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Lethbridge Herald, The (Newspaper) - October 9, 1974, Lethbridge, Alberta The LetHbrtdge Herald VOL. LXVII-253 LETHBRIDOE, ALBERTA, WEDNESDAY, OCTOBER 9, 1974 15 Cents 84 Pages Farmers need incentives, not controls Whelan BOISE, Idaho (CP) Agri- culture Minister Eugene Whelan told a chemical association conference Tues- day that farmers need higher returns and new incentives instead of price controls on food. He told about 250 conference delegates he didn't think they could be gained through con- trols on exports. U.S. wants quick pipeline approval OTTAWA (CP) The United States government has served notice it wants quick approval for a pipeline to move Alaskan natural gas to markets in the rest of the country. A 42-page fact sheet accom- panying President Ford's speech on a wide-range of eco- nomic matters Tuesday in- dicates he is willing to enter the fray over which of two competing pipelines gets the go-ahead. The fact sheet, released here, said environmental and economic analysis of a trans- Alaskan pipeline and a proposal for a line through Canada should be completed early next year. Canadian Arctic Gas Pipeline Ltd. has applied to Canada's National Energy Board and the U.S. Federal Power Commission (FPC) for permission to build a pipeline down the Mackenzie' River Delta to transport both Alaskan natural gas and supplies from the Canadian Arctic. "You won't get that with price controls on food... and I don't think you're going to get that with -controls on ex- ports." The U.S. administration moved to control food costs with a price freeze last year and, more recently, with em- bargos against export -ship- ments of such commodities as grain, but American farmers held back their goods during the freeze, then flooded the market when it was lifted. Mr. Whelan said fanners still need higher prices if they are to produce enough to feed an increasingly-hungry world. "The real question is the relative importance we put on food and on he said. Inflation results only when "consumers insist 'on a wage increase for every increase in grocery bills." Prior to his speech, the agri- culture minister said the Canadian wheat board ensures that traditional customers receive a fair share of sales while retaining ample supplies for domestic needs. DAVID BLY photo Fire destroys home Little more than ashes is left of a home levelled by fire Tuesday afternoon near Del Bonita, 30 miles south of Magrath. Owned by farmer Ken Robinson, the recently-remodelled house, along with two work- shops, was almost completely burned by the time Magrath and Cardston volunteer firemen arrived. Firemen and neighbors put out a burning strawstack and prevented the fire from spreading to nearby barns and haystacks. family was not home at the time. Cause of the fire and amount of damage have not been determined. 'Bad news, your Majesties. We're running out of Inside Classified........28-32 Comment...........4 Family..........37-40 Local Sports...........25-27 Theatres............7 TV.................6 Weather............3 LOW TONIGHT 40; HIGH TOURS. 60; CLOUDY, COOLER. PWA deal 'attempt to reduce province's vulnerability' Grain strike measure expected by weekend MEDICINE HAT (CP) Premier Peter Lougheed said Tuesday that the Alberta government purchased a con- trolling interest in Pacific Western Airlines in an attempt to reduce what he described as the province's "basic vulnerability." In response to a question at a public meeting the premier said the takeover "fitted in with the government's deter- mination to develop Alberta transportation networks, one of the real keys, real problems to Alberta growth." He said the province is vulnerable because of its dependence on agriculture and its associated market in- No Herald on Monday The Herald will not publish Monday, Thanksgiving Day. Display advertisers are reminded of the following deadlines for advertisements. Ads to appear Tuesday, Oct. 15 and Wednesday, Oct. 16 must be received by 5 p.m. Thursday, Oct. 10. Ads for TTmrsday, Oct. 17 by 5 p.m. Friday, Oct. 11. Classified ads received up to a.m. Saturday will appear Tuesday. stability, and on non, renewable energy resources. "We've got to use the next decade to make it a more diverse province in an economic sense. The province could diversify in four main areas agricultural processing, tourism, petrochemicals from the processing of resources and by taking advantage of the province's geography as a gateway to the North. Air transportation was one of the "real keys." Predicting that air freight to tiie north will increase tremendously in the next decade, Mr. Lougheed said it is important to have air trips starting from and going through Alberta. He described PWA, the third largest airline in Canada, as a "unique carriers" with potential to carry overseas. He said the province had lost one airline when Wardair moved from Alberta to Toronto and there was danger PWA would develop strictly into a British Columbia Yukon carrier. When it became evident a group from the private sector would not buy the airline, the govern- ment decided to make the "dramatic move in the long term public interest" Alberta's future was the over-riding consideration in determining whether the government would get in. something the premier said the government would prefer to have done. OTTAWA (CP) There were indications Tuesday night that a bill to end the Vancouver grainhandlers' strike may be law by the end of the week. "We're asking for necessary consent from all parties to get this thing dealt with before the a government spokesman said after the bill passed second in prin- a 137-to-77 vote in the Commons. Only the Progressive Con- servatives voted against the bill, which would legislate an end to the dispute between the 550 grainhandlers and five elevator companies. Rising prices slacken pace OTTAWA (CP) The consumer price index rose six-tenths of one per cent in September, the lowest month-to-month increase this year, Statistics Canada reported today. Higher mortgage costs and rent increases helped push up the housing component of the index as this segment accounted for about four-fifths of the over-all gain. Seasonal declines in prices of fresh fruit and vegetables and a drop in beef prices moderated the increase in the food index, which was up four tenths of one per cent. Prices of processed fruits and vegetables, dairy products and sugar were among those going higher. The September index level of 170.6 was 10.9 per cent above the level of a year ago. The index number means that a mix of consumer items which could be bought for in 1961 cost in September, in August and last September. The purchasing power of the 1961 dollar was down to 59 cents in September. The consumer price index is based on a 1967 survey of fam- ily spending patterns and weights of major component indexes are: Food, 25 per cent; housing, 31 per cent; clothing, 11 per cent; tran- sportation, 15 per cent; and other items, 18 cent. The largest August-to- September increase of com- ponents of the all-items index was a 1.3-per-cent increase in the household operation index. .The restaurant food index was up 1.2 per cent and the clothing index 1.1 per cent. The largest gain during the 12 months to September was an 18.1 per cent rise in the restaurant food index. Next were 13 per-cent increases in the indexes for food eaten at home and household operation. About one-third of the Sep- tember increase in the clothing index was due to ser- vice.charges, such as laundry, drying cleaning and shoe repairs. An increase of two-tenths of one per cent in the trans- portation index in September was due mainly to higher new car and tire prices. The health and personal care index was up four-tenths of one per cent in September as prices for drugs and toiletry items rose. Ford proposes higher taxes, spending cuts WASHINGTON (AP) President Ford has challeng- ed Congress and the United States public to accept higher taxes and less energy as part of an anti-inflation program that also includes jobs for the unemployed and stepped-up production to halt food-price increases. Congress is showing itself willing to cooperate up to a point. Comments by many law- makers indicated that the point at which many of them would balk is enactment of a five-per-cent surcharge on the tax levied on incomes of more than for a family and for a single person. "I am aware that any pro- posal for new taxes just four weeks before a national elec- tion put it sidered politically unwise Ford-said-Tuesday at a- televised joint session of the House of Representatives and Senate. "But I do say in all sincerity I will not play politics with America's future. This is the acid test of our joint deter- mination to whip inflation." He asked his nationwide audience to "grow more, waste less drive less, heat less share with others." Congressional leaders mov- ed fast on two measures on which Ford asked for im- mediate action: a resolution to hold spending at- billion, billion less than earlier estimates, and leg- islation he said would clear the way for the government to pur billion into the ailing home market, enough for 000 homes, by tional as'well as insured moi erhment- Canada watching U.S. inflation plan Seen and heard About town Damp autumn paddlers Jamie Wiskerke and Drew Saly keeping warm among a pile of leaves at Henderson Lake Paddy Bowman in flowery oration in French. OTTAWA (CP) Canada will be affected by President Ford's new anti-inflation program but it will take tune to determine how much, two federal cabinet ministers said Tuesday night. The president's announce- ment and accompanying background documents must be examined carefully to assess the full impact, Exter- nal Affairs Minister Allan MacEachen and Finance Minister John Turner told re- porters. They spoke after conferring with William D. Eberle, dis- patched by the president to brief U.S. trading partners on the wide-ranging economic program outlined Tuesday by Mr. Ford. Mr. Eberle left Ottawa following a short news conference for similar visits to Brussels, Paris, Bonn, Rome, London and Tokyo. Mr. MacEachen said Canada could be affected by several of the Ford proposals, including a plan to boost automobile gasoline mileage 40 per four years, boost food production and cutbacks on oil consumption. Trade Minister Alastair Gil- lespie said higher gasoline mileage may involve technical changes by U.S. auto manufacturers with sub- sidiaries in Motors at Oshawa, Ford at Oakvilie and Chrysler at Windsor. But Mr. Eberle salved fears that a proposed one-million barrel-a-day cut in U.S. oil consumption would mean a reduction in Canadian oil ex- ports to-U.S. customers. "It's.the kind of an area where we're locked he said, speculating that purchases from other oil-exporting countries would be cut first. Grain deal raises doubts about Soviet harvest Analysis By HEDRICK SMITH New York Times MOSCOW The surprise attempt by the Soviet Union to purchase 3.4 million tons of American corn and wheat represents a breakdown in an agreement between former president Nixon and the Soviet leader Leonid I. Brezhnev, in June 1973, for an exchange of agricultural infor- mation. At the behest of President Ford, the Continental Grain Co. and Cook Industries agreed on Satur- day to cancel the SSOO-milHon sale to the Russians. It is also causing same doubts here about the degree of optimism previously expressed by Moscow and foreign ex- perts about this year's Soviet farm crop. Under the Nixon-Brezhnev agreement and a follow-up accord signed last November, the Soviets promised to give Washington advanced and detailed infor- mation on current harvest prospects to help the U.S. agriculture department monitor world supply and demand and thus anticipate any big purchases. Although several American agricultural working groups have come to Russia and have been allowed to tour farming areas one is here even now U.S. officials report only a token improvement in the flow of agricultural information that the Soviets provide the United States. For example, the American embassy here stiU has not received production statistics on the Soviet winter wheat crop harvested in June and does not expect to get them until the annual production Figures are made available some time ear- ly next year. It is the lack of such basic and vital in- formation that caused the agriculture department to be caught so modi by sur- prise in 1972 and again this year. American officials bad expected that the Soviets might purchase up to one million tons of .corn and a modest amount of wheat, perhaps tons. But the Sc viet attempt to purchase 2.4 million tons of corn and one million tons of wheat, though still modest compared to the huge 1972 grain deals, came as a jolt. "Toe trouble is that the Russians still operate on the same old com- mented one western specialist on Soviet trade. "They operate hi a secretive, way." Another reason Washington was caught unprepared was that the Americans had accepted the optimistic Soviet forecasts about this year's grain crop. The agriculture department put out its own figures estimating a harvest of from 200 to 205 million tons of grain, down a bit from the record level reported last year but well above any other Soviet harvest. Moreover, only 10 days ago, some American officials were saying that world grain prices were unattractively high for Moscow too high for the Russians to go into the market merely to replenish stocks. At that time the Americans saw no pressing Soviet need for grain this year. Now, American and other western grain specialists are searching for some ex- planation why the Soviets unexpectedly went into the market so heavily. Some are beginning to reassess their own estimates of the likely Soviet harvest this year. They note, for example, that this year the Soviet press has been considerably less optimistic and more modest than a year ago in the tone of its descriptions of the harvesting. Moreover, it is said, the weather has been unfavorable for com. Planting came late and then the weather turned cool in late spring, slowing growth, so that in the summer when the com should have been ripening, it was still growing. As for wheat, the growing regions of Siberia and Kazakhstan which gave such a boost to last year's production had light snow and little moisture to help this year's summer wheat crop develop. Harvesting is still under way in those areas. But the real problem for Moscow has been its own drive to improve the diet of the Soviet people by increasing their in- take of meat, which has entailed an am- bitious campaign to increase and improve livestock herds. The Soviet success has been con- siderable in this area. As of Aug. 1. Soviet farms reported herds of 84 million cattle. 56.7 million bogs. 142.6 million sheep and goats, and million poultry. By of- ficial statistics, cattle were up three per cent, bogs op five per cent, sheep and goats up four per cent, and poultry op eight per cent over the year before. Meat and poultry production overall was up 10 per cent. The expansion of livestock herds re- quires rapid expansion of the output of com and other feed grains. One theory among U.S. officials is that livestock growth has outstripped growth of com production and thus forced the Soviet Union to go into the American market, even at high prices, to avoid having to slaughter off part of its growing herds. ;