*

. ‘senlor-awards and will pay for the senlor win-:

"within “striking distance” of should be able to
~ the 20-per-cent-increase goal better than it has
. pet: last. year, saya Hugh exports. .

. Horner,

' transport co-ordinator. .

_ 1970-78, Horner said in an

~Karen Hough came all the way from Victoria to

‘win the senior brass section on her French Horn.

‘She Isstanding with Bob Tiedje, of the Canadian
Imperial Bank of Commerce which donated the

‘ner's transportation to Toronto to compete
nationally. in September. re

on the increase

REGINA (CP) — Grain problems in ” Vancouver,

exports in 1978-80 should be “where Horner says the port
orm
grain
ha adequate shipping fleet
"in the Great Lakes, where at
_&E now are about 12 least six more’ \laklrs,
per.cent higher than the 21 costing about $25 million
million tonnes exported in each, are needed. One ship is
under construction: and
negotiations are underway

federal grain

interview.

- "And with two months left for others. The Canadian

‘ in the crop year, exports

could be within two per cent whether providing longer-
of the 20-per-cent objective lf. term contracts for lakers to

grain can be obtained to fill haul grain would help get

hopper cars. . > them built,
But:Horner, in Regina'for . A Canadian merchant:
a conference dealing: with ~- marine fleet or:chartering of

"+ gommon::concerns:” of the:s ocean ships by ,the. wheat
- Cangdian and United States board: would:

ensure. a
regions: ofthe.Great Plains smoother arrival of ships in
area, said an export goal of port and would ald export
‘96 million tonnes for 1901 is gales. Export grain cus-
“g little ambitious.” tomers now hire their own
Horner, Alberta’s deputy ships and there is.no control
er before he took the "over when those ships arrive

 epordinator's job last fall, in port.:

gan be built by 1084.

said a target of a 50-per-cent
increase In exports by 1965 turnaround . times
will bereached only ifa high- improved somewhat, to

put grain terminalis about 14 or 15, days for
built at Prince Rupert, B.C. hoppers cars, compared with
—'p facility he is confident about 19 days a year or two

i commissioner of ¢
f ropean. Economic Com-

wheat board is examining .-

Horner said railway ‘car
have’

' ‘The two weak:
‘Canada's grain-handlin
systent are its mechanica
makeup and the persons
operating it, he said.
Tension in the system, he

_ gold, has switched from

railway branch linea and
main lines to switching
yards and terminals,

" & solution must be found
for congeetion in switching
yards and a better system
for unloading railway cars in
front of terminals.

Other suggestions made by cent on Canadian National) -

Horner include: .
The solving of labor

ABO. _
in ‘Trighfdil car fleet has also

increased. A year ago there
were 19,000 grain cars, 8,000
of them hopper cars which
have onethird more capacity
than boxcars, By the end of
1981 the fleet. should total
about 28,800 cars, almoet all
of them hopper cars, Horner
sald, - oo,

Grain can ‘be moved If
there is enough rolling stock,
he said,’ pointing to a

Oll price

toe i

Western governments on price, has risen 109 per cetit

Wednesday assailed a
decision by the Organization
of Petroleum Exportin;
Countries allowing: crude
prices to rize as much as #4
U.S. a barrel. -

“Any price. rises at this
time is ‘completely un-
justified in view of market

; conditions,” U.S. Energy

_Cherles - Duncan

: said in| Washington: after
E OPEC oll ministers ended a

three-day meeting io
-New oll price-Increase, on
top of a more than 100-per-

1 cent increase since the
1 beginning of 1979, will

be “a
further considerable burden
for the world econamy,"' said
Guido Brunner, energy
he Eu-

munity. .
’ Brunner said any increase

c will worsen “the tendencies
= toward recession arid in-
= flation.” ot

In Tokyo, Haruo
Mayekawa, governor of the

OPEC decision would: raise
Japanese: prices and in-

crease the country’s trade

deficit, which reached $1.9
billion in April.. Ja
almost totally depen
imported oll to meet its
energy needs, .
Among OPEC states an-

. nouneing increases were

"Wheat exports

Venezuela, the largest
supplies of imported ail to
Canada, which is - ralalng
prices between $1 and §2 a 35-
gallon barrel July.

An increase of $1 (U.S.) for

a barrel of imported ail:

would, if passed on to the
Canadian consumer, in-
crease the price’ of gasoline

nine-tenths of a centa litre or

Bank of Japan, sald. the.

n is
nt on"

4.2 cents an imperial gallon. .

However, the Canadian
government subsidizes
imported oll; which ls more
expensive than domestic oll.

Kuwait, Iraq and Qatar,
‘also considered price
moderates, sald they~ will
raise their prices by 9%,
efiective July 1, to am:

barrel. ao!
Saudi Arabia, the cartel's

largest producer, said it will

not increase its $28-a-barrel

price at present. Saudi Oil.

Minister Shelk Ahmed Zaki
Yamani sug;Sgested in
Algiers the kingdox =.
might raise prices $1 ot $2. a
‘barrel if the currentn?l
surplus diminishes.-

The ofl ministers recom-
mended cutting OPEC’s 28

million barrels-a-day output —
by two million barrels, on top.

of a twomillion barrel-a-cay
reduction since late 1978. But
the Saudia, whose output of
8.5 milllen barrels « day is a
third of OPEC production,
refused to go along because
the meeting was unable to
agree on a unified price
btructure,

He said a unified price
structure would. have
compelled his’ country to
reduce production to 85
million barrels a day, the
amount’ Saudi Arabia
produced before a shortfall
in world markets caused by
the Iranian upheaval. .
- The price of.
Arabvvoil, which in the past
‘has been the cartel’s base

Saudl.

since January, 1979, and 56
per cent since last July.
Other OPEC producera have
‘imposed even bigger. In-
creases: . : ,

: ‘Theministers also adopted
9 $37-e-barrel ceiling, which

is approximately’. the top
sejce “already . charged by
several OPEC states. A 1978
agreement to set a ceiling of

By DOUG LONG .
‘ OTTAWA (CP) — Federal
. officials say the latest round
of world al-price increases,
although not yet .in place,
could add to the soaring

- federal deficit, complicate

energy talks between Ottawa
and the provinces and likely
accelerate the rate of price
increases’ for petroleum

products facing consumers. °

Energy Minister Mare La-
londe: refused Wednesday to
concede that the decision by
the .13- Organization of
Petroleum. Exporting.
Countries to set a minimura
price of $82 U.S. a barrel will.
immediately affect Canada.

However, federal officials
admit privately that
payments under the import
compensation- program,
used to subsidize the price of
‘ail imported into Eastern
Canada soall consumers pay.
the same-amount, are cer-"
‘tain to risa once the in-
_creases are in place. ;

Cost of the taxpayer-
for ‘the.

nesday. : '
Besides expressing
skepticism over the

satisfactory conclusion of

‘talks on a new national cil- |

pricing agreement,
Lougheed) sald the federal
government doesn’t. seem

- interested in making Canada’

energy self-sufficient during
the next decade. .
In a epeech to about 650
members of the Winnipeg
- Chamber of Commerce and
at a later news conference, .
he said it would be a tragedy
if Canada missed. this op-
portunity — an opportunity
few other nations have.
"T pray I'm wrong.”
Lougheed sald he would
like to see the existing
constitution respected,
particularly in the area of

$23.50 a barrel lasted just’
four months, however, as the

Tranian revolution set off.a

pricing. free-for-all as
anxious Western buyers
scrambled for supplies.
OPEC hawks, iike Iran,
have been pressing Saul
Arabia to e
to prevent a glut on world
markets ‘that might drive.

down prices. Yamani has

will be revised upwards.
“That in turn will place
greater pressure qn Lalonde
to gather more revenue for
the federal treasury from
planned higher oil and
gasoline prices at’ home, The
government. is anxious to
trim the cost of the subsidy
because of its -spliralling
impact on the deficit.

The energy minister told
Pat Nowlan (PC-Annapolis

ValleyHants) he would like -

to get enough money from a
new ollpricing agreement
with the provinces to help
Maritime residents who
depend on impdérted oil for up
to BO per cent of electrical
generation. Nowlan ‘said
electricity costs could double
in the region as a result of
higher world oll prices.

Lalonde has only three tar-’
gets from which to draw
more money, the. industry,
the producing provinces and
consumers. Ali three will

likely be hit before a new oil-
' pricing

agreement is

reached.
Canada will import about
"450,000 barrels of oll a day

ed-- "The negotiations to this

date have created in my
mind a situation I do. not

“consider optimistic to suc- -
cess,'' he told reporters. =

In his speech, the Alberta
premier won applause by
dishing out a little Western
chauvinism along with the:
cotd.cuta and coffee at the
luncheon gathering. _

He denounced the transfer
of the Air Canada overhaul
base to Montreal from
Winnipeg and the use of
Alberta crude oll to support a.
petrochemical industry in
Sarnia, Ont. .

Lougheed said. the

_ proposal for a three-province

Western power grid ‘now
being studied is an example
of how the
work
federal interference.

’ predicted an oll price

goliapse later this year’

_because of an ail surplus.

’ ‘The two-day OPEC talks
ended before dawn , Wed-
nesday with release of a joint
eommunique -setting  &

ng of $32 a barrel for
Arablan Gulf’ and other

" medium-quallty erude and

$37 for higher-quallty, low-
sulphur oll’ - % ;

from OPEC countries in the
. second quarter of the year,
about 45 per cent of which
comes from Saudi Arabla.
. If Saudi Arabia raises ite
price by #4 a barrel this sum-
mer as expected, It will add
at least $300 million to the
government's of] bill this
year. |
Yenezuela, which supplies
another 40 ‘per cent of im-
ports, siréady charges close
to $33 U.S. a barrel and is not
expected to raise its prices

er, :

The Liberal government
says it intends to gradually
eliminaté the import com-
pensaticr program once it

3 established its so-called
blended price for domestic

oll.
. The blended formula is to
be based on higher domestic

oil prices from conventional ©

and non-conventional
sources as well as rising
world -prices. But the
government says it will not
tie domestic prices to those
in the international market
as was proposed by the
former Progressive Con-
servative government. .
Negotiations with Alberta,

the primary producing:

The Herald, Thursday, June 12, 1960, Page 5 .

"No Arab Gulf country can
go beyond $32 (a barrel)
without.. breaking — the
agreement,” an Iraqi official
said. “And no ether OPEC
member can exceed $37.”

There were conflicting
interpretations about

whether the organization's

agreement permits. in-
dividual” members to fix
additional premiums based

province, are: stalled over
how the increased revenues
will be shared. .

nealone® seid Ottawa may

ve to juggle figures on

bargaining table with the
provinces as’ a result of
higher world prices. He
refused, however, to say

specifically whether new.

proposals will be submitted

n the talks. .

The domestic price now is
$14.75 a barrel, about 20
below average world prices.
The Liberals are committed
to holding oil-price increases
this year below the 4 a

‘barrel proposed in the
December budget of the de-
feated Conservative govern-
ment. . ;

Lalonde says Ottawa will

aim-to ensure enough

revenue is generated from
higher prices to finance
continuing exploration and
development by the in-

dustry.

‘But Alberta Is equally
determined to obtain at least
-the same net benefits from a
new deal as proposed by the
Conservatives.

"> Lalonde insists that eon-

sumera in the Atlantic reglon
dependent upon imported oil

hike has West howling

the markets. However, the
communique said the value:
af such differentials should
not exceed $5 a barrel. .
e ‘compromise’ :
ment is viewed as connetic
aince it allows individual
OPEC countries to wait as’
long as they want before

bringing their prices in line’

with the $32 minimum.:

“

Oil price increases is complicating

talks between the feds and provinces |

will continue to pay the same
price as the rest of: the
country under the biended

’ formula. ;

Nova Scotla premier Job
Buchanan and Conservative

. MPs from the Maritimes

have pre for a

special
subsidy to keep electrical

costs from’ due 0
soaring world rates until the
region converts from ollfired:

electrical plants to coal, .

natural gas and other energy
sour

ces,
The level of oll imports is.
to rise in the 1960s,starting
next year .when
’ from Western Canada begins
to slow: due to declining
reserves. Energy depart-
ment officlails project a drop
in production of about 70,000
barrels a day in 191, .
The government strategy
is to reduce dependerice on

ail as quickly as possible, .

primarily through expand
we of natural gas. But. for
the time being, federal

economic planners must |
inflationary

deal with the
impact of higher oil prices at
home and with the over-all
impact of higher world
prices on lagging Western
economies. toy

go

My ‘sincere thanks to all the voters and

~ anyone else who supported me in any way in the
' May 31. trustee - by-election. a esp
~ grateful

| am especially
fo the Terrace ‘District Teachers
Association. for sponsoring the Al!-Candidates

au
Pp ey s.

en Ge ate ree y a ae:
i a aon f a ats a ¢
4 tS vu rns Cae ee, :

meeting, and to the Terrace- Kitimat Dally Herald -

and CFTK for their public awareness and ad-
vertising of the by-election. .

Now that 1 know how many people agree with

my stand, ! shall renew my efforts to work for - an

| rovinces -can -
together without -

Improvements In our school district.

“Claudette Sandecki =~

yours truly,

vacancy rate-In the copntry
elevator system of 68 per

Railways lies and 40 per
cent on CP Rail lines.

Wheat exports up

OTTAWA (CP) —
“Canadian wheat exports to
@he Soviet “Union have

already exceeded the
amount approved by the
former Progressive Con-
servative government in
response to the U.S.led
embargo, Hazen Argue,
minister responsible for the
Canadian wheat board, sai
Wednesday. -

Argue told the Senate the
three million tonnes the Con-
servative government
defined as traditional sales
was “unduely low.”

‘Since the commitment was

, made, “there. has been a

small escalation of what has
‘been exported,’ he said.

been ¢
-.” But Argue sald the new

Libéral government still
feels the level of exports has
“kept “good faith with the
ment that was made.”
An alde to the former
wheat board minister, Don
’ Mazankowski, sald later the
Torles had increased the
export level to 3% million
totines after further research
showed the original figure
was definitely short of
traditional supplies to the
Soviet Union. |
.! The U.S, embargo came in
response to the Soviet in-
vasion of Afghanistan.
Agriculture Minister

d denied it, say

embargo

Eugene Whelan said in an
interview, the Canadian
government has no evidence
that U.S. graln has filtered
into the Soviet Union via
Eastern European countries.

And Argue told the Senate
that despite auch allegations
floating around the Industry
in Canada, the U.S. has
the em-
bargo Is hurting the Russian
econamy.: '

The minister's comments
followed accusations that the
U.S. may be violating its own
embargo.

Ted Turner, president of
the Saskatchewan Wheat
Pool, said Canada should end
its support of the embargo
unless the Americans can
prove their grain id not
reaching the Soviets via
Eastern Europe,

Transport Minister Jean-

Lue Pepin said later that

cabinet haa not decided
whether it will continue the
limited boycott of Canadian
grain sales to the Soviet
Union beyond the current

crap year, which ends July) -

1.
“Nobody likes — the
restraint situation we're [ni

now,” Pepin said, But &

decision on extending the

embargo will have to be
taken in light of the political
situation. .

- Call him Father,Pop, or Dad.

But call him this

anes

.

Sunday. —

ra