} f Page 2. The Heraid, eee august 11, 182 ’ . . Published. ‘query, “pewkitey at Jo10 Katum: Street, _ “Terrace, ‘B,C: -by.- ‘Sterling | Publishers. ‘Lid. o ° . Author ized: Os ‘second < class ‘mall, Registration * 7. Number: ANI. Postage pald, in fan return "Postage. ‘suarantesd oe Maicen el rs te Brian Grego: "Advertising Sales: , | Terrace — David Hamilton "Staff Writers-Phatographers:~ “Sports: AS . ; Reception-Classified: : aad .. Carolyn Gibsan. ' : - Circulation: 7 Maria Taylor - NOTICE OF COPYRIGHT. ; “ oT he Herald retains full, complete and sole copyright | Inany advertisement produced and-or any editorial - Sor photographic content published In the Herald. ‘Reproduction is not permitted without the written permission of the Publisher. Se Fight continues public. : J The early rounds went to the, government, but the scrappy union has rebounded with a few shrewd moves of its own. Knockout punch seems increasingly unlikely. - gladly accept. the wage offer-of a 11% per cent. over two - years, Fryar decided to, “call the bluff” and put the offer to ” The’ strike by -the‘ 40,00¢member B:C. Government i Employees Union — 89 per cent of whom backed the action i— is anything but ordinary, important, ‘an anxious public. Cognizant of that fact, union general secretary: John 4- :Fyrer says the union's aim is to ‘maximize its pressure on - dis government and. minimize the effects on’ the public, ad ‘after the B.C, Labor elations be Board said ithad the right to ‘picket, The union has only a small number of members on the ferries. On Sunday, after Premier Bill Bennett said hundreds of union members: had-called his offlea saying they would his amembership.i in voting ‘Tuesday and today.. ; The results will be released Thurpday and Fryer says that Don Schaffer : ally here 3 { “”. elub or prep-schoal. tie.’ Up. close, the apattering of : - VANCOUVER (CP), — Resembling a pair of crafty. ‘employees. union keep throwing an assortment of jabs,- pokes and wild punches i inan effort to pile up points: with the “And if one thing is certain,in' the six-day strike, a quick i’. [t involves some of the most highly-visible targels in. ‘the’ | is province, including the vital B.C. Ferry Corp. fleet and the. ; iqour stores that take in $7 million a week —.and- most ° either way, the membership will return tg the job. Fryer is: - gambling that a heavy vote rejecting the offer: will ba the leverage ‘he needs to force the government back: to’ the negotiating table. with'more money. . It’s a gamble he’s not likely to lose: While some might be inclined to accept:the wage offer in.this time of restraint, . chances are slim" ‘they'll accept productivity clauses and other issues in the government proposal. The government insists the vote should be simply on the wage offer and adds that it remains flexible on other issues. ; The government was strong early in the strike, Insisting that the walkout was against "the people of B.C.” and threatening legislation might be necessary to maintain -essential services. Its quarterly. financial report, released lwo days, before the strike. ‘began, shows the province facing a $730 million © deficit in its $7.2 billion budget and in no Position | to be of- ering 3 more money. fr : Fryer has negated that impact somewhat by promising to jpulh “all Pickets- Thursday, restoring Highways Ministry ferries to isolated Coastal and Interior communites for one, iday. ‘Monday and maintaining essential services, The next move clearly “will be up to the government, : "WASHINGTON CP) “the ihr ssn in , Washington now includes: thie: Adam Sinith ihecktle, - ‘atyle-watchers report. 07 "Atm glance, It's'a piece of neckwenr ‘ike, any other’ co fittle symbols turns: ‘out to be cameo. portraits’ of _ Adam Smith, the 1gth-century ‘Scottish ‘economist. oy - supply-side ideology, - . . Wearing the tie anywhiere outside the White. House, - ‘of perhaps the U.S. ‘Treasury next, door, is partly an "-) @xencise in preppy humor.‘It can also bea gesture of *” “defiance toward thase who heap derision iipon supply- side economics and that’ theory's first deliberate” expression in practice, Reaganomics.: Supply-side theory, yesterday's economics,” has become an option in. today’s or- thodoxy, if only because of its trial by the government of the world's biggest and more influential economy. - Itis part of the nostalgia of Reagan Republicans f for what they believe were simpler times, Supply side thus is a political fashion, like the Adam Smith necktie, But it shows signs of becoming as pervasive and perhaps as enduring in debate as the old free- _tMarket thoughts.of the-Scottish scholar, .. In. Canada for example, the supply-side idea has been adopted, atleast implicitly, by. such tax-cut advocates as federal Progressive .Contervatives ’. David Crombie and Harvie Andre. Those MPs say the . Tate cuts they seek respectively in, federal sales. tax ~ and petroleum levies would cause no long-term loxs of - revenue. because they would i increase the income to. be taxed at lower rates. - In‘ the United States, the- policy had potent and * unswerving advocates, including ‘Robert ‘Bartley, . editor of the Wall Street Journal, a bibleof American ~~ business ‘and the country’s biggest newspaper, with a - daily. circulation of two million ‘Wall Street itself, however, has° deen sullenly unimpressed, ‘declining to respond bullishly - to Reagan’s optimism and Bartley's editorial advocacy, So have been leading American conservatives such as Irving Kristot and Kevin Phillips. Those one-time Reagaiiites now dissent--on. the ground. ‘that .. Reaganomics is a corruption of neo-conservatism's "humane and populist foundations. :: - But supply-side’: economists have become cult figures. The high priest ig Canadian Robert Mundell of Columbia. University, New York, a native of Kingston, Ont.,-a graduate of the University of British ‘ ~ Columbia, and. still. a Canadian citizen. : “_Diseiple Arthur. Laffer, at the University of Southern California, Los: ‘Angeles,.is keeper of the Laffer Curve, a graphic illustration of the supply-side - idea that high taxation reduces productién, income . ‘and. government revenue, while lower rates do the opposite. - ’ Leading acolytes who worked i in ‘the governmeit, - Norman Turé and Paul Craig Roberts, have recently left. senior. positions in the U.S. Treasury for the ~~ side arts. Supply-side economies, | Fecession,-; mainly at the.top income lovels — will increase private investment in production and jobs. This stimulates more work for more take-home. in- come, which will be spent on ‘the greater. supply of goods proguced. National income grows so that even - ‘othe government revenue initially lost by the. tax cuts . will bé recovered, the theory goes. - - It rests on the classical belief of Adam Smith i ina minimal role for governments and the pre-eminence «of private enterprise as the motor of prosperity. It incorporates the attendant thesis of Jean-Baptiste Say, a French contemporary and disciple ‘of Adam Smith, that - “‘supply creates its own demand.” ‘ Supply-side thus is a counterpoint to the demand-' management. orthodoxy of late British economist John Maynard Keynes. His 35-year-old refutation: of - "directly | through “government, . benefits, “voodoo , 7 lucrative lure of priyate consultancies ‘in the supply- ; a central notion “of : . Ps por Reagan «elds; that. tax reductigns/ during avinqmtaguided bellefahartenstits toithe:peop'trinkdedipitor. et fey rer » Smith and Say states a demand for goods in hieved mae spending’ “or tax ~ oan | investors anc | workers in tara to he! mare, \. os Produc cor Canada — - Mundell, 49, on the supply. aide, ai he has: on “been for é ‘decade; and John, Kenneth ‘Galbraith, 73 He is the resurrected hero of Reaganomics, ‘with its - . t ‘atress on private enterprise and its accompanying. ; Chelation ne : onthe demand aide, as he haa been. through a ‘og. | _ American, cateer: rooted in “his. birthplace’ at ‘Jona » Statlon, Ont, ; puraued at Harvard ‘University. in’. Cambridge, Mass., his present homie, and impressed i on U.S. Policy’ 0; years ago asa confidant of John F. Kennedy. What ‘particularly irks Galbraithians is the Mun-. delllan contention that anti-recession tak cuts in 194, developed by. the Kennedy administration before the president's death in 1863, really worked as. supply- side measures in a demand-side guise, \ * Both sides argue that Kennedy. tax case con- vincingly. The Keynesian and Mundellian. theories, : simply, are rival ways. of - ‘interpreting how an economy works. ; The two cults -are already debating whether the ~ | Reagan tax cuts truly generate supply first or dono. by Initially encouraging demand, Each side claims * that economile resp ery; when it comes, will prove its ; . point. res # ~~ Keynesian Barry. i Bosworth . of the Brookings . Institution in Washington says recovery will happen ‘ in spite of Reaganomics: - am “We aré betting ‘that- supply-side economics ia “wrong and people'will go out atid spend their (tax- cut) Money just’ the ‘way Keynesians say they will, a” Galbraith. rolle ‘oul his sense of humor against _ | _ supply-side tax theory, Itis appropriate! ‘to the theory, :. ’ he says, that the Laffer Curve is shaped like a. wish- bone, . Te may seem fot to maiter which side is right if tax | cuts produce prosperity anyway. ‘But the coltiding theories inspire different social. and political results because practitioners of the _ Keynesian and Mundellian faiths take different: approaches, . ' Roughly, Keynesians. ‘pump out money to provide . the wherewithal to create demand, The poor are at least as likely to spend it as the rich, probably more: so, because their pent-up needs are greater. It ls this that endeared Keynes to liberals and social i democrats, providing a rational reinforcement of the liberal’s charitable. instincts and the socialist’ ‘a: im- pulse , to spread wealth more evenly, ““" . ‘ Mundellians, who give first: place to investment that increases supply, tip the cash flow towards those “~ ’ most likely to have spare money to invest, the well-to-- ; . ‘do and business, This fits the classical Smith-Say Faittii in individual enterprise as the motor al ‘Browth.. ‘ Hi is a this that also earned Reaganomics its trickle- ; down tag and a Galbraithian’ horse-and-sparrow ~ ‘analogy: Feed the rich horse and. the common © sparrows are nourished on the droppings. | Mundell retorts that scattering’ tax. rebates and cash Handouts widely across the populace amounts to - 7 .an ineffectual . trickle-up theory .— namely, -a the rich, the turbines of production.and employments; 6:1 . Adam Smith thus lives again in Reaganomics, as _ brazen and nostagically as his likeness. dangles on ; ‘Reaganite’ shirt-fronts. The necktie symbolism is nat lost 0 on critics of both the political tet and right, who say Reagan's program is becoming a political . burden. hanging around the neck, of his government: “Reaganomics is based upon the assumption that society is nothing but ‘a statistical aggregation of ° private economic actors,” protests Galbraithian , economist Lester Thurow. The inadequacy, “confusion ‘and archaism"™ of * Héagan's economics will drive” a nation in crisis further to the’ polilical right, predicts Kevin Phillips in his book Post-Conservative America. ’ ‘over: things.th: _ 2,000 people of ‘all ages. ; -. ¢omhmunity, often ‘for the first time. .° | Hyndman missed ‘Usecutities leg isiaddw aridinesd i ttons4b Ath! ''o exéhangetin its imperthaeomrpstition Wiel tHe pact reine: | 1 VANCOUVER (CP) - Jerry Walter, Vancouver's, oily ‘health planner, believes the health of older persons depends . fore on what they Wt for themselves than’ on having: more: ; hole: thi ttitude Vancouver e ian "To encourage | 5B ude, . Ag vin in its. Weal Endy. has. held the: first ‘hi a alr ". : cai for with 19,000 elderly this age BrouD, : organized bythe West End Seniors” Network ‘with sup- port from. the ally” health department, a federal,New.~ " Horlgins. grant of . $9,500, and the West Edn. Community - Centre organization; the two-day event attracted mare athe noe ay 4 wah The health fair included.-more . than Bw, agericies and ” groups and everything was free except the refreshments. " Advies was available on nutrition, exercise, home..cere, . teeth, and relaxation, The program wound up with a dance... Dr, Dayid Kinloch, Vancouver's chief medical officer.of health, says a hospital crisis exists in B.C. and health, for - theelderly has become criticial. Lifestyle habits can finally ‘eatch up, causing illness in.an individual's declining: years. The health fair aliracted the elderly and thelr families, to ~ learn more about health strategies in” the. senior years, . Hundreds of people gave their time. and energy: to::this ‘project, says co-ordinator Dr. Nancy: Nelgon.. ipa Nelson said one thing the elderly and- their families need “to know is how to cope when: afflicted by a permanént " -flness. The knowledge that support groups-exisl-remaves. much of the slress brought on by the situation, said Neléon. But the existence of such support groups is often- unknewn _ Jo genlors: and they Btruggle along unaware thal Helps | - available. yan? For example, although the’ elderly know exercise is . . important for their healih, actually seeing a demonstration ~by a fitness group that inelujes older citizens. sslee ae realize they aré ¢apable of jojning in, said Nefson, 5 ” “AL the fair youngslers, such as the Girl ‘Guides, served tea and acted as hostesses, getting to know older people i in thelr The fair took five months of exhaustive planning ' ie ‘many people attended, sald Nelson, was less ‘imports (han what those who did attend learned about fh responsibility for their health... . Gertrude Inglis,-who took ‘part in a self- mags age : demonstration, said anyone can learn to do it. She ‘felt’ ‘fair indicated (hai physical well-being Is within everyone’ ‘8 reach as long aa they don’t give up. | ane an CEG Le wih. VANCOUVER: (CP) — Vancouver - -deourities-indhiitty ’ dealers expressed regret Tuesday over the: -replacemént'of Peter Hyndman as Consumer and Corporate “Alfdits “Minister in Premier Bill Bennett's cabinet ‘shuffle. ~* rt Donald Hudson, Vancouver Stock Exchange president, . Peter Brown, exchgnge chairman and Page Chilcott, Bist - chairman, urged the new minister Jim Hewitt to retain the : . Ministry’s senior-personnel and proceed with Hyndmilits ; . inilialives with as little disruption as possible. - f ire Hyndman resigned his job: following. months ‘of ‘con. : traversy over irregularities in his expense accounts, As red” ‘new Vancdavet * Under -‘Hyndman,,.‘the- ministry’ “had ” Stock Exchange for Canada’s venture capital under business. : --“We've had an excellent working relationship withthe ministry from the deputy minister down and we hope that ‘there will bea minimum of changes made," said Hutson. “We were particularly pleased. with (Hyndman’s) ‘han- .dling of the Securities Act as an exposure bill: He seémed to ‘have an interest itt enhancing the position of the Vancouver “ Stock-Exchange and also seemed to understand the |in- * portance of deregulation and having the governimed| "gt. - intrude where it was not necessary.” 9-4 . Chilcott said Hewitt appears to be a man ‘who will! strive ‘to learn his new portfolio and that Hewitt had handled his previous portfolios competently. Brown, who also is president of Canarim Investrhent _ Corp. sald it was “sad to lose a very able administrator are unrelated to the administration or his ng Pare ee - portfolio.”” Oil company profits dropped. ” High interest rates, dropping consumer demand and the national energy policy helped cut the after-tax profits of oil companies Monitoring Agency reported Tuesday. But agency -chairman ‘Harold ;Renouf: Said. it wasn't ’ possible to isolate the impact of any one factor a on the vrop in oil company profits to about $3-billion, A He described attacks by ‘oil. “coripanies ‘on ‘the’ federal: ° * government's. energy, policy, made public in October, 1960, which ia trying to operate within ‘its toughened restraint. ‘program. B.C. is being closely watched by all governments - ‘ag this is the first major challenge to the ° federally initiated ; a — previous, Year. - ..- 1 The drop.was. achieved: by. increased government par. = wa ticipation through companies | such as Petro Canada. aswell. as takeovers in the private ‘séctor:. ha “The federal governmient wants foreign ownership in the” ; , petroleum indusiry reduced. “to 50 per cent by -1990. , ible sector wage: restraint. rejection of the government offer should put pressure on the government negotiating team to improve its wage offer and make concessions on other issues. . Fryer won’t put a time limitona government response to the membership vole, but-says the union has “unlimited . options,” including selective picketing at prime revenue- producing targets, work-to-rule and a ban on overtime. an nearly didn’t come - ‘With all that rain.” : ae oe a8 Beare tactics. ~ Information: from 101 of the largest oit and natural’ gas. companies ¢ on their 1981 operations also showed that foreign ownership dropped ; to 67.2. ‘per cent from 73.9 per, cent the ‘In another development, debt:ridden: Dome. Petroleum . Ltd. said Tuesday it has agreed, to sell a major portion of its” . foreign operations — including its: Indonesian assets — _BP Petroleum Development Ltd: and London and Scottish ® ee to Marine Oit PLC. for $340 million. at ‘Dome: spokesman: Bill. Payne said the twd: ‘Londen, England, companies’ will pay $270 million US. ‘for the properties now held by Dome subsidiary. Hudson 8. a Bay on. - and Gas Co. Ltd., mainly ini: Iridoneala.": * Dome said BP and London and Scoitish will, in effect, acquire controt of 87.5 per cent of-all Hudson’s:Bay’s in-* terests outside North America. The sale was effective July. 1 1982, aa : CALGARY (cP) — ‘The Korean: business. community Ia . weathering the, current tough... economic . times’ “through: rocky. times... * by A ATONE LOE TE Do - That, ‘way, more benefits come our way.” teamwork, while many. other. small businesses are. slowly’ a being squeezed out’ by high interest rates.” < ‘The Korean Canadian ‘Businessmen "Association in. Calgary represents 77 businessmen who have banded”: together as a people and a business. sommunity ad nut ay “As a small business group, ‘together we have buying power,” said association president Byungki (Paul) Chel. As president, Choi approaches a. manufacturer wi a eo. m Canada by 34 per cent in'1981, the Petroleum . Dome, which has been caught in a cash squeeze because. - it borrowed so heavily last year td. finance its $4-billion: - _ purchase of ‘Hudson’ s Bay, has been seeking a buyer for. some of its foreign ‘holdings for some time, Concern over the company's. precarious debt load has: sent Dome -stock plummeting - on the Torento stock ex: change the Jast few days. On Tuesday, Dome shares fell 55 “cents to $3.75; Late last week, the company's stock traded at 7% and, d about, 18 ‘months ago at close to $25, . ' : “In other business’ news Tuesday: . = Thomson: Newspapers Ltd. reported increased. | profita ! Brown was a member- of a controversial dinner party paid for by Hyndman at a Vancouver restaurant, far which Hyndman was later eriticized. Yh q Munroe investigated raat ket oe LOS © ‘ANGELES _ (Reuter). The Los Angeles -prosecutor’s office is trying to establish the chain of events ‘in the last day in the life of film star Marilyn: Monroe, _ District Attorney John Van de Kamp said Tuesday night.” ‘for the’ first half of;the year = but slightly lower profits in ¥ Pl =~ Van de. .Kamp discussed with repirters the line’ ‘of inguiry, "being taken by his office soon after the controlling authigtlty “Tpgonto. based publishing giant. posted, Het. income’ of' 45, 3 “Million « or 92 ‘cents a” ‘share for the Tirst six months of the’ year, up from: $49.8 falltion or 88 rents a share’ iv the same - “period of 1981: — The. Canadian I Imperial: Banik ot Comrnerce warned : lithe improvement is in sight for the Canadian economy for at the batancé’ of the year'— and it sald the’ set.of economic: * ” signs it uses for projection are at their lowest, point. ever. The bank-said the. Commerce Leading Indicator, made up of eight economic components, fell'0.a2 per cent in May to ° “its lowest. level” ‘since its: Inception in 1967, . He said hig office is not considering making a request to -exhume Monroe's body — 20 years after she died of what “cthe coroner's office described then as a self-administered - " overdose of barbiturates. So eS nats . for Los Angeles County, the Board ‘of “Supervisors, * fequested an investigation of reporied claims si a ‘f ets _ Coroner's alde, _ The aide, Lionel Grandison, was ‘quoted f in news 8 Reports AS. saying he was coerced into signing Monrce’s ‘death: . Certificate, the investigation into her death was incomplete ' ;-and thal.a diary she kept haa disappeared. Lge “ The reports quoted. Grandigon as saying the: diary gh ve. - — 'The--Conference Board’ of Canada- “warned. thet: : ' etonomic output in‘ all provinces and’ most sectors of the .. a . economy. will decline! this year. If. the forecast’ proves 7 "correct, if Will-be the first time since at least 1961, wherl the board first starting. keepirig records,:that all Provinte ‘wil Z ot have registered such a declirie. mo ” Teamwork. helps Koreans Ss. ~.deal he can't iurn down, especially. when ales aren't ig “Bowell, ‘He. negotiates a discount by assuring them.he has. many business associates who will bly’ in bulk trom the” = manufacturer: ‘aia cut rale. ~ “We tell them that our group will buy trom thelr company all the time," Choi said, “It's good for, the sompany. and: good for us."?*: when borrowed funds are expensive. | “Tt helps, but we can't help each other financially; every .., ,Btore Ig. independent, ‘and the association doesn’ Phave a Hat. ‘af maney except ‘what ir Kets f trom danath “The approach yields: ‘dividends. and: I eopostally we : 5 . years, claims he ‘has evidence the diary included’ ent stating Robert Kennedy, then’ U.S: oo ane Benerdl,” , Getails-of a friendship* ‘between’ the* acitesd ‘and RO rm , Kennedy.) - oo Mohtoe, one of Hollywood's moat. famous ex ay was Es when she’ ‘died. vs Wye ee 1 “HEP so “We rein: thie Btiedss of revibWing” both: ‘the news. a “counts ahd oftitdal: pollde: tegen 1 her'deat in order to what fuirtee tion be ai ie Kam) mp, yy] Wig ™ oa fae ini 1a ent y Koerning the circumolange of Monroe cuts of hee {reporled felendeniy with Present eh and Hale, Kennedy, ‘both of whiniiwére presi alter” . - Rewards of up'to $100, hoon are b bee j offer ‘so-called red diary. wry Angeles private detective, Mile Syerial Nt Sil “hs agency has been.working ‘on the Mdnive ‘chi et ! . wet