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Lethbridge Herald, The (Newspaper) - August 30, 1974, Lethbridge, Alberta High prices, slow growth spark recession warning In Canada By PETER THOMSON Herald Ottawa Bureau OTTAWA A stark warning that Canada may be entering a period of recession was issued yesterday by Statistics Canada. In a report on economic activity in the second quarter of 1974, the statistics agency states: "Preliminary estimates indicate that the Canadian economy may have entered a period of weakness common to industrialized nations of the world." There was weakness in all major components of the Canadian economy in the April-June period, and no real economic growth. There was a decline of close to four percent in volume of ex- ports of goods and services which was more than twice the decline in imports. "Extraordinary price increases were a domi- nant the report states, "but final domestic demand showed little change from the first quarter." The gross National product (GNP) in the se- cond quarter rose to billion, seasonally ad- justed at annual rates. It was an increase of 3.6 per cent over the first it came en- tirely from higher prices. Gross National Expenditure, in real terms, remained unchanged in the second quarter. There was only a marginal increase, in real terms, in personal expenditure. Other forma- tion declined substantially, against a background of strikes. The rate of housing construction necessary to fulfill annual expectations was exceeded in the first half of the only because of the large number of starts in the first quarter. The poor level of non-residential construction in the second quarter indicates there will be some difficulty in meeting the annual level of intentions. Despite the widespread slowdown in demand, employment increased moderately from the first quarter, and with little growth in the labor force, the unemployment rate was reduced to 5.2 per cent from 5.5 per cent in the first. A notable aspect in second quarter statistics was "the large accumulation of non-farm business the report notes. The im- plication is that orders from manufacturers could taper off sharply in the near future. Spending by governments was a source of strength in the quarter under review. Labor income increased substantially over the previous quarter, but at a rate below the un- usually high rates of the preceeding two part due to the effects of strikes in a number of industries, notably construction. Farm income increased at a rate well above that of the first quarter, while corporation prof- its and net income of unincorporated business maintained their rates of growth. Personal expenditure on goods and services rose billion in the second quarter, ac- counting for more than one-half of the rise in gross national product. In percentage terms, however, the 3.5 per cent increase represented a deceleration from the strong rate of advance of the previous quarter. The deceleration occured in all categories of goods. Second quarter expenditure on durable goods increased 4.8 per cent, comprised of 2.2 percent real growth and a 2.5 per cent price increase. There was a 5.7 per cent rise in expenditures on automobiles, mainly on used cars; spending on recreation, sporting and camping equipment accelerated; spending on household appliances decelerated; and spending on furniture declined. The Lethbridae Herald VOL. LETHBRIDGE, ALBERTA, FRIDAY, AUGUST 30, 1974 36 Pages 15 CENTS Bombing testimony doubted MONTREAL (CP) Fire Commissioner Cyrille Delage questioned Thursday the ac- curacy of testimony given by RCMP Constable Robert Sam- son and adjourned until next Wednesday an inquiry into a July 26 bombing incident. Mr. Delage interrupted Con- stable Samson's testimony, saying: "I don't believe a word you said so far in this court today." He then granted the ad- journment after the constable asked for time to think "If we adjourn and you come back and say the same thing you've said the last two days then it's Mr Delage told Constable Sam- son "I'll only adjourn if you promise you'll have new facts to divulge." Follow 'ig consultation >''iui his lawyer, <'unstable Samson said he probably would have new facts to add. Mr Delage's remarks fol- lowed testimony by Constable Samson concerning his ac- tions July 26. the night a bomb exploded at the home of a supermarket executive. Jacques Dagenais, Crown prosecutor, asked the con- stable why he had taken his raincoat to investigate an anonymous telephone tip which said he would find "something interesting" at the home of Melvyn Dobnn. an executive of Steinberg's Ltd. Earlier testimony by a meteorologist had established that the night was clear, and Mr. Dagenais asked the con- stable if he had taken his rain- coat to hide a bag "I had nothing to hide." re- plied Constable Samson. In previous testimony, the former girlfriend of Constable Samson said the two of them had social contacts earlier this year with Camille Ger- vais. a business associate of William Obront, described in testimony before the Quebec Police Commission into organized crime as a leading underworld figure. Ginette Bechand, a school teacher, said she and Con- stable Samson met Mr. Ger- vais and his family during a trip to Morocco last spring and "after we returned we went for dinner with them several times." Linda Remillard, 21. a tele- phone operator who said she first went out with Constable Samson May 25, testified the two had stayed overnight at the Gervais home on one oc- casion. She said she knew lit- tle of her hosts. Turner plans meeting with Alia, cabinet OTTAWA (CP) Finance Minister John Turner will con- fer with Alberta cabinet mem- bers next month in an attempt to solve the still-simmering dispute between the two governments over taxation of oil company profits. Mr. Turner will meet one or more Alberta cabinet members in Edmonton in mid- September, the first ministerial-level conference or. the oil tax issue since cam- paigning began last spring for the July general election. Canada wants deserter freed RICK ERVIN photo Sitting down on the job It may look like 27-year-old Higinio de la Cruz is sitting down on the job. But the Mexican worker, re- cently hired by one of 30 area farms employing im- ported labor, is hard at work high off the ground as he dismantles the wall of a root shed at Pheasant Valley Farm near Brooks. OTTAWA (CP) The American embassy was waiting today for a formal written request from Canada that a U.S Army deserter captured by U.S. customs agents on Canadian soil be set free. An embassy spokesman said a telephone call was received about 5 30 p.m. EOT Thurs- Canada approves population plan BUCHAREST (CP) Canada has given warm approval to a much-amended United Nations plan to deal with world population pressures. But a Canadian statement prepared for the final session of the World Population Conference today desisted from pressing certain points in the debate because our objective was to support the substance of the world plan of action In making the statement, Stanley Haidasz, Liberal member of Parliament for Toronto Parkdale, also said that "while some of the changes in the document might not reflect our preferences, we accept these in a spirit of give and take." "We warmly endorse the plan of action." day. advising that Canada was "going to request his return." He said this informa- tion was passed to the U.S. state department in Washington "and we were told there would be a formal note, which we expect later today "At this point, we're waiting for the formal note." A Canadian external affairs spokesman, meanwhile, said he hoped Ronald J Anderson, 31, would be released today, saying the customs agents "acted with too much zeal." The customs men arrested Mr. Anderson in Peace Arch Park, on the border between Washington state and British Columbia, when he and his wife drove across the border to visit his mother and 11- year-old son by an earlier marriage in Poulsho, Wash. The customs service said Mr. Anderson broke away from the agents and they crossed the border inadvertently to recapture him. A spokesman said the agents did not realize they had crossed the border until it was too late. Photographs appar- ently showed the arrest did take place on Canadian soil. Inside Classified 22-26 Comics............20 Comment...... 4 District..........17 Family.........18, 19 Local News 15, 16 Markets...........21 Sports..........12, 13 Travel..............9 TV...........5-8. 11 Weather 3 LOW TONIGHT 45, HIGH SAT. 65; SUNNY, WINDY No break seen in grain strike VANCOUVER (CP) No break appears in the dispute between the Grain Workers Union and the five elevator companies that has paralyzed the grain exporting industry. However, both sides Thursday introduced new figures into the dispute." The GWU revised its cost estimate for the controversial conciliation report of Dr. Neil Perry upwards and one grain company official lowered his The union has accepted the Perry report while the com- Radar may fight oil spill hazard on west coast OTTAWA (CP) Canada and the United States are con- sidering multi-million-dollar radar surveillance and electronic navigation systems in an attempt to reduce hazards to oil tanker traffic on the West Coast, it was disclos- ed Thursday. The external affairs depart- ment, in a communique re- leased after a one-day meeting of representatives from both countries, said the measures could ease the threat of "serious pollution of a valuable recreational and fisheries area." Exact cost figures were un- available, but a departmental spokesman said the radar sys- tem and LORAN-C navigation network would be paid for by the U.S., which also is consid- ering a vessel traffic manage- ment program that will be in effect before Trans-Alaska Pipeline System (TAPS) tank- ers begin moving between Valdez, Alaska, and refineries on the American West Coast, notably at Cherry Point, just No Herald Labor Day The Herald will not publish Monday, Labor Day. Display ads to appear Friday, Sept. 6, must be received by noon Tuesday, Sept 3. Classified adver- tisements received by a.m. Saturday will appear Tuesday, Sept 3 in south of Vancouver Washington state Although details of the clos- ed meeting were sketchy, it is understood that Canada reiterated its concern that increased tanker traffic in Juan de Fuca and Rosano straits, between Vancouver Island and the mainland, pos- ed a sc-rious environmental threat Police seek abductors of Mexican GUADALAJARA, Mexico (AP) Officials said today there has been no word from the kidnappers of President Luis Echeverna's 33-year-old tather-in-law since he was seized at a busy Guadalajara street corner two days ago. Troops and police continued the hunt for the old man, Jose Guadalupe Zuno Hernandez. Zuno's doctors said they fear for his life because he must have daily medication. Persistent unofficial reports attributed the kidnapping to the leftist guerrillas of the people's Armed Revolutionary Front, who kid- napped U.S. Consul-General Terrance Leonhardy in Guadalajara 18 months ago. But federal and state of- ficials said they have nothing to confirm these reports, and sources close to the Zuno family said it has received no demands or notes from the kidnappers. Chairman Mao essay credited with hailstorm triumph Sean and heard About town Unlucky Bernie Carrier winning a modest fortune at the racetrack then losing most of it at coffee-break bushing.. Dick Heywood getting his pilot's licence so he can say to the girls, "Come fly with me By JOHN BURNS Special to The Herald PEKING Chalk up another triumph for the thoughts of Chairman Mao. An old peasant in the moun- tainous province of Kansu credits Mao's teachings with having inspired the people of his region to a major technical breakthrough in shooting down hailstorms. The old boy, Chen Yu-ching, authored a recent piece for the People's Daily describing how a "fight-hailstorm group" under his command has waged "people's war-, fare" against hailstorms since reading an old essay by Mao. The essay, entitled On Prac- tice, is a sort of hymn to em- doctrine that knowledge derives from ex- perience. It originated as an address to the Communists' military academy in 1937. In accord with Mao's direc- tive, to learn by doing, Chen's team surveyed mountains in the region to pinpoint the paths followed by hailstorms that had been ravaging the area's crops for centuries. Having established three main routes, the team mounted a quasi-military operation to intercept the hail. Defence lines were laid out across each route, with 50 home-made rocket launchers and 127 guns being deployed to fire chemicals into menacing clouds. "We now have a 114- member fight-hailstorm group." Chen wrote, "Whenever hailstorms gather we fire the guns under unified command to disperse them before the hailstorm comes into shape." Once pioneered by Chen's Wentou commune, the tech- nique quickly caught on throughout the county. By last three years after the first experiments, a total of 2.- 300 peasants were engaged in the struggle, using more than anti-hailstorm of them local- ly manufactured. The resulting boost in crop yields has been dramatic, as Chen told it. Total grain out- put in 1973 was double that of 1969. According to Chen the hail- storm campaign exposed the bankruptcy of Confucius's teaching that "everything is decided by heaven" "a wrote Chen, "that the decadent exploiting classes used to deceive the people panics have steadfastly refus- ed to accept it. The govern- ment has said it would legislate a settlement, but Otto Lang, minister responsi- ble for the Canadian Wheat Board, the crown marketing agency, reiterated in Win- nipeg the government has no intention of recalling Parlia- ment to end the dispute. A M. Runciman, president of United Gram Growers said in Winnipeg the cost of the settlement would be 48 per cent rather than the 61 per cent the companies have been maintaining it would. W. R Mead, the companies' spokesman in Vancouver, said however, that "the cost is 61 per cent for the complete package and 48 per cent for direct wages plus cost-of- living adjustment projections based on a base rate of 96 an hour Henry Kancs of the GWU revised his figures upwards from 38 per cent Mr Kancs said his original cost estimation was calculated on an annual rise of eight per cent in the cost of living. He said he has had to come up to nearly 42 per cent because of the rapidly rising cost of living Union researcher Emil Bjarnason, however, calculated the figure at 42.9 per cent and said it could change depending on ad- ditional cost information. The Perry report called for pay increases of 87 cents and 65 cents an hour over the two years plus the cost-of-living adjustment projected to cost 91 cents. The report also call- ed for a non-contributory pen- sion plan, sick benefits, dental plan and shift differential Mr. Lang, commenting on a letter sent him by G. N. Vogel. chief commissioner for the board, which urged im- mediate government action, including the recall of Parlia- ment if necessary, said the es- timates of lost sales are dif- ficult to predict. Turks cross ceasefire line NICOSIA (AP) Turkish troops pushed across the ceasefire line inside Nicosia today, seizing two houses leas- ed by the British high com- mission and menacing United Nations peace force soldiers at gunpoint, UN officers said. Canadian UN paratroops in battle gear and flak jackets drove through the barricades of sandbags and oil drums dividing the city and took up positions next to the Turks in- side the disputed houses. Refinery considered EDMONTON (CP) Alberta Gas Trunk Line is considering construction of a large scale oil refinery concentrating on petrochemical production, AGTL president Robert Blair said Thursday ;