Lethbridge Herald, The (Newspaper) - January 4, 1975, Lethbridge, Alberta
Kissinger warning blunt ultimatum to Mideast oil barons Uy PAUL WHITELAW Heriild Washington Bureau WASHINGTON Henry Kissinger, the U.S. secretary of state, is fond of likening Middle East-diplomacy to a mine field and warning par- ticipants how carefully they must tread. Gut in an unusual- ly frank interview published Friday, he has put that cau- tion aside and bluntly presented the Arabs with what amounts to an ul- timatum. Dr. Kissinger, in an inter- view with Business Week magazine, has warned that military intervention cannot be ruled out if the industrial world suffers "strangulation" from another oil embargo. Although the secretary has chosen his words carefully, the plain meaning of his state- ment is that the United States is prepared to move in troops if the Arab states mount an oil-supply cutoff that seriously threatens bankruptcy of the West. The White House has stated that Dr. Kissinger's remarks were "a highly qualified answer to a hypothetical situation." But that dis- claimer by presidential press secretary Ron Nessen may have been made ritualistically for the record because his words appeared to be as carefully calibrated as those of Dr. Kissinger himself. Indeed, when asked whether President Ford agreed or dis- agreed with his secretary of state, Mr. .Nessen replied cryptically: "The president has nothing to add." Despite the statement by the White House, the fact remains that powerful of- ficials at Dr. Kissinger's level do'not normally indulge in public speculation about hypothetical situations par- ticularly when the subject is as volatile as Middle East politics. Adding to the significance accorded the interview in the diplomatic community here is the decision of the state department to issue a transcript of the secretary's remarks as a press release, evidently to ensure dissemina- tion will beyond the normal readership of Business Week. In the Business Week inter- view, conducted just before Christmas, the secretary draws a careful distinction between the American approach to oil prices and the question of an embargo. Commentary "I don't anticipate an oil embargo in the absence of is how Dr. Kissinger assesses the short-term prospect of a supply cutoff arising. "I'm not even sure of an oil embargo in the event of a war." Then he adds: "It (an em- bargo) now would be a much more serious decision than it was the last time." When the magazine's editors pressed' him on the likelihood of U.S. military intervention, Dr. Kissinger ruled it out as a way to force down high prices. But then the secretary adds: "I am not saying that there's no circumstance where we would not use force. But it is one thing to use it in a dispute over price it's another thing to use it where there is some actual strangulation of the in- dustrialized world." Dr. Kissinger had an oppor- tunity to tone down his remarks when he spoke with reporters Thursday night upon return from a brief vacation in Puerto Rico. But he stood by his earlier statements. Questioned by reporters who had been handed the state department transcript of the interview in advance of publication, he replied: "For oil prices, it's too dangerous. I have said repeatedly it would not come to that point, and that the oil problem would be d.ealt with by other methods.. However, he reiterated that he was not saying "there's no circumstance where we would not use force." The Business Week inter- view appears to reflect a renewed confidence by the Ford administration in its ability to lead the Western nations in overcoming the problems presented by the un- certain and high-cost Middle East oil supply. But the secretary's remarks, when read in the foreign offices of Europe's capitals, are hardly likely to create feelings of increased amity. At several points in the interview, Dr. Kissinger speaks of European leaders with a boldness bordering on contempt and an attitude that could easily be seen as boast- ful or overbearing. The secretary of state has never been accused of a lack of pragmatism by either his enemies or admirers, and it shows through once again in the interview. He disavows that he had ever sought a quick reduction of world oil prices despite a tough speech to that effect at the United Nations in September. Dr. Kissinger explains that too much U.S. pressure to br- ing down prices might instead bring down the friendly regimes in Iran and Saudi Arabia. "That is too high a price to pay even for an im- mediate reduction in oil he states. Still, the secretary of state couples that conciliatory statement with a warning: "A country of the magnitude of the United States is never without political recourse. Certain countries will have to think twice about raising their price because it would certainly in- volve some political costs. Two mysteries surround King diaries By ROBERT McKEOWN Ottawa Editor, Weekend Magazine A double mystery shrouds the diaries of Prime Minister Mackenzie King which were made public at the New Year on the basis of the 30-year rule govern- ing the release of state papers. The first concerns the fact that the diaries have been made available for research purposes to the end of 1944, despite the direct instruction in King's will that they were to be destroyed. The second mystery, even more intriguing, relates to a bootleg copy of the diary which has been held privately in Toronto for more than 15 years. It was sold by a member of the public service for to a representative of the Toronto Telegram, a newspaper which has since ceased publication. A comparison made on Jan. 2 of excerpts from the bootleg diary and the original in the Public Archives in Ottawa, left no doubt that the bootleg copy was an authentic document. It is not known whether other copies of the diary may also have been sold. Seven weeks of the original diaries during 1945, from Nov. 10 to Dec. 31, were missing when King's literary executors examined the documents following his death. The missing dates coincided with part of the period in which the exposures of Soviet espionage in Canada by Igor Gouzenko, the former embassy cipher clerk, were being made to the government. Gap unexplained The King literary executors were at a loss to unders- tand the reason for this single gap in some 57 years of diaries. King was fastidious to the point of distraction in everything he did. It was unthinkable that he should have neglected his daily entries for the three weeks or, worse, have mislaid one or more of his notebooks. The existence of the bootleg diary became known when a public servant connected with the making of microfilms and photostats at the Public Archives, approached a member of the Parliamentary Press Gallery and offered to sell the diaries to his Montreal newspaper for The newspaper declined. He next approached a representative of the Toronto Telegram who informed his office of the proposition. After a period of negotiation during which samples of the diary were examined, the two parties agreed on a price of The money was paid in installments through the main branch of. the Bank of Montreal in Ot- tawa. But the transaction was to turn into a loss for the .Telegram. The newspaper took legal direction and was advised against publishing either excerpts or articles from the diaries. Presumably the bulky documents, long-forgotten, are lying in a filing cabinet somewhere in Toronto. The former Telegram representative had almost forgotten the episode when he had a visit from two members of the RCMP about 18 months ago. He related that they said they knew the whole story and were not wanting to recover the diaries. They merely wanted confirmation of the name of the man who had sold them. The Telegram man said they told him tne purpose of the inquiry was to learn if the diaries had also got into the hands of Soviet agents. The problem concerning the release of the Mackenzie King diaries has caused much more trauma for King's literary executors than the knowledge of the existence of the bootleg copy. "We have agonized over said Dr. Wilfred Smith, dominion archivist and one of the four executors. The other three are longtime King aide former cabinet minister, the Hon. J. W. Pickersgill; Gordon Robert- son, until recently clerk of the Privy Council; and Dr. Kaye Lamb, former dominion archivist now retired in Vancouver. Dilemma obvious Their dilemma is obvious in light of this clause in the King will: 10.1 direct my Literary Executors to destroy all my diaries except those parts which I have indicated are and shall be available for publication or use. On the contrary the diaries have been opened for research purposes to Dec. 31, 1944. Also, members of the public wishing to read King at their leisure may buy complete sets for the years from 1913 to 1931 from the University of Toronto Press for Whether or not this was what Mackenzie King intended, the literary executors undoubtedly have strong public support against destroying these fasci- nating documents. When the will was made public in 1950, various statements were made against destruc- tion. When King was in retirement it was learned that he intended to have the diaries destroyed. Dr. Lamb visited him at Laurier House to try to persuade him to relent, according to Dr. Smith. The Lethbrtdge Herald LXVIII-19 LETHBRIDGE, ALBERTA, SATURDAY, JANUARY 4, 1975 20 Cents Ford told economy to get worse Battle rages for capital SAIGON (AP) North Vietnamese infantrymen and tanks thrust into the streets of Phuoc Binh today and South Vietnamese military sources said they feared parts of the city, including the govern- ment command bunker, had been overrun. Radio contact with the bunker was lost shortly after the province chief and com- mander of the gar- rison radioed that North Viet- namese troops were so close to his headquarters that he and his staff would have to retreat. A short time later the radio went dead, military sources said. Phuoc Binh, a city of about persons, is the last re- maining government foothold in Phuoc Long province, Oil Sale ban lifted BEIRUT (AP) Libya has quietly removed its ban on oil exports to the United States to help oftset a drastic drop in its foreign sales, the Middle East Economic Survey reported to- day. In addition, Libya and two other major Mediterranean oil producers, Iraq and Algeria, have slightly lowered their prices to meet competi- tion from the Persian Gulf, the Survey said. The authoritative oil journal said the Libyan decision was not announced publicly, but in- ternational Oil companies dealing with Libya have been informed they are free to resume shipments to the United States and "related After most Arab oil states lifted their embargo against the U.S. last March, Libya continued its ban on U.S. shipments. which borders the Cambodian border and has been the object of a Communist offensive since. Dec. 14. Various South Vietnamese military and Western sources denied tonight that the city had been abandoned and was in Communist hands. The chief of staff of the 3rd Military Region, which includes Phuoc Binh, said government forces were still holding the town at dusk. "I have no' information on Phuoc Binh said a highly-placed Western official who has kept a close watch on the fighting. North Vietnamese gunners began shelling Phuoc Binh shortly before dawn and then Communist troops launched a second wave of ground assaults, breaching the city's perimeter. A day-long see- saw battle followed, military sources said. Earlier, the Saigon military command said in a commu- nique that South Vietnamese troops, backed by air strikes, had driven back North Viet- namese assaults Friday night and for a time had cleared the city of North Vietnamese troops. Lost and found Gerard McGrath of Sydney, N.S., had his car forced off the road by a snow plow during Thurs- day's snowstorm that dumped 14 inches of snow on Cape Breton. Mr. McGrath had to leave his car on the side of the road, but when he returned to get his car that night he found it swallowed up by a gigantic snowdrift. At last report he was still digging. This Weekend INNOCENTS The Bachman-Turner Overdrive: four young Canadian musicians steer their way through the drug and groupie littered perils of rock music. Weekend Page 2 SCHOOL RE-OPENS Classes went well Friday when school re- opened at Wilson Junior High School in tem- porary classrooms to replace those that were destroyed in a fire Dec. 9. Page 15 RESOLUTIONS Are New Year's resolutions out of vogue? An un-scientltic survey of local women indicates they lust may be. Page 18 60 Pages Classified........24-28 Comics............20 ....15-17 Spying inquiry expected 55U Wo kidding! You were a close friend of .1 .21 ...6 ..3 Theatres... Travel..... TV........ Weather LOW TONIGHT 20; HIGH SUN. 35; CLOUDY PERIODS. WASHINGTON (AP) President Ford's advisers are telling him the worst is yet to come in the struggle with economic recession in the United States. The gloomy economic fore- cast is spurring talk of tax cuts this year. It was against this backdrop that Ford called his top eco- nomic advisers to the White House today for another in a series of meetings to prepare for his Jan. 20 State of the Un- ion message. In advance of today's session, White House sources reported that Ford has been told by his advisers to brace himself for more economic bad news in the months ahead. The labor department an- nounced Friday that the U.S. unemployment rate climbed to 7.1 per cent in December from 6.5 per cent in November as 6.5 million Americans were unable to find jobs. It was the biggest monthly jump in more than 14 years. Total employment dropped from November to De- cember, to about 85.2 million. .Two hours later, White House press secretary Ron Nessen said that "The decline in productivity that is now go- ing on means that the country must expect further increases in unemployment during the period immediately ahead." Under questioning by reporters, Nessen added that Ford has been told that un- employment is likely to reach eight per cent within the next several months. Some administration sources said Ford's economic advisers had concluded that a tax cut of at least billion is necessary to pull the U.S. out of recession, an average an- nual savings of per household. Nessen said Ford had told his senior advisers to quit talking about possible economic moves, and he in- dicated Ford will be cautious about final decisions on the economy. He reported that presiden- tial aides are quoting Thomas Jefferson's 1792 advice to George Washington: "Delay is preferable to error." In other economic develop- ments Friday: Federal Reserve Board continued its easier- credit policy by lowering the discount rate at six of its regional banks by one-half point to 7.25 per cent. The dis- count rate is what is charged on money loaned to commer- cial banks. Pipeline agreement reached TORONTO (CP) Energy- Minister Donald Macdonald said Friday he has worked out a financial plan with Inter- provincial Pipe Line Ltd. for construction of an oil pipeline to Montreal from Sarnia, Ont.. He made the disclosure fol- lowing a three-hour meeting with Interprovincial officials and said the "very specific document" would be discuss- ed when the federal cabinet meets Jan. 13. He would not give details. Mr. Macdonald said in an in- terview that implicit in the plan is federal government financial backing should there be a shortage of oil supplies from Western Canada. Interprovincial officials have asked the government for financial guarantees before it starts construction of the 520-mile Sarnia-Montreal line. Interprovincial says it fears the pipeline will be unecono- mical if oil supplies fall below barrels a day. Seen and heard About town Doris Michaelis of Milk ,River wondering what her belated Christmas present would be after hearing from her vacationing son Terry, that it is cheaper to shop in Milk River and Lethbridge than the markets of Morocco. WASHINGTON (AP) A report on alleged spying in the United States by the Central Intelligence Agency leaves open enough questions to require additional investigation, probably by a special commission, high ad- ministration officials say. Disclosure that President Ford is expected to appoint a top-level committee came as a key figure in the inquiry ar- rived in Washington. Games torch potential 'death-trap' OTTAWA (CP) Plans to send a flaming six-foot-high torch across the country on a flat-bed truck to promote the Canada Winter Games have had to be modified because of a safety hazard, a health de- partment official said Friday. Denis Rothier of Sport Can- ada said tests on the propane- fired torch proved that it is a potential "death-trap." Origi- nally, Sport Canada planned to send the truck across the country with the torch ablaze to promote the Games in Lethbridge, Feb. 11-23. But the tests showed poten- tial problems in regulating the flame which "scared the hell out of the official said. As a result, the large torch is to be lit only during special ceremonies at different cen- tres across the country, he said. The torch is to be lit Mon- day by Health Minister Marc Lalonde from the centennial flame at the Parliament Buildings'. It then travels to the Atlan- tic provinces where it will be- gin its cross-country trip. After the truck arrives in Vic- toria, the torch is to be flown north to Whiteborse and Yel- lowknife, he said. The torch will then be flown to Lethbridge in time for the start of the Games Feb. 11. Cost of the month-long promo- tional tour is not known.