Winnipeg Free Press Newspaper Archives Nov 19 1971, Page 4

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Winnipeg Free Press (Newspaper) - November 19, 1971, Winnipeg, Manitoba4 Winnipeg free press Friday november 19, 1971 troop pullout pressed continued Ayearst explains . Mills payouts Louisiana dismissed As Hoe in a statement released late wednesday or. Laird revealed that committee s defence appropriations subcommittee had agreed to the troop Cut and characterized the action As ill timed and Early thursday Dis patched a letter to All of the committee members warning approval of the subcommittee stand would produce a loss1 of Confidence i n . Commit ments undermine prospective negotiations with. Warsaw pact countries on Mutual troop reductions and weaken the United states negotiating position with the soviet Union. Attacking an unannounced action taken in an com Mittee session was an almost unprecedented step for or. Laird a former House member who often talks of his respect for congressional prerogatives. A. Defence department spokes Man said the unusual action Only indicated the depth of or. Laird steeling on the matter sen Mansfield attempted ear Lier this year to press through a measure which the size . In Europe by half but it was Defeated by the Senate May 19. Sen. Elle n d e r. Predicted by Vern Fowlie the former president of m. P. Industrial Mills Ltd. Testified thursday before the commis Sion of inquiry into the Chur chill Forest industries Complex that assumed that the firm s West German principals had left everything in the hands of or. Alexander Kasser pres ident of techno pulp inc., of Montclair new Jersey. Clarence Ayearst former president of the paper Mill firm was being Cross examined by Scott Wright counsel for the Manitoba government thurs Day but commission members also questioned him. Or. Ayearst was being questioned about the payout of funds for the Mill. Or. Wright said at one Point that there never were any certificates of approval from consultants for. Payment million paid out by july 8, 1969, to the turnkey contractor Bertram Verkauf a of Klo ten Switzerland. The turnkey contract was dated May 30, 1969. Ment increasing the Price and Mill size also was dated May 1969. Or. Wright also re. Feared to a fee interpretation document signed by the Mani Toba now the Manitoba. Development Corpora Tion May 30, 1969 which said entitled the turn quire purchases of machinery this Side of the Atlantic. Replying to a question by or. Smith said did not con Sider that Bertram Verkauf a might run off with the million. Also was asked whether As a banker an Industrial development official and a former consultant would advise anyone to enter into a contract in which the turnkey contractor Here Bertram Verf Caus a was entitled to take 29.8 per cent in fees off funds advanced immediately that they were received. Or. Ayearst said would not do that normally but that it depended on the circumstances. The Cross examination of or. Ayearst was completed thurs Day. The inquiry then adjourned until 10, . Monday when Lloyd Hale president of Church i 14 Forest industries sex head seemed Gullible continued Manitoba scheduled to appear before the commission of _ thursday the1 latest troop Cut measure will be simply do not. Need american troops in said. Allies must take on. A larger share of the defence Burden in in. His letter to committee members or Lair said a unilateral reduction of . European forces would cause allies in the North Atlan tic treaty organization to lose momentum they have developed in improving their own defence forces. Further it could pro Duce a soviet conclusion that they can count on a unilateral withdrawal of . Forces form Europe thereby removing their incentive for meaningful Degoti perhaps most importantly concluded it could create an impression among . Allies that we Are keep our the committee vote in favor of reducing the european Force was reported to be 14 to 13. Sta crashes a another f-104g set fighter of the West German air Force crashed near this bavarian town wednesday night killing a 36-year-old major. It was the 146th of the undersigned fighter lost by the germans. Furniture special 2 Days Only China Cabinet contractor r feel amounting to cent of actual costs the master finance Afefe me Between . Industrial Mills arid the development Wii was dated May commissioner Mitchell said thursday that the time payment schedule for the project called for the. Fund to pay four per cent of million the the master finance agreement was signed said also that four per cent came to exactly the 14 per cent equity contribution . Industrial Mills Ltd was to put into the p r o j e c t. Another document signed by or. Ayearst required Bank officials to Forward All moneys advanced to the or per act directly to Bertram ver Laufs a. A turnkey contractor is one hired to manage and supervise All aspects of a project turning Over to the owner the keys to a completely finished project the members of the com m i s s i on of inquiry Are a. Rhodes Smith chairman re tired chief Justice of the Mani Toba court of Appeal Leon Mit Chell chairman of Tjie Manitoba and Murray a. Donnelly Provost of univer airy College University of Manitoba or. Mitch Ell asked or. Ayearst what concern had for the West German principals the major shareholders of the firm. He asked what con Cern had about the fund and y a n c e s going outside the country. Or. Ayerst said thought everything was being closely supervised by the consulting firm of Arthur d. Little inc., of Cambridge Massachusetts. Or. Smith asked or. Ayearst Ufi Axhi re pne of you la probably the put of Luck this weather of fice says Ima nit bans Are Likely in for a Cloudy week end with Snow and the possibility of freezing rain. But there is a Glimmer of a warm front now track ing East through Saskatchewan t o w a r d Manitoba could change direction. The expected to bless the Regina Region with temperatures of 45. To 50 degrees pass through the southwestern portion of Manitoba if it continues in its present direction. If the warm front skirts the province Well have Cloud and Snow and those in the Western part of the province will probably experience freezing rain. Temperatures in the South West could reach 35 degrees with the remainder of the province slightly colder. If the warm front moves directly East across Central Manitoba warmer tempera Tares can be expected. Saturday temperatures will be 20 to 25 degrees in Southern and Central Mani Toba with temperatures slightly lower in the North. The forecast for sunday is colder. Sliding door Arbon o Fop Lorn d r ,1 r r .11, i v decoupage supplies see have it or we get it for you. Awn. Jute in Ltd Atli of few pts inf. 775-0211 concerning instructions com ing to the former president from or. Alexander Kasser of techno pulp inc., of Montclair new Jersey through . Industrial Mills Ltd s lawyer Al Bert Bissonette of Montreal How . Knew the West German principals would approve of or. Kasser s decisions. Or. Ayearst said always understood through or. Bis Sonette that Wilhelm Ernst of the Parent firm of Wilhelm staler Papie Fabrik a Mph of West Germany and chairman of . Industrial Mills Ltd. Had great Faith in or. Kasser. He said assumed or. Ernst had left everything in or. Kasser s hands. Or. Smith said it then seemed that or. Ayearst s responsibility to the firm s principals would then be even greater considering the Money involved. Or. Mitchell asked or. Ayearst whether thought of the various firms involved were All one Happy family. Or. Ayearst said the thought they had a Good business relationship at arms length. He said or. Bissonette had told him or. Kasser said did not have any financial interest in Bertram Verkauf a. Or. Ayearst said was told concerning the million advanced by Joly 8, that after fees and other costs were paid and purchases made in Europe the. Remaining Money would be deaths Braeul Peter 62, of Domin Ion City Man. Caldwell. Mary Irene of Vancouver. Davidson mrs. Neil 65, of 421 ferry Road St. James Assiniboia. Duncan Lizzie 89, of Van Couver. Hollinger Howard William 50, of 2 Byron Bay St. James Assiniboia. Hunter Herbert of 255 Aubrey Street. Kowalsky mrs. Auie 73, of 52 Arrowwood drive West Kildonan widow of John Kowalsky. Mccrae Harriet am 90, of 61 Nottingham Avenue East Kil Donan. Neil Harry 79, of Vancouver. Alfrey mrs. Clara May. 84 of Neepawa Man., widow o Walter Alfrey. Page George h., 80. Of 56 Cosmo place suite 35. Peters. Zewge 87, of 523 Logan Avenue. Plaatje mrs. Wal Lite 94, of 44 Varennes Avenue so vital. Robert Toay 62, of 329 Sar gent Street Robinson mrs. Sifor Bjork 76, of Pine Falls Man., widow of Albert Robinson. Salter Jotha of 106 Langr Side Street Sawchuk my Cael 70, of 359 action. Sent to Montclair for any re Regent Avenne West trans Cona. Schofield. John 89. Replying to or. Meighen said supposed that or. Bis Sonnette was the alter ego of or. Kasser. Or. Meighen later asked or. Ayearst Why did not resign when As president had not been invited to an m. P. Indus trial Mills Ltd. Board of directors meeting in Europe in de Cember 1969. As president was also a or. Ayearst said should have resigned and should have done so earlier said had made a mistake but had had Confidence in Hie project. Or. Ayearst 69, of Lachute que., was president of the firm from october 1968-until april 1970. He previously had retired from the Royal Bank of Canada As supervisor of Industrial and commercial development the Montreal head office. M. P. Industrial Mills Ltd. Was one of four firms at the Complex placed Jan. 8, 1971. The others were Church i-11 Forest industries Manitoba Ltd., River saw Mills eos Hissney and Jaines Ber Tram and son Canada Ltd or. Meighen also asked or. Ayearst Why did not resign Over a statement in an aug. 12, 1969, telex message sent to the f i n a n c i a 1 Post which said among other the capital investment in the Paner Mill u 1 d be. Million. Or Ayearst did agree had signed the master finance agreement of May 29, 1969, which involved a million Mill. However or. Ayearst replied that might have thought the capital investment would be million. But said the figure 32 million stuck mind. Or Meighen also questioned about a Telegram of july or. Oskar Reiser of Monoca a of Swit Zerland to premiered Schreyer setting up an to Point ment for or. Ayearst with the Premier. The inquiry was told thursday that Hie presidents of the four companies in the com plex or. Reiser and or. Kasser met with Premier and Rex a Grose of the Manitoba development fund in Winnipeg in july regarding the Complex and the new provincial govern ment replying to a question by or. Meighen or. Ayearst said did not know what authority or. Reiser had to make appointments for or. Ayearst. He said had been instructed by or. Bissonnette on. Instructions from or. Kasser to go to the meeting with the pre Mier. Of the meeting itself or Ayearst said the Premier said that after listening to or. Kasser would recommend that what the whole Complex needed was Good Public relations to Stop the criticism of the project or. Ayearst said essentially remained in the background. Or. Meighen commented that perhaps or. Ayearst was taken along for his Good looks. My Ayearst replied that might not have gotten far on that. The Cross examination of or. Ayearst was completed by Outher counsel on thursday morning and the inquiry adjourned until 10 . Monday. On monday Lloyd Hale pres ident of Churchill Forest Indus tries Manitoba Ltd., is scheduled to be on the witness stand. The inquiry will be continuing its hearings in the auditorium of the Norquay building 401 York Avenue. The three member commis Sion of inquiry is delving into All aspects of the million forestry Complex. Jackson enters race Washington a Sena Tor Henry Jackson a self described underdog announced today his candidacy for the democratic presidential Nomin the 59-year-old Washington senator said president Nixon is not trusted and suggested the other democratic candidates Are too extreme for american voters. Jackson pegged the Economy As the top Issue of the 1972 elec Tion year. His announcement had been expected. He has been travel Ling three and four Days a week or the last nine months visit nig 32 states and 126 cities Many of them several times. The no. 1 priority in this country most be to Pat people j j Back to Jackson said in j i ins prepared remarks today. 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