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Lethbridge Herald, The (Newspaper) - October 20, 1973, Lethbridge, Alberta LETHBRIDGE October Lalonde's new million dollar baby By Maurice Western, Herald Ottawa commentator Those Jewish emigrants It can only be guessed what lies behind the outbreak of the Arab-Israel war but the spectre of another master-race in the making must have added fuel to the burn- ing frustration of many Arabs. The territory won by the Israelis in the 1967 war has been gradually consolidated by resettling of Jewish emigrants from the U.S.S.R. The influx of the high quali- ty of emigrants coming from Russia must have been particularly painful to Egypt's Sadat who has been losing a steady flow of engineers, technicians and scholars because of an inefficient economy and poor job opportunities. After Israel's spectacular victory in 1967 the Jews in Russia who had to put up periodically with harassment and pogroms since tsarist times felt a resurgence of anti-Semitism. Particular- ly the younger ones were gripped by an urge to emigrate to their "home-land" because they felt branded as second-rate citizens and had nothing to lose in a country where books on Jewish culture and history were prohibited and Zionism was a treasonable crime. At first the authorities were taken aback by the flood of applications but when astonishment gave way to anger the Jews were confronted by the brute vindictiveness of the authorities. Loss of jobs, the cutting off from scientific con- tacts, the barring from conferences and access to scientific material and the delay of permits extending to months and years were meted out to them. Agitators took to the streets, were beaten up or arrested, petitions were smuggled out of the country and the Soviets came under heavy pressure from the West to allow Jews to leave. Although Moscow is very sensitive about Jewish emigration which has resulted in the departure of more than Jews from mainly scholarly, scientific and artistic ranks, the in- cidents went totally unpublicized in Russia. No doubt this was for the good reason of halting a further avalanche of dissidents who abhore intellectual double-think and who believe that in the "real world" they can escape the need of masquerading their true feelings. Lately, however, the Soviets have come under heavy counter-pressure from the Arabs. The Israelis have already aroused a great deal of resent- ment because of their superior organiza- tion in industry and agriculture but now through the Russian Jewish elite the Arabs believe them to be highly trained specialists Israel's power would be disproportionately boosted. The Russians reacted coldly to the Arab's demands of halting emigration to Israel but now they must be laughing their heads off. Not only have they com- plied with Western demands and proved their magnanimity by letting the emigrants leave, but they also got rid of thousands of potential trouble-makers. The Panarabian dream has never come closer to reality than now and as a result the West finds itself in the unpleasant situation of being blackmailed about oil supply. Inshallah there must be many more possibilities hidden in the shifting sands of Arabian deserts. Business under Rising Sun An announcement out of Toronto that the Mitsui Mining Co., Ltd.. Japan's largest coal mining company, and Tokyo Boeki Ltd.. a trading firm, will join a Toronto based mining outfit to explore coal lands in northeastern British Colum- bia emphasizes the growth and change in Japan's economy. Since 1971. instead of buying mineral resources abroad. Japanese companies have increasingly been setting up joint ventures or buying up stock in existing companies to acquire needed resources. In other words. Japanese business is going "multinational." To date, the U.S. has the sole distinc- tion of exporting more companies than it exports, but the 70s may bring Japan, along with northern Europe, into this rarefied atmosphere. The boom in Japan's economy can be illustrated by the fact that the Dai-Ichi Kangyo Bank of Tokyo is the largest bank in the world outside the U.S.. hav- ing replaced Barclays of Britain in this spot. It is surpassed only by Bank America. First National City and Chase Manhattan. Each has assets of more than S25 billion. Five years ago there wasn't a Japanese bank among the top 10 banks in the world. there are four. The same growth pattern is evident in industry. Among the 10 largest industrial con- cerns outside the U.S. are three Japanese firms Nippon Steel. Hitachi and Toyota Motor. And 79 Japanese com- panies are listed among the top 300 in- dustries outside the U.S. This is the largest national group. Canada has 20 on the list, with Alcan Aluminum leading. Of the 10 companies which had the biggest increases in sales in the past year, three are Japanese firms Oji Paper. Yamaha Motor and Maruzen Oil. Molson Industries is the one Canadian firm among the 10. with a 50.2 per cent increase in sales. According to Japanese government figures, that country's direct overseas investment in fiscal 1972 totalled billion. Fifty per cent of this was for mineral investment and the bulk of that went to British Petroleum for the ac- quisition of Abu Dhabi Marine Areas Ltd, by Japan Oil Development Co. With this pattern of increasing Japanese investment abroad and Canada's need for capital, it is likely that more Japanese development will settle in this country. It is therefore of interest to note that several large Japanese companies have recently taken steps to shoulder social responsibilities both in their homeland and abroad. The board of directors of Mitsui Mining Company has agreed to put aside two to four per cent of pre-tax profits for projects devoted to the public good. This could amount to million an- nually. Kanebo Co.. Ltd.. which ranks 106 among industrial concerns outside the U.S.. has stipulated that its 12 overseas companies should put 10 per cent of profits into social benefit programs in the host countries. What this will mean in occidental terms remains to be seen. Japanese methods of doing business have been criticized because of the close relationship between banking, business and government. And labor manage- ment relationships are quite different from the Canadian experience, springing as they do from a totally different culture. The Canadian worker may be offended at the faint whiff of patriarchal benevolence in company instituted programs. On the other hand he may be reassured by the thought that manage- ment really cares. It will also be interesting to watch the reaction of the Committee for an Independent Canada to this possible in- flux of foreign capital. Weekend Meditation In debt to friends Every man who has achieved anything in life is in debt to his friends. When asked the secret of his life. Charles Kingsley replied. "I had a friend." What would have happened to Luther without Melancthon. who in some ways was a much greater man? Calvin owed his position at Geneva to Farel. It was truer of St. Paul then possibly any other that what he became he owed in large part to his friends. There was the amazing Ananias who greeted him in his blindness and stupor with the incredible words. "Brother Saul." Rgmember Ananias was one of those Paul had vowed to wipe off the face of the earth! Then there was Barnabas (whose name means "son of whom Paul needed desperately as he encountered much suffering and was tempted by dis- couragement, especially when they fell into violent disagreement. Good friends are often most valuable when they disagree with you. A man is not a good friend who dares not say, "You are wrong." Without Barnabas Paul would never have had the friendship of John Mark whose merit he praised in a letter to Timothy. Luke, whom Paul called "The Beloved Physician." was one of his dearest friends, though mentioned only three times in the New Testament. .In his second letter to Timothy when Paul tells of the desertion of some weak supporters, who were either ashamed of his imprisonment or afraid of the danger, he added, "Only Luke is with me." As author of tho book bearing his name and of the "Acts of the Luke was not merely a great scholar and doctor, but an ex- traordinary man. Among Paul's most valued friends were fellow-tentmakers Priscilla and Aquila. The fact that Priscilla is mentioned before her husband is unusual, but she was an unusual woman. Driven from Rome when Emperor Claudius expelled the Jews, they acquired a house in Ephesus where their hospitality provided a home for many travelers. It was also a meeting place for such brilliant pup- ils as Apollos. Forced to move a number of times, they were also located at both Corinth and later at Rome. Paul gave them the highest praise one can give friends when to the church at Rome he wrote, "Greet Priscilla and Aquila who for my sake risked their own necks." One of Paul's most charming friends was Onesiphorous, to whom he makes a touching reference in writing Timothy, "The Lord send mercy unto the house of Onesiphorous, for he oft refreshed me and was not ashamed of my chains." Some people are so depressing one would walk a block to miss them and there are those who cheer you with their very presence. Paul's humanity, his appalling suf- ferings and lonely imprisonment made him need men like Onesiphorus. There are many people who are friends in prosperity, but when adversity strikes they are noted for their absence. Paul had many more friends. It is worth noting how many of them were women, since Paul is maligned as a misogynist. He was nothing of the sort. If society followed his teachings on marriage it would he a belter world. PKAYER: Among my many blessings. I thank you God for loyal and true friends who have put up with my faults and helped me in rough places. F. S. M. OTTAWA It is not sur- prising that members of Parliament are ranging well beyond the important matter of child care in considering the government's new family allowance measure. So they should. For the original scheme, fathered by the King government, was intended to counter an ex- pected post-war recession by distributing new purchasing power widely through the economy. Marc Lalonde's new billion dollar baby also has an economic purpose, being designed, it would seem, to counter an inflation which the government regards as un- avoidable. Mr. Lalonde. in his speech on second reading, did not put the matter in quite this way. Nevertheless, he came rather close to it; noting that the interim increase in allowances to S12 was intend- ed "to mitigate the effects of rising prices" and observing also that the new average pay- ment "can be increased from time to time to take account of changes in the cost of living." This will be done by Order-in-Council subject to approval by House resolution. As viewed by the Minister, the scheme is markedly supe- rior in all respects to its predecessors; not all of which were implemented. Some of his claims seem in- contestable. For example, the plan has been carefully developed to permit the pay- ment of different rates in the various provinces, which should remove one source of discord in inter-governmental relations. Mr. Lalonde also observes with approval that the taxa- tion of family allowances will achieve a substantial degree of selectivity. It is clear, of course, that even greater selectivity might have been achieved if the government. against NDP opposition, had stood by its FISP convictions. For the earlier and abortive scheme, in part a response to criticism by the Economic Council, would have denied payments to those of higher incomes who do not need them. Another virtue of the pro- gram, in the eyes of its parent, is the contribution it will make to "the develop- ment of a more equitable regional redistribution of in- come across Canada." Mr. Lalonde's estimates are none too helpful in clarifying this claim. Of an annual total of million dedicated to the program, no less than million, according to his fig- ures, will flow to the central provinces and the two most westerly provinces. Evidently something less than a bonanza will be left to be shared by the other six and the two northern territories. As described by the Minister, this most attractive plan seems to offer something to every family with children at no expense to anybody. To quote Mr. Lalonde: "It Compromising behind closed doors By James Reston, New York Times commentator WASHINGTON Despite America's massive airlift of planes and ammunition to Israel, it would be a mistake to assume that the Nixon ad- ministration's objective is to assure another spectacular Israeli victory in the Middle East war. Washington is not trying to restore the military situation that existed before the Arab attack, which produced a diplomatic stalemate. It is trying to get a compromise ceasefire that will open the way to a negotiated settlement, and it is measur- ing its supplies to Israel with this in mind. Thus there is a difference between Israel's aims and the Nixon administration's aims. Nixon agreed to re-supply Israel for a very simple reason. Israel has now lost about 3.000 men. between 600 and 700 tanks, and a third of its air force. The Arab losses in men. planes and tanks are even greater, but the Arabs have the manpower for a war of attrition and Israel does not. and the Soviets are re- supplying the Arabs faster than Washington is supplying the Israelis, particularly with sophisticated ground-to-air missiles which have been neutralizing Israeli air power. Still, the Israelis, despite their losses, may be able to win the critical tank battle now raging in the Sinai, and even drive the Egyptians back across the Suez, but the feel- ing in official quarters here is that such a spectacular Israeli victory and Arab humiliation would merely restore the status quo. evening relations between the two sides, and make a diplomatic settlement even more difficult than it was before the latest war started. So the president is sending both the Soviets and Israelis a belated message. He knew about the Arab build-up of arms along the canal and the Golan Heights, but there was a critical intelligence failure on the political decision of Egypt and Syria to attack. Nixon and Kissinger were surprised by the attack, and assume the Soviets knew all about it and got their people out of the area on time. But Washington is still making allowances, or even excuses, for Moscow's failure to live up to the spirit of the Nixon- Brezhnev Moscow agreement. This excuse is that if Moscow had informed Washington that an attack was imminent, Washington would have informed the Israelis, who would then have been in 2 position to niakt; a pre-emptive strike against Moscow's clients. It's all a lit- tle Byzantine and totally hostile to all those proclamations of peaceful cooperation between Nixon and Brezhnev, but that's what happens when principles and power conflict. Even so, and despite this cynical treachery, Washington and Moscow are thinking primarily about themselves. They are keeping in close touch with one another, while supplying planes, tanks and bombs that kill Arabs and Israelis, but not Americans or Soviets. The battle in the Sinai goes on, and the American and Soviet fleets expand and manoeuvre in the Mediterranean, but Moscow and Washington avoid any clashes another. Kissinger and Dobrynin. the Soviet ambassador, are in close contact. There is a scrambled hot line between the Israeli embassy here and Jerusalem, and Kissinger is in touch with Golda Meir at the flick of a switch. But mainly, the big powers that fuel the war are in charge, and they have at least one common interest. They don't want to get direrliy involved. The Soviets have been sending cargo planes and ships to the Arab ports, under the watchful eyes of the American sixth fleet, in the Mediterranean, and the U.S. has been sending C-140 and C-5A transports full of bombs to Israel. Israeli ships have been seen loading American tanks on American television, and they have been passing over Soviet submarines .that could blow them out of the water, but the big powers produce the ex- plosives, and let the little powers fight it out. The cost of all this to Israel and the Arabs is enormous and tragic, but Washington and Moscow, divided as they are. have a common purpose. If neither side can win. they want a compromise settlement, without a victory for one side or a humiliation for the other: in short, a military stalemate which will lead to a diplomatic com- promise. Brezhnev in Moscow has connived at an Arab victory, despite his promises to Nixon, and Nixon has countered him by mounting an emergency supply of planes and bombs and tanks it will take three weeks for the tanks to get there but the main thing is that the hot line is working between here and Moscow, and the big powers are now working together for a ceasefire with the Arab and Israeli forces "in place." Washington is trying to per- suade Israel that even if it wins the tank battle in the Sinai, the strategic problem for Israel has been changed fundamentally by this war. The official view here, right or wrong, is that Moscow is determined to provide the most sophisticated modern weapons to the Arabs, that the Arabs have the manpower and now the skill to use Soviet weapons, and that it is better to compromise than face the prospect of a war of attrition against the Arab millions, backed by Soviet modern weapons. Obviously, the Israeli government rejects this thesis, but it is up against not but and Cairo or Damascus against Moscow Washington. These big powers disagree about many things, but agree that Israel must pull back from Suez and begin negotiating and compromis- ing and giving up much of the territory she captured in the 1967 war. Nixon and Kissinger don't say this publicly, but they are pressing privately, not for an Israeli victory, but for an Israeli compromise. BERRY'S WORLD may be useful to illustrate the effect of taxing the family al- lowance. Assuming that the national norm of per child is paid; a non-taxpayer would receive a net benefit of the average Canadian tax- payer would receive a net benefit of the taxpayer in the highest tax bracket would receive a net benefit of At the same time families without children have nothing to fear. "We intend to fund these higher allowances without having to increase taxes to do so." Even in Ottawa, it is not openly suggested that money grows on trees. Presumably, therefore, the government in these times of inflation foresees a vast new flow of revenue. Although John Turner, earlier in the week, gave up more than millions with the tax-in- dexing scheme there is still the additional million to accommodate Mr. Lalonde's bold new program. It may occur to ill-disposed tax payers that it was within the power of the government to use this vast windfall for the purpose of lowering tax rates. If there is no widespread sense of loss, it is not because a subsidy has dropped from the skies but because the Government, in its wisdom, has chosen to de- prive the taxpayer of money which he has not yet clutched but which he might otherwise have hoped to enjoy. Mr. Lalonde states the matter in a more felicitous way. "The government has decided that priority in the allocation of government revenues will be given to the financing of increases in fami- ly allowances." There is no none in the minds of the par- the allocation of so large a sum will be of benefit to many in this inflationary era. How much will actually go for child care and how much for payments on TV sets or automobiles, the govern- ment has no means of es- timating. Hopefully, some may go to help young families meet the very high prevailing mortgage rates, although Mr. Lalonde does not present the bill as a housing measure. What does seem reasonably clear is that, without some check to inflation, the advan- tage will be lasting only if the government is prepared to in- ject about half a billion an- nually into the plan, given the present price trend. For the inflation bite, as measured over the past twelve months by Mr. Turner, is equivalent to half the new money being pumped into allowances. Experience with unemploy- ment insurance has accus- tomed, although it may not altogether have reconciled, the public to these seven figure programs. With rising prices, very high permanent costs are obviously being built into government. There is ap- parently no disposition to in- quire into possible conse- quences if inflation turns out to be less than perpetual: if. in some unthinkable tomorrow, the accepted wisdom should prove faulty and the economy slow down. hope I'm wrong about this, but there seems to be some evidence that the Japanese are trying to buy the world." The LctWmdge Herald 504 7th St. S. Lethbndge. Alberta LE'THBRIDGE HERALD CO. LTD.. Proprietors and Puolishers Published 1905-1954. by Hon. W A. BUCHANAN Sncond Class Mail Registration No 0012 Member of The Canari'ar. Press and the Canadian Daily Newspaper Publishers' Association and the Audit Bureau ol Circulations MOWERS Fcinor and Publisher THOMAS H ADAMS. Gonnr.-il DON PILLING WILLIAM HAY Editor Associate GOilor ROYVILLS DOUGI.ASK. WALKER Advornsinci Mimngor Editorial Pngc Editor a "THE HERALD SERVES THE SOUTH" ;