SS &4 Castlégar News October 18, 1989 Humor beneficial REGINA (CP) — Humor in the workplace will employee morale and can account for increased productivit?, says a psychologist from Columbus, Ohio. Humor can be used 10 make people More productive, healthier and to enhance their creativitiy, Steve Wilson told delegates. at a human resource development Work is serious ‘business, he said; but people have to ‘lighten up.”” Wilson laughter emotional tension, which is part of Stress, relaxes the muscles and imitates workout through car stimulation. improve conference on said relieves an aerobic diovascular Personal FEMALE companionship in return tor room and board, Reply: Box 3007K 7.8 Castlegar, B.C. VIN 3H4 2 Announcements MR. ond MRS. ERHARTKOCH of Castlegar are pleased to announce the engagement of their daughter Kellie Ann Tyrrell to James Svetlikov son of Virginia Svetlikova of Vancouver 83 "Card of Thanks THE TRAIL AND DISTRICT BRANCH of the Canadian Diabetes Association would like to thank the following businesses for their kind and generous donations to ‘our area symposium held on September 29-30: Aiko, Carl's Drugs, Fred |Lorenzi Hall’s Stationary and Gifts, Kootenay Savings Credit Union, Pacific! Valley Beverages, Pharmasave-Castlegar, Red Mtn. Ski Club, Shoppers Orug Mart SuperValu, Terra Nova 84 MR. and MRS. E. Newman thank all of their friends tor making their Golden Anniversary @ joyous event 84 A SPECIAL thank you to the folks of Glade and Thrums and to the Tarrys Fire Hall. Crew for their help, support and generosity in our time of need. Bruce. Diane, Danielle and Lucas. 3/83 in Memoriam CANADIAN CANCER SOCIETY. In memoriam donations. Information Box 3292, Castlegar. 365-5167 104/17 Money launderingkey part of drug trade egal drug sales produce huge amounts of cash. Turning that cash into funds unconnected with crime is the business “The major banks are doing their utmost,’’ says Ken Johnston, the Royal Bank of Canada’s head of corporate “Your Charity of Choice’’ Your caring gifts in Honour or in Memoriam are a beautiful and thoughtful reminder fs B.C. AND YUKON HEART FOUNDATION CANADIAN DIABETES ASSOCIATION In Memoriam Donations, Box 1228. Rossland, B.C. VOG 10. Legals LOST DUPLICATE CERTIFICATE OF TITLE Land Title Act RE: Lot 61, District Lot Kootenay District, Plan 14! 11974 WHEREAS proof of loss of Duplicate Certifi€ate of Title No. J20371 to the above mentioned lands issued in the name of Irene Caroline Masson has been filed in this office Notice is hereby given that t shall at the expiration of fourteen days from the date of first publication hereof issue a Provisional Certificate of Title in lieu of the said Duplicate unless in the meantime valid objection be made to me in writing Dated at the Nelson, B.C A.D. 1989 JAN C.B. SMITH REGISTRAR Lond Title Office this 6th day of October Dote of first publication: October 11 1989. 1989 MODEL CLEARANCE ONLY 16 LEFT! 2 RELIANTS 1 ARIES 2 HORIZONS 1 SHADOW 2 DAKOTA'S 1 DYNASTY 1 VOYAGER SE of money launderers. Many authorities believe one way to beat the drug barons isto stop the laundering. By MARIO POSSAMAI The Canadian Press “Money has no color and no anonymous Canadian banker Dirty money courses through the veins. of the drug smell."" An trade. It begins as a trickle: Every line of white, powdery cocaine, every gram of pungent marijuana or packet of heroin is bought with cash. The rivulet swells, fed by countless drug deals big and small, until it’s a worldwide torrent worth an estimated $300 billion a year. It is filtered by money laundering, the shadowy business of criminal profits by disguising their origins “There is a large black market in money,”’ says Jack concealing Blum, the outspoken former special counsel to a U.S Senate subcommittee on narcotics “The drug: business simply can’t function without the money-laundering business."" Can the flow of dirty money be plugged? Yes, says Blum, Seizing drugs hasn't seriously dented one of the world’s most profitable businesses. Neither has nabbing pushers and smugglers — which Blum says is *‘like putting General Motors out of business by arresting car dealers."* Dirty money is “the point of stresses ina telephone interview vulnerability,”’ he Others aren't so sure. ONLY SYMPTOM? “If you make something unlawful, there'll be someone who will get around that law,” says Rod Stamler, the genial former assistant commissioner of the RCMP The British magazine the Economist goes further, arguing that the flows of drug profits are a symptom, not the disease itself “The business is simply too vast to be isolated. It has become part of the financial system.’* One thing is clear. The drug world’s financiers are coming under increasing scrutiny The leaders of the seven largest industrial powers, in cluding Prime Minister Brian Mulroney, agreed at the Paris summit in July to step up efforts to track drug profits. There are tough new laws in Canada and the United States against money laundering Banks worldwide — especially Canadian ones — are making a determined effort to fend off the drug trade's money men security What are they up against? SICALLY SIMPLE The principles of money laundering are simple, the schemes often complex. In come ruins of money from drug deals — cram- med into suitcasesseardboard boxes or paper bags. Out go clean, fresh, impersonal money orders, certified cheques and electronic money transfers, All are in an easy-to-handle form; none sullied by narcotics. ‘ The drug profits slip unnoticed into the world fin cial system. There is a weak link — that cold, hard cash. Traffickers are particularly fond of it. Cash is hard to trace. More importantly, cash is anonymous. A dollar spent on cocaine looks just like a dollar spent on a loaf of bread But cash is also bulky, awkward to store and tran- sport, Want to sell $3 million worth of cocaine? Be prepared to lug twice your weight in $20 bills, the traf- ficker’s denomination of choice. “To handle large amounts of cash is expensive, dangerous, dirty and difficult,” says Blum Pablo Escobar, a Colombian drug Jord, learned this lesson the hard way. In 1987, he had so much trouble expor- ting $400 million in cash that it rotted in a basement hideout in California, says the U.S. Drug Enforcement Ad- ministration Exploiting this apparent chink in the drug trade’s ar- mor, however, is no easy matter Consider the American experience. Financial institutions in the United States are required to report all cash transactions of more than $10,000. Ot- tawa has twice studied the idea, but decided against man- datory rules because they are so cumbersome. So far, the record in the United States has been spotty, There have been a few successes. But authorities are inundated with more than seven million cash-transaction reports a year — a volume that is enormously difficult to Process. This has not gone unnoticed among money laun- derers. Police are said to have found instances of criminals filing the required reports and not arousing suspicions Still, the system can work, say proponents like Blum **Big bulges of cash show up.” Doubts remain. ‘In an electronic banking system, banks will always be used to launder money,”” says the Economist. ‘The only effective way to end that practice would be to ban all forms of cash."” Canada attracts cash Billions of dollars in drug profits are believed to flow through Canada each year. How much of this cash s laundered in Canada? Here’s what some of the experts say. By MARIO POSSAMAI The Canadian Press Meyer Lansky — the American Mafia’s craggy faced banker — had a king-size problem in the late 1940s. The mob was earning money faster than even Lan sky, the-diminutive—father-of-modern-money—taun- dering, could hide it Enter a Canadian solution Dirtycash, believed to total millions, was funnelled north of the 49th parallel. Some of helping to build some of Toronto’ first shopping malls The rest was entrusted to Canadian contacts — some are said to still operate — who spirited the funds to offshore tax havens Lansky’s heirs have had a soft spot for Canada ever since How much money is laundered through Canada? How pervasive is it? Rod Stamler, a former assistant commissioner of the RCMP, brushes a hand through greying hair. His smile tightens. His brow furrows. The easy manner changes. Canada is certainly not a haven like Panama, suggests Stamler, now a forensic accountant with the Toronto consulting firm Peat Marwick DISPUTE REPORT Portions of a recently leaked report — prepared in 1988 by Canadian and American authorities — suggested Canada was becoming awash with drug it was invested, money That’s not the case, say federal officials Indeed, the study is based on information that is no longer relevant, said Gilles Loiselle, the junior finance minister Michael Orndorff, who tracks dirty money for the U.S. Drug Enforcement Administration, echoes the sentiment “Canada is like any other country,’’ he says. NEW AND USED CAR DISTRIBUTION CENTRE ES 1989 HORIZON 1989 SHADOW TO FINANCE AT 100 OUR 1990 MODELS ARE IN AND WE'RE DEALING! TEST DRIVE & COMPARE. FOR ECONOMY CONSIDER PURCHASING we Se Seer 1989 RELIANT To have a lower monthly “There’S a certain amount of it that goes on. But I don’t look at Canada as the No. | money-laundering haven in the world.”” SUMS HUGE Nevertheless, the amount of drug profits flowing through Canada is staggering. Stamler’s estimate billions of dollars a year There's dirty money from the Canadian drug trade, worth an estimated $10 to $13 billion a year The largest case involved a huge drug ring in Toron- to that laundered as much as $100 million in profits — mostly through store-front currency exchanges before police cracked the ring in 1986. There’s cash earned in the burgeoning American ‘drug market. It’s slipped north into Canada and then whisked overseas, perhaps into an offshore financial haven in the Caribbean. The most blatant example? A member of a Mexican drug ring sauntered into a Vancouver bank in the mid-1980s lugging several bulging cardboard boxes. They were stuffed with $800,000 US in cash. Finally, there’s money from international crime groups. They consider Canada an attractive spot to in vest in legitimate businesses, says Stamler Why Canada? COUNTRY STABLE “We have a lot of attractive features,” says Insp. Bruce Bowie, the RCMP’ expert on money laundering. The Canadian currency is stable. So is the political climate. And it has an efficient banking system with branches in many Caribbean tax havens. “You can deposit money in Prince George and put it (electronically) into a Grand Cayman account,”’ says Stamler. Indeed, a number of Canadian banks in the Carib- bean were unwittingly used to launder drug funds in the late 1970s and early 80s. In one case, more than $11 million was deposited in the Bank of Nova Scotia Bahamian accounts of Carlos Lehder, a charter member of Colombia’s Medellin cocaine cartel Lehder — known as the Henry Ford of cocaine smuggling — used the money to set up a smuggling base ona Bahamian island. 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Serving Trail, Castlegar, ™ Nelson & Area 4 365-248: su October 18, 1989 * tlegar News ublic fears excess logging VANCOUVER (CP) — There are widespread fears that too many trees are being cut down in British Colum- bia, says a report prepared for the Forests Ministry. “Public comment reflects growing concern that calculation of the (cut) is consistently optimistic and is based prepared by Victoria consultant Bruce Fraser, It summarizes 2,500 pages of written and verbal presentations made at nine meetings earlier this year Forests Minister Dave Parker called the meetings to assess opinion on a Last year, a record of 90 million cubic metres of wood was cut “The apparent tendency to escalate the (cut) to increasingly higher levels . makes it difficult for government to respond to: other’ forest-land-based issues’ such as wildlife, tourism, the report resource recreation and proposal to more than double the 367-6234 Carpet & Upholstery Cleaners Castlegar Aquanauts License No. 7371 Saturday, Oct. 21 Castlegar Arena Complex $F OOO secipor. 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Tony Shebbeare, vice-president of Steel mill will pollute, environmentalists say By MICHAEL BERNARD VANCOUVER (CP) A mammoth steel mill on the coast of British Columbia is a dream that has been shared by both NDP and Social Credit governments The latest proposal, a $4-billion plan by the state: owned China Steel Corp. of Taiwan, is years away from construction, And British Columbia is competing with Australia and Indonesia to win the mill site But environmentalists concerned about the pollution linked to other steel mills have already issued a warning for British Columbians: check out the price tag of progress fir st The B.C. government is negotiating an agreement with China Steel to initiate a pre-feasibility study into the massive mill. No potential site has been chosen yet The proposed plant would employ 5,000 to 6,000 people and produce three million tonnes of steel annually — about 20 per cent of the Canadian total — for export “The pre-feasibility study is only the first step,”” said Elwood Veitch, B.C.’s Regional Economic Development Minister. “We have no intention of building something that isn’t environmentally safe.”” A second study would look at location, engineering and market considerations The mill, if similar to North American operations, would be a sprawling complex covering hundreds of hec- tares. It would run the gamut of steel-making, taking iron ore shipments, extracting steel in giant blast furnaces and producing a variety of products including rolled steel “Many of the existing mills in North America are not very efficient,"’ said Y.C. Chang, the company’s special projects adviser China Steel is a huge operation. It has.assets of $5.9 billion, annual sales of $2 billion and employs 9,700 people Chang said China Steel — helped by lower-cost B.C coking coal and free trade — could compete with existing North American producers in serving the North America and Far East markets The last mill proposal came from Nippon Kokan Kaisha of Japan. A recession, coupled with complaints by environmentalists and the NDP’s electoral defeat in 1975, killed the idea Now the idea has taken on new life. An environmental survey team, appointed by the province, has already toured five modern steel mills in South Korea, Japan, Taiwan and Ontario. After examining environmental standards in each locale, it concluded a similar mill could be environmentally safe, provided China Steel met stringent air and water pollution standards ‘A modern integrated steel plant here with integrated pollution control would be a minor polluter, possibly less than a pulp mill’ said Keith Brimacombe, the team’s leader But what is safe? It’s a problem that has perplexed regulators and environmentalists for years Steel mills — even modern ones that use the enclosed oxygen steel furnace instead of the older, highly polluting open hearth — still produce air and water pollution Brimacombe’s report notes that sulphur dioxide emissions from a three-million-tonne steel mill could ap- proach about 10,500 tonnes a year — about equal to total emissions from three kraft pulp mills. Steel mills also use vast quantitites of water for cooling and discharge effluents — thousands of litres a day for a mill of the size proposed One former environmental researcher suggests setting air and water pollution standards is futile LITTLE USE “1 don’t like cross-the-board standards chiselled in stone,”’ said John Marier, who retired four years ago from the National Research Council’s environmental secretariat in Ottawa. ‘It’s a numbers racket “If standards are set, then it simply becomes a licence topollute.”” There is an added danger that standards set in one area or country will be used in another, even though factors such as other nearby polluting ‘industries, topography and weather aren't fully considered, he said. Hamilton is just now drafting ptans to deal with water pollution that has turned the city’s harbor into what one environmentalist calls a toxic cesspool of contaminants, in cluding PCBs and heavy cadmium, chromium and lead and zinc “We don’t know what to do with the sediment in Hamilton harbor,” says Paul Muldoon, a vironmental lawyer and director of the environmental group Great Lakes United “If you dredge them you reactivate them. We don’t have a strategy to deal with the chemicals except to prevent their creation.” metals such as Toronto en- The Saga of Slocan Sam Se eal ax The Slocan Valley's friendliest full service hotel 23 clean, comtortable, spacious modern rooms Come and Celebrate THE SLOCAN INN'S GRAND RE-OPENING Fri., Sat., Sun. October 20, 21 and 22 Featuring Tommy and the T-Birds in Sam's Place Pub Oct. 20 & 21 Sam's Place Pub open Monday to Saturday, 11. a.m. to 1 p.m Restaurant open 6 a.m. 109 p.m. daily featuring: ribs, steak, pasta and seatood Sundays 11 10 midnite Grand Re-Opening Special! Come on up and help us celebrate our grand re-opening — October 20, 21 & 22 Only $3 2 Per Person Per Night Includes Dinner for 2 B.C.’s Council of Forest Industries, said he was not surprised to learn of the concerns. But the cut in B.C."s forests is not well understood by the layman, he said, Several tree lodgepole pine, and more recently.har dwood species like alder, were not always included in cut calculations Now -that they are, the cut’can be higher, Shebbeare said In general, industry and ministry foresters sayree farm licences guaran: tee that companies plan for the future. The renewable 25-year licences on Crown land ensure investment'in tree planting projects and wood processing plants that provide employment “Looking at the and economic benefits, the tree farm lic ence tenure creates economic security for .the company, which in provides security to our employees,” said John Murray, vice-president of species including social turn Socreds deny mutiny VICTORIA (CP) Credit backbenchers resigned from.caucus after the government lost its fifth straight byelection have denied their represented a mutiny against Premier Bill Vander Zalm “The conclusion the four of us in- dependently arrived at some people would like to believe, an orchestrated ~effort to premier,”’-they said in a prepared statement The resignations Oct. 3 of Graham Bruce, Dave Mercier, Doug Mowat and Duane Crandall, shortly after the Socreds lost the Caribo byelection, were seen as a serious blow to Vander Zalm’s leadership The four said they would sit as In dependent Socreds to generate soul searching over the party’s future “We believe there is a need to openly assess the results of the Cariboo byelection and other past events,"* the four said The backbenchers don't return tocaucus yet, Mercier said The four said they have been over whelmed by response to their action, which they believe has opened up a realistic dialogue among concerned Four Social who action was not, as remove the plan to woodlands for Crestbrook Forest In dustries Lid But workers and residents in com: munities where companies holding licences have laid off employees disagree with Murray “The town I live in is dying. It is slowly, inexorably being turned from a Office ” Retail Space thriving community a ghost town," said John Leach of Tahsis “When-Canadian—Pacific Forest Products first began its modernization of the Tahsis sawmill it said it was making a commitment to the people and the village of Tahsis. It has honored that commitment by eliminating 600 jobs. Tahsis mill manager David Goyette said the number of jobs lost in the community 500 and resulted from the shutting down and retooling of two uneconomic mills at a was closer to combined cost to the company of $55 million Street-level air-conditioned ottice or small retail space tor rent in Castlegar News building. Includes general of- tice, private office, storage area. 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