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iadar Quits As Premier, Retains Key Pgrty Post

BUDAPEST (Reuters) — Janos hdar, Hungarian premier since miss-tan tanks crushed the 1956 me-volt, handed in his resignation ’ parliament Monday while re- Hiring his key post as Commu- nist-part! chief.

lie proposed first deputy prem- hr Ferenc Muennich to succeed him as premier. The Hungarian news agency said Monday night parliament approved the change.

Foreign observ rs here said In switch indicated no change in the policy of the present regime, which has steered the country se- curely back into the Communist fold from the turmoil of the lip-

Expects Election Date This Week

BRANDON,‘Man. (CP)—-Liberal leader Lester B. Pearson said Monday he will be “very sur- prised" if the Conservative gov- ernment does not announce an eledioadate this week.

He said in View of recent de- velopments at_0ttawa and state- ments made in Winnipeg by Prime Minister Diefen-baker there Is little doubt “we'll get the,elec- lion date cleared up this week." ‘ He spoke in an interview aboard a train from Winnipeg to Brandon. where he will make a round of appearances.

Mr. Pearson said that “as a party” the Liberals are ready for an election whether it be now. during the spring, summer or

. Castonguay

Critically Ill

0'l'l‘AWA (CP)—Jules Gaston- llfl. Canada's chief lectoral of- leer for 21 years, was in critical

tradition in hospital Monday, un-

Conscious since he suffered a but attack Jan. 21.

Mr. Castonguay 75 - year - old

fllller of Canada’s present chief

"federal officer Nelson Caston- 01181. luffered the attack at his here where he has resided

one his retirement in 1948.

wife, the former Florence _VIlois of Vaudreuil, Que., died list New Year’s_ Eve.

‘Revolt In Venezuela _ Stamped Out

VCARACAS, Venezuela (AP)- enezuela’s revolutionary junta “d8y_apparently stamped out ‘ll! serious threat of a counter- :"l_°1t by supporters of ex-dicta- cos Perez Jiminez.

Junta sources said peace has

restored to 95 per cent of

_ _o1l-rich Latin republic. Perez “mile! supporters, who had ken up into small bands of

tmchllle - gunners, were being-

Vllled out.

Reports from Venezuelan cities‘

‘M towns told of raids by civil- M Vlgllantes and junta author- oti on headquarters and hide- "5 Of Perez Jiminez' secret po- °°_- Scores of former police and .n°d1P_lnformers were rounded up W Jailed. Dozens were killed or !°°“11ded attempting to flee. One "“§l‘_Doltice chief killed himself. Jun 11 tightened its guards Eilgllind all foreign embassies, par- ereaflbf those where ministers of illmlnez have taken refuge.

onlfiime Will T9": P. M. Says

,,,2'r’TAWA (CP) _ Prime illn- Wil

u

when asked l\l0ll(la_\' in Inmons by Rev. Dan Mc- ment I-Fort William) to com- thatP°n_ published speculation

. arhame-nt's current session ‘N Wednesday.

Ivor (

Diefenbaker said “only time’

Aflfiflflj II DQCODGMI Chg Man by “I. pin-ll ‘Elli. 0I.t|w;

OFFICERS OF the Agricul- tural Council consisting of mem- bers of the_technical staffs of the Provincial and Federal De- Dartments, of Agriculture here Lare (left to right) Gordon C. Warren. past president; H. L.

The _11th annual Dominion- Provmclal agricultural confer- ence opened here at Birch Court yesterday with the president, F. M. Cannon, presiding.

Members were complimented on their preparation of mimeo- graphed material for study by conference members.

New members and those who have been absent for one year or more are Roy Crawford, C. Mul- lins. Miss Teresa Macleod, Miss Audrey MacMillan, Miss Jessie Bmgham, Don Smith, David Pea- cock. David Rogers. Dr. Dean Robinson. ‘

Hon._ Eugene Cullen, Minister of Agriculture stressed that ways and means must be found to sell ideas get information to the far- mer. He complimented the ser- vices of both the Provincial and Federal departments on their ef- forts to promote agriculture dur- ing the past year.

Stating the main business of the conference Mr. Cannon noted that the p111'P0se,is two-fold. There is an aim to become throughly integrated through an understand- ing of each other’s problems and to study and describe the pro-

Post Office

MacLaren, vice-president; F. M. Cannon, president; W. E. Smith, secretary; _S. C. Wright, a for- lrner president who is Deputy Min- ‘ister of Agriculture. The coun- lcil is presently holding its an- lnual conference at Birch Court.

Ilth Agricultural Conference OpensiAt Birch Court Here

blems that exist in agriculture and to suggest possible remidies to the departments of agriculture and also to branches of private gildustry concerned with agricul-

re. .

S. C. Wright, deputy minister of agriculture, stressed the excel- lent record in production and quality of butter and cheese dur- ing the past year.

Reporting on behalf of their de- partments were Mr. Wright for the provincial department of agriculture, Dr. G.‘ C. Fisher with the provincial veterinary service, Dr. C. K. Gunn for the experi- mental Fur Farm at Summerside, reported on experiments in feed- ing mink with a view to reducing costs.

G. C. Warren reported for the Experimental farm, R. R. Hurst, G.W. Ayers, E.W. Campbell, L. C. Callbeck and Dr. Dean Robinson reported on work con- ducted. by the" laboratory of ~'plant pathology. D. C. Read reported for the work of the entomological laboratory,.H. L. MacLaren for seed potato certification and E.

B. Ellis for the fruit and vege- table divisioh.~- I = --

N-S. Prepared To Negotiate

OTTAWA (CP)—The Nova Sco- tia government has indicated it wants to negotiate a hospital in- surance agreement with the fed- eral government, Health Minister J. Waldo Montelth said Monday.

He made this statement in the Commons on reply to a question from Robert McCleave (PC——Hal- ifax).

Mr. Mon-teith also told the House that he has been advised by the Newfoundland government that it will likely be prepared to enter such an agreement as of July 1 of this year.

LETTER FROM N.B.

Asked by Paul Martin (L—Es- sex East) whether letter from New Brunswick has been re- ceived aking for clarification‘ of the federal government’s posi- tion, he said he believes this is so but would have to make inquir- res.

He also told Stanley Knowles (CCF —— Winnipeg North Centre) he would have to inquire as to whether word has been received from Manitoba on its willingness to enter.

Shortly before Maiday’s Com- mons sitting, Mr. Monteith told a reporter following a cabinet meet- ing that he hopes" the federal and Ontario governments will sign an

ANKARA, Turkéy (AP)——John Foster Dulles told the Baglldad pact allies Monday that the United States stands ready to strike back against aggression to save the Middle East from “the scourge of invasion."

The U.S. state secretary spoke in a flag-draped hall with dele- gates assembled for the opening meeting of the pacL's council of ministers.

After hearing a call from lead- ers of Turkey. Iran, Iraq and Pakistan for more and u gent aid, Dulles said:

“The Baghdad pact group Ol countries can be confident that ([15,) mobile power "of great force would, as needed, be brought to bear against any Com- munist aggrcssloll.

EFFECTIVE DETF".liENT

“And by the same token any such potential a§§.’1‘e5501‘ K30“ in

Hospital Insurance Plan

agreement on the hospital plan "as soon as possible."

He said Ontario officials now are conducting negotiations with federal authorities here, but he declined to comment directly on a Toronto report Saturday that an agreement would‘ be signed this week.

Mr. Mon-teitli announced Jan..10 that -the government plans at the next session of Parliament to amend existing legislation on the hospital plan so that any province ready by July 1 can get federal benefi/ts—rou-ghly half the cost of diagnostic and standard hospital services.

As the legislation now stands, at least six provinces with a ma- jority of Canada’s population must sign agreements and have necessary provincial legislation in force before federal payments can be made to any one prov- ince.

No agreements have been signed yet.

Mr. Monteith told the Commons earlier this month that he ex- pected British Columbia, Alberta and Saskatchewan w o u l d be ready to start federally-supported hospital insurance schemes July 1, and possibly also Newfound-

land.

advance his losses from aggres- sion would far exceed any POS- sible gains. This is an effective deterrent to 833955103 and 5 guarantee of peace.:’

But he told the allies they must have their own “forces of na- tional defences."

Foreign secretary Selwyn Lloyd of Britain warned of ulterior mo- tives in Soviet “g00dWi1l" ges- tures toward Arab ilations. Far from seeking goodwlll. he Saldy they were “concerned solely with furthering Il“.1I‘ own 0l3J6CllV9S-

Lloyd said Britain is not op- posed to a summit conference with the Russians “if it seems that a summit meeting would be the best“\i'ay to get agreement." But it must be preceded by care- ful preparallons. _

Lloyd noted that Russia re- mains“as hostile as ever” to- ward the Baghdad pact and con-

@1112 @11fl1‘l0li®1‘llL

"Covers Prince Edward Island Like The Dew”

CHARLOTTETOWN CANADA, TUESDAY, JANUARY 28, 1958

lQueen Mother 2 Leaves London‘

'By Air Today

LONDON (Reuters) —- Queen Mother Elizabeth spent Monday night with Princess Margaret be- fore setting off today on-her in- formal “meet the peltple” tour of Australia and New Zealand.

Monday she received the high

commissioners of Australia and New Zealand, Sir Eric Harrison

and Sir. Clifton Webb, at Clar-

ence House, her London home.

Queen Elizabeth and the Duke, of Edinburgh will join Princess Margaret at London airport today at 8 -a.m. GMT to see the Queen Mother off.

"When she lands here again March 10 she will have flown round the world—the first mem- ber of the Royal Family to do so.

The first leg of her 25,800-mile trip will be to the Fiji Islands via Montreal, Vancouver and Honolulu. Her DC-7C is scheduled to arrive at Dorval, Que., airport near Montreal at 1:45 p.'m. EST today instead of 4 p.m. as origin- ally scheduled. She will leave for Vancouver at 3 p.m. after hav- ‘lng tea ‘with Governor-General Massey in his private railway car on a siding near the airport.

Floods team In Areas Of Nevli /England

BOSTON (AP) — Sections of New England Monday faced their greatest flood threat since punish- ing Hurricane Diane struck the area in 1955.

Greater Boston appeared hit the hardest as both the Charles and Neponset river-s overflowed their banks, flooded lowlands and in- undated highways. Thousands of cellars were flooded and the Mas- sachusetts civil‘ d e fe n c e was placed on an operational basis.

No relief appeared in sight as the weather bureau predicted more rain today.

Army engineers kept a close watch of streams. They regulated

the Mansfield Hollow, north of Willimantic, Conn., and the Ed- ward Macdow l dam four miles west of Peterborough, N.N.

About 150 families at York and York Beach, Maine, were without central heat as streets were flooded to two and three ‘feet. Merchants used rcvboats to go back and forth between stores on Main Street.

The weather bureau said it is the wettest January since records were started in 1870.

The downpour during the week- end and part of Monday brought the‘ total to 8.66 inches. The pre- vious January record was 7.60 in

tinues to attack it in its propa- sands.

1878.

Dulles Promises Military Backing For Baghdad Pact

Explosions of two bombs startled this ccnfc 'ence capital in the pre-dawn darkness before the conference opened. .

One blew out the wall of a warehouse in the U.S. Embassy compound. The other splintered the windows and damaged the stocks of a private American bookstore which is sometimes mistaken for a U.S. information service library, 100 yards away.

Premier Adnan Menderes of Turkey ordered a.n extra guard thrown around American installa- tions. In parliament, Ieputy Baha Aksit said the bombings were “no doubt instigated ‘by Communists."

“They"want to destroy Turkish- American friendship, but this is too soundly based, too strong to be affected by such means,” he said.

The National Asse; lbly unani- m0l1S1Y adopted a resolution sup- Portini his views.

the flow of water on two dams— *

All Opposition Support New

FIXED YEARLY AMOUNTS

eral Government's announcement regarding the increase pital grants per bed did not af-

ly hospital grants over a five year

V period.

The Minister stated that his re- marks of the previous day in which he expressed pleasure at the increase in grantsgwere based on the assumption that the total

. grant was geing increased. How-

ever up to this time there has been no indication that such an increase would be forthcoming under the new scheme.

Dr. Bonnell stated it would mean greater assistance to hos- pitals with building programs now under consideration but since the yearly grant to the province is fixed, no additional moneys would be available for the over-all,pro- gram.

MATCHING GRANT

He explained that the yearly grant to Prince Edward Island for the next five years would be approximately $43,872. For every dollar which the Province spends in grants to hospital construction the Federal Govermnent matches it up to the $43,872. If, on the ‘other hand the Province were to spend less than this amount, only the smaller amount would be for- thcorning from the Federal Trea- sury.

Hospital construction, he said was a three-way split with Fed- oral and Provincial governments contributing on the basis of $2,000 apiece for each active treatment bed. However when the total cost per bed is less than $6,000 the federal provincial contribu- tions are" based on one-third the actual cost. '

SUBSTANTIAL HELP ‘

Dr. Bonnell said the Prince Ed- ward Island Hospital, on the basis of their project submitted at the present time would be eligible to receive from the Federal Govern- ment $90,500 in addition to $126,- 900 which they would ordinarily have received before the new an- nouncement was made.

The Charlottetown Hospital on the basis of present proposals sub- mitted would receive an addi- 501131 $40,250 over and above the $71,500 they would receive under previous agreements. In each case the province would match this amount.

Dr. Bonnell said a hospital sur- vey will be conducted in the Province by a tea.m of hospital consultants. Any further needs for hospital expansion in the \Pro- vmce would be. based on the find- ings of the survey, he said.

The Minister said the survey which is expected to take from three to six months will greatly assist the Government in obtain- ing information regarding the anticipated building and expan- sion needs in parts of the Pro- vinceother than Charlottetown.

OFFICIALS PLEASED

Officials of both local hospitals expressed pleasure at the federal government's announcement.

While praising the govern- ment’s decision to boost the health grants, Dr. J. W. Mac- Kenzie, chairman of the Board of

PARLIAMENT AT A GLANCE

By THE CANADIAN PRESS Monday

All opposition parties, although critical of the government’s methods, indicated approval of new federal tax concessions to the provinces.

Finance Minister Donald Flem- ing said the government recog- nizes that too much of the Cana- dian tax dollar is going into the federal treasury.

Former Liberal prime minister St. Laurent said he doubts the government will call another fed- eral-provincial fiscal conference until after June 30.

Deputy CCF Leader Stanley Knowles accused the government of presenting its new tax-sh ing proposal to the provinces on ii take-it-or-leave-it basis.

Social Credit Leader Solon Low said the government is ere ting walls to bolster excuses fo not reconvening the federal - provin- cial conference.

Prime M i n i s t e r Diefenba- ker said it would be “nonsense"

to say that Canadian relations with

the United States are strained. Tuesday The Commons meets at 2:30 p.m. EST to debate federal-pro- vincial tax sharing. The Senate

in hos-

feet the existing ceiling under which the Provinces receive year-

Trustees of the Prince Edward Island Hospital stated that hos- pitals also required assistance to provide basic facilities such as kitchens and laundries

Mr. Leo F. MacDonald, secre- tary to the Board of Trustees of the Charlottetown Hospital said that the increase “will help

“The extra amount of $2.500,000 we are to get from the Federal government is not enough. We asked for $5,000,000 additional,” Premier A. W. Matheson said last evening. And, the Premier add- ed," we are not getting as much out of the new arrangement as the Canadian Press says we are getting."

The Premier said that when they presented their case to the Dominion -Provincial conference last fall “we asked for $5,000,000 and we presented a model budge iii which we proved that we need- ed that amoun ” if our people were to enjoy a standard of ser- vices equal to the rest of Canada and if we were to pay our teach- ers adequate salaries, build and maintain our roads etc.”

“We. showed them further that we need that amount because we are committed to undertake a scheme of health insurance, in- volving hospital care and diag- nostic services, in 1959," The Premier emphasized.

Mr. Matheson said that the pro- ‘vince will be getting the $4,136,- 000 which it was getting under the old agreement, plus the $2,500,000 which is its share of the special grant to the Atlantic Provinces. But, he added, “we are not gett- ing the $370,000 that the Cana- dian Press said we were getting as our share of the extra three percent of Federal income tax.”

The figure they quoted is ap- proximately correct so far as it goes, the Premier explained but from that amount must be sub- stracted the stabilization grant we were getting, under the old agreement. - (A Canadian Press story late last night quoted Finance .Min-

Says Ceiling Unaffected By New Hospital Grants

Health Minister M. L. Bonnell stated yesterday that the Fed-

greatly to offset costs in the construction of a new nurses residence, preliminary plans of which have already been sub- mitted to the Provincial Depart- ment of Health.”

A hospital for the chronically ill was also in the planning stage, Mr. MacDonald noted.

Extra Money Not Enough For Needs Here, Premie-rSays

ister Donald Fleming in the same vein. Mr. Fleming said that Prince Edward Island will get

nothing additional under this category. The stabilization grant was

made available to this province and to British Columbia under the old agreement to ensure that the total of the money received out of existing five-year federal- provincial tax sharing arrange- ments at‘ least matches yields from the previous 1952-57 tax ren- tal pact.

Enlarging on his charge that the amount being received is not enough, the Premier observed that New Brunswick and Nova Scotia declare surpluses each year yet they are getting an additional amount of ten million a year each.’

Algonquin And Nootka Collide

HALIFAX (CP), -— The dp- stroyer - escorts Algonquin and Nootka collided Simday while taking part in Caribbean exer- cises but the navy said damage was “slight.”

The accident was disclosed here Monday by naval officials

aged at the bow and the Nootka’s port plates were dented, when the ships came together during the anti - submarine exercises. There were no injuries, and the ships will continue the exercises without repairs.

The ships are part of a 12- vessel Ca adian fleet taking part in the drill. They left here last

OTTAWA (CP) — Both British Columbia and Prince Edward Is- land will get less than antici- pated under the new federal tax concessions. Other provinces will get slightly more.

Finance Minister Fleming, in tabling revised figures in the Commons. Monday, said original figures he gave the House last Saturday did not take stabiliza- tion paymeuts into account. Stabilization payments h a v e been paid to B.C. and P.E.I. to make sure that their yields out of existing five-year federal-pro- vincial tax-sharing arrangements at least match yields from the previous .1952-57 tax rental pact. Mr. Fleming announced that B.C., instead of getting an in- crease of $5,563,000 "in the next fiscal year, will get only $2,842,- 000 out of the federal proposal to increase the provincial portion of the federal personal income tax to 13 per cent from 10.

N0 P.E.I. INCREASE

Prince Edward Island, which Mr. Fleming previously figured

Monday.

P.E.|. To Get Less Than Anticipated

would get an increase of $370,000 actually will get no increase. However, she will benefit from the $25,000,000-a-year special pay- lments for the Atlantic provinces.

Ontario will get an increase of $22,315,000 instead of $21,316,000;

Quebec $18,859,000 instead of $17,780,000. Increases for other provinces with Mr. Fleming's

previous calculations in brack- ets: Newfoundland $1,686- 000 ($1,595,000) Nova Scotia $2,- 784,000 ($2,627,000) New Bruns- wick $2,236,000 ($2,111,000) Man- itoba $3,405,000 ($3,219,000) Sask- atchewan $3,481,000 ($3,290,000); Alberta $4,595,000 ($4,335,000).

The estimated total tax-sharing benefits to the provinces in the 1958-59 fiscal year, starting April 1: ‘ Ontario $238,326,000; Quebec $197,861,000; Newfoundland $17,- 714,000; P.E.I. $4,136,000; Nova Scotia $29,191,000; New Bruns- wick $23,490,000; Manitoba $35,- 755,000; Saskatchewan $36,552,- 000; Alberta $48,231,000; British lColumbia $61,825,000.