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Maxims ct I

Eisenhower Clarifies His Policy On Formosa lssue

Iy DOUGLAS I. CORNELL WASHINGTON. (AP)-President Eisenhower declared Thursday his Formosa policy is purely dorm. sive-and be reserved to himself alone any decision to strike the Red Chinese mainland in safe ding the island stronghold of hisng Kai-shek. He thus moved to quiet .3. greased fears in the Senate that due the United States into a great conflict. or that a hot-headed American military man might launch preventive war, The tatement failed to satisfy a little knot of senatorial opponents. but it brought a powerful support- ing response. Chairman Walter George (Dom. Ga.) of the foreign relations comml tee. who had been consulted by Eisenhower in ad- vance of the statement, called on

:!l:IurI.lIl.'I grave juncture of world

s. '

The fight-if-we-must resolution,

r9o.hohre'tl offs 'i.:iomsi'& c

psyc c c

by.nl'o.ng delays or "trifling m .

OPPONENTI FIGHT ON a

But the senato" ' opponents fought on to change the resolution. One. Senator Wayne Morse (Ind. 0re.), said the White House state- ment was a "tacit admission that under the resolution authority is sought in advance to make a pre- ventive war strike" if that is deemed necessary.

The president. in an effort to allay senatorial fears, conferred Thursday with Admiral Arthur W. Redford. chairman of the Joint chiefs of staff, and other military and civilian defenc leaders.

the chamber to back the president

Forbid Travel

To China To

Visit Imprisoned Airmen

WASHINGTON (AP)-State Sec- retary Dulles Thursday notified relatives the government has reach- ed "the reluctant conclusion" it must forbid their travel to Com- munist China to visit imprisoned Americans.

A state department announce- ment said the notifications went out Thursday through the air force. The department released the text of a letter from Dulles to the relatives of 17 imprisoned Americans-15 air- men and two civilian employees of

the srnw. Dullee' letter. identical in each

case. declared the Chinese Com- munists could best demonstrate their concern for the relatives' peace of mind "only by I ' i

Will Table Estimates Today

OTTAWA. (CP)-The govern- ment's estimate of expenditures for the 1955-56 fiscal year start-' ing April 1 will be announced today.

Finance Minister Harris will table the annual estimates in the commons about 2.30 pm. EST.

Expenditures for the current year have been estimated at about 34.500.000.000 and it ap- pears likely the current spend- ing rate will be continued next year.

Defence spending may drop slightly from the current an- nual rate of a little less than 32.000.-000.000. but spending on

public works likely will in- crease.

Longest ln Firm's History

Report Ford Co. Strike Settled

TORONTO (CP)-The Ford of Canada strike. longest in company history, ended Thursday.

Settlement came in the sf.rike'I 109th day.

Negotiators for the company and the United Automobile Workers (Clo-CCL) midway Hsrough the afternoon announced they had reached basis for settlement of the walkouts which took nearly I,- 000 workers from their jobs in three company plants in Ontario.

T. J. Emmert, ford of Canada executive vice-president, said the

those they hold."

"The inc. asingly belligerent at- titude and actions of the Chinese Communists in recent days." Dul- les wrote. "have forced this gov- ernment to the r ' conclusion that it would be imprudent for the time being to issue passports valid for travel to Communist China to any American citizens."

The Chinese Reds had offered to let the relatives visit the men.

N.'S. Man Is Appointed To Head Up Economic Council

By IRVING WHYNOT Canadian Press staff Writer MONCTON. KCP) - The Atlantic provinces economic council Thurs- dsy accepted its incorporation and laid the groundwork for its role in helping the lagging business of the

four provinces.

The council's provisional exec- utive adopted by-laws. set mem- bership fees and also named its key man. an executive manager.

Selected for the job which coun- cil members said called for "a man with a mission" was 41-year- old 0. Nelson Mann. assistant dep- uty minister is the Nova Scotia department of trade and industry. A mechanical engineering grad- uate of Nova Scotia- Technical Col- lege. he has had wide experience in that field and in research.

By-laws adopted by the meetings opened the way for council partic- ipation in almost all fields related to economic development.

The council will survey and study the advantages and difficult- ies of business and recommend methods to ensure the economic future. It will oppose. or support. leglslatl affecting trade. com- merce. manufacturing and indus-

Coming Events

"Horse racing liaseibrook lat- nrday at i'a0.

"Reserve March 28-20-30, Kins- men Greatest Variety Show, P.W.C.

"Regular Saturday night Dance. St. Peters Hall. Messei-'s Orchestra.

"Hampton Hall. Friday. January Scotch Concert. Auspicel

"Cake Sale at I. A. MacDonald's Store. 2 o'clock. Kings Daughters Group 4.

"Dance. Beaver Hall. Montague. Friday. January 23th. Blanchsrd'l Orchestra.

"Dance this week in South Rus- tico Hall. Friday night. Rollie Mac- Kensie's Orchestra.

"Grand Bingo. St. Andrew's Hall. at. Stewart. Monday. January slst.

games. Door prise. '

"Queen's County Lodge. meets

hi King William lsodgb Room. Kings- ton. Tuesday. February ist. at 1. .

"Hockey Cra aud brink tonight. Nine Mile Bulldogs versus l-lampsihre. League game. szao

sharp. skate after.

"Showing at Mt. Stewart Friday and Saturday-"Tho Farmer Takes A Wife". with Betty Grable and Dale Robertson.

"Skate Crapaud rink this after- noomstoi. AlsoSaturdayaftar- noon I to 5. Admission 15 cents. igiluisr Saturday night skate I to

"Double header at North River pg: tgni t.h Mlltiilia vs. North

. . IT. IIIIDIMII VI. Long Creek. -League games. lasts

"S l id. 1' ida J ans. Was. n. vi. .l.l......:';".'.'l on tour and show

sawedlfsotflne nu-nail.

trial development and aim at stim- ulating discussion and bringing about united action.

EXCELLENT JOBS

L. W. Simms of Saint John. N. B., said many groups in the four prov- inces had done excellent jobs on research and similar projects in the past. l

But there was a "woeful lack of co-ordination" and it was here that the council could play an important role. He an-essed that the council would not compete with boards of trade and similar groups.

The con ", as planned here, will have 28 directors. seven elec- ted by the member. in each prov- inc. Membership is wide open.

Suggested by the Maritime prov- inces board,of trade and approved at a meeting of Atlantic province premiers. the council is modelled along the New England economic council.

R. W. Ganong of It. Stephen. N. B., was named provisional pres- ident and A. M. Robichaud of Bathurst. N. B.. secretary-tress- urer.

NAME OFFICER!

Temporary vice-presidents until the first meeting of the full council in Halifax, possibly March 18. are: Mr. simms for New Brunswick; Gordon Elman of Sydney. Nova Scotia; F. W. Curtis of Charlotte- town. Prlnco Edward Island; and Arthur Johnson of St. John's. New- foundland.

Thursday's meeting was closed with a press conference following.

Lionel Forsyth. president of Dom- inion steel and Coal Corporation and a member of the Nova Scotia delegation. said the council "should be a body that will enlist the support of every activity in these provinces concerned with the economio development of the prov- laces."

The under ing purpose was "to make the At antic province a bet- ter part of a better Canada."

Headquarters of the council will be established here where Mr. Mann. a native of Sydney. will maintain his office.

Thou attending Thursday were. New nninswick - A. M. Robi- chaud, Bathurst; R. W. Gsnong. St. Stephen; L. W. slmms. Lan-

Contlnued on Page I Col 3

Hope Dwindles Missing Bey Still Alive

YARMOUTH. N. I. (C?) - nlle hundred dispirited volunteers grub- bed the Y

bushland dwindling how Nowell may have survived near a week of prlveslon.-

A cold. raw wind off the ocean flicked fine snow into the faces of naval ratings. "fishermen. farmers and Bible college students as the sixth day of the search la the six- neasod in end.

TAIPEI-I. Formosa (Reuters) - Powerful U. 5. air and naval forces began swinging into position today to shield the evacuation of 20.000 Chinese Nationalist troops from the Communist-threatened Tachen is- lands.

The mammot” operation. almost under the noses of the Chinese Communists. is to

Britain Pushes For Security Council Meeting

UNITED NATIONS. N. Y. (AP) -Britain Thursday established con- fact with other member. of the UN Security Council in a new and di- rect drive for a council meeting to discuss a cease-fire in Formosa strait. The council may meet next week.

British sources said the delega- tion is checking with several other members about the substance of a proposal relating to a cease-fire. These sources said no formal paper has been drafted. but Britain en- visions some action intended to stop the shooting between the Com- munist and Nationalist Chinese.

7 -- . l g1

-up

A concrete proposal. illustrated in the above plan. has been prepared by the Charlottetown Board

the Minister of Transport. Hon.

George Marler. at Ottawa. .

as alternative to t& by

be bases Thursday

Trade regarding extensions to the w..." 1,, Charlottetown Airport runways and poeal the Board of Trade give the submitted is the form of a brief to follmvlns reuonl:

Evacuation Of Tachens May Start Any Moment

launched any hour between now and the weekend. Ev tion plans were reported to have been com- pleted Thursday at a Nationalist cabinet meeting. '

Two squadrons of American F-86 Sabrejets-heroes of the sky war over Korea-flew into Formosa from their Manila and Okinawa and the U. S. Far East Air Force in Tokyo an- nounced other "offensive units" are being redeployed to forward bases -presumably Formosa.

Communoist China Thursday ni ht reiterated its determination to ” lb- erate" Formosa and denounced Eisenhower's truce call as a smokescreen concealing "a brazen threat of aggression."

Wins Appeal On

Gambling Taxes OTTAWA." t P)-The income tax appeal board Thursday ruled in favor of an anonymous appellant who claimed that 515,000 incom from race track betting in the years 1948-1952 wsslnot taxable. Another 34.500 the appellant claimed came from dice was not allowed because the board said

there was not enough evidence to prove it.

3”

that amount planned for incl in the estimates be a lied on the new runway which was surveyed by De tment en- iul In In the pro-

(al such runway can be con- structed within the conflnes of the present A rroveny to a length of MO , ,

(bl 8u&' runway will allow for estsmlon the limits of the

mfeegwhthweuntekeuw lereseeehlefstleneatrnea

care of Is.

7.- the

powerhouse at Windsor is being reopened at once and cars are expected to come off the produc- tion line a week from Monday. In the general terms of settle- ment the company agreed to a master agreement. to run to June 15. 1956, and effective as soon as it is ratified by the locals at Wind- sor. Oakvilie and Etohicoke. It will cover all bargaining units of hourly - rated employees of the three locals.

The union agreed to revision of seniority clauses which the com- pany said would relieve it of some of the cost and inefficiency aris- ing from short-term lay-offs.

A wage improvement factor. ef- fective June 15. will give employ. ees of the three locals four more cents an hour. Average wage be- fore the strike was 31.69 at Wind- sor and Oakville and 51.50 at Eto- bicoke.

The present eight-cent-an-hour cost-of-living allowance will be in-

WN, CANADA. FRIDAY, JANUARY 28, 1956

PRIME MINISTER ST. LAllREllT FEARS E GRAVE"

By nave MclNTOSH

-wonin SITUATION Is "our

Cut Subsidies To Gold Mines

OTTAWA (CP)-Mines Minister Prudham announced Thurs- day night a scale-down in federal gold-mining subsidies. estimated by officials to save the treasury and taxpayers about 34,500,000 a year. The emergency aid will con- tinue for two years-1955 and 1956-under s sharply-revised for- mula.

Under revisions announced in the Commons. mines whose pro- duction costs are 326.50 an ounce or less will no longer be eligible for aid. Previously mines with production costs of more than 318 an ounce were eligible.

in addition, the maximum rate of assistance is reduced to 012.33 an ounce from 813.50.

Mohammad Ali Ends Ottawa Visit

OTTAWA. (CP)-Mohammed Ali. prime minister of Pakistan, left Ottawa by plane at 11.25 a. m. EST Thursday ending a three-day state visit.

External Affairs Minister Pear- son. repre ting the Canadian gov ernment. was at the airport to bid

cluded in basic pay.

HALIFAX, (CF)-The Nova Sco- tia Light and Power Company said today it is studying the possibility of building the continent's first atomic plant for the generation of electric power.

The disclosure followed closely Premier Henry Hicks' statement in Ottawa Wednesday that the gov- go '- . . ernment power commission Jiad been invited to consider" building such a plant.

The company said discussions re- iatlng to such a move have been held between its representatives and experts of Atomic Energy of Canada Ltd. at Ottawa.

It added that these discussions

Planning Atomic Plant For N. S. Power Generation

him goodbye.

of Canada that the two join in con- structing an atomic energy power producer of about 20.000 kilowatts in this province.

Officials said the plant would be bigger than any existing single hydro-generating unit in the prov- ince.

Premier Hicks: who is also chair- man of the Nova scotia power commission. said Wednesday the commission had been invited Atomic Energy of Canada to take part in-the construction of a pro- roiype reactor capable of generat- ing 20,000 kilowatts of power.

The premier has made no secret of his belief that atomic energy may be the answer to a crippling

led to the Nova Scotia Light and Power proposing to Atomic Energy

shortage of industrial power in this province.

Tr reenls w 1 irporl Runway po

to) The City of Charlottetown has THC letter ltltu: "With regard

agreed to purchase the additional lend required. -

(d) Each runway. extending in a northeast-southwest direction lies in the prevailing wind path and is most suited to this particular Air- port.

to) such nmway. for the above reason would handle net of the traffic.

ti) Wl the proposed new run- way in atioa. runway em on suexed Ian could then be eliminated will a resultant saving in nialntainasce costs

to your nrosoeal to extend the is) so nmway. we wish to advise that this runway points to a much trav- elled hlshvlr. the Brecklay Point lloadanddoeenotlend ltselfto further ektulsim beyond the 3.000 feet due to the eonslderable resid- ential Inverts in the immediate vicinity. While such an extension of runway was to use feet is sin-ely deiirsble. can lowing coesita

Li

Covers

Prince Edward island

lte The Dow

Canadian Press Staff Writer OTTAWA (CP) -- Prime Minister St. Laurent said Thursday the international situation is "quite grave" because

of developments in Formosa. He added that as a result

of the Formosa situation, Far

Eastern affairs will be the main subject for discussion at the Monday

prime ml in London.

ni.tters' Commonwealth conference operung

The prime minister told the Commons that. as a result of the Fomiosa situation and "after certain messages to and from London," External Affairs Minister Pearson will ac- company hirn to the conference. They will leave tonight by

RCAF plane.

it was understood that Mr. Pear- son and Sir Anthony Eden, British foreign secretary. want to discuss Formosa and possibly work out some policy to ease the situation there.

President isenhower has said that the United States will fight if necessary to protect the National- ist Chinese stronghold of Formosa from Communist attack and the U. S. 7th fleet now is patrolling the Formosa straits.

WORRYING POINT

Mr. Eisenhower also said that the 7th fleet would assist. if neces- sary. in evacuation of Chinese Na- tionalist troops from islands off the Chinese mainland. .

It is believed this is one of the points which particularly worries the Canadian and United Kingdom governments.

Mr. Pearson said in the Com- mons Tuesday that Nationalist-held

islands off the Chinese. cosst-ex- cept Fonnosa and the Pasca- dores--are "indisputably" part of

the territory of China.

This was an indication the Cana- dian government feels that if the U. S. Navy helps evacuate Chinese Nationalist forces from these is- lands in event of a Communist et- tsck. it would be participating. though perhaps indirectly. in a Chinese civil war. Such action might lead to general war between tin; U. S. and the Chinese Commu- n to. (

by QUITE GRAVE

Mr. St. Laurent said:

''In view of the recent develop- ments I'would expect that a lot of our time will be taken up by the discussion of the international situation which we all look upon as being quite grave 'at this mo ment. -

"All of us appreciate the op-

sa ship of Mr. I'.. D. Reid has been working in close consultation with the Mayor and City Council in re- gard to the above. Included on the committee are Messrs. E. C. Bak- er, F. W. l-lyndman. F. W. Gaudet. H. C. Bourke. W.R. Jenkins, A. ll. Peaks. Keith Macltinnon. rd

resident and A. Walthea Gsudet.

srd secretary.

Besides the Minister of Trans- port. copies of the brief have been orwsrded to Ban. R. . Wlaosrs. Hon. Milton F. Gregg. Mqnhup d

Commons

the House of and sengu, Premier Matheeea. Maya Stewart

aeoa:mltteeulwiIeeaelrInsa-

a

and Maritime Central Airways.

portunity of taking counsel to gather as to what might best serve the interests of peace in the world.”

The prime minister. rising at the start of Thursday's sitting. also said:

"This (prime miniserrl meet ing will give an opportunity for an exchange of views on some very important questions and it under- lines the value of the Common- wealth association as a medium for such exchanges.

"ln turn. these exchanges will make possible, I hope. more effec- tive policies and actions for the

Continued on Page 5 Col 1

Parliament At A Glance

By THE CANADIAN PRESS Thursday

Prime Minister St. Laurent said the international situation is "quite rave" because of developments concerning Formosa.

Davie Fulton (PC- Ksmloopev accused the government of promote ing national clisunlty in its tax deal- ings with Quebec.

Mines Minister Prudhsm an- nounced : scale-down h iederal gold-mining subsidies.

Georges Villeneuve IL-labor val) urged the Commons to adopt a system like the UN for simultan- eous language translation of de-

bates.

Sena William lulu M tsrio) suggested" Canadian reconfi- tion of Red China; the senate Q- proved the Paris agreement C west Germany.

lrideq The Commons resumes he fhrohe speech debate. The Ieaete is ad.lour-nod until Tuesday

I4

SLelc.l-i BEu.s SEEM 1'0 MVE Pass!-:0 001' wrru FAIMLY ALBLN5 9

rononro (cm-Mm-mum and maximum temperatures:

Min. Max. Dawson . . . . . . . .. 5 13 Vancouver 3" t4 Edmonton . 13 33 Calgary . 32 35 Saskatoon 1" ”' Regina . . - 15 Winnipeg 255 95 Toronto 1-'4 14 Ottawa 13 15 Montreal 21 31 Quebec . 12 20 Fredericton . -- 30 Saint John . - 33 Moncton . . . . . . . 9 ll

Halifax . . . . . . . . . . . .. 23 37

Charlottetown . . . . . . . . 11 ll

Sydney . . . . . . . . . . . . . 13 SI

Yarmnuth .... . . . . . . . . I4 ”

St. John's - . . - - -. -- 34

HALIFAX . (CP) -- The weather office here says most regions will be sunny and extremely cold Fri- day. snowfluries developing over the Gulf of St. Lawrence are ex- pected to drift inland over Prince Edward Island and esatem Nova Scotia.

Forecasts:

New Brunswick: Sunny and en- trsmeiy cold: northwest winds so becoming light in the afternoon; low-high at Moncton zero and of t Fredericton in and vs above, Saint John five below and eight above. Edmundston in below and the above. Csmpbelltoa to so- low and five above. '