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Lethbridge Herald, The (Newspaper) - December 23, 1970, Lethbridge, Alberta 4 1HE LETHBRIDOE HERALD Wednesday, December 23, 1970. Lifeline in Indian Ocean Although Prune Minister Heath has not coiiiB out with a flat statement that the decision about arms sales to South Africa will not be made prior to the Comnionw e a 11 li conference scheduled to take place in Singapore next month, all indications are that he will wait to hear what the other members of the association have to say before announcing his decision. During his recent trip to Canada and the United States, the British prime minister defended his view that Bri- tain should lift the six year embar- go on arms sales, but that is as far as he went. The prime minister is well aware of Canada's opposition, as well as the opposition by the black nation members of the Commonwealth to the projected sale. He knows too that the Simonstown agreement on which he bases his views, is open to interpreta- tion, and that South Africa can get its arms from other countries, particu- larly France, it if comes to that. Britain's case for the arms sale is based on the need to defend her sup- ply lifeline through the Indian Ocean, which could be imperilled by the So- viet build up in that area. Now there is reason to believe that the Americans are worried too. They have decided to build a communica- tions base on the British owned is- land of Diego Garcia in the centre of the Indian Ocean. Their investment will be in the neighborhood of 12 Friend and host The Canada Safety Council's slo- gan, First a a host, may or may not lose its force through repetition. There is a danger that it could seem like nagging with its dan- ger of reverse results. But it might, on the other hand, achieve its objec- tive of being persuasive. The council obviously thinks the risk of the for- mer happening is worth talcing be- cause the benefits of the latter are so desirable. Death stalks the highways during the holiday season. Its agent is the impaired driver. To fail to exercise caution in the consumption of alco- hol when planning to drive is crim- inal and those who aid and abet driv- ers in getting into such a condition are guilty of complicity in crime. Therefore it is sound to focus on the concept of the good host. It is almost axiomatic that the good host is generous. Challenging such an image is a major undertaking and cannot be done in a one-shot effort. People have to be persuaded that generosity with drinks is not a de- sirable thing if it also means gener- osity with death. If a quarrel were to be picked with the safety council's slogan it is the unintended implication that being a friend and a host are different things. A host can be a ought to be in this matter of putting human welfare ahead of convention. The convention of an unlimited sup- ply of liquor at social gatherings needs challenge. Commonsense and good taste should dictate that ration- ing is the mark of a good host among those who have accepted" its use as proper. Much ado about nothing The premiers of the three prairie provinces met in Winnipeg last week and resolved to make every effort to remove restrictions on one another's farm products. The resolution came as a direct result of the chicken and egg war which has been waged by provincial poultry and egg market- ing boards in recent months, in order to protect their own producers. In actual fact the marketing boards have no authority to restrict inter- provincial trade on agricultural prod- ucts or any other kind of goods. The premiers have got some fine politi- cal "hands across the provincial borders" mileage from their com- bined statement of policy. But the is that free trade between prov- inces is now, and always has been an essential part of the Canadian con- stitution, the recent inter provin- cial barriers notwithstanding. So why all the brouhaha? Art Buchwald WASHINGTON President Nixon was asked at last week's press conference why he didn't release a top secret report on the SST that the White House had com- missioned. The question was asked because it is believed that the report was unfavor- able to the SST. The President replied he had no objec- tion to the substance of the report, being made public. The problem was that when reports are made for the President, they're supposed to be held in confidence. That's what Mr. Nixon said. Max Lindbergh, a friend of mine who is an aviation consultant, believes he knows what is in the report. "It has nothing to do with the environ- Max told me. "The report says the reason we shouldn't build the SST is that by the time it comes off the assembly line there won't be any places left for Ameri- cans to go." "I don't I said. "If we start on the SST now, it will bo ready by 1079. Most scientists agree tho SST is not a practical plane to fly over land because of its sonic boom. Its only vaJuo would be flying over water, from one continent to another, in less than three hours. Therefore the oi the piano will be dependent on tourists, and there is some question as to how many tourists will be flying by W70." "I still don't understand." "Well, for one thir.g, South America by then wilJ probably off limits for Ameri- can touri.sLs unk'K'; they're willing to IKJ kidnappcd hy Communist guerrillas. "In we'll be in a trade war with Japan tjecaii.se rivi; dumped all here tele- vision in Ihe I niuxl States. Tho Jap- anese will retaliate l.y refusing to let us dump our lounMs in Tokyo. "Chiang Kai-shek on Formosa will ban U.S. tourists because we wouldn't let him attack the mainland of Eed China. And Red China will refuse tourist rights to the United States because we wouldn't let Chiang Kai-shek attack the mainland." "What about "Australia will turn down SST tourist flights because we put a high tarifff on wool, and Hong Kong will do the same be- cause we won't let any men's suits into the United States." "India won't be talking to the United States because we gave fighter planes to Pakistan." "Pakistan won't be talking to the United States because we gave tanks to India." "Surely South Vietnam will let us fly Americans to Saigon." "Yes, but we find any American tourists who will want to go there." "There is always I said. "Hardly. The British will boycott! the United States because we won't allow the Concorde, which they built with the French, to fly to the United States. And the trench won't allow tourists to land in France because that's the way the French are." "What about West "West Germany-will be mad at us by then because we pulled American troops iut, of NATO." "I hnaguie the Soviet, Union will give us problems because they have built an SST of tlicir ov.Ti." "Not because of that, but because Lifo magazine will have published the memoirs of the deposed chief of state, Premier Alexci Kasypri." "What are the chances of an American tourist business in (lie Middle Alax .stitxjk his head .sadly. "Don't ask." (Toronto Telegram News Service) Joseph Kraft, Brazil's progress toward economic goals million dollars, and is not at present expected to affect Britain's military capability in the area. The U.S. says that its interest is meant only to fill the gap in naval communications be- tween the Philippines and Ethiopia, but as they have only two vessels ill the Indian Ocean, based in the Per- sian gulf, the investment in Diego Garcia would be a wild extravagance if there were no other use for it. They want a listening post to decide for themselves whether the Russian build up is a threat to security, and they categorically deny that the tiny island will be used to contact their Polaris submarines, or that it will be a military base in the usual sense. Nevertheless, the establishment of a communications base, indicates that the U.S. is not indifferent to the pos- sibility of a Russian military threat in the Indian Ocean. American interest would appear to be a plus item for those who con- tend that arms sales to South Africa is not essential to the maintenance of British security. But there are members of the Commonwealth, par- ticularly Ceylon and India, who may be opposed to the American pres- ence. They have a right to be heard, just as Canada and the black Com- monwealth members do, for they are well aware that Diego Garcia could become much more than a symbol of Anglo-American co-operation; TJIO DE Delfim Netio is a fat- faced, fortyish grandson of Ital- ian immigrants who is shaping up as one of the world's great finance ministers the local equivalent, some claim, of what Hamilton was to the Uni- ted States in the early days. Among many other things, Senhor Delfim has put into ef- fect a major innovation in for- eign exchange policy. That change represents an import- tant contribution to the solu- tion of the economic problem that seems to be baffling even the United States the prob- lem of easing inflation while maintaining general prosperity. The record in Brazil is beau- tifully clear. From 1963 through 1967 consumer prices rose at a rate of over 120 per cent a year. Since 1908, when Delfim took over, they have been going down. This year tho rise will be below 24 per cent. Next year it is expected to dip under 20 per cent. At the same Lime, all the normal growth indicators in- vestment, production, and gross national product are bounding upwards. Last week, the stock market here set a new high in a day Uiat saw the value of shares traded to- tal almost half the worth of the day's transactions oh the New York Stock Exchange a truly staggering amount of pri- vate money tapped for invest- ment in a developing country. The distribution of goodies in Brazil's current boom so far favors tliose already well off in Ihe southern part of this coun- try. But by tax incentives, Del- fim has provided for important investment in the backward and drought-ridden northeast of Brazil, Large parts of the sur- plus lie has piled up in the Brazilian federal treasury are being expended on develop- ment projects hi the northeast and the almost unknown Ama- zonian hinterland of Brazil. And rising consumption in the developed areas is now calling forth a record agricultural pro- duction wliieh means spreading the wealth in the. form of more jobs in the countryside. To achieve these goals, Del- fim has used a wide variety of measures tax reform, wage and price controls, monetary policy many of them devel- oped by former Planning Min- ister Roberto Campos. But the big innovation has come in the matter of foreign exchange. Previously, any growth in consumer purchasing power here used .to translate im- mediately into demand for goods imported from abroad. This demand did little to stimulate local production. It tended rapidly to outstrip both the available foreign goods and the available foreign exchange. Thus, Brazil was subject to re- current economic crises where low production and unemploy- ment combined with inflation i "Oh, by the way, that nice next door neighbor borrowed the axe and a drain on foreign re- serves. The finance minister broke this cycle by what amounts to a policy of regular currency devaluation. Brazil's currency, the cruzeiro, has been tied to (lie rate of inflation. As prices go up, tlie value of the cruzeiro is periodically that is, al- most every month altered. That way foreign goods ara kept at relatively high prices on the Brazilian market. Do- mestic goods remain relatively cheap. Demand goes chiefly to internal producers. And these producers, fortified by the big local demand, are able to hold prices low enough to compete on the international markets. This year, for instance, Brazil is selling auto parts to the Uni- ted States. Next year, exports of manufactured goods are ex- pected to equal the value of coffee exports. The parallel with the United States, while not perfect, is ob- vious. Inflation has raised the price of American goods. West German, Japanese, and other foreign competitors, working on favorable exchange rates, are undercutting American companies both in the United States and in Third countries. That is one reason why the Am- erican economy now combines unemployment of over 5 per cent with inflation of over 5 per cent. That is a main reason why there is such tremendous pressure from industry for higher tariffs. The way out of the bind for the United States is, of course, different than the way out for Brazil. Unlike the cruzeiro, the dollar is a reserve currency widely held by governments and banks in lieu of gold. Any sharp changes in its value would disrupt international economic life. But there are gentle ways to make such changes. For in- stance, West Germany and Ja- pan and other countries now taking and enjoying bene- fits from unrealistic exchange rates might be induced to re- value their currencies up- wards. Thus, the basic Brazil- ian lesson applies. The United States needs as one ingredient of i t s economic policy some way to put more give into ex- change rates that now work to brake rapid recovery of the American economy. (Field Enterprises lac.) U.S. in quandary over South Vietnam's election By Flora Lewis in The Winnipeg Free Press WASHINGTON: The Paris peace talks on Vietnam have gotten absolutely no- where, and there isn't the slightest sign of a break coming. South Vietnam's President Nguyen Van Thieu has prom- ised Washington that he is going to come up with some new proposals, at least to giva the appearance of movement. He had been expected to make the announcement on his coun- try's national day last month, but instead made a particularly harsh speech. Still, the Nixon administration insists he will keep the promise "when he feels the time is right." Further, officials believe that Mr. Thieu will offer some real political concessions to the Communist side, because there is a growing sense in the Sai- gon government both of confi- dence and of need to appear more flexible. Vice-president Nguyen Cao Ky .made that evi- dent in ills visit here, proclaim- ing himself an "ex-hawk turned dove." But if Mr. Thieu dons the same feathered costume, and even coos a little at the Na- tional Liberation Front, it still hasn't the slightest likelihood of changing things in Paris. The Communists have said again and again and again they won't bargain with Mr. Thieu, Mr. Ky or Prime Miniter Khiem, and they certainly seem to mean it. Nonetheless, Mr. Ky's switch and Mr. Thieu's promised pro- posals are not idle gestures. They may mean nothing to Hanoi but they are aimed at the South Vietnamese public. The "right time" is obviously directly tied to next Septem- ber's national elections hi South Vietnam, and the campaign manoeuvring is already going on in earnest. The elections for p r e s i- dent, vice-president, and the national assembly offer the only visible hope now for an opening in the deadlock of ne- gotiation. But conceivably change could come at the polls. The French government is quietly urging the U.S. to seize this opportu- nity by making clear it would be perfectly happy to see a new team elected in Saigon. Washington knows perfectly well that if Mr. Thieu runs for re-election and the U.S. does nothing to undermine him, Letters To The Editor Conditions merit good pay The future of coal mining in Western Canada is a most promising one, with coal pro- duction estimated to reach 40 million tons by the end of 1079. That is, 20 million for metal- lurgical purposes and 20 million for thermo power. Two hundred million tons of coking coal will be shipped Santa Glaus? I hope you will permit ma the use of your columns for a brief Christmas message: "Yes, Virginia, there is a Santa Clans" On Sunday afternoon, while my car was parked on the lot at Ericksen's R e s t a u r ant, Santa in his haste to make his rounds, no doubt, backed into the front of my car with such force as to smash out the cen- tre of the grille-work. He, of course, did not have time to make an effort to report tho accident. Perhaps it wasn't Santa Clau's after all. If it wasn't, then to some unknown person of such integrity T wish n Happy Christmas, and the en- joyment of the additional gift he made to himself. W. ASHLEY WHEELER. from Western coal mines to Japan in the next 15 years, with a value of over two-and- a-half billion dollars. Coking coal from these west- ern Canadian mines is also being sold in increasing quan- tities in central Canada and certain countries in Europe. In this monumental develop- ment the United Mine Workers have the great reponsibility of making sure that those who work in, and depend upon the coal industry for a living will participate fully and equitably in this new prosperity. If the need for energy requires men to continue to work hi the re- latively unattractive occupation of the coal miner, then the in- dustry should be prepared to offer suitable compensation to the man who undertakes the job. His working conditions should be as safe as humanly possible, and his wages the highest in the land. If this new development results only hi higher profits for the owners, then the whole project could be a complete and utter failure. JOHN H. DELANEY, President, District No. 18, U.M.W. of A. Calgary. he will be considered as the of- ficial U.S. candidate. Some U.S. officials are trying hard now to figure a way around this and there is a growing debate with- in the administration on wheth- er the U.S. should discreetly back Duong Van Minn, the op- position candidate with the best chance. The Communists have hinted that "big Minh" as he is known, is somebody they could deal with. He is an anti-Communist nationalist, tlie ex-general who led the coup to overthrow Ngo Dinh Diem in 1963. Among Viet- namese leaders, Mr. Thieu has all the cunning, Mr. Ky has all the daring, and "Big Minh" has all the popularity. So far, Washington is watch- ing closely and waiting to see how the intricate moves of the Vietnamese politicians develop. Mr. Ky's visit here itself was meant as a signal that Mr. Thieu can't count on running as Washington's favorite. As the campaign develops there will be formal statements that the U.S. has no preference. Nobody will believe that, nor is tlie ad- ministration willing to do any- thing openly to appear to nama a rival as Mr. Thieu's succes- sor. That would be unwise, and probably self-defeating. But Vietnamese polities work by subtleties. Discreet gestures carry much more effect than normal statements. Within not too many months, the admini- stration will have to decide whether in fact it does want to be stuck with Mr. Thieu, and a long-drawn war of gradually lower intensity, or whether it wants an ally that could bar- gain for settlement. At this point, the weight of American officialdom remains with Mr. Ttiieu. If there is no switch, there is no prospect for negotiation. "Big Minh is now tlie only visible hope for peace. South Vietnam's election in 1971 may therefore be a crucial fac- tor for Mr. Nixon's hopes in 1972. The domestic politics of Saigon is now the place to watch for clues to any shift in U.S. policy on Vietnam, and to chances for a negotiated settle- ment. Looking backward Basic school needs THROUGH THE HERALD o m Bassoff, convicted murderer and bandit in the Crowsnest train robbery was hanged at the provincial jail here. 1930 New Dayton recently opened the new stadium and community centre. It is one of the finest social halls in the district and is being thorough- ly enjoyed tlie community. iSiO rrirne Minister Churchill broadcast an appeal to the Italian people to rid themselves of Mussolini and threatened to rip their African empire to "shreds and tatters" if they continue the war. taxi indus- try goes metropolitan on Jan. 3, when a city bylaw makes the use of taxi meters manda- tory in all city cabs. present plans subject to change or de- lay, it is expected that con- struction of the Canadian Dressed Meats plant in Leth- bridge will get under way ear- ly hi the fall of Wo are delighted to read that the Lethbridge Public School Board is going to spend at least on TV equip- ment. Our schools need aU the modern equipment that wo can give them. Now that our trustees have extra money to spend could they please attend to some of the basic needs nf our chil- dren? Where our children go to school, [uo and sometimes three children have to share one math book and wo under- ftantl that ft similar situation K .x 3 s i s in other Lcthbridga schools. We know that class loads ara Increasing, although classes- arc now called groups wluch is still no excuse for having 40 or more children jammed into one classroom or area Hiring extra teachers would be of tre- mendous help to our schools and would give our children a better chance to get a good education. PARENT AND TAXPAYER. Lethbridga. The LetMnridcie Herald 504 7th St. S., Lethbridge, Alberta LETHBRIDGE HERALD CO. LTD., Proprietors and Publisher; Published 1905-1954, by Hon. W. A. BUCHANAN Second Class'Mail Registration No. 0012 Member of The Canadian Press and Ihe Canadian Daily Newspaper Publishers' Association and the Audil Bureau of Circulations CLEO W. MOWERS, Editor end Publisher THOMAS H. ADAMS, General Manager JOE BALLA WILLIAM HAY Managing Editor Associate Editor ROY F. MILES DOUGLAS K. WALKER Advertising Manager Editorial Page THE HERAID SERVES THE SOUTH" ;