OttawaAP+Liberal MPs
met privately Wednesday to
plot what one described as ‘

_ “guerrilla warfare tactics”

‘ separatist government in
bee.

against Rene Levesque's

The subject was .one of
several raised during the
first of two days of

’ discussions by government

MPs and senators as they
prepare for the fall session
of Parliament. .

Part Whip Gus Mac-
Farlane Hamilton Mountain
said following the wEd-
nesday talks tha Liberals
have to be prepared to use
the same type of flexible
tactics as guerrillas .in

' anticpated political skir-

mishes against the

Levesque government.

read-perha

Today, the Liberals will

concentrate.on the country’s .

economic situation and my
may gey a look at plans
heing prepared by the
finance .department for a'

. new winter employment

program to undercut rising
jobless levels. .
Sources said cabinet has
spent a number of sessions
grappling with the unem-
ployment question, and
plans. for the government
question, and plans for the
government's next assault
on the prolbem) will likely be
outlined in the policy-pre-
viewing ne oie ue be
e Queen-
when Par
Oct 18. a
Prime Minister Trudeau

_spent the morning with. hs _

ent resumes —

MPs prior to and overnight
visit to Washington where
he is meeting with President
Carter and witnessing the
signing of a new Panama

canal agreement,

As: be left the caucus
meeting, he walked back to
this. office with Trade
Minister Jean Chretien,
adding fire to speculation he
may appoint the 43-year-old
Shawinigan, Que., native as
finance minister in a cabinet
shuffle later this month,

Doanld Macdonald an-
nounced Tuesday that he'll
quit the finance post within
10 days and Liberal
strategists agree. that
Cretien however, is also

touted as a. potentical
leader of the Liberal party
in Quebec and sources say

Trudeau won’t give hime the
finance job if he indicates
he'll abandon the post for
Quebec politics during the
next six months.

Party insiders insit that
Trudeau will .amke only
minor . alterations in the
upcoming cabinet shuffle,
filling .the finance post,
promoting Jace Horner-he's
been .minister without
portfolio. since he left the
Progessice. Conservatives

last April- and perhaps
adding anew face or two.

The Liberals. complete
their fail . planning session
today with a picnic at
Trudeau’s
residence at Harrington
Lake, north of Ottawa in the
Gatineau Hills.

‘the’“herald

Serving Terrace, Kitimat, the Hazeltons, Stewart and the Nass

‘\

\

VOLUME 71 NO. 89

Price: 20 cents

_ THURSDAY, SEPTEMBER 8, 1977

v,

MORE TO LIFE THAN PENSION’

Fifth Conservat

OTTAWA (CP)- Sean
.O’Sullivan quit his seat aa
Progressive Conservative
MP for Hamilton-
Wentworth on Wednesday to
begin studies for the Roman
Catholic priesthood.

He would have been.
eligible for a government
pension of about $5,000 a
year for life had he stayed
on for another year. -

“But there is more to life

. than a pension.”

1

The 25 year

would be .sorry..if. his
s seen as another knock
against Conservative
Leader Joe Clark.
O'Sullivan is the fifth
Conservative MP to leave
party ranks in the Commons

in the last several months.

Jack Horner left . to
become a Liberal cabinet
minister, Jackques Lavoie
Hochelaga became a
government back-bencher,
John Reynolds left for
private business and Gordon
Fairweather Fundy Royal
took on thenew post as
federal . human rights
commissioner.

. old O'Sullivan
said. in -an.-interview he

“I would regret it if an
misinterpretation was
placed. on my leaving,”
O'Sullivan said he had
decided ‘‘to serve people in
a new way and different
capacity.” .

He told Clark: .

‘“Since assuming the
Jeadership, you have
demonstrated remarkable
personal and political
qualities that make the
loyalty owed to you by party

members much more than a.

duty; it is a-prteilege to be

counted among your sup-

porters. -
Clark replied in a letter,

‘which said:

“While I will miss your
active help in Parliament
and the party, I understand
and admire your decision
and wish you a life of service
and satisfaction.”

O'Sullivan said in an in-
terview he wanted to leave
‘as quiety and as quickly as
I can.” His resignation is
effective at midnight next
Tuesday night.

He was regarded as an
extreme right winger in
Ottawa but he said “T. don’t

know how I got boxed in like
that. I consider myself as
an extreme moderate.”
O'Sullivan was a member
of the so-called Chateau
cabinet, a group of Con-

. bervative MPs who held the

view that former leader
Robert Stanfield was taking
the . party away from
traditional. Conservatism
and into Liberal policies.
He. was first elected to
Parliament in the general
election of 1972. He was then

“Mrthe youngest person ever

elected. to the. Commons. .

Despite a Liberal upsurge
in the Hamilton area in 1974,
O'Sullivan easily retained
his seat. - ;

_ He made no great splash
as an MP, preferring to look
after the needs of his con-
stituents. He did manage to
get a private member’s bill
passed in 1975 making the
beaver one of three national
along with the flag and the
coat of arms.

. Private member’s bills
rarely are passed by
Parliament. But thousands
of Canadians, encouraged
by a CBC public affairs

program and .by
O'Sullivan’s own campaign,
wrote the government in-
sisting that the bill be
passed.

O'Sullivan was only 12
years old when ame

‘involved in Conservative

ties. He met John
Diefenbaker, then prime
minister, in 1968 at a

‘political rally. In 196 when

there was a demand for
Diefenbaker to step down as

leader, O'Sullivan wrote.

.-)
Dietenbaker- -him ‘to
stay on and fight.

. Later. O'Sullivan worked
in Diefenbaker’s 1968
campaign in Prince Albert
and became his special
assistant, then his executive
assistant in the.early 1970s.

He. was asked by .‘the
Hamilton-Wentworth. riding
to stand as its candidate in
1972. . Although the . Con-
servatives finished third in
the . previous general
election, O'Sullivan carried
the ridingh handily.

Ofhisdecision to enter the:
priesthood, he said “I felt I
had to try it.”

| Bennett off to sell
Europeans on province

VICTOIA CP-An 11-man
British Colurhbia trade and
finance mission to Europe

‘Body found

The body of a Terrace
woman was found. at Lost
Lake, about four miles north
‘of Terrace on Kalum Lake
Road Tuesday evening.

Mrs, Georgette Skoglund
“was reported to have
drowned accidetally about
6:15 p.m.

No Further details have
been released. by Terrace
RCMP whe will be. holding
an inquiry into the incident.

WASHINGTON  (CP)-
Canada’s Prime Minister
Trudeau joined represen-
tatives of 26 other Western
Hemisphere countries
Wednesday night.to witness
the ceremonial signing of a
new Panama canal treaty.

Seated around an oval

table in the flag-beddecked
Pan’. American Union
building with other leaders
from .North and South
America, .the prime

minister looked on as U.S,
and

President Carter

will pave -the Way for
greater participation by the
private.. secotr in the
economic development of
the province, er Bill
Bennett said Wednesday.

The premeir leaves
Thursday on an 19-day, five-
‘country tour of Europe
accompanied by Fianace
Minister. Evan Wolfe,
Economic Development
Minister Don Phillips and
assorted advisers.

“We expect to accomplish
a lot,” Bennett told a news
conference, particularly “in

making the business-
community and the
European Economic

Panamanian .leader Gen,
Omar Torrijos Herrera
formally signed the
agreement.

Under it, the U.S. will
hand back control of the 10
mile wide Canal Zone to
Panama by the year 2000.
The U.S. has held power
over the zone since 1903.

Later, Trudeau and the
other leaders went to the
White. House where th
attended a state dinner wi
Carter.

Community aware of the
tremendous. advantages

that are available in.B. C.."

“we do not have in mind
an immediate signing. or
agreement,” has said..
“What .we are doing is

preparing the way for.

private sector companies,
both in the EEC and in B. C.,
to conélude agreements in
the future.” .

The premier said he want
to provide assurances of the
stability of the political and
economic climate in the

province.

Bennett said he is. con-
there is confidence in the
country “and we want to

assure them that not only is
Canada stable, but BC. as
well and we’re prepar
discuss with them if they
have. concerns about the
possibility of Quebec
leaving Confederation.”

“Tt amy be a Canda that
as I say, operates more
efficiently than the struc-
ture we have now,’’ he said.

‘We've all called fer

‘greater decentralization or

improvement in the way
government relate and inthe
division of powers, and that
would be good for all of
Canada.’’

__ Quebec by Ottawa

ive quits ©

summer ;

Monday, begin their reading. An overall increase of 20

percent is expected over last year’s enrolment, said

Loptgon. an ‘ .

NO MACKENZIE DIVERSION
Pipe agreement reached

WASHINGTON (AP)-
President Carter is ready to
recommend to the United
States Congress a pipeline
route across Canada for
transporting Alaska natural
gas to the lower 48 states,
rejecting a proposal for an
“all-American route,'’ U.S.
congressional and industry
sources said today,

Carter will announce his
decision Thursday after
meeting here with Prime
Minister Trudeau, the

' gources said.
The $10 billion pipeline

would carry natural gas
from Prudhoe Bay to
Fairbanks, Alaska, then cut

to - across Canada. One branch

would carry the gas to the
U.S. Pacific Northwest,
another to the upper Mid-
west, -

U.S. and Canadian
negotiators announced a
tentative decision in Ottawa

a pipeline. U.S, Energy
Secretary James
Schlesinger has said the
Carter administration
prefers the Canadian route
ifit can be shown to be more
economical to U.S, .con-
sumers.

The expected decision is a
victory for the Northwest

Pipeline Corp., the principal.
sponsor of the Canadian
route. - ‘

A taxas firm, El] Paso
Gas, has proposed the rival
‘all-American plan.’’
Under this. scheme, gas
would be moved along a new
gas pipeline paralleling the
existing trans-Alaska oil
pipeline, then liquified in
southern Alaska and
shipped by tankers to the
U.S. West Coast.

An aide to Senator Ted
Stevens Rep. Alaska, a key
backer of the all-American

route said there still has —

been no formal word from
the White House on Carter's
decision. ‘We are still
hopeful,’”* the aide said.

However, other
congressional sources said
the . administration has
decided against the all-
Alaskan route.

A spokesman for Nor-
thwest Pipeline Corp. said
the firm, which was
predicting last week that it
would get the  ad-
ministration’s approval
during Trudeau’s visit. to
Washington this week, said
it would be a great surprise
if Carter announced any
other route. i

HANDING OVER CONTROL

The signing ceremony
climaxed what may have
been the biggest diplomatic
extravaganza in
Washington -. a three-day
affair. of talks and social
activities attended . by
Canadian . Prime ter
Trudeau and leaders of
other Western Hemisphere
countries.

Although the treaty caps
13 years of negotiations
inspired by. violence and the
threat of violence along the
canal that links the Atlantic

and = Pacific oceans,
celebrations. over the pact
may be premature,

The original canal treaty
of 1903, which the new
document would replace,
“has become-an obstacle to
better. relations. with Latin
America,” president Carter

said.

He added that. the treaty
serves the best interests of
both the U.S. and Panama
and that it “forms a new
partnership to Insure that
this vital waterway will

continue tobe well operated,
safe and open to shipping of
all nations now and in the
future.’”

The canal treaty has won
much more acclaim In Latin

than it has in the U.S.
Senate, which might nullify
the festivities by failing to
ratify. the treaty by a
required two-thirds

majority.

Officials here believe
Senate rejection of the
treaty would spark guerrilla
warfare and mob violence in

the Canal Zone, which cuts a
swath across the middle of
Panama,

However, Mexico
remained opposed to the
second part of the
agreement involving
potential U.S. military ih-
tervention to protect the 63
year old canal. The
Mexican government
regards this as an in-
fringement of Panamanian
sovereighnty.

Actually, two separate
agreements are involved in

Under a 1976 law dealing
with the pipeline, Congress
has 60 days on the
president’s recom-
mendation, Hearings
already have
scheduled by the Senate
energy committee on the
decision” for later in the
month,

. When completed in 1982 or
1983, the pipeline could
carry up to 2.2 billlon cubic
feet of natural gas a day, or
four percent of currcent
U.S. consumption.

The New York Times
reported today that last
week's U.S.-Canadian
agreement was reached
after the Canadians drop
a demand that the pipeline
be diverted toward gas
reserves at the Mackenzie
Delta.

In return for dropping that
demand, which the United
States said would have cost
$540 million, U.S. interests
agreed to pay. part of the
cost of delivering gas from
the Mackenzie Delta if the
Canadians eventually
develop those reserves, The
Times — said.

In a. dispatch from
Washington quoting White
House and industry sources,

the treaty, although they are
viewed as indivisible. One
calls for phasing out U.S,
control over the canal by the
year 2000, when Panama
would assume full
operational authority.
Under the second accord,
the U.S. reserves the per-
manent right to intervene
militarily against any threat
to the canal.

As part of the treaty
festivities, Carler has been
meeting privately with the
government heads who have

been |

the newspaper says the
pipeline will cost $10 billion
to build and will be com-
pleted in 1982 or 1983. At
that time, the pipeline might
carry up to 2.2 billion cubic
feet of natural gas a day, or
four per cent of present U.S.
consumption.

Prime Minister Trudeau
is’ to meet Carter in
Washington Thursday, and
Carter plans to announce his. .
support for the pipeline
following the meeting, The .
Times. says.

Selection of the pipeline
route would be a victory for
the Northwest Pipeline
Corp., which proposed it.

Quoting sources, The
Times says tentative U.S.-
Canadian agreement on the
pipeline was reached after
dropped a demand that the
pipeline be diverted toward
gas reserves at the
Mackenzie Delta in Canada. —

Inreturn for dropping that _
demand, which the.
Americans said would have’
cost $540 million, U.S. in-
terests agreed ta pay part of —
the cost of delivering gas
from the Mackenzie Delta if
the Canadians eventually
develop those reserves, The
Times says,

Trudeau joins crowd to sign Panama Canal treaty

gathered for the occasion.
His first visitor was
Torrijos.

In meeting after meeting,
Carter has pursued such
favorite topics as human
rights, arms spending
restraint and an end to
nuclear proliferation.

Subjected to some
domestic criticism for
“meeting with dictators,’
Carter expressed . con-
fidence that frank ex-
changes about problem
areas is healthy,