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Lethbridge Herald, The (Newspaper) - October 3, 1974, Lethbridge, Alberta The Lctltbridcje Herald VOL LXVII-248 LETHBRIDGE, ALBERTA, THURSDAY. OCTOBER 3. 1974 15 Cents 40 Pages Canada oil export charge remains same Herald Ottawa Bureau OTTAWA Energy Minister Donald Macdonald Wednesday revealed that the government will not increase its controversial export charge on crude oil sold to the United States for November, keeping it at a barrel for another month. The announcement, made after National Energy Board officials had advised the Minister verbally Wednesday noon instead of in the normal written form, comes after speculation that recent world oil price in- creases would lead inevitably to an increase in the ex- port charge by about 35 cents a barrel starting in November. Mr. Macdonald said that the export charge was set with reference to comparable oil prices in the U.S. for non-Canadian oil. Despite the fact that Middle East oil has just gone up about 33 cents a barrel, affecting Canadian imports this Macdonald indicated that comparable U.S. oil prices have not As a result, the federal government's eastern oil sub- sidy program, designed to keep imported oil prices for Canadians equal to domestic oil prices, will have to ab- sorb the latest 33-cent increase without the prospect of getting additional revenues from the federal crude oil export charge. I Minimum development sought Unique east slope should be preserved Oil import subsidy program plagued by financial woes By JEFF CARRUTHERS Herald Ottawa Bureau OTTAWA The federal government's imported oil subsidy program, designed to keep domestic oil prices in Eastern Canada frozen despite rising world oil prices, is close to trouble, if it is not already in trouble. Energy Minister Donald Macdonald made on Wednes- day the first reference in months to the probability that the federal government might have to dip into the federal till to pay mounting bills under the federal imported oil sub- sidy program. And he later added in an in- terview that federal taxes might just have to go up as a consequence. Beef qotas may bring 'retaliation' By PETER BUCKLEY WASHINGTON United States has warned Ot- tawa that it will retaliate against Canadian agricultural imports unless the U.S. gets some relief from a new Cana- dian quota on cattle and beef imports, informants said Wednesday. Details and timing of retaliation has apparently not yet been decided. Recommendations have been forwarded to the White House for a final ruling. No restraints are expected until the U.S. cattle industry and other public groups have been given an opportunity to com- ment. But an agriculture depart- ment source said the retalia- tion might not be limited to quotas against Canadian beef and cattle, similar to those imposed by Canada. It might affect imports of other agricultural semen and pork products were south across the border. There was no immediate in- dication how much time would be allotted for public com- ment, and thus how much time would elapse before any restraints could be imposed on Canadian imports. The threat of retaliation was raised in mid-September during an unpublized visit to Ottawa by senior officials from the U.S. state and agriculture departments. The problem is that revenues from the federal ex- port tax on crude oil the United States are already threatening to fall behind the escalating costs of the im- ported oil subsidy program after only a half year of oper- ation of the two programs. In theory, the extra money we take from the Americans in crude oil prices for Cana- dian exports is always suppos- ed to cover the subsidy for im- ported oil in the east. But political factors, which are now working to keep the export charge frozen at a barrel, and economic and political problems, which con- tinue to push imported oil costs up, are working at cross purposes. In recent months, export sales of crude oil have been dropping slowly but surely. And so have revenues from the export charge that are supposed to be used for the imported oil subsidy. Meanwhile, the trend on the east coast is for imports to at least continue at current levels and over the longer term to increase. Second, Canadian oil impor- ters are just now being pre- sented with higher oil bills dating retroactively to shipments since Jan. 1, to ac- count for adjustments in the way Middle East and Venezuelan governments charge for the oil now controlled by the oil- producing nations. Steinhauer criticizes treatment of Indians By STEVE KRUEGER CALGARY (CP) Alberta Lt.-Gov. Ralph Steinhauer de- parted from the traditional political neutrality of his of- fice Wednesday night to criticize the department of In- Seen and heard About town Teacher and aldermanic candidate Bill Cousins saying after Wednesday's all can- .didates forum when he saw some former students in the crowd he was glad he hadn't flunked them. dian affairs for its treatment of Canada's Indians. Mr. Steinhauer, a full- blooded Cree and Canada's first native Queen's represen- tative, told a University of Calgary audience Canada is facing a real crisis today in Ottawa over Indian problems. "It has become a hot political issue but my lips now must be officially sealed on political sometimes I feel like I am go- ing to blow up." He said that before Indians obtained the vote and were given the right to run their own tribal affairs, "band- business was looked after by the government but it wasn't a democratic: was a dictatorship." He said problems that In- dians had 45 years ago are just being solved now, and added that "unless something is done soon, the" problems we have today will still be around in 25 years." Mr. Steinhauer. who has been active in Indian causes for years as a founder of the Indian Association of Alberta and a councillor of the Saddle Lake Indian Band, said he finds it increasingly difficult to "stay non-controversial." "Sometimes" I wonder if I did the right thing in accepting this appointment." he said. "I think I might have been able to help solve some of these problems if I had remained a private citizen." IILL QROENEN photo Instant waterfall Following the cleaning of a conduit leading from Jensen Reservoir south of Magrath, the excess water used to flush dirt from the tunnel pours over a natural spillway near the reservoir, creating a temporary water- fall. The irrigation distribution system for Southern Alberta will be shut off about Oct. 20 and the water level in Jensen Reservoir will be maintained during the winter. Farmers wishing to fill dugouts from irrigation water must do so before Oct. 20, according to irrigation officials. Inside Classified........22-26 Comics............20 Comment...........4 S District............17 V Local Markets...........21 S Sports...........11-13 Theatres............7 5 TV.................6 Weather............3 S Youth..............8 VV LOW TONIGHT 40; HIGH FRI. 40; ffi SNOW FLURRIES. ffi 'If only you'd been draft Alberta Ammonia fails to wind up ECB hearing By AL SCARTH Herald Staff Writer CALGARY Alberta Am- monia Ltd. failed Wednesday in a bid to wind up energy board hearings on its huge ammonia plant proposed for Raymond. J. L. Fingarson. counsel for the company, was told by George Covier, chairman of the Alberta Energy Resources Conservation Board, that the board did not plan to rash proceedings. Dr. Govier then adjourned the second day of bearings on the world's largest fertilizer plant until Oct 16. The board has other commitments until then, he said. Mr, Fingarson had attempted to convince the board that the hearings could be completed if the board would sit a half-hour past its usual adjournment time. But Dr. Govier ruled that interventions by other petrochemical companies and the Lethbridge chapter of the Committee for an Indepen- dent Canada would take longer than half an hour to hear. Raymond Mayor Bob Graham was slated to speak as ammonia. in favor of the million first phase of the million project His submission was also delayed until Oct. 16. Ted Tillack. a University of Lethbridge student representing the C1C, was un- successful in three earlier bids to have the board delay the application. In answer to questions from Mr. Tillack. Duncan Sim, president of Alberta Am- monia, said the project was not an attempt to circumvent export controls on natural gas by shipping it south disguised Mr. Sim said the project was exactly what it appeared to be export of ammonia to the United States. Eric Connelly, treasurer and chairman of the board of Alberta Ammonia, refused to divulge to Mr. Tillack the proposed financing of the pro- ject. Delicate negotiations with both Canadian and American banks are not yet completed, he said. Dr. Govier supported the plea for confidentiality Mr. Sim repeated earlier assurances that the project would meet Alberta fertilizer demands first despite a com- mitment to Farmland In- dustries Inc. of Kansas for a minimum 95 per cent of the plant's annual production of 840.000 tons. "We see that area from Calgary south supporting a market of 40.000 tons, not im- mediately, but over Mr. Sim said. Present forecasts were for an annual shortage of 20.000 tons in the South, he said. The company would commit up to tons of its annual production to Canada. "Oar best estimates in- dicate we will be stretching to sell 42.000 tons of anhydrous ammonia in Alberta." he said. Asked by energy board staff if the plant could provide more fertilizer to Alberta if required. Mr. Sim said the company would contribute its share. "If it were in the im- mediate future with only two plants, we would have to stick to 42.000 tons." But he said more fertilizer could be made available if the second and third phases of the plant go ahead. In the mean- time, it was only one of several proposed for the province, he said. EDMONTON (CP) An integrated, closely manag- ed land use policy for the eastern slopes of the Rocky Mountains with preservation of water sheds getting to priority has been recommended by Alberta's Environ- ment Conservation Authority following a year-long study into land use and resource development in the area. The authority, in a report containing 232 recommen- dations, says the major emphasis should be on watershed protection, recreation, tourism and the use of renewable resources, with secondary emphasis on urbanization and suitable industry. The report, released Wednesday by Environment Minister Bill Yurko, says developments outside the national parks should be integrated with those inside the parks, urbanization should be largely confined to es- tablished communities and natural transportation cor- ridors and the development of major tourist centres should be limited to suitable locations .outside national parks. The authority says that sur- face coal mining should be developed with "great caution, both by careful site selection and by limiting the number of sites that can be worked at any one time and the tonnage of coai or other material that can be extracted each year, and parts of the slopes free of coal mining altogether." "In no case should a surface mining operation be per- mitted unless the total benefits to the province can be shown to outweigh the total disbenefits. The report says certain lands should be reserved for a limited use or a limited com- bination of uses, such as wildland recreation areas, provincial parks and wilderness areas. New br-sen- sitive areas should be protected by limited access. Specifically it recommends rivers and creeks above the confluence of the Qldman and Livingstone Rivers be protected as "wild rivers." The resolution of land use conflicts should be keeping in mind lhat both renewable and non renewable resources are to be utilized. Where conflicts can- not be resolved, preference should be given to the preser- vation of the renewable resources base rather than to the extraction of non renewable resources. The authority says the area should be zoned for land use and resource development ac- cording to the available resources and the need for them at any particular time- Such zoning should be con- tinuously updated and the responsibility for this and the settlement of conflicts should continue to be performed by those agencies and departments that now have or will be given statutory respon- sibility for them. To achieve this, the regional planning commissions and the planning and co-ordinating mechanisms of the departments and agencies in the provincial government should be strengthened. The report recommends that non renewable resource reserves be set aside and not leased for development and extraction except in a sequen- tial way. The authority describes tne slopes as "one of a kind in Alberta, in Western Canada. in Canada and indeed they are renowned throughout the world for their grandeur and beauty aid for the en- dowments bestowed upon them by nature." "It is the presence of special qualities found nowhere else that lead to the clear conclusion that they (the FoottrilJs) should become un specialite de la province." Civil service returns to normal By MURDOCH MacLEOD Herald Staff Writer Operations at provincial government offices in Lethbridge seem to be back to normal today following a return to work request by the Civil Service Association of Ted Buchanan, president of the Lethbridge branch of the CSA, said the branch made a determined effort to tell all its members the strike is over. More than 200 attended a meeting Wednesday night at the Labor Club, he said. "I think this (the strike) will undoubtedly make a very significant said Mr. Buchanan, "We shouldn't run into these problems over again. "They should be sitting down and bargaining in good faith with us from now on." E. N. Pickard, manager of the Alberta personnel ad- ministration office, said everything is back to normal as far as he knows. Provincial employees were also reported to be back on the job at the Lethbridge Correc- tional Institute, the court house, the provincial court, the social development office in the Sun Life building, and provincial offices on Lethbridge Community College campus. Bill Broad, president of the CSA, said in a telephone inter- view from Edmonton today the union had considerable dif- ficulty in getting some groups back to work. Some members felt the strike should continue, and some picket lines were not lifted until this morning. Meanwhile, in Edmonton, the CSA and the provincial government announced that "positive" contract negotiations will begin Mon- day. "We have had an undertak- ing from the government that everything is Mr. Broad told The Herald, "There are no pre ordained positions." Gov't to end grain strike OTTAWA