PAGE 2

It's edging throug
unnoticed by public

WASHINGTON (CP) — To
the anguish of Canada and other
trading partners, a bit of tax
legislation is edging through the
United States congressional
mill almost unnoticed by the
American-public and press,

IVs practically a carbon copy
of a bill that died in the 91st
Congress last. year, But Finance
Minister £.J. Benson of Canada
and some observers here
Suggest it has a much better
chance this time.

Benson says its passage could
lead to a massive exodus of
manufacturing jobs from
Canada to the U.S. European
spokesmen say it would put the
U.S. in violation of the General
Agreement on Tariffs and
Trade. Japan has expressed
serious concern over the
“potential disruptive" effects of
the proposal.

The object of their concern is
aclause in an all-embracing tax
package that would provide for
establishment of Domestic
International Sales Cor.
porations, which could defer tax
payments on much of their
income from export business.
Some critics say a DISC in fact
could be only a “paper sub-
sidiary," and that deferment in
some cases would amount toa
tax exemption.

COUED HURT CANADA

Trade Minister Jean-Luc
Pepin of Canada has lumped it
together with other measures as
part of U.S, “restrictive trade
measures."’ G.A. E. Couture,
chairman of the Canadian

Export Association, says the
DISC proposal in the long run
could be more devastating than
all other recent U.S, economle
moves, He says it could divert
to the U.S. the new factories and
plant expansions already in the
planning stage for Canada.

Aimed at stimulating export
business, the DISC scheme
would give U.S. companies
generous tax benefits to
produce inside the U.S. items
for export instead of producing
them through subsidiaries in
other countries, such as
Canada.

The over-all tax legislation
already has passed the House of
Representatives. It probably
will get to the Senate floor early
in November.

Last session, a similar
provision attached to a broad
trade reform measure also
passed the House but the Senate
finance committee balked at the
protectionist aroma of the
whole trade package and the
bill died autor atically when the
congressional session con-
cluded. '
COULD SLIP BY

While the country could get
along withoul a trade bill, there
is popular support for tax
reform and if the bill passes —
in one form or another — it is
seen likely the DISC proposal
would slip through with it.

In both cases, the technique
has been to attach the DISC
proposal to other legislation
that overshadows it in public
attention. For instance, this

time attention is focused on the

bill’s provision of some $15.4 ©

billion in tax relief for in-
dividuals and corporations over
three years.

In that forum, DISC gets little ,

attention. Yet it is nat without
its critics,

Saying the “Nixen ad-
rolnistration’s silence on the
scheme “cloaks the efforts of

. the treasury department once

again to slide the DISC propesal
into the tax law,” Prof. Stanley
S. Surrey of harvard law school
has termed it a billion-dollar tax
loophole.

A DISC — to qualify a firm
would have to receive 90-per-
cent of its revenue from exports
or export-related investments
— could defer tax payments,
although profits when
distributed to shareholders
would be taxed in the normal
manner. ,

Because of complaints that
companies would receive a
windfall for exports they wauld
ordinarily sell anyway, the
House revised the bill to limit
deferment to 25-per-cent of the
level of export ‘earnings in the
base years 1968-70, In addition,
however, 100-per-cent defer-
ment would be permitted on
incremental growth.

This move, observers
suggest, enhanced DISC's
chances. It is estimated it would
reduce the loss in federal
revenues to between $100
million and $200 million an-
nually from the $600 million
originally estimated.

Now that you've got one
what do you do with it?

HALIFAX (CP) — “‘Now that
you've got a hydrofoil,” a
United States Navy official once
asked the skipper of the
Canadian navy’s prototype
Bras d'Or, “what do you do with
jt? ”

Al the time, Cmdr. Gordon
‘Edwards repliéd ‘that she

~couldhde- many kdinds.ofavorkere-;
‘anti-submarine warfare, search
and rescue, pollution control —
you name it, ”

But. Ottawa has decided to
leave Bras d’Or — the world's
fastest warship — highand dry,
mothballed at the naval
dockyard here.

Because there are more
important defence needs and no
prospects for a foreign sale,
Defence Minister Donald
Macdonald told the Commons

Tuesday, the hydrofoil would be _

laid up for five years.
Bras d'Or, the product of 13
years’ work and $52.2 million
dollars of public funds, pulls her
hull out of the water with wing-
like extensions to attain speeds
yet impossible for conventional
vessels.

' SET RECORD
She set a world speed record
for warships, a blistering 72,3
miles an hour at the mouth of
Halifax harbor in 1969, and

added to her laurels in a high-.

speed endurance run to Ber-
muda and Norfolk, Va,, earlier
_ this year,

When she returned from the.
southern cruise where she put :

on displays of her capabilities
for U.S, naval officials, she was
put up on a barge for a major

overhaul. It's on that barge -

Step,
kiss,
| strike

The families ‘arrive, ‘enter

: the lerminal and head for the ..
immigration office which will .
: Benid:themi: 1o‘low-cos! houses,
purchased : on, easy. instal- ‘

ments.

Their relatives’ are waiting
“Don't let"
themi send ‘you into the desert::

io-pass the word:

- Insist‘on Tel-Aviv.”
, Or Haifa, or Jerusalem.
the immigrants are un-

“ha ppy;. hey’ ‘declare a strike, .

. Usuiailly: theycan get away
-- with it, because ‘the Russian
*. Jewish, immigrants are looked

upoti:with.admiration, Nobody -

2 =cléast* of -all thé: government

‘+ meaints” tO°-‘appear in ‘open.

‘conflict with them. Thus.a set,
Hement ‘ig.usually reached.

" ftie -authorities “say . there

‘ isn't enough urban-housing. for’ ;:

* * everyone, ard compromise. by
wo offering “newcomers, apart.
" amenig"in remote: areas with a

‘promise’ of: preferential:treat,:
“pent: when: urban: housing be: a

comes availatle. forces

she'll probably sit for the next
five years,

Captain Jm Knox of Ottawa,
the Bras d’Or project manager,
said the 200-ton aluminum craft
will probably have a boathouse
built around her as yhe sits on
the barge,

“Rear-Admiral. Robert.: W.
oe PAM Preller cA
Maritime Comm
little sympathy for Bras d'Or
when the announcement came,
He said he would rather have
money spent elsewhere than
have a ship in his fleet that
could not operate in the

Canadian North,

Bras d'Or's lack of capability

in arctic waters is probably the

--main reason fer the defence

department decision, but
continuing costs also were a
factor.

SET PRIORITIES

The white paper on defence
policy released Jast summer
gave top priority to protection
of sovereignty and surveillance
of Canadian territory and
coastlines, with emphasis on
northern waters,

Admiral Timbrell said: “Our
shoppirig list is always larger
than available cash. Priorities
have to be set.”

He reiterated Mr, Mac-
donald’s stand | that
replacement or major overhaul
of the. aging Argus long-range
patrol aircraft was badly
needed, He also emphasized the
replacement of some outdated
surface ships with vessels
capable of penetrating ice, -

“It won't hurt Maritime
Command, It was only a
research vessel.” ;

_. Captain Knox said it is
- possible, but unlikely, that the
. concept of the hydrofoil could be

- outdated while the vessel is idle,

“Jt has taken us a long time to
‘get to this stage and I don't see
-Much’ ‘on: the ‘horizon that’s

“ likely to’ overtake us in five
years," he said,

“COST wout MOUNT

The next stage in develop
‘ment work would: have® cost 45°

: maillion ¢ over three. years, :
“Captain Knox estimated that,

$1 million would be spent to
maintain: .the hydrofoil during °
= the five-year layup. ‘He sdid that
is the minimum-amiount defence |
‘ department: officials felt’ was
reasonable to be able to reac-
tivate the Bras d'Or at any time
in accordance with. Mr. ‘Mac:
donald’s statement, -

; : Bath. Captin- Knox: ‘and. Ad-
“mnital .-Timbrell. |: expressed:
‘pleasure’ ‘that research: would

‘Goh tinue -in’the hydrofoil: fleld, °

- Nelther: would “elaborate on’
‘how: ‘the. research - would be
doiie;: ‘but Défence®: Research |
Establishment.: Atlantie « in:?
neighboring . Dartmouth ‘ts:

"engaged in ‘a’ hydronamica’.

rch program :.making: use:
“af a: of a. hi

ihe Bras aor comilonet of,

7

aes

25 men and five officers
probably will be absorbed into
the Canadian forces, Admiral
Timbrell said, with some used
‘or

maintenance of the
hydrofoil.

Planning for a hydrofoil
vessel began in 1959, but it was
not. until -1963.. that. a -contract

construction at an estimated $20
million,

A. fire at the Sorel, Que.,
shipyard where Bras d'or was
being built further added to
costs and delays in. the
‘program, and it was nat until
1969 that she! started her high-
“ speed runs, :

* THE HERALD, TERRACE - KITIMAT, B.C,

of the most popular card
games for two players ever
devised, has been around for
about 350 years,

Yet there has been no com-

prehensive and authoritative
book dealing with the game.
Now Douglas Anderson of
Halifax has come up with All
About Cribbage, a work that ©

explains the game clearly and .
simply for the novice while |

setting forth tables and odds,
never before calculated, to
meet any test the expert
might issue,

Sir John Suckling, an Eng:
lishman who died in 1642 at
the age of 33, was credited
with inventing “cribbidge’’.

. His game invelved a fivecard
deal compared with the mad-

ern six-card version, But the —

‘original rules and method of .
scoring are slill the same as
they were in Suckling’s day.’

Mr, Anderson, who retired
in 1969 as a senior executive
of Nova Scotia Light and
Power Co. Ltd., has been an |
avid cribbage player for more
than 50 years, including Sec-
ond World War years during
which he was made an officer
of the Order of the British
Empire in recognition of se-
cret work on navy and mer-
chant ships.

NOBOOK AVAILABLE

During his “crib” days he

heard many a heated argu-

ment about rules and scoring -

and complaints that there was
no standard reference work

available to resolve the differ- -

ences, So he decided to rectify
the matter by gathering his
own material, including his-
torical information and math-
ematical data.

The result, All About Crib-
bage, is based on the six-card |
game for two-, three-, and -
four-hand contests. It also
covers the original two-hand,
five-card game, ¢

Offensive and defensive
strategy are outlined and for-
mulas to indicate the proba-
my of cutting a card, orof

drawing one.or a combination

= ot oar cards, 35. Aad. new Simensions..

ee eee

te come, even the list of
rules may generate a revolu-
tion in tactics and style of
play.

For instance, if you touch
your opponent’s pegs, or touch
‘your own except when scor-
ing, it can cost you two
Points.

Now, a:
book on}
cribbage} &:

The game of cribbage, one *:

AT THE LOCAL CHURCHES

Service Schedule -
Sunday Schoo} 10:00a,.m.,

Sunday Evening -

‘Bible Study
Wednesday 7:30 p.m.

“PENTEGOSTAL TABERNACLE

4697 Lazelle Ave.

Morning Worship: 11:00 a.m.
7:15 pm.

Youth Night Thursday 7:30
The end Wofyour search for a ienaly church

Phones:
Office 625-2494
Home 435.5336

Pastor M. Kennedy

Captain: Bill Young
9:45, Sunday Schoo!
11:00 Marning Worship. .
7:30 Evening Services

SALVATION ARMY

4451 Greig

For into on not her activities Phone Envoy or Mrs. Bil Young
£35. 5446

7:30 Thursday Night
. “Bible Study &
Prayer Meeting”

KNOX UNITED”
CHURCH
Cor. Lazelle Ave. & Munroe .
Phone 635-6014
Worship 11:00 a.m,
Church School & Nursery
11:00 am.

CATHOLIC HURCH
Lakelse Avenue
. "SUNDAY MASSES
* 8330 am. | * 10:00 a.m. -
5 am. 7:30 p.m. -

SERVICES -

Parish Halt 4624-Walsh Rd. |
10:00 a.m. ‘Sunday Services
9:30 a'm, Conlessions ..

UKRAINAN CATHOLIC” an

CHRISTIAN .
REFORMED CHURCH’
/ Sparks St. af Straume Ave.
: Rev. Joha Vandyk a
Phone 635-2621

’ EVANGELICAL. ..
FREE CHURCH’:
car. Park Ave. and Sparks. st.

9: 45 Sunday School",

11:00 Morning Worship” °

‘7:30 Evening. Services

Wednesday 7:30 pms |.

. ~Prayer and Bible Study
"Rev. B, 8. Ruggles ,
ELE Park ‘Averive ‘618-5115.

" “funy School-Terrace. 10 a.m.
‘SSunday. School + Remo -

11:00 a.m. Worship’ Service: Ls
5100 p.m: "Worship ; Service’
Back ‘6 God: “CRTK Hour:

Wodhexday evening at 9p. m.,. .

“Phone “+ :
“Gis ‘Laelia’ ‘Avenue; ‘Terrace. _

~ CHRIST” LUTHERAN ©

“ST. MATTHEW'S a
_ CHURCH »

Anglican ‘Chureh: ot. Canada :

| Sunday Services ar
, at 8.91309, AM
every Sunday:

speed hydrofoll unit,

t ible’ Schaot e

Mornind| Worship.
= Evening Service’
ible Study ‘and: Prayer

at

Workmen’ continue. on Cc

AMCHITKA ISLAND, Alaska
(AP) — Workmen continued
pouring sand and gravel down B
6,00-foot-deep shaft. in’ Am-
chitka Island today sealing 8 50+
phisticated new nuclear weapon .
in the underground chamber
where it wilt be detonated Sat-
urday.

The process, called stemming, 7

“seems to be going well after a
slow start,” said Atomic Energy
Commission spokesman.

The weapon, codenamed Can-

nikin and the largest nuclear

device ever exploded under-
ground, originally was to be
detonated Friday, but a
stemming problem encountered

Tuesday forced officials to set —

the schedule back one day,

Cannikin will become the war-
head for Spartan anti-ballistic
missiles ringing Minutemen in-
tercontinental ballistic. missile
sites in the United States.

‘It will be equivalent to fiye_.
million tons of TNT, five times
more powerful than the Milrow
device detonated two years ago
on the barren island in Alaska’s
Aleutian chain, 1,400 miles from
Anchorage.

‘PLAN CHECKS

After completion of stem-
ming, engineers planned exten-
sive checks of instrumentation
in the chamber that will tell sci-

" - entists how the weapon per-

forms when it explodes.

Longest

telegram

WASHINGTON (CP) — To-
ronto radio-TV commentators
Pierre Berton and Charles Tem-
pleton trunded a 177,000-name

telegram into a presidential of- ~

fice building today and were as-

sured their protest against the

planned Amchitka nuclear test _
would be “brought to the atten:

tion” of President Nixon.

Western Union, which had
been receiving the telegram
here for the last four days, said
it believes it is the longes|
message it has handled in its
history anywhere in the United
States.

Readings from the instru.

a ments will be recorded in trail-
‘ers on the surface. in the.frac-
tion of a second before the heat
and pressure of, the blast de-
-stroys them. ; :

ABC officials said all that re-
mains then will be ‘clearing the

surface area ‘above the chamber |
and “‘buttening up the Island.”

“The last of about two dozen
“Environmental Protection.
Agency personnel scattered |.

throughout the Aleutians to

monitor .radiation, if there is. °

any, left Anchorage Wednesday

‘or Kodiak’ Taland, uphe
Six U.S. Air Force and |
Wns: Navy ailreraft are to,

~ stationed over the island Sat

day, taking photographs,
other measurements and wale
ing for intruding alrcrat ors 8
face ships. i

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