moummnottuown,ruu.auneso,1m.7 may meow tau-o’-

British Gov't Rejects

Indonesian

By ARTHUR L. GAVSBON

LONDON (AP) — Buses for Fidel Castro's Cuba—3i. Trucks for President Sukarno‘s Indon- esia—no.

That's the reaction of the British government to requests from two firms that it guaran- tee they’ll get their money for sales to Cuba and Indonesia.

Leyland Motors Sunday ship- ped the first part of an order of 950 single-decker buses to the Castro regime. The Cubans have an option to buy 1,500 in all.

Vauxhall Motors has signed a contract to deliver 1,000 truck chassis to the Indonesians at a writ of about $3,000,000.

The export credit guarantee

department. an autonomous government agency, has under- written the value of the whole Leyland order, which will run to about $42,000,000 if all 1,500 buses are bought. This means that if Castro reneges on his- payments. the agency will pay Leyland. But government authorities report the agency is refusing to insure Vauxhall’s deal with In- donesia. This means the order will be cancelled unless Vaux- hall can find other backers.

NOT STRATEGIC Neither buses nor

pledged to deny to Communist or hostile countries. When the US. government complained about the bus deal with

lruck Deal

issue is referred to the govern- ment.

The 950 buses ordered from Leylands will cost Cuba $25,- 200,000 Castro is paying for them over five years'at what a Leyland spokesman said was “a normal commercial rate of interest." It“ Britain this is around five or six per cent.

The cost of the export agency’s guarantee is incorpor- ated into the price Cuba is pay- log.

Free Education Draws Criticism From Committee

OTTAWA (CPl—Members of the Commons defence commit- tee here complained that too many young men are get- ting a free university education from the defence department without any intention of staying in the armed forces.

The comments followed dis- closure by Elgin Armstrong. deputy defence minister, that more than half of those receiv' ing a college education from the department flunk out before graduation and that 37 per cent of the graduates serve only the obligatory three years in the armed forces.

About hall the university

ainees are educated the

Cuba, the British said they had m es ordinary

no power to cancel an commercial transaction.

Yet the government is block- ing the deal with neutralist In- donesia on the grotnid at na- tional interest. And this despite the tact that (the export credit agency last August insured the sale of 1.000 Dodge trucks to Indonesia. mnic factors predominant. in these asawsments of a buy- ing country's credit-worthiness. but political and strategic con- siderations also play a part.

Cuba is considered a good commercial risk but Indonesia isn‘t '

with her sugar and tobacco , Ouba

fallen down on payments.

The economic outlook for In‘ donesia has been getting pro- gress‘vely bleaker with So- karno’s undeclared war on the federation of Malaysia. a Com- monwealth member which Brit-

on ts Singapore have closed. Defence 5 has soared. DOESN'T MENACE BRITAIN

Cuba my be a threat of sorts in the United States, but Brit- ain does not think Castro ac- tually menaces her interests. The British note that the Cubans are not fighting anyone. Britain, a trading nation, does not ac- rcpt the American view that trade should be used as a politi- cal weapon.

But tndonesia is lighting against Malaysian and British troops. The Indonesians are (misidered aggressors in Lon-

don.

The export agency. winch un- der-wrote nearly $3,000,000.000 worth of British overseas trade last fiscal year, pays its own way by charging premiums to the exporters who come to it for insurance. Reserves of about $150,000,000 stand to its credit.

An advisory council of busi- nessmen reviews each applica- tion for a guarantee. If s deci- sion cannot be reached because of political or other factors, the

. Armstrong indicated the defence departmen ‘1 an- nounce soon that the obligatory service period after graduation will be raised to four years.

David Groos 0L — Victoria), a former naval c tain, said the great majority of students whose ucation is paid for by the defence department are not —.___—

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service career.

Douglas Esrkneu. fol‘mer Conservative defence minister. said some graduates nay openly they joined only for a free unl- versity education and' have no intention of staying beyond the required three yeors.

He said those along fa- the tree ride should be needed out early and that the. obligatory term of service should be five years.

Mr. Armstrong said in- to Grant Deadiman (‘L —. couver Quadra) that the cost per graduate at a service col- lege is $36,000 compared with $16,000 at a civilian university.

He said 48 per cent of grad- uates who join the navy leave after three years' required serv- ice. He did not give the per- ceéilt‘anes for the army and

POST-CHRISTIANITY?

LONDON (CPl—Britain is living in a postChristim era says Parish and People, monthly newspaper of I new Church of England movement which campaigns for o Chris- tian revival. The papah rm large numbers of Britons still observe Christian ethics but only 10 per cent of the popula- tion are church members.

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The appointment of Mr. Edward W. Bodner as Direc— tor of Sales for Canadian Schenley Ltd. is announced by Mr. G D. Kuhn, Presi-

s onsible for sales operations

roughout Canada effective July lst, and will be located in Montreal. Mr. Bodner joined Schenley in 1958 as Ontario Sales Promotion Manager and was a pointed Assistant Genera Sales Manager for Ontario in 1959 and General Sails: Manager for Ontario in

all service static!- and garage lasers at ' Company, Limited retailers of petroleum products holding am equipment Ills agreement whit Irving 0! Gun- pany, Limited .

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