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Lethbridge Herald, The (Newspaper) - May 3, 1972, Lethbridge, Alberta FORECAST HIGH THURSDAY 63. The lethbridge Herald YOU LXV No. 121 LETI-fBRlDGE, ALBERTA, WEDNESDAY, MAY 3, 1972 PRICE NOT OVER 10 CENTfa THREE SECTIONS 36 PAGES New takeover may fan more debate -Interpretative By IRVING C. WIIVNOT Canadian Press Business Editor OTTAWA (CP) One tiling appcai-s clear from Hie government's tshccver legislation the long debate almul the extent and dangers of foreign con- trol of the Canadian economy is far from over. If anything, the moderate policy approach of the legislation proposed Tuesday seems likely to fan an economic nationalist claim that the government acted too softly and failed to cover other important fields of concern. The government rejected outright the buy-back- Canada approach, the suggestion that certain key in- dustries be added to those now off-limits to foreign control, plus other stronger measures. In setting up a review board to look into future takeovers by foreigners, the government dealt only with the future. Everything else is left just as it is now. There is no demand as the nationalists Hint, existing foreign-controlled firms sell more of their shares to Canadians, no controls on future investment through expansion, by foreign owned companies al- ready in the country, and no requirement for Cana- dian directors on hoards of management. Revenue Minister Gray, however, gave an inkling that oilier measures may he. adopted later. The alternatives He told the Commons that, the decision to establish n takeover review board "does not rule out entirely Ihc possibility that other approaches might be required at some lime in the future.'' Later in his Commons speech, he said: "Our objective as Canadians which is to exercise greater control over our domestic net be achieved by exclusive reliance on a takeover review process. "As part of its response to this issue, the govern- ment will continue lo develop positive policies to en- courage Canadians to participate more fully in the de- velopment of their country, and lo encourage tlie growth of Canadian sources of capital, technology and management." He gave no clues on the type of future action, hut there were scattered hinl.s in tile government's back- ground report of possible moves toward a more de- tailed national industrial policy. The report of the group which Mr. Gray headed speaks of gaps in the Canadian economy which at- tract foreign investment because the requirements can- not be filled at home. It suggests these gaps "were more than financial, that they were in fact entrepreneurial or technological in nature.'' "It is clear lhal some of the gaps identified ap- pear to be the result of deficiencies in Canadian public policy." Lower tariffs In another section, the report talks about possible lower tariffs to develop a more competitive environ- ment, and says: "It is unrealistic to expect large and rapid tariff reductions as a general federal approach, particularly if such a policy did not form part of" the framework of a wider industrial strategy involving the federal government in helping to develop and to support areas of efficient Canadian production." One aspect, of the new policy that will please busi- ness is that the government picked the road that keeps increased government involvement in the economy to a minimum. Tlie background report said adoption of the review board would mean "quite limited'' additional govern- ment intervention in the economy. Oilier as a screening agency with wider powers to look into investment, licensing arrangements and so have meant heavier government involvement. f 'roper balance government policy was to find a proper balance between maintaining tlie free- dom of decision making in the private sector to tho grcalesl possible extent, while al the same time en- suring thai private decisions are compatible with the public intcresl." But none of this is likely to placate the nationalists who sec grave danger for Canada in the large and growing foreign ownership "f the economy. II is not likely, for instance, lo please such men as Walter fiordon. Ihc foniivr Liberal finance, minister and a founder nf Ihc Cnmmilliv for an Independent <'.-mad.-i. vvlm has said Ihc IhiTal nl ,-ibsorptinn liv (In- I'nilcd .SIairs "is more serious than Quebec separatism because it is more complex and less easily under- stood lie lold a group u[ high school sludcnls a few years ".My point is Ih.-.t if a country allows too high a proportion of its resources and of its business enter- prises lo he controlled abroad, il will inevilably lose noi onlv a nirasinv nf iis ivoniiinir independence, bill. Us political indcpi'iidcnci' .is veil Thai is whal is hap- pening in Canada.1' Ownership plan praised, damned STRETCHERS READIED Rescue workers have stretchers and ambulances stand- ing by as rescue efforts continued at Jewell shaft of the Sunshine Mining Company's Kellogg mine near Spokane where 50 miners are reportedly trapped after a fire at fool level Tuesday. (AP Wirephoto) Idaho KELLOGG, Idaho (AP) At least 2-4 miners died in the rich- est silver mine In the United States after fire swept, through niineshafls more than a half- mile under ground, authorities said. Shoshone County Sheriff Lou Gardner said 19 bodies were being brought to the surface in addition to those of the five mine officials said were re- moved from the murky shafts Tuesday. Rescues probed through the night in the murky underground shafts in the mineral-rich area of northern Idaho. The fire was reported at about the 3.400-foot leve'i near midday Tuesday. FAMILIES GATHER As word of the disaster spread, an estimated 100 family members and friends of the missing men gathered at the site, then stayed Ihrouch the afternoon and night. JIany of them moved into a warehouse at the Sunshine compound. The fire broke out as Sunshine stockholders held their annual meeting 30 miles away in Coeur d'Alene. and were presented an optimistic financial report by of- ficials. Turks seize Steam pipe blast kills New Yorkers NEW YORK (AP) A steam pipe exploded on the 3Gth floor of a skyscraper in the heart of Manhattan's financial district today and killed at least seven persons, fire officials reported. Robert Perez, secretary of the fire department, said at the scene that, the pipe exploded in an office building at, 80 Pine Street. Wins 82 million pool in soccer RIO DE JANEIRO (APi Eduardo Teixcira. a 23 year-old factory worker, won the biggest, prize in the his- tory of Brazil's soccer lot- tery 11.6 million It was (lie first lime since the lottery began two years ago that only one person correctly picked the winners of the 13 games on the bel- ting card. The prize, money is tax-free. Overtime pay for Mounties in offing OTTAWA (CP) Mounties finally are going to get paid overtime for the long hours they spend getting their man, I h n Commons justice com- mittee was told yesterday. RCMP Commissioner W. L. Higgitt said between S6 mil- lion" and S3 million will be added to the force's budget for the fiscal year beginning April 1. 1373. Pay for a first-class con- stable last year was S157 weekly. Still to he determined is on what basis overtime is to be [laid. ISTANBUL (API Turkish jetliner with (il passengers aboard was hijacked today to Bulgaria. The official Bulgarian news agency BTA said the plane had landed in Sofia, Bulgaria's capi- tal, after being seized over Tur- key by four Turks armed with pistols and hand grenades. BTA said officials of the Turk- ish embassy were permitted to meet and talk with the hijack- ers in Sofia. Earlier Turkey's semi-official Anatolia news agency said the hijackers had threatened to blow the plane up if it was ap- proached and their demands not met. Anatolia reported the pilot of the plane spoke with the Sofia control tower and said the kid- nappers demanded that, the plane be refuelled "for a long voyage." Turkish embassy officials In the control tower sent a mes- sage to the plane demanding that the kidnappers release the passengers. But the demand was refused. Seen and heard About town engineer Randy Holfrld blaming his new j o b on the mounting grey hair collection under lu's hat .lop Nicholson, thinking a six- month paid vacation in Flor- ida would be nice twice a a year Bill liavinga mis- taking his moustache wax for hair cream and getting the. straighlest. curls in town. Cautious reaction in [AS, By THE CANADIAN PRESS The federal government's for- eign ownership policy an- nounced Tuesday evoked mixed reactions from politicians, was generally favored by business- men and was damned by some labor leaders. All saw the draft legislation, which provides for government approval of foreign takeovers of Canadian businesses, as a mod- erate, middle-of-the-road mea- sure. Those who feared exten- sive restrictions on foreign in- vestments were relieved while others were disappointed at the absence of stronger measures to set limits on foreign control of Canadian industries. As announced Tuesday, legi- flation will be enacted to sub- ject future significant take- overs of Canadian firms by foreigners to cabinet scrutiny and approval. A background study released at the same time says only five to 20 per cent of the growth in foreign controlled assets in Canada is the result of take- overs. That means that even if all takeovers are banned and l.hat is not the intent of the legislation it would put con- siderably less than one fifth of foreign investment growth under government control. There was no mention in Revenue Minister Herb Gray's policy statement to the Com- mons of other possible mea- sures, such as curtailment of investment, expansion of exist- ing foreign controlled firms or other types of increased foreign investment. This moderate a p p r oach brought immediate expressions of relief from the business community which had ex- pected much criti- cism from the opposition. WILL DO NO HARM In the West, Premier Ed Schreyer of Manitoba said the draft legislation will do no harm to the Canadian economy, but its effectiveness will depend on other economic development measures. Alberta Premier Peter Lough- eed said he was pleased the fed- eral policy was less restrictive than suggested in the report of the working group headed by federal Revenue Minister Herb Gray. But Allan Blakeney. Sas- katchewan's premier, said the government proposals did not come to grips with the problem of regaining control of industry in Canada. Some Liberal politicians at both the federal and provincial levels were cautious in their ap- proval of the policy statement. Ian Wahn, Liberal MP for To- ronto-St. Paul's who was chair- Two Irishmen sliot through the knees BELFAST (API Seven per- sons were wounded by gunfire in Northern Ireland today, au- thorities reported. Two men were shot through (lie knees in Londonderry. This is a form of punishment, handed out by the Irish Republican Army to those who betray it. man of a Commons committee which recommended 51-per-cent Canadian control of industries operating in Canada, described it as "a short step on the right road." But he said he was disturbed that the proposed legislation did not establish an agency to in- form the government about problems of foreign investment. FEARS LACK In Winnipeg, provincial Lib- eral Leader I. H. Asper, a noted taxation lawyer, said he "cau- tiously" approved the proposals, but feared the lack of safe- guards for provincial interests. He said the federal govern- ment should have to demon- strate that a particular takeover would be damaging to Canadian interests, rather than requiring a company to prove a takeover would be beneficial to Canada. Strongest opposition came from members of the New Dem- ocratic Party. Melville Watkins, leading spokesman lor the party's left wing, said the policy statement was "a vast disappointment which simply leaves me angry." Mr. Watkins, who headed a study group which in 1968 called for an independent agency to oversee foreign investment, said the industry department's role in the government policy "has no credibility at all." ATTACKS GOVERNMENT Stephen Lewis, leader of the Ontario NDP. said the report represented "the greatest single abdication of political responsi- bility in the Trudeau years." "It really makes one very pngry to believe (he government can 'labor for three years and bring forth a document which betrays our search for control of the Canadian he said. B u s i n c s s in c n appeared pleased with (lie proposed legis- lation. From SAIGON (CP) North Viet- namese troops attacked within six miles ol Hue today after a fire base north of lire old imperial capital. Other Communist forces captured the last South Vietnamese strong- hold in the northern part tif coastal Hint' I'linh province A 1 S. ;iir made hundred.': ol strikes against North Viet n a m e s e posi- tions in South Vietnam bur. again shov.rd no immediate signs nf turning the tide. In the heaviest raids in more than four years, U.S. fightor- homhors flew Hill strikes in all four military regions nf South Vietnam, alimil Hvr thirds ot them in the norlhermmv.l inro.'i n( QuaiiK TM and 'I'linn Thicn in efforts to forestall an attack on Hue. Following th e debacle in Quang Tri, l.t. Gen. Hoang Xuan Lam, commander in the northernmost military region one. is being replaced by Lt- Gen. Ngo Quang Truone. who has been commander in the Mekong IVIIa. Brie. Gen. Vn Van whose, .'ird Division was badly haltered nl (Juang Tri, is under investigation, n spokesman for the Saigon mili- tary command said. South Vietnamese marines abandoned Kiie Hase Nancy, about '22 miles north of Hue, on Tuesday after a tank battle in which they claimed t'om- inunist treops Killed and It tanks d'.'slnivcd The marines 'I kirk In ilir My liivri inic, the. mail! tumble defensive position about 20 to situation 'J-.cre. was reported 25 miles north of Hue, and the quiet. assesses Saigon's anus needs WASHINGTON (AP) De- fence Secretary Melvin H. Laird Wednesday ordered a high-lex-el team of experts In South Yiel- nuin today In assess Saigon s military needs in whal may b'' n prelndn In increased arms aid. .Pentagon spokesman .lerry W. Fricdhcim said the mission will make a logistical assess- ment of the situation in Vicl- nam. belli as lo wbat, the South Vietnamese need lo blunt Ihe Coniniunisl invasion and lo de- termine what if. any additional, .supplies U.S. troops need lo pro- tect themselves. Dertdiv new ircapon in arscnril SAIGON (lieulerl North sources said today. Vietnamese troops shot down Iwo American aircrafl over Tri uilh a d.v.dly hand, held Soviet rocket which they have hcon nnncil with tnr ihc lust Ijim in ihn nuljuiy The Soviet Slrolla rocket, car- ried by hand and fired from thn .shoulder, hones in on Die heat of an aircrail's engine and is considered a new weapon in Ihe North Vielnam- arsenal. WASHINGTON (CP) Amer- ican officials reacted cautiously today to their initial reading of Canada's proposals to screen foreign takeovers of Canadian business. Several stressed that the leg- islation introduced in Parlia- ment Tuesday left questions in their minds about how the screening system would work in practice and what the cabinet w o u 1 d eventually determine were the "significant benefits" that could bring approval for takeovers. All American officials reached here stressed that they were still examining the legisla- tion in detail and their conclu- sions were, at best, tentative. "There were no great sur- prises in it, for us. on the basis of earlier reports about the gov- ernment's thinking.'' said a treasury department official. He added, h o w e v e r, that "some eyebrows were raised'' In the department at the possi- bility that export promotion might play a role in a com- pany's getting approval for a takeover. News of Canada's new policy that Revenue Minister Herb Gray announced in the Com- mon's was given prominent dis- play in many American news- papers. The story was on the front pages of the New York Times and the Washington Post, among the most influential pa- pers in the U.S., and was re- ported at length on the back page of the Wall Street Journal. All of the reports included comment from the Canadian Opposition that they thought the legislation was inadequate. The Post report said it was plain the government "had chosen one of the narrowest fields 'of action open to it" in controlling foreign investment. economy By THE CANADIAN PRESS Initial reaction Irom the busi- ness community is that the federal government's foreign ownership policy will not ad- versely affect the Alberta economy. "Further development and exploration should not be af- J. II. Chesney. a direc- tor of the Alberta Northwest Chamber of Mines, Oils and Resources, said iu an inter- view. "I don't see how it can af- fect future plans." Hans Maciej of the Canadian Petroleum Association in Cal- gary said tlie proposed legisla- tion is more realistic than the original Gray report a n d "should not inhibit the petro- leum industry's tremendous need for capital." The indusJry needed large amounts of foreign capilal to carry out Arctic exploration and to build Arctic pipelines and Athabasca oil sands' ex- traction plants. However, Mr. Maciej said that almost all oil companies will be covered by the propos- ed legislation which would trol takeovers by foreign coin- panics Takeovers would he riis- rouraced and this could be harmful to the petroleum in- dustry in some cases. "It is quite middle of the said Gerald Pearson, president of the F.dmonton Chamber of Commerce. The president of the Alherta- Nortbwesl Chamber of Mines, Oils and Resources. H. ,1. S. Pearson, saifl the government proposals must be studied Hoscly. Premier I'cler Loughced said he is pleased the federal gov- ernment's foreign takeover policy contains lo. s rcslridivr measures than liad bccii gcsled in a background study report. Social Opposition lead- er Harry Slrom saiil in an in Icrview il's difficult lo Ihe pulicv because more de- pends on Ihc application of thn MTcciiing pnxrcs.'' Hinn on Ihn policy statement read In the House of Commons. New Democratic Parly lead- er Grant Notley said having the cabinet screen takeovers was a poor move because poli- ticians lend to take a short- term view. Highlights of Gray report OTTAWA ;cn High- lights of the government's for- eign takeover policy: Takeovers of most Canadian firms by foreigners lo require cabinet approval. More stringent ,ind wider- iivjssures suggested in background study report rejected. Cabinet, (o have authority to approve, reject or seek im- provements in takeover bids. Cabinet approval to apply nn like-over of firms wit b more than or million annual revenue. Takeovers to bo judged on basis of "significant benefit lo Canada." Vinos and jaii terms prov- ided for failure lo comply with regulations. Liberal YANUn YKU tCD IT. Patrick MeCeer, loniior of the, British Columbia Liberal since ll'fiji. resigned as leader and p r o p o e d Liberal mem her of Parliament for KMJUI- ;