Lethbridge Herald, The (Newspaper) - September 22, 1971, Lethbridge, Alberta
FORECAST HIGH THURSDAY 65-70 The Lcthbtidge Herald VOL. LXIV No. 239 LETHBRIDGE, ALBERTA, WEDNESDAY, SEPTEMBER 22, 1971 PRICE NOT OVER 10 CENTS FOUR SECTIONS 54 PAGES Suffield base protest set CALGARY (CP) Picketing of Lhe Suffield mili- tary reserve is being considered by the Alberta Fish and Game Association to protest the reserve's use as a training area for the British army. President Tom O'Keefe of Calgary said the asso- ciation supports suggestion by oilier conservation groups the rea be turned into a national park and wildlife refuge. An agreement between Canada and Britain allows two-thirds of the area to be used for practice in weapons firing and vehicle manoucvres. Mr. O'Keefe said the area has been sought by cat- tlemen and could be used for boln ranching and wild- life. "The Suffield area is a unique ecosystem, much of winch lias -remained isolated since 1940. Tin's is in one of the most arid parts of Alberta and grass and tree cover is extremely sparse. "Military reservations such as Cold Lake and Camp Wainwriglit should be used before some new are is described for no apparent or demonstrated need." While British troops will be under command of their own officers, Canadians will ensure safety and environmental regulations are followed. Col. M. L. Weisman, base commander, said he foresees "no real problems of environmental damage" and added the British had agreed to keep away from the most vulnerable areas. Trade crisis experts find no answers By KEVIN DOYLE Canadian Press Staff Writer The international monetary and trade problems discussed at an emergency meeting in London recently have defied attempts at solution for more than 20 years. The conference of the world's 10 richest non-Com- munist countries known as the Group of sided over by Finance Minister Edgar Benson of Can- ada, appears to have done liltle, if anything, to produce new answers. At the centre of the problem is a chronic deficit in the United Stales balance ol payments, now running at au annual rale of 59 billion. 'Hie imbalance, which first appeared in the final quarlcr of means basically that Americans have consistently been spending more money abroad in a variety of ways than foreigners have been spending in the U.S. As the deficit grew, Lhe U.S. was forced into bor- rowing increasing amounts of funds from outside sources Ln pay its external commitments. When President Nrxon announced last month that Ihe U.S. dollar no lor.ger would be tied to gold, Hie problems liad readied a crisis level. The U.S. had almost reached its borrowing limit, in the International Monetary Fund and the country's slock of gold had dwindled to a record low. The suspension meant other currencies had to find their own levels in relation to the dollar which no long- er had a fixed tie with gold. A 10-per-cent additional levy on dutiable imports, announced by Nixon at the same time, was intended partially to cut down U.S. expenditures outside the country and partially as a bargaining tool to force major trading and monetary concessions from U.S. allies.' The U.S. deficit originated in the turmoil following the Second World War when sterling and a number of other currencies had been devalued and American aid to Europe was flowing on a massive scale. For a time, the U.S. imbalance was helpful in re- storing economic balance in the post-war world and providing the basic sLibilily lhal enabled an easing of inlcmational trade restrictions. Vietnam a burden But foreign aid, rrJlitary expenditures and indus- trial investment grew gradually (o a level the U.S. 'ound increasingly difficult to support. The Vietnam war added heavily to the cash outflow. Domestic inflation after 1905, stimulated by the war steadily eroded the overseas competitiveness of Ameri- can industry. By this year. Ihe deficit was so large that foreign dollar reserves had increased beyond the volume which central banks and businesses were willing to hold. They feared the U.S. economy and the dollar were over-strained and weakening quickly. Authorities in Washington came lo admit the dollar was overvalued but insisted il was up to oilier coun- tries to increase Ihe value of their currencies and re- store a viable balance. Canada responded, [or mainly fclf-inlcrested rea- by flo.tliug il.s currency in .June, 1970. West Ger- many and The Netherlands followed a year later. But Japan, until recently, refused lo budge. The Japanese yen noiv is floating, but in a lightly-controlled manner. Drtweon May and Aug. 15, pressures on Ihe dollar buill up inexorably. The Japanese payments balance and foreign exchange reserves boomed. Floating cur- rencies slronglhencd in relation lo the dollar and the plunging U.S. paymcnls position was suddenly accom- panied by a nose-dive in foreign exchange reserves. Whal happens next is literally anyone's guess. The U.S. made clear at the London ir.ccl.ing that it ivill not move an inch unlil major concessions arc made by il.s trading partners lo luni the payments doficil into a .substantial surplus. The 10 countries mecl again in Washington Sept. 20 nil'. I toy are unable lo agree even on a basic agenda fnr Ihe talks and virtually all participants stress thai no major agreement will be produced. Unison appeared In sum up Hip feeling of most ociii.lrii's llu> London mtTling a dclibiTalc understatement: "There'll bo nil agreement the day after tomorrow." From UEUTER-AP Western diplomatic observers in Hong Kong speculated today that events in the last couple of weeks point to possible political developments in China. These observers, specializing in study of Chinese affairs, cited a number of factors noticed ear- lier this month which could Indi- cate an unspecified polilical change in Ihe People's Repub- lic. The Oct. 1 parade in Peking had been cancelled, leading lo speculation on the possible ill- Mao death speculation shot down ness or death of Chairman Mao Tse-lung, 77. But the Chinese embassy in Paris today denied that serious events are taking place in Pe- king. A spokesman for the embassy described reports speculating on the health of Chairman Mao as 'pure lies 'Chairman Mao is in excel- lent the spokesman said. CALLS REPORTS HUMORS China's correspondent in Ot- tawa, Pu Chao-minh, also de- scribed the reports as "non- sense, all rumors." He said! "We know Chairman Mao is in very good health." Morning news bulletins from Peking made no mention of the traditional parade, a forum for the appearance of Mao and other leaders. In Peking, Heuler correspond- ent James Pringle reported that a spokesman at the foreign min- istry information department said the parade would not take place this year. Pringle reported that the spokesman said the lack of cer- emonial activities such as fire- works was a reform being made for tills year. But the spokes- man said there Hill celebra- tions in Peking parks. A British foreign office spokesman in London reported today that the Chinese govern- ment said the parade was can- celled for reasons of economy. Hong Kong's tabloid evening newspapers splashed specula- tive banner headlines today. "Is Mao Dead or The Star asked. The China Mail's head- line was: "Mao Dead Fear." Tuesday, French radio re- ports speculated that Mao may have died or become gravely ill following a heart attack. Most nf the speculation hi Hong Kong tmc'entrated on the period Sept. J2-1G as possibly decisive in (he event of any de- velopments in China. GM execu hold out no hope PRISON MUTINY Two prisoners killed 1wo hoslages by slilling Iheir ihroars be- fore being captured in a police charge on a prison hospital in Troyes, France, today. The action set off a small-scale muliny among other convicts. The police assault force found Ihe hostages, a 35-year-old nurse and a 25-year-old guard, dead with Iheir ihroals cut, prison authorities iaid. Gendarmes are shown outside the prison before (lie assault. Quebec plans new program CHICOUTIMI, Que. (CP) Quebec plans to introduce a new family allowance plan in the summer of 1972, Social Affairs Minister Claude Castonguay an- nounced today. Mr. Castonguay told a news conference the new program, based on an agreement with the federal government, will involve family allowance payments only to families with a n income below a certain figure. The plan would involve in- creased federal payments and would represent no additional cosl to the province- It would he less generous to families comparatively well off Police slough '1'ily China couldn't share your scat'.' Drives nails with Jicnnmer, uitin fined QUEBEC Adrien Lebel was fined ?200 and costs Tuesday for driv- ing nails wilh a hammer. Lebel, canghl in the act by a labor department inspector, pleaded guilty lo the charge of being found in possession of a carpenter's tool contrary lo provincial tegnlalions. L e b e 1 's employer, con- tractor Romeo Fiset of sub- urban Giffard, was also fined S200 and costs for hav- ing carpentry work done by a laborer. EDMONTON (CP) A slough was to be drained to- day in the continuing police search for Mary Ann Plett who disappeared eight days ago. The slough is on tlie acreage 25 miles southeast of Edmon- ton where the 29-year-old real estate agent was to meet a mysterious client. Her car was found six days ago on an Edmonton used-car lot and police reported no use- ful fingerprints have been un- covered. MeanW'hile, police said there still is no trace of a Holden couple who disappeared two weeks ago en route to visit their married daughter in Peace River. John Clinton Armstrong, 07, and his wife Hazel were last seen driving in their while station wagon. and more generous to tlie large number of low-income families than federal legislation on tlie same subject currently being studied by the Commons. EXPECTS AN AGREEMENT Mr. Castonguay, on Uie fourth stop of an information tour across the province, said he be- lieves an agreement on social security will be worked out with the federal government. Quebec has been seeking ju- risdiction in the field of social security and rejected the pro- posed Victoria constitutional charter in June because it did not clearly guarantee the prov- ince the right to establish ils own programs. Quebec Premier Robert' Bour- assa has said he would accept the charier if he could negotiate tlie right lo inlroduce provincial fa miry-allowance payments. Prime Minister Trudeau said the federal government was willing to discuss social security with Quebec only if it would lead to consensus on the charter. N. Vietnam to boycott session PARIS (Renter) North Vietnam and the Viet Cong an- nounced today they will boy- colt Thursday's session of the Vietnam peace talks licre in protest against Tuesday's Uni- ted SUncs air raids against North Vietnam. The North Vietnamese dele- gation spokesman, Nguyen Thanh Le, announced the de- cision al a news conference. The boycott will last for one session only, tlie Communist side said. Government cuts costs EDMONTON (CP) A com. mittee of Progressive Conser- vative MLAs will replace the provincial municipal fiscal commission appointed by Al- berta's previous Social Credit administration. Municipal Af- fairs Minister Dave Russell an- nonr.ced today. The ccmmitlee will report to Mr. Russell and work wilh the Alberta Urban Municipalities Association and the Alberta As- sociation of Municipal Districts on terms of reference and pro- gramming. Roy Farran, the member for Ca'sary North Hill, will be committee chairman. The other mctr'jci's are John Batiuk, Vcgrevillc, Cliff Doan, Innisfail, Don McCrimmnn, Ponoka and Rusty Zander, Draylon Valley. Mr. Russell told a news con- ference thai the change will re- sult in a substantial saving lo the provincial treasury. The commission would have cost OTTAWA (CP) Two senior executives of General Motors of Canada Ltd. conferred tcday wilh Industry Minister Jean-Luc Pepbj and federal officials about GM layoffs, but declined lo hold out any hope of a quick resumption of full production. Following an announcement of Jayoffs in five Canadian plants affecting jobs, John Minlline, rice president in charge of finance, and John Barbeau, executive vice-presi- dent, came from Oshawa. OnL, lo explain the decision lo Mr. Pcpin. They talked for an hour and 20 minutes with Mr. Pepin and for a further 90 minutes with of- ficials of the department of trade and industry. Afterwards, Ihe participants ducked direct answers to all questions, although Mr. Pepin was attending a Liberal party word that he would have comments later. Mr. Mintline and Mr. Earbeau said the meeting was "very but declined lo say how long the production slow- down was expected to last, or whether there were any specific plans to reduce the number of layoffs. DISCUSSED SITUATION..... "We answered a lot of ques- Mr. Mintline said. "We discussed tlie whole gamut of the situation." Asked whether there had been suggestions that the company should turn to manufacture of Brooks youlh dies in fall CESSFORD (CP) William David Hajash, 17, of Brooks was lulled Tuesday when he fell from an oil storage tank he was working on into a tank contain- ing about three feet of oil. Cessford is about 75 miles east of Calgary. Seen and heard About town 'J1 H E A T R E GOERS Kay Vasclenak and Hilda Coleman fully entranced by the White Heather Concert commented "Wish it would perform more often" Jack Giffen getting up at 4 a.m. (o go duck hunting only lo find his wife Susan had washed bis jeans wilh the wallet containing his hunting licence still in the pocket. HONORS (fe GAULLE PARIS (AP) A scries of four stamps in honor of Gen. Charles de Gaulle will be issued Nov. 0, the firsl anniversary of his death the posted ministry announced. UN opens amid offbeat note UNITED NATIONS (CP) A bomb scare and bitter words be- tween pro-Taiwan and pro-Pe- king demonsiralors oulsido lent an offbeat note Tuesday lo (he opening of the 2Gth General As- sembly of the Unilcd Nations. The liomb scare came while delegates gallirrcd in the as- sembly chamber lo consider their first order of election of Foreign Minister Adam Malik of Indonesia as Ihe new president. Oulsido the rival Chinese fac- lions, numbering several thou- sand, firs! slngrd domonslra- liiins fivr blocks apart and then marched to an unscheduled con- Ironlation near (ha UN building. They were quickly restrained by police. Then the two sides began a sheuling and singing match. There was .shoving and cursing but no violence. The most important issue on thn agenda is the admission of Communist China, Even the election held ils oul- of-tlie ordinary faccls, as one delcgalc voled for a dead Com- munist and another (or a livo Israeli. Meanwhile, External Affairs Minister Mitchell Sharp made an offer (o Sccrclai'y-General U Thanl lo hi'lp overcome Iho debt of flu1. UN that threatens to drive (he world or- ganization into bankruptcy. Sharp told a news conference that if Ihe S'ovict Union and France more than any other countries responsible for Iho UN debts from pasl peace-keeping o p e r a I i o n s, and Lhc United Slates ivonld make a voluntary contribution lo the UN, he would recommend that Canada ,ilso make one. The United Stales quielly ex- Mded confidence to reporlcrs ih.il il. could succeed in keeping Taiwan in the UN even after Ihe asseml.ly, as is expected, voles in Poking. That confidence could receive il.s firsl lest today when (he as- sembly's steering comniilleo meets lo consider Ihe 109-ilrm agenda, a record size, thai the assembly must deal wilh this session. The Americans b.ive submil- Icd an item calling for "dual ri" rcscnlalion" for China, thai is a seal for Peking and Tai- wan. Albania and 17 allies have submillod their usual call fnr the expulsion of Taiwan and scaling of position that Canada ivill support. Three new countries were ad- mitted Tuesday, all liny. They arc niiiilnn on the Indian sub- continent, and Qatar and Hah- rain in the Persian Gulf. Thai made UN membership 130. bigger-selling compact cars, Mr. Mmtline replied: "The minister had no inten- tion of trying to run our busi- ness." General .If o t o r s announced Tuesday it would cut back in its Canadian plants. In response Lo heavy question- ing in the Commons later, Mr. Pepin said he would talk to Gil officials today. He expressed annoyance that (lie company had not given Lhe federal government advance no- tice of Ontario layoffs that would diminish GM jobs in the province by within six months. He also said he would look into a prediction by Ed Broad- b e n t that GM would "cease produc- tion completely" of the cars it now makes at Sic. Therese, Que., affecting the jobs of workers. CLARIFIES REMARK Mr. Broadbeul clarified his remark in am interview loday, saying he had meant that GM intended lo shift from Pontiacs lo compact Vegas at Lhe Quebec planl. While the jobs of work- ers nmv producing Ponliacs would be affected, he could not say how many would be in- volved producing the smaller car. Outside Ihe House Mr. Broad- bent said his information came from reliable sources. In Osliawa, a GM spokesman said Mr. Brcadbenl's suggestion that production of all cars now being built at Ste. Therese would be discontinued was "ab- solutely false." Mli. I'KPIN Test ban WASHINGTON (AP) The House of Representatives ac- cepted Wednesday a Senate- passed bill lo bar. UK-. Amchitka Island underground nuclear lest "unless the president gives his direct approval for such test.'' The Senate's restrictions on use of funds for the lest was written into a compromise billion public works appropria- tion bill. The House passed the com- promise 375 to 0 and sent it to the Senate Ibr final action. Congressional sources say the five-nicgatcii nuclear bomb for the test was lowered al Jcasl 300 feet into the underground Alas- kan island lest hole last week en thaiigh President Nixon ha." not officially approved the test. Jail dispute talks resume EDMONTON tions will resume Thursday be- tween the civil service associa- tion and the provincial labor department in the dispute in- volving jail guards. A civil service association spokesman said Tuesday the joint committee mil include two association representatives and one of three corrections of- ficers chosen by the guards. The government negotiators include Jim Dixon, director of employee relations, J. D. Lee, correctional institute director, and H. B. D'Estre, industlral relations board chairman. The 500 guards look strike action at all six provmcial in- stitutions three days before the Auo. SO provincial election. Ada the defeat of (he Social Credit government. Premier Peter Loughccd gave the guards a letter of intent lo ne- gotiate and the guards return- ed to work. BREZHNEV GREETED Leonid Brezhnev, Soviet Com- munisf pnily leader, received a bear it-cm Yugoslav President Tito and a polite popular reception in Belgrade today on his arrival for a four-day visit lo Ihis independ- ent Communist country. He invited Tilo to "develop co- opcralion between our parlies, countiies and peoples in Ihe interest of socialism ond peace."