Lethbridge Herald, The (Newspaper) - May 26, 1972, Lethbridge, Alberta
SUHNY Forecast Salurclny 70-75. TTxV No. I4H The Lcthbridge Herald I.ETIIHHmr.Ji FRIDAY, WAY 26, 1972 PRICE NOT OVER 10 CENTS TWO SECTION'S -24 PAGES strikes out at hearings By WALTER KREVENCHUK EDMONTON fCP) Indications arc that the pe- troleum industry lias struck out in attempt to block (lie Alberta government's plan to pump another MO million to million in revenue out of (be industry. During three days of public hearings before a com- miltee of the legislature, the industry claimed Utc pro- posal lo lax crude nil reserves would cripple the oil industry and hobble tiie provincial economy. Bui even before Hie hearings ended Thursday, gov- ernment spokesmen said the objections had a fa- miliar ring. Uac-k in said Don Colly, minister of federal and inler-govcrnmcnlal affairs, the industry claimed in- creased royalUus would shake investor confidence, re- duce exploration and cause unemployment. Bill Dickie, minister of mines and minerals, said the same objections were raised to a royalty increase in J9G2. "Thv "Me argumcnls are being used today in an automatic, xind of Jlr. Getty said. Decide in July Sir. Dickie said the next stage in (he government- induslry confrontation is an assessment and evaluation of Die hearings, vith a final government decision due July so. Me lold a news conference he anticipates further meetings lulh industry representatives, particularly tlie Canadian Pelrnlcmn Association nnd the Independenl Petroleum Association of Canada. Amendments lr> tho .Mineral Taxation Act wliicli irill moke Hie msi'rve (ax possible now are Iwfore Hie legislature and Mr. Dickie said Ihe government intends to proceed with Ihe legislation during the current ses- sion. Target date for implementation of the new tax is Jan. 1, 1973. The province's Progressive Conservative govern- ment proposes to tax the right, lo all minerals in the province, circumventing a statutory ceiling on exist- ing royalties, many in effect until the 1980s. Royalties in the province now range from eight In per cent, depending on the production of an oil well, New blow coming? The Consenstives, vln hold 49 seats in ihc 75- seat legislature, may deal the industry another tax blow later tills year when they review tax structures apply- ing to natural gas, the Athabasca oil sands and During the hearings, (he oil industry argued it al- ready is providing a fair share of government revenues million in royalties, cash bonuses and rentals In 1972. On (lie other side were critics who said the in- dustry, viih combined profits forecast at an estimated million in 1972. could easily afford lo ?20Q million a yrar. The industry position vns summed up hy fPAC, which represents I'M independent oil and gas explorn- l.inn and production firms, and CFA, whose 200 mem- ber companies account for 97 per cent of Canada's nil and pas production and pipeline transporlalon. IFAC said the tax comes "at a time when there is a decreasing discovery rale, when there is n rc- flllocation of expenditures In other areas and when Ihe industry is being buffeted hy actions of (ho federal government, and its The proposed lax "wnnld wihslantislly rcducr, not. nnly ful.ure Iwncfils. and returns hut have a depress- ing effect mi business and therefore employment in nil sectors of flie Alberta economy.'' Even a sales lax The IPAC said Llic government should look at other even a sales tax, for the money required to diversify lhr> economy ,inrj lo for Ihe rlny when the nil is conr. The CTA nolcd that ihr industry already is idinc PIT cent of povrrnmpnl. revenues and Uiat rnynJIy rtnnnuc is f.vperlefl lo almost, triple over the 111 Industry spokesmen weren't Impressed by siippes- lions that they rnuld pr-'-'s liip tax on. in prices in- creases, and claim it as an expense against federal corporation taxes. Hope [o harness wind Monl. (An ICnsiinccrs at, Montana Male I'nivcvsily. vorkinj; with nn idea dreamed up hy a Jionl raneher, one clay lo harness Mm Ihc seluKtl's department. nl arronrniJic.s" liis Eclienic lo utilise Monlana's alinndaiiL winds for electri- cal jKnvor mi'L .skeplicism. Bui aliiimles cliaii.'S'd as lire engineers .studied lha plan, vilh of hup' xiils, ATlcr wo limked a I il, we (mind his proixisal to Iw leasililc.'1 said I'rof. llalph Pimo. The f-VM urpcd Davison In apply tor a paloni. mi Hie ami .iiMrrl Ilieir imn meiils. 'Dir wills- Ix-fii trjtlal Hasieally, Davison's plan is In speed wind-powered ear.: .-hr.i; an oval traek. Goneralors allarhed lo Iho cars wnnld ennverl wind cner.CT1 into electrical power. The chairman nf Ihe. engineering deparlmenl, Dr. Ilishnp, says alionl. is needed lo Iniild a prnlnlype nf Iho device. A in.iiiin :vi IIDO capacily would mjiiiiu a (rack iihmiL HI miles in cimnnfor- e.nce. rnv arms aareeme New type missile From AP-RELTEH SAIGON (CP) U.S. forces firing electronically guided mis- siles newly introduced in Viet- nam broke up a Lank assault on Konlimi Cily in Ihe central high- lands today. A dozen tanks wera reported destroyed. On the northern front. South Vietnamese marines heat back the fourth assault this week on the northernmost defence line at My Chanh, norlh of Hue. The Saigon command claimed IP2 Knrtll Vietnamese troops v.'erQ killed and paid Soulh Vietnam- ese losses were seven killed and 34 wounded. Other rangers on the eastern flank of the My Chanh line were reported battling (or a third day. Meanwhile, 12 miles south- west of Hue, South Vietnamese infantrymen reoccupied Fire Base Checkmate, and field re- porls said ol Norlh Vietnamese were killed In the air war against North Vielnam, American planes pounded the Haiphong area Thursday for the third day in a campaign to isolate the major port from the rest of the coun- try. PiloU reported destroying one span each of the Haiphong and Kien An highway bridges ahout six miles north of the city. fighting continued in Kontum for the second day. and field reports said the North Vi- etnamese were trying to cap- ture their second provincial cap- ital. The country's northernmost provincial capital, Quang Tvi. fell May 1. Konlum is 2G5 miles north of Saigon. FIHE TOW MISSILES The I'.S. c o m m a n rl said A m e r i c a n helicopters firing TOW missiles destroyed in of the 12 tanks that were knocked out TOW is an acronym for luhc- launched, optically-traced, wire-guided. The missiles are guided by American operators who keep Ihe target centred in a telescopic sight. The move- ment of the sight generates electronic signals lhat keep Iho missile locked on the target, nnd the electronic impulses are passed through two wires. I'rom UEUTER-AD BELFAST (CP) A bomb Masted the heart of Belfast today, injuring at least 20 puo- ple, as violence erupted else- where in Ulster despite big new Catholic drives for peace. AL least h'.'o persons were believed killed. The explosion appeared to be an act of defiance by militants of the Irish Republican Army to Catholic attempts to half the violence that has afflicted Northern Ireland for 33 months. The death toll stands at .136. The Belfast bomb erupted "in a ball of flame'1 in a car parked on Oxford Slrecl near Ihc junc- tion wilh Slrcc-t. Buildings a qunrlcr nl a nlilr away were damaged. Vehicles parked near Ihr rar were and one sports rar was thrown across the- slrccl. The blast in Londonderry ap- peared to be the explosive reply of the IHA to the Catholic peace campaign. It was the first explosion aimed at a civilian target in Londonderry since the current women's peace campaign began last weekend in a protest, over the Irish Republican Army's nrla in Catholic areas of (he city. Northern Ireland's biggest op- position group, the Social Demo- cralic and Labor parly, sup- ported Ihc women today by or- dering followers to end their 10- month boycott of the provincial government and work for peace. The party bailed Ihe concilia- tion efforts of William While- law. British administrator for Ulster. Guess wlierc he found stolen, hike? 7NSISFAIL. Alia. (CP1 Martin vScrvolrl. 12, saw a picture of hi.s stolen bicycle on the front page of Ihe In- nisfail Province Police were using if for 3 safely demonslralion. Martin found liis hike's serial number, told police, snrl got his properly re- lumed quickly. 'uggists propose priee-cul plan macists. Spokesmen for the Alberta h a r m a ceutical Associatio Mwkcrl The plan would lake advant- age of croup buying principles, a system now used by Alberta hospitals. Hy using the system. Alberta hospitals get their rinifls for up to one-lhird of what pharmacists must, pay wholesale. FANTASTIC SAYINC If pharmacists could be in- cluded in the system that, hos- pitals now use, the resulting paving to Ihc consumer would be "fantastic ahoul SI mil- lion a said Am- brosic, of the association. PennM Cameron, association registrar, said l.he plan would nd. mean any inerenso in in- come lo pharmacists and HIP entire saving "would be passed along lo Ihe consumer." Under Iho system, hospitals us a select Ihe mosl mnl high quality drugs and niauufaclurcrs of t h o, s t; drugs In submit, leaders. exampb., I here arc. sev- rral Irahqiiilivers on tlie markrf. lo treat for a certain set of symptoms. The hospitals sur- vey (host! nnd de- termine which ones pass their quality stipulations. Then Ihc iiiaiuifafluroTs of these Iran- qm'lizcrs nrc nskcd to submit tender nnd (lie lowosl bidder would supply all hosiiilals. SUIISIOIZK' HOSPITALS T.Mfig I hi.s srslcni, Alhcrtn hospitals pay for 1.000 jnilligram lablrls of [hi1 Irnn- Hia7epam but pharm.n- risls nnisl encti pay for of Iheso tablets. Mr. Ambrosia lh.il if AI- hcrla pharmacists could luiy IJin iiiiflnr Ihe .samp that the hospitals do. a K'O prescription Ih.al now eost> cnnsup.ic-rs about would in.--! COM While the thinks gnvil In la i-nn- Mimei-s would nviiill if fisls ;iii a were in- fludo'l in Ihe same Hint, hospilals nov; use, it doc-s rec- that would likely m-vcr In1 lo buy (he drugs as cheaply as hospilals do now. "I Ihinl; it is gnnernlly agreed lhat Ihe U-r conyimuM1 is nnw Icr al phar- macies is Mr. Came.ron said. MOMENT OF HORROR Grief-stricken St. Calherines mother, Mrs, James Toms, looks on in horror as her nine-year-old daughter, Wendy, lies badly hurt after being struck by a car, (CP WirephotoJ Seen and heard About town QPTLMISTIC Frank Bern- Itarl. commenting on tlie rain, said he remembers Ihc year it snowed in July Davp, Hackson enjoying the rain because IJir, extra hour of sunlipht lended to scorch his Inwn Patty Hill heard sounding off on Ihe rain. Lethbridge fares better than some Ijy llrrald Oltawa Bureau OTTAWA A special supple- men tan' report issued by Tie- pional E c n n o m i c Expnnsinn Jlinistcr Jean Jlarcliand's de- partment appears lo back up criticism by some members of Parliament that certain parts of Canada are discriminated against in (he handinp out of millions of dollars in industrial incentive grants. The reporl lists snmc com- panies which have had tlmic nf- fers of pnmls revised for var- ious reasons. The- money is handed out on a nn-slrinys-al- tached except lh.nl it intended to create in depressed They are Of the flri companies, n pre- liminary count shows 52 are based in Quebec, jus! three1 each in British Columbia and Albcrla. nine, each in Manitoba and New Brunswick, seven eaeli in Nova Scotia and Newfound- land, nnd six in Ontario. Some AITs have, lhat Western Canada doesn't, pel JUs fair share of grants. Alberta MP Jack Honirr fooO has suggested British Col- umbia especially is badly treated. The Ilircp, grants mentioned as being offered to B.C. compa- nies lotal They consist; nf S276.BOO to Kootenay Forest Proriucls. Nelson; to LcFcvre Sales Ltd. of North Da- kota for a plant, in Yahk: and I o Vcrigen Const ruclion Ltd., Trail. A number of companies in Quebec, which pels the lion's share of Ihe grant s, and in On- tarin and one or Iwn o'.her prnv- inces, got more in one sincln cranl alnnn than did the cniiro batch of companies in British in Alberla. iirni; 'fiiKv Alberta, however, does a. little iT-tlcr in grants than her Vi'est Coast Alberta's three grants Iota! Aciua Tech Ltd. of Calgary got In build a plant in Lcth- bridge; Canadian H r c s s ed Moais Lid., Lelhbridgc. pot SSfl.Ml; and Kainai Indusliies Ltd., Lelhbridge, got Mr. Marchand has said the money goes to Ihe areas which need it. most. MOSCOW (API U.S. spokesman announced tonigiii a agreement" on a two-part U.S.-Soviet agreement Lo limit the deployment of strategic nu- clear weapons. The agreement uill he siET-rd Rl about 4 p.m. EOT after Pres- ident Nixon hosts a dinner for Soviet leaders nl Spaso llnuse, residence of the U.S. ambas-a- rior. Press secretary Zicgler said Nixon met Leonid Brezhnev, Communist party secretary, President Nikolai Podgorny, and Premier Alexef Kosygin in Lhe Kremlin for two hours today. "They discussed international problems and completed final agreement on SALT." he said. Resolution of last-minute dif- ferences on highly technical as- pects of. the accord prompted Nixon to postpone for an hour an evening dinner at the U.S. ambassador's residence where the visiting American will enter- tain the Soviet hierarchy. Word of a strategic arms limi- tation agreement came after a day of on-again, off-again re- ports of the prospects for a Fri- day settlement. One part of I lie apreernor.l, li mil ing defensive anti-ballistic missile, sites in each country. lakes the form of a treaty sulv ject lo ratification by Hie U.S. Senate and was egreed upon first. Under the terms of a compan- ion executive agreement, which will take effect without legisla- tive action, deplovment of offen- sive nuclear missile? will be frozen al Ihe present level as far as the United Slates is con- cerned. The Russians will he al- lowed to catch up wilh (lie U.S. lezd in launching platforms. The accord permits both coun- tries to replace cxisline offen- sive missiles, whether placed on land or aboard ships at sea, with more sophisticated weap- ons as technological advances permit. Advisers lo Pivsidcnt Xixon and Kremlin leader Leonid Brezhnev met throughout Iho day to iron out the final techni- cal details and present their chiefs wilh the grand prize they sought during their summit talks. Flail led. device blcws bole in plane KINGSTON, Jamaica iRcii- lor) An explosive device, planted aboard a Chilean Boeing 727, blew a hole In tho fuselage and forced it. to mako an emergency landing Thursday al Monlego Bay while, on o flight to Miami. None of Ihe Id-man crew or the 40 passengers was injured in the blast. The passengers laler left on another flight, lha United Stales. jMiiior surpery for AValhiro SILVER SPRING, M'l 'AT' Alabama COY. George C, recuperating lodny after minor surgery In drain pus from an infected area near one of his wounds. Doctors said the operation Thursday uill speed his recov- ery. They said Ihe infeclion was predictable. Otherwise. I lie docl ors ro- porlcd. Wallace's condition re- mained stable. For the first lime since his Injuries May 15, Wallace fed himself Thursday. VAM'O'.'VKK 'Cl'i I'ersh- inti (ici'vais. the Amrrican he a fal.se affida- vit Di'-irii1! Allnrney .Jim (iarri.'-nn of Vu Orleans, idcntifird his "contact man" uilli llic ('an.uli.'in ernment as an HCMT ,serpeanl here. Mr. (ic-rvnis was interviewed by The liun, Vancouver's evening newspr.pcr, liy phono from Ulah as he rontin- ui'd his jourri'V home to Lnuis- iana. Hi1 claims v..iS .smiy- jlled into and priivided M-ilb a lake name aiid job horn by llio United juslicn de. partmc'.il lo keep him cpm'i nnd now is working lor Ihc 1U'. aboul the darrisun affair. Tok'phKio t'n. In Hie telephone inton MOI ON AHI'.KU Mr. (iorvais named ConlarU-rl al llic lolcphnno man as a Sgl. ISlacknini-r o[ iNi i-ompam Mr r.larkmorr nm- HO1I1 inlclligcncc unil in V.in- firmed he hem an Kl'MI' coin'er and provided ;jml M'neanl llu1 inlelli- office numbers for him. gcnrr unil. lUil he declined lo "He was supposed lo In- lui- diM'iM his career or Ihc tier- son between me and tin1 r i1. (iian nouTiimrnl. If ;i-.y pmii. i i Tn; Inn arose T wa.i supp.vi'il in r.-.m: 1. hold of him and he would fix ab-o (V-'ilnrd lo e.iso it." r.nd Mu1 KCMP's iin'olvement in One telephone number KM] re- il. porlcrs In an lil'MP olt'inv Tim "I uvml In rommciit oilier was a new fur ilio on tin.-." s.iid Ihe home dl licg Uliickniorc, "This is Ihe kind o( Ihing we, retired from Hie foice in April don I lalk about." liervais said cnrlifr ueek lhat lie was a new Ihe V S. justice department under which he unuld live and woik m it (In. The he said, arranged fur him lo a "min- ister s permit" In rel around rrmndinn ,-iv.l rdso col him ;'n ,M fake jnh (ior.iY.il Molni.s Canada. Tlie riepnrlmenl's mnvcs, ho said, were lo repay him for a f.'ilM.1 Mv. Garrisim---his loi ir.er liu-- i.( covering up Louisiana one-rations.