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VIET CONG KILLS 600 - FRANCE ASKS TRUCE TALKS DA NANG (CP)--South Viet- namese troops have suffered what probably will turn out to be their worst defeat of the war in a mountain battle launched by the Communist Viet Cong Monday, the day South Viet- namese warplanes raided North Viet Nam. The Communist guerrillas were on the offensive today in several sectors. Heavy fighting raged. near the Da Nang Base and. in an area east of Saigon aS news filtered out of the major action in Binh Dinh province, 280 miles north of this city. U.S. officials disclosed that two government companies were annihilated, a battalion was virtually wiped out and an- other company severely mauled in co-ordinated Viet Cong at- tacks. The exact number of govern- ment casualfies in the action still was unknown, but may be around 600. This would make it even worse than the operation that cost 500 men at Binh Gia over the New Year--at the time the worst defeat government forces had sufferec. Relief forces totalling about 1,500 men were reported still unable to reach the battle site. The reports said one Vietna- mese battalion plus two or three extra companies totalling 600 men were reported wiped out in co-ordinated Viet Cong ambushes The Viet Cong were said to have numbered about 800 men, Total government casualties were stil] unknown, The reports said two of 15 government per- sonnel carriers were knocked out and the others damaged. The reports said three U.S. advisers with the ambushed force got out alone without any injuries. Meanwhile, four U.S. Army advisers were missing from a district town overrun by the Viet Cong 8@ miles north of the capital. A U.S. spokesman said the Communists were still hold- ing the town, Duc Phong. Two armed helicopters were dispatched to the 'town. On@® was downed, killing an Almer- ican gunner. The three other men aboard were wounded, but were evacuated in a daring res+ cue, A ranger unit was airlifted into the region for an attempt to retake the village, near the Cambodian border. A U.S. of- ficer and three men were in the village when it was hit about dawn. Two deaths brought the total ef U.S. dead in action in Viet Nam to 267. About 20 Ameri- cans are missing, including the four today. BUILD DEFENCES U.S. Marines were working feverishly at Da Nang to set up sand bag defences for their newly emplaced Hawk anti-aire craft missiles. Fighting between Vietnamese government forces and the Communist Viet Cong raged a scant nine miles from the base that also houses a strike force of 50 U.S. Air Force jet. fight- ers and bombers. Da Nang is 80 miles south of the North Vietnamese border and. 360 miles north of Saigon. MARINE AND MISSILES STEEL FOR ATTACK PARIS (AP) -- The French government said today that po- litical negotiations can provide the ply solution in conflict in Southeast Asia and said it is ready to take part in new talks on the troubled area. Settlement of the problems of Southeast Asia cannot be reached through fighting, the spokesman for the French cab- inet said following a meeting. The spokesman said France is prepared to attend a new session of the 1954 Geneva con- ference, which ended the Indo- chinese war, and to discuss set- tlement of the conflict which has arisen since then, An initiative for a new ses- sion of the conference must come from Britain or the So- viet Union, co-chairmen of the conference, the French state- ment said. The statement was read to reporters by Information Min- ister Alain Peyrefitte. It re- peated France's argument that Southeast Asia must be neutral- ized. It added: "The government has noted with much interest-and_ wi out any astonishment the . cent events relative to Indo~ china, which only confirm the i sg of France on this grave affair, 4 & NOT THROUGH WAR * The French government considers that the settlement of. the problems of Southeast Asia cannot be o! ed through usé of arms, Only an ae accord excluding all ig tervention concerni: nA South Viet Nam, Nam, Laos and Cambodia, yn open the way to internal and eX: ternal peace in this unfortunate region of the world." The statement concluded: "The government is ready, at any time, to take part in the negotiation of such an accord, conforming to the principles es- tablished in 1954 by the confer- ence of Geneva. "The initiative for a new meeting of this conference be-. longs to the two powers which hold the co-presidency: 'The So- viet Union and Britain." The Hometown Newspaper Of Oshawa, Whitby, Ajax, Bowmanville, Pickering and neig VOL. 94 -- NO. 34 hboring centres, She Oshawa Times Price Not Over 10 Cents per Copy OSHAWA, ONTARIO, WEDNESDAY, FEBRUARY 10, 1965 Authorized @s Second Class Mail Post Office Department Ottawa and for payment? Weather Report Colder Tonight, Snow. Clearing Thursday Low Tonight, 25, High Thursday, 30. THIRTY-FOUR PAGES of Postage in Cash, Rivard Skip C Plan: anada Inquiry Tol OTTAWA (CP)--Lucien Riv- ard was reported to have bank accounts in Mexico and -Switz- erland and to have been ready to skip the country if granted bail, the Dorion judicial inquiry was told today. Andre Letendre, 35, executive assistant. to Justice Minister Favreau, testified he was given this information in August by Guy Lord, then special assist- ant to Mr. Favreau. The inquiry is investigating an allegation by Montreal law- yer Pierre Lamontagne that he was offered a $20,000 bribe to agree to bail for Rivard, wanted in the U.S. on charges a being mixed up in a narcot- A Mr. Letendre, taking the wit- ness stand for the first time, said he was told Aug. 11 by Mr. Lamontagne, acting for the U.S. government in the case, that arrests had been synchro- nized around the world in a crackdown on an international network of which Rivard was a part, Arrests had been made, for example, in Boston, Marseilles, and the Far East. SAYS INVOLVED IN DRUGS Mr. Letendre also gave testi- mony to the effect that Rivard had been involved previously in He went to the RC with his allegations Aug, 11, the day he reccived telephone calls from Guy Rouleau, then parlia- mentary secretary to Mr. Pear- son, and from Mr, Letendre, MORE eau spoke to him about the Riv. | ard case Aug, 11. He quoted Mr. saying he wanted to discuss the possibility of bail for Rivard with Mr. Favreau but needed information on the case first. Mr. Letendre said Mr. Roul- eau mentioned Rivard had been of service to Raymond Rouleau in electoral campaigns. HEARS OF ACCOUNT He said he then spoke about the matter to Mr. Lora. who hadi' also beén' @pproached by Mr. Rouleau. It was at this point that Mr, Lord had told him of Rivari's foreign bank accounts and of the danger that Rivard would escape if granted bail. Mr. Letendre said he phoned Mr. Lamontagne because at that time there were charges of persons being illegally detained. The witness said there was political pressure on the gov- ernment as well arising from the dismissal from the navy of Gordon Knott because of mis- taken identity by the RCMP the narcotics traffic but had stayed away from it for three} years. He said Liberal MP Guy Rouleau told him Mrs.. Rivard} had given this information to his brother, Raymond Rouleau.| Mr. Lamontagne has charged} that he was subjected to Lib- eral politica' pressures to agree to bail for Rivard. security branch. Mr. Favreau's office had re- |}ceived representations on behalf} of Rivard. Mr. Letendre quoted Mr. La- | montagne as saying that Rob- ert Kennedy, then U.S. attor-} jney-general, was following the See -- Rivard Planned to Skip) (Story Continued on Page 2) | THE TIME Oshawa and District Hit By 5S today.. Floods, Rain -- Page 17 Free Trade Agreement Discussed In Whithy -- Page 5 Generals Snap Slump With Ann Landers -- 19 City News -- 17 Classified -- 30, 31 Comics -- 26 District Reports -- 11, 23 Editorial -- 4 Financial -- 28 9-3 Victory -- Page 15 Obits -- 28 Sports -- 14, 15, 16 Television -- 26 Theatre -- 28 Women's -- 18, 19, 20 Whiby News -- 5 , al,, 22 Mr. Letendre said Mr. Roul-| He told Mr. Lamontagne that Rouleau as} & Visibility was poor and icy roads treacherous last night and 'today as freezing rain hit the city. Motorists crawled cautiously to their jobs while pedestrians slip- ped and slid their way to work. Hip waders were call- ed for in some flooded FREEZING RAIN ENDANGERS DRIVERS, WALKERS areas as the runoff couldn't get away fast enough. (See story Page 17.) --Oshawa Times Photo PEKING (Reuters) -- Rus- sian Premier Kosygin arrived)' here by plane today for a one- day stopover on his way back to Moscow after a four-day visit to the North Vietnamese capital jof Hanoi. Kosygin was greeted at the jairport by Premier Chou En-lai jand Foreign Minister Chen Yi. Both in Peking and Hanoi mass rallies. against United States raids on North Viet Nam were the major events of the | Kosygin spent a day here last |week on his way to Hanoi and jconferred with Chou. Communist Party chairman Mao Tse Tung put in one of his jrare public appearances earlier today at a 'Hands off Viet |Nam" rally. 1,000,000 AT RALLY |The rally, attended by an es- -|timated 1,000,000 cheering Chi- jnese, also was attended by head lof state Liu Shao-chi and Chou. All three leaders joined in the tumultuous applause when Pe- |king Mayor Peng Chen told the jrally that concrete action would |be taken to support the Vietna- }mese people against U.S. ag- | gression. | The North Vietnamese news FIRST PERIOD: ROUND ONE yo 'agency today quoted Kosygin as saying the Soviet Union felt 'very satisfied' at the results of his talks in Hanoi. The agency, monitored in Tokyo, quoted him as saying the Soviet and North Vietna- mese delegations had "been unanimous about the measures to be taken to strengthen the defence potentiality'. of North Viet Nam, but did not specify what they were. Speaking before he left Hanoi, Kosygin said: "We have paid attention to examining the sit- Peking: Mass Rallies Greet Kosygin Return uation in the Indochinese penin- sula especially at a time when the U.S. imperialists and their Saigon stooges have freshly conducted armed provocations against North Viet Nam. In his Hanoi Airport speech, Kosygin said: "We have been unanimous about the measures to be taken in order to strengthen the defence poten- tiality of the Democratic Re- public of Viet Nam, and have agreed to hold frequent ex- changes on these problems." has obtained ' NEWS HIGHLIGHTS Limit On U.S. Investment WASHINGTON (CP) -- President Johnson said today he firm assurance"' ment that it will pursue policies to limit. the flow of U.S. investment dollars into Canada, with keeping Canada's currency reserves' stable. Protection Asked For Embassy WASHINGTON (AP) -- The White House, with President Johnson's authorization, suggested today the U.S. Embassy in Moscow must receive adequate protection if U.S.-Soviet diplomatic relations are to be continued. ' from the Canadian govern- to the extent consistent {South Vietnamese capital, Boom' Budget Ahead For Ont. Terrorists Blast Hotel: Losses High SAIGON (AP) -- Viet Cong terrorists blew up a four-storey U.S.' military man's hotel to- night in the city of Qui Nhon, 270 miles northeast of this and the loss of American lives was believed high. Initial reports here said seven Americans were known to have been wounded, but the entire building was a pie of rubble and many dead were believed buried under the debris. The building housed about 40 U.S. soldiers. Two Viet Cong terrorists were also killed in the explosion and their bodies wére found still carrying explosives. (The official account that reached Washington carried es- timates of possibly 20 to 30 Americans killed, but the figure was described as being without confirmation.) The Qui Nhon attack coin- cided with growing evidence of a general guerrilla offensive against. Vietnamese forces and their American advisers. There was immediate specu- lation in Washington aoout re- taliatory action against Com- munist North Viet Nam, which the United States Jast weekend charged with masterminding Communist guerrilla attacks in the south against United States forces. At the, White House, Press Secretary George E. Reedy said the president was informed of the Qui Nhon incident and has been in contact with vari- ous Officials of the state and de- fence departments, the Na- tional Security Council, and |White House staff members, PENALTIES GALORE IN GENERALS' TILT Fights, Brawls, Some Hockey By JIM McPEAK of The Times Staff What started out as a normal hockey game Tues- day night, between Oshawa Generals and Hamilton Red Wings erupted into one of the longest and certainly the most penalized contest ever played in Canada and probably the world. Nearly four hours in pen- alty-minutes were handed out py referee Bob Nadin of Toronto, and instead of lasting just over the two hours normally needed for a gamc, took. three hours and 15 minutes to com- plete. The -contest was won by Oshawa, 9-3. At one point in the game, late in the second period, Hamilton was reduced to three players on the ice and two on the bench. Everything was normal until] the 15-minute mark of the first period when Osh- awa's Billy White and Ham- ilton's Pete Loveless collid+ ed in the Hamilton end, White taking exception to being hit from behind by Loveless turned and let fly and aiter it. was all over re- tired to the Oshawa dress- ing room for first aid treat- ments to his face. Less than three minutes later with White and Love- less sitting out majors. for fighting, Freddy Speck and Chris Roberts tangled and received majors. Speck also was giveo a misconduct pen- alty for' remarks made to the referee, At the start of the second period only six minors, four majors and one misconduct penalty had been handed out Real Lemieux of the Red Wings and Martin "Butch'" Buchar started. yelling at each other, : "Hit me, go on hit me," challenged Lemieux. Buchar complied. He let fly with a shot to Lemieux's head tha! brought tears to his eyes and blood from his nose, Result--a major to Buchar and a roughing penalty to ° Lemieux Gary Doak, contending his teammate Lemieux was veing. unjustly -- treated, voiced his opinion in the direction of Referee Nadin and got tossed out of the game. Red Wing Paul Cates was next to invoke the wrath of Nadin and headed off to the penalty box for a two- minute _ high-sticking sen- tence. Jerry Abel also voiced an opinion in the referec's direction and headed off to join Cates for a_ ten-minute misconduct. It looked like everything was back under control until the 15-minute mark when Lemieux and Buchar tangled again. This*seemed to be the spark that touched off the explosions and before any- body knew what happened the two teams were trying to annihilate each other. Bobby Orr and Cates were in one heap, and Buchar See -- Fights (Story continued on Page 2) | BUDGET HIGHLIGHTS TORONTO (CP) -- High- lights of the Ontario budget tabled in the legislature to- day: No new taxation Three-year tax holiday for corporations locating in feder- ally-designated areas in On- tario. Sales tax removed from to- bacco products but balancing tobacco tax imposed, provid- ing no change in retail cig- arette price. No increase in hospital in- surance premiums fore- cast for at least three years. Continuance of province's economic boom in 1965. Revenues in 1964 - 65 of $1,215,644,000 and expenditures at $1,214,684,000, providing or- dinary account surplus of $960,000. Revenues in 1965 - 66 at $1,316,945,000 and _ expendi- tures at $1,316,383,000, provid- ing ordinary account surplus of $562,000. Net increase in capital debt in 1964-65 of $78,413,950. Over-ali ordinany and cap- ital expenditures in 1965-66 of $1,459,000,000 -- largest. in On- tario's history. Shortfall of revenues over expenditures of $141,000,000. Education spending of $608,- 000,000, including $100,000,000 to be made available in loans for university construction. Highways spending of $329,- 400,000. 'Oust Leader' -PC Student OTTAWA (CP) -- Joe Clark, president of the Progressive Conservative party's student federation, says the party needs a new leader because. of Oppo- sition Leader Diefenbaker's stand in the flag debate and his opposition to changes in Que- bec. Mr. Clark, 25, a University of Alberta student and a member of the party executive, told a press conference Tuesday Mr. \Diefenbaker and other party leaders are out of step with young Canadians under 30 years of age. Crediting Mr. Diefenbaker with arousing his interest in pol- itics and Canada, Mr. Clark said he had planned to inform the opposition leader of the fed- eration's views at a meeting he sought unsuccessfully. In a confidential letter to Mr. Diefenbaker, 'he said presidents of the 46 students' clubs across Canada have been told they are 'free and obliged" to apeak out on policy questions when Mr. Diefenbaker's policies are in "discord" with views of young Canadians.~ Financial Position Strong; No New Taxes Imposed TORONTO (CP) -- Provincial Treasurer James Allan today brought down a_ $1,460,000,000 boom budget for Ontario. It im- posed no new taxes and prom- ised continued. prosperity. in 1965-66. Mr. Ailan reported that On- tario is in a strong financial position. He said he had en- deavored to present the legisla-' } ture with a budget that would | the province, almost $1,500,000,000 are the highest in Ontario's history. To carry out its program the gov- ernment will have to borrow $141,100,000 during the year, Mr. Allan said, But this was not a remarkably large amount. The nearest thing to a tax change was the removal of the three-per-cent sales tax from tobacco products combined with imposition of a tobacco tax to balance the loss without any in- crease in cost to the smoker. Mr. Ailan said the tobacco tax would replace the sales tax purely for reasons of easier col- lection.' Meeting with reporters, he denied that the separate to- bacco tax. was being imposed so that cigarette taxation could be increased in future years. The provincial treasurer an- nounced that new corporations locating in the six federally- designated areas in Ontario will be given provincial government tax incentives. These will be in the form of three-year tax hol- idays for processing or manu- facturing businesses. The designated areas are the Windsor, Cornwall, Chatham, Wallaceburg, Timmins and El- liot Lake districts of the Na- tional Employment Service. Brantford and Pembroke re- cently were removed from the list. The tax incentives will be retroactive to the introduction not interfere with the growth and expansion taking place in ;} The forecast expenditures of HON. JAMES ALLAN of the federal program in De- cember, 1963. Since then almost 50 businesses have signified their intention to locate in the designated areas. Mr. Allan said there will be no actual tax rebates because none of the businesses have be come operative since initiation of the federal incentives. Changes will be made in the collection of revenues under the Motor Vehicle Field Tax Act. This will involve the coloring of tax-exempt diesel fuels or fuel oils used for heating purposes. A refund on taxes paid on diesel fuel not used for highway purposes may be claimed by the user. The coloring will aid the revenue department in as- suring that heating fuels are not being used for motor ve- hicle purposes. NO EXTRA CHARGE Mr. Allan said the coloring will be done by a chemical pro- cess but the choice of colors has not yet been determined. The province itself will pay for the coloring process so there wili be no extra cost passed on to the consumer, WHITBY (Staff) -- A th credited today with rescuing h deep creek at the rear of Lup The Trelford boy, his clot them his pal was in the cree' the scene to find the Grealis mersed in the water. searching for her son,, was She accompanied him in the the escapade. He will miss dergarten at the R. A. Hutc Mr. Curry and a boarder, The Grealis boy's mother, CHILD, 3, SAVES PLAYMATE FROM RISING WHITBY CREEK ree-year-old Whitby boy was is five-year-old playmate from a creek here yesterday afternoon, Michael Trelford, son of Mr. and Mrs. Willard Trelford, is believed to have assisted David Grealis from a two-foot in drive, then ran for help. The Grealis boy, son of Mr, and Mrs. William Grealis of 319 Dovedale drive, was taken to the Hospital for Sick Children in Toronto by ambulance. treatment for scratches and bruises, He was released after hing soaked, ramto the home of Mr. and Mrs. Barry Curry of 252 Lupin drive and told k. Ronald Williams, hurried to boy lying unconscious on the creek's bank, He appeared to have been completely sub- who had been frantically informed of his whereabouts, ambulance. Michael is home with a few bandages to remind him of the rest of the week of kin- hinson School,