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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - July 23, 1970, Lethbridge, Alberta THUNDERSQUALLS HIGH FORECAST FRIDAY 80 The Lethkidge Herald VOL. LXIII No. 187 LETI-IBRIDGE, ALBERTA, THURSDAY, JULY 23, 1970 fRlCB NOT OVER 10 CENTS TWO SECTIONS 20 PAGES Ottawa Moves To Head Off Recession By PETER C. NEWMAN Special To The Herald OTTAWA Ever since it took office 27 months ago, the Trudeau government has exercised its magic and its mandate in mysterious ways. Old ideas have been presented as mind-blowers; new concepts have been disguised in conservative raiments, political prior- ities have shifted overnight. But no single issue lias been more closely identified with the prime minister himself Ulan his harsh you don't like it, you can lump battle against in- flation. Yet, it now appears as if Pierre Trudeau and his ministers are about to stand this emotion charged policy on its head. By the tune Parliament opens on Oct. 5, it will have become clear that the government is quietly de- emphasizing its battle against inflation, and concentrat- ing instead on pulling Canada out of the recession into which the nation's economy has been as the result of its policies. Although government spokesmen will for a time continue to hotly deny that the fight against price and wage increases has been moved to a secondary prior- ity, the administration's main concern in the months ahead will be to head off the kind of recession Canada experienced in the early sixties, when unemployment figures reached a national average of 11 per cent. The government's change of the most important and potentially the most dangerous de- tision it has taken since assuming office in based on Pierre Elliott Trudeau's conviction that the inflation psychosis has, in fact, been broken, and that the main danger to the economy now lies in stretching the battle against high prices to the point when it be- gins to take a serious human toll in the number of people put out of work. Five Big Steps Specifically, these measures will include at least five steps, though they will be introduced as part of a gradual, sophisticated program designed not to swing the business cycle too abruptly in an upward direction: 1. The policy of using monetary "overkill" against inflationary trends is being abandoned. Instead of using harsh methods to restrict the amount of money circulating in the econ- omy, the Bank of Canada plans to increase the nation's money supply significantly over the next few months, making personal and business loans easier to get. (The substantial 18.3 per cent on an annual basis money supply increase by the Bank of Canada during June was primarily a response to the unpegging of the dollar, but it is also a first sign of this expansionary 2. On the fiscal side, no large-scale income tax cut is in a 1971 budgetary de- ficit looks likely. But other ways will be found to pump more directly to the people who have been hurt most by the current recession. This will move Labor Minister Bryce Mac- kasey's white paper on unemployment insurance (which will have the effect of boosting the maximum payment to the unemployed from to into a top priority position in the government's fall legislative roster. At the same time, the regional development programs of Jean Marchand will receive a significant boost in treas- ury board allocations, and Health and Welfare Minister John Munro's plan to revamp both the family allow- ance and old age pension schemes to allocate more funds to those who really need it will probably, be sub- ject to early debate. 3. The function of John Young's prices and incomes commission will not be significantly altered, but the almost fanatic emphasis that cabinet ministers particularly Pierre Trudeau himself have been putting on its guidelines, will be toned down. Most Ottawa Observers now feel that the guidelines have served their main purpose of setting benchmarks against whidh price rises and wage demands can be measured. They do not envisage any situation, short of war or some unfore- seen fiscal emergency, that would require the intro- duction of mandatory guidelines, though that move was still being seriously considered a few months ago. Long-Term Solution 4. Some highly technical measures are being studied as long-term solutions to the inflation-unemploy- mcnt equation. One such device might reward higher produc- tivity through tax incentives, so that workers who prc- duce more would get higher take-home pay. Another i long-term possibility being investigated is a Swedish- i style tax on excess incomes and profits, which would dampen inflation waves of the future by penalizing both workers and corporations who increase their earnings in any given year beyond a predetermined percentage. 5. Still further in the future is the possibility that the federal government may eventually move to upset the mechanism which now exists for allocating the dividends of economic growth. There is a growing feel- ing among some senior Ottawa officials that the large business concerns, which exercise virtual monopolies within their industries, anct organized labor enjoy un- advantages in harvesting the benefits of economic 'prosperity. How these powerful bargaining units might ,be broken up is not clear. Any such move would neces- ;S3jily involve some form of enforced labor and man- iagement arbitration, resulting in an all-out struggle be- tween the sanctions of the federal government and the two most powerful sectors of the economy. All of the available indicators show that Canada's economic growth is currently at a virtual standstill. So the problem from now on will not be how to slow it down, but how to revive it in a sensible, gradual way that, will allow more jobs to be created without re- the flames of inflation. Tomorrow: Is there a depression coming? HIT THE TRACK Holly Walgenbach, driving the Russ and Eleanor Sedger rig of Estevan, Sask, gets the jump on the tee Price rig of Calgary in Wednesday's second heat at the tethbridge track. -The third rig, Hi- Stana'ard Charlois, was the winner after Price took a one- second penalty. The chuckwagons wind up their portion of Whoop-Up Days action tonighl. Attendance Mark Within Range With Whoop-Up Days half over and attendance only a few hundred down from the 1866 record, exhibition manager Andy Andrews says he expects "to give the record a good try" this year. Tlie last three days of the fair, particularly Friday and: Saturday, have always been best for attendants, and the weather office reports that "chances are good" the city is in for sunny skies and 80-de- gree temperatures the rest of the week. Some people took in the fair Wednesday, a bit short of last year's figure. However, to break the record mark it won't even be necessary to break daily attendance records. The final grandstand show had good attendance, with Kent College o Shootings Criticized AKRON, Ohio (AP) The Akron Beach Journal says an FBI report on the May 4 shoot- ing deaths of four students at Kent State University has con- cluded that the shootings were "not necessary and not in order." The newspaper says in a copyright story that FBI agents have concluded that members of the Ohio National Guard were not.surrounded by demon- strators, had not run out of tear gas and could have controlled the situation without shooting. More than 100 FBI agents in- vestigated the May 4 shootings, which came as g u a r d s m e n moved to break up a crowd of demonstrators. people attending many of them on rain checks from the washed out Tuesday perform- ance. RODEO MOVES IN Tonight chuckwagon races will start at 7 o'clock and the rodeo events will replace the Grandstand Show, starting about 8 p.m. Cowboys will be competing for several thousand dollars in prize money for the three-day event. Pari mutuels did landslide business Wednesday. Bettors placed on the horses, about more than Tues- day. Racing continues through the fair. This evening at the Youth-a- rama, The Point of Interest, a folk-pop staging group, and Shinto, a rock group are among the entertainers. Adults are welcome along with the youth. The casino continues this eve- ning, with its many gambling games offering the' chance to get rich quick, with 25 cent to and table limits. Water Wonderland is proving to be one of the most-visited displays, as it offers a visual explanation of many aspects of southern Alberta agriculture and particularly how irrigation systems work. W.oodJiuffatd National Part fcta Edmonton t'.., >r ''I1'- Red'Deer Lethbridge 200" Medicine Haf t Miles B.C. Labor Hails Pact VICTORIA (CP) A blueprint for non-compulsory settlement of British Columbia's three-month construc- tion industry dispute was hammered out Wednesday, and labor immediately hailed the agreement as a vie- FIRE THREATENS RARE WHOOPING CRANES Rare Big Cranes In Fire Path Exhibition Program THURSDAY races House en- tertainment FRIDAY show House 12 Casino pari-mu- tuels of livestock Champions fashion show House enter- tainment SATURDAY 12 Casino pari-mu- tuels House enter- tainment 0.00 Bar 01 Gold and Kinsmen car draw. Seen and Heard ABOUT TOWN WHOOP UP Days celebra- tions given a big boost by Valerie Duncan as she presented her husband Mau- rice with an eight-pound 10- ounce baby boy "just for the occasion and so he could win a few bets he'd made that it would be a cowboy" Brent Eempcl declining El- vina Dunn's offer to share sunburn lotion on the grounds that "I do a slow bum" Attendance pro- moter Paul Rusznak offering a panhandling youngster 50 cents only if he would attend the commercial fashion show at the Coffee House. CALGARY (CP) About 110 Canadian Forces troops were sent today to Wood Buffalo Na- tional Park where a forest fire is advancing on the nesting grounds of the rare whooping cranes. Early reports indicate about acres burning in nine fires in the park, which strad- dles the Alberta-Northwest Ter- ritories border. Five of the fires were out of control. There was no early indication of how large a fire was advanc- ing on the nesting grounds or its location. "The fire is rapidly approach- ing their a- parks branch spokesman said. "We have a critical situation Ths nesting grounds are in a smaller portion of the square-mile park jutting into the N.W.T. near Fort Smith, about 450 miles north of Edmon- ton. A biologist from the Canadian Wildlife Service, sent by Dr. A. H. Macpherson of Edmonton, CWS western region director, was en route to the area. Dr. Macpherson said 50 to 60 adult birds are in the park, plus yearling young and an unknown number hatched this summer. tory i yer management and the provincial gov- ernment. TERMS OUTLINED Labor Minister Leslie Peter- son, six construction unions and the Construction Labor Rela- tions Association, which bar- gains for 593 contractors, met for eight hours and then signed a joint statement of agreement that included the follow ing terms: unions agree to recom- mend to then- members that they return to work no later than Monday at 8 a.m., and the CLRA undertake to resume nor- mal operations of the construc- tion industry; dispute over wages, which has led to a tie-up of con- struction since mid-April, is to be submitted to a third party to be mutually selected by the CLHA and the unions; the two sides cannot agree on a mediator within three days, deputy Labor Minis- ter William Sands will be the mediator; recommendations of the mediator shall be submitted to both sides within seven days of his appointment, and the recom- mendations will, then go to union membership and CLRA employ- ers; .before the B.C. Mediation Commission, ordered last Saturday by the provincial cabinet to bring a compulsory end to the dispute but defied by most construction unions, are postponed indefinitely. They will not be reinstated "except on the recommendation of the minister of labor after consultation with the parties." COMPULSION GONE Lome Kobson of the carpen- ters union, spokesman for the union delegates taking part in Wednesday's talks, said: "The principal feature is 'lie lifting of the compulsion on us. On that basis, we find this prop- osition acceptable. Our commit- tee is recommending this pro- posal to the memberships of the unions and we will be holding meetings of all locals as quickly as nossible." C. J. Connaghan, president of CLRA said: "I can say that the contrac- tors endorse the position out- lined by the minister, and we will adhere to the agreement made today. We hope this agreement will allow us to make collective bargaining cov- ering the next two years of whatever periods are involved." Mr. a'news con- ference, was asked if the agree- ment to call off compulsory arbitration had come because of union defiance of the cabi- net's back-to-work order. "Not at he said. "This is a postponement of the proceed- ings fof an indefinite period with a hope that they don't have to be reinstated. I would hope the procedures we have agreed to today will settle the dispute and the order won't have to be operative. TNT Detonated MEDICINE HAT (CP) One million pounds of TNT ex- ploded today cnver the rolling prairie of the defence research establishment. A hemisperical, 27-foot-di- British MPs Run For Cover As Smoke Bombs Hurled LONDON (CP) A spectator in the House of Commons hurled smoke bombs on the floor of the chamber while MPs were in debate today. The bombs exploded in dense of smoke with a sound like fire crackers. MPs dashed out of the cham- ber amid the swirling smoke. A man shouted unintelligibly from the gallery after the explo- sions. Attendant helped r.? -old Dr. Horace King, Speaker of Uie House, from his dais. The first explosion came near the opposition front bench. Bar- bara Castle, former Labor cabi- net minister, was one of the members who jumped clear from the flash and dashed from the chamber. The Commons temporarily suspended its session. Smoke rolled upward into the press gallery, forcing two dozen reporters to evacuate and bring- ing on fits of coughing. Firemen ran into Ihe chamber within minutes but there ap- peared to be no fire, only the heavy, irritating smoke surging around in the ancient building, meter charge was detonated on schedule at 11 am. mst in a remote section cf the rar.'ge 26 miles northwest cf the city. It was the third 500-ton blast since 1964 at the research esab- lishment and sent a cloud of grey smoke billowing almost 10.000 feet into the air. Purpose of the blast was to study its effects on various pieces of military and civilian equipment. It was photographed exten- sively and minutes after the ex- plosion 13 United States astro- nauts were taken into the area to examine the 200-foot crater. They studied the crater for possible clues to formation of similar markings en the mon. Arab Army Ready To Fight Again To Build Plane LONDON (Reuters) Britain has decided to go ahead with West Germany in developing a swing-wing, multi-role warplane despite hesitation by Italy in .joining the project, parliament was told Wednesday, CAIRO (Reuters) President Gamal Abdel Nasser said to- night the Egyptian army now is ready to fight again, and its re- building had. been.achieved in record time with Soviet aid. Nasser said in a nationwide. broadcast that the Egyptian army now is fighting a battle of special against Israeli air supremacy "which the Israelis have achieved thanks to American aid." Nasser said the Israelis some- times have launched tons cf bombs a day at Egyptian positions. Nasser also declared that Egypt approves and accepts Ihe new U.S. peace proposal en the Middle East, but "we don't ex- pect it to achieve any results because of Israel's attitude and its follishness." ISRAELI PLAN TEL AVIV Foreign Minister Abba Eban outlined today an Israeli plan for peace with Arabs including an international conference ou the Arab refugee problem, an open border with Jordan and unconditional negotiations. But he again rejected the idea of a limited ceasefire contained in an American peace plan and reported to have been accepted by Egypt, describing it as "a phase of war." 'OK! Which one of you humming Star Spangled ;