( ‘ a bo . oa oo t. 4, Regional Distri The future of the Yellowhead Travel Association, a group which promotes tourism in an area stretching from the Queen Charlotte: Islands to the Alberta border, is in jeopardy because of actions taken by the Kitimat-Stikine Regional District, said Larry Prevost, managing - director of the Association, ‘In an open letter to the Chairman and Board members of the regional district dated July 17, Preyést accused the district of using “back-door _ tactics” to.try to destroy the Yellowhead Association. _ ‘Tha telephone interview, Prevost said the main cause for his allegations is his understanding that representatives of the regional district have gone to the Ministry of Tourism saying the association has not done an adequate job, and asking for funds which would ‘normally: go to the association. Letters from the office of the Regional District confirm Prevost’s belief that the regional district does not think the association is serving the area properly. “We really feel that the existing brochures do not peovide the kink of marketing promotional tool that is _ moet appropriate, and it was for this reason that we decided to make the break,” says a June 12 letter from John Pousette, regional district administrator, to representatives of the Ministry of Travel Industry. ‘Joe Banyay, chairman of the regional district of V . ewe COMP. 77/78 | ere LEGISLATIVE LIERARY, PARLIAMENT HULLDINGS, VICTORIA, #.U., V8V-1%4 | #61 MANAGER SA af hag" ~ YS — by Linda Purschke . Kitimat-Stikine, said five areas; the municipalities of Prince Rupert, Kitimat, Terrace, and the. Regional Districts of Kitimat-Stikine and Skeena-Queen ‘Charlottes, had already contributed $65,000 for a new brochure outlining highlights for tourists in the local Region. - Prevost responded to criticism of the existing brochures. by stating. tié brochures had been tran- slated into three languages and added “the CPR agent in Germany wants a caseload. He thinks they're the greatest thing since sliced bread," but also conceeded that the present brochure could be more extensive. A new one, entitled “Yellowhead Travel Adventures" was already begun, he said. “‘All regional districts, towns, cities, villages, and Chambers of Commerce were asked to supply copy material and photos (for the new brochure) - this was in late 1977 and -early 1978,” said Prevost in the letter. We are still waiting for information from the office of the Kitimat-Stikine Regional] District.’’ “If we had an endless supply of money like the Regional District seems to have, we could produce a beautiful brochure,” Prevost said Friday. “We could have coolies running all over gathering information.” Joe Banyay also confirmed the regional district was looking to the provincial government for more funds and conceeded this could destroy the association, although he added the association was still free to - Solicit contributions from private enterprise in the local area, such as hotels and motels. Prevost stated the organization received $45,000 from the provincial government, and raises further amounts from the sale of private memberships, medallions, and Yellowhead dollars, etc., which he said totalled $57,000 in 1978. Prevost added this money goes back into tourist promotion for the region. “Perhaps ifthe Kitimat-Stikine Regional District had to raise its own funds, the outlook would be a lot different," says the open letter. Banyay said an initial decision to stop financial support for the Yellowhead association was made by the board of ‘directors of the regional district last winter, and the Regional district stopped its annual contribution of between $5000 and $6000 at the time. “If we're going to do our own promotion,” said Banyay, ‘‘we don't feel we should have to contribute to another agency.” - “We think the present set-up with tourist promotions ct threatens tourist group from Queen Charlottes to the Alberta border is simply too big an area to have under one hat,’’ Banyay con- tinued. “The association did certain things, but when you're promoting such a big area, its.a big job to cover it all,” Prevost stated the association had given more than adequate coverage to the Regional District. “Three of four Yellowhead. dollars have been representative of part of the Kitimat-Stikine Regional District - namely Terrace, Kitimat, and the Moricetown Canyon,” he said in his letter. Joe Banyay said that since the Association was a voluntary organization, the Regional District felt it was: free to withdraw at any time. , “We are interested in promoting the area, not in marketing. Let Mr. Prevost do his thing, we'll do our thing,” Banyay said. ; “If we can get funding for our cause, provinctal or . otherwise, we are going to try to get it,” he added. Prevost stated: ‘'I don’t care if they don’t want to “ support us.” “If they want to work out their own brochure, fine, give it to us, we'll be glad to distribute us," he con- tinued, “What makes me mad is that they’re going to Vietoria saying we're not doing our job and then trying to get handouts from a poor, struggling organization.” 5555,TAXI 24 HOUR SERVICE | 635-5555, 635-2525 "635-5050 — wate LIGHT DELIVERY SERVICE f ‘TERRACE-KITIMAT lly herald da | Volume 13 No. 201 20¢ ™”~ _Monday, July 23, 18 | ~—- RUPERT SALVAGE LTD. Seal Cove Rd., Pr. Rupert 624-5699 WE BUY copper, brass, all metals, batteries, etc, Call us - jepen Mon. through Sat., 8 a.m.-5 p.m.* STEEL & We are co ee ee Photo by Grea Middleton Work continues on schedule along Highway I6. See page 3 Vietnam is blanied for expulsion TERRACE TURNS DOWNREFUGEES| It the response given on ballots provided for the public is any indication, a wide majority of Terrace residents are opposed to suggestions _ that the District use tax money to aid community. groups and individuals who are willing to sponsor Vietnamese refugees, . Sylvia Godlinski, secretary to the city ad- ministrator, said 89 ballots had beén returned by Friday. She. said 61 ballots were against taxes being used to support the refugees, and most . Xespondents also would not consent to smaller portions of the possible $30,000 available being distributed. Twenty-eight ballots were in favor of financial support being given to the refugees. Godlinski said the results of the poll would be discussed at a meeting of Terrace council Monday. The ballots were printed in the July 17 issue of the Herald. ot GENEVA (CP) — Ex- ternal Affairs Minister Flora MacDonald of Canada says Vietnam's weekend promise to halt the exodus of “baat peopte” is virtually an ad- - mission that it has been expelling unwanted citizens into the sea — “an ac- knowledgement of what we'va been saying all along.” She made the statement before returning to Ottawa: on Sunday from a twe-day United Natlons conference on the Southeast Asian refugee crisis where Viet- nam, in the face of heavy pressure from more than 60 countries, formally pledged to try to stop so-called illegal departures for ‘‘several months,”* A elx-month moratorium on the exodus had been proposed by France to give Western countries tlme to decongest the overflowing refugee camps in Southeast Caribbean oil BON ACCORD, Tobago (AP) — A giant oll slick from the collision of two super- tankers began to break up ‘and drift away from thia resort island Sunday oni the currents, winds and tides of the Caribbean, ‘oll company officials reported. It began to appear that na- ture and luck might combine to head off the un- precedented environmental disaster many had feared. The Mobil Oil Co, called in three smaller tankers to siphon off the oil remaining in one of the 333-metre-long ships, the crippled Atlantic Empress, In the biggest such operation ever. The Atlantic Asia and to step up in- ternational use of a two- month-old agreement aimed at providing orderly, safe exit from Vielnam. The agreement, signed by Vietnam and the United Nations High Commissioner for Refugees, is meant for family reunions and humanitarian refuge, The UN matches lists of appli- cants granted Vietnamese exit visas with lists of ap- plicanta granted entry visas by foreign countries, | Miss MacDonald said she wes personally assured by Phan Hien, the chief Vlet- namese delegate to the conference, that boat people stopped leaving Inst week and that the exodus would be restrained in coming weeks. Miss MaqDonald sald she interpreted misston by Vietnam that it has been expelling citizens if the flow can suddenly be controlled at any time. But Empress cargo ia owned by The second supertanker, the Aegean Captain, is being towed to a dry dock on nearby Trinidad for damage assessment, government this as an ad-" she said Phan, Vietnam’s deputy foreign minister, did hot actually admit to her that - his government has delib- erately been expelling People. Phan told her that the government had simply Stepped up shore patrols, to_ discourage and to stop people from leaving. Miss MacDonald and other delegates, including U.S. ViceePresident Walter Mondale, accused Vietnam of expelling ethnic Chinese for racial reasons. Miss MacDonald said the Vietnamese government has | made life so uribearable for some people that they are driven to flee even at the risk of death on the South China Sea. This, too, constituted expulsion. Miss MacDonald said the promised control on the exodus was clearly the result of the pressure of world officials said, ‘he leakage of oil from its crushed bow is under control, oll company sources said, . The coast guard of the twinisland country of Trinidad . and Tobago, ’ Bank RECORD HIGH Bank rate inereased - CROSBIE SAYS — HE’S RELUCTANT BUT HE FEELS IT’S NECESSARY OTTAWA. (CP) Banks ‘of- Canada. ralsed ‘the ‘bank rate one-half per. cenlage point to a record ‘W% ~=per cent Sunday, signalling a general rise in interest rates to consumers. The increase is the eighth since March, 1978, but the first under the new Progressive Conservative government, which was -highly critical of increased interest rates under the former Liberal government. The hank rate is the ‘in- terest rate charged by the of Canada on oc- casional loans to chartered banks. But it serves as a signal to chartered banks to Taise the rates charged on such things as business loans. and mortgages, Bank of Canada Governor Gerald Bouey said in a release the immediate reason for the increase was a decision Friday by the U.S. Federal Reserve Board to raise its discount rate to 10 per cent from 8.5 per cent, The Bank of Canada hae regularly maintained in- terest rates here higher than ' those in the U.S. to keep Investment flowing into the country to maintain the value of the dollar. “Interest rates in Canada must be high enough relative to those abroad to encourage capital inflows and discourage capital out- flows," Bouey said in the release, Victim identified Terrace RCMP report the body of Anthony Lorenzon, 45, was, recovered late Thursday afternoon. Lorenzon, an employee of Twin River Timber, was reported missing after a cat he was operating in Beaver Valley was trapped In a landslide meanwhile, ‘gave up vir- tually all hope of finding alive the 27 seamen missing since the iwo European- owned ships collided late Thursday and caught fire 32 kilometres off Tobago’'s OTTAWA (CP) — Finance Minister John Crosbie said he was reluctant to raise the Bank of Canada interest rate Sunday, but does’ not think the move will seriously worsen inflation. “Certainty I am reluctant, as finance minister, because our interest rates are already very high,” Crosbie sald in an interview from his Newfoundland home. “But under the circumstances, I - felt 1 had no choice." Shortly after the central bank announced it had raised its lending rate to chartered banks to a record 11% per cent, Crosbie was on the telephone to explain the move, He said he considered the increase the lesser of two evils, Although it will in- crease the cost of borrowing, he said, the alternative — which would end up costing the consumer far. more — would be to sit back and allow U.S. interest rates creep up to the same level as Canada's, This would mean foreign investors would have little incentive to invest In Canada and the dollar would begin to slide on world markets. “If the Canadian dollar drops appreciably, then we'll really have inflation," Crosbie said. Sunday's bank rate in- crease was the first Crosbie has supervised, The last bank’ rate in- crease wae in January when Liberal finance minister Jean Chretien ralsed it to 11% per cent — the highest it had ever been — and the Progressive Conservatives were vocal in their op position. northeast Up. Five of the 49 survivors from the two ships were injured. ; The lotal amount: of ofl spilled still could not be accurately determined, but Althat time James Gites, now Prime Minister Clark's chief economic adviser, said: ‘It is staggering -that the government would. decide to raise Interest rates at this time. I am appalled. It will cost more ta buy a home, more to borrow money, more for everything.” Crosbie, then his party's trade critic, warned it would cause increased hardship for the already-stagnant house . building sector, had left a huge deficit Canada's account with the rest of the world and a huge deficit in government spending. - ‘TE we weren't faced with these circumstances, things would be very different," Crosbie sald, Liberal finance critic Herb‘. Gray said in an interview from his Windsor, Ont., home: “It’s interesting that the Bank of Canada fs not following any different policy under the new government than under the previous (Liberal) one.’ He said he is worried that the harmful side effects of the move might overshadow ita stated purpose of keeping foreign money flowing into Canada, : “Interest rate increases. can add to inflationary Pressures,"” Gray sald, “{ will examine closely the implications of this increase to see whether the benefit is outweighed by potential negative effects,”” there were indications it might be only a fraction of the 140 milllon gallons reported aboard the super- tankers. If all had poured into the sea, it would have been history's worst oil spill. h, Lore © because they ; one 7 r | ¥ H) ‘ =r