: “goverrinient

. _ permits for Canadian and:

a)

i
io

Page 12. The Herald, thursday, August 26, 1982 |

_U,S. plans trucking Soatitons 5

“WwiNNIPEG (cP) —US.

plans to
* restrict Canadian . and ~
~ Mexican’ trucking - routes |

by -the US, Congress ‘lage
oo week, spurred by. the ‘ob- |

bying: of: the. American -
Trucking Association, ‘could *
limit annual renewals of |.

” Mexican truckers operating

‘ in the United States. -

~<Calm

urged

WARSAW (AP) — - Areh-
bishop Jozef © Glemp,
speaking before $90,000
Poles, honoring . their
country’s holiest ‘Icon,
appealed today for calm in -
, the streets next Tuesday
* onthe second anniversary of
Solidarity ~-.a day the
suspended union has called
for countrywide protests.

The martialiaw regime
aceysed Solidarity sup-
porters of planning a bloody

_ uprising on the anniversary,

and warned it would use
‘force to-. put down any.
unrest. «

“Anger is a bad adviser;

‘the streets should ‘net be’

territory for dialogue,” said
|, G@lemp, Poland’s Roman
Catholic” ‘primate, in a
"speech from the balustrade
of -the Jasna... Gora:
monastery in the southern
Roman Catholic shrine city
of Czestochowa..

‘In, one of his strongest

. sermons. since the. im- °
_ position of martial law in |
Poland last Dec. 13, Glemp.
_ repeated” Roman Catholic
~ Church calls for revival of

‘Solidarity and an easing of
the martial rule under
which the union was
suspended,

“Release Lech Walesa or.
make it possible for him to

speak as a free man,” .

Glemp ‘said, adding tha:
freeing the interne
BOMAAbILY - leader “Woilld
have a calming effect on
Poland. “Begin pr-
.fqarations for an amnesty
and release of © interned
unionists. mm. !

The crowd, thought to be-
the largest gathering in

Poland undermartial law,

was. assembled at. the
- Czestochowa monastery to
- honor the 600th anniversary .
of the date in 1382 that.
Paulite monks brought to
Poland the icon known as
_ the Black Madonna.

Pope John Paul; “whose ..

-. planned visit to attend the

celebrations had been,
stopped, marked the
religious festival at his

. vacation palace in Castel

Gandolfo, Italy, in a special —
mass that was broadcast to |
Poland over .the Valican -

_ Faglig’s live ‘Polish-language

é |
é

” aaa

po

bition _—

_ Cougar
prowls

PORT MOODY, B.C.
‘(CP} —

Inlet city, about .10
_ kilometres . east of Van-
* couver, and parents are
understandably. nervous.

“= A provincial wildlife

officer with a pack of

cougar hounds scoured the

area ‘Wednesday but turned
ma) nothing.

; id was too bot tor: any -
decent... tracking, ™ said

:; Dennis Pemble,. animal

, Control officer. “T'll have to”
'\ wait: for another fresh .

sighting.”

‘Pemble had responded: to

"a reported: sighting at a

busy intersection where 8
resident said he was stalked «
~ in his own ‘backyard by. a
cougar’ thal. came” within:
two.metres.of him, ~

" “Dhede’s lots of (cougars)
in that area,” Pemble sald.

“They're a ‘long: way from,

“*peing extindt
"They're doing very.

well.”

oF Several house ents: aie

_ missing - in the area and
‘Pembie. said_ that: «: is
metinies. ‘a good—in-..

~ leation’a cougar is present,

ue ¢ proposed imitations, _ President Redigan( are hotly
which cannot become law opposed . by Canadian.
without: ‘approval by by een firma. .

7 awn waralngs. of!

. “Aleiag News Fete

There’s a cougar:
’ prowling the edges of a new
- - gubilvision in this. Burrard

- MacMillan Bloedel hedging -
. costing millions
A backfiring board policy wil] cost MacMillan
Bloedel, B.C.’s leading forest products company, -
millions of dollars in lost revenue this year. The
figure could be $8 million or higher. -
The board policy, passed four years ago, relates to

’ the MB practise of hedging on the exchange rate at its”

bank. (Other forest companies do the same, but not.
to the extent of MacMillan Bloedel in B.€.)
MB receives.its sales-dollars in U.S, currency to the
-bank, which gives the company a projected Canadian
- dollar rate as much as a year into the future. MB

agrees to deliver. a certain amount of U.S. dollars at

that rate.

The practise is known as ‘forward selling.” ‘The:
benefits are stabilizing cash flow so that capital ex-
penditures can be justified.

MB, though, is unique because its practise of for-

_ ward selling i is based on a board formula. It. takes its
receivables and anticipated sales for a 12. month
period and then tallies 100 percent of the six month
value and 50 per cent on the next six month figure. ©
The sum. of those Iwo figures, in U.S. dollars,
becomes the company’s foreign cover, set ata pegged
exchange rate.

As of. Dec. 31, 1981, MB had agreed to deliver

$334 million U.S. to its banks i in 1982,

Because the dollar dipped inthe first half-of this

’ year, MB lost millions of dollars on the exchange

rate, Its U.S. dollars suddenly became worth more,
but it had a locked in bargain to deliver them at a
lower rate, which was B1 cents Canadian.

During the first half of 1982, MB delivered about
$150 million U.S. to the banks. The few percentage —
‘points lost on the long term bank agreement tran-
slates into approximately $4 million.in lost revenue.
(Financiers don’t. call it-a cost, but rather an op-

- portunity foss, which is benefi t given up for pegging .

or hedging a rate.) -
The company still has the “bulk of its cover to
_-doilar in the second -half.of 1982 at 81 cents. Depen-
ding upon what the dollar does, MB's loss - in a year
when it eXpects to write its annual report in Jed ink- ©
could more than double. «
Although all B.C. forest companies don't disclose

. their hedging positions, MB appears | to dead the pack
in being forward,

‘B,C. Forest Products admits to playing the ‘spot
market occasionally and has some, (undisclosed)
cover, but it is ‘substantially less’? than the MB -
position, says a company spokesman, B.C, Timber’
has $48 million committed for the next part of. 1982.
dt used less than the $45 million during the first 1982
six month period, according to Jack Smith, chief
financ® of! icer of B.C.: Resources Investment. Cor-+
‘poration. It. is ‘trading on close-io an 80. cent.
Canadian dollar:

However, MB i is not out of its league compared to -
‘Eastern based-majors.:

The granddaddy.hedger is Great Lakes, which has ~

contracted to sell $990 million U.S. at an 83-84 cent
. Canadian dollar to the end of 1984. The Fraser group
-of companies, like MB, is trading on an.81 cent -
dollar. and contracted to deliver $318 million’ this’
year. Consolidated Bathurst. has. contracted to sell
$72 million U.S, at 83 cents Canadian until February
1983.

-MB's upfront position has culminated i in a curious
management position at head office..At the end of -
last year, management advised the board they would
no longer be following board hedging policy.

_ “We, then explained our concern about the: -

. Canadian’ dollar and advised the board at that stage

that we thought it was appropriate to scale down and
to stop buying any more cover. to allow the existing
cover to run oul,”” says MB vice president. (finance)
Graham Wilson... —

-“*At the same time (the board was asked) lo review
the whole question of whether we should have.a
policy and, if so, what type.’’

Wilson’ says- MB. will-be- “reviewing its policy on
foréign covers at an upcoming board meeting “in a
couple of weeks (August).”’

‘The previous. year (1981), MB had contracted to
“sell $516 million U.S. at an 85 cent average Canadian
““@6llar. The cover was scaled down'in. 1982 because
anticipated ‘sales and receivables reflected the sof-

~ tening world demand for forest products,
Why didn’t -MB “review’’ its foreign policy cover.

sooner?
“You are using hindsight i in saying that it. would

have been nice.not to have had that coverage for that. .

‘period of time,”’ says Wilson. The reason many com-
panies locked in overtong periods is that economists
predicted a Canadian energy boom that. would see a’
high rate of domestic investment by foreigners, thus
‘strengthening the Canadian dollar.
A Canadian dollar trading at par would have been
“equally as disastrous for Canadiati timber companies -
which would see that exchange percentage narrowed
and less cash delivered to their coffers...
The fear of a Canadian-U.S, dollar standing at par ;
never materialized as a slackening demand for energy

“and a world. recession, coupled with high interest
rates, scuttled Pipeline and tar sands developments in -

Canada.

“Financially, we would have been better off if we °
would not have taken that type of a foreign cover —
program,” admits Wilson. =.

The bottom | line for long range,: perhaps zim:
prudent, commitments has been a need to stabilize its:
cash flow for major capital expenditures. Anyone

--looking at a recent MB annual report will.sée the
“company has-been on a building rampage. during the « -

past four-years; In 1977, its capital expenditures were —
$77.4 million; while in 1981 they Were $307.4 millioh: -

Otherwise, the opportunity loss in past years {it too
would have run into-the millions of dollars) was ‘the.

_price paid by MB to build. In a-buoyant economy, :

the millions lost would scarcely be noticdd.
-Now that its capital expenditure programy has. been”

put on the back burner, cash flows have dwindled to —

5246 mittion i in 1980 to $32.8 million in 1981 and MB ©
is-viewing 1982 through a red hie, the opportunity
loss of more than-$8- million looms as a surprising
miscatculation by’ a’ company that one’ would expect, us
. toperform better.
As one Vancouver ‘analyst points ‘out, thes dollar
has been sliding (with the occasional hiccup) fdr the

‘past six months. oe

| The. wigs Interstate
Comme

- of months.

‘agency has been conducting.

~ a review of Canada’s motor."

carrier.
_procedures and the Foreign

- Investment. Review Act.
asked |
Reagan, in a. diplomatic ..

Ottawa has”
note delivered a month ago,
to use-a presidential, Yeto to
prevent the new. law’s
passage:

There-ia also a plan to

<diseues the issue at a
meeting of - provincial
transport officials . in
Halifax on Sept. 4.

"The ‘prospects: of ‘this -

legislation. being adopted

caused me grave concern

forthe implications it may
- have for our trade relations
with the United States,”
sald Manitoba
sportation: Minister Sam

Uskiw,: who noted that |
- Manitoba
-ldefenceless if a contlict
_ develops ‘over trucking

isn’t. totally

rights.
He said: ‘Manitaba would
rather not invoke a law that

’ prohibits ‘its Motor Tran- _|

_ Sport Board from granting

operating authorities to
jurisdictions that. don't

grant: similar privileges to

carriers in Manitoba.

_ Uskiw said invoking the

_ law would be. “an obvious
the:

consequence of
_American initiative.” — a

“Surely, however, a
series of

terests of our nation.” -

‘In the ‘wake of the U.S. _.

moves, the Manitoba board
last- week gecrapped a
scheduled hearing on a bid
by a large U.S. trucker,
Yellow Freight Systems

Inc., to take over the —

earrying authority. of
Wisconsin-based GMW Inc.
from the international
‘border to Winnipeg.

- “IL has been: set over :

indefinitely. to give the

‘Commission has ©
not. been: granting new”
* operating authorities to
. Canadian carriers for a.
-. number
_ Manitoba government of-. :
. ficials aay the U.S, licensing’

‘pegulatory ay

Tran-

f  lock-step: |.
retaliatory measures is not .
in the long-run best in-:

- bla
"pipeline embargo, Informed Sources say:

[© French, government, which has- ordered: _Dréaser
; France, & subsidiary of. Dressér Industries Tne, of

-. for use In conatruction’of the 5 sOo-kdlometre Siberlay *

 nalural-gas pipeline,

| .. The: Reagan administration has’ prohibited U, 5.

a firma | ‘from providing. equipment: for. ‘the ‘pipeline. . ‘
' Because of the two ‘governments’ conflicting orders,
‘Dresser Industries says lt is aught. “between a rock. :

; ai 4 hard place,” .
" Well-placed officials here said Reagan is ready to

pul © France on a blacklist: If. It ehips' the -

~ equipment. That would mesn the. French subsidiary
would be barred from importing specific items and
technology from its parent firm ~ or from any other

~l ‘U.S. suppliers of the same iteme,:.: a

- One official, asking to remain anonymous, said this .

_ would prevent Dresser Industries from providing the
banned. items -to its French subsidiary, but was’
““inlikely” to prevent the U.S. firm. from doing other .
business abroad. ine .

By denying the equipment to the Ruslana, ‘Reagan
hopes. to bring pressure on Moscow ‘to persuade
Polish authorities to relax martlal- law restrictions on

workers and political dissidents... -

' John Hughes, a State Departient spokesman, sald |
that if the Dresser shipments are made from France
in defiance of the embargo, “sanctions will be en- -
forced.” But he would not specify their target.

“Obviously we regret it.and we would prefer that it ©
not happen but we are going to. take actions that- we
consider appropriate,” Hughes told: ‘reporters
‘Wednesday. 7“ N

Asked whether the administration will iake action
to enforce the sanctions, ‘Speakes. replied: "Yes, 1
would anticipate it will be taken, Yes, definitely.”. —

In Dallas, Ed Luter, a Dresser vice-president, said:
_ “We have not been itiformed of any intent on the part a
of the president.”

Dresser, which employed 57,000 people in Janvary,

had worldwide sales of $4.6 billion last ‘year. «
- The Export Administration Act of.1979 provides a
range of punitive measures for violators of
- presidential economic sanctions, Including criminal -
fines and prison terms and elvil. fines and lous of
export privileges. .
The company had contended that if Dresser France
did not ship the three compressors, worth $3 million,
it would be liable to. criminal and civil penalties in
France. :
The Soviets have ordered a total of 21 compressors '
’ from Dresser to-be used to pump the gas through the
; pipeline, In all, ‘more than’ 100 compressors will be
needed. ;
-. The dispute over the. compressors has strained US,
, relations with France and other European allies who
seek the benefits of the pipeline contracts. ..
“" The. West German government urged German ~
firms. with pipeline contracts to fulfil them. The .
British governinent has issued ‘similar orders.

‘The: action would avoid’a direct -clah with tne | ere Sn

Dallas, to ship three compressors, lo the Soviet Union a . :

» Kebab and sold at. 8 festival to raise. ‘money for, the Toga io
o museum:

Partly bocause wasn’t enough moose meat: They? bre
 aceusing dpeumbe tsGrand Chief- Max Groe-Louls,, saying |
‘he and:some. of his friends took - ‘ome of the meat, for
‘ themselves." § .

_ after an Investigation, sald people who pick up the mogge
traditionally: ke certain choice outlier themselves: "

- Hospital in Bellevue, Wash., for cataract surgery.

* three-room, aulte, with bamboo-patterned. wallpar

" officials covered part of the casts for the.room, ‘whieh will!
- §00n be “ayes .

_. said, |

_in, Henderson said the operation was needed for coaste ie

“has spent: more than’ $55,000 as. the. driving: force behind

+ though he recently lost his: ‘Job and has. a wile: ‘and:
children. “a

‘country: bands, barbecue, football game and s0apbox-
~ speaking corner ‘are scheduled at McMahon Stata. ok

| television show MASH, gays he and the rest of the cast are

_ members want to leave the series before the audience gels

eee

’ board “an opportunity to -

assess its position,” said
‘board chairman John. S.

Kinley. ‘We haven't taken a |

: formal position in respect to
"the issue. as ‘yet.

Uskiw ‘said proof of the

evenhandedness of

- Manitoba toward American

truckers’ can be been over.
the -past- two years during

‘which the board granted ali”

23 applications it. received
from ithe United | States,
while turning down eight
applications from Canadian

’. carriers. .

“A U.S. Commerce
‘Committee. official said

earlier this month ‘that the |
_ intent of the proposed

legislation is: to force

Canada- and - .Meglea to
“ease -ad trative ~

_ requirements and be more
- like the United States.”

Paul Maley, president of
Canada Motorways Ltd., a
Winnipeg-based transport
firm, said his company

. applied almost a year ago to
expand operations into 18
northern states but has been
caught in the U.S. freeze.

' He-said his firm, which

-already has U. S. authority

to operate into Minneapolis-
. St. Paul and on‘ to Seattle

_ and Buffalo, won the ap-

_ proval of the commission's

“review board, but the
certification required for

. the expansion into the 18-

_ northern states has not been that Edward received a Cin

“English literature, a D in -

| granted. *
“We don't object to U. S.
‘carriers _ applying for

authority ‘to- operate in

Canada provided.we have -
* the same opportunity in the

United States.” :

ran

NOW R

“Adult oriented:

stove {y

Prince Edward’ S grades low

the French subaldiary of aoe firm dit |.
_- ships equipment to the Soviet Union in defiance of his: -[--

campaign that has divided the 1,200. -
dents of the Huon Indian reserve near ‘Quebec Chey a
moose: was supposed to have been made into shish

-Butthe festival puicancellad and the opposition says ‘i's

‘The band. pole. iticer, who cleared the chief's néime

ee r! me , “ 7 — a : ve wy ,
> ‘The Sultan dsfiaidain abet Aus ate Selangor didn't.

4
t.
exactly have antiseptic surroundings ein ( Overlake:

The sultan’s quarters consisted of a ‘custom -detoret

designer furnfture and gold-plated fixtures in the bathroe 7 a oe
‘The sultan: paid for most of the redecorating but hospit

able to the public for a “VIP. surhang

»

British, Prime Minister Margaret Theieher “45 telse _
as if nothing happened’* after varicose, vein surgery earlier: 7
this week, says her physician. © .
- “T can't believe how completely overwhelmed I ain: with a
the way this wonian has recovered,” ”" Dr. John Nendevion, ,

“Thatcher left the elinie Monday, 11 hours after rig

purpoves. anid te reduce pal.

In hopes people wili forget their troubles, Jetf Creasey
Catgary’s, two-day antl-receasion festival this weekend even: *

oy one may

Creasey, 25, hones to riake his festival the iid 169. 7
market in North America.” ee ie

An array of..entertainment including Kick-boxing and. .
karate demonétrations, a farmers’. markei, rock‘ and

1

“Actor Satnie ‘Farr, who plays Oph. Klinger: on: the

glad they are leaving the program. While in: :Klinger’s
“hometown,” Toledo, Ohio, Farr sald the show's cast

tired of it. The Program begins its. ith season this fall on
cBS. ;
The finat series will include a two-hour movie: Fart said,
but. he's not revealing any details, a ;

+

. Grade. 2 —

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” biock fram arene any swimming Pool.

~ LONDON (AP) — Prince
Edward’s reputation as the

brains of Britain's Royal :

Family teok a beating today
when newspapers reported
‘his university qualifying
examination grades were
below average.
The exception was.a top
mark in history, which

Edward’s family has been —

making for centuries.

~The Times said his poor

showing | “may. ‘give...
some pause for thought” to

College.

been offered aiplace as an
mafidergraduate student at
- the ‘college in’ September,

~1983, on condition his grades"

this year are adequate.
But the. Brilish domestic
news agency

Edward’s- marks ¢ will not

affect ‘his placing - there.”
Buckingham Palace —

announced Tuesday .that

Edward; youngest of the ©

Queen’s four children, had
passed three advanced-
level university» entrance

examinations, but it did not

disclose his marks,
The Timés reported today

‘ economics and a D in
political science.

The. prince partially
redeemed himself with a

ENTING

45 unit ea.
. oy

drapes

and) Cambridge -

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The 18-year-old prince has

Press...
Association reported: “It is
understood the disclosure of

Signifying

- 635-4422 | 7

special merit — in a history
examination.
The. Times ‘said the

prince’s grades {place him”

on average: slightly below

the midpoint: of candidates.

who taok this year's Oxford

examinations.”

a,

board |

Edward, who completed

his final ‘term. at Gor- -

year-old brother. Prince.
‘Charles, is the’ only member

donstoun School in Scotland of the Royal Family to have
‘thié summer, had a obtained a university
reputation’ as-the: brains of « degree.

the Royal Family because .
--none of the others was.
. judged ‘by. teachers as..
* academically bright. His 43-

G. dnd withe same orcler aS Wie pack pot smi

LAST al

‘

Charles also went to
Gordonstoun, where he got
a Berade in history and ac’

In French.

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