Lethbridge Herald, The (Newspaper) - December 27, 1973, Lethbridge, Alberta
The Lethbrukje Herald VOL. LXVII 13 THURSDAY. DECEMBER 1973 36 Pages 10 Cents Egypt warns troops ready for fighting BILL GROENEN'phplO Been and gone Santa's been and gone for another leaving in his wake a multitude of happy boys and girls. Trevor of 2216 15th St. looks as if the long the anticipation and finally the excitement of Christmas morning has taken its leaving him with heavy eyelids and a lot of new toys to dream about. CAIRO Egypt has warned it is prepared for another round of fighting if Israel does not withdraw from all occupied Arab territories. The warning was made by War Minister Ahmed Ismail in a speech at a meeting here of Egyptian emigrants in the United States and Australia. Gen. David the Israeli that Israeli troops will remain on full alert. Ismail said Wednesday are fully prepared to deal a second and third blow to Israel if it does not withdraw from all occupied Arab The war minister's warning Mormon leader Lee dead at 74 SALT LAKE Utah Harold B. president of the 3.3-million member Mormon church for the last 18 died Wednesday. Lee entered a hospital for a physical examination Wednes- day afternoon and died about six hours later from lung and cardiac failure. His wife and family members were at his bedside when the head of the Church of Jesus Christ of Latter-day Saints died. regarded by Mormons as a direct communicator with had taken office July following the death of Joseph Fielding a grand-nephew of church founder Joseph Smith. Joseph Fielding Smith had served 2Vz years after succeeding David who headed the church for nearly two decades. A successor to Lee will be chosen by the church's Coun- cil of the Twelve possibly as early as next week. If tradition is the next president will be Spencer who heads the council. Belfast braces for 'air raid' BELFAST Anti- aircraft guns have been plac- ed at strategic points around Belfast in case of an aerial bombing raid by republican British army sources said today. The weapons are general purpose machine-guns with a range of about one mile and army gun crews are ready to shoot down any hostile air- craft over the city. The sources said the guns were installed soon after the Seen and heard About town ONE-YEAR-OLD Susan Gray managing to bare her mother's Christmas tree of icicles to the top of her reach. Da vie Hackson attempting to flood his backyard for a skating rink by filling a bucket at a time from the kitchen sink. spectacular escape by helicop- ter from a Dublin prison last October of Seamus Twomey and two other leading Irish Republican Army men. we had to take another look at security pre- cautions here after the Dublin a senior officer said. If the I.R.A. can hijack an aircraft in Northern reputed chief of staff of the provisional said in a West German maga- zine interview recently that he was planning ac- from the air. The army has been equipped with the general purpose ma- chine-guns since it came to keep the peace in Northern Ireland more than four years ago. But the officer only recently started mounting them for possible use in the event of an air at- tack. At the moment they are purely a precaution and we have received no intelligence that the I.R.A. is planning an air comes as Egyptian and Israeli military representatives are meeting in Geneva to discuss troop disengagement at the canal front. The Geneva Middle East conference decided during its first session to assign a military committee to discuss the separation of Arab and Israeli forces. Elazar said in Tel Aviv that Israeli forces will remain on the alert because a breakdown in the talks might lead to renewed fighting. Ismail said the Egyptian armed forces must be ready for fighting at any moment regardless of any political talks. he has five strong bridgeheads in Sinai along the canal from Port Said in the north to the Suez in the south. Pat Gray testimony disputed New York Times Service WASHINGTON A con- fidential Federal Bureau of Information report apparently contradicts the testimony of L. Patrick Gray last March that he had no knowledge of nearly 20 wiretaps that President Nixon had ordered on newsmen and officials of his administration. Following the first publish- ed report of the wiretap ef- fort. Gray told the senate judiciary which was holding hearings on his nomination to become direc- tor of the that he had made an inquiry and found record of any such a copy of the con- fidential FBI obtained by The New York in- dicates that while the bureau's acting had been advised in advance of his testimony of the by-then defunct surveillance operation. CONFINED ST. Nfld. Financier John C. charged here with fraud and breach of today failed to obtain an alteration in bail terms which confine him to Newfoundland. District Judge Myles Murray turned down an application by the chairman of Canadian Javelin Ltd. for per- mission to travel to Montreal and other parts of the mainland. Inside Classified........30-34 Comics............28 5 District............21 IS 27 Local 20 8 Markets...........29 Sports...........14-16 TV.................6 Weather............3 Youth.............24 LOW TONIGHT HIGH FRI. SNOW FLURRIES 'Congratulations...it's a Franco may assume chiefs role again MADRID Gen. Francisco Franco may reassume the role of head of government well in- formed sources said Wednesday. This emerged as a distinct possibility as speculation mounted over whom the 81- year-old chief of state will pick to succeed premier Luis Carrero assassinated in a bomb attack in Madrid six days ago. Last Franco ap- pointed the 70-year-old ad- miral as Spain's first prime minister since the 1936-39 civil relinquishing some of the powers he himself had held for more than 30 years. By taking back the role of government Franco would avoid having to choose from the dozen or so potential candidates and possibly sidestep any infighting within the the sources said. Americans just step away from gas rationing WASHINGTON United States Energy Chief William Simon announced to- day establishment of a stand- by system for gasoline ration- ing but said he still believes its actual use can be avoided. Simon said he has ordered the bureau of engraving and printing to begin printing a Venezuela makes oil news official By THE CANADIAN PRESS Venezuela made the bad news official will increase the cost of its oil after Jan. 1. The Venezuelan government announced that its oil tax reference to calculate taxes paid by foreign oil increase substantially Jan. 1. The mines and hydrocar- bons Hugo Perez la declined to say how the price will saying only the increase will be sub- stantial. He said the new price will be disclosed this week. A Venezuelan newspaper that the tax reference price may go to a barrel from the current average of a barrel. It was a barrel last January. It was bad news for eastern Canadians. Canada relies on Venezuelan oil for 45 per cent of its daily crude-oil imports of barrels. Eastern Canada uses imported oil. Earlier this the Per- sian Gulf oil-producing countries increased their listed price for oil to a barrel. Eastern buyers may pay more By THE CANADIAN PRESS The latest Arab oil price increase to a barrel from a Bounced following a meeting of Persian Gulf oil has drawn mixed Canadian reaction. Energy Minister Donald Macdonald said Monday the oil price increases might mean a 10-cent-a-gallon increase in the cost of gas- oline and heating oil east of the Ottawa Valley. He said that although the ac- tual increase won't be known until the higher priced oil begins arriving at eastern refineries in a month or initial calculations made an increase of 10 cents a a likely prospect. He forecast the likelihood of some government assistance to eastern hinting the revenue from the export tax on crude oil could be the source to finance it. He said previously that all money generated by the ex- port tax would go back to the oil-producing provinces British Columbia and Manitoba. going to have to be even if it's only a transitional assistance Mr. Macdonald said. He said financing is a major question and no decisions have been made. he in- dicated the money would not be drawn from general government revenue. RELY ON IMPORTS About 30 per cent of the nearly barrels of oil that Canada imports daily comes from Arab sources. Areas in and east of the Ot- tawa Valley rely almost ex- clusively on imported oil. The rest of the country is supplied by western largely from Alberta. Mr. Macdonald said the increases make it clear that industrialized countries can expect nothing but dramatic increases from Arab countries. just going to keep on hitting he said. He said the latest Arab oil price increases make the coming federal provincial conference critically impor- tant. It is scheduled for January. In John president of the Canadian Petroleum said he thought the Arabs were beginning to realize the real value of oil. think they're starting to get realistic to what the real value of crude oil is to the world he said. what they are saying to all of the users or consumer nations is that crude oil has a much higher value than has been reflected in the marketplace in the three-month supply of gasoline ration just in case they are and has directed his staff to make con- tact with state governments concerning rationing preparations. He said the system would not be ready for operation un- til March 1 at the earliest and that trends in gasoline supply and demand over the next six weeks would determine whether rationing is really needed. Simon said if rationing of gasoline does come the system would about billion per year and his pre- sent plans are to charge each driver for his monthly ra- tion book. Simon it would really be up to Congress to decide on financing. He said his lawyers were examining existing legislation to see if rationing could actually be put into effect without a new law to authorize it. He said their preliminary indications were that new legislation would be needed. Simon also said residual fuel oils will be diverted from parts of the country to New which is heavily dependent on imported oil. Simon also issued new esti- mates indicating that the overall oil shortage expected because of the Arab oil em- bargo may be much less than previously predicted. Instead of the earlier esti- mate .of a shortfall of 3.27 million barrels a or 16 per cent of Simon said it now is estimated that the shortfall may' reach 2.7 million barrels a or 13.6 per cent. Simon said the rationing system being developed now I looks toward a basic ration averaging about 32 to 35-' gallons of gasoline a with coupons to be distributed to every licensed driver over 18 years old. No Herald New Year's The Herald will not publish New Year's January 1st. Regular editions will resume January 2nd. Display advertisers are reminded of the following deadlines for copy. Ads to appear January must be received by Friday and for January 3rd by p.m. Friday. Ads for January 4th must be received by a.m. December 29th. Classified advertisements received by 12 December 31st will appear in the January 2nd edition. Oil hikes prompt payment query price. News By CLYDE H. FARNSWORTH New York Times Service PARIS The magnitude of recent oil increases has intensified the need for international agreements to avoid the danger of an economic collapse comparable to that of the 1930's. The fundamental as by international experts who are now deeply engaged in studying the im- is how will the higher cost of oil be paid for. The quadrupling of prices in the last year means that it will take four times as many Italian American British woolens or Japanese radios to buy the same amount of oil. But who is going to buy all these Can new markets be Will there be destructive battles for existing Or will there simply be a ballooning of Experts stress that the crisis really has little to do with the Middle East war and the brandishing of the oil weapon by the Arab nations to try to get their own way in a peace settlement. This may have accelerated the process of price but most analysts believe that sharply. higher costs for energy were inevitable anyway the outgrowth of the steady economic expansion pursued by the industrial nations since the second world war. The world has moved into a different era almost and there are tremendous problems of adjustment if the advances towards liberation arc to be maintained. Analysts believe that there is need for a tremen- dous political effort by industrial oil producer nations and the developing countries to try and resolve these problems of adjustment in a constructive way to avoid a breakdown in the world's trading system. An appeal for this kind of action was made by the United States when Secretary of State Henry Kissinger called for international collaboration to deal with energy problems while in London two weeks ago. At oil producers will increase their in- come next year by some billion on the basis of the newly announced prices for crude oil made by the Persian Gulf producers in the last three months. They cannot possibly spend all that money. Ac- cording to rough calculations by western they may buy an additional billion worth of goods and services from the industrial nations and invest the rest in financial markets. This would mean tremendous new quantities of in addition to the billions of dollars manipulated by multinational floating about in currency markets and representing a constant threat to exchange rate relationships. Perhaps an even larger is that most of the industrial countries will simply not be able to earn enough on what they produce at least in the short run to pay for the oil. So they will run into deficits in their current amounts of trade and ser- vices. Much of money will flow back in investments to the industrial so the over-all balance of payments of the industrial countries will not change that much. But the question is how far will the industrial countries be prepared to go into debt to the and how far will they be willing to see their trading accounts fall into deficit before taking nationalist protective actions of one sort or another. It is the magnitude of the sums that create the problems. Experts calculate that the higher cost of oil will mean that the industrial countries will end up with perhaps as much as billion deficit in their trade and services accounts next year. This must be seen against the surpluses that these countries have traditionally run up in the last decade or so. A 30 billion that unless markets can be enlarged. Experts envisage the possibility for a vast transfer of funds to the developing with these countries becoming the new market for the industrialized world. How would it First of if the oil producers felt generous they could undertake direct aid programs. The rich Arab states have already indicated a willingness to transfer funds to their poorer brethren. But it is dif- ficult to conceive of the oil producers giving away all or even most of their excess funds. Another possibility is that international in- stitutions float bonds in the producer nations and then distribute the funds to the poor countries. The World Bank has already done this to an extent. There could be a lot more such activity in the future.