Statt Writers- Photographers: o) Page 2 The Herald, Friday, Juli x, 1982 a Published eiary: “weekday at’ ‘m0 Katumn’ Street: oy Terrace,’ 6.€, by: Sterling Publishers. Lid. SNeinber an as, secon class ‘moalk. en oe 435-4000" Publisher; Garry Husa | ps “Editor: Se 7 "Brian Gregg Advertising Saies:" Terrace — David Hamilton —_ » Sports: ; a _ Mike Howlett —__ . Don Schaffer ‘Roceptlon-Classted Carolyn Gibson * Cireulation: Marla Taylor NOTICE OF COPYRIGHT . The + Herald retains full, complete and sole copyright _ In. any advertisement produced andor any editorial or phdtographic content published in the Heraid. ; Reproduction Is not permitted without the written : permission of the Publisher. . er Soviet warns of arms terror ORILLIA, Ont. iCP) — Nuclear arms reductions will lead: toa “balance of terror’ unless they are carried out fairly,.a.- . Soviet expert on North American affairs said Thursday at the Sist Couchiching: Conference in nearby Geneva Park. “We want, of course, to reduce our‘arms, but we are determined not to find ourselves.in the position we found ourselves (in) 1941," sald Sergi Plekhanov, referring to Germany's invasion of. Russia. Plekhanov, of the Institute of Canadian and U.S. Aifairs in Moscow, told 150 delegates at the annual think-tank session the “Soviet-Union is stronger than it was 10 or even 20 years ago, but it must be seen in the perspective of protecting itself and its allies.” : He said while the Warsaw Pact countries: have more tanks and.submarine-, ‘ground-and bomber-lauched - migsiles, NATO has mora, yanelsare warheads and troops st@tioned in Europe, tno? hen DebLA cll He said U.S. plans to employ more Pershing missiles in Europe would be “eatastrophic."’ “A Pershing missile takes, only five omsix minutes (to reach the Soviet Union) and that doesn’t leave much time to rethink the decision to attack ‘and call back the nuclear strike.” Turning to economics, .. Plekhanov said’ productivity i iS a problem in the Soviet Union because there is. full em- ~ ployment... . . “Without: tinemployment, you do. not have the cruel” economic necessity thal can compel people. to work better." Plekhanov said Soviet officials are now trying to find incentives that will work within the’ ‘Communist system. | “We do not-yet know what will be more. suitable. Do you. appeal to people's self-interest or perhaps to their concern: for the national interests?” The five-day conference, held on the shores of Lake .-- Couchiching, continues untit Sunday. It is organized by the © Couchiching- Institute on Public Affairs, a non-profit, non . partisan’ organization founded in 1931 to Provide public forums on important issues. Egypt seeks a better solution — WASHINGTON (AP) — Egypt's foreign minister is delivering a message to President Reagan that the United. States must commit itself to finding a “homeland for the _ Palestinians if it wants a lasting Middle East peace. Foreign Minister Kamal Hassan Ali, who’ planned to confer with the president today, is carrying a letter: from Egyptian President Hosni Mubarak to Reagan.. a ‘The contents of the letter were. ‘not.disclosed, . but .an . Egyptian ‘diplomatic: source -said Ali would ‘emphasize - Egypt's position that restoring peace in the Middle East involves more. than just getting Yassar Arafat and the . Palestine Liberation Organization out of West Beirut. - Palestinian Fighters, now under siege ‘by. Torael in West. : “A Palestinian homeland,-seli-determination, there has to be something," said the source, who did’ not want to. be , identified. He said redistributing the Palestinians among the Arab countries will ‘juat create a problem -for someone else.” A State Department official said Reagan’ is likely fo tell ’ Hassan that a U.S. position. in favor’ of a Palestinian . homeland is oul of the question fornow. ~ : Mubarak told a- group of ‘U. sy “congressman in - Cairo Wednesday that Egypt is willing to accep! some of the 8, 000 Beirut. ; ° However, there must-bea prior U, S guarantee to find a an permanent homeland fof The Palestinians, he said, "Reagan told a news conference” Wednesday that the ‘- question; of a Palestine homeland should be resolved in the- Palestinian autonomy negotiations as provided by the 1978 Camp David accords between Egypt and Israel. While Mubarak has: ‘preszed for the US. to deal directly with the PLO, the édministration has insisted it will do so. only after the PLO recognizes Israel’s right to exist and accepts two.UN-Security Council resolutlons. ‘Administration officials said ‘Thursday the PLO is. “early retirement, 92 Tesigned and found other jobs.on | their: ‘own, -13 took transfers ‘to.othor Du Pent installations,’ 106 found jobs with the help of the committee and 180 are still os --“whal we can do... committed to. leaving | West - Belrut and. that the chief stumbling block to resaiving the crisis has been the dit.. ficulty in finding places for them to go. - In Addition to Egypt; U:5. officials who did not want to be ‘Identified sald Syria and Jordan also have indicated a willingness to accept some of the. PLO fighters. under certain: ‘conditions. - _ "French-speaking lawyer and a ‘transfer’ from Kent. -. The prison, about 100 kilometres east of Vancouver, "fle. lafest ‘episode begin ‘Thuradiy' night: ZL ‘Daniel: Julien; ‘21, of Thompaon, ‘Man,; took a. avin ; unit’ officer. hostage at knifepoint, demanding 9 opened. Aug. -1;;,1979., Its’ ‘modern Celle. for 192 - "tS" the voveycrowding in” the” fortress-tike. B.C. - . ‘River, ? | Three months later, “convicts went on a cell- - smashing. spree, causing about $30,000 damage. No - . Feason was given for the disturbance. ~ _ ‘+ In November, 1979, 10 prisoners ‘who refused ta . comply with prisen | orders” in the wake .of the disturbance, were transferrd to other penitentiaries in Canada. . But before they went, they caused about $500 : damage to their cells, then extensively’ damaged: a bug taking them to the airport in nearby Abbotsford. Later thal month, five guards stormed a. cell to vf petnoners, grouped in units, were a dramatic contrast... ~ “Penitentiary: overlooking the banks: “of the Fraser a ~. exercise yard, huddling under tnakeshift. tents of. said the demand. -was-not met.: prisoners had held‘a throat for an. haur,: ‘refusing to i ‘ulfered ininor injuries. 208 es." 3 Oneot the prisoners: subsequently. charged three ot the guards with asgaull. causing bodily, eee but. ‘he aa : eile chest; ‘then called toa nurde and medical ‘orderly: a Crown tater stayed. ‘ther charges. ° a "More thant 100 of the 164 irunates at the pcison in . June, 1981, staged a ‘two-hour riol, damaging cells and several-yooms, |” aa : During the rioting, one pithorier stabbed two other ; inmates, and waa in turn wounded by guards... .. Following the riot,. the 107 prisoners who wrecked thelr cells spent several days ¢amped in the prison |. _ blankets and ‘plastic supplied by prison officials. .— Kirk McLaren Melivride, 32, a convicted rapist, . - held two guards hostage at knifepoint for 11 hours in August, 1981, before surrendering. =. ; Mellvride had demanded to see two other prisoners . whom he said threatened him, but Prison officials. _ A month Tater, a prisoner armed with a sharpened. . dinner knife stabbed three guards. Two other: puairds - were injured before the prisoner was restrained. remaining 5.5 per cent for wage increases, he said. - boom town. : ee ~ Stock market slump. is. worst. Preliminary figures indicate the Toronto: stock market is m the worst slump in its history, reflecting nervous investor... reaction to the deepening economic recession and: high . interest rates, The Toronto Stock Exchange said Thursday the com posite index — the broadest measure of price activity — fell 27.73 per cent for-the first seven months of. this year, sur- ~ passing the previous record of 26.48 per cent for the same— ‘period in 1940. Exchange statistics go' back to 1934. -So far this year, the market has lost more than $34 billion, dragging down the value of all siocks: listed on the exchange | — , to just over $91 billion. in the last year, the market has lost . almost $56 billion, its third ‘worst 12-month loss in records back io 1934, . ’ Analysts ‘say the Toronto market, “which accounts for. more than half of all stocks traded in Canada, has been battered.by investor malaise over high interest.-rates, dwindling - corporale profits and ‘General economic stagnation. -~ Investors are ‘also concerned that -huge government _ deficits in both the U.S."and Canada will keep interest rates "high, prompling major corporate. bankrupteies. . ~ In another development, International Harvester’s truck assembly plant in Chatham, Ont., could close by October, 1983, taking with it 1,000 jobs, as part of a $1-billien cor- _ porate cost-cutting campaign. ‘International. Harvester Co.- of Chicago announced Thursday it plans to consolidate its North American truck. vassembly from three operations. into two. : eis eee, ee Foe eT te | natenestiy dye te ~ Negotiation lir fim OTTAWA (CP) — RBS ve “ Bey wi ebheparl tile Rrvey a fringe benefits under the two-year control ‘program but labor and NDP: spokesmen say it's not enough. A povernment amendment to the wage-restraint bill allows unions to bargain collectively but the total increased cost of settlements must be kept to six and five per cent . during. the next“ two years, Treasury, Board President Donald Johnston said Thursday; ‘The amendment is essentially the same as a ‘Progressive . Conservalive motion rejected this week by the Commons miscellaneous . estimates committee, which instead ap- proved a move to Jet the unions 5 bargain on non-monetary issues such as safety. The original’ bill. removed the ‘right to collective bargaining 2 as well as lo strike for 500,000 federal workers. | ‘The unions may now use half a per cent of the six- -per-cent- increase to pay_for a maternity leave provision and use the . ' But spokesmen for the Public Service Alliance of Canada -and-the Canadian -Labor Congress said the amendment is irrelevant because wages are still restricted... Co “We're still limited to six and five,” said Daryl Bean, . vice-president of the 175,00-member alliance. "And New, Democrat House Leader lan Deans said the amendment merely . lransfers . ‘responsibility for im- plementing the restraint program to the unions. - But Tory MP Flora MacDonald'said the move goes a long vay toward quelling Tory opposition | to the legislation. Shawinigan is not. thankful - SHAWINIGAN, Que. (CP). — Today is ong Friday for which people here are not particularly thankful. With 3,871 people on welfare and an unemployment rale of about 20 per cent, this red-brick, industrial city of 23,000, located. 100° kilometres “noflheast. of Montreal, is already hurting. And today marks the. ‘chosing: of the Dupont of Canada cellophane plant where 354 worked last spring. The Gulf Oil inorganic chemicals plant with 350 workers alco starts shut- down procedures and'a small CLL hydrocarbons plant which depends on the Gulf plant for acetylene Appears 7 doomed 'as.well,” If all these plants close, another’ a0 to 400 local jobs will be lost among suppliers and sub-contractors... “Michel Natteau, publisher ofthe local weekly, I'Hebdo du. . Salnt Maurice, sald; “We knew it. ‘would-be coming months ago but ‘that doesn’t make: things any- better.” Natieau remembers Shawinigan af the re early: 1960’ ‘a as a “We had it made — — good money for- izood work and that brought alt sorts of other businesses.” °° " Pierre Larochelle, works manager of Du Pont, ‘sald the” " company announced in March that the plant was.closing.. because..the cellophane market has shrunk and the plant : has faced losses for several years.” The ‘company.established a - jolnt iabor: “nisneigement : placement committee. A‘total of 139 staff members took looking. ; The company is keeping its “oftices open alter the. plant ; _ closes as long as any of Its former employees need access lo... 4 seuretary of a duplicating machine (o help in the search a The government. has agreed to give _ public service unions a limited right to negotiate wage and - In addition to Chatham, Harvester manufactures trucks In Fort Wayne, Ind., and. Springfield,Ohio . Bill Colwell, Harvester’s director of public. relations at the company's Chicago headquarters, said no decision on (he fate of the Chatham plant has yet beet made. “The options are being kept open,” he sald. “Opr decision will_be based entirely on economic grounds and will be made’ after a study of each plant's maximum capacity.” Harvester is also negotiating to sell off its construction _ equipment, business, including its plant in Candiac, Que. . In other business news Thursday:. mo. : ‘— The trend-setting Bank of Canada rate dipped a fraction to 15.5 fram 15.6 per cent, but not enough to ease the cost of mortgage, business or consumer_loans,..The slight drop ends.a two-week slide in the central bank rate which _ saw'the prime lending rate offered’ by chartered banks: down a full point to. the current 17.25 per cent. ° | © BeIRUT CAP) ~'Three'year-ld Ahmed Baitim, bis face And part of his chest Covered with severe burns, was tied to “"g hospital bed with soft bandages. As Dr, Amal Shamma » eaned over him to point out: the ‘injurles caused by a bur. - “ning phosphorus & shell, the youngster’ ¢ heart’ atopped.. a The doctor. bent: ayer and ‘pul her’ stethoscope. to the The slim, intense pedlstrietan hegan pushing hard on the “ehlid's chést while thie orderly breathed into his mouth. The | “hurae ran for heart needles and an electro-shock machine, - ~ Despite 20 minutes of effort Thuraday. afternoon, the boy . eduld net be revived. Dr. Shamma, 34, walked away while another ‘doctor and lwo nurses continued trying. Sweating and extiausted, Bh leaned against a wall. = . ’ “Tt was respiratory damage,” she sald, “They inhale the . phosphorus.’ " The boy, declared dead ‘an hour ‘ater; was among MC, ; members of a single family burned by a phosphorus shell In - Wednesday night's Israeli shelling of West Beirut. His twin ’ five-day-old sisters were dead on arrival at Berbir Hospital, His aunt, grandmother and grandfather. and Fo four: cousins - were severely burned. - His mother, another aunt and two other children sutlered " less-severe but. serious burns. — “They were living together in ihe basement of one of the * buildings in a southern suburb, Bourj el: Barajneh,"’ said ‘Dr. Shamma. “They were hit by a phosphorus shell. . The wounded were trapped in the cellar for two hours - before they could be pulled out, she said. “Nobody could get to them because of the shelling, That's why: IT think the ~ babies died.” Phosphorus ignites on contact with the air and continues _to burn. as long as gets air. Al the hospital morgue, Dr. Shamma wheeled out a- drawer containing what looked like a snarled bedsheet. Unwrapping- it, she disclosed the tiny bodies of the’ twin girls, covered with burns, ~"They brought them in,” she said. “They were still smouldering. We had to leave them in a pail. of water overnight." -.. ‘Dr, Shamma said the oldest of the nine children hit by the . phosphorus. was seven, . - She said she could think ‘of no possible reason why the Israelis would use phosphorus shells “in civilian areas, where they ean hurt people.” -.” “I mean, If they were on the desert and. were ‘attacking ; ““Lanks jf they wanted to say they were only attacking metal, . _fine, But in a civilian area where it can only hurt People? — Canada’s dollar continued its see-saw ride on forgign 1's not going. to burn stone." exchange markets, bouncing back tip one-third of a cent in. very light trading to close al 79.44 cents U.S. -It was a dif- - ferent story with on the Toronto Stock Exchange where the TSE 300 composte index fell $.63 points to 1,412.41 onfears of continued high interest rates. — Stelco Inc., Canada’s: largest steelmaker, said | its profit. for the first half of 1982 was $13.2 million, down from the $114.7 million in the same period last year. After dividend. , ‘payments on preferred shares, the company had a loss per common share ol 40 cents compared with a profit of $3. 731 in _the first half of 1981. APPR Uae TORO ne sie Mie Col tue ee “adits Bee its Criti ct satire, O44 ant ovale Wee hast bagistvnia « iT, id no Charg es rejected OTTAWA (CP) — A parliamentary committee has ‘rejected charges that the chartered banks’™ record $17- 7 billion profits last year were excessive, 7 ‘Ina report tabled today, Liberals and Conservatives say the profits were temporary and: ‘‘not out of line.” In 1981, it ' says, banks made 67 cents for every $100.of * apdelet Py ry 1¥80, but.about equal with: the 1 Sly Ae deeneM | SRD Says tae yelurn ‘on ‘ivostment: Igeo average when compared to other industries. The report! was written over the objections of the two New “- Democrat members of the committee who withdrew two it ‘could allow lower: -paid workers above-celling i increases . if others within their bargaining group accep! lower raises, she said. - . The bill must still be approved ‘by the Commons, which - begins final debate on the bill teday. - _ Meanvhile, the 200-member Federation of Canadian ’ Municipalities unofficially endorsed Ottawa's anti-inflation program and promised to pressure the provinces “to get on the same wagon.’* : Federation President Jéan Pelletier said he believes. municipalities will spare no effort.to aid the goal of ‘six-per- cent inflation in 1989 and five per cent in 1984. ~ But official endorsement will have to await the group's, ‘board meeting. next month, the Quebec City mayor said | after more than 15 municipal representalives from across ‘Canada met with Prime Minister Trudeau and Finance ‘Minister Allan MacEachen. And in a major test of price restraints, cabinet, elected a - |f-per-cent increase. in transportation’ tolls charged by ~ TransCanada Pipelines Ltd. to move natural gas, after the. National. Energy Board approved a toll increase .Wed- nesday (hal would have added about 14 cents to the cost of a thousand cubic feet.of gas: But. Energy Minister Mare Lalonde left. open “the. possibility gas prices” could increase as early as Sept. t. And the program came under renewed Fire in the Com- mons earlier, as’ New Democrat Leader. Ed Broadbent . _. accused the Liberats of planning to hold down wages while allowing higher price increases. | for a job. And the plant itself has been sold to the eal for a lo be used as a kind of mini-indu trial Dark, | The city’s industrial commissioner, Jean Drouin, gays. he has. already found two small companies interested | “iin locking at th possibility of moving in. : Gulf announced March 30 that it was closing Its plant ty Sept. 30if no buyer for-it could be found, Spokesman Joseph Cotireau explained the plant ia more than 80 years old, was not as profitable as Gulf would have liked and has been for | sale since 1977, . . oon : A ‘Coiisortium of locat businesmen came. e forward and’. started dickering. Among other things, they sald they - needed more money.so the federal government came through with $3 million (Justice Minister Jean Chretien ‘is ~ the local MP), the provincial government ‘came: ‘thraiigh’ ¥ with $1 million (Quebec's Energy Minister Yves Duhalme iss: the local member of the: natifinal assembly) and the. union _" made concessions. “Nevertheless, the consortium dceided to. bow ‘outs Col” treau says.Gulf has been. approached by a new potential "buyer and talks are going’ on. --“But for the sake of our employees, we can't allow the « situation to fluctuate any: further éo the: shutdown procedure,” a is starting. " re Danie] Patardy; a ‘Confedetation of National Trade Unions adviser, says’ most Gulf workers do not belleve the : plant Will be saved: The Gull closing. aifects CL. Bernard. Leclalr;. a: cu spokesman, said: We’ re studying all the possibilities: of: ‘Thal plant: Is cdiinested: to the Gulf plant by an un- derground pipeline: which supplies us with the acetylene: we, need to make: commercial & and industrial. solvents. weeks ago, condemning the group's conclusions as. a “whitewash” that ignored the banks’ role in manipulating. the economy. : NDP finance critic ‘Nelson Riis said ‘the. Liberal aud Conservative majority on the committee ignored the.role of high interest rate policies. and the failing economy ‘in ‘determining bank profits. The report says the record profits — a 38 per cent in- + erease over 1980 — “were not earned to the detriment of Canadian consumers or-businesses"’ and are explained by : three factors. ' First, total bank assets increased by 27 per cent. Second, profits on international operations rose 46 per cent,.com- pared to 92 per cent for the banks’ domestic operations. And third, the fast jump In the trend-setting Bank of © Canada rate in the first: few Tonths of 1981 produced: a sharp but temporary spurt in the gap between the interest ‘rate charged on [oans and the rate paid on deposits. ‘Mayor optimistic _ OTTAWA {CP) — The mayor of a John’s, Nfld., ‘emerged. from a rare private meeting with Primé Minister ‘Trudeau ‘Acday saying Trudeau wants to meet with - - Newfoundland Premier: ‘Brian Peekford to « discuss the off- a ~ shore resoiirce issue. ‘. “I'm very optimistic that something will come of this and . _ come of it soon,” said Mayor John Murphy,’ who told’ — ‘Teporters he was acting as, a personal messenger for Peck- ‘ford: - Trudeau said he would meet with Peckford, bui only : after . -a meeting: between federal Energy Minister-Marc Lalonde and his. Newfoundland counterpart William Marshall, _ Murphy said. +» Asked if cither side has indicated a change in positicn, the "mayor quoted Lalonde as saying in a meeting with Thur- ‘sday ‘night: “AS far‘as I’m concerned there is room for” compromise." Murphy said Peckford had asked him to invite the prime ~ minister to a meeting on the dispute, which the mayor aaid “is holding up millions of dollars worth: of development i in the province. : Oltawa’ and Newfoundland, both laying. claim to an oy estimated 10 billion'barrels of crude cll off the East Coast, are heading fora ‘baltle in the Supreme Court of Canada te to ’ decide resource ownership. : : etters Welcome ‘The Herald: welcomes lis readers” com-. ments. All letters +o the editor of. ‘general : public. interest. will be printed, :.They- “should be submiffed 48 hours in: advance — ~ of desired: publication date.'. We. do, | however, retain 'the right to refuse to. "pring letters ori grounds of possible. libel. . _[- or bad taste. We. (may. also edit letters fer. . | style. ‘and length: All letters to be con. _ '. sidered for publication must-be signed. It: Ag impossible to print a letter submitted: + : date. _ - ———— rT