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Signatures end Cold War

PARIS (CP) — Prime Minister Brian Mulroney joined world leaders today in burying the Cold War as a 34-country summit ended with a declaration that the “‘era of con- frontation and division in Europe is over.”*

The leaders to the Conference of Security and Co-operation in Europe signed the Charter of Paris, commit- ting their countries to democracy, human rights and economic freedom.

Mulroney said Soviet President Mikhail Gorbachev has given Canada and other western countries a list of emergency food items urgen- tly needed by the Soviet Union which is facing a harsh winter and growing popular discontent

The ceremony of signing the char- ter took 15 minutes as aides oarried the charter to each leader seated

; around an oval conference table. French President Francois Mit- terrand was the first to sign the document

The summit opened Monday with the signing of an historic treaty that cuts non-nuclear forces in Europe and a companion non-agression pact

Much of the k i y

three months old,

Gorbachev called for swift and firm United Nations action against Iraq.

But he refused to say if he backed a U.S. proposal ot use force to drive Iraq out of Kuwait following Bagh- dad's Aug. vasion.

“Burope is itself from the legacy of the past,’’ the charter said. ‘‘Ours is a time for fulfilling the hopes and expectations our peoples have cherished for decades: steadfast commitment to democracy based on human rights and fun- damental freedoms, prosperity through economic liberty and social justice, and equal security for all countries."

The charter sets up a small office in Prague for the security and ¢o- operation organization, as well as a centre in Vienna for the prevention of conflict and an office in Warsaw to help monitor elections.

“Democratic government is based on the will of the people, expressed regularly through free and fair elec- tions,’’ the charter said. ‘Democracy is the best safeguard of freedom of

during the Paris summit was devoted to the Persian Gulf, where Iraq’s oc- cupation of Kuwait is more than

P of all groups of society, and equal opportunity for each person.””

The also

|AN MULRONEY . Joins world leaders,

that the heads of member countries and governments meet at least once every two years, their foreign ministers- annually and senior of- ficials even more often.

Emerging from a meeting in Paris

Canada will aid Soviets, PM says

PARIS (CP) — Canada has agreed to respond to an appeal from the Soviet Union for food to replenish its empty shelves as it heads into what could be a miserable winter, Prime Minister Brian Mulroney said today.

"y made the after meeting with Soviet President Mikhail Gorbachev. at the Soviet Embassy in Paris.

“‘My_ understanding of what Mr Gorbachev is saying is that they may be having a pretty tough winter,’’ Mulroney said at a news conference.

The food package, which could be described as commercial food .aid, includes millions of dollars’ worth of meat, wheat, butter, milk powder, vegetable oil and flour.

Government officials were still trying to determine how much the food would be worth. The Soviet Union has an $850-million line of credit with the Canadian government for such purchases, but Mulroney said it was unlikely the package would be worth that much.

Gorbachev made it clear during the meeting that the Soviets did not want a handout, said Mulroney.

“They presented a list (Friday) of the kinds of foodstuffs they needed,’’ he said.

“It would be not a gift, but a commercial transaction. But the ter- ms would obviously be favorable. We are trying to help them, not penalize them.””

Basic foodstuffs are being rationed in every major city in the Soviet

Union despite excellent harvests. But fuel and labor shortages, as well as outdated and_ inefficient farm machinery, have meant much of the crop has rotted in the fields.

There are reports that some Soviet cities have no more than three days’ supply of food.

With winter snow now covering much of the Soviet Union, food is likely to be rationed more severely than at any time since the end of the Second World War.

Mulroney and Gorbachev were among 34 leaders, including U.S. President George Bush, attending the Conference“on Security “aHWC6 operation in Europe.

The conference ended today with the signing by the leaders of the Charter of Paris, committing their countries to democracy, human rights and economic freedom

The ceremony of signing the char. ter took 15 minutes as aides carried the charter, bound in red leather, to each leader seated around an oval conference table. French President Francois Mitterrand was the first to sign the document.

The summit opened Monday with the signing of an historic treaty that cuts non-nuclear forces in Europe and a companion non-aggression pact.

Mueh-of-the-backstage diplomacy during the summit in the French capital was devoted to the Persian Gulf, where Iraq’s occupation of Kuwait is in its fourth month.

with y, Gorbachev told Canadian reporters there is no division between his position and

that of U.S. President George Bush and provided his firmest support for the U.S. position.

“The most important thing is this: we have to act, we have to be resolute and firm and there is a need for a meeting of the UN Security Council without delay,’’ Gorbachev said during an impromptu news con- ference in the Soviet Embassy.

Gorbachev said Paris was not the place to decide Security Council resolutions. But he made it clear that he has changed his earlier position calling for patience with Iraq.

“The situation continues to be very dangerous,” he said after Mulroney had left. ‘‘We cannot just leave things this way without giving them closer attention and analysis.

“Therefore we have concluded that the UN Security Council should act without delay.””

Mulroney and Bush discussed the gulf crisis during a 45-minute meeting. They also discussed the possibility of Canadian economic aid to the Soviet Union.

“I think the time has come for the Security Council to sum up, to take stock of things, and to pass a proper judgement on what has been done,”’ Soviet Foreign Minister Eduard Shevardnadze said after he met Tuesday night with U.S. State Secretary James Baker.

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Two more reports say recession toll rising

OTTAWA (CP) — Bankruptcies jumped 60.6 per cent in October from the same month last year and damage from the shrinking economy continued to spread among Canadian plants and factories in September.

Two more reports on the economy released suggest the toll from the recession is rising.

The number of Canadians and companies losing battles to repay creditors swelled in October.

Bankruptcies jumped to 5,922 last month, up sharply from 3,687 in Oc- tober 1989, the Department of Con- sumer and Corporate Affairs said today.

October i i di

ting the motor vehicle, forestry and steel industries,’’ the agency said. of

ed products and new orders, reflecting current demand from customers, have tumbled about five. per cent from the same time last year.

The manufacturing sector has bor- ne the brunt of the recession so far, prompting industry-wide criticism of Finance Minister Michael Wilson.

“The current economic policies are wrong for Canada and are causing severe and permanent damage to our industrial base," Laurent Thibault, president of the Canadian Manufacturers’

4,773 people and 1,149 companies, were also up 32 per cent from 4,481 personal and corporate bankruptcies in September.

Statistics Canada also said manufacturing shipments and new orders at plants and factories fell in September for the third month in a row.

“The decreases were mainly due to declines in demand and strikes affec-

A iati said last week in an open letter to Wilson.

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“The resulting high interest rates and accompanying overvalued currency, in turn, are particularly damaging for manufacturing,”’ Thibault said in his letter.

The Consumers’ Association of Canada told Wilson on Tuesday he should cut the GST rate to five per cent from seven per cent to stimulate the economy.

And the group said Jan. 1 may not be a good time to introduce the tax because of the recession and the threat of rising inflation.

The government estimates that im- plementing the GST will have a one- time increase on inflation of 1.25

economic policies, the proposed goods and services tax.

The seven per cent GST, scheduled to begin Jan. 1 but stalled in the Senate, would help exporters and removed favorable tax treatment for products made in other countries and

points. The annual in- flation rate was 4.8 per cent in Oc- tober.

The Consumer and Corporate Af- fairs Department said bankruptcies increased almost 40 per cent during the first 10 months of the year to 43,345 from 31,048.

Beer sales declining

TORONTO (CP) — Canadian brewers may be on their way to a third straight year of decli sales after a summer in which they recovered just a fraction of business lost in a dismal 1989.

Canadians bought 628 million litres of domestic draft, bottled and canned beer this June, July and August, up 0.5 per cent from the sale period last year, figures from the Or tawa-based Brewers Association of Canada show.

For the first nine months of the year, however, sales have fallen 0.6 per cent to 1.5 billion litres of beer.

“It looks like this will be the third consecutive year we've had a con- sumption _decrease,"’ Margo Sparrow, the association's statistician said.

Sparrow says the aging Canadian population is quaffing less beer because it’s concerned about healthier lifestyles.

Taxes, too are taking their toll.

“There has been a school of thought where you could do what you wanted to beer prices with taxes and it wouldn't affect consum- ption,”” Sparrow said. ‘‘That’s no longer supported by consumption trends."”

On average nationally, federal and provincial taxes make up 53 per cent of the price of beer, she said.

Sparrow minimized the importance of the upturn during the crucial summer season this year because it came after the summer of 1989, when sales fell four per cent.

“Last year was a particularly bad

year overall — it ended down two per cent,”’ she said.

Cheap U.S. imports such as Lone Star, Rainier and Olympia were an important reason for the domestic sales decline in 1989.

Import sales were strongest last year in British Columbia, Alberta and Ontario, all of which appear to have turned back somewhat to Canadian beer this year.

Through the first nine months of the year, residents of British Colum- bia bought 2.3 per cent more Canadian beer, Alberta 2.7 per cent and Ontario 0.7 per cent.

Except for the Yukon, where 2.2. per cent more Canadian beer was sold, homegrown suds took a poun- ding everywhere in the country.

Gas study completed _...

CALGARY (CP) — British Columbia’s booming natural gas in- dustry will flourish over the next two decades if pipeline links to Central Canadian and U.S. West Coast markets are expanded, an energy research study predicts.

“We see B.C. gas production growing at a faster rate than Alberta, but Alberta remains the predominant producer in Canada,” co-author Leonard Coad said this week about Markets for British Columbia Natural Gas.

The recently released report was done by the Calgary-based Canadian Energy Research Institute. It says B.C.’s gain will be at the expense of Alberta’s gas sector, particularly in the second half of this decade and into the next century.

“‘After 1997, production in British Columbia continues to grow and is sustained . . . long after production in Alberta has begun to decline,’’ the report says.

B.C. gas will remain competitive because its reserves are bigger and relatively untapped and Alberta’s mature pools will be increasingly displaced by shipments from the Canadian Arctic and Alaska, the report says..

The report also says Alberta will still account for the lion’s share of

yearly domestic production well into the next century.

British Columbia’s annual output is expected to rise to more than 800 billion cubic feet in 2007 from about 330 billion cubic feet in 1988.

But the study warns the boom for B.C. could peter out if gas delivery systems are not expanded to export to existing and new markets, such as California’s.

Alberta’s output is expected to in- crease to 3.6 trillion cubic feet in 2002 — from 2.5 trillion cubic feet in 1988 — and then drop to 3.4 trillion cubic feet in 2007.

Saskatchewan production, after several years of rapid growth, is ex- pected to begin declining later this

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