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‘Page 4, The Herald, Tuesday, November 29, 1573

TERRACE/KITIMAT ~ daily herald |

Generali Olfice - 635-6357 Published by Circulation - 635-6357 Sterling Publishers PUBLISHER - Laurie Mailett GEN. MANAGER - Knox Coupland EDITOR - Greg Middleton ; CIRCULATION - TERRACE - Andy Wightman 635-6357 KITIMAT - Pat Zalinsk! 632-2747 KITIMATOF FICE - 632-2747 :: Published every weekday at 3212 Kalum Street, :; Terrace, B.C, A member of Varified Circulation. Authorized as second class mail. Registration number ? 4201. Postage pald in cash, return postage guaranteed.

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losing steam SOPTAWA (CP) — The épuntry’s economy leat some « its steam in the third quarter of this year and Chbinet and opposition H earn alike said londay they do not expect réal growth to meet the government’s four-per-cent

target, -:Statlatics Canada reported Monday that output of goods and services, as measured ty the gross national product aes grew jin real terms .6 ent on an annua tesla during the months July to September. “This compares with ex- pansioata4.4-per-centrate A.S. in the second quarter and 2.8 Sinclair Stevens, the per cent in the first quarter. Progressive Conservative Increased personal finance critic, said growth ipending asd more in- would have to hit a real yestment in business and annual rate of 12 per cent in machinery and the final quarter for the equipment accounted for country to average four per much of the expansion. But cent this year. the th was weakened by But, he added, prospects declines in government for the last three months of operating expenditures, 1978 appear dim and the other investment in con- government seems to be struction and business in- preparing the country for the ventories, worst in 1979 by continually The total output of goods pointing to the slowdown in and services In annualterms the U.S. economy. was valued at$235.9billionin statistics Canada said the third quarter, up froo growth in the third quarter $229.8 billion in the second effected a return to the quarter. . weak pattern of consumer Statistics Canada said the and business demand in the economic growth in the economy that has been quarter = represen apparent since early 1977, ‘“eontinuation of the ts same y

‘7 with the exception of the moderate advances begun second quarter this year. late in 1977. Last year, the = personal spending on annual growth was 4% goods and services rose at an relativelypoor 2.6 per cent. annual rate of 3.6 per cent in

The federal agency also the third quarter, in part anid there was a moderation reflecting the impact of a of domestically-produced temporary cut in retail sales inflation, with prices rising taxes in most provinces. at an annual rate of 6.8 per That cut ended in most cent in the third quarter, provinces in October. down from 6.8 per centinthe = The strength in consumer gecoml three-month period. demand was largely in

The figures were released purchases in durable and just after Finance Minister gemi-durable goods, such aa Jean Chretien told a federal. gutomobiles, major home provincial premiers’ con- appliances, furniture and

nce on the economy that clothing and recreational real growth this year will be equipment. at best four per cent, At the Some of the increased outset of 1978, Chretien had spending may have reflected been predicting five-per-cent consumer decisions to buy expansion. while sales taxes were dawn.

Shegresataageias

Later, Robert Andras, ap- pointed last Friday to head a cabinet council on economic development, said ihe growth rate this year will be below four per cent.

But he expressed op- timism for 1979, while adding a word of caution that forecasts are “always im- precise as hell.” Improved exports and more business investment should brighten the outlook next year, An- dras said.

Chretien has predicted ex- pansion next year of between four and 4.5 per cent despite an economic slowdown in the

EDITOR'S JOURNAL

By Greg Middleton

Do you have any favorite records, discs you

really like? If you do then the best advice is not to y them.

I had coffee the other day with a record distributor's sales manager. He said that if you really like a record, you shouldn’t play it because by playing it you wear it out. He toid me that records weren’t really made to be played much, After sixty or seventy times on the turntable the average record has lost its clarity.

Ina way, it makes sense. After all, when you play a record you are dragging a rock over it. Your stylus, the needle, is a jewel but it is still a stone and it wears down the fine variations in the grooves from which the music is reproduced.

That doesn’t mean you should sit in silence though. This fellow suggested that taping a record as soon as you buy it and then playing the tape would both preserve the recc:d and allow you to listen to the music. An ad<e¢ svantage is that you get a little better sound as the rerecording should take out a iew of the almost imperceptible flaws in the record.

There are distortions in your records ara North American recordings don’t hold a candie to the better European records as any real music buf will attest.

And what of the direct to disc records? Unless you have a good system, one that set you hack better than a grand, don’t waste your money.

You won't be able to hear the difference. lf you do have a good sound set up, then try direct to disc, but if you really want the best sound ther remember not to play the record. Direct to aisc gives you superior sound because it eliminates the initia] taping and rerecording. As the extra quality of the sound is there, it will also disap- pear as the record deteriorates through playing.

“My son Michel threw my copy of the budget proposals into. the fireplace — _ [didn’t even know he could read!”

“$tt:

THOMAS ATRILL THINKS

We should buy Canadiat ie

inducement to buy Iron-Curtain; quality is inferior, workmanship is reminiscent of our early days hand. manufacturing and | shudder to think about the availability of parts. Looking over the several sizes of

Did you know that we buy tractors from

Russia?

A few years ago, we imparted our first Russian tractors. They were slow to catch on and were baught mostly in the prairie provinces. They are now available at your

tocal dealer's establishment.

1 do not buy Communist-miade goods. have my reasons and | am firm in that decision, However, { am intrigued by this

evidence of increased trade with Iron Curtain countries. Why, for example, do we buy a product that is produced in abundance in Canada? Is the quality better; or the price? How do such goods compare with, say, Japanese or West German products? The (limited) Atrill. report follows:

Price seems to be the biggest inducement to buy Communist. Prices on all products, whether shirts or machines, are usually 30 per cent below prices of Canadaian-made

_ goods. | have been able to observe no other

tractors, | was amazed at the combination.,.,....| . of.old and new. Hand painting of parts, for *:..,.} example, and a modern diesel engine. Tires--- -

were accidentally painted with yellow and then repainted black, by hand. Castings were generally unfinished. Thick paint is used to cover imperfections. Sheet metal is

poorly fitted.

One of my brothers drove a large Russian tractor tor an Alberta farmer. He monkey: . wrenched and awaited parts and fought with it for several weeks, finally refusing to use it. By contrast, | have a Massey-Harris that is stil! in top running condition after 25

years of use.

Anyone who buys a Communist-made

product, deserves it.

Se Cab cece

1 flew.

_ QE CAPITALIST BASE

Americans losing control

WASHINGTON (CP) — Americans, long the world’s premier capitalists, are to feel thay are being bought out by foreigners.

It shows in disgruntled comments from farmers whose land is being purchased by Japanese interests, the concern by

some senators about Arab -

ownership in U.S. airlines

and federal government

resolve to crack down on foreign banking. Foreigners now control such products a5 Erylcreem, Pepsodent toothpaste, Libby’s beans ard SOS pads, German

investors own the highest -

building in Houston, Texas, and the Beak of Montreal is takin over most of the rvtail be .iaes of Banke. "cus: Gelling os wedle on eaaelly regis e Dilioms nf dalle. oct pouring into the CLiied oes is dif- Newsweek magaiins recently estimated that Canadians alone have put $450 billion into Florida real estate. A government estimate soys foreigners probably own leas than one per cent

cf U.S, farmland, but the

House agriculture committee feels they are buying up many of the

farms now changing hands. A government survey of

direct foreign investment in industry and securities shows foreign holdings

ped to $911 billion in 1977 from $175 billion five years earlier. Morgan Guaranty Trust Co. of New York, a leading broker helping the foreigners invest, says current investments from abroad are. about five times the rate in the 10008.

Last week, a Morgan Guaranty executive told the Senate subcommittee of citizens’ and shareholders’ righta that three Arab oil companies used the firm to put $2.2 billion into American

a

Abu Dhabi, the tiny, oil- rich Middle East nation, mow owns between one and 2.5 per cent of the common shares in four U.S. airlines. Because of their scattered ownership among thousands of

investors, a one- per-cent holding can

represent a significant ence,

(Dem. Ohio), subcommittee chairman, expressed concern over foreign holdings and said in- vestigations will con-

a

The Arabs are the most visible investura but aren't the leaders. Newaweek identifies the Dutch, operating throug) such giant multinationals as Royal Dutch-Shell, 23 the biggest. Then come

the British, the Canadians, the Germans, the Swiss, the French and the Japanese,

It shows in such products as Nestle of Switzerland, Seayrams of Canada and BASF of Germany, as well as through immense per- sonal holdings by in- dividuals, such aa ‘the baron Guy de Rothschild of France,

New York City, after losing corporate headquarters by the dozens in recent years, has now become the site for nearly 70 branches of foreign banks.

The devalued dollar, which makes it cheaper for foreigners to buy into the United States, is the most obvious reason for the influx of forelgu In- vestment. But potitical uncertainty in Europe and a feeling that the United States ig still the world's strongest economy, despite problems, sre potent influences.

Generally, fereign investors are welcomed by the U.S. government, although their activities are aboul fo come under closer scrutiny.

Through a waiver in -

iramigration lays, anyone with $40,000 to invest ean enter the caun-

Bui farmers are critical, As therr land +s

bought, they complain about everything from possible future enemy appropriation of food aupplies to escalating land prices that ‘hurt young farmers. .

A case in point Is Queen Anne's County, in Maryland, just outside Was on. About $6.2 million in forelgn money has poured in this year to buy the county's best wheat, soybean and cornfields.

In a county where even the parking meters are inted red, white and lue, people are uneasy.

“The land is disap pearing,’ says Robert Wilson, president of the Queen Anne’s Farm Bu- reau. “It’s creating 6 problem for younger farmers to ever be able to buy land.”

Concern like this led President Carter to signa bill this fall requiring disclosure of farm lwldings by toreign in- terests. If the proportion is significant, it could lead to the imposition of restraints by Congress.

In addition, Carter has signed an international banking act which will permit the government to supervise foreign banka— financiers for many for- eign interests—and set reserve requirements for all foreign bank branches operating in the United States.

Lott

OTTAWA OFFBEAT

BY RICHARD JACKSON

The Budget presented im the House of Commons on Nov, 16 contains very good news for ous area of nor-

thwestern B.C. . 4 Finance Minister, Jean

| Chretien has done an ex-

cellent job of balancing the need for stimulation of the economy — particularly in areas outside of “central 4 Canada” — with the equally +] pressing need to keep the lid “on inflationary pressures.

i The goal of the Budget is to fF cuntain cost increases in this

period following the removal of wage and price controls and to allow Canadians to take full advantage of .the A recent improvements in our international competitive position,

the regions.

There are a number of 3 Budget measures specifically designed to a promote economic diver-

B developed areas of our A country, and some of these have particular importance for Skeena. =. s., S Perhaps the single‘'most

important measure -for “our area is the allowing ‘of costs related to the development of new mines to be 100 percent tax deductible. This is up from the previous level of 30 percent, and should be a major incentive to the development of a number of mines in our area which are currently of a marginal nature.

Another important measure is the allowance of the costs of social assets and townsite facilities to be

| partigily tax deductible. My

informatich on this subject is only preliminary at this early date, but 1 am hopeful that {tams: such as satellite telecommunications facilities may be included in the category of ‘‘social assets’.

The mining incentives, along with other tax changes such as incentives for in- vestment in pollution control equipment, tax credits for expenditures on tran-

; sportation equipment, ,.and

Ae

e ingreage of. the .in- We tment lak. ore shiuld aid in our efforts to expand and diversify our northern B.C. economy.

. The Budget should mean an increase in economic

It is above alla Budget for,

sification into the lesser -

activity inourarea, andl am hopeful that other measures, such ss the ' special provisions for small businesses and assistance available through the Department of Regional Economic Expansion, will produce more locally based and locally controlled in- dustries. Such companies, particularly in secondary industries, create the jobs and give us the economic stability that encourage community development as weil.

One aspect of Mr. Chretien's speech, while not directly a part of the Budget, was the report he tabled comparing the tax systems af Canada and the United States. This study was conducted, in consultation with American officials, in response to recent reports about comparative tax rates in the two countries.

The strong conclusion is that the Canadian personal tax system compares moat favourably with that of the U.S. It also shows that our business taxes are fully competitive with their American counterparts.

To cite one statistic, the study shows that in Canada personal taxes equal 15.17 percent of personal income, whereas in the U.S. personal taxes equal 15.99 percent of personal income,

There are other Bdget measures of benefits to in- dividual taxpayers, such as the lower U.LC. premiums, a doubling of the employment expense ‘allowance to $500, and reduced prices for many consumer goods ‘(including cars, televisions and ap- pliances) through the reduction in the federal sales tax, There are also st which will be of specific interest to certain groups. These include the removal of the 10 percent excise tax on marine engines and small aircraft, as well as changes affecting some owners of Registered Retirement Savings Plans.

For further information on any of thé proposals con- tained. in the new federal Budget,"or to provide me with your comments, please ‘write to me care of the House of Commons, Ottawa, On- tario (K1A 0X2), No postage is required.

Air space battle a childish game

' SINGAPORE (Reuter) — thorities are not prepared to

A row over air traffic bet- ween Singapore and Malaysia has all the over- tones of a deep-seated family feud.

Many outsiders are baffled over the public display of mutual mistrust between the two countries: whose economic welfare and security have been closely linked since they ended their political union 13 years ago.

But Singapore and Malaysian officials say the trouble is only part of a hard bargaining process and that the two states will never allow the problem to mar their friendly relations.

The quarrel over revision of their air services agreement is the latest and the most serious row in recent years between the two

» countries that once were considered indivisible,

Although the civil avialion talks have reached an im- passe, officials here and in Kuala Lumpur are confident

. that it is only a question of time before the problem is settled,

’ . The néw. ations on the air pact, signed by Malaysia and Singapore when they dis- mantled their jolnt airline in 1972, began almost 30 months ago.

The sixth round of talks between the iwo countries, which naw operate separate national carriers, ended last month without agreement but they decided to meet again in January,

At one stage, Singapore is- sued an ultimaliuim to cut the number of Malaysian Airline Syateins (MAS) flights to the island republie starting Nov, 1, if a solution wor rot

reached. Malaysia threatened counter- measures.

Only a last-minute com- promise to leave things as they were until a final solution was found avoided an Immediate crisis.

Singapore seeks more flights to Malaysia as a

means of correcting the -

disparity in earnings of MAS and Singapore Airlines

““ER1A}, but the Malaysian au-

meet all its requests.

Malaysia wants to use a

widebodied, 250-seat airbus .on the MAS flights to and from Singapore—a point Which Singapore does not want to concede without reciprocal benefits.

Aviation sources estimate that the earnings gap this year could reach about $18 Taillion in favor of MAS.

Singapore expects to earn about $15 million, against MAS's $32 million.

“It is not feasible to expect Singapore to put itself at an- other commercial disad- vantage without any com- pensating advantages being given,” says the influential English-language Straits Times

“There should now be a fresh look at the whole spectrum of civil aviation relations between the two countries,”

Malaysian Transport

Minister Tan Sri Manickavasagam told parliament recently that Malaysia would be reasonable | in the negotiations. Singapore

team leader Sim Kee Boon also toned down his earlier Temarks and said that his country Is willing to accept Teality and allaw MAS to operate airbuses.

“Now we want to see in what other areas we can trade off, We can do a deal,'’. Sim says,

SIA earlier suffered a setback when a new London- Singapore Concorde service, operated jointly with British Airweys, had to be cancelled following Malaysta’s refusal io allow the aircraft to fly over its air space,

Malaysia cites en- vironmental reasons for its objection. But it is widely believed that Kuala Lumpur withheld permission for Concorde in an attempt to gain more flights into London for its natianal carrier. ;

Negotiations between British Airways ‘ and Malaysian authorities are ‘continuing.