. Page 2. The. Herakd, Thursday, June 17, 1962

se her ald <2

Pubiied avery weekday at. “solo Kalu ‘Str i
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ay ‘Editor: .
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novice OF COPYRIGHT ..

* The Heratdretains full, complete and: sole copyright ,

~"'Ini any advertisement produced and-or any editorial .
or.photographic content published in the Herald. .° -

° . Repradirction Is not permitted without the written

- Permisston of the Publisher.

- Salaries 5 cut?

OTTAWA (CP). - Prime Minister * Trudeau and. his -

if cabinet ministers may take a pay cut ta set an example of.

= restraint for other Canadians as a key part of the Liberal
", government's attempts to stop ~the country's economic -
“tailspin.”

: Ordinary MPs will see their pay froten and federal public

” gervants will face wage controls if cabinet approves:
_ Measures given widespread support at a marathon Liberal .

" caucus meeting Wednesday, sources sald...

On the Way into a cabinet meeting today, E myloyment:
Minister Lloyd Axworthy said caucus had given: “a pretty ,
: clear forceful get of signals.” ;

«It’s our job to translate them into action. "

Other measures likely to tind their way into an economic :

: statement . by. Finance Minister Allan MacEachen |

t

r

sometime before Parliament's summer recess are” job

: creation programs, including a housing program paid for ~

with money | originally earmarked for failed energy -
projects; they sald eg

Amid grim economic news-and sliding: popularity. at the
> polls, Liberal MPs recommended possible economic cures

: ranging from massive job creation programs to tough —

": spending cuts and a ‘national Program of wage-and-price -
. controls.

But the picttire emerging from the seven-hour session
. indicated a search for middle-of-the-road solutions to ease
’ the painful. side effects of high interest rates —.such as .
> record unemployment — without surrendering the fight -

' against inflation.’

Prime Minister Trudeau and MacEachen: listened to the
various suggestions which will be filtered through cabinet

and another caucus meeting next week before any an-

: nouncements. ; "

Sources said there were some calls tor acabinet shuffle to
., help restore the Liberals’ image, but no one reported ‘direct

’ demands for MatEathen's resignations. «

A federal wage-restraint package is “g foregone con-

clusion,” said one MP. ae

" Others agreed there was a consensus in favor ¢ ofa freeze.
on their $64,80-a-year salaries and for controls of federal
“Public servants’ Wages as an example of the voluntary .

restraint the government wants to see in the private sector.

. Trudeau, who makes about $120,400 In- salary: and ex-
penses, and cabinet ministers, ‘who get about $102,100,
would go even further by ‘taking rollbacks.

"Late Wednesday night, caucus chairman Gilbert Parent’.
- described the session as productive because MPs offered

_.. solutions Ld problems. Father, ‘than “Just Sriping about -.

them."

As the Liberals re-examined thelr economic policy, the’

. for investment, repeal of some Noy, 12 budget measures,

. Canadian dollar sagged toa new all-time low of 7701 cents

Us. .
The battle lines in caucus sand cabinet are drawn between
those led: by MacEachen, who want to hang ‘tough against -
inflation, and the so-called spenders ‘who say it’s time to
Stimulate the economy because. the anti-inflation-fight ien’t-

- “working and could do irreparable damage to the economy. *

Trudeau and MacEachen- ‘argued the federal ‘deficit —
‘reported to have: risen-as high as $16 billion from "$10.5
billion forecast by MacEachen last fall — cannot be pushed -
higher and the government is Ilmited: by. poor world
economic conditions which have reduced demand. .

~ Other proposals Wednesday included new tax incentives:

‘streamlining of foreign inveatment review rules, an end of .
automatic coat-of- living increases for “benefits and
incomé tax exemptions, interest-rate relief for some groups

“ ~and: changes. in- the.nationai energy. program

a

"You dropped your sheet.

_af-glass back. there!’ *

: “nate Indian tribal: counell, was a "

Wares 7 fy

VANCOUVER <P) — George’ ‘Watts said 10. yeara go °
he'd rather toot, an RCMP olficop than speak toa room fl.
ees Wediiesday, yy Watts, chien

BCU, officers.
hernl, has talked to ‘ROMP daniel ‘ata orbed i a

"featured several heated debates.

-{*The majority open theit eyes and have a peek but. there -.

a no.way you're going to educate people, in a two-hour

~“seasion. I just hope they will see through a lot of the myths -
‘so that the next time they pick up an Indian in the line of

- daty, they will treat him with no respect. eee

p "perfect aid, it's heading in'the right directig

education course, training sessions held about six. times pa
' ‘year to gl ve officers a better understanding of native Indian - ne RCMP int by. ecteating members of the foree, things
. ~ Walls aaj’ takes a iallitic approsch jo th sessions, | : :
. “Tiere are always some people you aren't going to help," ~-
he said-in an interview after the 21-hour session, which

“there won't be'as muth five years from now; Some guys do

hye

\ witht spoke a an bod cls settlements and hw ip wants
i ta’vee his: peopie'return to their native language and close

. ““tamnily units and: get away from-aleohol. :

., Although , 8: RCMP’s, policing of the reservea ig not"

ive" Bot his first: taite.of:-law enforement

saw One of his beat friends beaten by. RCMP.
: officers, when ‘he refused to admit he-had. stolen ‘a-car
- Watts said his people havehad a ‘very darkhistory”! witli

go: back to. their detachtuents and try.’ mw:
.... Wattd sald more officers are going out to the reserves to
talk with the people and try to understand their way. of life.
One member, atatloned in Port Alberni, wrote a handbook
on the customs and culture-of the community, profiling
several of the Feanree's Prominent people, = 5 5

a i

i

fe int Mike Hewat, head of, BE. native po Af,
‘wee churge was made part of basic t training in 1976 § nent |t

, was fell. a certain amount of awareness and understebding Sy
was. needed to police minority groups such as. the.nati i
Indl

plaints: by ‘native people agalriot RCMP officers

dropped, sald Hewat.:, .
erelationship between the detachment perdonnel’and

trhproved | on and off the reserves,” he ald.’

“culture.

” ST¢ they have had very. little contact: with native Penge
‘and. are sent to Prince’ Rupert-where they may have .
negative contact. with native people, those negative —

examples may confirm their sniaguided stereotypes," said
Hewat. “That can’t help but affect him ‘and the people he’s

* dealing with because he's not peeing the total Pigtare.”

- Canadian dollar. accelerated into freefall _

the “Canadian dollar's slide” accelerated into a freefall ;

~ Wednesday: as the vulnerable currency broke through the
. Tecent barrier,; just two days after dropping below 79 cents.

+ Itelosed at 77.91 cents U.S.--.down from 78.25 Tuesday —
follbwing. acday of erratic swings that at one point saw it -

~ bounclrig -from 78.53.down to 77.87, a shade beneath the

dismal closing quote, A strong U.S. dollar and high U.S.

interest: rates were the main factors in the currency’s fall.

‘The Canadian’ dollar was not the only one to suffer as _
_ Morgan Guaranty Trust Co. in New York reported the U.S.
currency bit''a 12-year high against the currencies ‘of its
‘major trading partners.

However, the short-term outlook. for the browbeaten
Canadian buck, which hag set three record lows in as many
sessions this week, may not be entirely gloomy. |

: Some analysts feel the currency has been oversold sey
and expect. it to rebound by perhaps. as much as a cent ;

within the next week,'.

‘A further upward push-may come wt the release today
of the Bank of Canada's trend-setting hank rate, which has
risen weekly. for the past month as the central bank at-
- tempts to defend the dollar.

Hi the rate increases more than anticipated - =a jump of

_ between one-half to two-thirds ao a Percentage point iswhat —

of

. CALGARY (CP) — OW sands development is the
quickest route to oil self-sufficiency, says the
‘president of Suncor Inc. — :
But large developments néeded to exploit the
" Fesouree won't. be built unless governments provide
political and financial stability, Ross: ‘Hennigar said
' Wednesday. Creating that stability: may mean ‘tur-
ning oil sands projects into public utilities, giving-a

im poteyig

_ Pensive: projects. cryectane vi
The trendy viewpoint is that developments, such as

| delayed $13-billion Cold Lake heavy oil development,
’ in northern Alberta, are dindsaurs whose time is past,
. -Henniger told a ‘business gathering. .

“While Alberta pil sands development ls not being

- provincial governments, as well as in the ofl industry:
are saying efforts should now. be concentrated on
smaller, ess costly projects.

‘Hennigar betieves larger projects are the only way
to properly exploit the resource,

The oil glut_and attention focused on frontier ex-
~ ploration have lulled many Canadians into thinking a

fs Sumas comes ete8 =

corner, he said; However, world gil prices are again
beginning to.rise and frontier productlon won't be
- significant before.the-end-of the decade.

__ “In my view, Canada has no choice but to invest iis.

. as quickly. as possible,” said Hennigar,

Suncor, '95-per-cent owned. by the Ontario govern-
‘ment, runs a 45,000-barrel-a-day synthetic crude oil

' plant near Fort McMurray, in northeastern Alberta.
Begun in the late 1940s, it was the first commercial oil

| sands ‘project | to begin production. It was joined 10
sent paanbbenees eae

era WEEE Vee T ETT O ere rE Tener

— - Isolation has its price

: BLACK TICKLE, Nad, (G
—has- been: -delayed -this -y
- tucked-away Black Tickle are anything g but funny."

“Liberals uncertain.

” OTTAWA (CP) —

— The spring supply boat *

- Canadians to lower their sights. .

While refusing to ‘confirm’ reports from.a caticus meeting
‘Wednesday. that cabinet ministers’ $102,100-a-year pay
package. will- be choppéd, ‘ministers - indicated ‘their
-, agreement with the idea, |

Treasury Board President Donald Johnston said hetook as
* pay cut when he went-inte politics and Trade Minister: Ea” |
_. Lamley sald he chopped his: own salary when he'w was ; mayor

Te of Cornwall,:Ont,. |

Z “Nobody. likes a pay cut but sorrietimes, ‘i's neceisary,"
-. Lumley told reporters on his way. into a cabinet meeting to’.
* conalder. various economic: eures. prescribed. by Liberal

<"MPs:Wednesday. .-

-Alation. Sand: that: includes cabinet Tnlnisters,”. 2...
oe AE it’s a-matter of. ministers. and MPs. accepting: less”

‘money to show the: way, I think that’s an effort well worth” coat but Keefe still had to pay 400 4 a load tfrom | St, Anthony ~ =
; ee co >, HR HAST ‘load from St. Barbe,

+ making.’ Mee
‘Industry Minister Herb Gray ‘vaguely ack

"would be bappy:‘‘to make contribution to solving | ‘the ©

overall situation.’ rn a

* Indlan AHairs Minister John Munro refused to. comment
oi thé’ grounds of cabinet golidarity, saying {t would be:
«chaotic if each minister gave his personal ‘opinion.

Sources ‘said a- federal Wage-restraint. prégram isa

foregone coviclusion. me Be a

a

=
a
3
Al
77
a
a5
Es
4
a |
aT

i, iI development n needs stability

_ years later by the ‘nearby Syncrude Canada - Ltd.

* risks,

.. guarariteed ‘profit: te sattrats investors to the oe

“the: cancelled $13.5-billion Alsands plant and the.

written off completely, experts in‘ the federal and

" ments are ready to tax away the profits once the .

_ new era of cheap, plentiful oil is’ just arpund the —

money and its hopes into the oll sands of this province ~. gmall-seale plants, such as Suncor’ 8 Fort Kent, Alta.,

" pilot project where steam is injected into oil: ‘sends. a

PeRE EOE

Several Liberal cabinet ministers said -
; today they would take pay cuts {o encourage other :

a "nearest sizable community -i in: ‘Labrador.

: “stocking. Black Tickle’s two food storés.-Keefe, who is alia
. somrhunity council “chairman, . hdd. eight ‘plarie-lodds: of 8

wt ‘Employment; Minister’ ‘Lloyd Axworthy ‘bald ‘there Is: i :
: reed for testraint. by ‘all: Canadians to help bring ‘down ine ;

the market expects; tradets said — the dollar would ely
benefit. : .
“Tn another: development, the $821-milllon Bomberdier
Inc: deal to sell 825 subway cars to New York City came
under more fire Wednesday because of the financing help it
got’ from: Ottawa — "but -this. time from: a ‘Canadian
businessman.” vO
Douglas Reekie, president of CAE Industties: Ltd, of.
: Toronto, said although several countries — France, Britain;
Japan included — make predatory, export financing
available to their exporters to ‘eliminate forelgn com-
. petition, the U.S. does not. _ And, Reekle said, it maked little
_Ssense to use auch measures against a fair-rading nelghbor..

“To cement the deal with Montreal-based Bombardier; the’
federal Export Development Corp. Is lending New York 85:

per cent of the purchase price at 9.7-per-cent interest over -

15-years. The deal has come under fire from U.S. business

and political officials who say ‘it. is; ‘unfair competition to

"American industry. -. -

’ “The irony is that the-U,S. government salt does nat

make, available this kind of subsidized predatory financing
. to its own industry, and is more than a little upset that

Canada has chosen the U8. ranrkelplnes to make its ex-

oe

eas

operation. :
Hennigar said Suricor's forerunner, Great canadian ‘
Oil Sands.Ltd,, dealt with the same questions ‘facing
large projects today: uncertain oil ‘prices, high
development Costs, technical problems and Political

“
0.0.0.8,

The engineering hurdles: have been cleared and the .
jeconontier projections: bone oltt by cYising prides?

: However, the political climate has altered drastically: 11:3
and affected Suncor’s operation>:<:r::71 Riatteyial art ta

"Some $125.million has been ‘spent to date to. meet .
environmental guidelines changed several tlnes and -
Suncor ‘battled the federal government over ‘prices
for expanded: production. Hennigar said investors.
will beducky to make'a taper cent return during the
plant’ 3 lifegpan. -

Oil sands -plants are vulnerable hecauise of thelr 7
high initial cost and limited production life— about w~
years. .

The Suncor president’ said investors ‘should | not be
asked to risk billions of dollars and find that govern- .

auth

in SpE meng A eae rs

* project is.a success, he said. - ;
Hennigar said Canada must reaitirm | its ‘com-
raitment: to develop the oil sands on a large scale . -

using the known technology pioneered at Suncor and .
’ Syncrude,

In the short: term, government, policies should.
encourage

deposits to force biturien into extraction wells. °

The most important move ‘should be for both levels |
of government to create a political and financial
framework encouraging larger developments, | &

ara!

va

‘Hennigar_ said. . ; Te BRS

senasannnetoesnoaonnase EERIE z

 ¥et, says storeowner Joe Keele, “It's a nice. place to,”

and. the -prices : of goods. nivel.

The 250 residents of this tiny coastal fishing, community in

- Labrador do not expect the boat to get through until the end’,

of June. With ice stilt clogging the supply lane,’ planes are
depended on to keep the opample in food ‘and other neceasities

of life.

‘southern consumera, the prices will.

A dozen eggs cells for $3.30, when. they get them. That |

-gompares with about $1.32 a dozen in Halifax, $1 As in St.
‘John's, Néld., and $1.08 in Winnipeg.

* “Canned milk — the only kind around — is 90cents tor a 280:
.. millitre'tin, roughly a third more than it costs in Atlantic |

“Canadian cities. Cabbage. is- $1.60 a kilogram *: and :

cigarettes, $1.00 a pack: : ;
- They don't ship in bread; they makelt, 2.
"Black Tickle is about 100 kilometres pom ce Cartwright, thie -

Small. airplanes carrying 459-kilogram, ond | have pean’

“groceries flown in last week from, St. “Anthony a and St Barbe ©
OD. the island: of Newfoundland. ;

the. Newfoundland’ government nba some eof: ite’

. "What do the people’ ‘of Black ‘Peke do when’ she re. @ not ,
waiting, for the’ ice to melt and the boatlo of food to
arrive? a
“They fish, sald Keele, almost every day from, thie end of.
June until about the end of November. Black ‘Tickte’s one

” fish: ‘plant employs 60 to-60 during the sédgon,: = .
When they are not fishing ‘for salmon’‘and cod, residents: *
- hunt, trap, and get ready to fight: the batfering winter.

- ‘

_, Started with the Constitution a
: start work on a petition almed at forcing a federal election.

wie - . _s

Téthe delay of food and other + goods is not eno to deter oe

ceptional effort,” " Reekie told the company’s anni
meeting. .
In other business news vs Wednesday: ~

— Canada's gross ‘national product is likely to shrink 2.6
- pr cent in 1982 and grawth-is not likely to resume until late ©

in the year at the earliest, said.Leo de Bever,, director of.
‘Chase Econometrics ‘Canada. The head of the Toronto
_ forecasting firm also said unemployment in Canada’ is
likely tohit-11 per cent by year-end because Ottawa 5
economic policies aren’t working. .

. + The Soviet Union will buy the malnirum 4, 5 million
tonnes of grain for which it has contracted In the: 1982-83
crop year, but it's too early-to bay whether it will buy more,
_ Wheat ‘Board Minfster Hazen Argue sald’ after returning
from an eight-day visit to the Soviet Union, the No, L tayer
of Canadian grain. .

a Canadian: steelmakers could benefit from’ a

pliers to bid for sales, aus. wel, industry
Charles Bradford of Merrill’ Lynch, Pierce,
Smith says modern equipment, good management; high
capacity and the deflated Cariadian dollar are advantages
Canadian -producers | have in . competing with .U:8.
_Steelmakers for the car manufacturer’ 'S business.

| Election demanded. :

; EDMONTON (eP) — A tate of political activism ‘that

ans. : -
“Since the begining of ite gourse, the’ number 0 som

hand and: council and. 'realdents of the reserve hive z

... Hewat iaid the course ig helpful for new recruits coming 7
from: other Provinces who may be wnfarnlliar with tative

5 prompted Iris Youngren: fo.

aA

Youngren, a Calgary housewife who calls. herself a.

- “professional volunteer,” is chairman of* the’ Canadian

Citizens Constitution’ Committee which ‘is organizing a

; petition asking that Gov. Gen. Ed ‘Schreyer dissolve

— Parliament.
“We must be allowed to choose better representation lf
weare ever to.return to the land of opportunity this country
“tect "i savedn advertinements jt plans tq ryn

peeeDh pert if i

ri wis rad UIE NG vet afomto
“i scene Wis be es ee |

a ‘Calgary, Edmonton and Vancouver i ele

Youngren said in a telephone interview the fedetal
- government must accept responsibilty for. current In-
_ flation, taxation, interest and. unemiploymment, rates. in

Canada.

“without frying to do something,” she said.

_- If Schreyer refuses to act on the petition. “hecausa. you ;
: don't hitethe hand that feeds you,” she said the groupplans ~
- to organize the signatures according to ridings from which -.
"they originate... *

The breakdown ‘will be used to pul pressure on n Liberal

MPs in various ridings to defect,-or at least be absent from: ’
ihe House of Commons if the apposition is able to call anen- Ff

confidence vote,

.“We the undersigned “Canadian ecltizens, "the petition.”

says, “having Jost confidence ‘in ‘the present. federal.

". government, humbly beseech that you, Your Excellency |

the Governor General, in your appointed position use the

_ powers. bestowed upon-you to demand dissolution of the
. aforesaid government and allow we the voters to exercise
: qur : franctiise ‘according to the democratic procedure as set
* out in the Canadian Constitution.” *

Youngren and the loosely-organized committee, with fewer
‘than a- dozen ‘actively-invelved” members across the.

: sald, collected 69,000 signatures. -

©" "Dé group.was also concerned about: the ‘Constitution’ 8. 5
". amending formula and inclusion of the Charter of Rights

while the document was in Britains ~°
+ That attempt cost-about $10,000, she sald, including the
- cost of sending Youngren to London to present the petition
to-the British Parliament's all-party committee on the

” Constitulion. All the money, was raised through private and ;

corporate. donations: ">.

7, She would not: estimate ‘the it ‘of the iaiteat' venture, nor

comment on how many ‘signatures the group is hoping to.
_ gather, adding it retained the Constitution committee name
"because of credibility eatablished a during the earlier ven-
. tue. ay

Kitty is empty-

‘(ORONTO (CP) — There may be nothing. in the.
_‘Kitty.to pay the $14 million in unsécured debts. of
. ‘Canada’s fwo Largest. travel tour operators, a.
: creditors’ meeting was. told ‘Wednesday. ve
.Dyavel: ‘agents; hotel aperators. and: suppliers to
Sunilight: Vacations: Ltd. ‘and: Skylark. Holidays Ltd.
‘travelled f from as.far aWway'as: Portiigal, Plorida and
the. West Andis oar: th : poe

+ ms ‘= ral
veo “the two ‘subsidiaries “of” the’ “holding ‘company.
. Caltrav Corp.; which: bought Skylark just six weeks’.
~béfore ; tnoying Anta’ voluntary. di dation, were were!
“]  Gectared. bankrapt ‘early May. ° oar
: - Officials ‘Of Clarkson: Co. ‘Ltd.; the. trustee in»
: bankruptcy, told ‘Separate creditors’: “meetings the.’
liabilities of the two companies ‘ndw are estimated at”
: |= to. $21 million. Realizable ansetn are about ®.
‘Millfon. renee

7 Ww. A. Tréleaven of Clarks valdit it will be decided °

in court later | this summer or ‘fall whether some cash
| inbank accounts will be’ considered customers’ funds | i
’ held in trust. :

a

“We would hate to say that we Jet all these things hippea 7

country, put together a petition on the Constitution that, she .

ee toa .