v Ry HENRY S. BRADSHER M O S C 0 W (AP) —- Nikita Khrushchev is out of power in the Soviet Union—officially be. cause of his age and health but no doubt under the weight also of Peking - Moscow repercus- sions and the shortcomings of the Soviet economy. ALEXEI KOSYGIN New Premier ' The announcement of his de- parture came at midnight. along with the disclosure that his protege, Leonid Brezhnev, has taken the key Communist party post Khrushchev held, and Alexei Kosygin has suc- ceeded Khrushchev as premier in a division of the top jobs. LEON") BREZHNEV Party Secretary Khrushchev Policies Expected By Ottawa OTTAWA (CP) — Political power in the Soviet Union was divided three ways in 1953 when Stalin died and Nikita Khrush- ' As far as is known so fai- the chief exponents of Comma ,nist China‘s harder line in deni- ing with the West have noi Chev emerged eventually as tho .‘emerged into new positions of victor. This time. in unofficial views expressed here Thursday night. the power has been divided two ways between Leonid Brezhnev, first secretary of the Commu—l nist party. and new Premier: Alexei Nikola'yevich Kosygin. Both are regarded as Khrush- chev proteges. especially Brezh- nev. a close associa of the fallen premier since acting as his deputy in the Ukraine in 1939 it is, therefore tentatively ex-‘ pected the new "tea " will follow Khrushchev's policies fairly closely. I Washington Suggests Maior Policy Issues By THE ASSOCIATED PRESS The retirement of Premier Khrushchev hit with stunning impact in the non-Soviet Com- munist world. Western countries, preoccu- pied with problems such as the British election and the Ameri- can election campaigning, ap- ~ 7 party officials talking privately po peared to take a surprised am. wondering bystander role. In New York, President John- son said the replacement oi Khrushchev may or may not be a sign of big turmoil or changes to come. but that the American people would remain steadfast. He told a rally of the Liberal party in Madison Square Gar- den there is a need for Ameri- cans to keep steady in their goals. “We will be firm. but we will be restrained." he said “We can meet any test but our quest is always for peace. MUST EYE STARS "We must keep our eyes the stars but our feet. both of them. on the ground. We do not want to bury anyone anywhese and we do not intend to be bur led ourselves." In Washington, officials ex- pressed belief Khrushchev was forced out because of major is sues of policy. Speculation centred on the probability that others in the Soviet ruling group were dis- pleased primarily with Khrusn- chev's handling of the problem of ties within the Communist Bloc—a problem arising out oi the split between Russian and Communist China. in the us. view it is consid- ered likely that Khrushchev's critics felt the Soviet Union had lost too much influence with the Cornmunist countries of Eastern Europe. which have shown in- creasing independence, and with Communist parties in Western Oil Europe. Red China, with probably the most at stake im late in the switch of Kremlin controls. merely reported what the Soviet Tass agsnc said: “That Khrushchev had been released from his posts. There was no lmmedilte Chinese comment on Reaction At A Glance By m ASSOCIATED mass at a glance to the Nikita Khrushchev In [to- U.S. officials believe major issues of pol'cy led to retirement. with loss of influence in Eastern Europe a factor. Reaction downfall of W III to a victory for Mao Tse-tung Ind conceivably could open the way to Soviet-China reconcilis ties. . Vienna -— liberalisation of regimes in Eastern Euope may be halted. at lent temporarily. replacement. But there were no power in the Kremlin shakeup There were plenty of ques- tions being asked here aboui the reasons for Khrushcev‘s answers. at least not immedi ately. The attitude tpward the power shift in Moscow was far more relaxed than in 1956. The inter national atmosphere has changed immeasurably since then. There a p p e a r e (1 little worry here that. the Kremlin changes might bring on a criti- cal stage in relations with the West. the seeming downfall of the No. 1 enemy of Communist China in the ideological struggle. WAS PRO-K But there were signs of con sternation in Yugoslavia. where President Tito has been pro- Khrushchev. In Belgrade. government and used words such as “shocked.” “dismayed,” "dumbfounded ." People in the street seemed to find it hard to believe. In Rome, leaders of the list- ian Communist party met in emergency 5 e s s i o n Thurs- day night for an examination of the situation. Word of the change created a sensation in ltalian non-Com munist political circles. In Paris. Premier George Pompidou called in acting For eign Minister Louis .one, pre- sumably to discuss the Moscow move in the absence of Presi dent Charles de Gaulle. in Bra- zil winding up a South Amer] can goodwill tour. In Ottawa. John Diefenbaker, leader of the Progressive Con- servative party. said events will show quickly whether an at- tempt will be made to bridge the Soviet-Chinese split or to orient Russian policy still more orld Pond Peking-Moscow Quarrel Seen Factor In leadership Change out, the party will continue to carry out policies of destalinization and economic improvements as outlined in past years by the party. It said in bold tvp llme Soviet Union firmly and con- Leninist general out at the 20th and 22nd con- grosses." VIGOROUS SPEECH Khrushchev delivered his vig orous speech against Staiinism at the 20th congress in 1956. The 22nd congress in 1961 set long-term goals for improved economic conditions and the at- tainment of communist goals. The statement appeared to be ai ed at reassuring Russian readers that, the shift of lead- to evils that Khrushchev ascribed to/Joseph Stalin - and to tell them they still can hope for better livmg con- ditions. The shift in leadership opens the possibilities of policy changes. however. Most dram- atic be an attempt at reconciliation between Moscow and Peking. This would pose new questions of Soviet rela- tions with the West. Brezhnev. at 57, is 13 years younger than Khrushchev. Kosygin is 60. The shifts mean. in any event that the 10-year Khrushchev lcra is over. It embraced cold is co - existence. and brought. a liberalization of the regimes in E astern Eurooe which now seems likely to go into .abeyance. at least for the time being. The announcement saii'. Khrushcbcv's release—this was Tass' word—was granted this week. The party central com mittee met Wednesday to take up his request for retirement. it added. His release as first secretary was agr Wednesday and his retirement as premier was voted Thurs- B ay. The action closes a decade during which Khrushchev dom inated most of the Communist world. He wound up with the red world shaken as Lenin and Stalin never could have lmsg ined—in the midst of an ideolog- ical scramble with Red China. REMAINS 'ro BE SEEN What effect the changes wilt have on the Soviet Union’s rs lations with the West remains t n s w . In the eyes of Western dipio mats. Brezhnev has seemed 0 take action and to speak in a responsible way. always. of course, within the Soviet view- i t n . Kosygin has been-a leading“ spokesman on the Soviet side in the dispute with China. a quar~ rel that has tended at times to take some of the heat off US.- Soviet relations. Poor health, and conceivably an appraisal of poor results, Were probably the factors be- hind Khrushchev‘s fall from power just three weeks before e hoped to preside over a triumphant celebration of the 47th anniversary of Boi- shevik revolution. The decision that Khrushchev must go was reached at a ses sion of the central committee of the Communist party which gen M o n d a y. informants id. GIVES IEY ADDRESS Mikhail Suslov. another spokesman in the Kremlin's dispute with Communist Chins. delivered the key address. Sus- lov has appeared at times to be 38' toward the West. ml! KHBUSKOHEV on sat-Ar 10 Years is one. (Continued on page 3, col. 5) Five hours later Pravda came . with a strong indication ' , e; Communist party of the sistently carries into life the ' line worked ership would not mean a return uni-x: u .. , :: "v “ We ers Effect As ikita “Out”? “Covers Prince Edward Island Like The Dew” VOL. LXXVII. NO. 246 CHARLOTTETOWN,ECAN‘ADA—n FRIOAY: COUNT RESUMES TODAY Mounting U.K. Returns _ Point To labor Victory who @tmrdiom '6orosnn7si‘nn: Pearson Warns Extremists TORONTO (CPi—Prime Min- ister Pearson called on "true Canadians" Thursday to over- whelm by demonstrations of loyalty an extremist minority that would destroy the count.\'. He warned violence - minded separatists in Quebec they will not be able to “blackmail” th: rest of the country into meeting minority demands. l-le defended his government's decision to go ahead with Queen Elizabeth’s visit to Canada Oct. 5-13 in the face of threats and demonstrations by Quebec sep- aratists that received sive and exaggerated" publicity in some case . Mr. Pearson told a luncheon meeting of the Empire Club of Toronto’he was subjected to "worry. anxiety and indeed pressure . . . from a few extre- mists in one part of Canada.“ “The purpose of these crude threats and pressures was to get the government to cancel (the extremistsi a prestige and authority which they did IIOL deserve and should not have. . . "To cancel the visit in the face of threats of this kind would have been their triumph and our humiliation." Mr Pearson said the Queen's visit gave millions an opportu- nity to express “the alty, respect and affection of all true Canadians for the person and office of Her Ma'jes y." But the visit also “underlined in an unhappy way—indeed. in a humiliating way—that there is a small minority that would destroy our country." “exces- . ii'ON'i-iALs PERSNAL of Commons yesterday. Wil- son's party apparently won the national election. ending 13 years of Conservative Party Harold Wilson. British Labor Party leader, raises his hands after winning election to retain his seat in the House VICTRY rule. Wilson himself. however, held off from claiming victory for his party i i iported. Labor bad polled headed election. ’I‘EAN NO'I‘ MORE Wilson Hailing By JOSEPH MacSWEEN SEVEN CENTS 14 PAGES ' Backers Win gmeniaiors with its strength in LONDON ‘CP’-'H3T°ld w" -the north. which a p pe a r e d two-thirds in Britain's general computers son's Labor“ Party alilfteiil't’t‘lgreater than in the Midlands for Victory over the and the south. ruling Conservatives today with of the seats VICTORY PREDICTED From early in the counting. predicted a Labor Reuters news agency reportedfliclnry by anything up to so at 3:15 am. Labor appeared to ‘ seats. have won the election "but with only a very slim working ma- secr9tary. jority in Parliament." The Labor party’s general Len Williams. told reporters: "We will get a ma- Skyroc kets flared into the joritynof 30 seats -— probably rain-heavy clouds over London more. ialists celebrated. con—1 fident that Wilson had toppledil Prime Minister Sir Alec Doug- Who failed The three members of Doug- as - ' Homes old government to win reelection . Home and ended 13 years were Health Minister Anthony his lot Conservative rule. ar ‘ Wilson himself held off ister Geoffrey Rippon, 40. Postmaster - General Reginald But from claiming victory. her. 44. Public Works Min- InterViewed on tel e vision 3Bevins. 56. passed the . scribed the results r's avor. The party' a 3.5-per-cent swing for victory. ’ With 400 of the 630 seats re, 46.1 Labo needed 1 (AP Wirpphom) per cent of the votes cast com- . ‘. pare the royal visit and give them. Federal-Provincia OTTAWA (CP) A federal<.t.o go on for two or three. full provincial conference which: ay most premiers hailed as their; What most, of them were haw completion with one 32-minutement on a formula under which: $5540" Thurgday an" .Chum‘lthe British North America Act mg thmugh "5 agenda '“ rec'ican be brought under the final. 0rd Wee“ Wednes‘jay' ljurisdiction of the Canadian; lsbellAims At Coast Of N. Carolina MIAMI,'Fla~. (AP) —- Hurri- cane Isbeli, crossing up the weather bureau. swung today into a broad turn that aimed her loo-mite an hour winds at the North Carolina coast. An early advisory note said the hurricane was expected In make a right turn away from land. But 1% hours later. lsbeii had s ung instead to the left. An“. agreeing on a {OI-muiaIParliameni. Since Confedera-‘ and deciding on terms for alliament has had to give final‘ sweeping study of the tax struc-x turc. the premiers tapered off their deliberations Tiursday with a short discussion on ad-. surround the proposed Canada Pension Plan. "I think this is the most fruit- said a beaming Premier Le-i. . ‘ sage of Quebec as he left the. OTTAWA «CPI—Justice. Min- ornatc meeting room in Parlia-Iister Favreau told the Com- “Very productive"! was mynew formula to bring home the way premier Stanfield of NovalCanadian constitution “guaran- Scotia described the sessions.”ees the d'gnlty 0‘ Canada 811d ministrative problems that may. ful conference .we've ever had." mcnt Hill's west block. lmons Thursday the proposed which were originally expectedlgfmlixt; 0{ each of its 20v- A stil bigger turn then was forecast and North Carolina residents were warned that hur- rican force winds and high tides probably will reach the coast in the afternoon. Gale warnings and s hurri- cane watch were Lssued from Charleston. SC. northward through North Carolina. label] was centred about 240 miles east of Brunswick, Ga, and was moving north at 9.5 miles an hour. ' ' He re ortcd to the House on WI'son Receives the. adogtion Wpdnescfiay by itf o ifederal- rovincia con erence o Vast MO'OI'iTY la formilla under which the Ca- lnadian Parliament will be able LONDON (Reuters) — Har- . men constitution with- old Wilson. leader of the La {out getting final approval from her party. was re - elected at Westminster. "Pylon. Livem°°l With a m" l Both Canadians and Britons 5"“ 0‘ nearly “000-8 "81 ln- lwould be relieved that it would crease over his 1959 edge of 5‘. ino‘ longer be necessary to have 7 " l“ Thurs‘l‘y" national constitutional amendments proved in Westminster. ap— election. Federal Gov't Gives Aid To Renault, Peugeot Cars OTTAWA (CPi—The federal; government has agreed to re-[ mit duties on imported partst manufacde in Quebec by theI provincisily-owned General In- vestment Corporation of Que-i announced Thursday. the Com- m‘ I fill. 1 menu that the ra cabinet "r “0d order will enable the Quebec lib“, 3:, 9mm" Dec 31' mm company to begin production of} . s. i initial plans call for produc- tion of 5.000 cars a year in plant employing 250 persons. :geo. meni in the Commons compon- ents will be bought from Cans- dian parts makers and other csngement for assembling the tory in Quebec to make the cars. under licence from the French companies. Regie Nationals des imported parts used as “There will be a progressive onyme des Automobiles Pen-itinis‘ied automobiles will i Mr. Gordon tabled copies of slot the French companies for. 530- “Mm-'9 Mmmel’i Gordon complicated cabinet order deal- idistribution in Canada and for ing with the tariff remissions. export" The remissions are for a five—i sum“ Immed_ Mr. Gordon said the arrange. ’ments call for a progressivei reduction In the tariff conccs-l lsions over the five-year periodl as was done in an earlier ar- Mr. Gordon said in a state~ General Investment Corpora- Mm Will be imperfect from the ,Swedish Volvo cars at Dart- \ tton will built and equip a fae- French manufacturers. i l mouth. NS. Called ‘Very Productive' most productive yet. breezed to'piest about was reaching agreed: . . . . ta m bring home the conbtifution'itlon, the United Kingsom Par-1i reduction in the proportion of ; fR "MP 1 u a l ass d can} or enau a eugeo cars; sines enaui an ocete An- ion sources are devclo .Th 1. . , M bsllhll devrcc to solve the pay. . sold to the Canadian subsidiaries l me , don‘t know who | Talks approval for any constitutional men me is. Justice Minister F‘avreau was iven a loud. ' ‘ ovation by the Liberal benchesl when he rose in the been agreed upon i429 per cent. :49 per cent. [that election gave the Conserv-i at desk - thumping 31:5,“ imore support in rural constitu- ' “3‘1”th Common! h§d' '9' Thursday to report a formula-wok.s whose returns Wm herpeared to be a real possibility. thatscounicd today. (1 guarantees the dignity of Can, da and the liberty of her prov- nces. The measure must go before all provinaial legislatures and Eboth federal hnuscs before be- with the Conservatives LABOR HAD 46.] PER CENT At the same point in the 1959 l taken by Labor from t general election. Labor bad re-i servatives was ceived 46.1 per cent of the pop- ‘Ranhael merely de- former prime minister as "moder-iMacmillan. also failed to get from Huyton, Liverpool. as WATFORD WAS I“ Maurice MacMiilan. son d Harold ately encouraging." ‘back. was n by m, at point. the results in- {Shirley Summerskill. daughter 'dicat'ed a fou'i-per-cent swing in not Baroness Summerskill. a former health minister in In old post-war Labor government. ilson himself was rot his district near expec back in with a Zlmvoie edge. four times as larg as in 1950. 1' One of the first constituencies he on- Waterford, where II. Tuck. former Me- ular vote and the Conservatives l Gill professor. was the social- arer Final results in; 4 per cent and Labor: 43.11 per cent. The socialists traditionally: make their best showing in ihej ban areas reporting on elec-g night and overnight while! the Conservatives can expect‘ But the Conservative housingl minister. Sir Joseph Keith.‘ commented "it looks as though Labor are going to win." When Wilson spoke. Labor‘ 151 standard - . . Wet. cold conditions in t“ late hours of the day soon c i rently into the turnout which ear. lier showed signs of reaching record proportions. r began to forge ahead about 90 minutes after the be]- lot . counting began. Until then a As the night wore on. Labor moved steadily toward the 50- seat lead it bad to have by the time the overnight counting ended at S a.m. (11 pm. EDT Thursdayl to be certain of vice torv ling submitted to Westminster. “235 “‘0me Sl l E“ l l .V mOI‘el The first seat to report. C el-~ W s rength in crucial Tory . held ‘ ten l tin the country as a whole.. . , These seats were regarded l BlrtlLS.' deaths - - t . .. 3. 12 they key to the contest. 1 Classmt’d - a ~ A ~ - u , 13 The biggest blow to the Tor- ‘ Finance, markets . . . . ., 8 l Comics . ll .feat of three government min- Sport .. .. 9 isters while Labor had its ‘ Women's 7 sharpest setback when Patrick Editorials 4 .Gordon Walker. prospective for- Kings. Queens. Clty ...s. s ‘eign secretary in a socialist Summersido a government, was defeated in Prince Co. ._-.._ s Smethwic OTTAWA a big economic stake in this British election. Either a Labor or Conserva- tive government will face within a matter of days a choice at measures to correct the large British balance of payments def icit. ' The choice could include im ipori restrictions. This would be In setb ck for Canada‘s widen- in: trade surplus with the Brit- ils . However, on British govern- ment is likely to rely entirely on his problem. More probable :is a combination of measures including monetary action and further borrowing from central banks abroad. Canadian officials say they t to expect. But they may not have to wait long. In the second quarter of thi.. year the British deficit was the equivalent of nearly 000. about siiomonoo more than in the first quarter. 1 Canada Has Big Stake In British Election (CPl—Canada has! i Labor's swing surprised com- 1 l Canada has accepted this asl in serious problem by joining? lwiih other countries in a poul‘ got central-bank pledges to make iloans to the British in the event :of a run on sterling, Observcrs hcre are pi‘r‘pai‘Pd\ lto see the British make timber use of international credit in Ibend off anything like the cx‘. change crisis that Canada ex perienced in 1962. Another possibility is higher domestic interest rates to in uce a flow of foreign capital into London. in the cvcnt import restru- tions are imposed. they might take the form of tariff sur charges of the type imposed by Canada to deal with its own sit nation in 1962 dou her British sur- charges would gain as much in- ternational acceptance. especi- ally in a case which is not as serious. and on the eve of the Kennedy round of trade-libero tion negotiations in Geneva. Authorities here express 3mm .11 g h ham. was retained by the (marginal 59315 than it Showed ; Tories but their edge was cut to 5.240 from 9.272. S REDUCE MARGTN The Conservatives also re~ ‘les at that point was the de- laiHEd Bellerlcay. ESL! —-known as something of a bell- weather seat—but their margin was reduced to 1.592 from 4.822. The race between Prime Min- ister Sir Alec Douglas-Home's Tories and Harold Wilson's L8- or challengers went down to he wire in the most dramatic finish in years. Liberal leader Jo Grimond ‘51. conceded at the outset that '. with only seven seats in last Parliament, could not win. Some observers saw an outside chance that Liberals might the balance of ‘er n the event of a stale- (f‘ontinued on page 5 col, 7’ Standings LONDON 'CP'I ROv turns from 429 of can con- stituencies in the Britt election showed the fol- lowing pariy standing at l2140 pm \DT: Conservatives 180 La 247 Liberals I Unreooried am 1 $30 Banks Appears In NY. Court \‘FZW YORK '('l"l Canadian labor boss Hal C. Bank appeared in Federal ,Court here Thursday to give a ideposiiion in a 35.000.000 dam- age suit brought against three . unions by Upper Lakes Shipping Limited of Toronto. Banks. former president of the Seafarers International Iimon of Canada. was in court for a lit 25 minutes and on lieaving refused to answer I‘- lporiers' questions. 5 f. .. . Former .- l