Covers island Liket

Edward he.'iDe'wl

12 PAGES

To,

OTTAWA (CF)-West r-w has agreed to ut up sonic . 50.000 to pay or, expansion of two Canadian base: in till!

113'

is required to . ch; Canadian CF- 10 jet -which will be shipped overseas later this year and in 1957. l

The agreement was.announced by the West German goernmenl at Don Monday. Officials here said the Canadian government had asked for the funds.

Germany has already poured millions of dollars into the orig- inal construction of the two bale! at Zweibruecken and Baden Boei- lingen to accommodate part of Canada's air division of Sabre

Canaldialln Bases

0 Canada pays a rent for these bases. should Canada decide to vacate themiat any time. the property would revert back to the German administration.

Recently Canada decided to replace four of the 1: squadrons of Sabra jets with the bigger Canadian --designed CF-100 jet fighters.

Germany'srdecislon to rovide the funds for the expanson fol- lowed Canada's decision to help rearm West Germany by giving her 75 sabre -jet fighters worth

This will be Canada's first gift of arms to Germany under the mutual aid program for NATO partners in Europe.

Rotary Told Canadians Are

Prepared To Ra

"in my travels from one coast to the other I have come to believe that Canadians generally want to improve their standard of living." w.F. Iougheed, consultant econo- mist to the Canadian Bank of Com- merce. told the Charlottetown Rot- ary Club Monday. "And". he added they are quite prepared to do some- thing about it." He observed that demand for goods and services is gxpsnding and influencing and encouraging the expansion of pro- duction.

Using the growth of a baby eleph- ant as an illustration. however, he cautioned against too ready ac- ceptsnce of the tmthematicll PM jection of economic trends. In order to have continued economic srowth you have to work for it.

In primary production and in agriculture fewer people are need- ed to produce increasing quanti ties of products. This means that to maintain full employment we must turn to secondary industry and services. involving many pro- blems of protection.

The recent economic growth be-

ise Standards

time to discuss whether we should have it or not. It came in so many ways; in engineering; in. techno- logical fields: in foreign trade; in investment: and so on that no one group could interfere too much. It has opened up so many avenues for further exploration and develop- ment that only the intellectual capacity of our people can rest- rict it. said Mr. Lougheed. point- ing out the importance of educat- on.

The best way to encourage growth is to establish an economic climate in which growth can take place. "One thing we do not want to see established for posterity- even by way of experiment-is that growth can be retarded by fiscal or monetary measures or other bits of bureaucratic benevol- once.

"The Canadian economy is I nique." emphallxed the speaker. cautioning against introducing such things as punitive income tax. cap- ital gains tax. or subways. Just because Britain, the United States or Russia happen to have them." Rather we have to f ' .. Can-

gsntncanadabefors psoplehadsdianpoiiciss

CENTRAL BUSINESS SITE

:,v-'

. Sold Yesterda

one of the most desirable corn- er-block location in the business section of down-town Charlotte- town passed into the hands of David Tweel yesterday when he sequined the corner of Queen and Kent Streets from the estate of the late W. Chester 8. McLure.

The area changing hands has a frontage of as feet on Queen st. and. extends

Kent St. 0 t t. The property belonged to the eeslats of John W. Holman from

is5tuntliacqinrsdbyhfr.Mel.ura the

in 1912.

Last ysanths buildings. which were occupied by Mouton Whit- iock as a restaurant and Rix's Grocery wssa badly gutted by

fire. It is a coincidence that in 1911 Mr. Twesl's father. Mr. Nemlr

Tweei acquired the site of his pre sent restaurant and business pra- mlsas. corner of Great George and Kent streets born the Guard- ian Publishing Company of which Mr. McLure -was president. Although definite plans for the erection of a building on the sits a by Mr. Tweel have not been made. it is understood that work will be started this summer on ,a two-storey building design- ed to provide for office space in upper portion and business premises on the ground floor.

PENGUIN PROBLEM

Except by autopsy, scientbu can't determine -the sex oi an em-

; old

Says Russian Airmen Told Not To Shoot

MOSCOW (AP)-Marshal S. l. Rudenko, Soviet air force chief of staff. said Monday the Soviet air force has been ordered not to shoot on sight foreign planes in- truding into Soviet air space.

'But he told reporters that the United States will be responsible- for any ture incidents resulting from fli ts by American planes over Soviet terltory.

Russia charged July 10 that U.S. medium bomb from west Germany had flown over Russian territory east of Poland on July 4. 5 and 9. The United States ' ' d the charges.

Rudcnko told newspaper men there was no question in his mind that U.S. military planes had flown over Soviet territory as charged.

"They were flying at tremen- dous altltude,” he said. "Our planes flew, alongside and sig- nalled them to land. but the American planes disregarded the

”signsls and continued on their

courses." "Our pilots have instructions not to shoot, in order to avoid incidents." ltudonko continued. I": ":1 ".2" "if. ':r.'.''"...' "H..- cy s.l I svo gh international tensions."

Hold Suspect In Death Of, till. Boy

FREDERICTON (CP) - A 41-

Yelr wt: of this city. . 1 . 5.991 in destlr Sunday of seven-

was found near his home on the old lllchibucio road outside of Fredericton.

McLaughlin, who was arrested by the Fredericton detachment of the, RCMP. was remanded to the York County jail without plea after being charged before County Magistrate Lloyd Smith.

An inquest into the boy's death is to- be held later this week. RCMP said there were indications the child had been struck by a car. p -

STALLS ON TAKIOFI PONTIAC. Mich. (AP)-A prim ate plane stalled after takeoff and crashed near here Sunday. killing two couples within sight of their homes. The four were on route to Flushing. Mlch.. to attend a break-

DIN!

.

fast with fellow flying enthus- iasts. ,

Former CCF Ross Thatcher Joins Liberals in House

OTTAWA (CF)-Ross Thatcher has made his second cal shift in is months. switc log to the Commons Liberal grou as he quit. the Independents that he gained on leaving the CCF last

ear.

The member

outspoken

for

Illtsur

"and naturally I'd like to run in my home constituency. But I haven't been invited. of course. and only time will tell about that. I might even be dropping out of politics alto ether."

Mr. Thatc er did not imme- diately take up a seat on the Lib- eral side of the chamber. leav- ing the llouae soon after his speech.

elections on the CC! ticket. said he has been examlnin the plat- ,forina and programs all corn- mons groups since he walked out of the CC! April 12. 1866.

"1. am "that the

convinced." he laid. Liberal party. which is built on the corneruone of free so and tan eornpetiuve

'0'--4:" -M 3...":-. as” W

become evident well before he deserted that party; Notably. be had been urging governmell to economize on social securiw measures such as family allow- aaces and old-age pensions that the CCF would like in sec on- larged.

By crossing the floor, Mr. That- cher moved the Commons party standing to these figures: Liberal.

Pro

170 e Conserv tive

"ANN" ALL "WNW as; car. 22;' gocisl credit? is;'

Mr. Thatcher. who has been Independent. 3: Vlclnt. 1: total. returned in the last three gencal 265

The remaining lndspmdenta. who sit in a far corner on the opposition side of the chamber. are Raoul Poulln. iieauce. Paul E. Gagnnn. Chicoutimi. and F nand Girard. Lspointe.

mm 7Sugjests Cloris To".loin The liberals: j

on-Awaficn.--stnarus lita- ntgasus in the

Be

.3 r M ' --2 t .--.Jv.a1l&p

Gilli: May

rt. veteran Cape sum mu- par. wbodoesnotalw

.

naurax -' Dalhousie Univers- ity recently conferred honorary Doctorates of Laws on Mrs. Elsie Bambridge, daughter of British

K

Author-poet Rudyard Kipling. and Royal Bank of Canada, President. James Muir. during a special con- vocation. it was held in conjunc-

lPLlNG'S DAUGHTER Houunso

al Gov't

university library containing hun- dreds of Kipling works. LEFT-

tion with the opening of a new J Dslhousie Board of Governors,

Chairman R.V.D. Lalng. Univer-

sity president. A.E. Kerr, Mrs. Bambridge and Mr. Muir.(C P Photo)

Lavish Wedding is Called Off

LONDON (Reuters)-More than 500 invited guests Monday got tele- gams aiphnouncing mtgdcuoelhum

a v wedding betw Tiiltliltonaixeti lI0ll,.lila.”vllI m:'5.'a

national ifllnnoiofl dark I haired

undreds of presents. including Georgian silver, china. pictures. and cut glass, are to be sent back to well-wiahers.

Virginia Cob, 17 - year - old daughter of financier L .1 Co- hen, was to have married 22-year- old Johnathan Sleff, whose fam- ily have a multi-million-pound chain store fortune, in a London synagogue.

There had been no quarrel. she explained. "We just realized we were unsuitable to each other.”

A Jewish orphanage here will get the three-tier wedding cake.

Denies Soldiers in Germany Get. Insufficient food

OTTAWA (CP) - Defence Min- lster Campney said Monday that Joseph Tunks' comments on ra- tions served Canadlan soldiers in West Germany are "not war- ranted by the food I saw issued to the army during my visits to Europe."

Tunks was quoted in a news story from Cbatham, 0nt.. Fri- day as saying Canadian troops in Germany are hungry. not being used to British rations of "bully beef day after day."

The soldier. at home in. Bothwell. 0nt.. on compassionate leave. was reported to have said that if it were not for food par- cels" from home "there would have been mutiny long before W.”

Mr. Campney said that since

had raised the matter he

would look into it and see whether

the commodities in which the sol-

dier is interested arcbeing issued as Canadian army rations.

"Flor

BIR ts) - Com

British Find Mottl- dlsnussd notices

.....lL' Iiahtbocamsafproductissdslen

notices are dicot- the

Selective Service May Be Usecl . F0!” British Force

IIDNPDON The govern His likely forls-ems tlma.' , -it is felt

meat next week may announce that consideration is being given

to introduction of a form of selec-

tive service. for Britain's armed forces. -

If a ted, selective service would repace the present system of compulsory national service under which whole age groups are called up for a-two-year period of service.

Although no concrete decision

Cement Supplies Reported Short

HALIFAX (CP) - siphoning of cement supplies into government projects like the St. Lawrence Sea- way and Camp Gagebown is be- ginning to affect construction in the Maritlmes. a spokesman for one of two large cement suppliers here -laid Monday.

Small contractors and house t '” "will really feel the pinch" in the next few weeks. he said.

He advised construction men "to hold off" until assured of suf- ficient cement supply to finish their pa posed contracts. He lib cried the shortage to that of the war years.

Saturday, the German freighter

Reinhart Lorenz Russ landed 4.-

800 tons of cement together with 1,000 tons of steel. cargo picked up in Belgium is con signed to New Brunswick.

, , vc ll0l.DER urns .CAPETOWN. South" Africa (Reuters)-Maj. Randolph Cosby

Nesbltt. 88. oldest holder of the

Victoria Cross, died here Monday after a short illness. Nesbitt won the VC for rescuing a party oi men and women who was sup roundad by African rebels in'Ma- zoe valley. about 30 miles from Salisbury (Rhodesia! in the Mash ona Rebellion of. lass.

smxs is cause

cl-lneU.K. Fires 2,000

. England (lleut- after their vacation if the stslm t As union leaders tried to caldo - t more workers into the walk & Labor Minister lail Ilclaod

hsiil

' (st; arises." Q. anovncn aovcons

called ,'s 5i.Q workers, is

est against Qdmced out p .

Most of the

the government may take advan- tage of the defence debate sched- uled next week to feel out the Commons' reaction to selective service.

HIGHLY UNPOPULAII.

The government has. shied away from selective service as certain to be highly unpopular. Less than a year ago Prime Min- later eden said in an address to the Conservative party couven tlon that he did not believe a sys- tem of selective service or bal- loting would be acceptable to the people of this country."

The government. however. is faced'with the problem that reg- ulsr recruitment is unlikely to produce a force to match the country's military commitments. Last February the government announced a series of pay 'in- creases designed to stimulate re- cruitment but response has not been up to expectations.

The alternative method of a straight cut of six or seven months in the present two-year period of service is not expected to be introduced.

WOULD CUT EFFICIENCY Military opinion is firmly

PC From H.M.C.S. Micmac Killed

CHATHAM. N.B. (CF) - Petty Officer William Ronald H035. 18. of Dartmouth. ,N.S.. was killed Monday when his car plunged off the highway near here.

His widow and three children were taken to hospital at New- castle. N.B.. with minor injuries. The children have been released but Mrs. I-iogg is being treated for shock, cuts and bruises.

Petty Officer Hogg was attached to the destroyer Micmac. RCMP

officers are investigating the ac- cident.

In the House of Commons he yould help both sides reach a set- tlement "as soon as the opportun-

Meanwhiie. a strike leader II- that the i.&.tIn-etroag port and al Workers has ordered their If

in British &'II to N9

I

-1

against a reduced period of ice on grounds of efficiency. lotus service chiefs are known to feel that even a two-year period is hardly sufficient to complete training modern arms and equipment. l When the improved pay code was introduced. the government said it hoped to obtain a regular srmy force of 192,000 by April. 1957. To stimulate regular re- cruiting a soldier signing on for three years received 9: a day, compared with 4s 6d for a na- tional scrviceman. Additional re- wards were offered to soldiers signing on for longer periods. Officially. the defence miniai ,1 says that it is "still too early to judge the success of the pay increases." There now are 169,001

light winds. low-Isiah 57 a 75.

'5. .1 t

"Election Ba

No Denial Tax Cuts Planned

OTTAWA (CP) - The govern- ment was accused Monday of starving the provinces to produce a big surplus for "election bait" tax cuts next year.

Donald Fleming (PC--Toronto Eglinton) made the statement in the Commons. He got no denial that tax cuts are planned.

Mr. Fleming, in a debate on legislation to implement the new federal tax-sharing proposals to the provinces. reiterated the Op- position demand that the prov- vinces should get a bigger slice of national tax revenues.

He said that, barring extravag- ant spending or juggled book- keeping, the government will end this fiscal year with a surplus of S500,000,000 or more next March

Finance Minister Harris. who has budgeted for a S113.000.000 surplus, shook his head vigor- ously. Mr. Fleming continued:

"The government apparently has decided that it prefers that the provinces and the municipal- ities be starved. that they should be compelled to remain in a financial strait-jacket. in order that the federal government may put on s grandstand show next spring and use tax reductions fol- lowing this enormous budget sur- plus as election bait."

SHOULD CUT DEBT

Later. Fisheries Minister Sin- clair ssid use of federal surpluses would be an uncertain way of financing the provinces. and

pluses to reduce the national debt

ha"... y 1. .' moneyyn the. ut political praise was more likely to result from spending public funds than from collecting those funds from

taxpayers.

Social Credit Leader Low said the new tax-sharing plan falls far srort of giving the provinces enough to meet their needs. He suggested another attempt be made to reach a more accept- able solution.

LIKES PRESENT PRINCIPLE CCF spokesman Harold Winch sided with the other opposition speakers in urging a better deal for the provinces. But he in- dicated his party prefers the prin- ciple of the existing tax rental agreements. which expire next March 31, to give the central gov-

in the -army.

ernment greater supervision an!

added that it is better to use sur- 11'?

riucascp

arves

It"

control over the economy.

Under the new tax formula. taxpayers could deduct l0 per cent of -federal personal incosns tax. nine per cent of corporation income and 50 per cent of suc- cession dutles to cover provincial levies in these fields. The prov- inces could assess higher taxes. but with resulting double taxa- tlon.

The federal plan would provids unconditional equalization pay- ments to the provinces based on their per-capita income from the 10-9-50 share of the three tax fields. The payments would be calculated to bring the income in the less wealthy provinces up is the average of the two highest- Ontario and British Columbia.

IMPOSES FLOOR

It also would put a floor on provincial revenues in those fields. guaranteeing the provinces 95 per cent of the average income of the two preceding years.

Mr. Sinclair said the new pro- posals will provide the provinces with 20 per cent more-an extra s115.000,000 - than they would get under a continuation of the present tax-rental plan.

them to sign agreements 0- all would receive the equalization payments. . CAN'T BATISFY ALL

Mr. Sinclair said the central government can't satisfy all the demands of s fast-growing coun-

"What we try to do u to work

d g. , out a reasonable com miss a "M,futgm,;::, ,, moderate way which give '09 V”; . V mpriorltytothosothinaofllod

-rv - .3.ce--s-4w-u-s.- go-Anew He said he can understand the premiers asking for more-dis welfare of provinces was this responsibility. But he could not understand Opposition snssnhns asking for more unless they in- dicated where the extra many was to come from.

LEOPARD SAVES TRAINER.

OSTEND, Belgium (Reuters)-- French animal trainer Philippa Gruss was saved by his pet leop- ard when a panther attacked him during a performance with the Medrano Circus here Sunday night. The leopard sprang at the panther immediately it started to attack his master. The fire bri- gade was called in and separated the animals by playing jet! of water on them.

Eden Offers To Deal With

Russia On H-Bomb Tests

LONDON (AP) - Prime Minis-

ter Eden. in a shift of policy, to

offered Monday to bargain with Russia on the limitation of hy- drogen bomb tests.

Eden's announcement came in a House of Commons review of international affairs.

He conceded that the Stalin- levelling campaign behind the Iron Curtain should relax world tensions. but cautioned against expecting too much.

WAR THREAT RECEDES

The threat of war. he said. has receded-lar ely because every- one includin the Soviet leaders. now recognize the if-bomb could destroy the human race. He de- clared he was "sure" now that no nation would risk starting a nuclear war but that he could not be "equally sure of 0m forever."

The R t and some sectors of British public opinion. have been pressing for a ban on nu- clear test explosions. So have Japan and India.

Eden said he would have pre- llmitatioa of

READY 1'0 DISCUSS 11'

But, he added:

"We are quite ready now is discuss that matter separately . . we should. each one of

completely "even if they wanted

CAN'T BE OUTLAWED

2. Cannot be outlawed. as was poison gas. so that wars might continue with conventional weap- ons. "I think it inconceivable that a modern global war could take place without the use of hydrogen and atomic weapons.

3. Will "compel military re- thinking on both sides of the Iron Curtain," presumably on the re- duction of conventional forces. But Britain. in considering a cut in her armed forces. never will make "some sudden or abnipt decisiol which would throw the whole mil- itary gear of our Western unity