‘Dome e Patroleum Lid: will Teport tt e ‘bigest ‘annua |

by a private-sector Canadian corporation, the’ resull of.
nearly $1 billfon in writedown the il company is taking on +:

the vale.of its assets; :

The writedowns; representing. about 10 per catit ‘of the’
company’s value, will relate mainly to imining and ship-
building |: Interests and frontier exploration activities as well
energy properties; ;

“figure includes: $98 million ‘in writedowns’ connected with

a5 ‘a losg on | the sale last year af its U.S;
Dome said Wednesday, °°)...

The. company said the changes involved adjustments to’

the ‘Palance-sheet ‘values for the assets and shouldn't hurt
the c

WASHINGTON (Reuter) — The Soviet Union - has

deployed TU-16 bombers at the-former U.S. base al Cam ,

Ranh Bay.in Vietnam as patt of a buildup which also in-
cludes nuclear attack-<nd cruise missile submarines, US.
Defence officials say. ,

The: increase in Soviet forces in Vietnam is augmented by
new-: ‘deployments ‘throughout the’ Pacific, making the
probable outcome of any U.S.-Soviet war there, in the’ words
of one senlor-naval officer, “too close to-call.’”

Admiral William Crowe, U.S. commander fn the: Pacific,
told Corigress recently the normal. Soviet deployment at
Cam Ranh Bay used to be a'few long-range TU-95 recon:
nalasance and anti-submarine aircraft. coe ;

' He ‘said the. ‘addition of about nine TU-16 Badgers, which .
are ‘intermediate-range bombers, péses.a new threat by
giving: ‘Moscow’ the ability to close vital sea lanes in the
region. oo
Reagan adintaltration officiats fave expressed. concern
over the reported increase in the Soviet presence in in-
terviews as well.as in congressional testimony, . -

“exes. the Past. 15 years, the Soviets have followed a

4 on ad

. Warnings

VANCOUVER (CP) — Ombudsman Karl Friedmann
maintains he was given no clear warning by the Altorney
General sg Ministry that a criminal investigation was under
way: ‘into allegations of improper log scaling. -

edmann was commenting Wednesday on an ac-
| cusation by Attorney General Brian Smith that the. om-
budaman ignored his warning that he should keep quict
about ‘the allegations until the investigation was completed.

In. a letter to the editor published today in the Vancouver
Sun ‘and Vancouver | Province, Smith takes. issue with
Friedmann’s earlier claims that he was told only that there °
was: a possibility the RCMP might be involved: And he
promises a formal, public response to the allegations from
the’ overament once the investigation is complete. —

-Informed of the letter's content, Friedmann stuck to his
eartier position that he had acted correctly and had not’
been’ ‘fully informed by the Attorney General's Ministry of
what was going’ on.

Cause of the row was Friedmann tabting a report to the
legislature Feb. 16 in which he alleged, that because of
: errant scaling (measuring) by Forests Ministry emplgvees,.
the government and six private contractors tailed ¢ to collect.
“millions of dollars from B.C, Forest Products Ltd. ,
The report estimated the government lost $1.3 million
over a three-year period and the contractors lost al least

+, 5 million,

pany’ 8 talks on debt rescheduling since they. don't ,

Soviets deploy bombers _

"Friedmann has defended bis action: in rans

" Bome owea’ rt 2 billion i iong-erm debt to Conan and
foreign creditors and is, negotiating to pay the loans over.
. longer terms. The: company: ‘had - hoped ‘to: have ” van,

agreement in principle. by. the end of January.”

Although the precise. ‘amounts’ ‘have not yet been deter- :
‘mined, Dome. estimated. thé: ciimulative effect of “the .

“writedowns would, be ‘about $980 ‘million ‘after, taxes. Th

‘Pome’ ‘3 uU &. properties. reported: Ap. the, second quarter | of
Dime sald it expects to Fepart its a reaulls this: i sing.

deliberate plan to iyecome ready for a war, in Asia, ” James ©

. Kelly, deputy: assistant defence secretary, told Congress.

SIGNED TREATY ;
"He said much of the buildup had come since the signing of

. the Soviet-Vietnamese Friendship Treaty. im 1978,-
” Kelly, whose responsibility is East Asia and the Pacific, we
_ said the balance of power in the region remains in favor of

the United States, but “I believe it is. a very close balance,”’
Crowe, in his testimony to Congress, said that in'any”
given day the Soviet navy has up to 20 surface ships and up. .

to six nuclear attack or cruise missile submarines in Cam . oa

Ranh Bay, a major base built by. the United States during ,

" the Vietnam war.

_ ‘The waterwaysin the reglon are vital to the US. Navy for
“deploying ships. from Far Eastern waters to the Indian |

Ocean and Persian Gulf and to Japan, for. bringing oil from or

the Middle East.

Reagan administration officials and: other . Defence.
‘sources also said the Soviet: buildup at Cam Ranh Bay -:
should be.viewed as part of the larger Soviet ulldup inking
place: throughout Agi

not given? =

report by quoting a letter to him from the depuly attorney”
general. :

He quoted the letter | aS ‘saying the RCMP had been “asked:
to examine the matter to determine whether any criminal:
conduct might be present.”

. Friedmann said that the letter was vague and that “there
wagno allegation of criminal conduct specified .. . there did
not even appear to be a criminal investigation, only dn .

‘examination’ that might or might not, lead to a criminal
investigation.”

Says Smith in his letter: Tt is not for an ombudsman or.
any other official to place himself above a criminal in-
vestigation or-to publish and discuss matters publicly. that

involve conduct being investigated by the:police.”
Replying in an interview Wednesday, Friedmann said the _
words “examination” and “investigation” had been used...
interchangeably in the deputy attoyney-general’s letter -

‘although they have two different legal meanings.
- “The letter led me to believe the RCMP. had only been

_Apked to examine, apd, ft, Was not énough,:; he said.

“That did not happen here,” Friedmann said. ‘1 was not

told anything. It was a. new process without any com- a

munication . =

‘Soviets develop cruise too.

WASHINGTON (AP) — The Soviets are developing two

new ornise missiles, one almost combat ready and the other. -

being tested for possible submarine basing off U. S, coasts,
the chief of naval intelligence says.

An. American laser weapon, however, capable of
destroying: incoming missiles with a powerful beam of light,

could be ready for testing by the late 1960s, presidential -

science adviser.George Keyworth said Wednesday.
The Soviet SS-NX-21 cruise missile, nuclear tipped and
launched: from submarine torpedo tubes 1,900 nautical

miles from their target, could be deployed "'as early as this |

year," "Rear Admiral John Butts, the U.S. navy’s in-
telligence chief, told the House of Representatives armed
services committee.

A second land-attack,. cruise missile, larger and with
greater range, has reached the testing stage and is ex-

pected to be deployed aboard a new and bigger class of -

submarine “in mid-decade,” Butts said. He did not give the
name of the weapon or other details.
BEING TESTED :
the larger cruise missile now being tested “ikely is
intended to cover targets such as major industrial centres,
key Jnilitary- facilities ‘and vital command, control and
conimunigations : ‘gites in the United States,” Butts sald.
He said basing the missiles aboard submarines near the
U.S; coast could be the promised Soviet answer to the 1983
deployment of U.S. Pershing 2 missiles in Western Europe.
He said-the immediate Soviet response to that basing has
been the: appearance closer to.U.S. shores recently of Deita-
clasé submarines armed with SS-N14 ballistic missiles,
The Deltas and giant Soviet Typhoon submarines are both

designed to fire at the United States from the relative safety
of home waters. Navy experts say U.S, killer submarines
can more easily find and destroy the Deltas when they dre
close tc American shores, but such placement would cut

short the warning time if missiles were Jaunched.

TO BE ARMED

. By 1986 of sooner, Butts said, the Deltas also ‘probably -
will be armed with a'new SS-NX-23 ballistic missile.

Powered by jet engines, cruise missiles fly at high sub-
sonic or supersonic speeds. Ballistic missiles, powered by
rockets, travel many times faster than sound and reach -
their targets more quickly. :

Butts said in 1983 the Soviets began to produce two new -
classes of attack submarines, the Mike and the Sierra,
designed mainly to attack. surface vessels and enemy
submarines. Both the United States and the Soviet Union,
however, plan to arm them with cruise’ missiles, -:

On another subject, Butts said Libya has obtained a fleet
of small, remately controlled boats that could be packed
with explosives. and sent against. targets such as U.S.
warships. He satd the short-range, high-speed craft have.
“potential for use in situations like we face in Lebanon.”
: Meanwhile, Keyworth sald some scientists, are no longer
as skeptical as they were - about a ground-based laser
system to defend against missile attack when President
Reagan proposed it last March in what has come to be

known as his Star Wars speech.

Those scientists, whom he did not name, belleve a laser
defence ‘is not an unreasonable goal,’’ he told a seminar at
the Brookings Tnatitetion, ¢ a private, non-profit group.

‘Soviet Union kills. resolution

UNITED NATIONS (Reuter) — The Soviet Union has
‘used its velo to kill a Security Council resolution to send UN
peacekeeping troops to Beirut in. place of the disbanded
muttinational force.

Only, the Soviet Union arid the Ukraline voto agaihat t the.
draft, which won the support ‘of the counéll’8: 13 ‘other |
members.

The resolution, also calling for’ ‘an immediate cenelire.
throughout Lebanon, was the result of more than twoweeks *
of public meetings and private barigeining afor eounell
members. Sef :

- ft wan ‘sponsored by. Fiance,” the only mem
multinational force with troops #til in Belrat. ’
Halian and British contingen Have withdrawn.-

The Scviet, Union, in casting its 116th veto, said the ©
resolution contained no provisions barring’ more. naval
bombardment by multinational force countries. This was a
reference to. the ships and planes of the U.S. 6th Fleet
statiohed off the Lebanese coast,

Soviet Ambassador. Oleg Troyanoveky said the United
States must end its “crude military blackmail against
Lebajion” and the “barbaric firing’ from its ships. He also
called for the withdrawal of Israeli troops from Lebanon.

“Practically not a single day goes by when the United
States does not continue to hit against Lebanon,” he said.

of the
é Us,

He seid negotiations toward agreement.on a resolution

were: broken off because of “unseemly manoeuvres" by .

western delegations.

U.S. Ambassador Jeane Kirkpatrick said big ‘obstacles
have’ been, placed. In, the way. of Lebanon's unity,
. sovereignty and peace: More was heard about Lebanon's

“f internal conflicts and the presence of Israeli troops than

about, the “more thari -60,000 Syrian troops, Palestinian,
_ Iranian and other associates” in that country.

_ Washington hopes ‘Moscow will reconsider {ts position,
t: she added. - i

Several other speakers sald they hope the council will yet
be able to do more in Lebanon. ~

Beajdes about 60 observers in Beirut, the United Nations
has hada 5,600-m1an peacekeeping ‘force known as UNIFIL '
in the southern part of the country since 1978.

But it is about 80 kilometres from the capital, where
Shiite and Druse fighters supported by Syria have been

batiling troops - and militla loyal to President Amin

Gemayel.

Speaking after the vote, UN Sectetiiry’ ‘General Javier
Perez de Cuellar appealed to the couricil to continue to give
urgent attention to the situation in Lebanon.

He said the UN should look for ways to do more not only
for Lebanon but for international peace and security.

Yaz J ede Botta

me m0 PESSIMISTIC?

Lyla
Mas

-yaRtledmann said. he,.and Smith had: a ‘long-standing /
_ process of having a full, personal, verbal exchange when -
any criminality might be involved in an ombudsman probe. . §

ee eee Oe A im gm ers FORM -,

‘With the: vritedavins, Dome’s oases could easily surpass

' $4 billion, far above the previous biggest losses in the:

_ private sector, by Massey. ‘Ferguson and Inco.
: The worst Canadian corporate petformance wes Crown: ’
‘owned Canadair's $1, A-billion loss in 1982, most of that |

fet program,

ALSO DROPS VALUE mo, *
~.. Dome Is the secorid major energy company. to include a
oe ‘substantial ‘reduction in asset values in ita year-end report.

% ‘earlier this month.

‘Wilf Gobert, eriergy analyst for Peters and Co. of

.,admission the companies paid too much for assets during .
‘the energy.boom. He said Dome’s writedown will cut.
« ‘Dome’ 8 per-share earnings by $4 after taxes. -

: Elsewhere Wednesday, Statistics. Canada figures showed
‘the recovery was 00.7-per-cent complete by year's end, but
economic growth was slowing and some economists fear
recession could return by 1985...

_.. What happens now, they say, depends on what happens i in

“ the United States — whether that country, in. worrying
“about an. oulbreak of inflation, puts the brakes on its .
“economy. .

'Gross national product, the value of all goods and ser-

““fficreased by an inflation-adjusted three per cent last year
- to $388.7 billion, following a 4.4-per-cent decline in 1982, the
federal agency reported.

_ And output in the fourth quarter of 1983 ¢ came within 99.7 -

because of writedowns onits troubled Challenger executive:

a ‘Nova Corp, announced about $125, ‘milion in ‘writedowns

"OTTAWA (CP) — Spar Aeros

ial ——

ae oq
“Maxdell n not t only rejected ee that the board Is}
"being overly pessimistic but said the’ latest figures suggest :
‘it may be too optimistic, =) ~ j
‘Tn other busines" ‘developments: Wedliesday:
-’ The federal Transport Depaytrent said Vallswagei§
Canada is recalling 83,000 automobiles to repair an elec:
* trical, defect that could cause stalling in traffic. Models
“affected are the 1977-90 Rabbit, 1980-93 ‘Rabbit convertible, | f
1976-92 Seirédco, 1980-22 Jetta, 1976 Dasher, 1976-79 Audi -?
Fox‘ and 1980-81 Audi 4000. . :
—.Robért James Saunders, a former’ director of the |
defunct Argosy. Financial" Group . of. Canada Ltd., was
sentenced in Toronto to three years in prigon for defrauding ~
investors cf about $11.8 ‘million.-Argesy ‘was. forced into
receivership in March 1960 by the Royal Bank of Canada,

= is Calgary: said the writedowns by Dome and Nova are an Which was owed $5.5 million.’ After a 2%-year police in-

veatigation, more than 102 fraud charges were laid against:

the firm, related companies and five of its top officials for: ‘
: alleged misuse of about $24,5 million. .

New arm design.

ce Ltd. of Toronto thinks:
two arms are better than one for the space shuttle,
' The company is designing a shorter, more muscular j

bo be

‘robot arm to hold’satellites and other objects while its older:
counterpart, the spindly remote manipulator arm known asi:
“ylees produced and the major gauge of economic health, the Canadarm, repairs them. i

A wrist joint on the Canadarm failed in space on the most?
‘recent Challenger flight but ground tests-after the flight did
not find any problem,

The new Handling and Positioning Aid could go into space? =

per cent of the pre-recessjon peak recorded:i in the second a3 early as 1996, Spar’s Terry Usher says.

quarter . of 1981. wot

But Thomas, Maxwell, chief economist of the Conference space arm ‘by. April, at which time the U.S.. : National . ,

Usher said Spar expects to finish designing the squat

“Board of Canada, said the figures show-all the strength is Aeronautics and ‘Space Administration will determine § 3
coming from exports.to the United States and that nothing ‘whether the proposal suits it. .

“is happening domestically.
-. And that scares him.

7 There is a 95-per-cent chance that the United States will

“pat the brakes on its economy later this year, he said, which an elbow
would eesenttally put this country back in recession in 1985. metres, it would be about half the size of its counterpart. 3

~ business directory —

If NASA approves, Spar could start work | on it befoie i
May. © a)
“We think it would take about 18 months to complete,” t

7 Usher said Wednesday, -

ROPES ceo ebtenotap ants

Unlike the original arm, the new version would not have { 1.

joint, or much Aexibility in the wrist, At seven i

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