| Page 4, The Herald, Friday, January 2, 199% “ daily ‘ak General Office. 635-4357 Published by Circulation «435-6357 — Sterling Pubtishers Publisher — Garry Husak Editor — Pete Nadeau CLASS. ADS.- TERRACE . 635-4000 CIRCULATION - TERRACE - 635-6357 Published every weekday af 3010 Kalum Street. Terrace. B.C. Authorized as second class mail. Registrationn umber 1201. Postage paid in cash, return postage guaranteed. . NOTICE OF COPYRIGHT The Herald retains full, complete and sole copyright in any advertisement produced and-or any editorial or photographic content published in’ the Herald. Reproduction is not permitted without the wrilten J \_ permission of the Publisher. y, The Red — engine | that can’t. MOSCOW (AP) — Soviet officials triumphantly inaugurated pas- senger flighis on their TU-14 supersonic jetliner, the problem-plagued plane is out of service, back in . its builders’ hands and still undergoing tests. A spokesman for the Soviet ministry of aircraft production said this week thal the tests are coming to an end and that the 140-passenger plane couid soon be back in service. He declined to predict when regular flights will resume, and references to the supersonic jet were missing from official congratulations to: airline workers published Jast week in the Soviet press. The spokesman claimed the safety of the plane, a. prototype of which crashed at the 1973 Paris air show, “now has been assured.”’ : But Western specialists say they still suspect the plane has problems that could affect flight safety. Only this, they believe, could account for the lack of mention ef the plane in the Soviet press and the absence of more demonstration fights. The aircraft industry spokesman, however, said the TU-144's problems are basically economic. The plane's Western rival, the British-French Concorde, has also suffered from high operating costs. The slim, needle-nosed Soviel craft was once expected ta beat the Concorde into passenger service, but was finally inaugurated as a passenger feton Nov, 1, 1977, 21 months behind its rival. Previously, it had carried mail and cargo.” The new passenger service was presented with great fanfare, and foreign journalists were invited Om 8 3,200-kilometre wine-andtaviar demonstration More than three years after — omer ABOUT THE ONLY THING WE | DON‘r HAVE To WORRY AbouT F IN BI 'S THe POSSIGILITY THAT REAGAN MIGHT GET | ELE CTE DS TRA DE IN CHINA. ESS .The-bloom comes off ’ Reporters aboard said the flight was smooth, but some claimed vibration noise forcéd them to communicate by writing notes to each other. The aircraft's designer, Alexei Tupolev, said at thetimethat the aircraft had already been tested in four million kilometres of flying and that noise inside the cabin would be reduced. Fears for the safety of the aircraft date from the, Paris air show incident, when a prototype exploded in the air as 30,000 spectators looked on. Thirteen people, including six crew members, were killed and flaming wreckage destroyed a dozen homes in the Paris suburb of Goussainville. No major accidents since then have been reported, and the plane flew for a time between Moscow and Alma Ata after the 1977 inauguration. Flights were later suspended, however. Eight to 20 of the aircraft now are believed to exist. " In June, 1979, the Soviet press said a new version of the craft had made a test {Light to Khabarovsk in the Soviet Far East and that the new plane would | soon go into mass production. Since then, almost nothing has been said about the plane, except that one aircraft was given to an aviation museum iast March for display. HONG KONG (CP) — The bloom is off China as a glamor market of 900 million potential con- sumers, in the words of a Canadian trade official in Hong Kang. But Canadian industry still can make a dent in the emerging market by concentrating = on technology and small-scale projects in agriculture and forestry technology, say government and business officials. Although Canada has made less headway than expected in the decade since recognition of the.” People's Republic in 1970, trade and spokesmen say there is a new realism about trade - banking ~ prospects in China in the 1908s. The big iterns will con- tinue. to be commodity sales of wheat, potash and pulp — the bulk of about $700 million in exports in - 1979 — rather than quick increases in exports of manufactured goods, says Arthur Menzies,: former ambassador’ to China. "If we could deliver regularly to Pacific ports, we cauld sell more than the two million tonnes we now sell,’ Menzies says. ‘Potash sales have nearly trebled this year.” - He acknowledges that Canadian companies have ‘ been frustrated at the slow pace of trade developments sanioomc rea dehefty raise!” “We ARE doing something about the dw Tmaliong a dlar a epropose ue givea Our. selves between the two countries, Saying: “Sometimes because China is slow to respond, some companies give up. But it’s worth persisting. You're not dealing with a small country of 20 million " people.” He. says @ number of small projects are possible over the next two to three ‘years, especially using joint ventures, which could broaden opportunities for Canadian trade with China. Although idarge-scale projects over the next 10 years are outlined in China’s plans, Menzies saya “‘we must convince the Chinese we are prepared to adjust plans to suit. requirements,” “It may mean starting with more . modest propositions,’ he adds, suggesting that closer trade relations will. be helped ~by Canadian _ assistance in education and" ” training of engineers and sclentists, A recognized’ China- watcher, Christopher Page of the Hong Kong and Shanghai Banking Corp., which has been in China Since 1666, says, ‘There's a massive period of. read- justment talking place.” In analysing the con- sequences political shift’ to the right, emphasizing economic modernization, Page says - the retrenchment is much deeper than firat en- visaged, He identifies some of - China ‘aproblerns as lack of management,” over: spending on large capital projects and declines in food production. As the National People’s Congress in September reaffirmed, China will development ° their — of China’s” . projects going” - business traffic, concentrate on email processing agreements in ” fight industry, textiles and agriculture, leaving big mining and pelrochemical projects for the longer term. Such a reorientation means that, while willing to use Western expertise in speeding development of — agriculture and light in- dustry, China is inno hurry to draw on foreignietters of - credit, including one for $2— billion signed with Canada In 1979. Menzies says China has Bivenasgqurances it will use with three or four Canadian * gompanies over the next 32 to 18 months. But he warns: “China ls very fiscally conservative, It ls important for Canada _ to realize this.” Page agrees, saying: “The opportunities for the credit for contracts © trade are very sIim. It’s a ~ _- Jong, alow road.” “Whether it's worth pursuing “depends on who "youare, he type of industry ~ and the size of company." “If, in the short term, you can develop other markets than perhaps it's * worth considering those markets,"" - | : ’, But Lf companies believe, ; _ that China will be a market at’: some. point, Page suggests, “you'd be wise to - at least touch base, but perhaps not, devote too many: resources now to developing trade." An the last year, China has cancelled some major ~ capital projects, seen as too costly at this stage of development. ; Page says the major ahead are hotels and offices which, in developing tourist and earn much-needed foreign - currency. ry The Heraid welcomes its readers comments. All letters to the editor of géneral public interest _ will be printed. We do, however, refain the right to refuse lo print letters on grounds of possible libel or bad laste. We may also edit letters for style and length, All letters to be considered for Pubbicalion must be signed,’ " duplications) af nine million, and they are as OTTAWA - As institutions, credit unions and cooperatives possess two evident : qualities: They are as grass- -roots as you can get, with a combined membership (including Canadian as beaver-tail ple topped with maple syrup. Less often noticed, but as Important, .is'a third quality possessed by co.ops and credit unions: They have lots of money. The com- bined assets of credit unions, for instance, exceed $25 billion, or about half as much as the largest of the chartered banks. To these three quatities, add yet a fourth. Excepting the calsses populaires of Quebec, credit unions: and cooperatives are quin-_ ‘tessential western Institutions, In’ SasKaf- chewan, for example. credit unions handle 40 per cent of all the personal cheques; 85 per | _ cent of the provirice’s farmers betong ta the | Saskatchewan Wheat Pool. ” From these four stepping-stones, now takea leap forward. As the most-imaginative of lis attempts to Canadianize the oii and gas in- dustry, the federal government will announce shorily the formation pf a new energy cor- poration io be created by a partnership of the ./ credit unions and cooperatives and the crown corporation PetroCanada. The New Venture’s purpose will be ta buy, and then: to operate, 4 aie of the multinatlonal oil compagies. PetroCanada’s role, as a junior partner, will be to provide technical expertise. The contribution of theco-opsand credit unions will be hard cash, initially a start-up capital of $50-: 100 million, to be matched by Ottawa, and’, subsequently ~ an acquisition fund “dt $500" million to $1 billfon'to be raised directly from! their members. —.. The scheme first was conceived last May be. Federated Cooperatives of Saskatoon which itself’ owns a small, 40,000 barrel-a-day - refinery and @ string of service stations. A Task Force of representatives from Federated, the Saskatchewan Wheat Pool and the credit unions then took the idea fo QHawa, and discussed it direcHy with Prime Minister Trudeau during his visit to Regina last month. ; :The ;, formula amounts io” “people's caplialism’’;. :Hundreds- of thousands’ oF ot. dinary Canadians would become parf-owiers | of a major oll-company -- assuming of course | that any of the multinationals:actua lly decide. to sell. This alliance with the co- ops and credit unions illustrates at the same time the “lean: to ihe left'’ formula the Liberals now are applying to try to win back the west. “Whenever everyone thinks of the west, ‘they-think of Alberta,’ says an Insider. “They - forget that the rest Of the west isn’t like Alberta, and indeed doesn’t much like:. Alberta.’” ™ The calculation here is that Alberta .socn * will visibly be the odd-province-out. In British Columbia, goes the reckoning, Premier. Blt.’ Bennett already has lost the next election, ta, | New Democrat David Barrett. Manitoba's. Sterling Lyon Is sean as almost as likely a. loser, again to a New Democrat, Howard. Pawley. (Ironically, a recent rise In, the: provincial Liberal vote to 20 per cent’ has handed to Lyon his one chance to survive.) _ Together with Saskatchewan’s Allan Blakeney, therefore, all of the west buf. Alberta, will be red, or at any rate pirkisi, within a year or so.. Within the same time | frame, some new Liberal leader. will’ have. _ replaced Trudeau, so that, as the Insider puts “1 “westerners will no longer have someone to. - Han So they'll be looking around for someone « ‘ to like”. For left-leaning ‘westerners, the most likeable federal leader, as isobvious, would be Blakeney himself. The difficulty, aiso ob- vious, !s that Blakeney Isn’t @ Liberal. As a. _ substitute for Blakeney as a “dream can-, didate” forthe leadership, the Liberals in- stead plan ta move as far and_as fast as they. can Into Blakeney’s ideological terrllory. One move will be on,ihe constitution, By the amendments on resource ownership due to be - announced In January, the Liberals hope to. "_ win Blakeney’s, and Barrett's and, Pawley’s,- support for the constHutionat package. _ A second move will be on $4 billion © Development Fund, due to be made public In February; Governmert insiders take - for’: granted that Alberta’s Peter Lougheed wild, . refuse all cooperation. . The last move is the planned joint venture’ between the credit unions and co-ops ‘and. PetroCanada. “Everyone says we'don’t un-” derstand the west, but you'd better belleve we. ‘ufiderstand that co. “Ops and credit unions © represent the west, -represent’ people, cand. have money”, remarked the insider. “We'll 9° as far with them as they want togo.” °: He didn't add, because he didn’t have to, Mat he hopes In feturn thal the co-ops’ and. credit unions wil larry the Liberals back into” the west -- abouf to that spot just fo thé left of ” ceritre where Blakeney now siands.. .: sod . ‘ oe Vi PASE TOTO rt i SAT TA Bae ns OO SOR Ur i FI hE STA PTE AT ELE DOE ROTTS at As gh