Page 4, The Herald, Thursday: January 6, 1961

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Good news...

and bad news.

MEXICO CITY (CP) — A series of important
trade talks between Canadian and Mexican cabinet
ministers has begun with some goad news and some
bad news for Canadian exporters eager to penetrate
Mexico's booming market.

Mexican Industry Minister Jose Andres de Oteyza
told the Canadian delegation Wednesday that while
Mexico cannot increase its 60,000-barrel-a-day ail
shipments to Canada in 1981 because “we must
respect the established scheduite” it is willing to
deliver additional amounts of crude to Canadian
refineries,

Canada weuld be responsible for selling the
refined oil on world markets, he said. .

Energy Minister Mare Lalonde, who is attending
the talks with cabinet colleagues Mark MacGuigan
of external affairs, Ed Lumley of international
trade and Eugene Whelan of agriculture, was. not —
imediately available for comment.

De Oteyza also indicated. he was optimistic the
Candu nuclear reactor system will be selected to
diversify Mexico’s growing energy needs,

A Canadian official said that should be en-
couraging news for the Canadian nuclear industry,
which has pitted its Candu reactor system against |
French and Swedish reactors.

Gillian Lapointe, MacGuigan’s press aide, said de
Oteyza sounded “very, very encouraging and op-
timistic about the possibility of acquiring the Candu
reactor system. "

The Candu uses natural uranium — a feature
uranium-rich Mexico finds attractive, The Mexican
government already has two U.S.-built reactors but
they burn enriched uranium produced by U.S.-
controlled plants.

Atomic Energy of Canada Lid. recently com-
pleted a $1-million study of Mexico’s nuclear power
needs for Mexice’s Federal Electricity Commis-
sian. The Mexican. government will announce its
choice of réactor system:early..this year, .:.:-. -

The bad news came when de Oleyza said there is
no chance Canadiin manufacturers will be able to
participate ina $1-billion project to expand the capi-
tal's subway. However, he left the door open for
Canadian participation in future subway de-
velopments.:

The Mexico City and Montreal subway systems
use the same French-developed technology and
almost identical rubber-wheeled traira. Montreal's
Metropolitan Transit Bureau, which buill the
Montreal system, had offered its consulting ser-
vices here. *

Lumley had been confident that Canada would get
a piece of the aclion because it would go further
than competing countries to Mexicanize subway
technology.

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STARTED BY. LOUGHEED?

‘A battle. of greed

OTTAWA (CP) —
Much: of the blame for
western unhappiness
rests with the federal
government but the first
‘shot in the “battle of
greed" was fired by
Premier Peter
Lougheed in 1973, says
Rod Sykes, Alberta
Social Credit leader.

In a witty presén-
tation Wednesday that
often ‘drew laughter
from MPs and senators
on the parliamentary
constitution committee,
‘the former Calgary
“mayor said Lougheed
more than tripled
provincial royalties on

oil companies on 1973, in"
' effect, grabbing com:
pany revenues before ~
they could be taxed by -

Ottawa,

He said the federal
governmént relaliated
by refusing to allow

royalties ta be’ tax -

deductible, having a

“disastrous effect on-

the oil industry, particu-
larly smaller com-
panies.. .

Since then, the battle
has escalated with each

side “firing bigger shots»

Foor Gomer , , Suce ESS WAS
ALWAYS Jvustr AROUND THE

from bigger guns’ until
it has reached a point

* where it is impossible to

say who is ahead.
“The Lougheed

Conservatives have

been at war ;,. without

tle,” said Sykes, whose
party is the official
Opposition in the 79-seat
Alberta legislature
although it holds only
four seats. Sykes does

not have one, having |

been elected leader only
last November.

Sykes told the com- |

mittee, however, his
party firmly supports
the principle of

| provincial: ownership of
Tesources~.and .‘said' a: >:

Social Credit govern-
ment would demand the
world price for Alberta
oil. But’ a Social Credit
government would _
aHow the _ federal
government lo tax oil

profits to share with the |

rest of Canada while

Lougheed would not.

- David Crombie (PC-
Rosedale) said Sykes
seemed to be asking for
100 per cent of world

price while. Lougheed

-winning.a single bat-' >

. -eommitiee. -

has said he would be
satisfied with 75 per
cent. (Alberta now gets
less than half the world
price.)

“He's cheaper," sald

Crombie.

“You're not willing to

‘be bought by that,”

Sykes said, “He's not
willing to.share.”*
“How much are you

willing to share?" asked

Crombie.

“That's a matter For.

negotiation.”
Sykes’ dissertation

. touched only briefly on
constitutional -

the
resolution before the

explained *‘-western:

West has never trusted
or felt close to Otlawa
and that the. federal
government has con-

sistently been viewed by .
‘ westerners a3 working |
‘for the benefit -of the

Easl. -
He said the govern-
ment should back off

But .he-;

Wee.

‘alienation: by saying -the:.,:..-

from atternptsto amend: -

the BNA Act radically
before bringing it home
from Britain and to
make further changes

bere only with provin-
cial consent.

“What is needed is a
breathing space, time
away from radical
change and pressure

‘of. ‘government, that, ls
and -

sonable _ ae

. cessible.!"

A sirailar message on

’ alienation was delivered

earlier by Grant Notly,
Alberta NDP leader,
who holds his party's
only seat in’ the
legislature. .

-"Ppappear, enfiamed,: in the West,..of-.

- fife, would reappear to provoke, fascl
“enflame; Canadians more, probably, | tha
‘ever has done since 1968. © “> « :

OTTAWA - 7% “yen from ‘today; Plarre

| “Trudeau stilt will be where he ‘is now, So will

ge Clark,

‘Only pundits and mugs play the game of. ae

‘political - forecasting. “Who, could: have
‘‘prédicted. that "during “1980 the. virliss.¢
Separatism would vanish from Quebec; ia tat
ha
Trudeau, aiter himself vanishing from, ‘publig

 So,. confident: only that few readers: beng
remember In a year’s tlme what they read |
“here today, onwards ta 1981.

__ he would retirenext summer, shortly after the -
" “economic summit” he will chalr in Ottawa in’

July. or next fall.
» Suddenly, the crystal ball has turned cloudy. .
“In a-year-end interview with Global TV,

- “"Trudeati not only carefully avolded repeating: .

his “very soon’’ pledge, but ‘added, “I have ms

made committments that once the con-
stitution Is home, there will be other con-
stlitutional conferences”.

Earlier, some of those around Trudeau had
begun to sing the same tune. “He's going to
have to stay on longer than he planned to, for
the sake of {he party.” one Insider told me a.
couple of weeks ago. “There just isn't ate any:

_ obvious successor.”’

_ It’s possible of course that these.. ‘are, just.

* Kites belng ‘flown fo kéep ‘leadership’ can-

didates grounded and docile. It's certain,

- virtually, that Trudeau would be gone Ina -
’ swoosh of his cape ifthe right international. job °

opened up -- some sort of permanent, North:

_ South Interlocutor.

~ -and a return to the kind .

plateret

consistent .and’’ "reas bine “yeti. thab Trudeau: dsiplannihg {0,66
" --dgesn’t leave in 1981 he’s likely to be ith fe _

He said alienation has

existed for more than a
century." but it is in.
creasing because of
federal energy and

* constitutional Policies.

_CORNER | ff

: by te

Nevertheless, and even If ‘motivated more
by sheer, delight in the fob Itself than by a
compulsion to preside over future federal-
provincial conferences or by a ve found
:concern..for- the..biberal Party Gees ¥ a

ie

‘provoke, fascinate, enflame us. In

untll the winter of 1982-83 because by delaying
that long te’d alfow his successor to. vault -

‘straight from leadership conventlon: to.

election. ;
Next, Joe When?.

Trudeau's constitutional package. He's got
most of his:caucus behind him. But. he’s got
almost nowhere. toward convincing Con-
servative rank and file that he's a winner...
This disbellef that he ever cah win another

' election is the real enemy, taunting, intangible

_ Piest; Plerre When? Until recently, . con. -
~: ventional. wisdom in Ottawa -has held ‘that
Trudeau,. this time, actually meant It when he.
_ sald, as he did last spring, that he would. leave °
> “very soon’ after he'd got ‘his new con-
“stitution. Opinion divided only about whether

His tenure is more | ts
_ precarious. He’s made some sizeable dints In |

yee
aie

4é)

 4E
aff

oY

- ta,
ra

Nhe

crete

wey ,
fay .
pres lat
sedio

hts

and elusive, that Clark has to beat at-the

February convention. He’ll win there: ‘ail

booths, Clark wilt walk away from his ordeal a
cripple...

My own guess is that Clack will survive, not _

‘right, but if more than. 30 per cent ‘of the.
delegates vote Noin the privacy of the ballot ©

i

crippled but limping. To escape more severe...

wounds he'll have to hostage his future, by.
reminding delegates that the party rules allow

them to have a?. him again before the next <9":

election, at another convention. At that
convention, say In the winter of 1982-83 or
around the Hime Trudeau slips away, t predict
Clark won't survive.
Other hands-off forecasts for 1981:
nergy. “Don't look for any truce In the
Ottawa-Alberia war until after March, when

the first of Premier Lougheed’s oll production.”

cuts is due. Lougheed Is battling as much for.
principle, as he sses' if, as for bucks, as”

easterners. see them;. the cuts in March. will 5:

establish the principle of Alberta's right to put.

its oll interests ahead of those of the natloti; -:

and also reassure.those Albertans who belleve

Lougheed has been too sott in his dealings with’. a

Olttawa.-
Thereafter, the going should get easier, « ‘The.
elements of a deal are evident enough: Higher

oil prices will provide a margin. of manoeuver.
alt around -. at the minor, cost of breaking a’

Libera! election promite.:. An- Intriguing
question Is whether Ottawa. in exchange: wilt .*

_- be able to persuade Lougheed, to end his op-
‘position to Canadianization and instead to use

his Heritage Fund to buy for Albertans a share

of thelr own olf and gas heritage. Lt,
. Expect: interest rates: fo:

The economy.
remain high for a while; unlike last, spring,
and, once they do come down, to “cross” or fo

go higher than those in the U.S., afound mid-
year say. Expect a 12 per cent Inflationrate—

food and interés! rates will be. this year’s

particular devils. -- instead of the 10 per cent: .
- rate forecast by the Finance Department...

Expect to hear more and more. tale: about
wage ‘and price controls.

Politics. The personal futures of Trudeau
and Clark will aftract the most attention. °

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