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Lethbridge Herald, The (Newspaper) - October 16, 1974, Lethbridge, Alberta 4-THE LETHBRIDQE HERALD Wtdnwday, October 18, Canada's position puzzling Canada's abstention from voting on the United Nations resolution to invite the Palestine Liberation Organization (PLO) to participate in the debate on the Palestine question is puzzling. No real harm is likely to result from PLO par- ticipation while some good may ensue. There can be no real peace in the Mid- dle East until the Palestine question is dealt with. That this question can be solved without input from the Palestinians is highly unlikely. The most reasonable proposals are apt to be re- jected by the Palestinians if they have no part in formulating or debating them. Voting to invite PLO participation in a UN debate is not a surrender to murder and barbarism, as the Israeli am- bassador declared. No assessment of the PLO was intended by the vote. Just as membership in the UN does not imply approval of a state, the vote to have the PLO participate in a debate ought not to imply that it has been approved. The UN action might be instrumental in lessening the terrorist action associated with PLO. It was partly frustration at being ignored that led to the formation of guerrilla groups and their employment of terrorist tactics. Giving the Palestinians a voice in the world forum should reduce the frustra- tion and the extremist activity it prompted. Restricting debate to UN members, the position taken by Canadian am- bassador Saul Rae, is undoubtedly the practice to be followed normally. But the fact that the Palestinians are a stateless people makes this debate an extraor- dinary one requiring an exception. Ap- parently the great majority of nations see it that way even if Canada does not and so the debate will proceed. It is to be hoped that Canada does not pursue its position to the point of refusing to par- ticipate in the debate. Madness on the highway While it is comforting to know that rugged individualism is still alive in Canada, it is not so comforting to find it thriving on the nation's highways. British Columbia is reducing speed limits on its highways in an effort to cut down on traffic accidents and fatalities, having studied statistics from the United States. Ontario, having studied presumably the same statistics, prefers to argue that the lower death rate can be attributed to reduced traffic, not to reduced speed, and that reducing the speed limit is not called for. The Ontario report, which fortunately is only preliminary, is going to be widely quoted by all those whose driving habits seem to say, "Don't bug me with facts, man, I've got to get to Calgary in an hour and a half." Already the Alberta Motor Association shows preference for the On- tario report. And yet, the facts are not all that hard to interpret. The U.S. National Safety Council has published figures to show that the death rate on U.S. highways fell 23 per cent in the first half of 1974, by which tune a national speed limit of 55 miles an hour had been imposed. There are no figures available yet on the traffic rate for that period to indicate whether this decline from the first six months of 1973 can be attributed to reduced speed or reduced traffic. However, statistics are now available for U.S. turnpikes and they show that while mileage travelled dropped only 14 per cent the death rate declined a dramatic 60 per cent. That's pretty per- suasive evidence that it was the lower speed limit, rather than a decline hi traf- fic, which was the responsible factor. It is persuasive, that is, to all but rugged in- dividualists who want to save tune and wind up losing all they have. ART BUCHWALD Supermen have feelings, too WASHINGTON For several years now, Secretary of State Henry Kissinger has been portrayed in magazines and books as Super- man. Whenever there was trouble in the world, Henry would dash into a phone booth near the White House, change into his blue bodystocking costume and fly off to settle the matter. It came as a shock the other day to hear Henry admit he was no longer Superman. I was passing the phone booth and I saw Henry inside. I said to myself, "Henry's going to settle the oil crisis." I waited to see him fly out of the booth on his mission, but he just remained there. I finally said anxiously, "why haven't you changed into your "I'm not going to be Superman any Henry said. "I'm sick and tired of working miracles." "But, Henry, if you won't be Superman, what will we all "That's not my problem. Being Superman means you have to travel a lot. I want to spend more time with Nancy." "I can appreciate I told him, "but you have an image to uphold. The media made you what you are today. You just can't go into a phone booth and say you're not com- ing out." "Why should I come Henry replied. "The House is picking on me; the Senate is picking on me, the press is picking on me. You know Supermen have feelings, too." "You can't pay attention to criticism, Henry. If everyone loved you, you wouldn't be doing your job." "Everyone used to love he said. "Yes, but that's because they didn't like Nixon. You always looked so much better compared to him. Once be resigned, you were more or less on your own, and some people decided they loved you and some people decided they didn't." "I think Superman should be loved by Henry said. "I don't mind criticism, if it's fair. What I don't like is un- fair criticism." "Nobody likes unfair I told him. "I'm the first one to he added, "that I'm not perfect. What I don't like is other people telling me I'm not perfect." "Nobody likes to be told they're not perfect, Henry. The thing to do is to rise above it and prove they're wrong. Now get into that silly costume and fly off to the Mid- dle East and straighten out our problems." "I'm not going to do it unless I have assurance that people will stop picking on me." "You have my word, Henry. I'll make sure that there is not one line in the newspapers questioning any of your past actions." Henry started taking off his pants. he said, "I'll do it one more time. But if I hear any squawks from anybody about what I did, it's the last time I go into this phone booth." I held his pants while he took off his shirt. "I don't know if I ever told you this, I said, "but you have lovely legs." "Don't try to change the he said as he took off his shoes and socks. This is everybody's last chance. If they don't like what I'm doing, let them get another Super- man." "They'll like it, I assured him. "They'll like it" And so last Tuesday as people looked op into the sky they saw a weird object One person said "It's a another person said "It's a and then everyone cried out at once "No-FTS And we all slept better that night I A I 3fr T i "Ferdinand said if fluoridation is passed he'll never drink water An Aegean crystal ball By C.L, Sulzberger, New York Times commentator ATHENS The solution of the Cyprus crisis is essentially predicated, on three things: continuation of a Caramanlis regime in Greece; maintenance of some kind of cogent government in a con- fused Turkish political situation; and a successful American diplomatic Intervention that produces tangible evidence of a desire for compromise on Turkey's part. The two communal leaders in Cyprus itself, Clerides and Denktash (representing Greek-speakers and Turkish- speakers) have kept their own bilateral talks going against great odds and achieved some success. And Archbishop Makarios, whose return might touch off trouble, has been persuaded to stay away from -the island at least for a .while. Thus the key problems are all external to Cyprus itself. Caramanlis is likely to gain a majority in next month's elections here (the first in a decade) thus reinforcing his position; otherwise he will lead a coalition. The Turkish outlook is less clear; but the army there always remains the ultimate power force and its- leadership must be per- suaded. Can Washington achieve that? Although Caramanlis bitter- ly resents the second (August) Turkish invasion of that island because it was aimed at his policies, he has kept his cool. (The first Turkish invasion, in July, was aimed at the junta which sponsored a Cypriote Caramanlis would probably even ignore the hysterical prejudice against a "federal solution" and accept a reasonable Cyprus federa- tion if the Turks show moderation. But the Greeks are skep- tical enough to doubt the Turks own instincts for reason. They count on American pressure and in this respect Caramanlis is twisting Washington's arm by threats to undermine the U.S. strategic position. The premier was an avid student of de Gaulle's diplomatic blackmail techniques. Right now, the word "Cyprus" symbolizes all Greece's problems: inflation, a shaky economy, uneasiness about potential officer plots, the monarchy-versus- republic question, con- stitutional reform and widespread public demands for a purge of junta leaders and their.nastiest tools. If Cyprus can be pacified, under a new accord accep- table to Athens and Ankara (as well as their Cypriote much of the pressure here will be relieved. The Greeks now seem to favor total demilitarization of an independent Cyprus, remov- ing not only all Greek and Turkish troops but also British bases. The Soviet bloc and the Arabs both favor this approach. Since London is try- ing to save defence farthings everywhere, this idea should prove a winner. Caramanlis has his own team working on economic problems. Solving them, of course, depends on what happens in the whole Western world; but he seems to reckon that with discipline and restraint, the Greek picture can be substantially improved within two or three years. My own guess, when regarding the clouded Greek looking-glass, is that Caramanlis will come back even stronger, that a republic will be established with strong presidential authority, that he will be elected to that office, and that there will be a limited ptifge of principal junta officials, a purge con- ducted under regular legal procedures at a time when public passions have subsided. And Cyprus? To accomplish all the above a stable and equable formula must be found to pacify that unhappy island. Whether we or the Greeks or the Turks or the Cypriotes like it or not, the buck is quietly being passed to Washington. Levy's solution to oil crisis By Anthony Lewis, New York Times commentator The first clear warning of the impact that the new oil .prices could have on world economics and politics was sounded last January by Walter J. Levy, the oil economist. He laid out the figures on what oil would cost the consuming countries, and pay the producers, and concluded that urgent steps were necessary to avoid "international economic dis- order." Levy suffered the usual Cassandra's fate. Nobody listened. Or if politicians and financial leaders did listen, most found his figures so scary that it seemed best to ignore them and pretend everything would turn out fine. Nine months later, the pretending had to stop. Levy's figures proved all too 'realistic. They underlay the sudden apocalyptic state- ments by President Ford and Secretary Kissinger about oil prices, and the gloom at the World Bank and monetary meeting in Washington. The problem he sees as overwhelmingly urgent is financial: the effect of oil prices on the balance of payments in both the ex- porting countries and those that must import oil. What follows is a necessarily simplified statement of his analysis. The oil exporters are ac- cumulating enormous funds. At this moment their revenues are running at about billion a year. Much of that piles up in their reserves because they simply cannot spend it. By next July their holdings of gold and foreign exchange will probably be larger than those of all the in- dustrialized countries com- bined. The exporters will want to invest that money. But there are only a handful of countries that have the Uusiuess and the economic outlook to look like good investment risks: the United States, West Germany, perhaps three or four others. The oil money, unless checked, will pour into those few places, mostly the United States. These few countries are also in the best position to bolster their payments posi- tion by trade selling goods to the oil producers. Meantime, most other countries in the world will not be able to attract investment or do enough trade to keep their payments balanced. They will therefore have no way to pay for oil unless someone lends them the money. Who? If the United States allows itself to be the chief beneficiary of the oil countries' investment and trade, it (and West Germany) would take on an implied com- mitment to help the less for- tunate. We would not be prepared to see Italy and In- dia and Greece and Britain to choose some possibilities at random collapse because of inability to buy oil. But help from the United States and one or two other Western countries alone would not be workable. In effect, the oil producers' money would be invested safe- ly in the U.S., and we in turn would lend it on unsafe terms to weaker credit risks. As a way of "recycling" oil revenues, that is not accep- table financially or politically. Nor does the International Monetary Fund have anywhere near the resources to finance world oil needs without risk to its soundness. Instead, Levy suggests that the United States and other major industrial countries in- vite the oil iMuduceis to snare the responsibility through a new international financial organization. This fund would get the bulk of its money from the producers" surpluses. Im- porting countries would con- tinue to'pay for part of tbor ON THE HILL By Bert Hargrove, MP for Medicine Hal Canada's 30th Parliament has now been underway one week and there is ample evidence that this first session will be very busy and I per- sonally hope, very productive. The traditional throne speech was completely up- staged by anything but tradi- tion outside the Senate and the House of Commons. The Indian demonstrations were nasty and ugly to say the least and those who witnessed the three hour spectacle must have been deeply disturbed as I was It should be clearly un- derstood that those Indians in- volved were not representing the National Indian Brotherhood organizations, and that the demonstrators included generous numbers of left wing activists Maoists, Marxists and others of the clenched fist cult. Before the week was out however the National Indian Brotherhood was calling for an "independent" investigation into the clash, and suggested it was the riot squad who rioted. The throne speech was long and rambling with its customary vagueness and generalities. Inflation was the major topic and yet in his debate speech lasting one and a half hours, Mr. Trudeau mentioned the word only once, near the end and made no further comment on this key subject. From where I sit in the House, directly opposite the prime minister, it was easy to see him put aside a handful of notes presumably on inflation and then end his speech very abruptly. The throne speech contained just a hint of better days ahead for the Alberta-Central Canada energy confrontation, when it stated steps will be taken "to ensure that the price of Canadian oil and gas is regulated in a manner which will encourage necessary exploration and development in Canada.'.' Two subjects not mentioned in the throne speech but emphasized in Mr. Trudeau's speech, were the BNA Act and bilingualism including Quebec provincial Bill 22. With respect to the BNA Act he proposed no constitutional changes but simply to es- tablish the right of Canada to make such changes without recourse to the United Kingdom. Other throne speech items that I particularly noted: There was very little on agriculture and the current West Coast grainhandler's strike was only mentioned with no indication of high priority. restraint of its own spending was in- dicated. financial and other support for small business. to the UIC Act. Plumptre's Food Prices Review Board will be continued until at least the end of 1975. assistance to buyers of moderately priced housing who have not owned a home before. for payment of allowances to spouses aged 60- 65 of old age payments but not effective until October 1975. most intriguing item that has special potential for Medicine Hat and Redcliff: new program to fund air- ports located in developing areas of the country." based reforms on parliamentary rules. Mr. Whelan was the first cabinet minister to speak in the throne debate. He covered such subjects as the CEMA egg issue, and broadening the National Farm Products Marketing Council by including consumers, business and labour. Mr. Whelan also indicated he will ask Parlia- ment to conduct an investiga- tion of Canada's beef cattle in- dustry. LETTER Calgary Power rates oil needs themselves but would borrow from the new fund to cover the "un- sustainable burden" of higher prices. Or there might be arrangements for strapped countries to pay for oil in blocked local currency, as has been done with some U.S. food shipments. The proposed arrangement is not suggested as any cure- all. Real problems of im- mense resource transfer would remain. The need for conservation in the use of oil would still be great, not only for long-term strategic and economic and environmental reasons but immediately, as Levy put it, "to show our seriousness." What might be gained is time and a chance for order. It may well be, for ex- ample, that some poorer countries would eventually default on loans from the new fund. But any default would then be localized and specific, not a paralysis of the whole world system. If the United States made such a proposal, or one like it the producing countries might kill it by refusing to take part Then, in Levy's view, the U.S. would have to take emergency measures to exclude oil money from investment in this country to the extent that it coaM be identified. The pur- pose would be not only to avoid excessive ownership of American land and business by the oil countries, but to make them spread their air- plus funds elsewhere. In any event his view is that the best hope of a reasonable response from OK producers is for as to make reasonable proposals. Walter Levy's formula is of course not the only possibility, but his analysis is compelling. Merely to summarize it is to make plain the large dif- ficulties in the way of toe needed international action. But the alternatives are more ferrate to contemplate. We read with interest the story, Calgary Power to ask rate hike of over 15 per cent, The Herald Oct. 8 and in par- ticular the fourth and fifth paragraphs, relating a rate adjustment to Calgary Power's purchase of the city power plant. would also seem to put in question the economic assumptions of the CH2M-Hill report. "That report took into account earlier hikes granted Calgary Power totalling 20.4 per cent, but then based its conclusions on a future annual Calgary Power hike of only five per cent____" We would like to point out that economic conditions have changed significantly since the time when the CH2M-HH1 report was prepared. Even since the Public Utilities Board's May decision on our 1972 first application for a rate increase, interest rates have increased from 8V4 per cent to 11% per cent on new borrowings. Perhaps people are not aware that in the generating business the additional cost of sophisticated pollution control equipment is also subject to very rapid inflation. From 1973 to 1974 for example, steel costs for precipitator installa- tion at our Wabamun plant have catapulted from an es- timated per ton for supply, fabrication and erec- tion to per ton. At the same time, costs have es- calated for gas and other fuels as well as labor. These increases are all happening at a time when de- mand for power is increasing in our service area (by 11 per cent in 1973, 13 per cent in 1972) and the company must duplicate over the next eight years all the generating capacity built between 1911 and 1973 to meet these demands. If the City of Lethbridge had decided not to sell its power plant to Calgary Power and become' a wholesale customer, the city would now be facing'the problem of ex- panding its generating capaci- ty under these same es- calating economic conditions. Earlier hikes granted Calgary Power totalled 20.3 per cent (15.1 per cent general rate increase, 5.2 per cent to make up for lost revenue due to changes ordered by the board in the company's method of paying income However, 11 per cent of the customer and wholesaler's annual bill is returned to him through the provincial government's' income tax rebate. ELAINE ADAMS Calgary Power Ltd. Calgary Letters are welcome and will be published providing: identification is included (name and address are required even when the letter is to appear over a they are sensible and not libelous; they are of manageable length or can be shortened (normally letters should not exceed 300 they are decipherable (it greatly helps if letters are typed, double spaced with writers do not submit letters too frequently. The Uthbridge Herald Alberta LETHBRIDGE HERALD CO. LTD. Proprietors and Second dm Man AetfMrMon No 0012 OLEO MOWERS. Editor and PUWWber OONH PBJJMO Managing ROYF MILES DONALD R OORAM General Manager "W-i" ROBERT M PEMTON Manager DOUGLAS X WALKER THE HERALD SERVES THE SOUTH" KENNETH 6WWETT Manager ;