Winnipeg Free Press

Winnipeg Free Press (Newspaper) - February 25, 1972, Winnipeg, Manitoba Winnipeg free press Friday february 25, 1972 loan to Bertram probed at hearing several aspects of the Dea for the James Bertram and so Canada Ltd. Paper Machin manufacturing Plant Wei called into question thursday before the commission of injury into the Churchill Forest industries Complex. Morris Neaman of Neama fur co. Ltd. Of Winnipeg a former director and chairman of the Manitoba development fund now the Manitoba Deve Ozment was questioned about the Cost of the project the presence of an and verse report on the idea a manufacturing Plant am about How a missing minute sit Fatiori was rectified regarding an additional loan of Mil lion for the Plant. Or. Neaman was appointed a director of the fund when it was established in 1958 and served until March 31, 1970. He was chairman from about 1962 to 1966. Commission counsel d Arcy Mccaffrey began by referring to a june 12, 1968, document which gave an estimated cos for the proposed Plant of ?4.5 to million. Commissioner Leon Mitchell said that at that Point there was no feasibility study on the proposed Plant let alone a favourable one or. Mccaffrey said that then on oct. 4, 1968, mentioned giving the fund s general manager then Rex e. Grose authority to finalize a loan and said the estimated Cost was million. He said the master finance agreement nov. 7, 1968 be tween the fund and Ber Tram and son Canada Ltd. Said the fund would loan 86 per cent of the Cost to a maximum loan of million. He said the loan was done that or. Grose was reporting on it. He said the Board was told of a to million project but a million loan was set. He asked where or. Grose got the authority to go up to million. Commission chairman c. Rhodes Smith said that what or. Grose reported was not what he was authorized to say. Asked if the almost doubling in the Cost made sense or. Neaman said it did. He said it could grow or go the other Way. But that was just the begin recall seeing the report or knowing or. Ault went Over to Scotland to. See the Plant s Parent firm James Bertram and son of Leith walk Scot land. He said he thought the Scot Tish firm was reputable and of Long standing. But or. Mccaffrey before going further into the various Dollar figures referred to an aug. 16, 1968, letter to or. Grose from an official who said he had information from a con tact in Scotland warning that payments varied from the Scot Tish firm and that strict terms should be applied. Or. Neamani did t recall being told the company was in a tight financial situation. Or. Mitchell said it almost seemed information was being withheld from the Board. But or. Neaman said he could t say that. He said he had a Good image of the scottish firm but was surprised at what he heard thursday. He said he no longer had the same image of the irm. Getting Back to the financing or. Mccaffrey said a feb. 1969, document referred to a 9 to million Cost while the agreement signed was for million. He asked How this came about. Or. Neaman said he could t say which was the right figure he said he was t advised of All hese activities. Or. Mccaffrey said it seemed mfr. Grose was running Loose. But or. Neaman said if he did so it was because the Board permitted him to and it was ceded to realize our Lack of then came reference to the Nissing minute of May 5, 1969. Chi pay change shocks continued president Nixon reaches up As though to tweak the Chin whisker on Stone Camel at the Ming Tomb near peking thursday. Ning. Or. Mitchell said that by sept. 15, 1968, the fund had a report which in effect said hold on there Are Many questions to be asked before going ahead. This was the report done for fund by Thomas j. Ault now president of flyer Indus 1 tries Ltd., who testified before the commission of inquiry in january in. Neaman was asked about eing requested to Correct an commission in the fund s min utes of that Date regarding an additional million for the James Bertram Plant. Or. Neaman said in 1970 he was approached about provid ing a letter to certify that at a loan committee meeting of May 5, 1969. Approval was Given for the additional loan. He said he told d. M. Rodgers of the fund now loan director he would have to Check first with the fund s Law yer. He said he did and was assured this was a proper Way of correcting an commission in the minutes. Asked How he recalled the approval having been Given or. Neaman said he signed the correction letter because of the document shown him by or. Rodgers. But he said he did t recall now what the document was. He also said he did t re explains rebate or. Neaman said he did t Call the meeting in question. 1968 sawmills Deal wrong Neaman a witness testified thursday but commissioner Leon Mit that from what he was told at Chell mentioned testing that to the commission of inquiry into sit Ion. The Churchill Forest industries he asked if the feasibility Complex the Manitoba develop-1 study mentioned earlier was ment fund Board made the j done. Or. Neaman said it must p wrong Deal regarding River have been but did t recall if he sawmills company. J saw on. Morris Neaman a former i fiut of Mitchell said chairman and director of the by Victor Mackie free press staff correspondent Ottawa staff forme finance minister Edgar Benso said thursday that losses incurred by great Canadian of Sands Ltd., in its operations t extract Oil from the Alberta to Sands constituted a genuine hardship or. Benson now defence min ister said in a Telephone inter View that he was the minister of finance who reviewed the position of the firm in its Reques for a remission of Sale taxes. He said the company had contracted for much of its production machinery before the imposition of the sales tax by Ottawa on such machinery. There had been delays in de livery and other holdups and the machinery when it was finally delivered was subject to the newly imposed Federal sales tax. That tax was made applicable to production machinery by Walter Gordon in his first Bud get As finance minister during the government of l. B. Pear son. As a result the company had to pay sales tax it had not taken into its calculations. Or. Benson said careful and Long consideration had been Given to the submissions of the company for special consideration under Section 33 of the i n a n c i a i administration act. Under that Section he said the government has authority to order remission of the sales tax. The decision was made by Cabinet on his recommendation. A re port in november 1970, by a fund now the Manitoba devel thur d let us inc of Cam. Ozment corporation said this bred Massad Susetts said the after being questioned on sever j fund Are a Fca Sibilio Al aspects of the River saw stud As a tem of ent into a Mills company Sawmill project i Oan with River but he said a including Cost details. I financial was re Quirck. Or. Imerman was appointed a director of the fund from its i total amount of s6 million was paid Back to cos. Which Tion of the sales tax included in the Price of the production machinery. It was paid was formation in 1958 until March 31, 1970 and served As chair Man from about 1962 until j966. The questioning of or. Nea Man on the Sawmill project began with a june Doc first he heard of it. Or. Mccaffrey said that at one Point a s7 million Sawmill was mentioned. He asked How the loan committee could approve a project if it did t know 1 Quebec gets most Ament regarding expansion of what was to be built. Continued Back on the grounds of undue hardship the minister said. An order in Council was passed dec. 7 and published in the Canada Gazette part two dec. 22. Fugitive gets remand Vancouver up Ray mond Joseph Palmer okie of Canada s most wanted Crimi nals was charged in Sydney Australia thursday with illegal Possession of firearms and was remanded in custody to March 3, australian officials reported n a Telephone interview. Palmer escaped from the British Columbia Penitentiary n january 1970, while serving a six year sentence for posses Sion of stolen Bonds. Australian police in a Tele phone interview with a Van Couver newspaper said Palmer also is wanted in Canada for questioning about the murder of a police informer and a mailed bomb that blew off the hands of . Penitentiary guard in they also said Palmer and Lis brother both of whom were arrested in a police raid Early thursday were being ques toned by australian narcotics agents and that Honolulu police Lave been asked to be on the Nixon praises China Conti iwed president Nixon began his fifth Day in China with some More visit to the forbidden City in the Centre of the capital. . Satisfaction at the Way the sino american Summit is going was expressed by state Secretary William Rogers in a message to Washington thurs Day. He said the talks were extremely useful to both sides in reopening communications and exploring Mutual con today was or. And mrs. Nix on s last full Day in peking be fore they go to the resort City of hang How saturday followed by a trip to Shanghai before hey return Home monday. Rogers in a message to re publican state governors meet no in Washington character Zed the president s meeting with Mao and Chou As one of the most challenging diplomatic opportunities with which i have had the privilege of being As both sides have agreed not to disclose what is being said at the talks until a final communique is issued. Nixon making his first direct reference to the talks when he was chatting to reporters at the great Wall of China thursday described them As interesting and worthwhile. It was generally believed that by into the Churchill Forest industries. Complex. Or. Neaman was a Directo of the fund from its formation in 1958 until March 31, 1970. H was chairman of the fund from about 1962 until sometime 1966. The change in pay out procedure occurred just after the new democratic government o premiered Schreyer came t Power in june of 1969. Questions about the two events pos Sibly being linked also were raised thursday. The questioning of or. Nea Man picked up the thread o events being traced when i last testified on tuesday. It was said a feb. 4, 1969 minute of the fund s loan com Mittee mentioned giving the fund s general manager then Rex e. Grose authority to negotiate and execute a up agreement guaranteeing a Bank credit for Chi in an amount to be determined by submissions by Chi and to be part of the existing loan agreement. Or. Neaman said or. Grose was trustworthy and would sign a Blank Cheque. He Sai that As it was written the item could be criticized but said i was t unusual and it was understood it was t an additional loan. He said there was unlimited Trust and Confidence in or Grose and was sure he would t abuse that Trust. He said he did commissioner Leon Mitchell asked if Chi applied for the Money he noted the minute said the fund was desirous of providing additional financial Aid. Or. Neaman said he could no recall. But he said there must have been proven need. However or. Mitchell said the Plant was t to go into operation for about 18 months and said Chi had t used the funds then available. Commission counsel d Arcy Mccaffrey said a March 1969, document indicated site Clear ing was just beginning asked what the million would be needed for. Or. Neaman said the forestry Deal Here was almost Arm s length from the Board. He said if or. Grose came Back with a million agreement it would be for value received. He said or. Grose would t put it in his pocket. Again asked about what would be done with working operating capital or. Neaman replied with some Surprise that s for operating commissioner Murray s. Donnelly asked what would be operated a commission chairman c. Rhodes Smith asked How it could be said about 18 months in Advance that the company would t be Able to get working capital on its own. Or. Neaman said he could t say the Northern forestry project into four separate projects plus paper Large Sawmill and papers machine manufacturing it was said the size of the Sawmill project was increased and the Cost went up from about million to about million. And a feasibility study was to be done. Commission counsel d Arcy Mccaffrey said a july 18, 1968 minute of the fund s loan com Mittee referred to the june 12 committee meeting and a july 8 Board meeting and mentioned or. Neaman said that was t j or. Marchand came under unusual and this usually was j heavy attack in the House of done subject to certain require ments. On the pay out schedule it was said the Arthur d. Little firm was to certify that funds were properly spent before fur ther advances were made. But it was said this apparently would t apply to the first scheduled payment from toe fund of million. Asked about an agreement where Arthur d. Little inc. Was to be engaged by River whom it was to be checking upon or. Authority Given the general Neaman said the consultant manager of the fund then Rex e. Grose regarding the saw Mill project estimated at about firm should have been engaged by the fund and paid by Sydney by air for Hawaii Earli r this week. Palmer 35. Surrendered with iut a struggle when armed new South Wales state and austra Ian Federal police burst into a ome in the Sydney suburb of Guilford. The brother who was of named was arrested simultaneously in a nearby House. Two loaded .38-calibre revolves a Quantity of ammunition and several Hundred dollars in currency were found n the House where Palmer was iving with Canadian bom Joyce Kruissel and her two children aged 13 and eight. State police began questioning Palmer about a series of armed holdups in the Sydney area and narcotics agents were called in later regularities in the Way the my Palmer has been on the Lookout for a third Man who left the two leaders were making a commons late last year from opposition maps who charged in Start on. A program of cultural exchanges limited tourism be tween the two countries machinery to facilitate chinese american Trade and some sort of governmental contacts that some Day will Blossom into full diplomatic relations. One american in a position to know said Nixon s ultimate goal is full formal diplomatic relations with the communist government. Ister handed out Industrial incentive Grants in Quebec. They said the Money would be Given to Quebec companies on a patronage basis and that Liberal party Bagman imme israelis raid Lebanon Diatel visited a company that j arrest. R c m p list of most wanted criminals since his 1970 escape from the . Penitentiary with j Tel Aviv of new Murray Alan Boyd. Boyd was j israeli raids were reported in shot dead by Vancouver police Southern Lebanon today in re april 21, 1970, while resisting j Talia Tion for guerrilla attacks Asun mediator Gunnar jarring received a Grant. Or. Marchand strongly de Nied the charges. British Columbia got less in Grants than any other Canadian province and the it did get was less than half the amount the second lowest re i eat. Uii us mini after his death police linked f arrived in Israel in an Effort to weapons or revive his deadlocked peace close four j Mission. Murders committed during his i residents in Southern Leban of i n or. Mitchell said he could t find evidence of Chi asking for the agreement. He said the fund decision did t sound like that of a prudent Lender. He said it sounded like wanting to get rid of Money. Or. Smith said the Money possibly was for the Small saw Mill which was built by then. But then or. Mccaffrey referred to a july 30. 1969, minute of the fund Board saying the fund would guarantee up to million in revolving credit. Or. Mccaffrey said the prov Ince then had just had a Provin Cial election and asked if there was concern about the political climate. Or. Neaman said there might have been. He also testified he did t know or. Grose and d. M. Rodgers of the fund had gone to Montclair new Jersey Home of techno pulp inc on july 22, 1969, and that the pay out procedure was changed. He said he had a discussion with or. Grose after the june 25 election and it was agreed there would t be any change of fund procedure with the change in government he said they would try to maintain the status quo. He said he was t told there was a substantial change in the control of Money. Or. Neaman said he Learned of the change in pay out from 102 Days of Freedom. All four killings were said to be connected with a struggle Between 111 ii 1 in on reported that israeli planes Progress in the and tanks struck in three areas. There was no immediate con two crime syndicates for control formation from the israeli gov j the company. He said if it was Mceiver of Grants got new a of the hard drug Trade in Van Ern men t. But the and was shocked to read he said there was no Doum it the million and now compleat j engaged by River it became a j found land with i company j figures released in the de but he said the master i j he said perhaps in total in part menus annual report show Nance agreement Between the Norance we approved it i that All four Western provinces fund and River sawmills com or. Mccaffrey said there a bigger Region geographically Pany said the fund agreed to a were no guarantees obtained by than Quebec and with roughly maximum ban of million i the fond and asked if or. Grose j the same population got that was not to amount to More had the Power to make a Deal i Between them than 80 per cent of the Cost. With a firm with no assets and of Flam less than Quebec got he said if a loan of Mil no guarantees. Alone. Lion was 80 per cent of the Cost or. Neamata said lie Cooma t a breakdown shows that . It would pot the total Cost at say. Asked s fee knew lira was got Alberta about Miff Ioa. Being Dene be replied it was Manitoba and sask at or. Mccaffrey asked Bow an known the guarantees weren t Cheewan agreement for minion Cwm what he Board foam Nave a t Quebec go be set a Riff ii was liked on any of tace projects m More than twice the amoust of own tired. Forestry Complex. Its Wea Resl rival Scotia. Chairman c. It was again said the Al my. Tie a a lodes said Elsis project set a Al. Grants created 2s.m7 jobs he Faai Jar. Said a fact Jet Carfa. Besides we it a lace asked 8ea he s fee 172 Art jete grids mated is cd a Sofce i.m8 in maj x and j Miffin re Nisi. J Day i or Neaman said both he and i or Grose concerned to forestry project go army reported that two israeli infantry battalions and an a i Mored battalion attacked at i Dawn under a heavy air and a j Sidery cover. J the army communique said lebanese Border outposts j Back and the units began withdrawing three hours later. One Letasse Der was wounded it added. J _ the Ai Fatah guerrilla in Zatkow said six Gaerry Oflas were i Kulw avd urrere were in us first boors of of act tale j however he also said be Arab Geer Ridas Udelf a a ref of cow the was to marred compte a directly to a Ridi. Swit abcs i just Border win w of Early her Day Attadi later Taok if ire a system wit front proper a tuft s Kay Mono f a Imit Ali Eirhar. Project or. Be Xref i n to Ftp Fern Yensz. Or. Of Wety was Woof co weekend super savers shop with ease say charge it please prices effective till closing february 26, we Reserve the right to limit quantities. 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