we

1

yah ee ope ncn

“Wits'Good For The lend.

The Guardian Is For lt

VOL. one NO. 252 -

in cash.

Authorized as Reve Ctass ‘Mail by the Post Office EES

Ottawa and for payment

HAVE LITTLE SUCCESS

Premiers Keep Heat On Sharp |

~ For Bigger Slice Of Tax Pie.

By DENNIS ORCHARD

JTTAWA (CP) — The, prov- fnces made a final, strenuous tstatement of their claims on fed- era' money Thursday—and the cabinet went into a_ late-night session-to deliver a judgment.

The verdict was to be laid to- day before the federal-provincial fiscal confefence in the final hours of its week- long discus- siens.

Finance Minister Sharp told a

ews conference Thursday night

that he did not give an inch. on “the federal proposals for .tax- sharing announced last month.

But, he. added. that no new federal decisions could have | been made Thursday. ~

All provincial premiers were asking Ottawa to turn over con- siderable portions of its tax re- sources to them.

Among. Thursday's demands were Manitoba Premier Roblin's request for transfer of more than $1,000,000,000 a year. to the provinces and Quebec Premier Johnson's bid for $150,000,000 a

. year to the provinces, accelerat-

ing a $1,000,000,000 a year by 1971-72

' HIT SNAG

Mr. Sharp also said that he and the premiers hit a snag m trying to decide how to make public a series of secret projec- tions on the course of federa:, provincial and municipal budg- eting for the next five years.

The provinces. claim the esti- mates back their case that Ot- tawa must turn over some of its revenués to them.

“The more that we have. dis-

“cussed the implications the less

enthusiastic we have been about publishing—them,"*=- Mr.-—Sharp-

said. The ‘finance minister also

iof Charges Studebaker =a Killing In Car Dez

OTTAWA (CP) — Ondsition Leader: Diefenbaker said Thurs- day in the Commons that Ca- nadian Studebaker made @ “killing” in a deal with Volks- wagen at the expense of Cana- dian taxpayers. ;

He said it was ‘‘wrong and unjustifiable’ that Studebaker. was permitted by the govern- ment to import 10,000 Volks-

hinted that Premier Johnson has had stronger words to say this week in ptiblic than behind closed conference doors.

BLASTS SHARP

Mr. Johnson -told reporters Mr. Sharp was substituting him- self for the BNA Act and even acting as a tribunal to-interpret the act.

“We appear to be getting along very well in the confer- ence.’*-Mr.-Sharp-said:—‘‘There- has been no. suggestion he is not satisfied with My chairman- ship in the conference.”

Mr. Sharp said no previous’ \federal finance minister had ex- ercised ‘‘such scrupulous regard for the British North America Act and I think Mr. Johnson knows that.” | In turn, he said, Mr. Johnson had upheld the interests of his province admirably ‘‘and I have né-dissatisfaction-with-Mr..John- son as the premier of Quebec.”

The finance minister repeated* his promise that’ higher taxes are the prospect for the supple- mentary federal budget — he called it his minibudget—ex- pected in November.

But it was ‘‘a bit. of fiction” to put a specific-pereentage on |" the increase as many reporters’: did Wednesday. About $600,000,- 000 in new federal. expenditures appear certain in 1967-68.

NOT ALL FROM: NEW TAXES The increased cost of a new equalization scheme, of higher education grants to the prov- inces, and of supplementary old age pensions, would have to be |. met “by increases blidphtean rg But some of the cost would be. met.-from: existing tax —r: which ~ would provide gen yields nexb year than this ye:

wagen care. lasies and sell | them back to hp tae <\% sale at the fall price in country. ©

The. transaction had lost jobs for Canadians in Canada.

Mr. Diefenbaker made ~ his ‘Commons remarks after Rev- enue Minister Benson said Stu- debaker was entitled under terms of the Canada-U.S. auto-

Russia, Allies Gather

N. Viet Nam War Chest

WARSAW «AP) — The Soviet Union’ and ‘its allies have re- luctantly but resolutely ‘pledged approximately $1,000,000,000 in goods and.cash to North Viet Nam, informed Polish sources said Thursday. Z ‘They reported the war chest was collected at the recent So- viet-bloc conference in Moscow and written pledges have been given to @ representative of Ho Chi Minh’s Hanoi government. Official confirmation could not be obtained here. :

The idea of sending volunteers to North Viet Nam has been abandoned, the sources said, be- cause “the Vietnamese don’t want a foreign legion. European troops would be worthless." They wanted goods and cash for munitions,~ medl- ¢ine and other supplies.

Moscow's pledge was stated as $800,000,000 and the total of the other East European contri- bution was about $200,000,000.

Asked whether this is for an entire year or for some other period of time, the Polish source replied: “This is for right now.

God knows what will be. needed four months from now.’ WEARY OF WAR :

Polish informants said the So- viet. bloc is weary of the Viet- namese war and its ~growing cost and generally feels it would be desirable to persuade Hanoi to come to.the conference table.

There is hope here that mas- sive aid from the Moscow- aligned countries may in’ time persuade Ho to listen to advice while asguring him that he would not haye to negotiate from weakness.

Much of the amount~ pledged will have to be in U.S. dollars,

.| West German marks or other

hard currency, informants said.

“This is so they (Hanoi) can buy in Hong Kong, Japan, Burma and West Germany,” one Polish source said. ‘‘Many things they can get shipped eas- ier from those countries than from us.”

This was a vague reference to’ claims of Chinese interfer- ence with Soviet-bloc supplies hipped by land.”

cyclist From Quebec City hae Plan To Circle World

HALIFAX (CP)-——A _ 27-year- old bicyclist from Quebee City is making plans to follow his cross-Canada jaunt with a call on Prime Minister Pearson and perhaps even an audience with Queen Elizabeth. ,

Claude Dube, who left his bartending job in: Vancouver to start pedalling across the coun- try Sept. 1, 1965, said in’ an in- terview. Thursday he. will leave by train for Ottawa ‘‘in five or six days’ to seek an interview with the prime minister, whom he hopes will give him a Lesdicd for the Queen,

Dube arrived in Halifax ‘Tues- day from St. John’s, . Nfld., where spe completed his tour of all 10 provinces. .He left Van- couver with a bicycle, a 200- pound trailer and $5 in his pocket.

He says he's ready te con-

fr

tinue. his plan. of circling the globe on his bicycle. After leav- ing Ottawa, hopefully with tne official letter from Mr. Pearson, Dub# intends to pack his equip- ment on a train for Montreal and take a ship to London.

His ultimate aim is to travel around the world in 60 months and thinks a good: way to start is by seeing the Queen if pos- sible.

In the meantime, Dube, who says “the whole world is my country,’”’ is awaiting the return of Nova Scotia Premier Robert Stanfield from a federal-provin- cial conference in Ottawa, He wants to add a note from Mr. Stanfield to his collection of let- ters from seven Canadian pre- miers.

(Mr. Dube was in, Charlotte- town for a brief visit several weeks ago.)

of postage

Mr. Sharp said officials would work overnight to try to put the confidential revenue and ex- penditure forecasts into’ a form that could be published.

ONTARIO; AND . —NL145

Ontario and Manitoba led a campaign to release the projec- tions. The provinces say the fig- ures, back their demands for more of the tax money now be- ing used by Ottawa, by showing future surpluses on federal ‘op- erations and growing deficits in combined -provincial and bs cipal budgets.

A conference source sites Touredigy's meeting lapsed into near - harmhonious chat during

to stabilize provincial revenues.

This scheme guarantees pro- vineial_revenues against any major decline in times of re- cession,»

‘province {n any year drop. be- low 95. per cent of. the revenues in a previous year, Ottawa will make up the difference to the 95-per-cent mark.

+ . para 9|:

diseussion of Ottawa’s formula |:

If the general revenues of any :

C4

uss t

- v WN, et

aoe s land

South A

ver

S-

Like “The Dew”

dala OCTOBER 28, 1966.

= hal

me

\frica E

.Gov.-General ‘Enters Hospital

OTTAWA (CP) — Governor- General Vanier, .78, was admit- ted to hospital Thursday for—a general medical check-up.

He was ordered to bed Tues-. day with influenza.

The check * up was recom mended by his doctor, Govern ment House said.

. Goveriment House added that

| the check-up is connected with | ao influenza, but. said there is~ Jino cause for. alarm.

Fire Destroys City Of Quibdo

BOGOTA (AP)=The govern- ment announced Thursday that ‘the-elty of Quibdo in: northwest Colombia has been destroyed by one of the worst fires in the country’s history, Quibdo, ‘a city of -40,000, is about . 200 miles. northwest. of this capital.

San Carlos Palace,. the. gov- ernment house, estimated : that.

== 120,000 persons.-were -left.-home-.

less and calculated the losses | out Teach $9,000,000. :

3b

agreement to Konig ‘the Volks- s free of the 17-per-cent

The Opposition leader said the Canadian consumer. did not hen- efit from the deal.

“This thing is wrong and un- justifiable in every sense of the world. Jobs were ‘lost to Cana- dians. It! permits the Studeba- ker company to make a large killing at the expense of the Ca- nadian taxpayer. It denies jobs to Canadians, and the minister has the colossal effrontery to say it is good for Canada.”

The Opposition leader said Mr. Benson had. the “colossal effrontery’’ to say that the deal had been good for Canada. .

Tt was the third straight day that the opposition had attacked {the transaction, brought to light by Alfred D. Hales, Conserva- tive MP for Wellington South and chairman of the Commons public accounts committee.

SAYS IMPORT ALLOWED

Mr. Benson tabled the Dec. 4, 1964, letter from his department to Studebaker Canada Ltd.— copy to Volkswagen Canada Ltd. —saying that Studebaker was entitled to import the cars duty- free.

Under the auto pact, a Cana- dian car manufacturer is en- titled to import foreign cars duty-free by the same amount by which it increases production in Canada. oe

Mr. Benson saiti Studebaker claimed to have increased its

(Continued on page- 3 col. 1)

Memorial Proposed

OTTAWA (CP) — Opposition Leader Diefenbaker suggested a the Commons Thursday that

Ny build a school in Aber-

Wales, as a memorial to veiicnt of the disastrous slide there.

This would be a fitting recog- nition of the contribution of Welshmen in Canada_ over the years, he said.

Prime Minister Pearson called the proposal ‘‘very im- aginative and~ appealing” and said he will keep it in mind.

The prime minister told Mr. Diefenbaker Wednesday that the government is considering a contribution to a -fund, for sur- vivors of the disaster.

INSIDE TODAY

Island mews .....++++ silee Summerside .,.....+.+.505 8 Deaths: sveocoedeeeqe HATS Editorials ..;........:.6..- 4 Kirigs, Queens, City. 028i Women’s ......... sees 6 SOO sit eitte oes 2 Finance, markets ........ 13 COMES. is iiie ee ete. 14 Classified? ........ 15;16, 17

|\Viet Nam Visit

BERLIN (AP) — American

‘levangelist. Billy Graham an-

nounced Thursday he plans to, go to Viet Nam in the near future and ‘‘preach the gospel’ to American soldiers there.

“T'd go to Hanoi also,” he said, “but I am not sure that an American would be welcome

Graham Planning|

CARL BURKE, (CENTRE LEFT) vice - president - of Industrial Enterprises and E.. Bjerre-Petersen, president - of - Abegweit Maritime Industries

Seaweed Processing Plant =

seal the formal negotiations to establish a $1,500,000 seaweed processing complex in the. province with a handshake. Looking on are (LEFT) W.A.

Rix, Jr.,:of the Industrial En- _terprises board of directors, and Archie MacArthur, vice- president and general mana- ger of Abegweit Maritime In- dustries,

To Be Built In-Parkdale—

Rg A: _ Seales president ewe : Industrial

‘completely intergrated seaweed, processing operation in the prov- ince. The processing division will be built on a site in Park- dale, while drying plants will be a up im Kings and Prince Coun-

Total capital investment rep- resented in the vicinity of $1,- 500,000. Under the agreemient Industtial Enterprises will as- sist in ‘the building and equip-

in North Viet Nam.”

ing of the plants, while Abe-

Conservatives

OTTAWA (CP)—Removal of: the Canadian coat of arms from* newspaper advertisements of, the public works _ department: was done by the former Con-° servative government, Works Minister MclIlraith told the Commons Thursday. _ Liberal MPs pounded their desks and roared with glee. The minister, replying to a question posed Wednesday by John. Loney. (PC—Bruce), said he had, found that instructions to newspapers deleting the coat of arms from ads for contract tenders went out in. 1959.

Opposition leader Diefen- baker demanded more: evi-

The formation and business’ ‘dinner ‘meeting of the 1914-15 (Star) Veterans Association was held last night at the

Charlottetown Legion. The: as- sociationsconsists of all Island- ers who were the first to serve’

Said Guilty

Of Removing Coat.Of Arms

dence, He said Mr. Mcliraith had made previous statements

like this ‘‘in keeping with the.

kind of chiseHing ment does.’

Mr. Mcliraith said the Com servative leader had retfétred to the coat of arms issue during a broadcast Wednesday night and said the move was taken in the last few days.

After: Mr.. Diefenbaker’ re- mark about more evidence the minister rose to protest but the exchange was halted by Spea- ker Lucien’ Lamoureux, who said. there should not be de-

this govern-

_avitinpe--Inw ndustries wit be ‘elipenaitte for a

.fipin: of ‘the. capital inveuiei and the working capifal required to voperate the plants.

FIRST OF: TYPE

Cofistruction on the Parkdale site will begin in the spring of 1967, with production scheduled #o;begin a year later. It will be the first completely integrated plant of its type in Canada.

The plant will have an initial capacity of processing about 4,000,000 pounds of dry moss or seaweed annually. It will em- ploy about 40 people, most of whom will be hired locally, An- nual payroll is expected: to top | ee In. addition, the plan’ will handle the output of liter-

ally hundreds of Se ae who scrape the moss-li seaweed

from the ocean bed.

1 The processing plant ‘will ex- tract concentrated lactogel and sydrogél from the raw product, reducing it to a fine grayish- white powder for export mar- kets. The powder is used as a stabilizing and emuslifying agen€ | - in a wide variely<@ fod ee- ducts.

SEEK NEW 8

Abegweit baat ioyp! Industries is a wholly owned subsidiary of LITEX, a Danish firm which is now the lar; producer of lac- togel and ‘hydrogel: in Europe. |’

The company was a. pioneer in the field, being established in 1938 by its present head E.

bates on a auestion.

‘in Franee, Many divisions of the First World War fighting forces were represented’at the meeting which dealt with var-

ious business matters and the election of officers. for the coming year. From the left

Bjerre-Petersen, a chemical en- gineer turned industrialist.

1914-15 VETERANS ASSOCIATION FORMED

are (SEATED) C.W. MacAr- thur, president of the organiz-

ation; Bruce Wonnacott, sec-

- treasurer; (STAND- ING) W.L: Delaney; C.C. Toombs; and J.B. Murley, all on the executive committee of the organization. .

mo ae i

TEX ..now.. markets produc’

F foe its factory in nes”

in over fift “twe-countries around. the The company is also active in research to find new uses for its products in a). rapidly expanding area.of food preparation.

Commenting on the success- ful conclusion of negotiations, Carl Burke, vice-president of Industrial . E s, said, “This is a significant forward step in the efforts” of Industrial

to—_locate soundly

“In = this is the first in- dustry of a manufacturing na- ture that © in have been able to locate here. It is. important to

Costinned on page $ col. 5)

Premier Welcomes New Plant

Premier Alex ore — mented by phone jast night Ottawa, on the announ nual that a seaweed.processing plant and two drying piants will be es- tablished in Prince Edward Is- land.

He said: ‘‘The government of Prince Edward Island welcomes

the province will now be in a po- sition to move into the industrial treatment of seaweed. We wel- come this development particu- arly in view of the fact that the new industry will locate facilities and provide jobs in two areas where seaweed is in excellent

supply — namely East Kings, and West Prince.

“The government is informed

‘| that Mr. Petersen and his com-

pany have had mucli éxperience

tion’ of technical knowhow and a sizeable, cash investment which

' Mr. Petersen and his associates

bring to the enterprise shou Id ensure its success.

“Through Industrial Enter- prises the government offers every support and encourage- ment.”

; ao 6 6@ Minister Pleased

Hon. Cecil Miller, minister of. fisheries, commented:

“Seaweed and moss harvest- ing has in the past been at best a seasonal operation. [ am pleased that our fishermen will have the benefit of an extended season:of operation and the as- surance of a favorable home market for this-rich harvest. of the sea.-

“We are pleased to- Save the assurance of Mr. Petersen, that

| wherever possible. the adminis-

tration_of: this enterprise will be conducted by Islanders. This will’ no doubt involve recruit-

ment, not,only from our univer- sities, but from our ‘technical training courses as well.”

4

| responsibility ‘of the United Na-

“lover the territory.

-|}could not be expected to agree

the announcement of P.E.I. , thaty—

in this business. The combina-"

ay ke

ae | TEN CENTS

Assembly pro- claimed Thursday night the ter- mination of South Africa’s man- date over South-West Africa.

It declared tHat _ henceforth the giant territory “is a direcf

tions.””

Culminating a long and ° bit- ter debate, the 121-nation as- sembly approved by a vote of

General Assembly. Makes Proclamation

wafe “UNITED -NATIONS _ (AP). - a ‘The General

Scattered showers; southwest winds 20,

becoming northwest 15. Low-high 35 and 55. Saturday: cloudy.

18 PAGES

A

ica Mandate

2 sett

widite

sibility, the -resolution _ estab- lished a ‘14nation special

mittee to~recommend pra

means for UN administration. of the territory so that it could be placed on the road to independ- ence. t It set a deadline of April, 1967, for receiving the commit tee’s report, which would be considered at a special anon: bly_ session. ;

14 to 2 with three abstentions a resolution setting out the most drastic UN action ever contem- plated in an effort to compel South Africa to give up its rule

Hilgard Muller, South Africa’s foreign minister, warned that his country regarded the resolu- tion as. illegal and, therefore,

to. its demands. He warned also of consequ s that could arise from what he soaeribag as “reckless action.” The U.S. and the Soviet Un- ion voted for the resolution. France and Britain were among those who abstained. The United States voted yes despite rejection of arduous ef- forts’ by. U.S. Ambassador Ar- thur Goldberg to persuade the Asian-African countries to ac- amendments which he said

would: “‘harmonize ‘the views: of the assembly.”

Negative votes were cast by South Africa and Portugal. =The-tesolution_.reflected.. bit- ‘| terness among the African na- tions against South . Africa’s racial segregation policies and their-alleged: application 318,000-square-mile ne “it took. overin 1920... under. League ‘of Nations maidate.

In addition to declaring that “the mandate was terminated

Chatharn

Transfer Denied — SAINT JOHN, N.B. (CP) ~~

Group Capt. William Lee, spe- cial assistant to the defence misi- igter, said Thursday recent re- ports of consideration being. gl- ven to move the RCAF station

Gagetown, N.B., are not. ‘true. Group Capt. Lee said if the rumored move were to take

struct an airfield at Base caake town and give up costly facilities at Chatham. .

“He said ifthe reports had been: given consideration any- where, it has. not reached the ministerial level. Group. Capt, Lee said the fence department is ercited 1 ia a giant program to reduce costs to the taxpayer, with. com- -ealidation ot alr. hemes set @..

oe.

1

and. the territorya UN respon-

Johnson

BANGKOK (AP)—In a chal- lenge to North Viet Nam, Pres- ident Johnson says the United States and its allies in South Viet Nam have built a military shield ‘‘strong enough to pre- vent the aggressor from sue- ceeding.”

Until North Viet Nam with- draws its forces, ‘‘we must con- tinue to resist’ the aggression that threatens South Viet Nam,” he’ said -in-a report to the American people.

“We do.so because we believe that the Communists will unbolt the door to peace only when they ave_convinced their mili- tary campaign cannot succeed.”

The speech was recorded in Manila Thursday and released as Johnson spent the day relax- ing at the _Tesort Village of

Makes

Report To US.

Bang Saen in Thailand after ® days on his Far-East tour, VISITS BANGKOK fe Ps ’ Today he goes by. helicopter 68 miles northwest sicmed where he will be wel , King Bhumibol and Queen kit. 3 The queen was’ vepirtiih Thursday to be suffering frorsi, a cold, but is expected to main- tain her schedule in rece! and entertaining President Mrs. Johnson on their two-day

visit. Johnson_also will have an portunity to see came Oe te aT: - 000 U.S. U.S. soldiers based ig Thailand, although he is née scheduled to visit any of five .air bases from American pilots fly to | targets in North Viet Nam.

FIRST FOR PEKING

To Deliver

PEKING (Reuters)..— -China announced today that it deto- nated a nuclear device carried by a guided missile Thursday. The nuclear explosion, an- nounced by the official New. China news agency, was ‘China’s fourth.

The agency said the missile flew normally and...its nuclear warhead acctrately -hit’ its .tar- get at a fixed distance, resulting in,a nuclear explosion...

e announcement said’ the test was conducted over Chi- nese territory, but did not pin- point it nor give any other. de- tails

has disclosed that it has a guided-missile delivery system for its nuclear weapons.

United States scientists have forecast China will not have a missile system capable of reaching North America until a4 at the earliest.

S. Defence Secretary Rob- ert McNamara predicted in March that China would have a nuclear strike capability of up to 700 miles within the next two or three years..

MOVING AHEAD FAST

The announcement by the

New Chiria agency said: “This

China Uses Rocket

4

. t

A-Bomb

successful test marks the. facet that Chiria’s science, tet and defence capabilities are ad.’ vancing at even greater speed.”, It repeated China’s previous: assurances that ‘‘the condiicting. of necessaty and limited nus clear tests ald the development. of nuclear weapons by China: are entirely for the purpose defence—with the ultimate am of déstroying nuclear weapons.” ‘We, sdlemnly declare ( again that at no time and no circumstances will China <

ons.

will continue to carry on for.

an unswerving struggle’.

stroying’ nuclear weaons.”

China’s first nuclear exp took place Oct. 16, second May 14, 1965, third, containing thermon material, May 9 this year.

The agency said of | day’s blast: “It is another 1 important achievement scos by the Chinese people in

fence and safeguarding the curity of their country” Beace of the ve

in Base Chatham, N.B., to Base -

the noble aim of comple’ . prohibiting ard thoroughly #)

strengthening their national de

oe

the first to use. nuclear weap. if

“As in the past, the Chinese! ;

This was the first time China|... .