline in the seasonally-adjusted unem- ployment rale that is designed to take account of the normal slump in winter employ- ment and increased activity in summer. Connally said that when the tables were turned in 19G2, Can- ada turned down a U.S. request for a similar exemption from tJicir own duty surcharge. Also, he said, the United States im- ports SI.6 billion more goods from Canada than it sends there, compared with a S650 million U.S. surplus thai existed in 1965. Connally was interviewed on the N7BC-TV Today show. He was asked what outcome be predicted for today's meeting with Benson and Pepin. "Well, fliey are going to come down and complain and ask that they he exempl from imposition of the Connally said. "We're ceilamly going lo he co-operative. They are our larg- est trading partner in the free world, they are our friends. We won't want lo irritate them or anger them, but I'm going to very frankly point out to them that when they imposed a sur- charge in and we went up Ilicre lo ask foi relief for Amer- ican products, they said no, and they never did it. Refers to auto pact O "I'm going to poinl out that in 1965, when they had real eco- nomic problems, we entered into an automotive agreement with them. At that time, we had a surplus trade balance with Canada of approximately SG50 million a year. Last year we had a deficit, a negative trade balance of 51 6 billion. "So we've had a net change of S2.3 billion in our trade balances with Canada in the last five years. So I must say that I don't think their bargaining position is quite as strong as it might be." Does that mean he will say not b.2 was asked. "Well. I don't want lo pre- judge what I'm going lo Connally said, "but 1 think ii is apparent that I'm not without seme arguments lo respond to their request for an exemption tc the surcharge." June figures in Brackets: Mani- toba 5.6 Saskatchewan 2.7 Alberta 4.0 NO CHANGE IN 13 .v. The decline in the seasonally- adjusled unemployment rale occurred entirely in Ontario where it dropped lo 4.G per cent from (he month-earlier figure of 5.1. In Ihe Atlantic provinces Ihc seasonal rale lose to 9.4 per cent from 8.8; in Quebec there was a rise lo 8.6 from 8.4, and on Ihe Prai- ries the rale rose to 4.7 from 4.3. There was no change in British Columbia, where Ihe rale remained at 7.3 per cent. Bui only two regions showed an actual increase in the num- ber of unemployed. In the Al- lanlic provinces it, increase lo Two prisoners escape in helicopter MEXICO CITY (AP) A hel- icopter landed secretly in the patio of a Mexico Cily prison Wednesday, and two prisoners escaped in it. The director of the prison said one. of these who fled was Joel Kaplan, a N'jw York busi- nc.s.sinaii convicted in IOG3 of killing Ills partner in the Ameri- can Sucrose Co.. Louis Vidal, also of New7 York. Kaplan was serving a 150-year lerm. The cdicr man who escaped wjs a Venezuelan, Carlos Anto- nio Contreras Castro, being held for fraud and forgery. Informed sources said Ihc hel- icopter carried enough fuel for eight hours of flight and was be- lieved headed for Honduras or Venezuela. -17 7 In drougllfrmvaged urea Japan weakens under pressure KABUL, Afghanistan (AP) Reports reaching here say that in some parts ol drought-rav- aged Afghanistan people have started eating grass, while oth- ers have begun mass migrations in search of food and water. The foreign ministry, appeal- ing for international aid, said: "Parched by back-to-back years of the most severe drought ever experienced in the entire recorded history of Ihe country, Afghanistan today faces the black prospect of in- sufficient grain to feed its popu- lation of 16 million and not enough fodder to maintain its livestock." ATI announcement said the country's staple wheat crop has been decimated, "causing production lo fall an estimated 800.000 tons short of self-succi- ciency over the past two sea- sons." It said thai without "ex- traordinary relief" up to 70 per cent of 26 million animals could perish, with losses possibly reaching 100 per cent in such areas as the barren northwest. China has offered tons of wheat and 3.000 tons of corn. Officials say the United Stales is considering a request for 100.000 Ions of wheat. Elsewhere, Tokyo newspapers reported today that Ihe Japa- nese government is weakening Farmers boycott Kraft Mineral rights dispute aired CALGARY (CP) A meet- ing has been scheduled Tor lo- day between Stony Indian lead- ers and two Alberta cabinet ministers in an attempt to pre- vent establislunent of toll gales on the Trans-Canada Highway. Highways "Minisler Gordon Taylor said Wednesday he and Municipal Affairs Minister Fred Colborne would discuss the mineral rights dispute with the band chiefs. Contaminated eggs eaten WASHINGTON (AP) A monlh after discovering a persistent poison was leaking into fish meal destined for chicken, pig and catfish feed, the U.S. gov- ernment has acknowledged an untarovn quantity of contami- nated eggs has been eaten by consumers. Food and Drug Administra- tion spokesmen say lire level at vvhicli the eggs were contami- nated hy Ihc DDT-like chemical illegal-is F.O low Ihc.rp is no health hnz.anl. Itnlpli Nader says il is a hazard. C'lIKAIIf'Al, nLAMKD The eggs were Ininlcd PDBs, or polychlorinnlcd hi- phcnyls, a family of compounds implicated in skin disease, liver damage and birth defects in in IMfl, when jw'oplo spent, a month or more eating vice oil laced with PClls at a icvcl of 200 parts per million. A spokesman for the tribe said they are pleased there will be a meeting, but if an agree- menl is nol reached Ihe Stonys will go ahead with Iheir toll bairiers Friday morning. They planned lo set up Uie lolls lo support their claim fir mineral rights en 13.188 of land they received from me government in exchange for 340 acres of land Ihe government got through the middle of the reserve for liighway expansion. The government says the mineral righls were not in- cluded in the swap. The Slonys plan the tolls, 25 cents a vehicle, on parts of the highway Ihey say run over land they claim Uiey slill own. rtlDGETOWiN1, Ont. (CP) The National Farmers' Union launched a nationwide boycott Thursday of the products cf giant Kraft Foods Lid. as part of its strategy lo gain higher prices for farmers on their produce. NFU Vice-President Waller Miller, announcing the boycott, said initial plans called for a re- quest lo union members and the general public not to buy Kraft products. _- 1-1 Blake Sanford, regional co-or- 131CI .inator for the NFU, said the hi sliooliiijr under pressure for an upward revaluation of the ven and is inclined to let it fl. -1 Despite official a nials that revaluation of Ihe yen is immi- nenl, the papers said informed sources lold (hem Uie Japanese currency must evenlnally be adjusted upward. The govern- ment has nol wanted to in- crease the value of the yen be- cause of the deflationary effect on the already sluggish eco- nomy. The Sankei Shimhun said the government was wailing to see what action Ihe European Com- mon Market countries would take before making a decision In Brussels meanwhile caoi- net ministers from the six Com- mon Market countries, the world's biggest trade bloc, were meeting today in emer- gency session lo hammer out an agreed stand in Uie face of President Nixon's moves lo slow imports and raise Ihe value of the other currencies against the U.S. dollar. din, union later will get in touch with specified stores across the country and ask them to re- move Kraft products from their shelves. F1REST TARGET Kraft was chosen as the ini- tial target of the boycott be- cause it is one of the biggest food firms in Canada. The NFU, wlu'ch does not say how many farmers it repre- sents, has charged that Uie fed- eral and provincial govern- ments are "rncol lusion" with large agriculture-business cor- porations at the cost of the farmer. of ex-city mail ST. ALBERT (CP) Lita Rand of Edmonton was com- mitted Wednesday to stand trial for attempted murder in the shooting of Robert Grunc- wald, 40, of Fort Saskatch- ewan. Rand was charged after Mr. Grunewald, formerly of Lclh- bridge. was found in a ditch four miles norlJi of Edmonton with three head wounds. No date was set for the trial. JOHN 1< CONNAI.l.Y Tough Bargainer Trudeau returns tonight OTTAWA (CP) Prime Min. isler Trudeau will arrive in Montreal at p.m. EDT today, returning from his holi- day abroad lo deal with the im- pact on Canada of emergency economic measures in the United Staler. The minister and his will arrive at Montreal lei-national Airport on a com- mercial flight and wiH transfer immediately to 5 department of transport Viscount for the trip to Ottawa where he is expected about 9 to p.m. EDT. External Affairs Minister Milchell Sharp will meet the prime minister at Montreal and will accompany him to Ottawa briefing him on developments. They include a visit by a cabi- net delegation to Washington today to seek exemptions for Canada from the surtax the U.S. is imposing on imports. A cabinet meeting has been called for Friday. New function for Ponoka hospital EDMONTON (CP) The Alberta Hospilal in Ponoka will be maintained but its function changed towards specialized treatment of weh-delined con- ditions, Ray Speaker, minister of health and social develop- ment said Thursday. "We intend lo achieve a slaff- palient ralio which will afford an intensive and efficient treat- ment service even though wa expect there will be a reduction in [he total number of beds in Ihe Mr. Speaker said in a news release. The hospital will continue to serve as an active treatment menial hospital. Seen and heard About town PITY CLERK John Gcrla using a fishing rod and bubble gum lo reach through a friend's milk chute to re- trieve a key so he could get in and fwrt the friend's cats Geoff Hill struggling to get the soap out of his week- old beard and mustache Hitchhiker Bruce Concord, with only a dollar to his name, spending most of it on cigarettes and eating a pea- nul b u 1 1 e r sandwich for lunch. Beef industry need not panic TORONTO (CP) The man- ager of Ilic Canadian Cattle- men's Association said loday lh.il this country's beef industry h.is no reason "for panic or undue alarm" hocauj-c of Ihe new rrnnnmir policies of Iho iNiilcd Stairs. C. A. Gracey said in a sLilo- ninit lhal. Ihe beef industry likely will escape most of the di- rect effects of the 10 cont additional (Inly on imports lo the 11. S'. Mr. Gracey said, however, thai many aspects of the silua- lion slill arc unclear and more clarification Li needed before the industry knows exactly where it stands. "One point is clear and lhal is lhal there arc powerful forces in the U.S. which will mitigate flgninsl a price advance in live faille. "Our price is now, Ihcrcforp, as favorable as we can expect and Ihc best advice lo hcef pro- ducers is lo keep marketings ciii-rcnl." WON'T FACE BRUNT Mr. Gracoy said Ihe Industry will escape the full impacl of I ho no'v lu-pcr-ccnt lax because "in most cases affecting beef, Ihc general tariff is cot substan- tially higher than Uie mosl-fa- vorcd-nalion tariff." He saitl the surcharge applies lo the most-favorcd-nation tar- iffs and nol lo the higher gen- rr.il tariff. Therefore a surcharge is applicable, Ihe lower of Ihe inosl-favored-nation lariff phis the new lax or the general lariff alone will apply. He said the additional duly will apply to all commodilies except, those now entering Ihe I'.S. duly free or those entering Ihe U.S. under quantitative lim- its such as quoins or voluntary "Therefore, wa are informed lhal Ihe surcharge will nol apply wilhin quota lo live callle now under quota arrangement. "This means thai calves under 200 pounds are exempt up fo the annual quola of head. Slaughlor and feeder cat- lie weighing over 700 pounds also will ho exempl up to the annual quola of -100.000 head (maximum 120.000 head per The sm'charge will, however, apply when these quo- tas are exceeded. "Because no quola applies to feeder calllc weighing 200 lo BM pounds, the s u r c h a r g e will apply."