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Lethbridge Herald, The (Newspaper) - July 19, 1973, Lethbridge, Alberta AMBIGUOUS REPLY MAY HAVE SCUTTLED CANADIAN LINE By JEFF CARRUTHERS Herald Ottawa Bureau OTTAWA Canada may made a relatively simple but costly mistake in its reply June 27 to a series of U.S. state department questions on Cana- dian policy on and circum- stances surrounding a possible Mackenzie Valley oil pipeline. As a result of the Canadian the U.S. Senate may have earlier this the stage for the U.S. using a Trans-Alaska pipeline route that Canada has vigor- ously opposed because it would involve tankers carrying oil down the west of a Mackenzie Valley, trans-Can- ada route. The June 27 reply, it now turns out, contained one answer that External Affairs Minister Mitchell Sharp' said yesterday outside the Commons was "am- biguous." The question and answer re- ferred to Canada's position re- garding ownership and control of a possible Mackenzie Valley oil or gas pipeline. answer originally sent to the U.S. referred only to a gas pipeline, but didn't say so. It stated that Canada in- tended to give Canadians the opportunity to acquire 51 per cent ownership in such a line and that Canada would ex- pect Canadian control would be maintained. Perhaps to the detriment of the Canadian alternative, many American Senators engaged in an important debate oa the planned oil pipeline across Alaska or possibly across Can- ada interpreted the answer to apply to 'an oil pipeline up the Mackenzie Valley. This interpretation, Washing- ton observers say, made the Trans-Alaska route significantly more attractive, both in terms of getting it built and in terms of ensuring future security of supply. At some point between June 27, the day the Canadian posi- tion was sent to the U.S. staus department via the American embassy in Ottawa, and July 6, the day the questions and an- swers were released to the press in Ottawa, the federal government decided to change the answer. Ottawa inserted a phrase to point out that the 51 per cent Canadian ownership comment had been made by Energy Min- ister Donald MacdonaW only in the context of a gas pipeline. A federal official Wednesday explained that in Canada, ev- eryone thinks in terms of a gas pipeline. In the United States, it is an oil pipeline that is on ev- eryone's mind. But the federal government went one large step further, in modifying its answer. It inserted tiie following: "In connection with an oil pipeline which might take U.S. oil to U.S. markets using Can- ada as a 'land bridge', it would not be its policy to require ma- jority Canadian ownership. "However, as Canadian oil becomes available it would be expected that the pipe .line would be expanded to accept such oil." This, according to federal of- ficials, was the first time Can- ada bad stated such a position explicitly and publicly. What is significant is that the proper Canadian position on Ca- nadian ownership of oil and gas pipelines in the North did not get to the Senate until early this week, at least 10 days after the change was supposedly and almost three weeks after the original answers were sent by Canada to the U.S. The modified answer actually arrived on the day before ate debate on the Trans-Alaska pipeline system (TAPS) coo- eluded in Washington. Observers in Washington Wednesday said that if the U.S. Senators had learned of Can- ada's true position several weeks earlier, the Mackenzie Valley oil pipeline could today still be a viable alternative to TAPS in the minds of many American congressmen. The LetHbtldge Herald VOL. LXVI No. 185 LETHBRIDGE, ALBERTA, THURSDAY, JULY 19, 1973 TEN CENTS TWO SECTIONS 24 PAGES Study fails to help ease West burden By GERRY BOURDEAU Canadian Press OTTAWA There is no one solution to transporta- tion problems facing Western Canada, indicates a mas- sive study released Wednesday by the Canadian tran- sport commission CTC. The seven-volume, 452-page study conducted by independent firms and university professors in Western Canada and commissioned by the CTC earlier this year, deals with a hodge-podge of transportation problems from rail rates to farm machinery deliveries. The underlying consensus in five of the reports is that Western Canada is at an economic disadvantage because of industrial isolation and smaller 'popula- tions that affect transportation rates. x The CTC said in the foreword of each study that the reports are aimed at "identification of specific transport issues" but do not necessarily "reflect the position of the commission." Over the years, Western governments have argued that it is cheaper to export raw material than finished products because of transportati-m costs. Because of this industries remain in the East. "It appears that Eastern Canadian producers make sufficient sales in the near vicinity of their dams to subsidize transport to distant markets EAST COMPETES Eastern-based plants are capable of achieving greater economies of scale at the same transport rate as to Western Canadian producers. This allows the Eastern producer to compete more effectively in Western Canadian markets, says one report compiled by three professors at the University of Alberta. One solution, says the report, is a basic "strategy for that currently or potentially possess comparative advantages in Western Canada that may be exploited by transport rate adjustments. But the by W. D. Gainer, S E. Drugge andLffc Knowles of Edmonton, warns that transport rate; Deductions by region may be a "very imprecise inejaod of attempting to stimulate regional At the fair J Attendance Monday 1973 1972 record C64) ('69) C73) ('70) C66) C71) C71) Wednesday Thursday........ Friday Saturday......... TOTALS 42.852 THURSDAY Citizens' Day p.m. Talent contest, Youngstreet Coffeehouse 8 p.m. Grandstand show: all star rodeo and chuck- wagon races midnight exhibits dose 2 a.m. Casino closes Calendar FRIDAY Youth Day a.m. Gates opei: 11 For You, Kiddies' Zoo, Livestock Display, Kaleidarts open Noon Youtharama building, midway, Casino, Beer Garden, all exhibits open. p.m. Post time, thoroughbred racing and pari-mutuel betting. Inside Classified Comics District Family Local News Markets Sports...... Entertainment TV........ 18-21 10 3, 24 16, 37 13. 14 22, 23 8, 9 6 7 Weather........2 Youth 13 LOW TONIGHT Ml, HIGH FRIDAY W HOT, DRY West assails economic gaps Long lost plaque returns Urban Affairs Minister Ron Basford presents a commemorative bronze plaque to Commons Speaker Lucien Lamoureux (cenre) end A, G. Vandelac, Gentleman Usher of the Black Rod, Wednesday in Ottawa. Partially hidden by Mr. Basford- is Senate Speaker Muriel Fergusson. The plaque, -originally set in place in the first Parliament Buildings in 1860, was believed lost in the fire of 1917. It was found recently. Watergate payoff, caverup t known to Mitchell, Dean EDMONTON (CP) The four western provinces today assailed the federal government for working hard to increase the economic gap between central Canada and the west. This has been the effect of assistance programs of the federal departmnt of industry, trade and commerce, the four provincial governments said in a joint state- ment. While the west has more than 25 per cent of Can- ada's total population, it received only eight per cent of the total value of the department's assistance pro- grams from the federal department, they said. The_t statement, released under the names of the western "-premiers, outlines what the west wants from Ottawa in the area of opportunities for economic and in- dustrial development. It forms the base for the west's case in this area in dis- cussions at the western econo- mic opportunities conference in Calgary, next'Tuesday to Thursday. The western premiers attack- ed. Canada's tariff couraging the concentration of manufacturing in' central Can- da, "with western Canada sua- agricultural producteSad other raw materials." They say that, to correct this situation, Ottawa must pursue a policy of selective tariff revi- sions designed to favor manu- facturing in western Canada. The strongest language in the 18-page statement comes in western criticism of the federal government's purchasing policy. "Western Canada demands for its industries a fair share of the business arising directly WASHINGTON (AP) Fred- erick LaRue, former Nixon campaign aide, testified today that he, former attorney-gen- eral John Mitchell and ousted White House counsel John Dean NDP support of Liberals near end VANCOUVER (CP) NDP leader David Lewis hined to- day that his party may soon cease its support of the mi- nority Liberal government. IP a speech prepared for the opening of the NDP's national convention, he said "I find it difficult to imagine being able to tolerate the Trudeau govern- ment very much longer." At one point he linked NDP support lo next week's Calgary cwtference on Western Eco- nomic Opportunities. and heard About town PAIRGOER David Van Horn asking for a three-foot long hot dog M3o Flem- ing bypassing the artists at the fair with, "My wife already knows what I look were all aware of a "grand aver-up scheme" to hide the facts behind- the Watergate wiretapping. LaRue told the Senate Water- gate committee that when he sought Mitchell's advice .in March of this year, whether to make a payment to one of the Watergate lawyers, Mit- chell knew the money was part of the cover-up.. Under questioning by Senator Daniel Inouye (Dem. Hawaii) LaRue continued to peel back, dollar by dollar, the story of th payoffs in the Watergate cover- up. LaRue also said that the 000 he took from White House and campaign funds didn't com- pletely cover bis own personal expenses in carrying cover-up cash. luouye asked LaRue what Dean knewn about the Columnist criticized SAIGON (CP) Michel Gau- vin fired some parting shots at the Hungarians and Poles to- day, then beaded home, content that he and other Canadians had done all they could to make the International Commission of Control and Supervision (IOCS) work. "I thinlt our record is a good one, in that we behaved respon- sibly and the nadian ambassador said of the six frustrating month-; that Csr- ada was a meirbsr of the IOCS "We did all we cou3d to create UK right climate." payment. "He knew it was part of a grand cover-up Inouye asked. "I think that would be a safe LaRue said. Q. Were you aware? A. Yes sir. Q. Was Mitchell aware this was part of the grand cover-up scheme? A. I would say, Senator, that that is a correct assumption. PAIDBITTMAN The payment was the last one LaRue said he made. He said he gave it to William Bittman. lawyer for Watergate conspirator E. Howard Hunt, shortly before Hunt was sen- tenced March 23 for his part in the break-in at Democratic na- tional headquarters. from the substantial expendi- ures mack by the various de. psrtments of the federal gov- ernment to purchase goods and services." The western provinces said that in the past 85 per cent of the federal government's billion annual requiremens have been satisfied by Ontario and Quebec. The statement noted that Ot- tawa has announced a policy to allow western businessmen to double the amount of goods they sell to the federal government but added: "The western provinces are of the opinion that this policy, white a move in the right dfrec- b'on, does no go far enough. "I is dear that the federal government's purchasing poli- cies have benefitted the indus- trial heart of Canada out of all proportion to that region's share of total Canadian popula- tion." A major recommendation by the provinces is that the depart- ment of industry, trade and commerce use industrial assis- tance programs to help regions like western Canada realize their "full development poten- tial." "Current programs, unfortu- nately, have been formulated without adequate concern win stimulating balanced economic development throughout 'Can- ada. then indicates, programs ad the effWst -of increas- ing' the disparity the industrial capacXief of cen- tral and western Canada." 'The provinces also recom- mended the federal government use more research and devel- opment from institutions, firms and universities in western Canada. Bank wanted VICTORIA The western premiers want more regional financial institutions and banks based out west which they can control, to counter the near-monopoly of chartered banks in central Canada.' Price freeze lifted WASHINGTON (AP) Americans are facing sig- nificantly higher food prices now that President Nixon has lifted the price freeze from food industry as part of Phase 4 anti-inflation program." Only beef remains subject to strict price ceilings, and then only until Sept. 12. Lifting the fresze from the food industry was Nixon's first move into hfe new Phase 4 wage and price controls announced Wednesday. Non-food items win remain under the provisions of the 60- day freeze announced June 13 by Nixon, until its expiration Aug. 12. At that time non-food goods will become subject to Phase 4 regulations. There will be price ceilings for gasoline, heating oil and dfe- sel fuel under Phase 4, and big business win be required to ab- sorb some of its increased costs by cutting profit margins. The president said in a state- ment: '-There is no way, with or without controls, to prevent substantial rise of food prices." "The evidence is becoming overwhelming that only if a risa of food prices is permitted now can we avoid shortages and still higher prices be said. New gov't corporation bill affects only major firms OTTAWA (CP) A new law requiring majority membership, for Canadians on boards of di- rectors and spelling out duties of directors and new rights for shareholders was introduced in the Commons Wednesday by Corporate Affairs Minister Herb Gray. The bill, which received rou- tine first reading, would affect only federally-incorporated 10 per cent of the corporations doing business in Canada. But offi- cials say they are among the country's largest, doing up to 40 per cent of all corporate busi- ness. corn- It would require those panics to include resident Cana- dians as a majority of their di- rectors. For foreign-owned requirement is even more strict: employees of the firm could not be counted in the ma- jority, nreaning more than half the directors must be outsiders. Wednesday total 20315 New crowd record set at fair A reoird-brcaking peo- ple walked through the gates at the fairgrounds Wednesday, and officials are now confident that attendance for 1973 Wboop-Up Days will top The figure rcpresenJs the highest attendance recorded for a Wednesday. Last year's at- tendance for Wednesday, also a record, was Total attendance for this year's Wbojp-Up Days now stands at Wednesday was Kiddies' Day and youngsters crowded iflto the midway. The rides were kept working near capacity for most of the afternoon. An enthusiastic crowd packed the grandstand at 10 a.m. for a show featuring the Silver Spurs dance group presented peciallv for the youngsters. The Kiddies" Zoo bad its best day so far as the children gawked at the assortment of farm-yard animals and wildlife penned there. Some even had a chance to hold squealing piglets. A warm day started turning cool as a brisk breeze stirred up the dust in late after- noon. Skydivcrs from the Cal- gary Skydivers Club bailed out at about aiming for the target in front of the exhibition office. Two were very close, but a third nearly paid an unsched- uled visit to the midway landing between a truck and a tent. The chutists will jump again Friday at p.m. Half a grandstand full of peo- ple braved a chilling wind to see the last of the pony chuck- wagon races and the Silver Spurs for the evening show. The wagered at Whoop-Up Downs Wednesday brought the total for the first three days of the meet to Two people a little better off for attending the fair were John Ully, of Foremost, who won the Jaycees daily draw, and Sharon Cox, of 738 orial Drive, Calgary, who won a 30-speed bicyde from the Kinsmen. Tonight sees the start of the all-star rodeo and cliuckwagon races in front of grand- stand. ;