“with-theschooner~S

If It’s Good For The Island The Guardian Is For It

VOL; LXXIX NO. 251

KOREAN AMBASSADOR RECEIVES MEDALLION:

His Excellency Sun Yup Paik, Ambassador of the Re- public of Korea to Canada, made a courtesy call Wednes- day to Acting-Premier Lorne Bonnell, minister of welfare and tourism, and was present- ed— with _a—_gold_ centennial

President Johnson-Visits U.S. Base North Of Saigon

By LEWIS GULICK CAM RANH: BAY (AP)

Authorized as Second Class Mall by the Post Ottice Deval, Ottawa and for payment

medallion. Afterwards, Gen. Paik had a meeting with Mr. Bonnell, Hon. George Fergu- son, minister ‘of public works and highways, - Hon. Elmer Blanchard, minister..of labor, Hon. Dan MacDonald, 5 ter of agriculture, and 2

ican fighting men in South Viet

am. He told them: “‘We in. America depend on

eee et 2 at

-in-chie forces, | you, on the young and ‘on the flew here in wartime secrecy|hrave, to stop aggression he- Wednesday and rubbed shoul-|fore it sweeps forward for then

ders with. the Cam Ranh Bay} it must be stopped by

GPtingest be the 330,000: Amer- sacrifice and a heavier cost.”

$5,000 Reward Is Offered -

ForFinding Missing Five

8T. JOHN'S, Nfld. (CP)—A: reward of $5,000 was offered

‘ Wednesday for discovery alive

of five persons who disappeared

andy Point off the Labrador coast earlier this month.

The reward was posted by the vessel's co-owner, Hyman Joch- elman. It was announced by Mr. Jochelman and Kevin A. Crock. well, brother of James Crock- well, the schooner’s captain.

With Capt. Crockwell aboard the Sandy. Point when she dis- appeared on a trip from Cart- wright, Labrador, to St. John’s, Nfld., were Lester O’Brien of Moncton, co-owner of the vessel and the Union Salvage Com- pany of St. John’s, ©. Mrs.. O’Brien, Ed Hollett of St. John's; and John Pike of Marys-

Wreckage from the schooner ‘was found near the Spotted Is-

lands, off southeastern Labra- dor, Oct, 16 but Mr.. Jochel- man said it did not include life- saving equipment or a- dory.

‘| with lusty cheers:

of in

postage cash. | | Sy 1

Fiscal C

‘wwendgeland

aoe

anne

Like The Dew’’

ee CANADAG: THURSDAY, OCTOBER 27, 1966.

OTTAWA DECLINES PULL TAB,

CAPITAL BUREAU:

OF THE GUARDIAN OTTAWA — Premier Alex Campbell confirmed Wednesday

. | that he lias held separate. meét-

ings with Prime Minister. Pear- gon and with Secretary of State

Campbell Given Promise Of Aid ‘To Confederation Centre Here

Judy LiaMarsh on financial as. jit for the Confederation + Memorial ~-Centre—in—Charlotte- town.

The -premier declined to go into any details Wednesday sire = he wanted. to

minister here

he goes to New Brunswick for a two-day visit. Gen. Paik was the Korean delegate to the United Nations armistice con,, ‘ference at Pad Padmunjom in the 1950:

Fighter planes and armed helicopters circled overhead for protection as Johnson, accomp- anied by State-Secretary Dean Rusk, arrived -a¥’ this relatively

By PAUL DUNN OTTAWA (CP) — The 9,000- member Letter Carriers’ Union 6f Canada Wednesday bitterly attacked the government's “17th-century attitude” towards

its -employees—and-said_nobody.

ean prevent carriers striking if

they feel they should.

Roger Decarie, union presi- dent, issued the statement on the eve of: a last-ditch meeting

“with -a—_cabinet committee = on |,

postal employees’ pay demaitids.

He said he wanted to clarify any misunderstanding that may have arisen from’ remarks he made Tuesday to the Senate- Commons committee on the public service. He told the com- mittee he woultl’ “tall to my.

secure seaside base of

Saigon. He spent two 2

awarding medals’ and againg autographs.

> “Men in battle dress; cima 4 ;

ing field packs and rifles, oth- ers. swathed in bandages. and plaster casts, greeted Johnson

Secrecy and. security . sur- rounded the 1,470-mile flight from Manila, . the Philippines, and ‘back. Four. F-4 Phantom

DOG MISSING T00

A dog which was aboard the Sandy oe has not been found and Mr. Jochelman feels that some of those missing may be on one of the many islands in the area.

His reward includes $1,000 for each of the five persons found alive or $100, for each body found.

The Sandy Point was‘ carry- ing a cargo, of scrap when she disappeared. ~ A memorial service. is to be held in Moncton Thursday for Mr. and Mrs. O’Brien.

Mr. O’Brien, a -scrap metal |dealer, had business interests in Charlottetown, Sydney ° and Halifax.

4ets-covered-the-approachrof- his) blue - and - silver jet transport. South Vietnamese were hban- ished from the base while he was present lest their numbers include Viet Cong guerrilla sym- pathizers. Live ammunition was withdrawn from many of the ri- fle - carrying troops on. the sprawling premises.

Not since the Second World War, and Franklin D. Roose- velt, has any U.S. president ventured into a war zone.

Johnson told the. troops:

“You know. what you are. fighting for, to give the (South) Vietnamese pedple a chance to build a kind of nation that they

want—free from terror, free iat intimidation, free from ear.””

Revenue Minister Questioned On Importation Of Cars Deal

OTTAWA (€P). Revenue Minister Berison said Wednes- day he-did not suggest to Volks-

_.wagen r..Studebaker that the ‘Te-per-cent duty ‘Saved on a’

cross --border transaction be passed on to the Canadian purchaser of the Volkswagen cars.

He was replying to a Com- mons question -by Alfred D Hales (PC ¢ Wellington South) whose original questioning turned up what he has called a

“scandalous and shocking deal.” . Under the Canada-U.S.’ auto

agreement, Studebaker of Can- ada bought 10,000 Volkswagens, imported them into Canada without paying the 17-per-cent duty and sold them back ‘to Volkswagen Canada: Ltd. Industry Minister Drury an- nounced Tuesday that the rev- enve department is conducting a “semi-judicial investigation” into the transaction. Volks. wagen obtained a letter from the revenue department on the legality of the transacion.

$2,000,000 LOSS |

T. C. Douglas, NDP leader, began the questioning Wednes- day by asking Mr. Benson to table the revenue department letter wrich, he said, approved the sale of 10,000 Volkswagens and resulted in the loss of $2,- nr $

ayt '

000,000 in taxes to the. federal treasury.

Mr. Benson said he has read the letter and saw no reason for not making it public.

However, he was seeking an opinion from his departmental officials whether publication of the letter would affect the confi- dential nature of correspond- ence, beween taxpayers and the revenue department,

GOES AHEAD WITH DEAL “The Jetter in. question was written by an official of the rev- enue department in reply to-one from Volkswagen. The company has said it had misgivings about the deal but went ahead with it with government approval. Mr. Douglas asked when the revenue department _ investiga- tion began. ‘ ga

INSIDE TODAY

Island news .............. 2 Summerside ....,........: 3 BRUMUES Cocca base ive tedey 3 Editorials ................ 4 Kings, Queens, City . 5 Women's ..........%. .. 6 Rural churches ..... vetev§ Finance, markets .-...... 10 WUE iN ec ciivevevevine: 15 Comics .......6.0005 19 Classified ° Mee eeeer ds 0, 21

Mr. “Benson: said~it ‘began «a

matter in the Commons.

baker asked whether the minis- ter had discussed with any -of- ficial of, Studebaker or Volks- wagen a general outline of the itransaction before the cars were imported last - year.

ASKS WHY DELAY

whether there was any discus- sion with any member of either ear company before or after the departmental investigation. be- gan, and why there had been such a long delay in so impor- tant a matter.

Mr.. Benson did not reply di- rectly. policing of the arrangements un- der the Canada-U.S. car treaty was a continuous process.

Raymond Langlois (Creditiste- Megantic) asked whether the loophole in the car treaty which had permitted the transaction now would. be closed so that there would be no repetition of the unpleasant situation.

Mr. Benson said Parliament in the early 1950s decided ‘that the letter of the Jaw must be

“number of months’ ago and | | before Mr. Hales had raised the

Opposition Leader Diefen-|:

“Emphatically, no,’’ Mr. Ben-|: | son replied.

Mr. Diefenbaker asked},

He said departmental |.

larger |-minutes~ mingling” with ‘ne} 3-EScape . troops, shaking hands, joking, a

Crash At Expo Site. MONTREAL (CP)—The pilot and two passengers escaped death Wednesday when the en- of a charter helicopter

filed at ‘00 fet and the. ma chine plummetted on_

rocks

hat the western tip of St. H

Island, site of the 1967 ‘Montreal world’s. fair. .

The conditions of all three— one of whom has escaped in three other air crashes—were later described by the hospitals to which they were taken. as sat- isfactory. The helicopter was a wreck

Wilson Southam, 19, of Mont- real, the pilot, suffered lacera- tions and facial injuries; _Hel- mut Englehart, 38, a Toronto film producer, also has lacera- tions, and Peter Reusch, 36, a cameraman from Toronto, was reported ‘to have a head wound, broken ribs, and possible -in- ternal injuries.

Southam is a son of J. Cargill Southam of ow a retired membet of the Southam pub-

A presentation was made last night to Robert Snazelle of Bunbury for his contribution through the years to the rural

decided by Parliament itself.

beautirication of this province, Here Mr. Snazelle (LEFT) re-

Letter Carriers Hit Government.

have more discussions with the prime minister and other pro-, vincial-premiers;Following-this; He expected to ‘have a moré complete statement.

But he did indicate that he to|was not cumpletely successful | in. convincing- the federal gov- | ernment to. pick up the tab- for | the entire deficit which runs at about $325,000 annually.

He intimated the federal *gov- ernment was prepared to meet part o. this cost but that P.E.1. would have’ to seek the balance elsewhere.

_ The premier said he wanted to withhold comment until Wed-

colleagues”. about MPs’ -re-. quests that any strike come after Christmas, not before. On Wednesday, he ‘said no MP will prevent m, postal strike . employees feel such action. MPs could &

Ordered To

OTTAWA (CP) — Governor- General Vanier has been or- dered to bed with influenza but

it_ isn’t. keeping him from_his duties, ‘

When. 150 delegates to the an- nual -meetingof the Vanier In- stitute of the, Family gather at Government. House tonight, he will address them from his bed- room. -

Electricians Wednesday hooked up a loudspeaker in the ballroom, wires leading to a mi- crophone in the Governor-Gen- eral’s bedroom.

Governor-General Vanier, 78, was ordered to bed earlier this week and had to cancel a Prince _Edward.Islandtour..

Stamp Vending Gets New Look

OTTAWA (CP)—The post of- fice has taken the work out of getting the stamps out of its vending machines. ~

That little handle patrons had to -pull out after. putting the quarter-in has been’ replaced in “a new, improved stamp vend- ing machine," the post office announced Wednesday.

Pop a coin in the new ma- chines and the stamps pop out,

The only physical. Tabor._in- volved in hoisting the. two bits:to the machine.

The post office plans to re- place the present machines

gradually

i

BEAUTIFICATION EFFORT RECOGNIZED

at which prizes and _ trophies were presented to winners of this year’s rural beautification contest. Mr. Snazelle had been

ceives a giit from Wendall MacKay, vice-president of the Prince Edward ‘Island Rural Beautification Society. The presentation at the Charlotte- town Hotel, was made at the. annual dinner of the nat,

Ee

nesday night, when he hopes to speak to each of the other pro- vincial premiers at a dinner given by Prime Minister~Pear- son at 24 Sussex Street. The in- oe is that he would hope to persuade the other provinces to make some contribution to the centre as they did for- the original capital cost.

But he pointed out that all the’ Provinces now had their own catienidewe, to consider

it not-be-easy_to

Suade then io make § cacutae’ tion to the operaion and main- tenance cost of the P.E.I.' Mem- orial.

“I approached the premier who first offered help to build the centre .but he wound up ask- ing_ me: for. money for his own

MR. VINEBERG

PC Students President ‘Visits Here

Mike Vineberg, president of the ‘Progressive Conservative Students Federation of. Canada, is visiting' Charlottetown as part of a nation-wide tour of univer- ‘sities and colleges. He is can- yassing the students for their opinions on major issues and

doing on behalf of the Progres- sive Conservative party,

He will be speaking at Prince of Wales-College -at-12.45 and. at- St. Dunstan’s’ University at 5 o'clock today. His topic is ‘‘The Role of Youth in Politics’.

A second year law student at McGill, in Montreal, Mr. Vine- berg has his BA and MA- in|:

said, refer-|Political Science—and. haa been ting-,-.- to — British Columbia’s:/president of. the orgatinatipn for W.A:C. Bennett. : aisont nine months.

Canada Navy Fri

OTTAWA (CP)—The defence “department is “doing--away—en- tirely with naval frigates, offi- cials said Wednesday.

One will be retained; but as & diving tender. The remaining six will be sent to the junkyard by next year. :

The announcement came only a week after reports that some of the Second World War frig- ates might be kept around next year for showing the flag in Ca- nadian ports»during centennial festivities, despite a manpower shortage in the navy.

Four of the frigates — New Glasgow, Antigonish,- Ste. Ther- ese and Sussexvale, all on the West Coast—will be transferred immediately to Crown Assets

Drops — gates

Beacon Hill on the West Coast

or summer.

CONVERT VICTORIAVILLE The Victoriaville, on the East Coast, will be converted to a diving tender to replace the present Granby and will be re- mamed Granby. The present Granby will be scrapped. — dunking of the frigates re- duces the navy to one aircraft ‘earrier, the Bonaventure, now undergoing year-long refit; 23 destroyers, three of them in re- serve; three submarines; one supply ship, the Cape Scott. All these ships oa de- stroyres and one submarifie are based on the East Coast..

am

Nor MORE TEN CENTS.

.| from. Ottawa Wednesday night,

:| of Prince Edward Island has re-

trying to see what they are |The

will-be-serapped-by-next-spring|-posed._.

change.

WEATHER

_A ie clouds; winds light. Low-high 32 and 50. Friday: sunny, little temperature

X 22 PAGES |

2

epore

acta Money — Being Sought |

The Province of Prince Ed- ward Island, under the newly- proposed tax-sharing agreements with Ottawa, will receive un- conditional grants totalling $15,- 700,000. This represents an in- crease of $4,600,000 in uncondi- tional-grants-to-the_province. In addition the federal gov- ernment in its education pack- age has allocated an additional sum of $2,800,900. for construc- tion of vocational training ~ cen- tres..

Ina report ' to*this newspaper

Premier Campbell stated that the federal government has re- mained firm in support of the fiscal policies announced to the provinces at the September con-

mittee and; with the exception sisted demands for additional concessions. *

ARE INCOURAGED “We are encouraged,” the

our strong representations to the tax structure committee, the prime minister and the minister of finance have been recognized and that our province will bene- fit substantially by the increase. increasing equal-

ization and. aids to

ference of the tax-sharing com- | Progra

ment in carrying out its Present _ programs.”

The premier pointed out that negotiations are continuing with the object of obtaining addition- al federal revenues for pravin- cial projetts.

The_premier_will meet today with the prime minister and the other provincial premiers for. further discussions with respect to matters raised at the tax con-

“VOCATIONAL EDUCATION — “In particular [ am in agree- ment with other premiers in

eral government to withdraw financial support for vocational_. through shared-cost

bell. “Unless the ernment can be per:

continue its support of vocations al training as in the past the province will have to ‘assume this burden which amounts to approximately $500,000 annual-

premier said, “‘by the fact that | ly.”

On Wednesday Premier Camp bell and Provincial Treasurer T. E.:Hickey met with Premier. |Robichaud of New Brunswick and the federal minister of fin- ance concerning collection of sales taxes in connection with the causeway to Prince Edyard _

will | Island and an-

education to the province er = ——- oe

= 4.OF THE:

OTFAWA — Prince Edward Island stands to gain about -$3% million from the latest federal- provincial tax sharing and ad- justment grant formula Bg

nounced here Wednesday by Fin- ance Minister Mitchell Sharp. Premier Alex Campbell said that the additional money ee that the Island’s finantial ture has bpateesd considera iv although he intimated that P.E.I. was not completely sat- isfied with the final figures pro-

nder_ "the old formula, the Island stood to receive $10.6 million. But the special adjust- ment announced by Mr: Sharp provides that P.E.I. will receive not less than oe Paper! over the old figure million.

The Island’s stand on tax sharing has been detailed in a brief which Premier Campbell has filed with the conference although it will not be read at

*“ CAPITAL “BUREAU

‘announcement_on this matter will be made shortly.

ntry Into More Programs — _Foreseen By Mr. Campbell

ference on the Island's — possibly. Thursday ad's peti ‘\

nop ih meen foe a

taken with meeting ine ditional. costs of the

boost in the old age pension a

for other committed f the Premier said. when’ the federal invermiods oa mai ‘the cohen aby $90 a month raise

to $105, then this will release some of the money for other things.”

Without making a firm: com- mitment, he said it would make -

the medicare pnt by the target. date of July 1, 1

“It will also “eae us to enter into more pi cost-sharing. one s,” Premier Comoned pate “We -will.be making at early approach to. the the Atlantic. sal raig al Board | for ne posals. to improve our highw. and to make heavy industrial

the meetings. Instead, he plans to make a statement to the con-

Corp. for disposal.

The New Waterford on the East Coast will be scrapped be- fore the end = this year. The

Hydrogen

Rocket

Succeeds

CAPE. KENNEDY, Fla. (AP).. -ak~—-powerful--Atlas..~.Centaur. rocket shattered a long-time scientific jinx Wednesday and. handed the United States a new muscle to toss heavy payloads ‘to the moon and planets.

The booster achiieved the

} country’s first double ignition’ of }| high-energy, hydrogen - fuelled engines

in space to open a scheduled ‘twin launching here with a smashing success.

| PARKS IN ORBIT

The Atlas-Centaur., blasted off at 7:12 a.m. After burrliity’ the first time, Centaur's twin hydro- gen-fuelled engines shut down to park the vehicle in a 100- mile-high orbit.

There, the rocket coasted for

| 24 ‘minutes before restarting to

send a dummy Surveyor space- craft winging toward a spot in space 226,000 miles away, which —for test purposes—represented the moon.

The feat proved U.S. ‘scien- tists now can ‘manage super- cold hydrogen fuel, which must be kept at 423 degrees below zero to remain liquid but devel- ops 40 per cent more power than chemical fuels now in use. Problems taming the fuel de-

superintendent of Bunbury Nurseries until he retired more than vom ago.

layed Centaur’s development about three

By DENNIS ORCHARD OTTAWA (CP)—The oo government will have in- crease taxes to pay for a $300,- 000,000-plus annual jump in its equalization and edugation pay- ments to the. provinces, Finance

nesday. His warning came _ after pro- vincial premiers had been of-

Minister Sharp predicted Wed-|

power available for prospective industrial sites.”

‘Educaton Aid Sweetened Means Tax Increase

been replaced by one man, the. minister of finance, Mr. Sharp.”

He said it was unthinkable that Mr. Sharp would not yiel@ to a unanimous stand of the provinces, who demand and need a greater share of existing

ment. The Quebec premier released the text .of a statement to. the’

fered sweetened proposals by Prime Minister Pearson mid- way through the federal-provin- cial fiscal conference.

Mr. Pearson brought the com- mitment for . increased federal education aid ‘next year to $137,-

phase-out assistance during the federal withdrawal from shared-cost programs for tech- nical and vocational school con- struction _

On top ofthat figure is at least $139,000,000_ representing the increase in equalization pay- ments to the provinces under tax-sharing proposals. Ma Other expenditures and révi- sions in the estimates would take the;over-all growth in de- imand on federal resources to more than $300,000,000,. federal officials said.

NO DECISION YET This would mean a_ seven- point increase in personal in- come taxes if the entire burden was assumed by this tax. Of- ficials said’ there has been no decision on where an. increase would fall. i Mr. Sharp made his statement as the two levels of government entered tax negotiations at the conference, which resumes to- day at 10 a.m.

Premier Johnson of Quebec charged at a press conference after the first session of tax

| 000,000 "with “an offer to’ double)"

Continued on page 3 col. 3

Raging Fire Takes Carrier From Action in

" SAIGON (AP)—A raging fire that broke out in a locker con taining night illumination flares swept through five decks of the U.S. aircraft carrier Oriskany Wednesday. killing 43 men and putting the warship out of ac- tion as a floating base for wir strikes against North Viet Nam, The sfire started about 7:45 a.m:_ shortly before President Johnsin._visited American troops at ‘the big U.S, Cam Ranh™Bay, South Ma Nam, 180 ni eee of Sai-

gon.

Sixteen other men’ “were in- jured seriously in thé “blaze. Two Ss were and four A-4E Skyhawk fighter-bombers were The carrier was

talks that “the BNA Act has’

opposing the intention of the fed- .

A

taxes*-than--the federal govertin

reg:

base in -