The Ottawa Journal from Ottawa, Ontario, Canada • Page 1

The Ottawa Journal RIDEAU TRUST GUARANTEED fwlfl 81st Yeor-228 Sunrise JS un. EOT SuBMt 7J pjb. EOT Seven Cents Ottawa, Friday, September 9, 1966 METRO FINAL Phor 236-7511 Forty-Two Pages To Combat Inflation FRt(MfNfc mmm rug SUNNY, WARM Low, 55; High, 80 Won't HaltCS Increases By RICHARD JACKSON of The Journal Wage and salary "guideline!" limiting "increases to what Finance Minister Sharp hope will be four to five per cent? Not for everybody. Particularly not for "certain categories" in the Civil Service. What the finance mim.ter called "the economic facta of life," require pay increases generally to be held within the suggested five per cent limit.

SOME EXCEPTIONS But, he conceded, there will be exceptions and spelled them out: "Many employers will have to grant large increases in the next few months simply to keep their men. "WT shall have to do in certain categories of the public service but somehow we must get back as soon at we can to more reasonable increases." Most likely, believe civil service and staffside authorities, the professionals. These are the people the scientists, re searchers, -medical, legal and technical men with hard to come by qualifications who are in hottest demand. So hot, they've become an "export" to the better paid United States labor market, an export, says the Government, that the country can't afford. Rhodesian Seizure 'Illegal' SALISBURY (Reuters)-Two JMfcBsWsfcBsSE ruled today that the tttt coosti-tutioa Inti educed at the time of Rhodesia's unilateral declaration of independence and the present government set up under It are not lawful.

Bat the todies ruled at the tame time that the regime of Prime Minister Ian Smith was the only effective government of the country. Tha Judgea were giving reserved judgment on a constitutional test case hearing in which the legality of the government and the constitution were challenged. Necking in Pews RUTLAND, England (UP1) The Rev. Anthony Grade has threatened to cancel youth club meetings at St. Mary the Virgin church unlets teen-agers atop necking In the pews.

Saturday's JOURNAL FRENCH WITH TEARS An Ottawa civil servant found that tha stomach provides great incentive for learning French. He saved up his leave and $500 to attend summer school at Laval University. Sal-day Section Ottawa Profilei Interviews with Jean-nine Robertson, art boutique owner and artist; and Pinches Pleet, who has just returned from a teaching assignment In Sarawak. Ottawa Diary Ethel Chadwick describes the life and times at Blue Sea Lake in late sum- mer. 1920.

Saturday Section. Spotlight On new schools in Ottawa. Full page photostory. Distinctive Home Helen Turcotte visits the Manottck home of A. Y.

Jackson which is now being rented by Hubert Rogers, portrait Home Section. Garden Page Plantain lilies for shady area; pines for ornamental beauty; and revising the garden layout. Sharp One Year Freeze On Medicare a 1 LOOK WHO'S Finance Minister Sharp caught by the camera in a lighter moment amid last night's gloom over new sued higher taxes and cut-backs, restrictions, hold-downs, and cancellations of what he said would hava bean many de suable projects and programs." But, to judge) from tha mood of has moment, the news can't be all or can it? WHOPPING MAJORITY mmmmmmmmmmmmmmmammmmmmmmmmmmammmmmmmmamm It's Joey Greatest Victory' jT. JOHN'S, Nfld. (CP) -Elated by his "greatest victory since Premier -Joseph Smallwood emerged from Thursday's Newfoundland election with a whopping majority, a pile of work facing him and a stated determination to step down before the next election, 1 The 15-year-old premier, who Gemini Flight Postponed CAPE "KENNEDY (UPI) Technicians made a repair today to a pinhole leak In trie Titan booster rocket and said if it passed tests the Gemini 11 mission would blast off Saturday morning.

CAPE KENNEDY (AP) A pinhole tealTln the fuel system of the Titan II booster rocket today forced a postponement of the flight of Gemini 11. The leak was discovered just three hours before astronauts Charles Conrad and Richard Gordon were to start preparations for a three day mission. Out-of-Town Students Find Accommodations through Journal Want Ads BRIGHT FUtNlSHfO WOOM, COOK, ino. refrigerator, prlvlltoM. 1 bathrooms.

23. With so many young students from out-of-town looking for suitable homes away from-home, Mrs. was flooded' with rails after using this little Journal Want Ad. Why not let Journal Want Ads work for you to share the load of your Back-to-school expenses? Proposes IrRgheir Taxes LAUGHING quit as bad as it i led Newfoundland into Confederation in IM9 and has been ha premier ever since, saw his Liberals reduce the opposition to Just three men smallest group in any Canadian legislature. Victims of the Liberal onslaught included Progressive Conservative Leader Dr.

Noel Murphy and New Democratic Party Leader Calvin Normore. It was the sixth election victory in a row for the never-beaten Newfoundland Liberals and the fiery leader in the bow tie who says he'll vacate the leadership and "get off Newfoundland's -back" before the next election, probably four years. Final standings: 19M 1961 Lib. 29 24 PCs IT Independents 1 Total 42 42 Liberal gains from the Conservatives totalled five seats because the lone independent elected in 1962 later switched to the Conservatives and was defeated by a Liberal Thursday. Tun Page 4-JOErS Party "Vote Comparison CP Newfoundland party vote from 1.318 of UM polls (94 per cent) compared with vote by parties in last two elections (percentages bracketed): 1M 1982 Lib M.074 (82 T2.782 S8) PC 49.019 (24) 48,018 (27) NDP 2.787 (2V -4) Others 2.S22 (2) 1.43 totals 142.782 124.138 Copyright.

1968. by Thr- Canadian PfeTs. LEAVE PEKING HONG KONG (Reuters) Young Red guards have he-gun to leave Peking for tha countryside to help with the harvest, the New China News Agency reported today. Spells Out Wage Increase Guidelines By RICHARD JACKSON sf Tha Journal Finance Minister Sharp is prescribing new or higher taxes-as only one of several bitter medicines for the fever of inflation. "Cold comfort," he concedes in these days of soaring prices, "but higher taxes can help stop prices going up mora and more." OCTOBER BUDGET He'll be doing his financial doctoring in an October baby budget.

(It will be his second tax increase this the income Balancing Act By Pearson Steers Middle Course in Speech On Rhodesia LONDON (CPKPrlme Minister Pearson, fat diplomatic balancing act but wet white and African, demandi. today urged Britain to provide firmer guarantees of tha right of Rhodesia's Negro a 1 1 before grassttat that eaoatry legal Is raaortad to hntwaiMd" against tha as tore to bring down tha Ian Smith regime and called lor Increased pressures to snake existing voluntary sanctions against Rhodesia work. He suggested that if existing sanctions fail. consideration should be given to the feasibility of mandatory economic sanctions under Chapter Seven of the United Nations Charter. These would be binding on all UN members and would bring UN penalties if any member failed to abide by them.

Tan to Page 4BALANCING Jobless Pay For Farmers By The Extension of unemployment insurance to farmers and horticulture workers effective next April 1 was announced today by Labor Minister Nicholson. Regulations 'providing full details of the'program as it applies) to farm workers are to be issued "within the coming months." The brief announcement, long-sought by farm organizations and made in the form cf a press release, said the extension should make farm employment more attractive and help overcome farmers' difficulties in obtaining capable farm help. May Invade Viet Nam, China Hints LONDON (UPI) Communist China has hinted it will move into North Viet Nam to prevent a "sellout to imperialism" If Hanoi makes any direct or indirect peace moves, authoritative diplomatic sources disclosed today. Fdvreau Improved (By The CP) Guy Favreau. president of the privy council, spent a comfortable night and is in satisfactory condition in an Ottawa hospital, a spokesman for the hospital said Refuses More Tax Revenue To Provinces tax having gone up an average three per cent just a month go) With the pill of new or higher taxation, he is applying these other coolants to the hot-browed economy: 1.

A voluntary be lacks the power ta control either prices or wages guideline at four to five per cent for pay increases. 2. Delay la medicare for at least a year. i 1. Deferment of tha long-promised university scholarship pregram.

4. CaaceOatiea of the beans incentive far winter aoeao-building. I. Restriction ef increase in federal grants for research. 6.

Abaotdeameat of federal support for provincial forestry programs. 7. Clamp dawn any provincial demands for larger eats from the federal tax pie. 8. Held back on federal capital expenditures en public works and "ether desirable programs." I.

Curtailment of defence All these measures are prescribed 'not only as a treatment for inflation but to cover the Robarts Welcomes Had Doubts On Date Set For Medicare TORONTO (CP) Premier Robarts said Thursday night he welcomed the federal government's decision to postpone its medical care plan for a year. In aa interview, the premier said he had always had grave doubts that the program could be put into operation by the original July 1, 1987 federal deadline. "It is my feeling that we can use the additional year to hammer out some of the difficulties that we see in the plan and that other provinces see," be said. Dr. lCJThomson, presi.

dent of the Canadian Medical Association, said year's postponement is a "reasonable, useful and progressive step." Turn to Page 4 ROBARTS Keeping Regiment flames By The Canadian Press Defence Minister HeDyer said today the identities of army regiments will be retained at the "unit level" in the planned unified defence force. He was replying in the Commons to Gordon Churchill, former Conservative defence minister, who asked that the identities of famous regiments be; maintained. Mr. Churchill said Gen. Jean V.

Allard. chief of defence has given assurances that the identity of Quebec's Royal 22nd Regiment Van Doos will be retained. He was In full agreement with this but wanted assurances that the identities of other famous regiments such as the Princess Patricia's Canadian Light Infantry would be kept. Mr. Hellyer said ft "has already been made clear that identity will be retained at the unit level.

He declined an -opportunity, however, to aay whether soldiers, tailors end airmen will be clad in distinctive uniforms in future. Mr. Churchill asked whether the three services will continue to wear uniforms of a style and color distinguishing them as afr, land or sea Mr. Hellyer said the question Isn't urgent. Scraps Some Federal Spending Programs cost of three big bills the gov-, emment must pay: 1.

Pay increases Mr. Sharp describes them far 4to Arai-ed Fereas whose rates haven't changed In two years and whose salary structure hasn't been overhauled since 1948. Currently the defence payroll runs aa annual 2. Increases in veterans' pensions which currently cost an annual 8288,801.000. I.

Further Increases la Civil Service salaries. They are Medicare Shelved MacEachen Quittingl Bitterly disappointed with the government's shelving of medicare for at least a year. Health Minister MacEachen isn't saying he won't resign. But he isn't saying he will, either. "Sorry, nothing to sayLhe stone-walled questioners who asked him about reports that he would turn in his Cabinet membership.

They kept on trying, but Mr. MacEachen varied his noncommittal answers to saying only: "No comment this Those close to the health minister aay that if he does go it won't be until Prime Minister Pearson returns from the Commonwealth London Conference after Sept. 17. And by that time, they anticipate, enough presure will have been put on Mr. MacEachen in various ways to persuade him to remain and make the best of it.

He would stick with the Job, they believe, because much still remains to be done about medicare. The provinces are bucking it. It still has to go through Parliament Johnson Moves To Dampen Boom WASHINGTON (CP) Ths U.S. Congress appeared ready to go along with President Johnson's proposals to dampen the U.S. economic boom by temporarily suspending special tax incentives for expansion by industry.

But business leaders were opposed to it. Chamber of Cbnv merce, composed of American business leaders, already is on record against such a tax move. It prepared to renew its opposition before Congress when hearings on the presidential plan open Monday before the House of Representatives ways and means committee. In a special message to Congress Thursday, the president called for the suspension for 16 months of the seven per cent tax credit allowed business on equipment and the temporary ban of special tax write-offs on construction of commercial buildings. The suspension would be retroactive to Sept.

1. Both lax benefits would go back into effect automatically Jan. 1, ---Congress, which generally, has been pressing Johnson to take fiscal action to lessen inflationary pressures, is expected to approve the president's proposals without change. With the November general election ahead. Congressmen have become increasingly concerned over rising prices and interest rates.

Most of them a necessary, says Mr. Sharp, so that the public aervica may retain the cream ef its staff. --4r Increases hi the old age pension to a monthly $105 for those qualifying under a modified means test based on income tax returns. All this, the finance minister laid out before a shocked and indignant Opposition in a speech yesterday in the Commons, delivered under the beading of "The Need to Prevent Inflation." Turn to Page 4 SHARP rf ill "i 7 MacEACHEN And while Finance Minister Sharp says medicare mutt wait, only the date of operation has been changed to July' 1. 1968 instead of "67 and it's still full speed ahead with the legislation In the Commons today Mr.

MacEachen remained silent and then left' the Chamber when NDP Whip Stanley Knowles asked him where he stood on the medicare issue. believe that new but limited tax curbs on business are a far more favorable way of trimming the economy's expansion than by general tax increase for corporations and individuals. The President is expected to win support from Congressmen traditionally critical of high government spending and high interest, rates because he promised trj hold down the federal budget, now running past the $100,000,000,000 level. His program left little doubt that he has abandoned the idea of any request at this time for a general tax increase, but he left the door open for such steps at a later date. should additional fiscal measures be required to preserve price stability and maintain solid fiscal policies, I will recommend them," he said.

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