‘Autherined os Second Class Mal by @e Fest Offics — Department. Ottawa

Unemployment Insurance for Canadian farmers is recom- mended in a resolution to be debated before the present ses- sion of the Provincial Assembly winds up.

Placed on the order paper by nee Soe See

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Subs

OTTAWA (‘CP)—Some serious doubts about subsidized rental housing schemes were voiced in the Commons Friday by Works Minister Green.

In some cases, subsidized low- rental projects are ae said Mr. Green, responsible for federal housing policy.

But they should be the excep- tion rather than the rule “be- cause when you get into the field

- @f widespread subsidization of rented accommodation, it seems to me there is a very thin line between the family that gets the accommodation and the benefit of the subsidy, and the family that has to pay for it.’

Mr. Green had thevSame argu- ments against some opposition proposals for reduced interest rates on housing loans.

BOOST LOAN MONEY He spoke just hefore the Com-

mons approved a preliminary |

Smog Clears From Britain

LONDON Reuters) — Britons breathed easier Friday as smog which harrassed the country~ for most of this week cleared except in spots in western England and along the south coast.

The 83,000-ton liner Queen Eliz- abeth, anchored off Southampton ‘since Monday, still was pre- vented by fog from getting into her dock.

Resolution WillRequest Benefits For Farm Help

For these reasons the reso lution asks the Assembly to urge on the federal authorities the desirability of insurihg farm

In. this connection, « is re- calied that a similar résolution | respecting fishermen was ap | proved by the House two years | ago. Sponsors of that resolution were William Acorn Kings) and Mr. Douglas.

(L—4th | help.

(L—Ist |

i More i

U.S., Mexican Presidents Conclude Talks

ACAPULCO, Mexico (AP) — President Eisenhower and Mext- co’s President Adolfo Lopez Ma toes ended their two-day _ teighbor’”” meeting Friday night by agreeingto build a joint $100,000,000 dam on the Rie Grande River.

They also agreed that their | governments should co-operate to |help Mexico sell more minerals, coffee and cotton.

The results of their conferences were announced in a communique that said they also agreed their jexperts should launch a joint at- | ack against the screw worm which “is causing grave damage to livestock in both countries.”

25,000 Get Jobs In Winter Plan

OTTAWA (CP) — Labor Min- ister Starr informed the Com- mons Friday that some 2,000 persons have been put to work so far under the federal govern- }ment’s municipal winter works incentive program.

QUEEN GETS DETAILS LONDON ‘(Reaters, =<“ Arime |Minister Macmillan and Foreign | Secretary Selwyn Lioyd lunched | Friday with the Queen at Buck- | ingham Palace. They told her about their program for a 10-day

visit to Russia starting today.

ed Rental Plans

resolution for a bill which would boost to $1,000,000,000 from $750,- 000,000 the amount made avail- able to Central Mortgage and Housing Corporation for direct mortgage loans.

The days debate was some- thing of an anti-climax follow- ing Prime Minister Diefenbakers opening statement that the gov- ernment has cancelled the giant Arrow jet interceptor program; that, Canada’s armed forces even- tually will be armed with Ameri- can nuclear weapons; and that the U.S. will pay about two thirds of the cost of the Bomare anti-aircraft missile system to be set up in Canada.

The house also debated another resolution preliminary to legisTa- tion which would boost to $650,- 000,000 the amount the govern- ment may: contribute towards the

Trans - Canada Highway. The | present maximum is $250,000,- | 000. .

Mr. Green said that by the end of the next construction season 35 per cent of the 4,470-mile high- way through nine provinces—all except Quebec which signed no agreement will be paved. OVER-COMMITTED

At present the federal govern- ment was over-committed © by $27,500.000 on its present autho- rized $250,000,000 maximum con- tribution. The federal contribu- tion is 10 per cent of the cost and 90 per cent on 10 per cent of the mileage in each province.

Mr. Green said he hopes the

Nfld. Pulp And Paper Mills Threaten To Cease Operation

ST JOHN'S, Nfid. (CP)—New- fofindiand’s two big pulp and pa- per companies said Friday they will close down rather than sub- mit to the International Wood- workers of America (CLC).

A joint statement was issued over the signatures -of T. R. Moore, president’ of the struck Anzio - Newfoundland Develop- ment Company, and Albert Mar- tin, vice - president of Bowater’s Newfoundland Pulp and Paper Camnanv

The ctatemen! caid the compan les w.il never sign working agree Menig with the IWA. “The papér

in

companies do not intend to allow the PWA to further endanger the economy of the industry in New- foundland by perpetuating its presence in the province through collective agreements.”

30,000 EMPLOYEES

About 30,000 persons are em- ployed by. the two “companies which give the Newfoundiand for- est products industry an annual value of more than $30,000,000. The TWA has organized loggers emoloyed by A. N. D. and those we .cing for woods contractors in

Frowned On By Mr. Green

provinces will make a maximum effort to complete the work by the end of 1960, target date for termination of the agreements.

The housing debate produced a series of proposals from both sides of the Commons.

oe

Ragincs navy * newest troyer. escort

shin the

the employ of Bowaters.

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commissioning ceremonies

“Covers Prince Edward Island Like The Dew”

, CHARLOTTETOWN, CANADA, SATURDAY, FEBRUARY 21, 1959

Ce tne

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the tender.” and ned etiotinn ever since,”

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bebe

“The recession through which we have been passing proved to be of shorter duration and more selective than many had

anticipated. “Now there has been a mark- ed change in the economic

weather. Inflation is the big- gest danger we can see ahead although we have in many lines surplus goods and surplus lab- our.

“Several factors contribute to the threat of inflation but among them, the fear of infla-

des} zon. Que., Gatineau, during] of the new Restigouche class les- atitroyers to enter service. This! commander is

tion is perhaps the most im-

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3 4 Ps

> ave Cake & Eat It, Dew: ar Tells Legislature

ETT FP

oe ing Of Arr % 3 14,500 Jobless

portant. Most attempts to

hedge only add fuel to the

flames and burn away the value of our savings.

“To stear a course to avoid inflation without bringing about a decline in ic activity requires wisdom and courage of the highest order.”

Dr. Dewar said, “This is an opinion stated October 20, 1958 by one of the former ministers of the Liberal Cabinet.”

Statistics showing the inflat- ionary trend since 1949 were shown by Dr. Dewar. With the | dollar worth 100 cents in 1949,

OTTAWA, — (Special) — Con- struction of a large cantilever hangar at Summerside RCAF Station at a cost of more than $3,000,000 will be carried out by | the Federal Government, Dr. 0.

ced Friday.

Lowest tender received for the project was from Louis Donolo, of Montreal. It was for $3,107,- | 778. The contract will be award- led as soon as engineers of De- ifense Construction Ltd., check the details. No Island firm ten- dered for the hangar.

Dr. Phillips said tenders for the “readiness and anti-cor- rosioa hangar will be opened in | about two weeks’ time.

! The new hangar will be used

“9

* | ports

*/iclearance up $16;

it went to 8 cents in 1951—36 cents in 1952;—86 cents in 1954; —% cents in 1956—82 cents in 1957 and 79 cents in 1958.

BRIGHTER PICTURE

Referring to local press *re- at the beginning of the’ present year, Dr. Dewar noted that prosperity was described as being at a new peak in P-.ELI. and the reasons given were $34 million in building projects; bank

ess up 16 per cent; net farm in- ae at it aeee volume of trade the greatest in years; 87 miles of road paved compared to 31 miles the previous year.

He stated that Canadians dur- ing 19658 earned more, saved more and spext more than in any similar period in the nat- “The money did

H. Phillips (PC,’Prince) annou.- |

(Continued on Page 13, Col. 2)

Montreal Tender Reported Lowest For S’Side Hangar

to accommodate Argus aircraft. |

Clnetrostian of the hangar is |

part of the development pro-

gram planned for the Summer-

og station. Millions will be spent before it is completed.

Butter, Milk Stocks Held

OTTAWA (CP) — The federal government. held nearly 70,000,- 000 pounds of butter and more than 65,000,000 pounds of dry skimmed milk at Jan. 31 under its price support program, Agri- culture Minister Harkness re

ep eee ee “er

ported.in the Commons Friday.

Ge SMe

~~

DESTROYER ESCORT GATINEAU IS COMMISSIONED

board the Canadian Halifax dockyard. Built at T.au-]summer she will head a naval | Quinn,

Gatineau is the third

escort for Queca Elizabeth down the St. eng Seaway. Her Capt. Howard. L.

50, (inset) of Vancouver. Since March 5, 1958 he “has. com- manded HMCS St. Laurent and has held the additional appgint-

Bercy. Sails -

’, Today From

Nfld. Port

The ferry Prince Edward Is- land is scheduled to sail at day- break today from Port aux Bas- ques, Nfid., for her home port at Borden, P.E.I., it was learn- ed from Canadian National Railway authorities in Moncton. The ferry will be accompan- ied by the icebreaker Labrador. The Prince Edward Island has been tied up at the Newfound- land port awaiting an escort through heavy Gulf ice. The ferry carries bunker fuel for only some 50 hours heavy steam- ing and the amount is insuf- ficient to batter a passage through ice said to be heaviest for years.

Canada’s Export Of Commodities Shows Decline

OTTAWA (CP)—Canada’s ex- ports of commodities in January slipped more than 10 per cent to $350,200,000 for -all countries compared with the figure for January a year ago.

The decline of $39,400,000 on January, 1958, the bureau of sta- tistics reported Friday was due chiefly to a drop in the value of exports to the United States.

Exports to the US. totalled $200,000,000 and to the United Kingdom $55,400,000, a drop of $6,200,000. The only increase was in commodity exports to other Commonwealth coutries valued at $25,000,000 against a $22,700,000 a year earlier. Exports to all other countries

260,000 from vse he —

Open Rocky | Point Tenders

Lowest tender for building 15 miles of paved road from Rocky Point to Afton Hall and

from Afton Hall to Caace Cove was submitted by Curran and Briggs Ltd. The amount was $475,650.

Tenders were opened yester- day noon by Premier A.W. Ma- theson in the presence of the Hon. Eugene Cullen, R. Gordon White, Deputy Ministef of High- ways, and ten other officials and representatives of paving com- panies.

Other tenders were War-ens Maritimes Lid. $483.550 and

Pes

Hayes Paving Co. $603,200.

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Pd

ment of Commander, Third Caz-

adian Escort Squadron. He will

retain the lateer appointment. (National Defence Phote)

By DAVE McINTOSH Canadian Press Staff Writer OTTAWA (CP) — The govern- ment Friday junked the Arrow. Prime Minister Diefenbaker an- nounced in the Commons that the six-year program to develop the supersonic imterceptor and its power plant, the Iroquois engine, is being terminated immediately. By the timie the cancellation fee ig paid, the program will have cost the public treasury about $500 000,000.

A.V. Roe (Canada) Limited an-

cancelled aircraft and engine. NO OTHER WORK

“Frankness demands that 1! advise that at present there is no other work that the govern- ment can assign immediately to

engine,” The industry source said Avro’s 2,500 scientists, engineers and technicians will be able to find work easily—in the U.S. But the outlook looked gloomy for the other company workers. Thirty-seven Arrow prototypes

ywere on order and five have

flown with an American engine as the power plant. The first Iroquois engine had been sched- uled to be installed in the Arrow in April.

Up to now, the Arrow program

TORONTO (CP) — Jan Zura- kowski, first man to fly the CF- 105 Arrow jet interceptor, says it is a “wonderful aircraft and Canada needs it.”

Mr. Zurakowski, until recently chief test pilot for Avro Aircraft Lid. and now a technical advisor, was commenting Friday on the federal government’s decision to drop the controversial aircraft.

He said missiles alone canrot defend Canada. They could be jammed and only a manned air- craft such as the Arrow could

done and break it, down. “Missiles can’t come back and

tell you what's happening.”

He said the Arrow met and in some ways exceeded RCAF spec- ifications and that criticisms that it does npt have enough range

find out how the jamming was |

PM Explains Gov't Decision

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“Potential aggressors seem more likely to put effort into missile development than into increasing their bomber force.

“By the middle of “1962 the

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submarinetaunched missiles. “By the middle 1960s the mis- sile seems likely to be the

by It would be only in this period, namely after mid-1962, that the CF-105 could be fully eperational in the RCAF.”

Arrow Jet Seen

Wonderful Plane

If a longer range was desirea, it was possible’to add more fue tanks.

EXCELS U.S. PLANES

The RCAF had asked for ‘® twin - engined aircraft which’ would carry. a pilot and radar operator and Avro had produced a plane superior to any United States interceptor that Canada could buy.

Mr. Zurakowski, a Polish Battle of Britain hero, said he is “very much upset"’ by the government's decision.

“Russia is developing intere tors and bombers as well as mis siles.In the face of that, it would

be ridiculous’ for Canada to scrag manned aircraft. “They will be required for see

are not valid

eral years at jeast.”