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t j } T.D. Thomas Honored At Testimonial D THOUGHT FOR TODAY If you talk too fast you're apt to say something you haven't even thought of yet. 4 inner -P.9 WEATHER REPORT -- A few isolated this evening. thundershowers Mainly sunny Tuesday and cooler with light ' 'winds. VOL. 91--NO. 148 Price Not Over 10 Cents Per Copy he Oshawa Times. OSHAWA, ONTARIO, MONDAY, JUNE 25, 1962 Authorized as Sec: Ottawa and for payment ond Class Mail Post Office Department, of Postage in Cash, SIXTEEN PAGES REDS CLOSE WATER GAP TO F Closing one of the few possi- ble escape routes to West Ber- lin, East German police (Vo- pos) use rubber dinghy to sink rolls of barbed' wire into the Spree River near the border in the Kreuzberg district yes- terday. Other police, stripped down to rubber boots and shorts, let down more of the huge wooden frames to which barbed wire was attached, Red Americans Stiffen Berlin Proposals LONDON (AP) --WU.S. Statelals for a Berlin settlement with Secretary Dean Rusk met with) Russia. Foreign Secretary Lord Home! Qualified informants reported today to align British-American|the United States has raised its policies on the most <urgent'price for a settlement of the problems of Europe, Asia and dispute because Washington is Africa. nvinced the Soviet Union is As the two began their Pm grip of a grave internal ference in Home's green-walled crisis. | foreign office study, the three) "It seems to us that the entire Big Western powers sent new;Communist camp is in the midst notes to Russia urging early/of a very serious food short- East. + West talks in Berlin to age," one authority said. ease tensions along the wall) "With agricultural output and| through the divided city. organization fouled up, the So- The American, British and viet leadership may well be re- French notes were sent to Mos-|thinking its foreign policies. cow for delivery, probably by) This, therefore, is no time for| Tuesday. They proposed thatiWestern concessions with-| the Big Four commandants|oyt yery definite counter-con- meet in an attempt to curb! cessions." shooting incidents along the wall that divides the Commun- ist and western sectors of the city. The Western notes replied to @ warning earlier this month! Formosa Patro REEDOM frogmen also sank underwater barriers to prevent swimmers | reaching the freedom of West Berlin. irephoto) | Refugees Flee Oran As Bombs | Level Bedldines ORAN, Algeria (Reuters) -- Europeans in Oran today were under terrorist evacuation '"'or- jders" as still more violence was threatened in the western Al- gerian city. The European Secret Army Organization Sunday night once again called on European set- tlers to flee the city for France before the July 1 referendum on Algerian independence. In a piraté radio broadcast, Secret Army leader Paul Du- four warned the city that "what is happening now is nothing compared to what we are going to do." The terrorists exploded 15 plastic bombs in Oran Sunday night and set fire to the city jhall for the third time in two days, The municipal library was destroyed by explosives and --(AP W ¢ | WASHINGTON (CP) -- Al- though its own export drive llikely will be hurt, the United \States has moved swiftly to head a massive international ef- fort to help Canada out of its |dollar troubles. : Providing almost two-thirds of the $1,050,000,000 in loans and leredits placed at Canada's dis- |posal to bolster a sagging dol- \lar exchange rate, the United States as concluded that Can- |ada's temporary austerity pro- \gram will choke off some U.S. |goods from the Canadian mar- et, Nevertheless, a U.S. lspokesman said Sunday there jwill be no immediate attempt Ito seek tariff compensation lfrom Canada, although the |whole issue of compensation for trade losses will be discussed at Geneva under the General |Agreement on Tariffs and | Trade. The spokesman suggested the austerity measures -- particu- larly the extra levy of five to 15 per cent on imports--may be removed within one year. If they last longer,' U.S. policy would be reviewed and the U.S. attitude on compensation might stiffen. |k ment feels the combination of massivé, international financial aid and the austerity measures should crush the speculative jraid on the Canadian dollar. | At the same time, the Cana- | treasury for foreign investment adds a measure of security for some $16,000,000,000 worth of U.S. in- vestments in Canada. . While the spokesman. sug- gested the emergency meas- ures will be sufficient to re- store confidence of foreign in- vestors in Canada's economy, he indicated the United States may be hurt in three ways: Through the higher import lev- ies, the lash in Canadian tour- ist import allowances and through higher Canadian inter- est rates attracting more for- eign capital. The United States has dollar problems of its own. It has been seeking to boost exports to re- duce an international payments deficit attracting gold abroad and it has been trying to keep UAW Council | Backs Douglas In Byelection | pPORT ELGIN, Ont. (cP). |The Canadian United Auto | Workers Council is urging New| In general, the U.S. govern-| Democratic Party Leader T. C.) The Social Credit party | Douglas to accept any invitation) he may receive to represent the} \NDP in a byelection, |, The 125 council delegates, |who represent the union's 65,000 |Canadian members, met in US. Moves Swiftly To Stem Dollar Raid American capital at home to reduce overseas holdings of dol- lars which could be converted into gokd. But support of the Canadian financial structure also is im- portant because Canada is the top market for U.S. exports. The U.S. treasury department, in a formal statement, said it is confident Canada has the capacity and determination to defend the value of the dollar. PM Must Caouette By THE CANADIAN PRESS Real Caouette, deputy na-) tional jeader of the Social) Credit party, says Prime Min-) ister Diefenbaker should find a} satisfactory solution *to Can- sign, 4 Mr, Caouette's comment, made in his hometown of! Rouyn, Que., was perhaps the; strongest criticism Sunday of the Progressive Conservative] government's newly announced; austerity program. leader, Robert Thompson, visit- ing in Detroit, said the program came "'too late with too little". He was echoing NDP National Leader T. C. Douglas, who said MR. DIEFENBAKER Resign Claims the government was trying to impose a "'tight-money"' policy making it difficult for Cana- dians to get money needed for investment, and at the same time it was uftging Canadians to jada's financial problems or re-|invest. "Mr. Diefenbaker ought to re- sign rather than make propo- sals like this," he said. The proposais cut down on public spending at a time when public works were needed to combat unemployment. "If this keeps up we will have 1,500,000 unemployed by next winter," he said. WON'T TOLERATE He reiterated earlier siate- ments that his party would not tolerate a tight money policy in jhe was convinced many of the |measures announced were 'too peacetime, lother bombs and fires damaged|dian pledge to take long-term|uarterly session at this Lake six schools and several other|constructive measures 'and|Huron resort town during the lic bulidines. 'maintain hospitable climate)/Weekend. : uildings a oe m | The council also wired Sas- |katchewan Premier Woodrow Lloyd asking him to put the government's medical care in- surance plan into effect July 1 "as it is" and not give in to pressure from the Canadian Medical Association. The council demanded Section 48 of the Ontario Labor OTTAWA (CP)--External Af-|fact that the South Vietnamese | Relations Act be rescinded. The fairs Minister Green said today| government has undertaken to'section gives management the a report by the Indian and Ca-|/end these extraordinary meas-|right to express its views to its nadian members of the Viet | ures as soon as the North Viet-| workers during a union organiz- Nam Control Commission es-|namese authorities have ceased|ing drive from Moscow. The Russians blamed a series of shootings across the Communist-built wall on what they called German fascist elements backed by the Allies. " The Soviets demanded West- 3 ' f + ern action to halt these inei.| warships ee ae daths. "which were toned prone today to reinforce the Canadians Spot . e ~ . 7 he reat of ee ace the port ac'ge somone Viet Nam Plot " Communist military buildup on} bts Mc to the aid of her the coast opposite the National- 'ast German Communist ally. ist offshore islands of Quemoy Rusk brought with him NeWland Mats. sini Aiffened American propos-| Most of the 7th Fleet ships that. had been in the Big Yo-| Bolstered By U.S. Warships TAIPEI, Formosa (AP)--U:S. that} | jin the recent federal election, little and too late" and would aggravate unemployment. In Ottawa, Liberal Leader Pearson reserved judgment while expressing hope the pro-| gram would be effective. CALLS CONTRADICTORY Mr. Caouette, who delivered 26 Quebec seats for his party said the prime minister. had proposed two absolutely con- tradictory solutions to the prob- lem. In effect, said Mr. Caouette, tablishes* "beyond any reason-| their acts of aggression|-- able doubt'? that Communist|/and have begun to respect the) North Viet Nam has been en-|Geneva agreement," said Mr.| gaging in aggressive subversive} Green. activities against pro - West! He said the Canadian govern- South Viet Nam. | | He also said in' a statement| ™ent fully endorses the conclu-| that the report, terms of which|Sions of the commission ma- were released today here and JOrity. in London, makes clear that the} Poland, third member of the jkosuka, Japan, naval base! pulled out during the weekend. A spokesman said only that they were 'deploying for op- erations at sea." Fil Trial For Falls 7200 Feet Into Rice Field GALVESTON, Tex. (AP) -- A ee ae | sky - diver, parachuting for But Pacific Fleet headquar- pleasure, told of surviving a '¢TS in Honolulu confirmed that 7,200 plunge Sunday after both they were strengthening the pa- his ase tase'. : Hs trol in the Formosa Strait off m Star Faces POLICE 725-1133 John Rodney Card of Houston China's Fukien province. was in hospital with an undeter- A navy spokesman in Hono- mined back injury. jlulu said the move was "almost He was jumping with other routine" in the light of reports jincreased military aid which South Viet Nam has received |from the Unites States since last December was requésted to ;commission, dissented from the majority report, copies of which were sent to both Britain and Russia. They are co-chairmen | | members of his club when the of the Communist buildup. He deal with the subversive activ-\of the 195 Geneva conference accident occurred. He landed in refused to say how many ships a rice field. were on_ patrol. SERVICE VOTE OUSTS BROWNE ities "The report brings out the which set up the Viet Nam armistice control commission. Liberals Gain 2 Seats OTTAWA (CP)--A strong Lib-| John's West and fellow-Conserv-| Commons still is required to de-| eral preference by armed forces'ative C. A. Best in Halton, voters gave that party two addi-| Commons standings, discount- tional Commons seats at the ex- ing the possibility of successful pense of two Progressive Con-| recount appeals, now are: servatives, one a cabinet min- 1962 1958 1957 ister, whose election had. been) 208 113 indicated by the count of civi- 49 105 lian ballots in the June 18 elec-| 0 19 announced| . tion. ' 8 95 The service vote, 6 3 Sunday by Chief Electoral Of-| 0 0 ficer Nelson Castonguay, forged) 265 265 comeback victories for Liberals! Richard Cashin, 25 - year - old) lawyer, in the Newfoundland) 116 99 30 19 0 1 265 PC Lib sc > NDP (CCF) Ind. Deferred Totals VOTES LY 16 The deferred vote is in Stor- | feat Mr. Diefenbaker's adminis- tration. The 96,179 service votes were cast in Canada and overseas be- tween June 11 and June 16 by | servicemen, their wives and pa- ltients in veterans' hospitals. | The favored Liberal candi- | dates in 257 of the 262 constitu- encies involved -- two ridings |elect two members apiece--Con- servatives in four others and an NDP candidate in the only rid- ing where no Liberal was run-| ning. That was the British Co-} Following the civilian count | Mr. Browne held a 170-vote lead lover Mr. Cashin. The service vote--311 for the Liberal and |102 for Mr. Browne--demoilshed |the lead and left Mr. Cashin 39 | votes ahead. In Halton Mr. Best, son of the co-discoverer of insulin, Dr. C. H. Best, won by 61 votes election night but trailed 260 to 133 in the service vote which gave Mr. Harley an over-all margin of 66 votes. Several other Conservatives riding of St. John's West and/ mont, an Eastern Ontario riding|jymbia riding of Skeena, wonjhad close calls, James A. Mc- Harry Harley, 35-year-old for-| where the death of the Liberal mer army medical officer, injCandidate put off the election Ontario's Halton seat. unitl July 16. Upset by the service vote-- Mr. Browne, 65-year-old _vet- the Liberal party captured 63.5) eran of three terms in the Com- per cent -- were Solicitor-Gen- mons and two in the Newfound- eral William J. Browne in St.\alnd legislature, became the . fifth member of Prime Minister | Diefenbaker's cabinet to lose his CITY EMERGENCY | PHONE NUMBERS ~ Seat, ; State Secretary Dorion, Mines |Minister Flynn, Postmaster- |General William Hamilton and Works Minister Walker were de- feated June 18. FIRE 'DEPT. 725-6574 HOSPITAL 723-2211 in the minority government sit- juation, A combined vote of ,he ithere opposition parties in ype by NDP incumbent Frank How-| ard. | MORE THAN CIVILIAN The Liberals' 63.5 - per - cent share of the service vote com-| pared with a 36.9-per-cent slice} given them by the civilian vot- ers. Conservatives got 25.5 per cent of the service vote as against the 37.5 per cent with) which they topped the civilian | vote, Another 6.5 per cent gave So-|riding of Prince Albert; Justice| tion workers. cial Credit candidates the nod The results made no change and 4.5 per cent-voted for the Wallace NDP. The NDP 13.6 \Credit 11.6 civilians gave the Bain in Elgin had his margin chopped to 81 votes from 192. Erik Nielsen's edge in Yukon slipped to 60 from 177. A. Deb. McPhillips saw his lead in Vic- toria (B.C.) dwindle to 239 votes from 1,002. TORIES FAVORED The four Conservatives fa- jvored by service voters were |Mr. Diefenbaker in his home |Minister Fulton, Kamloops; NeSbitt, Oxford, and Remi Paul, Berthier - Maskin- iby one vote, ' ROME (Reuters)--An Italian investigating magistrate has committed actress Sophia Loren and film producer Carlo Ponto for trial for bigamy, the news {agency Italia reported here to- day. The agency said the magis- trate handling the case, Dr. Giulio Franco, had sent Ponti for trial on a charge of bigamy and Miss Loren on charge of | complicity. Last January, public prose- cutor Alberto Guasco formally requested that proceedings for bigamy should be opened against them: r 5 Bigamy can divorce from his first wife, Giuliana. After the couple returned to Mr. Thompson said the gov- ernment has prescribed strong medicine because it has no other alternative. "Too often,' said Mr. Thomp- son, "the prime minister moves only when he is pushed. Ob- viously he is 'being pushed hard today. One can only hope to- day's decisions will be sufficient for today's crisis." Mr. Thompson said the au- sterity program will mean tighter money pressures than ever before and a higher cost of living with the Canadian con- sumer footing the bill. "Instead of freer trade, we hide behind higher isolation tar- iff walls and our position is more _ bindi STERN ECONOMIC PLAN TO END DOLLAR DRAIN Huge Loans Prop Foreign Reserves OTTAWA (CP) -- A bell- tightening program of wide- finan- cial emergency and save the devalued Canadian dollar. Prime Minister Diefenbaker announced Sunday the program --all except the interest rate boost--and said Canada has lined up $1,050,000,000 in for- eign cash loans and stand-by credits to bolster the fast- shrinking foreign exchange re- serves. This included a $300,- 000,000 loan from the interna- tional monetary fund. He called on Canadians to support "in a spirit of national purpose" these austerity mea- | sures: i) | 1. Immediate temporary tar- \iff surcharges .of five, 10 and 15 per cent on some $3,100,- | 000,000 in annual imports--more jthan half of the country's im- port purchases--but not affect- ing another $2,900,000,000 of im- ports such as basic foods, raw materials and industrial com- ponents, 2, Cuts in government spend- ing amounting to $250,000,000 in a full year. 3. Sharp reductions in duty- free exemptions on foreign pur- chases brought home to Can- ada by returning tourists; ex- cept for tourists already abroad. PEGS INTEREST RATE In a related step "to protect the external value" of the dol- lar, the Bank of Canada pegged its interest rate at six per cent, Austerity Move Top Story In British Press LONDON (CP)--British com- mentators today compare Can- ada's austerity program with the measures the British gov- ernment adopted last year to deal with Britain's economic crisis, "In each case decisive help in a currency crisis was ob- tained at the price of a high bank rate, higher taxes and other measures of deflation aimed at correcting the balance of payments," writes Richard Fry, financial editor of the | compared with last week's floating rate of 5.17 per cent and the previous week's 4.18 per cent. This was apparently designed to boost interest rates gener- ally and attract foreign capital back into Canada. It was seen as a signal to the chartered banks to curb their lending in : return to a tight money situa- ion. Mr. Diefenbaker predicteé th emergency program would chop $450;000,000 in a full year from the government's budge- tary deficit and produce a $300,- 000,000 annual reduction in the country's perennial interna- tional balance - of - payments deficit -- recently running at $1,250,000,000 annually. The prime ministers' state- ment, issued on a Sunday to avoid market upheavals, fol- lowed four straight days of cab- inet meetings in the wake of last Monday's general election, The statement- official indication of the of the nances international paym : deficits, had dried up and that rf "very recently" capital started flowing the other way, out of the country. Tariff Hikes 'Double Blow' For Japanese - TOKYO (AP)--Japanese offi- cials and businessmen today ex- pressed gloom over Japan's prospects for exports te Canada as a result of Canada's new aus- terity program, Canada's new import tariff in- creases of five to 15 per cent were called a "'double blow" to Japan, which had already im- posed voluntary controls on its exports to Canada, A foreign ministry official said Japanese exports to Can- ada will become "more diffi- cult than ever." He said Japan has been observing self-imposed restrictions on nine items to Canada, representing one-third of the value of exports to that country. The nine items include tex. tiles, metal dinner sets, radio tubes and transistor radios. d Manchester Guardian. Italf"in 1959, three private cit- izens asked the public prosecu- tor's office to start investiga- tions into the case. Last April 27, the Ecclesias- tical Court of Rome declared Ponti's first marriage valid. The ruling came on an ap- peal by Giulianan Ponti against a 1959 decision that there were no grounds for nullifying her marriage to him. The Rome public prosecutor asked that bigamy proceedings be instituted against Miss Loren and her husband last January. There is no divorce in Italy. Miss Loren and Ponti were married in Mexico although the producer had not shed his pre- vious wife in the eyes of Ital- ian law. Miss Loren was married to Ponti by Proxy in 1947, after the producer obtained a Mexi- | Ford Agreement Signed By UAW CLEVELAND (AP) -- United Auto Workers Local 420 -ratified an agreement Sunday ending an \18-day strike at Ford Motor |Company's Walton Hills stamp- ing plant. The dispute had halted all Ford, passenger car output and jmade idle 77,000 employees-- about half of all Ford porduc- Ford spokesmen had indicated it would be several days before plants where oocrations were per cent and Socialjonge - Delanaudiere, the latter|curtailed would call back laid-|in& the act and to impose 'ap, :loff employees. | Supreme Court Declares CPR Broke Law OTTAWA (CP)--The Supreme Court of Canada ruled today that the CPR broke Ontario la- bor laws when Toronto's Royal York Hotel fired its striking em- ployees last year. The court, in a unanimous de- cision, upheld judgments by Chief Justice J. C. McRuer of the Ontario High Court and the Ontario Court of Appeal that the CPR-owned hotel, in firing strikers, committed an offence under the Ontario Labor Rela- tions Act. f The Ontario Appeal Court's judgment ordered senior Mag- istrate T. §. Elmore of Tor- onto to convict the hotel of br- propriate penalties." OPP Constable Says Sergeant. Wanted Tipoffs TORONTO (CP)--An Ontario provincial police constable said today that former OPP Sergeant John Cronin told him in 1954 he could get him on the OPP anti-gamblink squad as a "'tip- off man for the organization." Const. Lawrence Wood told the royal commission on Crime that at the time he was operat- ing a restaurant in Port Hope after having resigned from: the force following three years service including a term with the anti-gambling squad, Cronin, former of the squad, resigned from the OPP in 1954, and he testified before the in- quiry that he had around $50,- 000 saved up when he left the force. Canadian Dollar Value Picks Up LONDON (Reuters)--The Ca- nadian dollar rose sharply on the London foreign exchange market today following plans announcéd Sunday by the Ca- nadian vernment to s then the currency's position. There were reports of sizable Swiss buying of the Canadian dollar against the United States gollar and the pound moved giver against both. PRISONER EXCHANGE DISCUSSED John Addis, right, British ambassador to Laos, talks. with Prince Souphanouvong, Laotian deputy: premier, in Vientiane about, British prison- ers still held K) the pro-Com- ¥ munist Pathet Lao. Souphan- ouvong is a leader of the Pa- thet Lao. --(AP Wirephoto via_ radio from Bangkok) 2 * &