Lethbridge Herald, The (Newspaper) - October 2, 1974, Lethbridge, Alberta
Canada double winner In energy-sharing agreement By JEFF CARRUTHERS Herald Ottawa Bureau OTTAWA Canada has come out of last month's negotiations on an international energy sharing agreement as a double winner. In the event of a world oil supply crisis, Canada maintains sovereignty over her own sub- stantial oil production. And at the same time, Canada would join with other countries in the agreement in sharing the burden of a world oil shortage, thereby minimiz- ing the impact of such a crisis on Eastern Cana- dian consumers who now depend heavily on im- ported oil. And the "share the shortage" principle em- bodied in the draft agreement hammered out last month in Brussels promises to become more and more for Canada in the future, as Canada's own oil production starts to decline and her dependence on imported oil tar sands oil and-or offshore oil and gas come on- stream. Government sources confirmed Tuesday that under the draty international agreement on energy sharing, Canada would not lose control over its large exports of crude oil to the United States in time of a world oil crisis. Canada would not be obligated to increase ex- ports to the U.S. above traditional export levels, the sources said. In fact, Canada would remain free to cut back exports, if the oil was needed to supply Canadian consumers in the east. The government sources added that Canada would not likely cut the United States off even in the event of a major oil shortage, because even when a new crude oil pipeline is built to Montreal, there will not be sufficient capacity to carry more than about 25 per cent of current ex- port volumes to the east via pipeline. Tankers might be able to carry another 10 to 20 per'cent east, via the Great Lakes or the Panama Canal. The provision" of the Brussels agreement would not require Canada under any circum- stances to share her domestic used to serve Canada west of the Ottawa Val- any of the countries participating in the energy sharing agreement specifically the United States or Japan. Government sources suggested that federal energy officials went to the Brussels energy sharing negotiations realizing that any agree- ment which would give away Canadian sov- ereignty over domestic production, even in the event of world oil shortage, would likely be un- acceptable on political grounds in Canada The fact that a proposed International Energy Agency, to be responsible for the energy sharing agreement, will be dominated by the United States, Japan and Europe under a weighted voting scheme provided some substance to Cana- dian fears concerning forced oil sharing. Under the draft agreement, participating nations would agree to share oil opposed to actual oil the event of an energy crisis. Thus, at most Canada would face having some of the foreign oil destined for Eastern Canada diverted by joint agreement to other countries hit harder by an oil shortage. See story on Page 42. The Lethbridije Herald East views VOL. LETHBRIDGE, ALBERTA, WEDNESDAY, OCTOBER 2, 1974 15 Cents 58 Pages 'Dead9 lady feels well PHILOMATH, Ore. (AP) Edith Smith says she feels re- markably well for hav- ing been dead nine months. Mrs. Smith, operator of a tavern here, recent- ly received a notice from the Oregon board of revenue stating she had died Jan. 7, 1974. The state wanted to know if she had quit working, inasmuch as she was dead, or if her estate would continue operation of the tavern. Mrs Smith had a few questions of her own. She wrote the depart- ment of revenue a letter asking. "Was my death accidental and can I collect double in- "I'm past 60, my hus- band is past 62 and my mother is she con- tinued "My death came as a nasty shock to peo- ple our age. "Should we seek monetary compensation for our mental anguish from you or your in- 600 civil servants in South on strike Winning sweepstakes 'a shock9 KAMLOOPS. B.C. (CP) Julia Nelson has wen and her 72-year-old husband Bjrnard probably has trimm- ed his last putting green. Winning after buying sweep- stakes tickets for 45 years was "such a shock I really don't know what to do with the money." By MURDOCH MACLEOD Herald Staff Writer At least 90 per cent of the Civil Service Association of Alberta in Lethbridge is involved in the day-old strike, the president of the Lethbridge branch of the CSA said today. About 600 people are out in Lethbridge, 'and most of the district was either out Tuesday or would go out Ag policies 'mismanaged hodge-podge9 TORONTO (CP) The Star says an unpublished report written for a federal govern- ment advisory body states Ca- nadian agricultural policy is a mismanaged "hodge-podge" of programs that costs the public more than f 1 billion a year. In a copyright story from Ottawa, the newspaper quotes the report as saying that con- sumers pay half the amount through artificially high food prices shoved up by farm marketing boards and the other half through taxes that go to aid the farmers. The Star says the 114-page report was written by J. D. Forbes, professor of marketing at the University of British Columbia, (or the Canadian Consumer Council. It adds that tbe report was submitted last May but the government has delayed publication. It says tbe report was "leaked" to the paper. "today, Ted Buchanan said. The district points include Magrath, Taber, Fort Macleod and Blairmore, he said. Fort Macleod, with about 60 civil servants, and Blairmore with about 50, have their own CSA branches. One government operation in Lethbridge is not affected by the strike the Sifton House receiving home, housing minors in the care of the department of health and social development "We can't jeopardize these children on issues like said Mr. Buchanan. Sheriff Edward Kisel said the courthouse is still being picketed. The chief clerk of the provincial court said-she, the judges and tbe prosecutors are still working, but other court staff are off. An inquest scheduled for today was set over indefinitely because there was no court reporter. E. N. Pickard, manager of the Alberta personnel administration office, said it appeared no buildings or departments are closed entirely. But the majority are severely handicapped, he said. Meanwhile, in Calgary today Labor Minister Bert Hohol rejected union charges that living costs raise for provincial civil servants was designed to weaken tbe position for a new contract. Dr. Hohol said in an interview the seven per cent or raise was meant to help civil servants meet rising living costs and would not be used as a lever to get tbe union to alter demands during contract negotiations which were to have started Monday: Meanwhile, the CSA today launched court action against the provincial government to determine whether the government acted legally in offering salary increases jto civil servants. BILL GROENEN photo f Round-up time A small herd of inixed breed cattle is moved a- long a coulee about 10 miles south of Lethbridge, typical of fall ranching activities throughout the South as stock is moved from summer range to winter range or feedlots. Many livestock producers are complain- ing that beef prices are not high enough to cover costs of finishing cattle. Most consumers, on the other hand, find meat prices in the supermarket are high enough for them. Seen and heard About town Mary Graham thinking of investing a modest fortune :S she won in a city hall S hockey pool. 'Fiver Inside Classified........30-34 Comics............20 4 District............15 Family..........37-39 Local Markets...........21 Sports...........25-28 3 Theatres...........7 Weather............3 g LOW TONIGHT 40; HIGH THURS. CO; CLOUDY, COOLER. PM opposes legislating end to grain handlers strike Herald Ottawa Bureau OTTAWA Prime Minister Pierre Trudeau said Tuesday his government does not want to introduce legislation into parliament to end the western grain handlers dispute until all chances of a settlement outside the bouse have been exhausted. He said in an interview it was bis understanding that negotiations were still going on and that all possibilities of a settlement were still being explored. Later in tbe commons Labour Minister John Munro was questioned about progress in tbe settlement, by Lincoln Alexander He said management has refused the latest offer with respect to the grain handlers' dispute. He asked if the minister was still optimistic regarding a settle- ment between tbe two parties. Mr. Munro said the proposals made Monday for consideration by the union and the grain companies set out fact that there were two remaining unresolved issues. One was interpretation of tbe Cost of Living Allowance clause and tbe other was onion Turner says oil debts may bring recession WASHINGTON (CP) Fi- nance Minister John Turner of Canada said today there may be a recession if steps are not taken soon to resolve tbe prob- lem of oil debts by consuming countries His comments at a news conference after a speech to the annual meeting of tbe International Monetary Fond (IMF) were more sombre than recent statements about economic prospects. In his speech to the 126- tnember world organization, Turner advocated giving the IMF political power to dis- cipline its members He told reporters that there is an awareness among other delegations that the balance- of-payments problems of oil- importing countries can be solved only by co-operation. Estimates of the combined oil debt for this year of countries which most import oil ran as high as billion. Turner said this problem "if not resolved property within six months to a year, could provoke a He endorsed establishment of a fond which (he IMF would operate to lend money to both rich and poor countries with oil debts There have been several proposals to expand an existing fund set up by the IMF to provide loans at concessionary rates to under- developed countries. The ex- panded fond, under these proposals, would lend at com- mercial rates to tbe rich countries as well. Turner confirmed rumors that he had been approached about being chairman of a new ministerial council being set up by the IMF to give it greater political direction. This so-called interim council would set op a permanent policy group. He said he weald want to be assured that tbe five leading industrial powers will take the new council seriously. The fi- nance ministers of these the United States, West Germany, Japan, Britain and held periodic meetings in connection with the current economic crisis. Turner said Canada has been informed regularly and said it was "useful" for the leading powers to attempt to resolve issues in a small groop. pensions, said the minister. The union has accepted this proposal, he said. But, he add- ed that several of the com- panies had rejected it. However not all companies have rejected it He said he wanted to await a reply from them all before he could con- firm without doubt that there was a flat final rejection. If that occurred then the government might consider introducing legislation, be said. Eldon WooUiams (PC-Cal- gary North) said tbe grain handlers" strike has cost tbe producers of grain millions of dollars in demurrage charges. In addition Canada has lost a part of her grain markets. He asked if the government would assure the house that upon settlement of the strike, either by agreement or by legislation, the government would take "reasonable steps" to avoid a railway strike or any other strike that would impede or stop the movement of grain. The movement of grain was of im- portance not only to the west but to the whole economy of Canada Mr Woolhams rose to pro- test He said be did not like th washy" answer of the prime minister. Alberta gas as feedstock By AL SCARTH Herald Staff Writer CALGARY Canadian In- dustries Ltd. which is oppos- ing use of Alberta natural gas to supply two ammonia fer- tilizer plants in Southern Alberta, wants the gas to dou- ble its own production in On- tario. "We would like to consider Alberta as a William Taylor, CIL's manager for agricultural chemicals, told the Alberta Energy Resources Conserva- tion Board Tuesday. The board is considering a joint application from PanCanadian Petroleum Ltd. of Calgary and Tyler Corpora- tion of Dallas for a Brooks ammonia plant to produce up to tons of fertilizer a year from natural gas. CIL opposed the application and a second one from Alberta Ammonia Ltd. for an ton plant at Raymond. The chemical giant said ex- isting producers of ammonia can easily meet expanding' Canadian demands and that nearly all the ammonia from the two proposed plants would be exported. Under cross-examination by PanCanadian counsel Dennis Hart, the CIL official said his company has been studying an expansion of its Sarnia, dirt., ammonia plant for a year. Now the biggest in Canada, the CIL plant produces tons of ammonia a year, from Alberta gas primarily for Canadian use. The planned ex- pansion would more than double that capacity by tons a year Mr. Taylor said. A second plant would produce tons a year of urea, an upgraded form of am- monia. Processing the gas here and shipping it east by rail would cost about more a ton than piping the gas east LOT processing, he said. Mr. Taylor said the Sarnia ammonia operations created 350 to 355 jobs in Ontario bas- ed on Alberta gas since 1967. Another 100 jobs would be created by use of Alberta gas in the expanded operation. It would be on the same scale as phase one of the plant proposed for Raymond by Aiberta Ammonia now being considered by the board. The board reserved its deci- sion Tuesday on the proposal by PanCanadian for Brooks and opened deliberations on the Alberta Ammonia proposal. The combined operations would consume three per cent of Canada's en- tire annual gas production. John Hopwood, counsel for CIL, questioned a request from PanCanadian that it be given additional gas to produce op to tons a year instead of the plant's design capacity of 402.500 tons. Without the extra produc- tion, there isn't likely to be a surplus for Alberta farmers because of export com- mitments, be said. Toe plant has no distribution system to provide local farmers with fertilizer and the request came at the last minute, be said Don Alberts, president of the Eastern Irrigation Divi- sion Landholders Association, told the bearing tie is hopeful the plant would meet local needs Monday, Mr. Alberts, representing farmers in the million-acre district, said local requirements should be met first Tuesday, he said discussions had been held with PanCana- dian and Tyler. The fanners support this application and would like to sit down and assure a supply for Brooks district, he told the board. Mr. Hart said the proposal would "clearly serve the public interest" and assure a supply of fertilizer to Southern Alberta. Spinola death plot revealed LISBON (Reuter) An as- sassination plot against General Antonio de Spinola was revealed as 7.000 jubilant left-wing trade unionists early today celebrated Portugal's new leftward shift at an emotional mass meeting in Lisbon's main bullring. A high-ranking government official, who asked not to be identified, told reporters Tuesday night that extreme right wing counter- revolutionaries had planned to kill Gen. Spinola last weekend. He said this was to be a pre- text for a right wing uprising against the government, which includes both socialist and Communist ministers. Greek students protest ATHENS (CP) Greek stu- dents led by extremist Communist elements surged through Athens Tuesday night protesting the fate of Cyprus and denouncing United States policies- for that erikbattled island republic. Defying a government ban, the students advanced in a roaring but orderly tide from Athens University to the region of the U.S. embassy nearly two miles away. The demonstration came amid predictions of an immi- nent announcement by Premier Constantine Karamanlis that Greece wiU vote in early November in its first free elections for nearly 10 years. Both branches of the Greek Communist party had de- nounced the protest action in advance. The party was legal- ized by Karamanlis after his return from exile following the overthrow in July of the military junta which had ruled Greece since 1967. The demonstration was organized by Maoist and Trotskyist student organizations, tbe Revo-' tationary Communist Move- ment of Greece and other smaller groups collaborating with them. Hostages still held SANTO DOMINGO (AP) Negotiations with leftist terrorists to free United States diplomat Barbara Hutchison and six other hostages appeared to have broken down today in tbe sixth day of tbe siege of tbe Ve- nezuelan consulate.