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Lethbridge Herald, The (Newspaper) - January 21, 1972, Lethbridge, Alberta 4 THI LtTHIRIDCE HRALD Friday, Janunry 11, Maurice Western The old issue As the U.S. presidential election campaign gets into gear it seems likely that the central issue again, as it was in 1968, may tie the Vietnam war. Democratic hopeful, Senator Edmund Muskie, has started his cam- paign by hitting hard at President Richard Nixon's failure to get the country out of the war. Senator Muskie has implied that President Nixon is either naive or something less than honest in what he presents to the people of his coun- try regarding the war's outcome. The war has been dragging on with the understanding that the U.S. cannot completely pull out until South Viet- nam's independence is assured a goal that is being pursued through the policy of Vietnamization. Mr. Nixon has been telling his people that the Saigon government is steadily grow- ing stronger, making possible the troop reductions he has decreed. The ability of South Vietnam to remain independent is very doubtful, according to Senator Muskie. He wants the American people to pre- pare themselves for the very real possibility that the worst will happen and that everything they have invest- ed in the war the lives, the money, the time will be lost. It is neces- sary, the senator says, for the U.S. to face the truth that it is not pos- sible for any but the Vietnamese South and North to decide the pol- itical future of Vietnam. For Senator Muskie to focus on the Vietnam war as the central issue of the election has to be disquieting to President Nixon. No doubt the presi- dent was hoping to avoid this issue by creating Uie impression that he is a man of peace. To the picture of a winding down of the war he has added his bold diplomatic initiatives with China and the U.S.S.R. which have created a very favorable im- pression. But if Mr. Nixon cannot convincingly counter the thrust of Senator Muskie, he could be defeated in the same way his predecessor was. Stifling Rhodesian protest Riots by black Rhodesians in an effort to demonstrate their opposi- tion to the proposed terms of inde- pendence for Rhodesia are counter productive, as violent demonstrations nearly always are. The Pearce com- mission which has been sent out from Great Britain to investigate the ex- tent of African willingness to accept the proposals, will probably be un- impressed by these events. But Lord Pearce and his group of investiga- tors will certainly want to know why Prime Minister Ian Smith found it necessary to detain a former Rhode- sian prime minister and his daugh- ter Judy. The commission could scarcely put any interpretation on this act, other than that Mr. Smith has made a heavy handed attempt to stifle legitimate protest. The for- mer prime minister, Garfield Todd and his daughter Judy, are not only outspoken critics of the Smith re- gime, but are associated with ma- jor nationalist African parties. Two black nationalist leaders have been in detention for over a year a matter which the commission will no doubt want to discuss with Mr. Smith, too. The fact is that Prime Minister Smith shows every sign of running scared. A groundswell of opposition to acceptance of the terms is already making itself evident on a scale that he h9d not anticipated. The day of reckoning Rhodesian Africans are by" TIO means the only blacks in white-dom- inated African nations to show their mettle in recent weeks. The Ovarn'oo miners of Southwest Africa have non- plussed South Africa's Prime Min- ster Vorster by taking strike action. The conditions under which they are forced to work are deplorable by any standard, inhuman and serflike. Fur- ther, Southwest Africa is' not legally a part of South Africa although Mr. Vorster has gradually incorporated it into his system of government, UN resolutions notwithstanding. Mr. Vorster has been playing it cool, avoiding police measures to make the men return to work. He doesn't want to focus attention on a situation which could revive demands for an end to his rule over a people who should not be under South Afri- can dominance. The unprecedented strike neverthe- less, is a stark warning of things to come. The black South African, along with his fellow black Rhodesi- an, is getting the message. The days of repression, of apartheid and denial of human rights are numbered. The black African wants to hasten the day. The white Rhodesian and the white South African wants only to delay it. But the day of reckoning will come as surely as the African sun rises over the veldt. ART BUCHWALD Is Nixon peaking too soon? WASHINGTON Is President Nixon going to peak too soon? There is some concern in Washington that after Presi- dent Nixon goes to Peking and then to Moscow it will be hard for the Republi- cans to keep up interest in until elec- tion day. Not so, say the people who are program- ming the president's political campaign. The to Peking and Moscow are just wannups for the main event, which will probably take place two weeks before elec- tion day. I can now report what the Republicans have in store for their candidate. "This is Walter Cronkite speaking to you from Cape Kennedy, where final prepara- tions are being made for a space shot to the moon. The astronauts have been suited up, and they are now coming out of their dressing room to board the trailer and wait a minute! One of the men in an astronaut's suit looks like President Nixon. Mite Wallace is down there by the trailer. Mike, doesn't one of the astronauts look exactly like President "It is President Nixon, Walter. Ron Zieg- ler has just informed us that the president has decided to visit the moon personally as a gesture toward world peace." "Mike, is there any chance of speaking to the "I'll try, Walter. Mr. President, Mjf President, could you tell us why you have decided to go to the moon at this "Mike, I've always felt the president can find Out more about a situation if he goes there .himself. Now this is not to downgrade our fine astronauts who have rifjna nviurnifirviTit Tnh in moon. But I feel that if I see the moon first hand, I will be able to make better decisions as far as our space program goes, and I will also be able to report pcrf sonally to the American people as to what our position on the ntoon should be." "Mr. President, who are you taking with you on the "As you know, Mike, the Apollo spaco capsule can lake three people including myself, and everyone wanted to go. Billy Graham mado n strong case for going to the moon, as did Secretary Connally and Vice President Agnew, and I did have trouble with the Secret Service, who wanted to send 10 agents. The reporters from the White House insisted on sending a pool to cover the event. But I had to make a hard decision, a tough decision, a decision that probably no president of the United States has ever had to make be- fore. I had to choose two people to go with me, and I concluded the two who would be the most helpful are Henry Kissinger and my wife Fat." "How did you arrive at your choice, Mr. "Since the moon is considered a foreign matter, it seemed to me Henry Kissinger would be the most informed on the subject. Henry has been urging me to go to the moon and felt the climate was right after he made a secret trip there himself last May. As for Pat, ever since we first started dating, she has always expressed a great interest 'in the moon, and I believe it's important for America that the first lady accompany the president on an historic trip of this kind." "Mr. President, are there any political implications to be read in your decision to go to the moon just two weeks before election "Mike, there are always going to be people who say that everything I do has a political motive. I know they're going to accuse me of making a grandstand play, and they're going to say I'ni trying lo steal the headlines for election purposes. "But my answer to them, Mike, is that the bag of rocks I bring back from the moon will benefit all Americans, Demo- crats as well as Republicans, the old as well as the young, the poor as well as the rich, the blacks as well as the whites, the farmers in Texas, the factory workers In Michigan, our brave men overaias in the armed forces, the people who live in New York as well is the people who live hi-California. I intend to do what no other American president has done since the cre- ation. And if that's politics, let them make the most of it." (Toronto Son Newt Service) Government faced with more inflation A: The latest coet-of- jiving figures from Stat- istics Canada pose difficult eco- nomic and political problems for the government. Is the cur- rent policy working? Ought there DOW to be a change of di- rection for economic reasons and would the country support it? There is evidence of quicken- ing economic activity. The goy eminent was much heartened recently when the December report on unemployment show- ed that ibe rate, seasonally ad- justed, bad fallen from 6.6 per cent in November to 6.2 per cent by UK latest measure- ment. Apparently, massive spending and pump priming fa beginning to produce the ex- pected results. On the other hand, prices seem to be responding much more sensitively to the Benson- tang policies than does em- ployment. Despite the slack in the economy, with peo- ple listed as unemployed, wt seem to have bought a margin- al Improvement in the job sit- uation, seasonally rated, at the cost of the largest advance of the decade (.7 per cent) in the consumer price index. As Mr. Benson once warned, in relation to unempoloyment figures, statistics for any single month may b e misleading: fluctuations due to particular may disguise a general trend. No doubt, this is also true of price movements, which have been largely influenced in the latest returns by the higher costs of imported vegetables. But the long term trend is also disturbing. The prime min- ister, interviewed Dec. 28 by Tom Gould, noted that the gov- ernment moved to an expan- sionary policy in March, 1970. is almost two yean ago. Since then, it has been repeat- edly accelerated; only recently an additional million were made available for the Local Incentives Program. By now, (here should be plenty of steam "It's Time for You to Get m the economy, especially at a Nixon boom appears to be de- veloping in the United States. But, m fact, although more people are at work (as they must be with an expanding pop- the jobless total is down by a mere as com- pared to last year. We now find, however, that the all Items price index advanced by five per cent In 12 months. It may be reoallel for purposes of com- parison that consumer prices were moving upward at the rate of about 5W, per cent in the first half of 1969, when the prices and incomes commission began its work with a man- date from a much-concerned government. There nay not, at the mo- ment, be the inflationary psy- chology, which was so trouble- some at that time. It could, however, develop very rapidly if people begin to read the mes- sage of the consumer index. For, with the dollar losing value at this rate, there is a natural tendency for both uni- ons and business to seek offsets to expected lags in larger de- mands on the economy. Bryce Macfcasey recently expressed optimism about the prospects for labor settlements in 1972; he may, however, have been premature, if the current fig- ures lead to a revision of cal- culations and insistence on wage increases large enough to compensate for expected infla- tion. Mr. Trudeau, in the same In- terview, observed, "The whole idea of redistributing wealth so that there be greater opportun- ity for all has been the hall- mark of this government." Inflation certainly involves redistribution of wealth but, as the prime minister has empha- sized on many other occasions, it is the poor and the weak who suffer from an inflationary surge. The difficulty for the govern- then, according to some econo- mic management depends on timing. Fiscal and monetary changes do exert a strong in- fluence on prices and employ- ment. Unfortunately, there may be i very long time lag. To make matters It is unpredictable. The effect of pol- icy decisions DOW may become apparent only 12 or IS months in the future. In fact, the gov- ernment has been mpch criti- cized because it waited too long before adopting 4erioui anti-inflationary policies and then, according to some econo- mists, kept them In force when it ought to have been shifting to a more expansionary course. In his somewhat academic discussion on the December show, Mr. Trudeau was aaked if he would do the same thing again; that is elect to fight in- flation. "I he said, "I would take the same line of conduct." He added the opinion that, in these circumstances, there would be a better pros- pect of co-operation from groups which did not respond on the last occasion. The latest returns from the price front suggest that the problem is becoming less and less academic. It has been quite generally expected that inflation would become more difficult in 1972, as a result of the huge injec- tions of purchasing power into the economy and the govern- ment's exhortations for greater consumer spending. But the new price surge appears to be de- veloping earlier than most people assumed and before much headway has been made in bringing unemploy m e n t down to reasonably satisfactory levels. It would be difficult political- ly to alter course in what is expected to be an election year. On the other hand, there may be a strong economic case for acting now to prevent inflation from breaking out of control later in 1972. The choice is dif- ficult but, if the apparent trend in the last report from Statis- tics Canada is confirmed by later returns, the government will be risking a good deal if it defers decisions or nates economics to other con- siderations in what may be a critical period. (Herald Ottawa Bureau) Peter Desbarats Will the proposed 'screening agency' succeed? (Seventh In a series) QTTAWA In 1966, Waller Gordon first suggested the idea of a federal agency to in- spect and regulate monopolis- tic corporations in Canada "where so many of our indus- tries are dominated by one or more large companies which, in turn, are controlled by for- eign parent corporations." In 1968, the Watkins task force recommended the cre- ation of "a special agency to co-ordinate policies with re- spect to multi-national enter- prise." In 1970, a special committee of the House of Commons pro- posed the establishment of a "Canadian ownership and con- trol bureau." In 1971, a cabinet task force, according to the version of the Gray report published in the Canadian forum last month, decided that a "screening pro- cess" is "the most promising policy alternative" open to Canada. Looking back over the long debate on foreign investment, it can now be seen that the idea of a federal agency to regulate foreign investment has been a continuing theme of growing importance. It is believed to be one of the cen- tral pillars of the policy on for- eign investment which Ottawa; is expected to announce in a matter of weeks. The decision is one of his- toric importance. It will be the first time that Canada has attempted to formulate and implement a comprehensive policy on foreign investment and ownership. But no one expects it to be a conclusive answer to the prob- lem. In fact, the initial announcement will probably raise more questions than it answers. The most difficult question one which is close- ly related to the question of foreign investment will con- cern the kinds of industrial so- ciety that Canada wants to achieve. Prime Minister Trudeau re- ferred briefly to this in his television interview recently when he said that the main concern of "the next election and the next decade, I'm sure, will be more on problems of industrial growth and manage- ment of our resources" in rela- tion to "the future areas for the industrial society." He also Indicated the way In which the new policy will be presented to (lie electorate this year. It will be economic na- tionalism but of a painless, profitable variety. "I think this country has reached a trade-off situation where it can pick and he said, "and where it can be- come more economically in- dependent without becoming poorer." Recent Interviews with Ca- nadians who have been deeply involved in the debute about foreign investment over the past decade reveal that there are wide differences of opinion as to whether this is possible and whether the projected screening agency can do it. The opinions range from utter pessimism, found at the ex- treme right and left of the po- litical spectrum, to guarded optimism at the centre. The extreme reaction on the left was voiced by Stephen Hymer, a member of the Wat- kins 1967 task force, when he predicted that the screening agency would become, inevit- ably, a vehicle to promote rath- er than control foreign invest- ment in Canada. Since his work on the task force, Hymer, originally from Montreal, has become a leading Marxian eco- nomist teaching at the New School for Social Research in New York. Despite his advocacy of a regulatory agency in his task force report, Melville Watkins, an economist at the University of Toronto, now believes that "the screening mechanism is, in a sense, a rabbit-out-of-the- hat solution." "Any problem you mention, they can say don't worry, the screening mechanism will take care of he said. letter to the editor "Indeed, you can Interpret the screening mechanism as some economists both on the left and on the right have been interpreting it for different rea- sons as a planning agency affecting the entire foreign controlled sector of 'the eco- nomy which, after all, occupies the commanding heights of the Canadian economy." This is not, in. Watkins' be- lief, the federal government's current interpretation. He anti- cipates a screening agency that will deal only with proposed foreign take-overs. "The work that Hymer did for our task force on these screen-like mechanisms in oth- er countries showed that they don't necessarily said Watkins. "You can create a screening mechanism on paper and it can employ a lot of people and lit- erally use a lot of paper it- self, shuffling things around, but its quite another thing to get any real output from the machinery." Skepticism about the practi- cal effects of the new govern- ment policy also came from Eric Kierans, former Liberal cabinet minister at Ottawa and Quebec City. "The problem of defining a new industrial policy is really the question of what we do with the old he said. "We have an industrial pol- icy and we've had one for a long time. It's been used on tariff protection, exploitatior of our natural resources and at- tachment to the American eco- nomy. "The question Is how do you get rid of it? You have all sorts of vested interests in those policies. "Government, most of all, has a vested interest because the civil servants who have been responsible for carrying out those policies don't want to admit that they're wrong. And the people who benefit from them don't want any changes in the status quo. "And before you can have an industrial policy, you have to figure out what your objectives said Kierans. "If your ob- jectives are going to be identi- cal to those of the Americans, well, that's all there is to it. "But if you take, it as a sim- ple and clear objective that you want a just society, and really mean it, then you will have a direction in which to go, and that direction will have an impact on every element of your policy." Abraham Rotstein, an eco- nomist at the University of To- ronto who was also a member of the Watkins task force, said that the creation of a screen- ing agency "will have an im- portant symbolic effect." "It will declare loud and clear, for Canadians and for the rest of the world, that we think we have a serious prob- lem and that we want to con- trol he said. Like Watkins, Hotstein is concerned that the agency will be created to deal only with new take-overs. This would be inadequate, in his opinion, un- less there were "a long-term plan to extend Its function to existing foreign owned cor- porations." Walter Gordon, the man who started it all, is anticipating a relatively modest policy from Ottawa, partly because of the difficulty of selling the concept to provincial premiers who des- perately want foreign invest- ment. He has clear ideas about what a screening agency should do. "It's not going to say no to any inflow of new he said. "If a new development came along for northern Sas- katchewan, some American mining company, for instance, and there wasn't a Canadian company that was planning to do anything of the kind, that should go ahead really without any question. "But I would expect screening agency to deal with large manufacturing concerns and to say to them why haven't you had more success in developing alternative sources of supply for your parts and components in Can- ada? We're going to let you work it out yourself but if you don't, then we have the au- thority to make you. "On the resource side, I would expect the agency to work toward more processing in Canada. We want the jobs here, not across the line. "I think we've got to do more than just have a screening said Gordon, "but as far as the agency is concerned, that's where the emphasis should lie." (Toronto Star Syndicate) Looking backward Unlimited concern Have we ever stopped to think of the many people of the world who are dying because of starvation, poverty, disease, etc? The pictures we see on television and in papers of the suffering children makes one ask himself "How could we, the healthy, withstand such condi- We should try to help these people. Our concern for them should be unlimited. Our dollars can buy much milk and other foods and drugs to help tlw starving and ill. Much money is re- quired for research to find cures for diseases. The over- abundance of products that wo grow and manufacture can bo given. Churches will collect clothing and other useful items from us distribute them among the poor. Radio stations were asking for used toys to give to the unfortunate chil- dren. All donations are greatly appreciated. By giving these donations, our country and the people of it, will be recognized. If and when a war or other disaster occurs here, other countries might help us back. MARGARET THOMPSON. Barons. So They Say We do not commit ourselves on anything without negotia- tions. We have one precondi- tion no conditions. Golda Mcir ol Is- rael. THROUGH THE HERALD 1922 What is conceded by critics everywhere to be one of the biggest super-special pro- ductions of the day will hold the screen at the Empress The- atre for four days next week, when Vitagraph's stupendous picturization of "The Son of Wallingford" will be shown. series of sugar beet extension meetings have been arranged jointly by the grow- ers' association and the sugar beet company. was announced that certain Picture Butte farmers have shipped three cars of fin- islicd cattle to California. Tlrese are the first shipments of cattle reported from this dis- Irict to California. The Lethbndge Herald 5M 7th St. S., Lethbrldge, Alberta LETHBRIDGE HERALD 10. LTD., Proprietors and Publishers Published 1905-1954, by Hon. W. A. BUCHANAN Stcond Clitt Mill Registration Ho. mil Member of Canadian Prm >ncf the Canadian Dally Newlpaoer Asioelallon and the Audit Buriau ol Circulation! CLEO W. MOWERS, Editor and Publisher THOMAS H. ADAMS, Central Manager DON PILLING WILLIAM HAY Managing editor Associate Editor ROY f- MILES DOUGLAS K. WALKER Advertising- Menanor Editorial Paji Editor "THE HERALD SERVES THE SOUTH" ;