the recovery : 978 -ecrease in SE Rn Cas A RL an OTTAWA (CP)- A private forecasting agency predicted today. that Canada’s .economic per- formance in the second half ‘of 1977 will strengthen and continue 1978. . The influential Con- ference Board in Canada, which is supported by some businesses, unions and govenrment .agencies,. said real economic growth in the second half of this year should hit an annual rate.of four percent, rising to five per cent next year. The forecast is one of the few bright ones made recently, Government ‘figures show thsat in the -second quarter of 1977, there Sees a eta rate aeetere celece rata aaraee pgiaicleteticnre ratios Chabot refuses coal — question VICTORIA (CP)- The opposition tried again Monday to get Mines Minister James Chabot to release government _ projections on the development of coal in northeastern British umbia. NDP MLA Graham Lea (Prince Rupert) said the president of Fording Coal Co. Ltd. recently told an energy symposium = in Vancouver that coal in the southeastern area of the province was enough to supply all export needs by 1n65. Lea told Chabot Goring question per at B.C. could expect to see an in- demand for metallurgical’ coal of only seven million tons by that year, and asked Chabot if he had any reason to believe otherwise. _ Chabot said he did not have .any government projections and noted that . predictions for. . future. demand change constantly. was a decline in the real gross national product - the most comprehensive measure of total economic activity - of 2.4 percent on an annual basis. Those figures led to speculation that the country is heading into a recession. The board predicted the country’s deficit in in- ternational. payments will deepen this year to $5.3 billion and to $6 billion in 1978, largely due to an outflow of funds to pay for services, _The merchandise trade side of the ledger, in which Canada usually has a sur- plus, will be strong this year with growth in exports this year of 10.8 percent. But this growth will decline to 4.4 percent in 1978. Imports will increase by about 4.7 percent this year, rising marginally to a the™herald Serving Terrace, Kitimat, the Hazeltons, Stewart and the Nass ‘ t VOLUME 71 NO. 97 Price: 20 cents . TUESDAY, SEPTEMBER 20, 1977 / Diving ‘Into.his.own image reflected in the ' g eas calm water of the ¢ominuinilfy pool is 11-year-old Steven Little, He was as ea ta the only person to take advantage of the pool's first al- -. ternoon opening period Monday after staff finished the annual maintenance. V. —ToRtA - Economy will recover, private stuuy growth rate of 4.8 percent next year. Robert Rene de Cotret, president of the conference board, said today the second-quarter decline, while consistent with earlier predictions that 1977 would be a year of slowdown, “outght not.to be interpreted as. an indicator of future trends,"” “Indeed, we are currently anticipatinge stronger performance during the second half of 1977, which can be. expected to continue he said. De Cotret said the second quarter decline was due largely to lower spending by consumers. But increases in real disposable income,. ys” arising from income tax cuts, would lead to greater consumer spending in the second half of this year. . The board improvements | in investment in.machinery and equipmént, non- residential and housing construction, and the balance of.trade should help economic growth. Next year will show greater growth because of an expansion in investment, the board sald, but the expected recovery ‘shoul only be described as “mild.” The over-all number of jobs should grow next year at a rate of 2.8 percent and the labor force will grow at about 2.5 percent. HESPERIA Pat Een ete caCe el eceai sees aopaosre pctetatabeboletararsretetettatene Go-ahead planned Shows help to reduce unem- ployment from the expected 1977 level of eight percent, it will still leave the . 1978 unemployment rate at a relatively high 7.7 percent. The board projected a small slowdown in inflation for the remainder of the year, with the average of 1977 being 7.9 percent, still higher than government predicted levels of 7.5 percent. In August, the 12 month inflation rate was 8.3 percent, In 1978, the inflation, rate will drop to 6.7 percent, the board preducted. But thisis still well above the govern- ment’s anti-inflation target for ext year of four per- cent. , on land claims By DONNA VALLIERES a Herald staff writer _ Land claim negotiations between local Indian bands and the federal government may get underway at a meeting next Monday if. newly appointed Indian Affairs Minister Hugh Falkner keeps the appointment made by former Indian Affairs Minister Warren Allmand, _ Neil John Sterritt, land claims co-ordinator for the seven Gitksan-Carrier bands from the Upper Skeena and lower. Bulkley Valley rivers, said the meeting would be the result of three year’s hard work by the tribal council to establish aboriginal land daries. He .said the scheduled meeting on Monday at Kispiox Village would begin with a ceremonial public meeting to describe generally the tribal coun- cil’s position on land. claims and would be followed b closed sessions wit! government officials. to begin more detailed discussion. He said the meeting will be an important step in land claiin ‘negotiations . where both sides would “talk in House splits over resources board — VICTORIA (CP)- Second reading debate on the controversial bill to abolish the Vancouver Resources Board began in earnest in the British Columbia legislature on Monday, but not. before another procedural dispute delayed proceedings by about dalf an hour, Debate on Bill 65, the Community Resources ‘Board Amendment Act, 1977, was cut short on ‘Friday when Human ‘Resources Minister Bill Vander Zalm forgot to formally moye. second reading after delivering an shour-long speech to open the ebate. . . Opposition Leader Dave Barrett siad then that it was his party's position that ‘Vander Zaim had _ ef- ‘fectively -killed the bill through his error, a point hotly.diaputed by the-Soclal . Credit government... However, on Monday, Barrett . admitted in the “the bill cannot be killed permanently, the bill cannot be dropped.” He said, though, that the govenrment did not have the right to. proceed with the legislation without sub- mitting a written motion, a procedure which could have delayed the debate for at least another day. Attorney-General Garde Gardom, government House leader, said the govenrment was well within the rules of the House by intending to begin debate without the formal motion. ; Speaker Ed Smith ruled that. the governmerit position was correct, but Barrett challenged the speaker's ruling. The ruling was upheld by a 27 to 18 yote, with ressive Conservative leader Scott Wallace and Liberal leader Gordon Gibson yoting with the government. Dennis Cocke NDP-New . Westminster began the. opposition attack on the bill, saying Vander Zalm’s defence of the legislation was ‘‘prejudiced beyond ef, Cocke said the bill is just one more aspect of the *nower-hungry’’ Social Creditf government which has done everything within its power to reduce the rights of people, com- munities, and municipalities. He said that dismantaling of the board was neither logical, desirable, nor ethical. The NDP whip said there was a large rift in the govenrment caucus over the bill, arid that opposition to the legislation ahd led to Vander Zaim threatening to resign if the bill wasn’t: followed through. Cocke also back RB personnel who have issued a detailed rebuttal of Vander Zalm’s Friday speech. Gibson said that through the bill, Vander Zalm has “kicked thousands of hard- working community ‘workers in the teeth.” - “Y'yve never seen such an upwelling of popular sup- port against the bill,” said Gibson. mo “My mail has literally been 100 to one in favor of he, VRB and against Bill Wallace said the minister was using a “sledge ham- mer to kill a fly.” The Conservative leader agreed that there were instances of minor problems in the VRB, but Vander Zalm had totally over- reacted, and in doing so had totally misrepresented the facts. “The minister revealed in his Friday speech he was something less than honorable,” Wallace said, “The facts and figures that the minister did quote have have many inaccuracies.” Charles Barber NDP - Victoria said that the bill restrains and restricts freedom, and called Vander Zalm's charged against the ' VRB “phoney and erroneous,” He said the bill represents a “hopelessly and per- manently impaired social services policy.”” Liberals defend blacklists PRINCE GEORGE, B.C. (CP(- Members of the British Columbia federal liberal caucus attending a weekend conference here have stoutly defended the federal government's use of “blacklists’’ in the late 1960s, The action was needed to guard the security of the couniry in troubled times, they argued. here Saturday. “Ninety-nine percent of © the people of Canada" want federal authoritles to take steps to guard the country’s security, said Simma Holt Vancouver-Kingsway. The blacklists issue came up several. times at the conference in this northern B.C. city, whose local Progressive. Conservative MP Frank Oberle raised it in Ottawa early this year. Oberle revealed a letter circulated in 1971 by then Solicitor-General Jean- Pierre Goyer which listed about 25. people as having subversive intentions. Solicitor-General Francis Fox later told the Commons the list was of civil servants suspected. of leaking classified information. Last month Oberle government has several such lists and that security agencies. and the RCMP were being used by Prime Minister Trudeau's office as a political tool. . Holt said that during the 1960s, the media and op- position criticized the government for hiring left- wing activists. “Then you come along now and you're schizophrenic because we were watching people,” she Sa. Senator Ray Perrault, Liberal leader in the Senate, Iona Campagnolo, minister of state incharge of fitness and amateur sport and Holt all said security checks are run. on members’ of Parliament and their staff who have access to con- fidential information. “The security stakes in Canada and. the world are extremely high these days,” Perrault said. Asked during a press conference for her definition of a subversive, Holt replied she thought it was “anybody who threatens the peace and security of the national fabric in the general sense.” Justice Minister Ron Basford interjected that the legal definition of the crime of subversion was. much narrower and included only passing on state secrets to foreign governments or working towards overthrow of the govern- ment by violence. “In a free society the concern is a rather narrow one,” he said. Asked if she opposed such groups as Maolsts, Halt said: ‘I happen to dislike people who don't like freedom.” Reminded that she had the ' recently called some newspaper reporters Maoisists in a speech in. she still felt some newspeople were ‘‘more prone to Maoism than to our style of democracy.” She further criticized fournalists, saying they often engage in ‘‘self- serving censorship”. She said Ottawa reporters recently failed to record the House of Commens ob- ’ jection to newspaper use of documents leaked from its committee on penitentlaries and the CBC failed to report a controversy regarding its payment for a newsin- terview. Basford disagreed, sa generally, in dolng their ies the pross are respon- le. Leaves the key to world energy VANCOUVER (CP)- The green of a leaf is the key to satisfying the world’s long- term energy needs, says a Nobel | prize-winning chemist. Sir George Potter, director, of the Royal In- stitution of Great Britain, told the Vancouver Institute Saturday that he and other. chemists . are near duplicating in a test tube the complex chemical reactions of photosynthesis. These are the reactions by which plants use sunlight to convert water and carbon dioxide into oxygen and carbohydrates. The knowledge will enable man ot cheaply convert solar energy into fuels to replace diminishing reserves of fossil fuels, he said. “T am talking about the complete sclution to our energy problems by making fuel,” he said, . said man will make ar- tificial leaves. that will’ .on storing sunlight energy in liquid and gaseous fuels, and will not require large amounts of water and fertilizers as natural leaves D. He said solar collectors would consist of a rigid base and a transparent cover with water and inexpensive chemicals flowing in_bet- weet. If costs can be kept below about $14 a square metre and the efficiency is 10 percent or better, the system will be able to compete with conventional sources, he. said, Potter said his laboratory at the Royal Institution has in the past 12 months out crucial pieces of the photosynthesis puzzle by applying extentions of the ‘thesis chain. needs methods which won him. a share of the 1967 Nobel prize for chemistry. His lab has sorted uot the first. half of the photosyn- Two more years should see the steps assembled into a ladder, a one-step test tube reaction duplicating the process occuring in a green leaf, he Sa The endpoint of that half of the chain, a compound known as hydroquinone, is itself a fuel, he said, Straightforward chemistry should liberate hydrogen, a more useful fuel, from the hydroquinone’ while preserving the quinone for recycling, he said. Potter then said that when the rest of the photosyn- thesis reaction is wun- derstood, it will be possible to make carbon-containing fuels like alcohol and syn- thetic gasoline. earnest.” Sterritt . would not elaborate on details of the claim, but said the main issue was land. Aboriginal territory of the Gitksan- Carrier tribes covered a total of 20,500 square miles from outside Cedarvale to the head. waters of the Skeena River. ' The 4,500 native people in this area have been relegated to 41 square miles of reserve, Sterritt said, including the villages of Kitwanga, Kitseqeucla, Kispiox, Glen Vowell, Gitanmaax, Moricetown and Hagwilget. - Purpose of the meeting, the land claims co-ordinator said, 1g: to. inform ‘native ‘poopie of thé area of the land ‘claims ad ‘to provide “greater local awareness of the issue and the process.” At the meeting the Gitksan-Carrier tribal council along with village eldera will present a map autlining the territorial limits of the member villages as well as a declaration of intent reg future bi-lateral negotiations between the federal government.and the natives of the district. These negotiations will consider all people of Gitksan and Carrier an- cestry both status and non- status. . Sterritt said that although the present land claims in existence for only three years, tribal chiefs have attempted to negotiate a land settlement for the past eentury, ‘“‘but nobody listened." Since being forced onto reserves, the natives were not allowed to purchase land,. their hunting and fishing rights were eroded, and various federal and provincial laws prohibited them from harvesting and trapping in traditional ways, Sterritt said. “We will be seeking cash compensation for erosion of these rights,’ he said, alth he did not state what figure would be. Sterritt said the meeting would .be “‘the first small step” in negotiations and it would be three to four years before any settlement ia made. . “But we're patient,” he added. was not expected to par- tielpate. in . Initial negotiations, Sterritt said, because of the receni statement made by Labour Minister Allan Williams denying that the province was involved in land claims negotiations. Willlams instead referred to past talks with Nishga tribal council as “discussions.” Sterritt said he was upset ’ about the abrupt change in federal ministers respon- sible for the department of Indian affairs and feared the meeting would not go ahead as scheduled because of the change. However, he said, new minister Hugh Falkner was a good choice for the position because of his experience in native issues. Sterritt.said he expected the meeting date of either beconfirmed or postponed this week. Falkner's office in Ottawa was. uncertain as to the minister's itinerary for the next week and did not state whether the meeting would go ahead. Brian Hartley, B.C. negotiator for the office of native claims of the department of Indian af- fairs, said he hoped the meeting would go ahead on Monday because it has been scheduled twice before and cancelled, Hartley plans to attend the meeting, along with the Minister of Indian affairs and Skeena MP Iona Campagnolo. — The Gitksan-Carrier definition of aboriginal boundaries .is the. first componant in negottation, Hartley said, and in meeting with the tribal council, the government is showing its intentions of serious negitiations. “There’s much more to come,’’ he said. The government has made it a polich to negotiate Indian land claims since 1973 if the claimants can establish that they have. never been compensated for lost land, Hartley. said, which is the case with the Gitksan-Carrier tribe. “No doubt they have a legitimate claim in the eyes of the federal government,” he said. No position has been taken by the government until the first meeting is held and the. native spokesmen present their boundary claims. . Hartley said that possibly the reason for the Gitksan- Carriers wanting the meeting hinges on the fact that the Nishga tribe of the Nass region has already approached the federal government on land claims- issues. Once. boundary maps are established, it may be discovered that there is an overlap in the Nishga and Gitksan-Carrier claims, Hartley said. | He stated he felt that B.C. was still willing to negotiate, . despite Williams’ denial. In the last meeting bet- ween the Nishga tribal council and the federal and provincial government last October, it was agreed that both governments would reply to the positions af the Nishga tribal councils. Ottawa has been waiting for a numbe rof months to find cut B.C.’s stand so that joint reply can be amde, Hartley said. He said he expected the reply to be made later this year, depending on Vic- toria’s position. Seas SAnaee ti tocececitenetatatese ‘ * Weather Mondey Hi-12 Low-8 3 millemetres of rain in last 24 hours Tuesday Hi-15 Low-9 Cloudy and rain, with a few sunny perlods,