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THOUGHT FOR TODAY Labor saving devices: Machin- ery a man works all his life to pay for. She Oshawa Sunes WEATHER REPORT Cloudy with thu ndershowers to- night. Mainly cloudy and cooler , with 'occasional day. showers Thurs- -_ VOL, 92--NO. 79 OSHAWA, ONTARIO, WEDNESDAY, APRIL 3, 1963 Ottowa end ° for payment Class Mail Post Office in coh. of Postage U.K. Budget To Create Expansion LONDON (CP)--Sweeping tax changes, including reductions in personal income taxes and spe- cial tax concessions to industry, were announced by Britain's treasury chief today as he pre- sented a deficit budget aimed at getting the sluggish British economy moving again. Chancellor of the E: h will be exempted from duty and 17,000 will get some relief. Maudling indicated he favored a general tax on gambling--be- lieved to have a total turnover of about one £1,000,000,000 ($3 000,000,000) a year, but said he could not institute one yet be- cause he did not have enough information. d that the cus- Reginald Maudling, ges tax reliefs, increased persona income tax exemptions for all taxpayers and lowered the tax Tate on all income categories. This step exempted 3,750,000 lower wage earners and retired persons from tax. Higher-paid wage earners got little--a tax reduction of about £6 ($18) for a single man earn- ing £5,000 ($15,000) a year. His total income tax bill now will be £1,427 ($4,381). Maudling cited these exam- ples of tax reductions under the new schedules for men earning 2£840--the national average--an- nually: A single man will pay £5 11 shillings less and have a total income tax bill of £178. A mar- ried man with no children will pay £13 six shillings less whiie a married man with two small children will pay £17 15 shill- ings less than last year. The changes take effect Sat- urday. Maudling announced a con- cession in death duties by in- creasing the tax exemption li- mit to £5,000 from £4,000. He said there also would be some adjustments in the pro- ssive death duty now rang- from one to 80 per cent. Altogether some 12,000 estates US. Satellite Settles Into Oval Orbit CAPE CANAVERAL, Fila. - ' e in 5 today and within two days its sensitive instruments were ex- pected to collect more informa- tion about the earth's atmos- phere than all the knowledge gained through the centuries. The 410-pound ball of instru- ments vaulted skyward Tuesday night atop a three-stage Delta rocket. The launching success was the 16th straight for the re- liable Delta. The National Aeronautics and Space Administration reported good quality signals were being received from the flying labora- tory as it circled the world every 96 minutes in an orbit ranging from 100 to 570 miles Eight measuring instruments encased in the satellite's stain- less steel shell were to record the amount of helium, oxygen and nitrogen gases, neutral par- ticles and electron and ion tem- peratures and densities. Com- parison of the data would help scientists construct a fairly complete chart of the density, composition, temperatures and Pressures of the atmosphere at a time when solar activity has He prop toms and excise department compile a register of gambling institutions. The present taxation system for various forms of gambling has been 'called a jungle. For instance, ordinary soccer pools run by private firms are taxed at 354 per cent while soc- cer betting on fixed odds is tax free. Greyhound racing is taxed while horse racing is not. Maudling said tax conces- sions of £250,000,000 ($750,000,- 000)' were needed to siimulate Britain's economy if it was to realize the target of vigorous expansion without » return to inflation. as Maudling said he would have an urgent investigation made into the practical effects of a "turnover tax" similar to that in Western Europe. It would be either in addition to existing taxation, or would substitute either for the pur- chase tax, the profits tax, or both The present purchase tax, charged on the wholesale price of a wide range of consumer goods, varies from 10 to 25 per cent. The profits tax on business is payable at the rate of 15 per cent, subject to certain excep- tions. A turnover tax would be. de- signed to stimulate exports--the essential factor in the British economy, Maudling made it clear he was budgeting for an over-all deficit approaching £700,000,000 ($2,100,000,000). tax allowance for fac- ind machinery installed) in depressed areas. Industrialists would be al- lowed to write off capital equip- Ment at any rate they chose--' which amounted to free depre- ciation. . He also announced special grants of 25 per cent of the cost of buildings and 10 per cent of the cost of plant and machinery for firms prepared to go to areas of serious unemployment. YOU'LL FIND INSIDE... Two New Separate Schools Planned ... Page 13 600 Aid Muscular Dystrophy Drive .. Page 13 New City Treasurer Assumes Duties ... Page 13 Rev. R. B. Milroy Accepts Toronto Call Page 13 CAS To Study Beaverton Branch . Page 18 A MARINE SERGEANT of the rebel forces is guarded by a loyalist soldier after being taken prisoner in Buenos Aires Tuesday. The marine was TWENTY-EIGHT P, ARGENTINE REBEL CLAIMED DEFEAT captured after a shooting in- cident during military revolt that split Argentina. --AP Wirephoto via radio from Buenos Aires WASHINGTON (CP - AP) -- French fighter-bombers based in West Germany will be armed .week-with nuclear war. 'United States con- trol, defence department sources have disclosed. US. officials said Tuesday night that the arrangement in accordance with NATO defence plans was worked out in nego- tiations started five years ago between France and the United States and completed about a year ago. The delay, they said, was caused by the time needed to acquire 'lock and key" devices by which the U.S. retains con- trol of the warheads. This control system requires American officers and men to control the storage of the war- heads. And where the weapons are attached to the aircraft in alert positions on the runways, U.S. officers are in possession of the '"'key" or control mech- anism that must be inserted in the weapon before it can be used in combat. High U.S. officers in NATO headquarters have control over the warheads through an elec- tronic network linking installa- tions throughout Western Eur- ope. Under U.S. law, only the president of the United States can give the signal for the use 2a minimum influence, of these atomic weapons. Bomarc Issue Remains Big Campaign Point By THE CANADIAN PRESS Campaigning politicians are continuing to strike election sparks from the comments of U.S. Defence Secretary McNa- mara on the controversial Bo- marc anti-aircraft missile. Three of the four party lead. ers hammered at the nuclear issue in speeches Tuesday. Liberal Leader Pearson in Winnipeg accused Prime Minis- ter Diefenbaker of a "'cowardly and irresponsible approach" to defence. With sarcasm, he said: Mr. Diefenbaker could "hardly con- ceal his glee" because the Bo. marc--acquired by the Conserv- ative government--was no good. Mr, Diefenbaker, in two Mont- real - area speeches attacking Mr. Pearson's defence policy, suggested it would result in making Canada "'a burnt sacri- fice." 'That is what he (Mr. Mc- Namara) quite frankly points out," said the prime minister. CITY EMERGENCY PHONE NUMBERS POLICE 725-1133 FIRE DEPT. 725-6574 HOSPITAL 723-2211 Meanwhile, New Democratic Party Leader Douglas said the U.S. defence secretary's words justify his own party's stand against acceptance of nuclear arms. In Edmonton, Social Credit Leader Thompson challenged "any economist--any politician either" to prove that his party's financial program as outlined in the Social Credit election plat- form would not work. Tuesday's arguments over de- mara's Feb. 13 testimony before fence centred on Mr. McNa- a congressional committee that he would eliminate Bomarc bases--there are eight in the U.S.--"if there were any real amount of money to be saved" and that at the very least they would-draw enemy ballistic mis. sile fire if war came. Mr. Dfeienbaker, speaking to daytime audiences of 200 and 650, said Mr. McNamara has confirmed the government's pol- icy of refusing to have nuclear warheads for the Bomarc stored in Canada. "What happens to you when the Russians waste missiles on the. Bomarcs?" he asked. Referring to the Liberal pol- icy of accepting warheads for the two Bomarc bases in Can- Mr. Pearson, speaking to some 8,500 persons in the Win- ipeg arena, accused the prime minister of raising the fears of Caadians by saying that to arm the Bomarcs would invite attack. He put some rhetorical questions of his own, "Does he (Mr. Diefenbaker) early warning system because believe that we should scrap the it is an important target . . tha we should have no defence wrms at all because they will be targets, that we should make no contribution at all to collec. ive defence? "'What if our European allies adopted such a cowardly atti- tude? Is Mr. Diefenbaker trying to weaken the North Atlantic alliance by weakening Canada's part in it?" Mr. Douglas, speaking to a crowd of 550 at Moncton, sug- gested that Mr. McNamara's statement has put both the Con-, servative and Liberal Jeaders in a difficult position. "Prime Minister Diefenbaker said Mr. McNamara pulled the rug out from under Mr. Pear- son. ... Mr. Pearson says it was Mr. 'Diefenbaker's rug. "Both of them are right. It was Mr. Pearson's feet on Mr. Diefenbaker's rug. But what the ada, he asked: "'Are they going to make Canada into a burnt| 4 sacrifice?" people of Canada would like to know is what Mr. Pearson was doing on Mr. Diefenbaker's rug in the first place." wn Nuclear Weapons For French Jets U.S. officials said this is the ninth such bilated agreement between the United States and other NATO countries. The groundwork for the agreements was laid by NATO government heads in the late 1950s. AGREE WITH CANADA The previous eight agree- ments were made with The Netherlands, Belgium, West Germany, Britain, Italy, Greece, Turkey and Canada, the officials said. The only agreement left to be put into effect, they said, was the one with Canada. And de- bate over whether to accept nu- clear warheads is a burning is- sue in the Canadian election campaign. Prime Minister Dief- enbaker says his government at no time agreed to accept nu- clear warheads from the U.S. The defence department sources said the agreement with France does not apply to any. French units on French soil. | March Foreign Exchange Up OTTAWA (CP)--Canada's for- eign exchange reserves rose $6,200,000 in March to reach $2,600,100,000 in U.S. dollar terms at the end of the month, Finance Minister Nowlan an- nounced today. Official holdings of gold and U.S. dollars in the exchange fund account on. Feb. 28, 1963, amounted to $2,593,900,000. Foreign exchange reserves were at a record $2,662,500,000 on Jan. 31, on the eve of the current election campaign-- }more than $1,000,000,000: greater than at the start of the 1962 campaign. Last year's campaign was marked by the government's move to peg the Canadian 4dol- lar at 92% cents in U.S. funds early in the campaign, and a subsequent loss of more than $300,000,000 in the reserve fund, ;|which brought on the austerity program anmounced June 24. Another Eruption Feared For Bali DENPASAR, Bali (AP)--The smoke cloud. pouring from Agung volcano has been in- creasing, and the Bali informa- tion director, Anak Agung says another eruption is feared in the next two or three. days. The cloudy and the general situation of the volcano "are very similar to the days before March 17," he said. Agung's eruption on that date killed nearly 1,500 persons and drove more than 70,000 from their homes. Heavy streams of lava. still are pouring down the flanks of the 10,308-foot volcano, which first erupted in February, kill- |ing 17 persons, after more than a century of silence. A Charge WASHINGTON (AP) -- The United States rejected today Soviet charges that the U.S. was responsible for two Cuban refugee raids on Soviet ships in the area of Cuba. In a note delivered in Mos- cow, the U.S. also sharply re- minded the Soviet government of its "opposition to Soviet mili- tary involvement in Cuba." By its rejection, the U.S. also turned down, in effect, a Soviet demand, in notes late last month, that it pay damages ar- ising out of the two incidents. Asserting that the U.S. "'is in no way associated with such at- Russian Moon Shot Shrouded In Mystery MOSCOW (AP)--The new So- viet moon shot still hurtled through space today, but mys- tery shrouded -- bd specific- ally: is supposed to do. The instrument-laden, 3,130- pound Lunik IV could give the Russians a big lead over the United States in the race to land a man on the moon. Sal merican La bag ary si y three spectacular fail- pang last year, is f behind schedule, but official® in Wash- 'ington said there is no need for Americans to panic.) Denied | On Cuba Raids tacks'"' and is in fact "strongly opposed" to them, the U.S. note told the Soviet Union: "The U.S. government is tak- ing every step necessary to in- sure that such attacks are not 1aunched, manned or equipped from U.S. territory." The text of the brief note was released by the state depart- ment in advarice of President Kefinedy's press conference late today. GOT MIXED RECEPTION Kennedy was expected to dis- cuss at the conference his rea- sons for deciding to crack down on raids against Cuba, including Soviet vessels or installations. His action, made public last Saturday, has drawn both sup- port and criticism in Congress. Russia had denounced as "'pi- ratical attacks" actions against the Soviet merchant vessel Lgov on March 17 and the mer- chant vessel Baku on the night of March 26-27. Soviet notes ac- cused the U.S. of encouraging Cuban anti-Castro groups to make the attacks and said the U.S. bears full responsibility. "The U.S. government cate- gorically rejects this charge," the U.S. reply said. 'It wishes to remind the government of the Union of Soviet Socialist re- publics that immediately after the recent attacks on Soviet merchant vessels an officia' spokesman stated that the U.S. government is strongly opposed to, and is in no way associated IN HOSPITAL Mrs. George Drew, wife of the Canadian high. commis- sioner in London, was resting comfortably in a London hos- pital today. She had an oper- ation last night involving the ing the larynx and the bron- Possible Plan To BUENOS AIRES--The Argen- tine government claimed today|G a 'rebel navy fleet that had started toward Buenos Aires for a showdown against President Jose Maria Guido "has ceased its operations." ; | The announcement from Act- ing Navy Secretary Jose Manuel Astigueta came after the loyal- ists claimed air and ground at- tacks 'knocked out two rebel strongholds and sent navy reb- els. into retreat. Astigueta's announcement said: "The national fleet, through Rear Admiral Eladio Vazquez, has communicated to the acting navy secretary that it has ceased its operations." Vasquez is commander of the trachea, the air passage link- | fleet River Plate and this capital. chial tubes, --CP Wirephoto! The government said Tuesday Rash Of MONTREAL (CP)--A rash of bomb scares in the Montreal area and one in Quebec City forced police emergency squads to investigate seven threatene4 blasts withir ours Tuesd: All were faise alarms. A Montreal police spokesman with, such attacks." said a "lunatic fringe" is fol- Scientists speculated that Lu- nik IV is intended either to land an unmanned observation sta- tion on the moon or orbit the moon to take detailed phoio- graphs and to gather other data. Such preliminaries are indis- pensable to landing a man, and "a big range of studies must be carried out before man flies there," wrote astrophysicist Yuri Lipsky in Pravda today. Wilson Claims Labor's View Close To U.S. LONDON (Reuters) -- Oppo- sition Leader Harold Wilson said today on some aspects of foreign policy his party's atti- tude was perhaps closer to the American view than that of Britain's Conservative govern- ment. Wilson was speaking at a press conference a few hours after his return by air from New York and talks with Presi- dent Kennedy and other leaders in Washington earlier this week. Asked if in the light of the talks he felt a Labor govern- ment might be closer to the Kennedy administration than the Conservative government of Prime Minister Macmillan, Wil- son said on certain aspects of foreign policy Labor's attitude is perhaps closer to the Ameri- can view. This was particulariy true of attitudes toward the United Na- tions, Africa and certain aspects of defence policy. But there were other issues where both Labor and the Brit- ish government were not in agreement with the United States--for instance the ques- tion of admitting Communist China to the United Nations. Wilson described his talk with Kennedy Tuesday as "a very, very frank and fast-moving dis- cussion." "We covered a very wide rane and pretty deeply as well." Soldiers' Death Report Questioned LONDON (Reutérs)--The war office said today it had -no knowledge of a report from Baghdad, Iraq, that an undis- closed number of British sol- diers were killed when rebel tribesmen waylaid their truck in Oman a week ago. The report was attributed to the office of the Imam (King) of Oman. Air Trip Safety Sought For Star BERLIN (CP-AP) -- British authorities are seeking "firm assurance" from the Russians that a Canadian entertainer's private plane can return to West Germany without being mo- lested by Soviet jet fighters. The plane, piloted by stage and television star Hughie Green, flew to West Berlin Tuesday in one of the three air corridors reserved for the West- ern Allies. Two Soviet fighters tried to force Green to land in Commu. nist East Germany. One of the Soviet planes fired six cannon bursts but Green continued on his course and the twin-engined Cessna landed in West Berlin undamaged. The Western Allies protested to the Soviets. In a separate protest, the U.S. representative at the four-power Berlin Air Safety Centre called the inci- dent an "'outrageous and hostile act." "The most dangerous thing I ever experienced in all my years of flying," said Green, a wartime terrsppilot, on landing in West Berlir' "They were only 15 feet away Third Stabbing In 3 Months At Penitentiary KINGSTON (CP)--An uniden- tified prisoner was in Kingston Penitentiary Tuesday while conviets sat in semi- darkness watching the Toronto- Montreal Stanley Cup hockey game on television. Officials said today the pris- oner was in satisfactory condi- tion in hospital. No weapon has been found. Deputy Warden A. J. Jarvis said today he thinks he knows who stabbed the prisoner Tues- day. He said he did not consider the incident important, adding that in such a prison as King. ston "violence is bound to oc- cur." It was the third stabbing here in three months. Marcel Berthi- aume, 29, of Ottawa was knifed March 25 at nearby Collins Bay Penitentiary. William Eagles was stabbed in Kingston Pen. It was understood casua.ty re ports would have reached the! war office by now if the report) were true. jitentiary Feb, 4. No charges have been placed as a result of either of the two earlier offences. and rocked my plane as they passed,"' Green told a press con- ference. "They went under my plane, over it and all around it." "We were only three minutes away from our landing at the British base at Gatow when they fired last. If any of those shells had hit us we wouldn't be here now." Green, 42, was on his-way to entertain British troops in Ber- lin. He was accompanied by a navigator, Clifford Luxton, 54, and a British newspaper man, Jim Preston. His flight over Communist East Germany had been regis- tered in advance with the So- viets, who along with the Amer. icans, British and French jointly control the air routes. Allied officials said the Rus-|' sians protested that private|, planes have no right to fly to West Berlin in a corridor. West- ern officials said. any airefaft registered with them cah use Bombing Threats Probed lowing the lead set by Le Front de Liberation Quebecois, (FLQ) a self-proclaimed terrorist wing of the separatist movement. The bomb blast . predictions che all made by seenrmene voices 'telephoning police was climaxed by a threat that the Montreal Forum would be bombed . playoff game 'ontreal ae and Toronto Maple About 14,000 persons were in the Forum when police arrived to begin their search, touched off by a threat the bomb would go off at 10:15 p.m. in the yellow section. The stands and wash- rooms were thoroughly searched lice. spokesman said no hockey fan was aware of the scare. INVESTIGATES THREATS The Montreal police depart- ment's bomb expert--Det: Sgt. Leo Plouffe--had an extremely busy day as he personally in- vestigated all the threats. guards checked those entering the building during the night. was sent to the newspaper con- taining a warning from the FLQ and crude posters linking the Liberal party with the United States and the Seafarers' Inter- national Union were plastered on the front of the downtown uilding. Another anonymous telephone caller said a bomb would while Prime Minister Diefen. baker was speaking to a politi- the airlanes reserved for them. cal rally. but nothing turned up. The po-| firmed. plode in Delorimier Stadium}. Forces - Regroup: Vazquez has sworn allegiance { The government claim that Vazquez had switched nie 4 could not be confirmed rebel sources. Astigueta said Vazquez had been offered the Post of commander of naval op- bs cng ue ere were reports, that the navy rebels vue fuse to accept Vazquez as chief and attempt to their revolt, aimed at ki followers of ousted Juan D. Peron from the June 23 elections dent and Congress, RETREAT INDICATED ; All information pointed to. general rebel retreat, But moves may be in the form strategic withdrawal for a sible regrouping of forces Puerto Belgrano, the huge jive 350 miles south of res. One rebel ie ntti la offensive after daybreak. Provincial police reported loy- alist air force bombers and fighters bombed the navy | base at Punta Indio. This is base fot navy wena ig a loyalist lion: at aedaleon in. the be 4 Prosident * z Maria ier L ose a4 Tuesday. : loyalist air bombing." Punta ie dio is :about 80 miles of Buenos Aires on the Ai Coast. 4 The loyalist. claim that the Punta Indio air base had sure rendered could not be com The 'rebel radio at Bahig Blanca, about 350 "south west of Buenos Aires, said the navy forces never would sure ene. will death,? "We wi ht to the the bromine said. IS FIGHTING ELSEWHERE:: The joint command of the loy * of Buenos Aires, - * fighting able ant paratroopers wha by fused to surrender to ¥ -- There were no other d& Ss. * The rebel radio claimed that the fleet of ships led by the air- craft carrier ndencia with 22 jets was speeding the River Plate toward Bue: Aires. » Both sides said Fleet Con mander Admiral Eladio V; RAIDER BOAT GUARDED The Cuban exile raiders' | boat Violin IM is pictured under where 4 ard by Nassau police t is-tied up after being towed from Normans Cay. Sixteen Cuban exiles de- _ scribed as being on an intend- | 3 i} ed raid on Cuba are being held by authorities in Nassau, _ AP. Wirephotp- g %