Lethbridge Herald, The (Newspaper) - July 31, 1972, Lethbridge, Alberta
BUN NT FORECAST HIGH TUESDAY 70-75. The Lethktdge Herald VOL. LXV No. 195 LETHBRIDGE, ALBERTA, MONDAY, JULY 31, 1972 PRICE NOT OVER 10 CENTS TWO SECTIONS 16 PAGE] Oil industry of two minds about tax plan CALGARY (CP) The Alberta government's new oil-taxing policy contains major uncertainties which will make effective planning extremely difficult for the ex- plorations and production augment of the petroleum in- dustry, a Canadian Petroleum Association official says. Ken W. Germond, chairman of the board of direct- ore of the associations Alberta division, said ill a pre- pared statement the plan offers producers a one-time choice between paying a higher royalty on production or lax on oil reserves still in the ground but does not say what the tax rale will be. "The plan leaves wide open the question ot Mure royalty rates or mineral taxation on natural he said. The association was concerned about the effect on the provincial economy from the loss of million annually that was previously available to the industry for reinvestment. Mr. Germond expressed hope that drilling incent- ives provided in the plan will lead to discover, of major new reserves in the province, "which woul 1 benefit both Alberta and the industry." In Ihe final analysis the one-lime option would have to be assessed on an individual basis by the associa- tions's members but "considerable bolt-lightening is in- dicated by Hie 30-per-cent increase in government taxation." Mr. Germond said the association will continue communications with the government to "resolve tha many still unanswered questions relating to the plan's implementation." Stan Milner of Edmonlon said the now policy will not be loo tough on independent companies. Mr. Milner is president of the Independent Petrol- eum Association of Canada. "As a result of substantial exploration incentives in the plan the increased tax proposed will not present undue hardship to a large portion of the independent sector of the petroleum Mr. Milner said. The plan would lake an additional million a year from the industry through a combination of a higher royalties and a tax on crude oil reserves still in the ground. The plan offers a tax credit for exploratory wells and a five-year tax holiday for discovery wells. Mr. Milner said the drilling incentives will "help sus- tain the employment and other economic benefits that the people of Alberta have enjoyed as a result of pet- roleum activities." J. D. Porter, general manager of the Canadian As- sociation of Oilwell Drilling Contractors, said his group is "pleased with the incentives and believe they will, provide increased drilling in the province and Ihe sub- sequent discovery ot new oil and gas reserves." Mr. Porter said the increased drilling created by the plan will bring economic activity to service, manufact- uring and geophysical firms connected with the oil in- dustry. Walter Dingle, Alberta manager for Imperial Oil Lid., said the lax will have a large financial effect on Imperial, the largest producer in the province. like any other company, will have to evaluate all factors in our operation with this tax in mir.d." Mr. Dingle said the oil industry will not abandon its investment in the province because of Ihe increased tax but will consider the tax along with other factors when making new investments and operating marginal activities. He said Ihe over-all impact of the tax increase will depend on other variables, including new discoveries, crude oil prices, natural gas prices, exploration suc- cesses in the north sea and the far east and the political situation in the international oil industry. Mr. Dingle said it's too early to tell about the Im- pact of the exploration incentives in the Alberta plan. The big factor behind increased exploration, was the province's geological prospects. official death victory for Chou En-lai By WILLIAM L. TIYAN AP Special Correspondent. Lin Piao, who was to have been Mao Tse-tung's pol- itical heir, is officially dead. This seems to represent a victory for Premier Chou En-lai, making him China's most powerful man. The bizarre case of the spindly little man who was defence minister also suggests that Peking is more wary than ever of the Russians and more willing lhan ever lo keep open a door to the United Stales. The Chinese haven't yet told Ihe whole story. They assert that the 65-year-old Lin died Sept. 13 in an air crash in Mongolia, that he plotted Mao's death and that he wns trying lo flee "toward the Soviet Union." They do not say who was with Lin in the crash and why the plane fell. Westerners may get the. idea Lhat the Chinese shnt down lhal plane, and thus executed Lin and his supporters as surely as if by a firing sqund. The supposed victims include Lin's wife, Chun, n polillniro member, and his son, as well as the army chief of staff, Huang Yung-shong; the air force com- mnmlcr, Wu Fa-hsien; the deputy chief of Uie nrmy slnff, Chin Ilui-lso, and flic navy political commissar, Li Tso-pciiK. II look 10 months for Peking to let the story drlbblo mil, Getlii'K it. on .'lie record now indicates confidence in TWing Hint, mutters arc in hand. Tlio disclosures loavo lillle doubt Mini a big frclnr in f'mvnfall his opposition In .1 policy M-oliini; holler rclalinnx wilh Washington. British invade IRA strongholds Weekend accidents claim two One person was killed when struck by a car and another drowned In a boating accident during the weekend in southern Alberta. Beulah Standing Alone, 41, o( Standoff, was pronounced dead at the scene of an accident on Highway 3, about four miles West of Monarch shortly after 3 p.m. Saturday. RCMP identified the driver of the car as Cheryl Torock of Granum. Coroner Dr. J. .E. McTavish of Lelhbridge is undecided aboul an inquest A Medicine Hal man, Edgar Draudson, 65, drowned shortly after 8 a.m. Saturday when the fishing boat he was in over- turned and sank in Reesor Lake in Cypress Hills Provin- cial Park. Douglas Picken, of Red Cliffe, a passenger in the boat, was able to swim to shore. Mr. Draudson's body was re- covered by skindivers from Medicine Hat shortly after 1 p.m. the same day. Coroner Dr. E. G- F, Skinner of Medicine Hal is undecided iboul an inquest. LETHBRIDGE ON FILM Japanese television person- nlity tCyosen Ohashi and his wife Junko Asamo completed a filming job in Lethbridge Sunday and will now visit several other cities in Western Canada. Mr. Ohashi is host of Jhe Japanese nalional Eleven P.M. show, similar to Ihe Johnny Carson show. The film features the Nikka Yuko Centennial Garden but includes sections on other facets of Canadian life. It will be shown as two one-hour seg- ments of Mr. Ohoshi's daily program. (Set page From AP-REUTER LONDONDERRY (C F) British troops and armor occu- pied barricaded strongholds of the Irish Republican Army early today and encounlered al- most no resislance. But the IRA struck back later with bombs that killed at least seven civil- ians. Striking at 5 a.m., Brit, Ish soldiers smashed down IRA Barricades with tanks con- verted to bulldozers and took possession of Catholic areas of Londonderry, Belfast, Lurga, Armagh, Portadown, Coalisland and Dungannon. By noon, reports were coming In of bombings in Londonderry and other towns, SEIZE SYMBOLS The troops seized two symbols of IRA resistance in Londonder- city gas works and the Bogside Inn, headquarters of the IRA Provisionals. The inn was converted info a temporary command posl for the Five thousand troops in Lin- donderry and another in Belfast crushed IRA barricad- and moved into Roman Catholic areas to impose a rule of iron and guns. It was the Brilish army's most massive attempt in three years of troubles to try to bring peace to Northern Ireland. A lurtlier face-blackened troops flooded Ihrough the rain into small Ulster cilies. After three hours, Britain's minister for Northern Ireland, William Whitelaw, announced the troops "now are in occupa- tion and control throughout Northern Ireland." The elusive IRA virtually van- ished. Six gunmen were be- lieved lo have been hit by army bullets. But the main force of IRA guerrillas apparently went into hiding, or slipped acrcss the border into southern Ire- land. Catholics stayed in their homes as the troops swarmed into the "Free Derry" area of Londonderry's Bogside and Creggan estates as well as Catholic areas of Bellasl just after 4 a.m. A few shots were fired by IRA marksmen apparently left to offer token resistance. Heath to meet labor to settle dock strike LONDON (AP) Longshore- men streamed into London today as chief government min- isters studied plans for curbing Britain's labor strife in a crisis which has closed down the coun- try's major ports. Minister Heath has set ..'.p talks on the cris's with the jYades Union Congi ss, repre- senting 10 million woikers, for Tuesday. Main topic will be snarled labor relations which last week Sabotage feared in CP derailment Seen and heard About town AIRLINE employees grab- bing a Herald piclure s li o w i n g weatherman Ted Wilson releasing a weather balloon. lettering across lop of picture "Hey mommy, now that I've got a balloon, can I have some candy and leaving print on his desk Andy Thompson putting sand inlo Simon Hn's moulh on Ihe Koho Lake golf course sand green Danny Lynch re- luming from vacalion to work double shift so his buddy can have his holiday. LANG, Sask. (CP) Sabo- tage is suspected in the derail- ment of a Canadian Pacific Railway freight train early Sun- day near this south-central Sas- kalchewan community. Seventeen cars and. the four diesel locomotives were de- railed in the crash and police believe the accident occurred when the train clipped a bull- dozer which may have been partly on the railway tracks. Two trainmen in the lead lo- comotive were injured but were reported recovering after treat- ment in a hospital at Weyburn, 30 miles away. Police said they had reports that two bulldozers left by con- struction crews had been moved since Saturday, one of them so that its front end may have been resting on Ihe rails. The ether, about a mile further clown the tracks, was found across the highway from where it had been left but it had stopped when its blade became buried in the soil. A witness at the scene said the derailed locomotives and boxcars, most carrying potash, were in a pile about 300 feet long and that about 500 feet of Irack had been ripped up. II was estimated the train was doing about 60 miles an hour when the accident oc- curred, A tank car of liquid butane exploded shortly after Ihe crash. Crews were working late Sunday to empty the remaining butane vapor from the car to prevent another explosion. Sur- rounding wheat fields were badly scorched by the blast, some of them down to the bare earth. Ex marshal may be Liu's successor PEKING (Renter) China may be on the brink of naming former marshal Yeh Chien-ying, an old guard revolutionary, as defence minister to succeed Lin Piao, whose death while fleeing the country was confirmed here last Friday. Yeh, who is 71, is close to Chairman Mao Tse-lung and Prime Minister Chou En-lai. His genial appearance and ar- tistic interests belie his military toughness. A skilled riiniplomat, he is considered No. 3 in the leadership after Mao and Chou. caused Britain's worst In- dustrial crisis in 46 years with longshoremen, miners, public transportation workers and other employees stopping work. Longshoremen assembled in London to lobby talks already begun between their leaders and representatives of the port em- ployers. The discussions centre on proposals aimed at meeting the longshoremen's fears about job security in the face of con- tainerization of cargoes which already has led to thousands of layoffs in British ports during the last few years. The big stumbling block in talks between the government and the TUC is the Industrial Relations Act which the TQC re- fuses to recognize. The act, aimed at ending wildcat strikes, can impose cooling-off periods and compulsory ballots among workers planning stoppages. It also has legal powers lo fine un- ions defying it. TUC General Secretary Victor Feather demanded again Sun- day in a letter lo Heath thai Ihe act be suspended. He said he was willing to meet the government, even though the government refuses to suspend or amend the law for the present. Meanwhile. Jack Jones, secre- tary of the Transport and Gen- eral Workers' coun- try's biggest labor union repre- senting tiie Lord Aldington, chairman of the Port of London Authority, met to find a new formula accept- able to Ihe longshoremen. Lasl week Ihe longshoremen rejected a proposal by Alding- lon and Jones that would have given up to to old and unfit workers hid off. The pro- posal would also have given preference lo longshoremen in Ihe new container industry. But as daylight came end the troops took up defensive posi- tion around their 50-ton Centu- rion tanks, converted to giant bulldozers, angry crowds taunted and spat at the soldiers. "They'll be an infuri- ated woman supporter of the IRA shouled. FEAR BOMBS Although the hulk of the IRA gunmen appeared to have gone underground, there were fears they would strike perhaps with a wave of bombing outrages, similar to the massive bombing of Belfast on "Bloody Friday" 10 days ago. Eagleton urged to leave ticket WASHINGTON (AP) With the new Democratic party lead- ership urging him to pull out, Democratic vice presidential nominee Thomas Eagleton says he'll lake his fight for staying on the ticket to George Me- Govern tonight. The Missouri senator said Sunday Uiat if presidential can- didate McGovern should ask him to get off "I can't prejudge what 1 would do." "I think that I'd perhaps want more time to think it he said. Eaglelon said he will present his case to McGovern without being pig-headed, but he was not sure a decision would result from the meeting. The senator's future on the ticket has been in question since last Tuesday when he discluse'1 that he had undergone psyriiiA- ric treatment in I960, 1964vand I960 for mental depression. MCGOVERN WAVERS McGovern said Sunday "I really don't know at this point whether he's a plus or a minus" In the campaign against presi- dent Nixon but "we might very well decide that the thing to do Is for him to stay on." At the time Eagleton dis- Elderly can claim grant EDMONTON (CP) Today is the first opportunity for many of the province's senior citizens lo claim S50 from the Alberta government under a new grant scheme. Under the new Senior Citizen Shelter Assistance Act, those 65 and over, renting a house, apartment or mobile home unit on which the provincial school tax is levied can, apply for from the department of muni- cipal affairs. An estimated senior citizens are eligible. Application forms are avail- able in all municipal affairs de- partment offices and from treasury branches. closed his medical problem last Tuesday. McGovern had said: "I don't have the slightest doubt about the wisdom of my choice" of Eagleton. Democratic national chair- man Jean Weslwood and vice- chairman Basil Paterson, inter- viewed on NBC's Meet the Press urged Eagleton to drop out. "It would be the noble iiJi" for Tom Eagleton to step Mrs. Westwood said, be- cause of his medical background is ''ipsing ar air- ing of real campfe_ m issues'. Eagleton, appearing on Face the Nation on CBS, said r: con- siders himself not an er umbr- ance but .1 asset to Ihn ticket. NOT REALLY EQUAL While contending the decision sbout his future on the ticket would be made equally by him- self and McGovern, Eagleton said: "I would have to be can- did and say that the presidential nominee is a little more equal than the vice-presidential nomi- nee." One of Eagleton's questioners on Face the Nation was column- ist Jack Anderson who apolog- ized on the program for report- ing without documentary proof thai Eaglclon had been arrested several times for drunken driv- ing. But Anderson said he could not in good conscience retract the story because he has not been able to contact an un- named person who is said to have photostats of the alleged arrest citations. Bremer jury to be selected UPPER MARLBORO, Md. (AP) Jury selection is sched- uled to begin today in the stale trial of Arthur Herman Bremer, accused of wounding Alabama Gov. George C. Wallace and three other persons at a politi- cal rally May 15. World chess champ asks for rest REYKJAVIK, Iceland (AP) World champion Boris Spas- sky took a rest from the inter- national chers iille game Sun- day, pleading a cold. The ninth game with American Bobby Fischer now is scheduled lo bo played Tuesday. 'Her. Miss Universe? They gotta be Getting back to Canada is worth a hanger strike MOSCOW Twn 11.1 live-born Canadians and Iheir Soviet spouses went to Ihe Ca- nadian Embassy today In hold a hunger strike there unlit the government allows them lo rc- lnrn (o Canada. The four are Canadian-born F.ugenc (Jim) Lcnko and Natlia Demidcnko, w h o reluctantly einiiiratod to the Ukraine wilii Ihrir piirails Hi yours afn, l.on- wife Kvellana, and Mrs, Ucuiidcukn's husband Aiiatoly. Roth Canadian and Ihe Soviet Union claim Ix-nko nnd Mrs. Demidenko as citizens. The spouses and the couples' chil- dren, born here, have only So- viet citizenship. But Canada lins nssured llicm of cnlry papers if Soviet nuthorilies allow them '.a leave hero. During Ihe last I wo years iho couples hnvc snhmillcd iwinl- less lellcrs, appliralions anil penis in an ollcmpt lo gel oxil visas. "Wo'vo Inert P v c r y t h I n ft Mrs. Demidenko told re- porters Sunday. "I guess (a hunger strike) is the next step. For Ihe last two years we've been appealing our cases to all (lie top officials and it has got us nowhere. So this Is Iho only Ihing left lo do. "f mean, don'l like1 Iho idoa of going Minimal a lumper slriko, hill what olso can wo Canadian embassy officials confirmed the four were in thu embassy bill declined comment until they talk lo the couples. Asked Sunday why they chose Ihe Canadian Embassy for Ihe protesl, Ixmko said: SOU.' "I Ihink lhal if we did 11 any- where elf-p-say onl in Ihe strn'l or Ilio ccnlral hii'Craph we'd juM gel hauled in hy Ihe cops. It's a placn of shcllor (or us. We'll consider ourselves on Canadian soil." Lcnko added lhal he hopes Iho embassy "will make Ihe neces- sary representations on our be- half lo pel us mil of Ihe Soviet Union so we onuld rclnrn lo Canada wilh our families." Mrs. Demidenko said she didn't think Ihey would be forced lo loavp Ihe embassy "because Ihe only penplo who onn do Mini are Iho Canadians." "1 don't think they would do 9 IhinR like lhal." she said. "That would be Ihe hip.ccsl blow we've received Iheso past two years. That would be worse than what we've been pelting from the So- viet anlhorilios." The four said In a leller lo Ihe Soviet Minister Col. don. Nikolai Shcholokov, Hint they "will remain in the Cana- dian rmkissy unlil wo aro P'.mlerl permission In In The leller wa.s nailed today.