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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - October 2, 1971, Lethbridge, Alberta Saturday, October 1, 1971 _ THI IETHBRIDGE HERALD 9 Canada and U.S. appear heading toward political collision r.. )un nnrf nf ii dec- and dismantling of political ican automobile production; regards as restrictive to trade! development_ By CARL MOLLINS OTTAWA (CP) Canada and the United Slates appear lo be heading towards a political col- lision of crisis proportions. Unless somebody swerves or steps on the brakes soon, the crash could drastically trans- form Canada as nothing has since the North American War of 1812. At issue are trade and eco- nomic relations between the two countries from the U.S. point of view, just one front in its campaign lo force all trading partners to play the interna- tional business game by a new set of U.S. rules. Publicly and officially, the Ca- nadian government is playing it, cool, insisting Canada is indeed following the rules of the new game according to Washington. Privately, Ottawa officials see the situation more seriously especially after some tough talking this week in Washington that was aimed directly at Can-ana. Unless Washington rclents-and there is no sign of the Canadian government soon for the better part of a decade whereby the United Slates was dropping deeply into debt to the rest of the world by spending more abroad than dismantling of political and industrial arrangement." the United States regards as restricting its sales to trading partners. Since Aug. 15, Canada s automobile production; schemes ensuring for Canada a piece of the productive action on planes and computers it is buying from the U.S.; programs that attract foreign as restrictive to trade] before the U.S. barriers are lowered. Nevertheless, the Canadian government appeared clearly to hope that stalling would miglit well provoke a popular outcry in Canada that would force the Cana-d an government into further retaliation. Tlie retaliation could restrict have the choice eilher of reaction has been, lo Canada, and laws come out right in export of Canadian raw ma- to U.S. wishes or of the export of raw It said, for example, and energy resources- the situation on by Canadian such as lumber logs U.S. -Canada agreement as natural that the In simple terms, yielding and inflated in the last six weeks south of tlie in automobiles and Slates needs. Then, the US wishes would mean among its trading that application of be renegotiated war Canadian ministers mantling policies developed the United States action lo Canada was Secretary John been warning against ing the last two decades proposed a series of if not an outright reiterated the demands for U.S. charges that be on. make Canada a Tlie main targets of terms Thursday encourages foreign like it or not, wou'd country, exporting processed products rather than raw include a 10-per-cent surcharge on dutiable action were Japan and Western The day after Mr. Petty to settle in this country and sell against U.S. be forced into a position of self-reliance and economic na- rials in order to provide a livelihood for UiB laslest-growing labor force in the industrial world. Fighting the U.S. position would be about as bleak. It would mean inviting further JS restrictions against Canadian exports of manufactured goods, possibly opening the :rade doors more widely to icr manufactures, and tax 'program to encourage U.S. industry lo buy American and a monetary manoeuvre designed to increase the exchange value of other currencies. All would have the effect of making it more times trading partners lo continue to sell products in the U.S. market, one of the world's biggest and richest and a vital one for A11E A special news in Washington Tuesday for Canadian reporters appcai ed to change all that. John Petty, U.S. assistant secretary of the treasury foi international affairs, an official regarded in Ottawa as sympathetic to Canadian problems, spelled out in words of one- syllable that the United Stales on the line, Canadian Trade Minister Jean-Luc Pepin insisted in Houston, Tex., that the Canadian record on trade restrictions was clean and that the U.S. elephant must have rolled over on the Canadian mouse by mistake. STICKS TO VIEW Thursday, after Mr. Connal-ly's statement, Prime Minister Trudeau continued insisting a commercial advantage, Canada maintains that U.S. policies behave similarly, if less visibly. Whether that line of response will successfully put off the day of reckoning with the United States appears questionable, given the tough line from Washington. COULD BRING CRUNCH The crunch could come if That would mean a major disruption of the two-thirds of its foreign sales that go to the United States. Those sales, in turn, account for out of every of wealth generated n Canada. The impact on Canadian employment, development and living standards would be dramatic back for a living on raw resources. The issues between the Nixon and Trudeau administrations arise from the Aug. 15 ultimatum served by President Nixon on all trading partners of the United States. That ultimatum was well being. The price of having those restrictions removed, it was re-emphasized this week in Washington, is agreement to raise the exchange value of all other thereby making the products of the affected coun-! tries more expensive and harder to sell in the United specific concessions by Canada on trade relations as part of the price of repealing U.S. restrictions. Among those, he either ;..ade clear or suggested strongly, were removal of safeguards designed to assure Canadian factories a fair share of North Commons that Canada already had taken the economic steps the U.S. demands before it will lift its import surtax. Elsewhere in the government, however, the official view was different. It was made clear that the United States is insisting on removal of programs States should impose additional tariff restrictions on Canadian sales to that country in response to an emergency Canadian program of subsidies to exporters, just passed by the Commons. Both Americans and Canadians in agree that such and UNO (Complete Free Estimates! No Obligation) PHONE 327-8578 CAPITOL FURNITURE 'The Carpel House of the South' to reveise _ _ COOL AND DRY Near normal and above normal temperatures are expected to cover most of the country, with below normal readings for the Maritimes, British Columbia and portions of Quebec according to the 30- day weather outlook of the United States weather Bureau, light to moderate precipitation is expected to cover most of the country, with portions of B.C. and the Maritimes receiving heavy. This is not a specific forecast and changes may occur. False alarm MEXICO CITY (lUuter) Three plainclothes policemen took the wife of a senior Mexi- Hostel funds continued EDMONTON (CP) Soft Machine, a hostel operated by volunteers, will continue to get funds from tlie provincial gov- ernment to provide overnight accommodation for young transients. "I don't think the interim contract entered into by my department will be Neil Crawford, minister of health and social development, said following a visit to the hostel. "My intention is that the con- tract, whereby the department purchases accommodation for some young transients, will be continued until the end of De- cember, and reviewed at that time." Mr. Crawford said Soft Ma- chine provides a service for a genuine need. The hostel gets about a month. can government official frtorc her home in a northern subur of the capital kid nap fear swept the city. As reports spread of her dis appearance, there were wide spread fears she was seized b the same people who kidnappec Mexican airports director JulU Hirschfeld Monday. But spokesmen for the inte- rior ministry and the attorney general's office said the woman Alejandra Lopez de Contreras was actually taken away b plainclothes police to make declaration in a divorce cat against her husband, Eafae Contreras Bravo. Hirschfeld was kidnapped ap parently by leftists urban gue rillas and released Wednesda night after a three-million pes ransom was paid. HIGH INSURANCE IIALSTEAD, England (AP) Robin Hugessen, a chastity be manufacturer who sells most his product in the United Stati has taken out an insurance po icy which will pay if h is killed by members women's lib. CONESTOGA MOTOR HOME by McDONELL MANUFACTURING 1502 2nd AVE. S. IETHBRIDGE, ALTA. NEED A MOTOR HOME? SEEI PRICEI AND RIDE IN THE smoothest riding Molor Homo mods today THE Home with tho least noise while travelling. THE only Motor Homo available today with tho riding quality of a big car. VERY good gas mileage. WE invito you to seo our 55