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12 THE OSHAWA TIMES, Mondey, Februcry 15, 1968 OTTAWA COMMENT Cabinet Changes Fell Short Of Expectation " OTTAWA (CP) -- Cabinet aehanges announced Friday by Prime Minister Pearson -- one "new minister and three port-/m folio changes--fell far short of fulfilling recent speculation that major shifts would occur before 'the parliamentary session re- 'gumes Tuesday. But, in announcing the changes, Mr. Pearson seemed to hint more are to come. ~ In an apparent reference to the Dorion inquiry, he spoke of a situation that "prompted me to delay" cabinet changes he might wish to make, But the resignation of Works Minister Deschatelets made immediate action necessary. The Dorion inquiry into accu- sations of influence idling' and attempted bribery against ministerial aides may last an- other two weeks, possibly more. There is no indication as to when Chief Justice Frederic Dorion will submit his findings to the government. Politica! observers look on appointment of Jack Nicholson as minister of immigration as probably the most significant of Friday's changes. IS THIRD CAREER He is a no-nonsense adminis- trator for whom politics is a third major career, The native of New Brunswick practised International Strains Slow American Economy NEW YORK (AP) -- Events arising from _ international strains cast a shadow last week over prospects for the humming} U.S. economy. Most immediately disquieting was the intensification of hos- tilities in Viet Nam. Punishing blows were struck by each side, and ominous words were spoken on the diplomatic level. The stock market, sensitive to threats of enlarged conflict, shuddered. Its basic underpin~ nings held firm, however. Also troubling was new evi- dence of the gravity of the na- tion's- adverse balance of inter- national payments, which wor- sened markedly in the last three months of 1964. President Johnson called for broad new voluntary measures by business corporations and banks to cut down on invest- ing and lending abroad. PRODUCTION SOUGHT The president also asked Con- gress to reduce sharply the duty-free exemption for pur- chases abroad by tourists, low- ering the limit to $50 retail value from the former $100 at whole- eale price. Businessmen generally re- acted favorably, applauding the mildness and voluntary aspect of the program, but some ques- tioned if it would do the job. The United States sent abroad last year $3,000,000,000 more than it .received from other countries. Domestically, the brightest spots in the business picture lwere contributed by the boom- ing auto industry, and new re- ports of record 1964 profits, di- vidend increases and capital spending plans. Chrysler Corp., the only, Big- Three car builder to avoid a major strike last fall unveiled the highest earnings in com- pany history, -- $213,800,000 in 1964 as against $161,600,000 in 1963. DECLINE REPORTED On the minus side of the ledger, the government. re- ported a one-per-cent decline in rotail sales in January, steel production dipped a first time in six. weeks and the dock strike paralysing shipping on the U.S. Atlantic and Gulf of Mexico ports dragged on. Along with new curbs on duty-free purchases by tourists abroad and voluntary steps by business, the president invoked his power to clamp a special tax on U.S. bank loans abroad and other long-term -- private credit. And he urged Congress to em- tend for another two years the penalty tax of up to 15 per cent on purchases of foreign stocks and bonds and to enact tax law changes to promote foreign in- vestment in the U.S. law at Vancouver from 1924 to 1941 unti) the Second World War thrust him into a business career. During the war he was deputy controller of supplies for the federal department of mu- nitions and supply. The portfolio of citizenship and immigration ranks as one of the most sensitive in the gov- ernment. Certainly, over many years it has produced more than its share of political con- trovers7. Mr. Nicholson, 63, will be the third minister to preside over its affairs in the less than two years the Pearson government has been in office. The first was Guy Favreau, 47, now jus- tice. minister, the second Rene Tremblay, 42, who now re- places Mr. Nicholson as post- master - general. All told, the department has had five ministers since 1960. Appointment of Lucien Car- din, 45, as minister of public works to fill the vacancy left by the resignation of Jean-Paul Deschatelets, 52, is looked on as a move up for the 45-year- old Sorel lawyer who has been associate defence minister sir.ce the Pearson government was formed, In defence, Mr. Cardin is re- puted to have shown consider- able talent as an administrator with a good grasp of detail. CADIEUX POPULAR The new associate defence|vestigate the dispute, now minister, Leo Cadieux, 56-year-|moves to Saskatoon and Wain- old MP for Terrebonne, is said| wright, to be one of the most popular} members of the Liberal caucus. Associates say he represents middle ground among Quebec Liberals, linked neither to the so - called old guard nor the younger, new wing. Mr, Tremblay is a new-wing) Quebec Liberal, solidly iden-) tified with the forces behind Premier Jean Lesage in the ousting of the Union Nationale from power in the province. An intellectual and an econ- omist, Mr. Tremblay entered the Pearson cabinet in 1963 as minister without portfolio. He was slatea to become eastern minister of agriculture under the Liberal plan -- never put into effect -- of having eastern and western ministers for the portfolio. He moved to immi- gration a year ago when Mr. Favreau became justice minis- ter. WEEK IN BUSINESS REVIEW American Dollar Curbing |Port Arthur lawyer Alfred Pe- CNR-Nakina Hearing Completed NAKINA, Ont, (CP) -- The Freedman commission Friday ended its week-long hearings in this Northern Ontario railway community into the problem surrounding the CNR's announced rut-through plan for train crews, s The New Democratic Party Club of Geraldton, 40 miles south of Nakina, said in a sub- mission at the final hearing: "Rich iron ore deposits have been found only a few miles from Nakina: ., . to send skilled railroad workers away from the Nakina area at such a time seems questionable planning. "It is possible that more of such skilled people will be needed in this area shortly to operate branch lines into min- ing operations and to handle ex- tra traffic of all kinds, Expan- sion, rather than attrition, seems to be what should be planned for at this time. Nakina, a compact community of nearly 800, was one of the rail centres involved in a dis- ruption or CNR operations last Oct. 24 in a dispute about the length of crew runs. It has been a_ turn-around peint for about 40 years, Train- Operating crews on the 244- mile Hornepayne - to - Arm- strong run change at this mid- way point. The new CNR plan would. have the crews bypass Nakina and run right through between the two terminals. Mr. Justice Samuel Freed- man of Winnipeg, appointed by the federal government to in- Alta., to resume hear- ings on run-through issues on| the Prairies. Women attended the hearings| here throughout, sometimes) making up nearly one-quarter of the crowd that at times num- bered around 100. A free-coffee project during breaks in the hearings was or- ganized by the Nakina Women's Anti-CNR Run - Through Com- mittee, the same organization which picketed trains here last fall to protest. the run-through plan. The CNR contends competi- tion in transportation requires the railway to be competitive, and that run-throughs are part of the product of an improved operation. The Nakina Improvement District contended in a brief by trone that the run-through was a matter of life and death" for the community, "Citizens of Na- kina must not become the pawns of automation." The company has said the proposal would save it $102,000 a year. thoritative government sources said federal grand are investigating reports that few banks have been taken over by wealthy hoodlums of the United States' organized crime empire, the Cosa Nostra, banking. Grand Jury Looks For Hoods' Banks WASHINGTON (AP) -- Au- juiies One government official em- phasized that grand jury scru- tiny of the reported takeovers is concentrated on banks still in operation. He said there has been no allegation that several bank failures of the last year are in any way. connected with the syndicate's new interest in Government officials refuse to name the banks said to be in- volved. There is virtually no limit to Mob Reviles W. Germany BERLIN (Reuters) --Demon- strators in Dresden today at- tacked 'West German imperial- ism, the deadly enemy of the German people" as the East German city marked the 20th anniversary of its destruction by allied bombers during the Second World War. The Communist newspaper Neues Deutschland reported the arrival of a delegation from Coventry, one of Britain's worst- bombed cities, Coyentry Cathedral, re- built after being wrecked in 2 Nazi air raid in 1940, has spon- sored an appeal in Britain for restoration of part of Dresden Church Hospital as an act of re- conciliation. 'Stop Ulbricht Visit -Bonn BONN (Reuters) -- Foreign Minister Gerhard Schroeder ad- vised the Egyptian ambassador today of the "serious conse- quences" which might result from the proposed Cairo. visit of East German President Wal- ter Ulbricht, the federal press office said. West Germany announced Friday 1t is stopping arms aid to "areas of tension" including Israel, and_ simultaneously warned Egypt not to go ahead with the proposed Cairo visit of Ulbricht, expected later this month. MONTREAL (CP)--The La- bor Zionist movement of Canada said today it is "shocked and deeply disturbed" by the West German government's decision to halt arms shipments to Is- rael, "This decision places the se- ways the Cosa Nostra may use a bank once it has control. One government investigator ajoutlined this pattern: 1. The bank makes large un- lsecured loans to friends, rela- tives and associates of the rack- eteers--no questions asked, no credit cheques, often no collat- eral, 2, From borrowers not di- rectly associated with the rack- ets, bank officials accept favors or gratuities--such as new cars --for pean unsecured loans to bad ris 3. The Sank may permit rack- eteers to open big bank accounts under phoney names to hinder tax scrutiny. 4. It will purposely keep bad books and records in an effort to cloud the channels followed by illicit funds ard to camou- flage the crime syndicate's fi- nancial activities. 6. The bank is used as a clear- ing house for cheques obtained as payment for gambling losses. These funds, one source said, run into millions annually. 7. The bank will furnish good credit references on all of its hoodlum accounts. 8. Bank tellers will fail to turn in the required treasury currency returns reporting ab- normally large deposits of cur- rency and coins--which often signify gambling proceeds. The grand jury investigations are proceeding slowly, but offi- cials say they expect some in- dictments will develop. CENTRE ONLY AT K-MART Can you get for your old battery during this tremendous. . Trade-in Vaasa | VOLT our 248: 12-V 20-Month eee No Trade-in $455 Price With Tradeins | 2 oar § Price No Trade-in $1 Price with Trade-in Price 5° No Trade-in 22 or Price grou 1: 6-VOLT 24- Month 'Guarantee No Trade-in se aut $606 ith Trade-in S: 12-VOLT ~ gRouP 24 ane Guarantee -Month create $2550 With Trodete5] 943 Price curity of the state of Israel and the prospects for peace in the Middle East in great danger," Didnt Disturb Economists By GORDON GRANT Press Staff Writer Moves by the United States last week to improve its balance of payments position by cutting the dollar outflow. doesn't ap- pear to have bothered Canadian economists much. Economists and businessmen say the effects on Canada of possible restrictions on U.S. Vbank loans to foreigners and limits on direct investment here by U.S. companies will be al-| most nil. For one thing, the volume of | U.S. bank loans to Canada is believed extremely small. Further, direct investment in Canada from the U.S. in 1964| was about $200,000,000, a frac-| tion of the figure in the mid- 1950s, Most U.S.. capital now used in this country comes from earnings of companies based here. The proposed U.S. moves in- clude a cut to $50 retail value from $100 wholesale in duty-free purchases by U.S. Tesktents abroad. This move is expected to hit; Japan and Europe harder than| Canada since many goods available here can be bought more cheaply in the U.S. How- ever, U.S. tourists in Europe and Japan can find gifts not available in North America. But Canadian authorities are} Split on how the cut will affect | tourist business. 0. L. Vardy, Newfoundland's director of tourist development, said: "We feel that President Johnson's statement (the moves Were announced by Mr. John- son Wednesday) will have no | effect on the tourist traded . The tourists who vi it New:| Rabbi Urges 'Free' Study TORONTO (CP) -- Children} should be taught to read at age| four and should be allowed to} study what they like, says Rabbi W. Gunther Plaut of Tor- onto's Holy Blossom Temple. He told a parent teacher meeting the teaching proc ess | begins too late, and that a cur- riculum which forces all stu-| dents to learn the same things | goes against the child's individ: uality. "Not all children have to achieve the same knowledge of | mathematics, chemistry and/ Janguages. I would rather de-| velop a child's natural propens- | ity for, say, nature study, even if it be at the expense of some Euclidian theorem which in any case he will forget soon there-| efter." | foundland spend the grontar part of their money in accom-| modations and services. It is| not as if they were in Europe.) About the only thing they take back are small souvenirs, such|.. , as key chains." R. A. Tweedie, director of the New Brunswick travel bureau, said: "The proposed restrictions on take-home purchases made} by U.S. citizens visiting Canada| should not be viewed too pessi-| | misticaliy. that there are no limits on the! amount of money that may be spent by an American visitor while in this country. ee" Canada's proximity te! the US. and the substantial pre-| mium on U.S. funds makes Can- ada a preferred area for travel- ling Americans, This happy con- dition remains unchanged." Dave Lawson, president ofic Jim Bensley, spokesman for the Greater Vancouver Visitors and Convention Bureau, said: "We deplore this news and I think the federal government will deplore it, too." M. M. (Bud) Wocks, secretary of the Manitoba Retail Mer- chants Association said he saw the announcement and thought "we're going to be hit in the neck with this one,' He said tourists spend about/ture | $40,000,000 annually in Manitoba/withstood a national executive "It should be borne in mind| 2nd the cutback could almost|vote last week, he has not alt- halve this figure. WOULD AFFECT | Geraid J. Redmond, director} of the Nova Scotia travel bu- reau, said any restrictions on| expenditures by American visit- ors would have an adverse ef- fect on the- retail tourist busi- ness in Nova Scotia. Finance Minister Gordon, the Victoria Chamber of Com- merce, however, said: 'It would have a drastic effect on the merchant and a serious im- pact on the whole community." Mr. Lawson said Victoria's travel advertising now is aimed at bringing in American visit- ors, but this may have to be changed to lure visitors from Eastern Canada. said: ing measures to deal with their own balance of payments posi- tion, and.it is clear that in do- ing so they have taken account of our situation. . There does not appear to be anything amongst the pres- idcnt's proposals that will ting on the U.S. moves, | "They (the U.S.) are tak-|¢ jeral constituency groups are set- Douglas Still Talks Election | TORONTO (CP)--T. C. Doug- las, New Democratic Party leader, is holding to his predic- tion the Liberal" will take ad- vantage of a rift within the Pro- gressive Conservatives and. call a general election in the spring. He said in an interview Fri- day night that while Opposition Leader John Diefenbaker's sta- as Conservative leader }ered his thinking. The NDP leader said that Lib- iting Up election machinery. cause c anada serious diffi- GLECOFF'S s LULU) SPECIALS SUPERMARKET PLANTER'S PEANUT BUTTER TYa-LB, 65° JAR ONTARIO Delicious APPLES 3%-LBs. 25 3 us. 1.00 GLECOFF'S Supermarket 174 RITSON ROAD SOUTH 1 YOUR MEW ; j15 MINUTES! | 206 KING Friday nights installed FREE in Movement President Leon Kro- nitz said in a statement. Timberwolf Now 'Hunt' Quarry LONDON (CP)--Armed Eng- lish gentlemen trekked across the Bedfordshire countryside to- day with orders to shoot to kill a two-year-old Canadian timber wolf which escaped from th Whipsnace Zoo Friday. 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