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Canada, U.S. Decisions Made To Lessen Friction
eraws (CP) — Canada and @- United States Tuesday an- punced progress on a number of al moves to reduce fric- in cross-border trade ariti at same time called on Europe end discrimination aga American exports. In a 1,500-word communique is-
d after two days of minister- 1 talks, the two countries an-
1. The US. will hold talks with wheat experts every months in attempts to re- any Canadian complaints of extent and: direction of U.S.
man
pat giveaway é 2. Joint ministerial talks will p held on the U.S. plax‘to prose- ieee electronic corporations pating in a patents pool d by their subsidiaries in da. The U.S. made clear it no intentions of infringing on dian sovereignty in connec- with the Canadian subsidiar-
3. The two countries agreed on ce of maintaining a
hy. oil industry in the west- hemisphere and of providing centive for increased explora- “necessary on defence nds.” The U.S. has imposed tary oil import curbs and mance Minister Fleming, who baded the talks, said later “‘only ime. will tell’’ whether the U-S.
Canada is concerned.
4 The US. also expressed hope that its lead and zine import restriction “‘could be withdrawn as. soon as more satisfactory in- ternational solutions on a broader basis are found.” Meanwhile, both countries will explore ways of developing “equitable solu- tions.”
5. Canada gave assurances that {t would not attempt to apply its tough new antidumping laws in a way that would discriminate against imports from any partie- ular country. The US. -has charged these laws are a breach of Canada’s international trade obligations.
6. The U.S. also expressed con- cern over Canadian import curbs on farm products, particularly on turkeys and frozen peas. Mr. Fleming said Canada agreed to consult with the U.S, on this.
7. Canada agreed to study the American proposal for setting up a new international development association Yo be affiliated with the World Bank and to provide loans to underdeveloped coun- tries at terms more generous than provided by the World Bank. NEW STRENGTH SEEN
Then, turning to the general economic front, the ministers from both sides touched on North American economic recovery and said recent steps by -European
countries towards greater con-
will remove the curbs as fat as _ vertibility of their currencies with
| dollars indicated new overseas
The two countries agreed that the European steps ‘‘removed the finafcial justification for discri- mination against dollar s I- ers.” They called for further overseas moves to quicken dis- mantling of European import curbs against goods from Canada and the US.
“The U.S. and Canadian gov- ernments will be watching with close and sympathetic interest the way in which the logic of the new situation is translated into action,”- the communique said.
Mr. Fleming was asked later, at a press -conference, whether Canada had suggested to the U.S. that it take more direct interest in development of the six-country common market in Europe. Bri- tain, a non-member, has reached a stalemate in negotiations with | France, a member country, to ex- tend the common market into a 17 - country free trade area in Western Europe.
The finance minister said “nothing specific’ was discussed though there was recognition of the common interest of Canada and the U.S. in' Europe’s moves towards integration. Canada did not ask the U.S. to take “any specific action” though each coun- try would no doubt “further their
interests in this respect.
Railways Take Action To Seek New Increase In Freight Rates
©
‘ By JOHN LeBLANC’ “Canadian Press Staff Writer OTTAWA (‘CP)—The railways de a pass at another freight increase Tuesday. If it. is ranted, they are unlikely to get
for at least three months. The last increase became ef- ective Dec. 1. It was 17 per
. the new case. qualified ob-)
vers said Tuesday they think
@ railways will ask for between > and 20 per cent. The carriers, filing a “notice of motion” with
\
|the board of transport commis- sioners, did not disclose how much they are seeking.
A’ certainty was that the appli- cation would be fought to the hilt by the eight provinces—all except Ontario. and Quebec—that have opposed the post-war series of in- creases.
ASK HEARING DATE The railways’ notice said that at.a hearing here Monday they
will ask the board to set a date for hearing of an application for
An Intolerable
“These successive freight in-
; are an intolerable bur- an on this part of Canada and ¢ West as well,” Premier A.W. on said last night, com- Epnting on the report that the s have moved to obtain: pother freight increase of un- ecified amount. “‘They are like pmpound interest. A ten per cent mcrease on 100 is minor compar- with a 17 per cent increase on D. The as yet unknown increase ed for will be a percentage on p of all the increases already
a will be impossible to get our oducts to market or to bring in toods front central Canada to our area, he said. : CT AS UNIT “The Atlantic Provinces act as untt_in these matters through the Maritime Transportation ommistion. We will have to ight. There is no question about hat, but‘ What good will it do. We ought ini 1957 and the Govern- nt disallowed thé increase in
_ but the last 6ne was allow-
-
“Take the estamate of the Min- er of Highways that the pre-*
Burden Here,
Premier Says Of Rate Hikes
Province $150,000: or six miles of paved road,” said the Premier. “Then add another 12 to 20 per cent on $200,000 and you will see the significance.”’
Last year the CPR; the eal stiek’’ line, made a profit and made a profit last month, noted Mr. Matheson, but not on hauling goods or passengers. That rail- way was ‘sé{ up to unite Canada and was given great concessions, grants of land, including oil roy- alties.
OUR OIL
Those oil royalties are partly ours, in the opinion of the. P.E.I. Premier.‘ ‘We didn’t get. Crown lands.”’
“The cumulative increases are absolutely vicious,”’ he said. ‘‘It is up fo the Government of Canada
e
| to end them. How. they can do it
other than underwrite the differ- ence ft -don't know.
“H would ngt be quite sb bad,” concluded Mr. Matheson, if all rates were increased, but agreed charges and competitive rates in
Quebec and Ontario throw the whole burden on the rest of the country. Trucks- would ~ provide
0 increase will cost wr
as
competitions here but the recent
iOn.ip’raising car ferry rates is alarming.” : Mi
a further rate increase.
This stems from a September application in which the carriers asked for a boost of 19 per cent to cover the $60,000,000-a-year cost of a ‘wage settlement and also a second increase, indeter- minate, match increased in gen- eral operating costs.
The board gave the railways 17 per cent on the wage issue. The federal cabinet approved it—dis- missing an appeal from the eight provinces—as a means of avert- ing .a strike of 120,000 rail em- ployees that had been called for Dec. 1.
The cabinet also anriounced that a general study of rail problems was to be made on a long-term basis.
MAY BE SUBSIDY ,
-| Shortly afterwards, Works Min-
ister Green, then .acting prime minister, announced that a cab- inet committee had made. ree6m- mendations for short-term help to areas subject to freight rate dis- crimination. There .are reports that this will take the form of a subsidy proposal to be place be fore the parliamentafy session opening Jan. 15.
Informants said the chances are that: the railways at this stage don’t know how much they will ask for and probably won't know until they-have seen their operat- ing results for the first three months of this year.
That could mean hearings around April.
_ Meanwhile, the application laid kbefore the board said, estimates indicate the “‘yardstick’’ Cana- dian Pacific Railway will have a ’ | deficiency of. more than $17,000,- 000 in 1958 and one of more than $10,000,000" in 1959 from what the board has ruled as its permis- sible net earnings
This carnings figure now is some $51,000,000 a year, covering fixed charges, dividends and sur-
plus.
“Covers Prince Edward Island Like: The Dew”
RARE ETOWR. CANADA, Loss 5 ESTIMATER # 3
Causeway Is Seen Big lopic \
HALIFAX — (CP) — Edward Island Welfare ae Labor Minister A. A. Maclsaac says the proposed causeway be-
Brunswick will be a major topic when the Island Legislature con- venes Feb. 10.
The minister said in an inter- view here Tuesday that a pro- vincial election could be expec- ted in the province soon, but he named no date. The. causeway would be a main plank in the Liberal Party’s platform, he said.
Urruita To Rule Cuba By Decree
HAVANA (AP) — The revolu- tionary government dissolved congress Tuesday and announced it will ruleeCuba by decree for at least 18-manths when new elec- tions are planned. ,
The government suspended all criminal courts, regarded as a symbol of the fallen dictatorship of Fulgencio Batista, and was re- ported preparing a decree abol- ishing all political parties.
The provisiona] regime dis- missed all provincial governors, mayors and council members. Apparently their functions will be taken over by new civilian ap- pointees prepared in advance for the task.
These and other laws were an- nounced, or reported in prepara‘ vtion, as provisional president Manuel Urrutia sat almost con- tinuously in the presidential pal- ace with his new cabinet.
IRAQ RECEIVES ARMS
DAMASCUS, Syria ‘AP)—The deputy chief of staff of the Iraqi army said» Tiesday Iraq has re-
ceived ‘‘up-to-date modern arms from friends.”’ Brig. Shaker Mah- mud Shukri, in speaking over
Baghdad radio on Iraqi Army Day, did not name the friends. Reports of arms shipments to Iraq from Communist countries have been frequent but never confirmed,
NFLD. HARD HIT
By IAN MACDONALD Canadian Press Staff Writer .ST. JOHN’S, Nfld. (CP) — Re- ports of hardships causet by a severe snow storm that started New Year's Eve continue to trickle into this capital city.
A spokesman for the United States Navy base at Argentia told how Mrs. Catherine Jewell of Kil- bride, Nfld., walked seven, miles through deep drifts and high winds to give birth to a seven- pound, two-ounce baby at the sta- tion hospital.
“Both are doing fine,” spokesman said.
Mrs. Jewell made the trip with her navy husband Charles of In- dianapolis: Her 73-year-old grand- mother cared for their other four children.
‘COPTER BRINGS BABY ~The base Monday sent a heli-
Hcopter to. St. Joseph's; on St. Mary’s Bay. to airlift two-week-
the
old John Lineham to hospital where his condition was described as “satisfactory.” He4
was suffering from a severe in-
tween his province and New/i
WEDNESDAY, *
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Tuesday Nigh
OTTAWA (CP) — A “hopeful” survival rate of 50 per cent has been achieved by European oys- ters introduced to Canadian At-
ff
could operate as seiner, crab boat, trawler or
A B.C. salmon cannery sea-wa- ter unit had been successful in chilling large quantities of salmon for short periods and han- dling whale meat by the same method was being investigated.
Board officials said one ob- stacle to the use‘of the system on the east coast is that the main
Seek Missing N.S. Hunters
HALIFAX (CP)—RCAF Search and Rescue headquarters _here said Tuesday {’a, search has started for two hunters ~ missing near Liverpool, on Nova Scotia’s south shore.
Gordon Teale, 45,‘ and Eugene Leslie, 36, both of Port Jolly, N.S. have been missing- since early Monday when they left for a hunting trip near Port Herbert, a few miles from their home,
The RCAF said a Dakota air- craft from nearby Shearwater naval air station left for the
search area at 4 p.m. Tuesday.
se
Snowfall in the ionic region amounted to 26 inches in places. Air and land travel has halted completely.
It took a taxi three hours Mon- day to drive a sick woman from Marystown. North to hospital in Burin, a distance of 30 miles. A bulldozer had to open the way. The woman died 10 minutes after arrival.
A report from St. Anthony in northern Newfoundland said high winds and seas which accompan- ied the storm destroyed all the fishing stages and gear in neigh- bouring Brehat. A damage ésti- mate was not available.
TRAINS FREED
, Meanwhile, two eastbound tratns, 36 and 24 hours behind scHedule, were due here Tues- day night after being snowboumt fh the Clarenville area. They were carrying 700 passengers.
A third train which left here Jan. 4 and. got stuck in the same region was. schedyled to arrive at -Perteux BaSques today. The 550- mile trip normally takes 2
testinal infection.
4
honure
European Oysters Are Reported Doing Well’ In Maritime Areas
catch of cod there is a lower-cost; catch was expected to reach $51,- salmon | 500,000, higher by almost §$11,- and halibut but that no insur-| 000,000 than the previous record mountable barriers are foreseen.| of $40,748,000 for 1961.
fish compared with B.C.
RECORDS EARNINGS
OTTAWA (CP) — British Co-|ring catches that were the best
lumbia fishermen earned dollars for their efforts in 1958
partment reported
Landed value of the
“The largest sockeye catch in 50 years, coupled with fall her-
eran more than offset the
Arctic Gale U.S. Continues.
NEW YORK (AP)—A vicious Arctic gale hammered the United States eastern seaboard for a second day Tuesday with wind gusts up to 7% miles an hour. Damage was widespread and bit- ter cold intensified the winter misery.
Fire, an accomplice of the sav- age gale, claimed nearly a score of lives from West Virginia to New England. A man froze to death in Massachusetts. widely reported, with 17 below at Newport, Vt., 15 below, at Old Forge, N.Y., 14 below at Green- ville, Me., and 13 below at Boon- ville, N.Y.
REACHES TO FLORIDA Freezing weather reached as
far south as northern Florida, al-
though Miami reported a balmy
72 degrees. A measure of relief was ex-
pected by today. The weather
‘One Left Dead, 18 Homeless In Rash Of Maritime Fires
HALIFAX (CP) — Maritimers shivered in the grip of sub-zero cold Monday and Tuesday and aga by a rash of fires.
ive fires caused damage esti- mated at over $250,000. One of
‘them resulted in the death of a
54+-year-old woman. ,
The cold snap moved into the area Monday on the heels of the winter’s worst snow storm. Mon- day motorists were having their cars. havled out of ditches and snow banks. Tuesday their cars were being towed so they would start.
The biggest single fire loss was at Pigtou, N.S., where an early morning blaze Tuesday levelled a community centre valued at be-
tween $100,000 and $150,000.
SUSPECTS INTRUDERS
Director of the centre, Roland H. Sherwooi, said he suspected intruders caused the - fire. The building had been broken into three or four times recently and cigaret butts had been found on
the floor.
Storm Hardships Told
ia provincial highways and stranded trains prevented scores of Memorial University
students and teachers from re-|°
suming classes here following holidays. Many outport schools are short-staffed because teach- vers couldn’t return rem St. John’s.
TRAIN FOR MINERS
About 200 Conception Bay men
who couldn't get back to work at the iron mines on nearby Bell Is- lami were brought to St. John’s by special train from Carbonear Tuesday. Dozens of cars were abandoned on provincial highways, but three men reported missing on a motor trip from St: John’s to Port aux Basques turned up safely Mon- day.
RCAF planes were used to lo- veate three missing taxi drivers and their passengers. :
The highways department has 134 plows and’ 500 men working around the clock, bucking drifts up té 12 feet deep. Most maia
roads were blocked is places.
stove in her home.
bureau said the /winds should abate and the temperatures climb slightly.
Piercing winds at a steady 4 miles or more tore down power tines, chimneys and trees, smashed home and store wim- dows, unroofed buildings and bowled over petiestriang on the streets.
The cold even penetrated the depths of New York's subway system, disrupting mechanical equipment and delaying rusi- hour travellers by. the thousands. New York’s low was 13.7 above | zero.
A dormitory at Syracuse Uni- versity burned, killing seven stu- dent airmen and injuring a sum- ber of others.
Sixteen students fled the Delta K tien ¢ ity on the Williams College campus at Williamstown, Mass., daring a pre-dawn fire.
Early Tuesday night flames de- stroyed a Roman Catholic church at Iona, P.E.I., about 20 miles from Charlottetown. The loss was estimated at $75,000.
Parishoners fighting the blaze were able to save a nearby house. The fire was believed to} have started in the basement and was first noticed by parish priest Rev. Leonard McKenna when he heard glass breaking. ‘
At Hatchet’s Lake near here Mrs. Elizabeth Harnish, 4, re- ceived fatal burns Sunday night when her dress was ignited by a
In New Brunswick Monday 10 persons were left homeless when fire ripped through two homes.
FLEE BURNING HOUSE
~ \At Bathurst Mr. and Mrs. Theo Bujold and their six children fled when flames gutted their home. And at Chipman, N.B., Mr. and Mrs. Harry Stewart were left! homeless when fire yd their one-storey dwelling.
The weather office saw no let- up in the frigid weather during the next 2 hours. The mere was forecast to drop to reco’ lows.
Temperatures here Tuesday climbed no higher than five de- grees above zero. H broke the record for the lowest maximum temperature for the date set in 1883.
High readings of zero in Fred-
" Edifice Leveled Quickly; Origin Of Blaze Unknown
"s Roman Catho-
lic Church Iona was completely
Ontario to the Atlantic it is still cold or frigid.
The Dominion weather office in Toronto says a high pressure area stretching from west of Hudson Bay down to Florida— which has held most of North America im a deep freeze since last week—is moving slowly to- ward the Atlantic. :
Behind that area, temperatures were gradually warming at though they were ou below nor- mal.
ae RAIN IN B.C.
Storms on each seaboard had opposite affects..A Pacific storm brought rain and pushed temper- atures above the freezing point Monday night on the southern British Columbia coast. In north- ern B.C. and the Yukon it was still cold with temperatures rang- ing to more than 56 degrees be- low. zero Monday night.
The Maritime provinces re ported some record lows. Yar- mouth, N.S., reported two above Monday~ wan the coldest Jan. 6 on. record,/and Halifax reached
to shoot high in the air. - The wind was about 15 miles per hour.
ark’ oF Bea
ie
Te FR il i ie
f i
Tweeday but Quebec's Eastern - Townships and “Montreal expec-
ted about eight below Tuesday
night.
left up, to 14 inches of snow on the ground.
Toronto expected a. compara- tively warm low ‘of 10 degrees Tuesday night while northern On- tario expected between 20 and 30
below zero. Some snow fell in southern Ontario Monday night. , Low temperatures predicted for the Prairies Tuesday night in- cluded: Edmonton and Calgary 10 below; Prince Albert, Sask., 25 below; Saskatoon, 20 below; Winnipeg and ‘Regina five below
Mikoyan Firm On
WASHINGTON (AP) _ Soviet Deputy Premier Anastas I. Miko- yan indicated Tuesday night Rus- sia is standing firm on its de- mand for an end to four - power rule of Berlin. * -
He told this to reporters after a more than two-hour review of foreign policy problems with Vice- President Nixon.
ericton tied the old record set in 1883. ;
Police Dog
TAVISTOCK, Eng. ‘Reuters)— Hundreds of police dogs hunted the rain-lashed moors in south- western England Tuesday night for a -handsome playboy crook and his burglar friend on the run from Britain's toughest prison.
Dark - haired, debonair Dennis
Stafford, 25, and William Day, 20, broke out of Dartmoor - prison Monday night during a storm— the worst weather seen on the moor in more than ‘half a cen- r tury. They gambled on the fierce weather and bog-ridden moor to shield them from 1,000 police and volunteers who threw a 20-mile ring around the escape area.
The only two men ever to es- cape succéssfully made their
ae 108 years ago. The record
The 63 - year:- old Kremlin
s Search Moors For Playboy Crook And Pal
since the war was set in 1957 by Bill: (Foxy) Fowler, free for 3 days. ‘
But Stafford has a police repu- tation as a reckless gambler with viron nerve and tough physique.
In 1956, he broke out of a Lon- don prison and nonchalantly set up a textile business in northern England. He was seen and even photographed dancing with Lon- don showgirls in Mayfair night clubs.
When the photos made the front pages of newspapers, Stafford slipped out of London. Re finally was ‘capture? at a hidout in Trinidad. , ss
His blonde girl friend, Eileen Cook, unwittingly gave- him away. Police intercepted her cable addressed to him in Trini- dad .
Stands Berlin
troubleshooter . said Berlin was among the topics discussed dur- ing what he called a comprehen-
sive exchange of views with Nixon. ves - Asked whether Russia has
changed its position in any way on Berlin, he replied: “Why change it? One does not change a good position.”
The meeting between Mikoyan and Nixon’ was arranged at the former’s request. The Soviet Em- bassy termed it a courtesy call by Mikoyan.
The meeting topped another busy day for Mikoyan. He also took a fling at shopping in a sup ermarket and had lunch with un- ion leaders.
After meeting with Nixon, Mikoyan made clear that the vice - president reaffirmed? the U.S. determination to stay. in Berlin.
“Each explained his views in order that each could understand™ the other better,” Mikoyan said.
Facing television cameras, Mi- koyan lacded Nixon for propos- ing that the United States and Russia limit their competition te the economic fields while séeking to lift the living standards ol their peoples.
Mikoyan recalled that Soviet Premier Khrushchev already has expresseal support for Nixon's view. The vice-president spelled out his ideas in a spegch in _
don in November.