Lethbridge Herald, The (Newspaper) - September 16, 1971, Lethbridge, Alberta
FOWfiAST FRIDAY The Lcthbridtje Herald VOL. LXIV-tto. 234 ALBERTA, THURSDAY, SEPTEMBER 16, 1971 PRICE NOT OVER 10 CENTS TWO PAGES j-__ Beiiion urges reform of money system V By KEVIN DOYLE LONDON (CP) Finance Minister fidgar Benson of Canada today urged a fundamental reform of the world monetary system to prevent any outbreak of a devastating international trade war. Benson (old an emergency meeting of the 10 rich- est non-Communist Group of re- cent United States measures to protect the American economy pose a serious threat to the freedom of world trade. Benson, this year's chairman of the group, said a full examination of the current monetary system should be made by the International Monetary Fund. "We must proceed at once with the process of currency realignment and proceed as quickly as pos. sible with the reduction of trade restrictions through- out the the Canadian minister said. "It would facilitate the immediate adjustments re- quired if our American colleagues could tell us more precisely what conditions have to be met before they will remove the 10-per-cent import surcharge." Benson was referring to a U.S. decision announced Aug. 15 to impose the new import duty and bo sus- pend the gold convertibility of the dollar. Forced restrictions Benson said the present instability in international monetary markets has forced a number of countries to restrict capital flows in an effort to ease pressure on their currencies. "The real danger is that this pattern of restriction will be extended to the trade field. "This points to the urgent necessity of dealing with the present situation before it degenerates into a pro- cess that will be extremely difficult to reverse." The minister it if unlikely any satisfactory set of exchange rates can be negotiated while the im- port duty remains ill effect. He said extensive action is needed to "dissipate the serious clouds that now hang over the future of international trade." Pierre-Paul Schweitzer, managing director of the IMF, urged the Group of 10 today to adopt a four- point compromise plan for overcoming the monetary crisis. Schweitzer unveiled a plau that conference sources said included these points: 1. A general realignment in Lhc exchange rates of the world's leading currencies, including an upward re- valuation of the major European currencies and the Japanese yen and a downward devaluation of the U.S. dollar. 2. A new reserve system m which special drawing rights in the IMF would assume some of the reserve role backing currencies now held by gold. 3. An effort 1o siring tire U.S. balance of pay- ments from its current deficit to a surplus, in which the U.S. allies would assume a share of the burden. 4. After tlie achievement of these steps the time would be ripe to remove the 10-per.cent duty on im- ports. No clear-cut solutions are expected at the end of the two-day emergency conference of the group which began Wednesday. At the close of Wednesday's discussions, Benson told reporters most of the time had been taken up with an outline of the major difficulties now standing in the way of international agreement. Finance ministers and central bank governors at the meeting today will begin looking for common meth- ods of dealing with the instability resulting from the U.S. decision Aug. 15 to suspend the dollar's gold con- vertibility and impose a 10-per-cent supplementary duty on imports. Wednesdaj''s discussions, while producing no agree- ment, illustrated the wide gap now separating the U.S. position from that of Europe. The European proposals for resolving the crisis are backed to a large extent by Japan and Canada. Must devalue dollar Italian Treasury Minister Mario Ferrari-Aggradi, speaking for the European Common Market, fold the meeting the U.S. must agree to devalue the dollar in terms of gold as part of a general currency realign- ment. This would be a first step in creating a new monetary system. Such a realignment, he said, should be on the ba- sis of fixed exchange rales among all currencies in- volved, but wider margins of upward and downward movement should be permitted. This type of action poses considerable political dif- ficulties for central governments and, while most rep- resentatives agree it is necessary, nobody is eager to make the first move in that direction. Ferrari-Aggradi's oilier proposals included: of the 10-per-cent additional tariff on Imports. phase-out of the dollar's role as the leading reserve currency and development of increased spe- cial drawing rights on the International Monetary Fund to replace gold as a backing for currencies. The Italian minister said a general realignment of currency values, some moving upwards and others down, would maintain Ihc average price of gold against major currencies and would not provide a to gold producers such a.s llu.s.sia or South Africa. U.S. Treasury SccrHary John Conually rcilcralcd American for nn increase in Ihc value ol currencies in countries which now have a balancc-of- paynienls surplus. He outlined the U.S. argument that his country's annual billion payment deficit lias been caused main- ly by massive external aid and military cxpondilures fol'owing the Second World War. Connnlly indicated n continuing unwillingness lo in- crease Iho price of go'd, a move Iradilionally shun- ned by American lenders largely because they fear giving unacceptable advantage to Russia and wlu'te- rulcd South Africa and appearing weak to voters. Food price increase is largest in decade STUDENTS RIOT -Two helmefed students hurl mololov cocktails against riot police from one of three at the sile of new Tokyo International Airport near Tokyo Thursday morning. About police were mobil- ized to protect officials and workers requisitioning the land where opposing farmers and leftist students have been held. Three riot police were killed in the incident. Jobless figures encouraging-Lang OTTAWA (CP) Manpower Minister Otto Lang says that if the lalest unemployment figures are examined closely there are encouraging trends despite an increase in the seasonally-ad- justed rate of unemployment. Mr. Lang caled a news con- drops Unemployed total to OTTAWA (CP) Unemploy- ment dropped to 455.000 at mid- Augusl from in July, but the seasonally-adjusted rate rose to 6.5 per cent from Ihe July rale of 6.3 per cent Figures released loday In a joint report by Statistics Canada and the manpower department show that the number of unem- ployed was actually 5.1 per cent of the labor force in August, compared with 5.7 per cent in July. But tile seasonally-adjusted analysts look at to examine longer-range trends, rose as students left the labor market. The seasonally-adjusted rate is computed by a complex formula designed to provide for the normal winter slumps and the summer peak of activity. The report showed that the decline of in the number of unemployed included in the 14-24 age group. SAME AS IN 1970 The 5.1 per cent actual unem- ployment rate is the same as in August, 1970, when per- sons were without work. During that one-year period, employ- ment rose by while the labor force went up by But compared with month- earlier figures, total employ- ment in Canada decreased for the third consecutive year be- Iwecn July and August. The total labor force of was less than in July. The report said the reduction in unemployment was due to a decrease in female em- ployment, which more Uian off- sel an increase of in male employment. fereuce shortly after the latest figures were released Thursday, and has produced figures which, he said, show that the Canadian labor force in increasing at much greater rate than any other industrialized country. In the last year, he said, Can- ada's working-age population in- creased by 2.4 per cent, the labor force rose by 2.9 per cent, employment rose by three per cent, and unemployment went up by only 1.6 per cent. "Employment figures have to be looked at very he told the half-hour news confer- ence. STAY IN MARKET He said the increase in the seasonally-adjusted rate was primarily due lo more young people remaining in Ihe labor market in August. This could not be predicted in advance. If the seasonally-adjusted un- employment rates are examined since last they reached a is a "very slightly declining tend- ency." The economy, he added, is "in an improving situation." While he would agree that "the unemployment problem is not licked by any he said Ihere are more people working than ever before. The government has been working "strenuously" for more than a year in its fight against inflation. "But it may be that Ihe inflation psychology has not been broken." He said he was satisfied with the government's form of battle against inflation, but in a refer- ence to the latest increase in consumer prices, he added: "I am not very happy with the tendency at the moment." By JAMES NELSON OTTAWA (CP) The largest mid-summer increase in food prices in more than a decade occurred last month, putting food prices three per cent higher than they were before last fall's supermarket price war, Statistics Canada reported today. This was by far the biggest factor in sending the consumer price index up to a record 135 from 134.1 in July. But the rise over the year since the August, 1970, figure of 130.5 was due mainly to increased housing costs. The figures are based on 1961 prices equalling 100. In dollar terms, it meant that last year's food bill of cost in August this year, 26 cents more than in July. After the supermarket slashed Iheir prices last1 fall, the price for a comparable basket of goods dropped to in De- ccmlier. The over-all index last month stood 3.4 per cent higher than a year earlier. This showed an ac- celeration of the rate of price increases, after it had slowed earlier Ihis year to about two per cent. It meant, said the statistics bureau, that the purchasing power of the 1961 consumer spending dollar was cut to 74 certs last month. It had been 75 cents in July, and 77 cents in August last year. CLOTHES CHEAPER While food prices lead the pa- rade of higher prices last month, they were spread over nearly all segments of the over- all index which is generally re- garded as a measure of the cost of living. Only clothing prices showed any downward move- ment, and it was tenths of one per cent. But some consumer durables that a family buys in- frequently, expecting them to last a long showed some price moderalion. In- cluded were prices for new cars, furniture and carpets. The index, based on 1961 prices equalling 100, was 130.5 in August last year. The statis- tics bureau said the increase in Hie last 12 months was the larg- est since the year ended in May, 1970. In percentage terms, the index was up seven-tenths of one per cent in the past month, and 3.4 per cent in the past year. Economists believe a con- sumer price increase of more than two per cent a year is in- flationary. Statistics Canada said all seg- menls of the over-all index in- creased last month except the clothing index. FOOD PRICES UP Food price increases between July and August in the last five yea's have averaged 1.2 per cent, but this year they jumped by almost twice that. The statis- tics bureau said almost all foods had higher prices except vege- tables. Last month's food prices were B.2 per cent higher than they were last December, when they had dropped as a result of a su- permarket price war. In August this year, they were three per cent higher than in August, 1970. Other major increases in the over-all index were in alcohol, automobile insurance rates, gasoline and oil, new houses, renls, house insurance, and ad- mission prices for football games and movies. The indexes are based on monthly survey of prices of more than 300 goods and serv- ices entering into the average family budget. The representa- tive family in this case is one living in urban centres on low lo medium incomes. What (he indexes mean in dol- lar terms is that, on average, it cost S13.50 last month to buy what 510 bought in 1961. This is an increase of 45 cents in the last year. Baldwin seeks impeachment of three cabinet members OTTAWA (CP) Gerald W. Baldwin, Conservative House leader, gave formal notice today of a Commons motions to impeach Finance Minister Edgar Benson, Justice Minister John Turner and Manpower Minister Olio Lang, the minister responsible for the Canadian wheat board. The motion will not be called immediately. Mr. Baldwin alleges that the three ministers have refused to pay lo the wheat board more than million as required by Ihe Temporary Wheat Reserves Act. The money would then be distributed to Prairie farmers. The government says the re- Start investigation into prison riot WASHINGTON (AP) The United Stales Congress has begun investigating the bloody suppression of lire Allica prison riot amid calls both for reform and criminal investigations. The White House has reiterated President Nixon's support of methods used lo quell the rebel- lion. Chairman Claude Pepper (Dem.-Fla.) of the House of Representatives select commit- tee on crime announced Wednesday he and three other committee members mil lalk with New York slate officials prisoners to find how to prevent a recurrence of the At- tica riot. Hearings will follow, he said. The 13 black members of the House called on Attorney-Gen- eral John N. Mitchell lo. appoint a special federal grand jury to invesligate Ihe "questionable circumstances" surrounding the decision of officials to storm ri- oter-held portions of the prison Monday. N-test protesters set sail for scene Historian dies OTTAWA (CP) Frank Un- derbill, historian, political com- mentator and educationist, died in hospital today at Ihe age of 81. He had been in hospital m critical con'dilion since suffering a slroke Monday. VANCOUVER (CP) The protest vessel Greenpeace sailed out of Vancouver harbor Wednesday night, planning to get to Amchitka Island "as soon as possible" because of a tele- phone tip that the United States Atomic Energy Commission has advanced the dale of a nuclear test on Ihe island. Jim Bohlen, one of 12 persons aboard Ihe 80-foot Canadian hal- ibut boat, would say only that the Washington, B.C., source of the tip was a reliable and sym- pathetic one. The Greenpeace, originally scheduled to sail for the Aleu- tians at noon, moved out just before ]1 p.m. because of de- lays in fuellirg and cleanup de- tails. Crew members plan to protest the five-megaton underground blast by cruising off the island's three-mile territorial limit on the day of the test, some time in October. White House spokesman Ron- ald Ziegler said the President has not withdrawn his support for New York Gov. Nelson A. Rockefeller's handling of the af- fair, despite subsequent findings lhat slain hostages were shot to death instead of knifed as pre- viously reported. Rioters were reported not to have had guns. Pepper, commitlee is empowered lo investigate pris- ons and draw up proposed legis- lation, announced it already has questioned California Gov. Ron- ald Reagan on the deaths ol three convicts and three guards at San Quentin prison Aug. 22. "The tragedies of Attica and San Quentin arc grim symptoms of the failure of state and fed- eral government lo provide effeclive rehabilitation pro- grams for persons convicted of Pepper said. Governor Rockefeller in trouble S.'.ATFORD, Ont. (CP) Three U.S. film-makers say they will call for Ihe impeach- ment of New York Governor Nelson Rockefeller and an in- vestigalion of what they called the murder of guards and pris- oners at Attica prison in New York state. The three, Emile de Antonio, Barbara Kerr and Howard Alk, told a nev.s conference Wednes- day night they will write a let- ter to Assemblyman Arthur Eve of Buffalo, N.Y., asking him lo sen'es act is being repealed by new legislation, not yet ap- proved by the Commons, which will provide for distribution ot ?100 million lo Prairie farmers. Mr. Baldwin's motion calls for a special commitlee of MPs to examine Ihe government's re- fusal to pay the million and to "draft, and recommend the form of Uie articles of impeach- ment which b'e against tEese ministers." No wrillen impeachment pro- cedure exists in the Canadian constitution. Lord Melville in 1805 was the last person im- peached in Britain. He was re- moved by Commons vote Irom the cabinet post of treasurer of the navy for mishandling public funds, was eventually acquit- ted and retirca. Troops, rioters in battle BELFAST CAP) British troops clashed early loday with rioters protesting Northern Ire- land's clampdown on the Irish Republican Army. Bombs exploded in scattered sectors of Belfast, an electricity pylon was blown up near Omagh and another blast of ge- lignite shattered the front of a police station at Lisbuin, injur- ing a young constable. The string of incidents came in apparent response to Prime Minister Brian Faulkner's deci- sion lo keep 219 suspected sub- versives under indefinite intern- ment without trial. The Roman Catholic-oriented IRA is ac- cused of trying to overthrow Faulkner's Protestant-based government by force. Running battles between sol- diers, gunmen and rampaging youths went on into the early hours of the morning in this capital city. Hurricane hits coast 1-LUIJCi- 01 tmttaio, asKing mm 10 f T They expect now to bypass introduce impeachment pro- I lanned slops at the British Col- ceedings at once. toniiiii. pla umbia ports of Comox, Camp- bell River and Prince Rupert and go directly lo the Aleutians, One person onboard specu- lated the blast was being ad- vanced in an clfort lo avoid con- frontration with the protesters. ngs They are in Stratford Ihis week for the showing of their films in Ihe International Film Festival. They said they chose Mr. Eve because he has shown extaordinary judgment in Ihe case. shouldn't, fed left out! There arc. probably otlicrs u'hii still liuva (heir jobs" THE ROYAL SEA OF TRADITION Charles, the Prince of Wales, right, 22-year-old heir lo Brilish throne, arrives in uniform at Royal Naval College in Darlmoulh, England, Wednesday, 1o begin his new career in llic navy. He has elected lo do his principal military slint in Britain's senior service Iho Fleet as did his great grandfalher, King George V, left, and his grandfather. King George VI, centre. The latlor is shown as a midshipman In 1914. Magazine to cease publication NEW YORK (AP) Look magazine will cease publication with the issue of Oct. 19, it was announced today. Mounting costs, particularly postal rales, and declining ad- vertising revenue were cited as Ihe reasons by Gardner Cowles, chairman of ihe board and cdi- lor in cluef of Coivles Communi- cations, publislwrs of the maga- zine. Cowlcs said that had 28 million renders, and the re- sponse to subscription offers and renewals during Ihc first nine monllis of 1971 was Iho best in tbo magazine's history, CAMERON, La. (AP) Hur- ricane Edith, packing winds of 100 miles an hour, struck the virtually deserted lowlands of the western Louisiana coast today. The storm hit about 30 miles east of Cameron just before 10 a.m., moving northeast, the weather service reported. Seen and heard About town "pARM DWELLER Mary r.rr-y counting Ihe cows as Ihcy strolled past her kitchen window en route to her garden C.irl Soroko- ski not knowing whether lo laugh or cry these days .is his Calgary Slampodors are winning but his SI. Ijouis Car- dinals are Hearing elimina- tion Diderikn Kwarlrl hurriedly Inking the laundry from her line so a ii'jws plioloprapher could lake a picture of n car that had crashed into her backyard.