AG. B Budget reaction slash By GAILLEM ‘THE CANADIAN PRESS A massive liquidation of oil and gas interests by in- vestors across North Amer- ica wiped billions of dollars off the stated value of com- panies listed on .Canadiari stock markets this week. The frenzied reaction‘to the federal government's new budget and national en- ergy policy slashed stock prices to bargain ‘levels and triggered unprecedented By aE CANADIAN Canaatae ‘terest rates, which have fluctuated with- out direction in recent, months, took a sharp upward turn Friday and appear to be, heading higher. Major chartered banks said their prime lending rate, charged to top corporate will rise effecti CASTLEGAR NEWS, November 2, 1980 losses in several stock ex: change indices. Bargain-hunting lifted prices as the week drew to a close but some analysts say the budget hascapped the . market's advance for some time to come. : Toronto's 800-stock in- dex weathered its second- worst fall Thursday on rec- ords dating back to 1976 — a decline of 88.36 points or 3.84 per cent. It finished the week down 79.02 points — its rate in. recent:qweeks. That fuels inflation. Bank of Catiada has‘ not been, consistent’ from week.to week:i in influencing the mon- ey" “dupply; Pattison‘said. * 4: «There: is either too A rhich money on too. little and td-g6 from orie'extremeé'to the other, week, to.-week, is making” lite‘diffia cul sin t Monday to 18,25 per cent, the Shighest since late July, from. 12.75 per cent, The moves follwed a ‘jump in the Bank of Canada’s lending rate for infrequent loans to chartered banks to. 12.16 per cent from 11.76 per, cent. The new rate is the {highest in six months, Analysts said the central bank had to permit its rate to crease in short-term interest rates in the United States this week and a decline in the, value of the dollar caused by.” , Finance Minister Allan Mac-:- !Bachen’s budget Tuesday. : John Pattison, vice-pres- fident finance with the Can- fadian Imperial Bank of Com- merce, said in an interview: : “As long as the Bank of Can- ; ada is preoccupied with the i dollar, Canadian interest ‘rates will be swung around iby US. rates." TOO MUCH MONEY Pattison said it appears -upward pressure on U. rates will be maintained be- cause the Federal Reserve Board, which controls the U.S. banking system, has to dampen demand for loans because the money supply has grown at an excessive rise because of a sharp in-.. sai Cai mos Fates, there ‘was hestitation in following its upward moye, partly because banks" were ee a ao icer for the Bank a) fa, Scotia, said, “We hive te ook at demand for "igh ey POEs funds," ae me softness..in loan demand and tek is fair to say “World! s Fair getting set. By JOE DARY. KNOXVILLE, TENN. (CP) — The 1982 World's Fa is abuilding. Although it will be smal- ler in scale, than Montreal's ’ Expo ' the Vite eastern Tennessee city has won approval from the Inter- national Exposition in Paris, and it is expected to attract 1 million visitors during its - Hecaanth run. ‘Theme of the fair will be in: these PUBLISHER The Castlegar News is published by Casile News Lid. 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NOTICE OF COPYRIGHT Full, complete and sole ‘copyright in any printed mat- ter produced by Castle News Ltd. is jed in and belongs laws Ltd.; provided, | however, that copyright in : mar PART AND THAT PART of ony advertisement r oaeoread from repro proofs, 3 engravings, etc., provided by the advertiser shall remain in arid belong to the advertiser, CASTLEGAR NEWS Established Aug. 7, 1947 Twice Weekly May 4, 1980 Incorporating th Mid-Week Mirror published from Sept. 12, 1978 foAug. 27, 1980 -V, (Les) BELL ublisher Aug, 7, 1947 * toFeb. 15, 1973 BURT CAMPBELL i caeiehat IGHES, Mengaing Hor, lant MESSENGER, Advertiting Manager; “Lt =| on : SITSIN, Circulati peed days — — energy. S.H. (Bo), Roberts Jr., president of the Knoxville International Energy Exposi- tion, the organizing body, says $400 million is expected to be generated by the fair. In addition, the ‘state of Tennessee is spending $224. million on highway improve- ments in the area. “Energy was not con- sidered to be a major issue until the 1973 oil crisis when it suddenly began to be taken more seriously,” Roberts says. + “Because energy affects” us all, it was decided to focus attention on it and have a central theme — Energy Turns the World. This in- eludes fossil fuels, hydro- electricity, nuclear energy, renewable energy as well as human energy.” DECIDED IN 1975 sixth-largest- weekly “loss since 1971 — or.3.4 per cent to 2240.15, The biggest daily tumble for the composite index was 95.65 points last March 27 with the bursting of what has since become known as the Hunt silver bubble. “ The composite index at Montreal dropped 19.18 points or 6.19 per cent to close the week at 360.18, HURT U.S. MARKETS The dramatic sell-off also Interest rates up sharply there was some reluctance fo act just on the basis of the Bank of Canada rate alone.” In other de- hit’ Canadian oll. and gas of petroleum resources and Issues listed on U.S. markets... promised that Petro-Canada, :The market value index on.. the Crown oll company, will the American’ Stock. Ex- acquire the Canadian oper- change suffered its worst ations of one or more multi- drop sihce March 27 with a national oi! companies in the decline Thursday of 12.96 next few years. points or 8.76 per cent to The sell-off accelerated 331.45. after a news report that the Stockbrokers and anal- federal it would es stock prices: ECONOMY IS WEAK As well, he said, the budget is inflationary "and clearly spells out that ithe * government is expecting. a very weak economy for,,he next several years,” vatin Jones said he belleves the market's reaction. ,is:.a ysts on both sides of the take up 26 per cent of pet- border fired off a: flurry of. roleum: leases held by com- sell recommendations after panies in the Arctic and other ‘learning .that the budget frontier arcas. gives Ottawa s bigger share’ In the two days after the i budget was brought down, the oil and gas index on. the TSE dropped 16.25 per cent, Hotes into a paper. loss of $2.98 billion for companies * listed in that category. The group closed the week down oe S01 | industry, ‘analysts a whopping 545.79 points or said Petrofina Canada Ltd, is 11-11, per cent to 4367.69. the prime -candidate. for: a velopments this week: ‘ — Bombardier Ltd. of Montreal announced a $40- million modernization pro- gram of its three manufac- turing divisions, ‘including ‘a $7.5-million grant from the federal government. — Dome Petroleum Ltd. of Calgary said it reached an agreement in principle with a consortium of five Japanese companies to supply liquefied natural gas to Japan over a 20-year period beginning in 1985. : : — Economist John Ken- neth Galbraith of Harvard University. told the Inter- t by Petro- Canadajithe federal govern- ment’s oil company which has been told to, buy the Can. adian operations of one or more foreign-owned oil com- panies within three years, A spokesman for Petrofina said the company is not for sale. — The Quebec govern. ment. announced it has sold its 10.3-per-cent interest in the regional airline. Nordair to the Societe ‘d'Investisse- ment Desjardins, investment arm of Quebec's D sjardii Alberta Premier Peter Lougheed reacted to the budget by announcing plans for the oil-rich province to cut back oil production by 15 per cent over the next nine months — a total of 180, 000 barrels a’ day. WILLING TO TALK But his threat to re- taliate was followed by con- ciliatory mumblings in, the House pf Commons on Friday when Prime Minister Tru- deau said his government is willing to continue domestic credit union and co-operative movement. _-— British Columbia Re- sources Investment Corp.- oil-pricing with, Albetta, Analysts — and oil com- panies themselves — still are trying to figure out in detail national Air T 't Asso- that of the. bud- ciation in Montreal that soci- alism is being created by giant corporations such as Chrysler Corp. and Massey- Ferguson Ltd. who go to governments to be bailed out of trouble. The symposiums will bring together prominent energy experts from around the world. Scientists, gov- ernment leaders, heads of in- dustry and academicians will te‘ ii thia'S geek ‘to identify “energy. is-” sues, evaluate international energy policies and .explore - ways and means of creating greater energy productivity. To date, Italy, France, West Germany and Britain David Helliwell has been re- placed by Bruce Howe, for- merly president and chief executive officer of MacMil- lan Bloedel Ltd. of Van- couver. Helliwell becomes chairman of the board. ue especially on cash flows and revenues needed to fi- nance exploration and. de- velopment. Another problem bro- kers face is trying to figure out what companies might be targets for takeovers ‘by Petro-Canada. Since Ottawa is com- mitted to paying a fair mar- ket price for companies Pet- ro-Canada chases, their house that will become shops shares could be expected to anda restaurant, and several be in demand by investors, houses that will be used as and so their shares would rest stops and shops. resist pressures driving But the fair's architee- other stock prices down. ture won't be as ‘spectacular Roland Jones, an analyst as that in Montreal dr‘Osaka, with Pitfield Matkay Ross Japan, Roberts says. . | Ltd. of Toronto, said the “montreal was a Class I market was fearful that the fair and we're not,” he says. budget would'cause Western “It won't make much differ- Canada to raise the spectre of ence to the public in terms of Western separatism like attractions and displays. But never before. have par as ‘has the nine-member European Common Markets, China has signed a_memor- andum of intent and nego- tiations are oentinuing with several other countries, in- eluding Canada. CONSTRUCTION STARTED Work on the 70-acre site in the city's downtown area gan last year with the . demolition of several run- down structures. Actual con- struction began in May on the first of seven interna- Honey ‘Pavilions. unlike (which was That possibility means Jarger) or Osaka, where each foreign investors “really just participating nation built its witl do anything to get their own pavilion and had its dis- money out,” he said. tinctive architecture, we will Compounding the bud- build all onal pav- get’s di on ilions.” stock prices is a weak U.S. ‘ket hurt by th NO CONCESSIONS market hurt by the threat of MONTREAL (CP) — rising short-term’ interest: Quebec Liberal leader Claude that will ‘create some good buying opportunities. , nod But he’ said he recom: mends inveatment in the re- source sector with caution-at this time. “The. oil and gas industry cannot at all like whats happening,” Jones said, be». cause it sees its counterparts in the rest ‘of the world making much bigger bucks: on oil exploration and -de- ‘velopment. . The industry has few in- centives to explore for and develop oil Teserves in Can- ada. becduse “relatively speaking they're giving it away," he said.‘ ,Ted ‘Ohashi, research director at Pemberton ecur- *_ ities Ltd. of Vancouver, said much of the sell-off in the oil and gas sector. was justified, « CASH FLOW REDUCED , “Our estimate is that the budget changes will reduce 1981 cash flow to the in- dustry by 15 to 20 | per cent.” - He said the major risk to the market is not the adjust- ment to tax changes —. in- yestors are accustomed. to that — but the energy power play between Ottawa and the Western provinces... “Premier Lougheed’s response to the budget’ was firm but not as extreme as some people. had expected, “From here on I think we will see some give and take on negotiations, and as that happens the market will rise and fall. But there won't be a firm uptrend until the political problems are out of the way.” Activity was hectic on the three major Canadian markets this week, Ab ‘Toronto, 42,76 million shares. 1 Valued :ati, $775.65 ralllion were traded, up,from* 87.49: million shares ,worth $601.13 ‘million: the. previous weok. 5 Cian ta woo Volume at Montreal was 4.98 million shares and value was, $95.6, million, compared with 5.4 million shares valued at;, $74.82 million the week ye fore.|, Bring your own containers tiAt Vanpouver, 42.88 mil- Flower Power lion. shares worth $118.61 . Aplaries million. changed hands, Vol- Grand Forks ume last week was 48.29 million shares and value was $183.1 ‘million, : inal Orders Amber Liguid Tb. $1.25 = Attention Men & Boys! For All Seasons is 7 ‘ Bonnett's eet Wier ‘365-6761 Remember 10% OFF for ie lack or truck logging contractors id for our southend operation. tion please phone Harry Zar- Chikoff, Ai Woods Supervisor, 226-7584 periee Gee 00 p.m. SLOCAN FOREST PRODUCTS LTD. rates, Jones said. Ryan says he will not make ‘ major concessions to the ‘Your Carpet Parti Quebecois or give the government special support in a bid to stall Prime * Minister Trudeau's plan to Headquarters . . .|- Carpets by Ivan Oglow 365-7771 patriate the he buildi, most of thea temporary, will be con- structed of steel. Some build- ings may eventually become warehouses after the fair. Clearing has also begun for the U.S. pavilion that will become an energy research centre. after the fair. As well, restoration of a. WICK of every ee PLANTERS, LAMPSHAD! BASKET CHAIRS AND. MORE. E.P. SALES Waneta Road, Trail few structures on the site has 200 yd. past Schneider's 12 Mayor’ Randall Tyree begun, including a railway says the decision to use the station that will house an art- energy theme was made in gallery, an old factory-ware- 1975. “It was a gamblé in that little was known about en- ergy,” Tyree says. “Since then it has become an inter- national problem.” In conjunction with the’ fair, two international energy symposiums will be held to address world-wide energy subjects — one scheduled for next June and the other for May, 1982, shortly after the fair opens, - New Managements November Special Perms «Colors 20° 0 we 611 Columbia 365-6700 Mon.-Sat.: 10g.m. to 8 p.m. Sunday: 12 noon te § p.m, CITY OF CASTLEGAR *IMPORTANT NOTICE* RE: BUILDING PERMITS The City of Castlegar wishes to remind the general public that: No person shall start. an buildi: i o : . fepairs to a building, install a pool or fence, without fine btaining a building permit from the City of Castlegar. No person shall use or occupy any building, or change the use of a . building without first ebtalning an occupancy permit Tom the City of . ‘astlegar. No person shall pave or asphalt any driveway or porkisia lot without : receiving a building permit from the City of Castlegar, oe Failure to obtain permits can result in fines up to $2,000.00, and may require removal of any construction which contravenes any City By-.- aws, G. Braman, ‘Bullding inspector, City of Castlegar, Phone No.: 365-7227 : Office Hours: 9:00 a.m. to 10:00 a.m. . 3:00 p.m. to 5:00 p.m. and income criteria; i . City of Castlegar™ -RRAP PROGRAM . FOR OUR CITY Senior Citizens Centre * RESIDENTIAL REHABILITATION ASSISTANCE PROGRAM Under the Residential Rehabilitation Assistance Program, federal funds are from Canada Mortgage and Housing Corporation to assist in the improvement and repair of substandard dwellings. ELIGIBLE FOR ASSISTANCE —Home owners in selected muntctpalities who meet. property conditions .has now provided a 210-11th Avenue Castlegar, B.C.. Phone 365-2410 INFORMATION ins Ne profit corp who agree to rent controls; and, "TYPES OF REPAIRS: ‘For a dwelling to be eli these | five basic areas at least one of the following five basic areas: structural soundness, fire safety, electrical eos plumbing or heating. Priority is given to repairs in 1 and P ible for RRAP it must be sut d Jin t a variety, of other imp are and other: ‘measures to improve thermal effictency. In hee rotit corp program for conversion of their properties. The nature and quality of repair work should ensure a further useful life of the property of about 15 years. ASSISTANCE TO HOME OWNERS Assistance is in the form of a loan from CMHC of which part of the may obtain funds under this may be f. iy . The but inno case exceeding she ac actual cost of repairs. loan is $10,000 per dwelling unit eligible - forgiveness decreases. Loans under this prog! Sorcently,. 6 wit for the maximum forgiveness of $3,750. As.income increases, loan . their loan at the rate of $750 for each year they continue to’ own and occupy - the dwelling. Loans.to home owners with anrival edlusted family incomes of $16, 500 or more are repayable in full, ; : ‘ MAINTENANCE OF PROPERTY x J family of up to $9,000 are. Home owners “earn” the forgiveable portion of 1.on the adopting and enforcing appropriate to ensure that the property will not fall back into Sietonae ADMINISTRATION OF THE PROGRAM Administration of the program fs.at the local level and is undertaken in are most NAME:__ y such administration-‘and pays them a fee for administering the Program, For further informatiori and an iriterview regarding this program, | Please fill in the following information and return to above ad CMHC assists municipalities in setting up dress. . ADDRESS: TELEPHONE — 365-2410 All contractors that RRAP CO-ORDINATOR — Alex Lutz LOCATION — sentor Citizens Centre 210-11th Avenue OFFICE HOURS — — Monday, Wednesday, Felday 9:00 a.m. to 12 Ni tural remodelling, volectiicel, plumbing, heating roofing and sidi contact A. Lutz, City Co-ordinator. t :] iding please 8 din performing this kind of work — struc- p we 4 By ALLAN oie MONTREAL’ (cP) — Queen Victoria's hoary crown and shaw] were not in ‘the sculptor’s, ‘original- design. They’ wefe.. an’ after- thought provided by Mr. and Mrs, Pigeon, as: they con- templated: the lunch-baggers in Victopia Square who would undoubtedly, provide théir next meal.* .. To tourists and lunch- time crowds, city: ,8quares wooldn’t be the same without, the pigeons; who strut and fret their way' over the ‘cob- Dlestones.” . But. apart from their contribution ‘to ornate archi- ’ By CARL MOLLING _ WASHINGTON, (CP) — * On the day .that war broke -out between Iran and: Iraq, endangering half the world's oil ‘supply; one of the distant :victims was Somalis,'a strat- ‘egically. placed .sountsy.. al. war, + great-power rivaley an “thé ” ambitious - ‘of. its “own - leaders. *- ° ii It is not only that'on ‘the + same day,’Sept. 22, Somalia * reported air-raids on three | towns from neighboring Ethi- . opia — a report denied. by. Ethiopia’ and ‘all but -,un- 2; noticed elsewhere, + But this fighting be. } tween Iran and Traq, 2,000 the sizé of. Alberta, two-: * thirds of its’ ‘people -camel-no- tecture, which {s expensive to remove,! sdine ‘specialists are ‘dlarnied bbulit’ pigeonb’ potential bfbev! transit ‘“Prafalgatos quare wouldn't be such a: tourist ‘attraction’ if ‘peopl knew, about the disedses they Ue exposed” to," "Hiatd’. Georg Laidlaw, a-pest-cotitrol’ spbe= ialist tfor'Agriciittiine ‘Canada; “Pigeons have’ thé wage ability or carrying tbr ) diseasés, At "Book ‘eompited “lige; igeons can b Sparrows, paints a.° English greytpicture ‘of diseage’ as- sociated with these. birds, Mhere\are bacterial diseases , diseases; utc voillim @hT6 + gddh tas. food poisoning and tuberculosis, carried. in pig- eon ‘droppin; law, fungal dis- . “nt ee bulla & roost in the airconditioning sys- tem, on'the roof of a building you can see what, the. raml- fications can be,” sald ‘Laid- “All this: in’ diadition to “staggering ic losses” eases such as andiViral diseases such’ as tapdworms and encephalitis, JNGAN KELL POULTRY ‘2Phey can, kill livestock, poultry and even humans, said’ ‘Weber. ” +91: Decayed ‘feces. ‘from the birds): when ” disturbed by ae by Walle: work for ex- Js: Weber “of ‘Indiandpoli Ind., called Health From Pigeons, Starlings and has beén swollen by as many” as 1.6: million people in two years — officially 850,000 in refugee camps, the rest of the migrants mingled with kin. These are othnie Somalis , who have ' fled ‘ the neigh: boring Ogaden Deve Desert, claim- ed. still mialia although gnized by"‘most’ gévérn: ments as part of Ethiopia.and controlled | ‘by Ethiopian’ ang ccna ps since Somalj driven ‘Sac lars wer ariven Jina _ full seale . en pouring into the coun- ; an rate ‘aniple, release - spores into thelair-which contain agents fed infectious diseases. a all Somalian troops get out of | Ethiopia. - But the war at the head of the Persian Gulf, which has already prompted rein- forcement of U.S. seaborne forces in the area and ‘as- sistance to Saudi Arabia, in- ‘éredses the pressure to'de-. veldp! “U:8. land Supply bases © in coe such as Berbera.’ ere is also growing ressure to provide more aid fe “expertise to help the Somali’ refugees, who have te of den pier aay ‘ways mR Bthiopias ? mads and’ seems : an unlike! + fous snag victim of war and in. chaotic attempts to transport food’ to Somali war refugees — - uncounted ¢ hundreds’: of: thousands of . peaple described by a U.S. * state department official as 2 “the largést refugee popu- anywhere in the'' Further, the fighting in ‘ the vital Persian Gulf may’ well speed U.S, plans to es- tablish a military supply base . in Somalia; théreby placing gthe East African country in =the path of great-power con?” «petition again and raising the: - risk of more war with Soviet- ‘supplied Ethiopia and its Cuban-backed army. Somalia - “was reported discovery ‘of ‘uranium. © This tangle of, pressures - - on the desert country is be- - ginning: ‘to generate the an- - - \xious attention “of diplomats. and politicians, ‘including.’a ‘special U.S. -congressional report last week. and -queé-, ‘tions in the Canadian House, of Commons, UNLIKELY VICTIM Somalis; “barren land the size of Alberta, twothirds of its people ‘camel-nomads and shepherds, seems an un- , likely * victim’ of war: and. ‘world power struggles. * Almost 20 years: ago, Canadian novelist Margaret Laurence chronicled -tHe . country and its vocal poetry in two books, A Tree for ‘Povetry and. The Prophet's ~. Camel Bell. She.recorded im- pressions while a¢company- ~“ing her engineer husband in” construction: of watering places-for nomads along the’ northwest frontier, lately the scene of border fighting with 7 ‘Ethiopia. “The land was incredibly Lempty; the sky open from one. ‘side of the horizon to the. . other,” she wrote. ".-. . It - seemed to be no place for any living thing.” But’ today, some iesti- mates say, the normal” pop-