TELEPHONE 8506 Buyer meets Want Ads. Di fied ad taker, seller with G1: ardian foil 3§06 ask for classi- quick results. EPAGES iadar Quits As Premier, Retains Key Pgrty Post BUDAPEST (Reuters) — Janos hdar, Hungarian premier since miss-tan tanks crushed the 1956 me-volt, handed in his resignation ’ parliament Monday while re- Hiring his key post as Commu- nist-part! chief. lie proposed first deputy prem- hr Ferenc Muennich to succeed him as premier. The Hungarian news agency said Monday night parliament approved the change. Foreign observ rs here said In switch indicated no change in the policy of the present regime, which has steered the country se- curely back into the Communist fold from the turmoil of the lip- Expects Election Date This Week BRANDON,‘Man. (CP)—-Liberal leader Lester B. Pearson said Monday he will be “very sur- prised" if the Conservative gov- ernment does not announce an eledioadate this week. He said in View of recent de- velopments at_0ttawa and state- ments made in Winnipeg by Prime Minister Diefen-baker there Is little doubt “we'll get the,elec- lion date cleared up this week." ‘ He spoke in an interview aboard a train from Winnipeg to Brandon. where he will make a round of appearances. Mr. Pearson said that “as a party” the Liberals are ready for an election whether it be now. during the spring, summer or . Castonguay Critically Ill 0'l'l‘AWA (CP)—Jules Gaston- llfl. Canada's chief lectoral of- leer for 21 years, was in critical tradition in hospital Monday, un- Conscious since he suffered a but attack Jan. 21. Mr. Castonguay 75 - year - old fllller of Canada’s present chief "federal officer Nelson Caston- 01181. luffered the attack at his here where he has resided one his retirement in 1948. wife, the former Florence _VIlois of Vaudreuil, Que., died list New Year’s_ Eve. ‘Revolt In Venezuela _ Stamped Out VCARACAS, Venezuela (AP)- enezuela’s revolutionary junta “d8y_apparently stamped out ‘ll! serious threat of a counter- :"l_°1t by supporters of ex-dicta- cos Perez Jiminez. Junta sources said peace has restored to 95 per cent of _ _o1l-rich Latin republic. Perez “mile! supporters, who had ken up into small bands of tmchllle - gunners, were being- Vllled out. Reports from Venezuelan cities‘ ‘M towns told of raids by civil- M Vlgllantes and junta author- oti on headquarters and hide- "5 Of Perez Jiminez' secret po- °°_- Scores of former police and .n°d1P_lnformers were rounded up W Jailed. Dozens were killed or !°°“11ded attempting to flee. One "“§l‘_Doltice chief killed himself. Jun 11 tightened its guards Eilgllind all foreign embassies, par- ereaflbf those where ministers of illmlnez have taken refuge. onlfiime Will T9": P. M. Says ,,,2'r’TAWA (CP) _ Prime illn- Wil u when asked l\l0ll(la_\' in Inmons by Rev. Dan Mc- ment I-Fort William) to com- thatP°n_ published speculation . arhame-nt's current session ‘N Wednesday. Ivor ( Diefenbaker said “only time’ Aflfiflflj II DQCODGMI Chg Man by “I. pin-ll ‘Elli. 0I.t|w; OFFICERS OF the Agricul- tural Council consisting of mem- bers of the_technical staffs of the Provincial and Federal De- Dartments, of Agriculture here Lare (left to right) Gordon C. Warren. past president; H. L. The _11th annual Dominion- Provmclal agricultural confer- ence opened here at Birch Court yesterday with the president, F. M. Cannon, presiding. Members were complimented on their preparation of mimeo- graphed material for study by conference members. New members and those who have been absent for one year or more are Roy Crawford, C. Mul- lins. Miss Teresa Macleod, Miss Audrey MacMillan, Miss Jessie Bmgham, Don Smith, David Pea- cock. David Rogers. Dr. Dean Robinson. ‘ Hon._ Eugene Cullen, Minister of Agriculture stressed that ways and means must be found to sell ideas get information to the far- mer. He complimented the ser- vices of both the Provincial and Federal departments on their ef- forts to promote agriculture dur- ing the past year. Stating the main business of the conference Mr. Cannon noted that the p111'P0se,is two-fold. There is an aim to become throughly integrated through an understand- ing of each other’s problems and to study and describe the pro- Post Office MacLaren, vice-president; F. M. Cannon, president; W. E. Smith, secretary; _S. C. Wright, a for- lrner president who is Deputy Min- ‘ister of Agriculture. The coun- lcil is presently holding its an- lnual conference at Birch Court. Ilth Agricultural Conference OpensiAt Birch Court Here blems that exist in agriculture and to suggest possible remidies to the departments of agriculture and also to branches of private gildustry concerned with agricul- re. . S. C. Wright, deputy minister of agriculture, stressed the excel- lent record in production and quality of butter and cheese dur- ing the past year. Reporting on behalf of their de- partments were Mr. Wright for the provincial department of agriculture, Dr. G.‘ C. Fisher with the provincial veterinary service, Dr. C. K. Gunn for the experi- mental Fur Farm at Summerside, reported on experiments in feed- ing mink with a view to reducing costs. G. C. Warren reported for the Experimental farm, R. R. Hurst, G.W. Ayers, E.W. Campbell, L. C. Callbeck and Dr. Dean Robinson reported on work con- ducted. by the" laboratory of ~'plant pathology. D. C. Read reported for the work of the entomological laboratory,.H. L. MacLaren for seed potato certification and E. B. Ellis for the fruit and vege- table divisioh.~- I = -- N-S. Prepared To Negotiate OTTAWA (CP)—The Nova Sco- tia government has indicated it wants to negotiate a hospital in- surance agreement with the fed- eral government, Health Minister J. Waldo Montelth said Monday. He made this statement in the Commons on reply to a question from Robert McCleave (PC——Hal- ifax). Mr. Mon-teith also told the House that he has been advised by the Newfoundland government that it will likely be prepared to enter such an agreement as of July 1 of this year. LETTER FROM N.B. Asked by Paul Martin (L—Es- sex East) whether letter from New Brunswick has been re- ceived aking for clarification‘ of the federal government’s posi- tion, he said he believes this is so but would have to make inquir- res. He also told Stanley Knowles (CCF —— Winnipeg North Centre) he would have to inquire as to whether word has been received from Manitoba on its willingness to enter. Shortly before Maiday’s Com- mons sitting, Mr. Monteith told a reporter following a cabinet meet- ing that he hopes" the federal and Ontario governments will sign an ANKARA, Turkéy (AP)——John Foster Dulles told the Baglldad pact allies Monday that the United States stands ready to strike back against aggression to save the Middle East from “the scourge of invasion." The U.S. state secretary spoke in a flag-draped hall with dele- gates assembled for the opening meeting of the pacL's council of ministers. After hearing a call from lead- ers of Turkey. Iran, Iraq and Pakistan for more and u gent aid, Dulles said: “The Baghdad pact group Ol countries can be confident that ([15,) mobile power "of great force would, as needed, be brought to bear against any Com- munist aggrcssloll. EFFECTIVE DETF".liENT “And by the same token any such potential a§§.’1‘e5501‘ K30“ in Hospital Insurance Plan agreement on the hospital plan "as soon as possible." He said Ontario officials now are conducting negotiations with federal authorities here, but he declined to comment directly on a Toronto report Saturday that an agreement would‘ be signed this week. Mr. Mon-teitli announced Jan..10 that -the government plans at the next session of Parliament to amend existing legislation on the hospital plan so that any province ready by July 1 can get federal benefi/ts—rou-ghly half the cost of diagnostic and standard hospital services. As the legislation now stands, at least six provinces with a ma- jority of Canada’s population must sign agreements and have necessary provincial legislation in force before federal payments can be made to any one prov- ince. No agreements have been signed yet. Mr. Monteith told the Commons earlier this month that he ex- pected British Columbia, Alberta and Saskatchewan w o u l d be ready to start federally-supported hospital insurance schemes July 1, and possibly also Newfound- land. advance his losses from aggres- sion would far exceed any POS- sible gains. This is an effective deterrent to 833955103 and 5 guarantee of peace.:’ But he told the allies they must have their own “forces of na- tional defences." Foreign secretary Selwyn Lloyd of Britain warned of ulterior mo- tives in Soviet “g00dWi1l" ges- tures toward Arab ilations. Far from seeking goodwlll. he Saldy they were “concerned solely with furthering Il“.1I‘ own 0l3J6CllV9S- Lloyd said Britain is not op- posed to a summit conference with the Russians “if it seems that a summit meeting would be the best“\i'ay to get agreement." But it must be preceded by care- ful preparallons. _ Lloyd noted that Russia re- mains“as hostile as ever” to- ward the Baghdad pact and con- @1112 @11fl1‘l0li®1‘llL "Covers Prince Edward Island Like The Dew” CHARLOTTETOWN CANADA, TUESDAY, JANUARY 28, 1958 lQueen Mother 2 Leaves London‘ 'By Air Today LONDON (Reuters) —- Queen Mother Elizabeth spent Monday night with Princess Margaret be- fore setting off today on-her in- formal “meet the peltple” tour of Australia and New Zealand. Monday she received the high commissioners of Australia and New Zealand, Sir Eric Harrison and Sir. Clifton Webb, at Clar- ence House, her London home. Queen Elizabeth and the Duke, of Edinburgh will join Princess Margaret at London airport today at 8 -a.m. GMT to see the Queen Mother off. "When she lands here again March 10 she will have flown round the world—the first mem- ber of the Royal Family to do so. The first leg of her 25,800-mile trip will be to the Fiji Islands via Montreal, Vancouver and Honolulu. Her DC-7C is scheduled to arrive at Dorval, Que., airport near Montreal at 1:45 p.'m. EST today instead of 4 p.m. as origin- ally scheduled. She will leave for Vancouver at 3 p.m. after hav- ‘lng tea ‘with Governor-General Massey in his private railway car on a siding near the airport. Floods team In Areas Of Nevli /England BOSTON (AP) — Sections of New England Monday faced their greatest flood threat since punish- ing Hurricane Diane struck the area in 1955. Greater Boston appeared hit the hardest as both the Charles and Neponset river-s overflowed their banks, flooded lowlands and in- undated highways. Thousands of cellars were flooded and the Mas- sachusetts civil‘ d e fe n c e was placed on an operational basis. No relief appeared in sight as the weather bureau predicted more rain today. Army engineers kept a close watch of streams. They regulated the Mansfield Hollow, north of Willimantic, Conn., and the Ed- ward Macdow l dam four miles west of Peterborough, N.N. About 150 families at York and York Beach, Maine, were without central heat as streets were flooded to two and three ‘feet. Merchants used rcvboats to go back and forth between stores on Main Street. The weather bureau said it is the wettest January since records were started in 1870. The downpour during the week- end and part of Monday brought the‘ total to 8.66 inches. The pre- vious January record was 7.60 in tinues to attack it in its propa- sands. 1878. Dulles Promises Military Backing For Baghdad Pact Explosions of two bombs startled this ccnfc 'ence capital in the pre-dawn darkness before the conference opened. . One blew out the wall of a warehouse in the U.S. Embassy compound. The other splintered the windows and damaged the stocks of a private American bookstore which is sometimes mistaken for a U.S. information service library, 100 yards away. Premier Adnan Menderes of Turkey ordered a.n extra guard thrown around American installa- tions. In parliament, Ieputy Baha Aksit said the bombings were “no doubt instigated ‘by Communists." “They"want to destroy Turkish- American friendship, but this is too soundly based, too strong to be affected by such means,” he said. The National Asse; lbly unani- m0l1S1Y adopted a resolution sup- Portini his views. the flow of water on two dams— * All Opposition Support New FIXED YEARLY AMOUNTS eral Government's announcement regarding the increase pital grants per bed did not af- ly hospital grants over a five year V period. The Minister stated that his re- marks of the previous day in which he expressed pleasure at the increase in grantsgwere based on the assumption that the total . grant was geing increased. How- ever up to this time there has been no indication that such an increase would be forthcoming under the new scheme. Dr. Bonnell stated it would mean greater assistance to hos- pitals with building programs now under consideration but since the yearly grant to the province is fixed, no additional moneys would be available for the over-all,pro- gram. MATCHING GRANT He explained that the yearly grant to Prince Edward Island for the next five years would be approximately $43,872. For every dollar which the Province spends in grants to hospital construction the Federal Govermnent matches it up to the $43,872. If, on the ‘other hand the Province were to spend less than this amount, only the smaller amount would be for- thcorning from the Federal Trea- sury. Hospital construction, he said was a three-way split with Fed- oral and Provincial governments contributing on the basis of $2,000 apiece for each active treatment bed. However when the total cost per bed is less than $6,000 the federal provincial contribu- tions are" based on one-third the actual cost. ' SUBSTANTIAL HELP ‘ Dr. Bonnell said the Prince Ed- ward Island Hospital, on the basis of their project submitted at the present time would be eligible to receive from the Federal Govern- ment $90,500 in addition to $126,- 900 which they would ordinarily have received before the new an- nouncement was made. The Charlottetown Hospital on the basis of present proposals sub- mitted would receive an addi- 501131 $40,250 over and above the $71,500 they would receive under previous agreements. In each case the province would match this amount. Dr. Bonnell said a hospital sur- vey will be conducted in the Province by a tea.m of hospital consultants. Any further needs for hospital expansion in the \Pro- vmce would be. based on the find- ings of the survey, he said. The Minister said the survey which is expected to take from three to six months will greatly assist the Government in obtain- ing information regarding the anticipated building and expan- sion needs in parts of the Pro- vinceother than Charlottetown. OFFICIALS PLEASED Officials of both local hospitals expressed pleasure at the federal government's announcement. While praising the govern- ment’s decision to boost the health grants, Dr. J. W. Mac- Kenzie, chairman of the Board of PARLIAMENT AT A GLANCE By THE CANADIAN PRESS Monday All opposition parties, although critical of the government’s methods, indicated approval of new federal tax concessions to the provinces. Finance Minister Donald Flem- ing said the government recog- nizes that too much of the Cana- dian tax dollar is going into the federal treasury. Former Liberal prime minister St. Laurent said he doubts the government will call another fed- eral-provincial fiscal conference until after June 30. Deputy CCF Leader Stanley Knowles accused the government of presenting its new tax-sh ing proposal to the provinces on ii take-it-or-leave-it basis. Social Credit Leader Solon Low said the government is ere ting walls to bolster excuses fo not reconvening the federal - provin- cial conference. Prime M i n i s t e r Diefenba- ker said it would be “nonsense" to say that Canadian relations with the United States are strained. Tuesday The Commons meets at 2:30 p.m. EST to debate federal-pro- vincial tax sharing. The Senate in hos- feet the existing ceiling under which the Provinces receive year- Trustees of the Prince Edward Island Hospital stated that hos- pitals also required assistance to provide basic facilities such as kitchens and laundries Mr. Leo F. MacDonald, secre- tary to the Board of Trustees of the Charlottetown Hospital said that the increase “will help “The extra amount of $2.500,000 we are to get from the Federal government is not enough. We asked for $5,000,000 additional,” Premier A. W. Matheson said last evening. And, the Premier add- ed," we are not getting as much out of the new arrangement as the Canadian Press says we are getting." The Premier said that when they presented their case to the Dominion -Provincial conference last fall “we asked for $5,000,000 and we presented a model budge iii which we proved that we need- ed that amoun ” if our people were to enjoy a standard of ser- vices equal to the rest of Canada and if we were to pay our teach- ers adequate salaries, build and maintain our roads etc.” “We. showed them further that we need that amount because we are committed to undertake a scheme of health insurance, in- volving hospital care and diag- nostic services, in 1959," The Premier emphasized. Mr. Matheson said that the pro- ‘vince will be getting the $4,136,- 000 which it was getting under the old agreement, plus the $2,500,000 which is its share of the special grant to the Atlantic Provinces. But, he added, “we are not gett- ing the $370,000 that the Cana- dian Press said we were getting as our share of the extra three percent of Federal income tax.” The figure they quoted is ap- proximately correct so far as it goes, the Premier explained but from that amount must be sub- stracted the stabilization grant we were getting, under the old agreement. - (A Canadian Press story late last night quoted Finance .Min- Says Ceiling Unaffected By New Hospital Grants Health Minister M. L. Bonnell stated yesterday that the Fed- greatly to offset costs in the construction of a new nurses residence, preliminary plans of which have already been sub- mitted to the Provincial Depart- ment of Health.” A hospital for the chronically ill was also in the planning stage, Mr. MacDonald noted. Extra Money Not Enough For Needs Here, Premie-rSays ister Donald Fleming in the same vein. Mr. Fleming said that Prince Edward Island will get nothing additional under this category. The stabilization grant was made available to this province and to British Columbia under the old agreement to ensure that the total of the money received out of existing five-year federal- provincial tax sharing arrange- ments at‘ least matches yields from the previous 1952-57 tax ren- tal pact. Enlarging on his charge that the amount being received is not enough, the Premier observed that New Brunswick and Nova Scotia declare surpluses each year yet they are getting an additional amount of ten million a year each.’ Algonquin And Nootka Collide HALIFAX (CP), -— The dp- stroyer - escorts Algonquin and Nootka collided Simday while taking part in Caribbean exer- cises but the navy said damage was “slight.” The accident was disclosed here Monday by naval officials aged at the bow and the Nootka’s port plates were dented, when the ships came together during the anti - submarine exercises. There were no injuries, and the ships will continue the exercises without repairs. The ships are part of a 12- vessel Ca adian fleet taking part in the drill. They left here last OTTAWA (CP) — Both British Columbia and Prince Edward Is- land will get less than antici- pated under the new federal tax concessions. Other provinces will get slightly more. Finance Minister Fleming, in tabling revised figures in the Commons. Monday, said original figures he gave the House last Saturday did not take stabiliza- tion paymeuts into account. Stabilization payments h a v e been paid to B.C. and P.E.I. to make sure that their yields out of existing five-year federal-pro- vincial tax-sharing arrangements at least match yields from the previous .1952-57 tax rental pact. Mr. Fleming announced that B.C., instead of getting an in- crease of $5,563,000 "in the next fiscal year, will get only $2,842,- 000 out of the federal proposal to increase the provincial portion of the federal personal income tax to 13 per cent from 10. N0 P.E.I. INCREASE Prince Edward Island, which Mr. Fleming previously figured Monday. P.E.|. To Get Less Than Anticipated would get an increase of $370,000 actually will get no increase. However, she will benefit from the $25,000,000-a-year special pay- lments for the Atlantic provinces. Ontario will get an increase of $22,315,000 instead of $21,316,000; Quebec $18,859,000 instead of $17,780,000. Increases for other provinces with Mr. Fleming's previous calculations in brack- ets: Newfoundland $1,686- 000 ($1,595,000) Nova Scotia $2,- 784,000 ($2,627,000) New Bruns- wick $2,236,000 ($2,111,000) Man- itoba $3,405,000 ($3,219,000) Sask- atchewan $3,481,000 ($3,290,000); Alberta $4,595,000 ($4,335,000). The estimated total tax-sharing benefits to the provinces in the 1958-59 fiscal year, starting April 1: ‘ Ontario $238,326,000; Quebec $197,861,000; Newfoundland $17,- 714,000; P.E.I. $4,136,000; Nova Scotia $29,191,000; New Bruns- wick $23,490,000; Manitoba $35,- 755,000; Saskatchewan $36,552,- 000; Alberta $48,231,000; British lColumbia $61,825,000. WEATHER Overcast with occasional snowflurriest continuing very mild; northeast winds 20. Low-high at Charlottetown 28 and 35. NOT MORE THAN Parties To ax Hear Charges Of Payoff, Provinces Not Consulted "OTTAWA (CP)—-All opposition parties in the Commons indicated quickly Monday they intend to facilitate swift passage of the Progressive Conservative govern- ment’s new tax concessions to the provinces. But there were charges the new administration had not consulted adequately with the provinces had tossed the tax proposal into their laps without asking whether they liked it; and had given the Atlantic region “charity” instead of basing adjustment grants on a national formula. Erhart Regier (CCF—Burnaby- Coquitlam) said that when he looked at what Ontario would get out of the new split—an increase of $21,000,000 a year—he could not help feeling Prime Minister Diet- enbaker was paying off Conserva- tive Premier Frost for his help in last year‘: federal election campaign. And the special grants to the Atlantic provinces were also a “part payoff for the last elec- tio_l:l,” the British Columbia MP sai . FINANCE RESOLUTION Finance Minister Donald Flem- -ing initiated what is expected to be a two-day debate by introduc- ing a resolution on his tax propo- sals providing: 1. A boost to 13 per cent from 10 per cent in the portion .of the federal p e r s_o 11 al income tax turned over to the provinces. This measure is for one fiscal year only, starting April 1. 2. Special grants of $25,000,000 annually for the next four fiscal years to be divided among the four Atlantic provinces on the basis of $7,500,000 each for New- foundland, Nova Scotia and New Brunswick and $2,500,000 for Prince Edward Island., The bigger tax hand-over, to- gether with share - the - ‘wealth equalization payments that go «with it to the less wealthy prov- inces, would amount to about $62,203,000 a year, bringing total federal tax costs in provincial concessions to an estimated $693,- who said the Algonquin was dam- 081000 The extra $25, .000 to the At- lantic region wo yd bring the fed-‘ eral concessions to about $718,- PREMIERS INFORMED ‘ As he opened debate, Mr. Flem- ing denied that the Conservatives had placed ‘the tax concessions before the provinces on a take-it- or-leave-it basis. Telegrams had been sent out to the premiers Fri- day informing them of the “‘in- terim” concession. A fiscal conference was held last November and the govern- ment had intended to call another this month but couldn't do so be- cause of the rigorous duties of a "protracted" session of Parlia- ment. Stanley Knowles, deputy CCF leader, said this would make peo- ple laugh. Everyone was aware that members of the Commons would have been glad to adjourn for a few days or even a week if a new conference was called. The in e m b e r for Winnipeg North Centre said the Conserva- tives had not even taken the trouble to find out whether the premiers had received Friday's telegrams. As for the Atlantic grants, the four provinces were being placed in the embarrassing position of receiving “handouts” and “char- ity” instead of their needs being based on 1-: payments formula which could be applied to other provinces. ‘‘I suggest that if there is any shame it is to be heaped upon the government for once again put- ting the Atlantic provinces in the position that they are getting a form of charity rather than some- thing which is their right on the basis of a principle adopted by Parliament." I-Ie and other opposition speak- ers indicated, however, they will WASHINGTON (AP) The Eisenhower administration asked Congress Monday for authority to lgive U.S. allies hitherto secert ‘atomic-weapons information, as well as raw-materials and weapon components. The Atomic Energy Commis- sion offered proposed legislation to carry out President Eisenhow- er‘s recommendations for build- ing up atomic defences and avoid- ing duplication of scientific work among allies. AEC Chair in a 11 Lewis L. Strauss proposed that Eisenhower be given discretion to exchange any atomic-weapon information with an ally which is making sits at 8 pm. “substantial and material contri- butions to the national defence and security.” The authorizations provided by AEC’s proposed amendments to the Atomic Energy Act would stop short of providing for trans- fer of complete atomic weapons to other countries. Strauss said “it is not the in- tent . . . to promote the entry of additional nations into the atomic weapons field.” The pro- posed legislation is worded to en- courage “exchanges" of informa- tion with nations already active in the field——presumably Britain, Canada and possibly France. In Ottawa officials said the atomic - information legislation will not change the present flow U.S. Gov't Would Take Wraps Off Atomic Data of information between Canada and the United States. Canada’s interest in atomic research and development is exclusively for peacetime purposes. The country’s‘concern for up- to-date information on the effects of nuclear and thermonuclear ex- plosions ‘of all scales had been for purposes of civil defence and mil- itary planning. Officials said Can- ada’s requirements in those fields already were being met. In any event, the channel through which information would be exchanged would continue to I board. FIVE CENTS‘ Deal support the measure because of provincial need. St. Laurent said he doubts the Conservatives will call a new fed- eral-provincial fiscal conference in the first half of 1958. He suggested the increase in the tax concession was merely an extension of Liberal party policy since the previous administration had brought in the existing for- mula. “ Mr. St. Laurent said he thought from Mr. ‘Diefenbakers election promises last year that the fed- eral - provincial -fiscal problem would have been settled last No- vember. There still was doubt as to when that settlement would come. He observed also that the in- crease for Ontario—about $22,000,- 000—was only a action of the $100,000,000 which Premier Frost had stated last year was abso- lutely essential for his govern- ment. Solon Low, Social Credit leader, sided with Mr. Knowles in oppo- sition criticism. He said the At- lantic payment, instead of being based on a formula, was pulled out of a hat. (Earlier, correspondence be- tween Mr. Diefenbaker and Pre- mier Stanfield of Nova Scotia, spokesman for the Atlantic pre- miers, was tabled in the Com- mons. In one -letter, Premier Stanfield outlined a formula that he said had been worked out by the Atlantic premiers, adding "this would bring the special grants to the four Atlantic prov- inces somehwere in the vicinity of $25,000,000. . . ."). BOLSTER EXCUSES The government, Mr, Low said, was erecting walls to‘ bolster ex- "cu’ses'for"i'iot reconvening the fed- eral - provincial conference. The new financial assistance would help the provinces but the gov- ernment should make abundantly clear that it‘ planned to reconvene the conference as soon as pos- -sible. Mr. Fleming said the $25,000,- 000-a-year payment for the Atlan- tic region approximates a com- plex payments formula worked out among the four provinces. The payment was justified by the economic facts of life; all prov- inces agreed at the November fis- cal meeting that no obstacles should be put in the way of recog- nizing the Atlantic region's spe- cial fiscal needs. As for the tax change, the Con- servative administration recog- nized the heavy burdens carried by the municipalities. “We are federalists, not cen- tralists,” he said. The govern- ment had to take into considera- tion that too much of the "ana- dian tax do at was going into the federal treas ry. AID MUNICIPALITIES The tax concession would give the municipalities “powerful aid" in financing new works and thus providing more jobs for the un- employed. The tax change retained “full recognition" of the share - the- wealth equalization principle; the amount going to the provinces would be calculated on 1957 rates of taxes; the change would have no bearing on the present royal commission inquiring into how Newfoundland, is afring finan- cially under Confederation. J. W. Pickersgill (L—Bona- vista-Twillingate) aid the gov- ernment maintaine the equaliza- tion principle only because Pre- miers Campbell of Liberal Mani- toba, Douglas of CCF Saskatch- ewan, Manning of Social Credit Alberta and others had insisted on this point last. November. He said the special grants to the Maritimes also should be made available to Manitoba if the need arises. Lost Rabbit Hunters Safe Q ers Donald and Ernie Marriott and George Doucette, all of nearby Kline Heights, walked out of the woods Monday after being lost since Saturday. The trio, all in their 20s, suf- DOUBTS NEW TALKS 5 ’ Former Liberal prime minister ) V HALIFAX, (CP)—Rabbit hunt. . ..-:-.-_~_ .-__ .___ A - __ _ _-__.; ..-IV_._, .. .,__.._.._._ , fered no ill effects. They came out of the woods at Green Head, about six miles from here. I E PROTEST BOMB TESTS I NEW YORK (AP) _. A Second 3 World War navy commander says he plans to sail a/30-foot ketch into the U.S. Pacific Ocean nuclear bomb test area as a pro- test against the tests. Now an architect, Albert Bigelow, 51, of be the liaison offices in Wash- Cos Cob, Conn., said Sunday three lngton of the national research other men will sail with him and council and the defence research remain in the test area “come what may."