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Home Newspaper Of Oshawa, Whitby, Bowman- ville, Ajax, Pickering and neighboring centres in Ont- ario and Durham Counties. VOL. ¥5 -- NO. 142 She Oshawa Cines 10€ Single Copy BSc Per Week Home Delivered OSHAWA, ONTARIO, WEDNESDAY, JULY 6, 1966 Clearing today warm weather day, 80. Class Mail Post Office Department Authorized es Second 'Ottawa and for payment of Posege in Cash. Weather Report with -- fine, tomorrow. Low tonight, 67; high Thurs 'THIRTY-FOUR PAGES OTTAWA (CP)--Finance Min- ister Sharp had a 5,000-word speech ready to explain his pro- posed revision of the Bank Act when he faced the Commons Tuesday night. Commenting on his plan to raise the six-per-cent ceiling on Minister Terms Act Provisions 'Objective Test' the ceiling completely now, "be- cause the transition to unre- stricted competition under pres- ent abnormal conditions could jbe abrupt and substantial, and |might well cause serious appre- | hension."' So the government proposes By JAMES. NELSON OTTAWA (CP)--Finance Min- ister Sharp proposed in the Commons Tuesday eventual re- moval of the six-per-cent ceiling on bank-loan interest rates. The move, to be preceded by a shifting increase in the cur- rent rate, holds the seeds of political controversy. The issue is said to have stirred conflict within the Lib- eral party and at times there were reports the minister wasn't able to win the whole- hearted support of the party caucus. At a press conference follow- ing his speech on the resolution preceding introduction of a re- vised Bank Act--a 40,000 word PRESIDENT Johnson's "con census' might currently in- dicate a loss of popularity with his involvement in Viet Viet War Solution Railway Nam. Yet while he plans a series of press conferences today, there is pictorial evi- dence he has one good friend. She's Courtney Lynda (for Lyndon) Valen- ti, daughter of former adviser Jack Valenti. His Seen By President By FRANK CORMIER JOHNSON CITY, Tex. (AP)-- President Johnson, declar- : --whic! id w va mine or ing the Communists know they|War ends--which he said was| was aware of the dangers o pore win .a military vikaey the case after the Korean War.|speculation, '"'our diplomatic re- Asked if this meant the ma-/ports indicate that the opposing in Viet Nam, has voiced optim- want to be stuck with $12,000,-|to time. We plan to continue 000,000 of worthless and obso- lete military hardware when the ithat." Johnson said that while he ing railway employees will set ism that "we are on the way'|Jor part of the Viet Nam/forces no longer really expect a Johnson planned a series of Viet Nam conferences at his ranch home near here tonight, summoning Defence Secretary Robert S. McNamara, Roving Ambassador W. Averell Harri- diplomatic advisers for an oyer- night business visit. The president expressed an optimistic view of the war dur- ing a press conference Tuesday on the front lawn of his ranch. Taking the wraps off a top secret message from the de- fence department, Johnson cited estimates that stepped-up bomb- ing raids on the Hanoi-Haiphong| area have wiped out 57 per cent of North Viet Nam's petroleum} storage facilities. He said 87 per| cent of all storage capacity has been hit during the raids that} began last week. Johnson disclosed tenta- tive plans to cut down planned purchases of bombs and ammu- nition for Viet Nam. He said McNamara tells him substantial reductions in pro- jected production rates may be desirable within three to six months, at a savings of several hundred million dollars. Right now, Johnson said, ord- ps solving the Vietnamese prob-| } "No, L wouldn't make such an evaluation." He said more men and materiel will be dispatched to the war zone and, added: "We have a policy of meas- ured response and gradually in- creasing our strength from time was history, he replied,| military victory in South Viet Nam." At another point, he said: "If we could only solve the later | problem in Viet Nam, and we think we are on the way to do- ing that, we could have a world that is rather peaceful and gen- erally -prosperous."' 4 Fighters Dodge Missiles "an objective test, in accord- ance with whieh the ceiling on interest rates will be removed when credit conditions have be- come substantially easier, .. . "In the meantime, however, we feel the maximum rate should be adjustable to reflect | changes in the general level of interest rates, which will help to reduce some of the distor- tions and injustices produced by bank loan interest rates, Mr. Sharp said the ceiling now is too low in relation to other in- terest rates, But to remove the ceiling now might cause disruption in finan- cial circles. The bill would pro- vide for "an objective test" un- der which the ceiling would be |removed when credit conditions |become easier. Meantime, the jmaximum rate should be ad- mother was the president's secretary. Courtney calls LBJ the "'prez". (CP Photo from AP) HON. MITCHELL SHARP Shutdown Predicted TORONTO (CP)--The Globe and Mail says 73,000 non-operat- the stage for a strike and in- evitable government interven- tion by refusing to accept a wage increase recommended by the chairman of two conciliation boards. The newspaper says Mr. Jus- tice F..Craig Munroe has rec- ommended a wage increase of 18 per cent over a two-year pe \riod for members of 14 inter- national unions. The reports have been handed to the federal labor department and will be presented to the justable to reflect changes in| 'He Present rigid ceiling. rates. Mr. Sharp said the maximum| 3 Mr, Sharp said the Porter|rate of interest the banks may | Ch |royal commission on banking|/charge on bank loans will be inese |and finance and the Economic| geared to the average market mended removal of the six-per-| bonds. But in answer to opposi- Prepare cent ceiling on bank-loan inter-| tion questions as to how this est rates. |will be worked out, Mr. Sharp} "The present bank interest)said the House should wait for) introduction gt bill oye | to protect the smaller borrow-| Mr. Sharp did not specify the od fact only protects those/rate whith runs from 5 to 54 HONG KONG (Reuters) -- who are fortunate enough to be) per cent. Preparations are being made by able to obtain bank credit, and 80 sac ticngy gh neon cg Pp wo, | kwangsi region bordering North ; higher} Gordon last year to allow new|_ oon" a ger to be incorporated by Jet-| Viet Nam to go into action Since last year, cfedit condi-|ters patent, in the same way|/against Americans "at any tions have become tighter and ; | that the six 1 diten cote to Parhament as now for|*eency Teported today. to that the six-per-cent ceiling) come to | ast has caused inflexibility, he said.|special acts of incorporation.| The official Communist news railways and unions today, the| "Bank loans are in fact being story says. rationed. In practice, this the general level of interest} GEARED TO YIELD Council of Canada both recom-|yield on short-term government For W ceiling which appears to some or ar The finance minister said he}¢hinese militiamen in the forces the others to.seek funds las ordinary companies. time," the New China news other interest rates have risen But he said he is willing to lis-|agency said meetings in many It says the unions now are|means that larger borrowers ten to further argument in favor|parts of the region proclaimed of Mr. Gordon's plan. jsupport for the North Vietna- Mr. Sharp is continuing a bill expected to be introduced in the Commons today -- Mr. Sharp was asked whether he had the solid support of his col- leagues for his proposals. "T have no doubt in my mind about it," he replied. Announcing the plan in the Commons, Mr. Sharp said he expects this and other. moves in his draft revision of the Bank Act will lead to healthier com- petition between the banks and so-called near-bank trust and loan companies. The gévernment's proposals are aimed at higher interest rates on bank deposits, more bank money for mortgages, lim- itation on bank ownership of near-bank and other corporation shares, and fewer directors serving simultaneously on the boards 'of banks, near-banks, and other companies. Sharp To Remove Ceiling On Interést Intra - Party Argument Said Spurred By Move The bill contains a formula by j}which the present loan-interest ceiling will be raised by perhaps Oe percentage point or more above the yield on short-term government bonds at current market prices, now nearly 51% per cent. This will be adjusted every six months. But the formula also includes a point at which the chartered banks will be freed of any ceil: ing restriction on loan charges. This will come when the yield on short-term bonds falls suffi- ciently to indicate that the cur- rent tight money situation has been overcome and truly com- petitive forces have returned to the money market. The details will not be dis- closed until the bill gets first reading. Mr, Sharp referred only to the highlights of his bill Tuesday night, but his speech immedi- ately drew conflicting comment from banking officials and other leaders of the financial commu. nity. W. Earle McLaughlin, chair- man and president of the Royal Bank of Canada, said a pro. posal by Mr, Sharp to set up a new Crown company to insure depositors against loss in the unlikely event of a bank failure is a shock and 'an unnecessary reflection on the Canadian char- tered banks." However, §. T. Paton, presi- dent of the Canadian Bankers' Association and chief general manager of the Toronto-Domin- ion Bank, termed the deposit in- surance proposal excellent. Increase In Chartered Banks Cited As Result Of Measures Mr. Sharp said the deposit in- surance, which will cover other federally - incorporated deposit- taking institutions and will be available to provincially-incor- porated trust and loan compan- ies, should encourage creation of more chartered banks. During Heavy Air Strikes By ROBERT TUCKMAN SAIGON (AP) American planes dodged a heavy on-| Slaught of Soviet-made missiles over North Viet Nam's Red River Valley Tuesday during Fighter - bombers also ham- mered bridges, barracks, stor- age areas, anti-aircraft sites and other installations in the southern panhandle as well as the Red. River Valley. |preparing strike ballots for dis- | who could and should be seek- jtribution to members but a/ing funds in the market are ob- |strike deadline is unlikely be-|taining funds from the banks |fore the first two weeks of Au-| Which would otherwise be avail- gust. able to the small borrower." Two groups of international} It would be unwise to remove plan proposed by Mr. Gordon to limit the amount of bank stock that may be owned by an individual shareholder, particu- larly a foreign bank. unions are involved in the dis-| pute: One comprises seven| shopcraft unions, the other six| junions including trainmen, sec-| tionmen and signalmen and a| 'Seven Days Row jmese Struggle and that they |were closely following the "frantic new war moves" of the United States in Viet Nam, One militia officer was quoted as saying: "We Chinese militiamen here drink from the same river as the Vietnamese people and our kinship is very close... We In ultimately freeing the banks from the interest - rate ceiling, which was seven per cent from the late 1880s until it was cut to six per cent near the end of the Second World War, Mr. Sharp accepted advice from the Porter royal commission on banking and finance and from the Economic Council of Can- one of the heaviest raiding days of the war. The U.S. Military Command announced at a briefing today that 27 to 29 surface-to-air mis- siles (SAMS) had been fired at | U.S, planes. A few hours later, | however, official spokesmen re- ported there may -have been }some duplicate sightings in the }accounts from pilots. The spokesmen said it prob- The U.S. command reported ground fighting was extremely light in South Viet Nam, con- tinuing the relative lull of re- cent days. Wilson Downs must be ready, along with the Vietnamese brothers to smash the war of aggression waged by U.S. imperialism." jSeperate group representing| | communications. | | The boards that dealt with} both groups were made up of wat ous «cs Breaks Out Again inee Harry Crowe and railway} TORONTO (CP)--A series ofjleast in part--by the reported |nominee Gordon Cooper, a Hali-| decisions by the CBC involving transfer of H. G. (Bud) Walker, |fax lawyer, its dispute-ridden Toronto oper-| vice-president and general man- The Globe and Mail says Mr.| ations was followed today by an|ager at Ottawa for English net- |Ouimet Denies ar Ld Crowe proposed a wage in-| announcement from Douglas) works, to become senior official) Appo t jcrease of 23 per cent, plus 17|Leiterman, executive producer|in Toronto, in ment per cent for skilled workers in| of the controversial This Hour; He said he has advised the shopcraft group and 25 per| Has Seven Days, that he is sus-| Reeves Haggan, general super- cent, plus 15 per cent for| pending the production of Seven| visor of public affairs, 'that "I | skilled workers, in the other un-| Days' fall programming imme-/cannot accept instructions from ion group. | diately. |H. G: Walker which violate the or Mr. Leiterman also said in a|terms of my contract." |statement that he understands; Mr, Leiterman added he ithe producers of three other|would continue to accept in- public affairs programs are con-| structions of supervisors of pub- sidering similar action. \lic affairs. He was to confer leftist group in his own Labor! Polyansky Gets party who had demanded Brit-! | He said the S Days ac-| with Mr. Haggan today. Plea For Help |, forced by "the tétal| Among decisions announced ain break away from support of United States policy in Viet Nam. TORONTO (CP)--A Latvian-| repudiation of our position" by|by President Ouimet at Ottawa who had claimed /born Canadian citizen, who says|the CBC management, which|was the installation of senior overwhelming sup port, were|he has sought permission for 22| Tuesday announced five pre iain, ehnite at the Toronto Rebels LONDON (AP)--Prime Minis-| ter Wilson today beat back a| sa de Rates | The rebels, crushed by a vote of 214 to 46 at) years for his mother to come|sions after a directors' meeting.|and Montreal productions cen- a: closed-door meeting of Labor|from Latvia to Canada, had a|One was an offer to Mr. Leiter-| tres, though appointees were members of the House of Com- letter requesting that she be al-|man to produce Seven Days|not named in the announce- mons. Wilson apparently spoke|lowed to emigrate presented to|again next season. ; | ment. himself in leading the fig ht|Soviet Deputy Premier Dmitri Mr. Leiterman said similar) DENIES RUMORS against the leftists, Polyansky Tuesday. .,action to his own is ®ing con-| Today Mr. Ouimet said in a One source said: sidered by ihe producers of|statement that rumors that Mr. "Most MPs accepted the |. OTTAWA (CP)--CBC Presi- dent J. Alphonse Ouimet issued ja statement today denying that \H. G. Walker has been ap- pointed to a new position'as sen- lor vice-president in Toronto. __Mr. Walker now is a vice-pres- jident and general manager of the English networks based at CBC headquarters in Ottawa. He was a central figure in the dispute with producers over the program This Hour. Has Seven Days. _ "These rumors which began in Toronto yesterday afternoon and have since been given further currency on radio and television, are false," Mr. Oui- met said in a statemen® mance inventories are ample|#Dly would be at least 12 hours and production exceeds usage in| spo nde tena rr saauaie te Viet Nam. He said he doesn't] ve established, | | The original announcement! jsaid it had been the largest} e ap number of missiles fired in a | single day since the beginning of |the air war and despite the con-| | | fusion later, it obviously repre- 1ews |sented a day of heavy missile activity. The largest number of MOSCOW (AP) -- The Soviet) missiles sighted previously was mews agency Tass today ac-|12 one day last March and it, cused President Johnson of mis-| Was believed Tuesday's firings representing the American) exceeded that total. bombings in the Hanoi and Haip-' The missiles were fired from hong areas. sites in the Red River Valley Tass said that in his news con-| 50 to 115 miles north and north- ferences Tuesday Johnson west of Hanoi. U.S. Air Force "tried to portray the bandit pilots reported wrecking four of! raids by American planes on the sites and also hitting two densely populated areas of Ha- noi and Haiphong as the bomb ing of military targets." The agency also maintained that the president clearly made felt his "'irritation with the pro- tests by honest and soberminded Americans." It said he did this by saying that "if everybody in the United States behaved like the 'American boys' in Viet Nam the country would have nothing to worry about." Johnson 'tried to convince the correspondents of the 'civilizing mission' of the United States in South Viet Nam. by reading a statement on how U.S. advisers and specialists help breed fish in ponds, expand medical serv- ices and accommodate refu- gees," Tass said. "It is quite natural that the statement contained no informa- tion on the number of schools and houses destroyed by U.S Napalm and bombs, or the num ber of South Vietnamese people left without a roof over their heads," fuel depots within 33 miles of .'the North Vietnamese capital. One of the oil storage areas was 28 miles north of Hanoi, the other 33 miles northwest. AT CARIBBEAN CONFERENCE prime minister's statement as |immensely impressive" in put- continuing its support of U.S. policy in Viet Nam Guyana Premier Lashes British Policies By KEN CLARK OTTAWA (CP) -- The Com monwealth Caribbean - Canada conference opens today minus one premier, but: plus one ring- ing political speech by Forbes Burnham, premier of newly in- dependent Guyana. Mr. Burnham delivered a pre- conference tirade Tuesday night against British policy in the Caribbean to a small gathering - of the capital's Guyanese com- munity. He added a call for Caribbean unity to prevent the possibility of the area becom-'Canada_ and ing a U.S. or Canadian satel- lite George C.' Price, premier of British Honduras, decided to stay home because of political unrest 'arising from a_ long- Standing dispute over Guate- malan territorial claims on the Honduras. The country will be represented by a delegation. The. other 12 chief ministers from Commonwealth Caribbean countries have arrived for the conference--first of its kind The announced aim is to strengthen the ties that bind the developing ting the government's case for Frank Drea, a reporter for| \the Toronto Telegram, gave the| Document, Quarterly Re port}Walker has been appointed to man's letter to Mr. Polyansky|and Compass. the Toronto vice-presidential po- |during an official tour of a shop-| Mr. Leiterman indicated his| sition are "'false."' He said there ping centre in Toronto by the/decision to cease filming, tap-|has been no time to consider visiting Soviet parliamentar-|ing and program planning for| who will be appointed to either ians. |Seven Days was caused -- at/job. 'Malawi Gains Independence BLANTYRE, Malawi (Reut- | ers) -- Ceremonial guns boomed out over this landlocked Central African nation at midnight Tues- day night to end 75 years of British sovereignty. Formerly the British protect- jOrate of Nyasaland, it became English - speaking countries of|ripe to think about getting to-,two controversial issues that|independent of Britain. in 1964 the Caribbean. gether again. Canada is anxious to promote more trade and to push for the|peting Caribbean countries to ing of Canadian' immigration| Wealth development of the Caribbean|become a U.S. satellite or anjlaws to allow more Caribbean countries as a unified trading appendage of Canada if Canada|people in, and more economic | | partner should some day develop a big-|aid from Canada. It now totals|for peace and calm in the coun- | URGE FREE TRADE power complex, -he said. about $10,000,000 annually. try and warned Africans not to In addition to his criticism,) As for the British, they were} The 30 - member Canadian| molest the 8,000 Europeans and Mr. Burnham made a strong|foresaking the Caribbean after|delegation headed by Prime|12,000 Asians included: in Ma- plea for development of a free|taking from their colonies all| Minister Pearson--the confer-|lawi's population of 4,000,000. trade area in the Caribbean as they wanted. However, Mr./ence chairman -- is also ex- a prelude to the long-term goal Burnham said he noted the pected to talk over with the 65 Cluding 209 political detainees, of political unity withdrawal without bitterness visitors the merits of joiningjwere released to mark the He said it was unfortunate|as it was the practical thing to|the Organization of American|change of government. A 2%- jthe West Indies Federation! do. jStates. None of the conference/day public holiday began at 'folded in 1962. The time was' Mr. Burnham did not mention! countries is in it, noon Tuesday. try's first president, appealed appear certain to arise at the/@nd today officially became al The alternstive is for the com-| conference: a request for eas-|ePpublic within the Common-|~ Dr. Hastings Banda, the coun-|: More than 800 prisoners, in-|: ada. He told the press conference he believes he has the solid backing of his Liberal party colleagues. Earlier there were reports that a dissident group, led by former finance minister Walter Gordon and former sec- retary of state Maurice Lamon- tagne, argued against lifting the ceiling for fear the party would suffer politically. Mr. Sharp also announced he is calling a federal-provincial conference this fall to discuss consumer loan interest rates and full disclosure of effective rates to consumers who buy on time-payment plans. Recommendations of a Senate committee on the subject, along with studies made by several provinces, will be considered by the conference. Of more specific interest tw the banks were proposals to: --Let them issue debentureg for long-term investment by their customers; --Allow reduced and more flexible requirements for hold« ing cash reserves against their deposit liabilities; --Require that banks disclose details of their inner reserves and profit and loss on invest- ments. The eight chartered banks will be prevented from holding more than 10 per cent of the voting stock of any other company, in- cluding trust and loan compan- 1es, A director of one bank may not serve as director of another bank or of a trust and loan company, Banks will be prevented from making agreements among themselves on interest rates charged borrowers or paid to depositors. Mr. Sharp called his plan a blueprint for competition. He hoped there will be more flex- ibility in the rates the banks charge borrowers and pay de- positors, and that rates will be more responsive to market con- ditions. "I trust that in the next decade we will witness a sig- nificant modernization of our banking system," Mr. Sharp said. nunaeneignnanseacmanaeae et NEWS HIGHLI | British PM To Make Washington Visit LONDON (Reuters) -- Prime ningun tana GHTS Minister Wilson an- nounced today he will visit Washington July 29 for talks with President Johnson on issues. Viet Nam and other world Conciliation Board Splits On Wages OTTAWA (CP) -- A federal. conciliation board split three ways in recommending pay increases over a two- year period for 28,000 non-operating railway employees, the Labor department announced today. Ann Landers--18 City News---17 Classified--26 to 29 Comics--31 Editorial--4 Financial---24 MUU UUESLUA VCE petra ... In THE TIMES today... Sod Turned For Crippled Children's School--P. 17 Prizes Presented At St. John's School--P. 5 Winning Pitchers Compile 32 Strikeouts--P. 10 neem Obits--30 Sports--10, 11, 12 Theatre--9 Weother--2 Whitby, Ajax News--5, 6 Women's--18, 19, 20, 21 samsul