Winnipeg Free Press

Winnipeg Free Press (Newspaper) - May 5, 1972, Winnipeg, Manitoba Winnick Polf just f1i0ay, May 5, 1f72 envelope contents agreement copy Rex. E. Disputed the evidence of an earlier witness thursday and said the contents of a sealed envelope delivered by hand to a Man in Zurich Switzerland in ,1970 night have just been a copy of an agree ment covering working capital for a forestry firm or. Grose was being questioned at the commission of in Quiry into the Churchill Forest industries Complex about a. Courier trip of an official of the Manitoba development fund now the Manitoba development whose testimony added a dash of color and in Trigue to the inquiry s hearings in january. On Jan. 18, a. W. Kuhnle development corporation trea surer told of a. Hurried trip to Zurich to have or. Oskar Reiser of Monoca a of Swit Zerland sign a document. He said he also was Given a Pic Ture of or. Reiser arid a sealed envelope which to sur Render to the Monoca official Only if he asked for it. Or. Grose confirmed the Pur pose of the trip was to have a document signed regarding the maximum amount the fund could be loaning to Churchill Forest industries Ltd. The said that in first discuss ing this with or. Reiser by. Tele phone or. Reiser asked for an other document to be sent too. Or. Grose said he discussed the request with d. Rodgers now loan director of the development corporation and it was decided it would t be detrimental i to Send or. Reiser the document. He said the document was inspected first. C. Rhodes Smith asked or. Grose if he disagreed with or. Rodgers i. Who has testified before the inquiry or. Rodgers not knowing what was in the sealed envelope. Or. Grose said he did Dis agree with or. Rodgers. But he Aid that in fairness to or. Lodgers even he or. Grose you Dan t recall what it was. He also said the envelope was t sealed when he gave it o or. Rodgers. And he said be picture Given or. Kuhnle was simply so he would be Able o recognize or. Reiser. On the contents of the Enve Ope or. Grose first said he bought it was some communication the fund had with a chartered Bank regarding Chi. He then said it might have been what the fund was pre pared to do regarding a put agreement a Bank guarantee or working capital for Chi but Laid he could t be sure. Then under Cross examination y Scott Wright counsel for the Manitoba government or. Rose said it was possible the Uhd provided or. Reiser with a copy of the put agreement but be could t be sure. Testimony so far before the inquiry is that the fund agreed o a put agreement for a maximum of about million for Chi but that Only about million was loaned by the Baal concerned Oriot continued he said it was his impression the documents were to be Kep in close custody and were heu in under lock ant key he said be did t think the British court fire Levels continued the bumming at 1700 Sargent Avenue the building was a bed it was going Damn when we got Here in what appears from the air to be a suburban sprawl housing is actually More than i go of junked autos in a used part Yard outside Philadelphia. Data lacking Grose o continued Good we thought it was Safe about Ari hour and a halt . He said it s All gutted out chief Miguez said four pumping fire trucks were used As Well snorkel truck. The snorkel was t a hell of a lot against the building s tin he said. The Wal began to. Cave in about . Whenever part of the Wall people would yell and the fire ind bits of burning material would. Float up about 50 feet Over the crumbling building. Is about .60 feet South of the company s production Centre Ira ice faces Sar gent Avenue. Two buildings Are connected to the West Side of the warehouse coat round environments Ltd. At 661 Century Street and heating industries i Century the fund staff own have Access to them. Or. Grew Tom or. Wright he took them with him on leaving the fund because he Felt he d been Given responsibility to look after them. But or Wright said he did t follow or. Grose about the responsibility continuing when he fund. He said it seemed or. Grose had gone further and he asked How he d have breached his responsibility if he had left the documents. Or. Grose then said he might have made an error in judg ment. But he said that was what he did take he said he then wanted to be relieved of the responsibility for the documents and turned them Over to the commission of in Quiry. Or Wright pressed further. He said it did t make sense. He said the documents weren t or Grose s to take. But or. G t o s e said he could t further. He said he that when he left the fund govern ment inquiries about the forestry going on. Asked if he thought the documents might Yahie in the Inqui Ries Grose said it did t occur to police controlling street., some of Thi the Crow i. Feared that the Bui Kung contained grease but there was Only a Small Quan proved by the Cabinet sept. 29 was accepted by the govern ment and the Manitoba develop ment fund in separate letters oct. 8 was in the legislature March 8, 1966 the government agreement was dated feb. .24, 1966 and the master finance agreement with the fund was dated nov .19, 1966- a begin ing with initial meeting in sept. 1965, or. Grose said it was or. Oskar Reiser of Monoca a who came up with the 86-i4 ratio of fund to company equity contributions to the project. He said or. Reiser got the impression front discus Sions with then progressive conservative Premier Duff Rob Lin and other Cabinet officials that the Ball Park he was in y or. Grose1 said he recalled discussion w h end. Reiser was t there about the formula for Mill at Prince Al Bert sask. And the government did t Grant the terms in Manitoba to be any less favourable. Also be said the million for the Chi project came from the Monoca Side As Well and accepted. The tit was said Monoca a officials indicated the firm had Tity of Coconut Oil. Some of the crowd hoped the building contained grease., the main contents in the warehouse were papers Wax boxes and Cartons. A maintain Ance Man Tot dutch foods said the fire started in the warehouse s bag room which contained the material for the potato Chip v or. Riege said a Workman saw the fire in the room and ran to get a fire extinguisher but by the time he got Back there was too much smoke " another worker commented just in five minutes every thing was filled with chief Miguez did t think the warehouse had a sprinkler sys agreed he did to Tell the new government of premiered Schreyer or his successor at the fund about the or. Wright asked How Long or Grose had been ser vant Twenty replied or. Grose., or. Wright then asked if he realized what would happen if All civil servants took files with them. Or. Grose shot Back that they weren t department documents but were ministers files. Or. Wright said surely or. Grose would t say they weren t government documents that should remain with the government regardless of who is in Power. I Don t disagree with replied or. Grose. Asked if anyone else had looked at the Doeum e its from the time he took them with him from the fund or Grose testified or. Roblin was shown some of them in a Toronto hotel in May or june 1971. He said or. Roblin contacted him and that he was hazy about dates. He said both or. Roblin and his lawyer looked at some of the documents. He was t aware whether any copies were made by or. Rob Lin but. Said copies could have been made. Asked Why he provided the documents to the fund in october 1971 or. Grose said he did t want to have them. He said he thought the commission of inquiry was the proper place for them and that there was no other reason. R or. Riege said the re spread throughout the building quickly and the roof and Walls went Little by the business files in connecting buildings were taken out when it was feared the fire would spread. Bob Sciberras employer with controlled Environ ments Ltd., was driving around the area at 10 . When he saw the. Fire. I drove up and.1 save it 1 it was really Burn ing by 10 o he phoned the company s went to about to million then a company would be Eligi ble to apply for further Loans. And it was said or. Grose received a Telegram aug. The same Day As he was. Meet ing with or. Mullette saying a or. A. W. H Derosier would be arriving in Winnipeg aug. 25. It was through or Dero sier that or. Grose and govern ment officials were introduced to or. Wright asked mr7 Grose if he then heard any More from can equip. He said he did t. Asked if he thought that was strange considering the interest can equip had shown in a North Ern project or. Erbse said said he never connected can equip with others. But said he did or. Reiser about or. Mullette and or. Reiser said he knew of the Man but that was All. R e g a r d i n g meeting or. Reiser in new York tember 1965, or. Grose said he was surprised to learn How much or. Reiser knew about the government s past negotiations on the forestry i idea. He said or. Reiser was surprisingly knowledgeable of what we d been doing for the past couple of he said or. Reiser did t say How he knew All this. Or. Grose said he just considered him Well informed. . May relax Oil import curbs govt. Battered London up the Oppositi on labor party made some headway in parliamentary Bielec Toms thursday night retaining one seat with increased support and losing to the conservatives in another Riding by a smaller margin than in the june 1970, general election. The conservative party also was battered in results from municipal elections throughout England and Wales. Labor won the London constituency of Southwark where Harry Laborn took the seat with votes compared with for conservative Jeffrey Gordon. Independent b. Mcdermott had 398 votes. In the june 1970, general election the seat was won by labor. The Southwark Victor in 1970, Ray Gunter a former labor minister resigned from the House criticizing the labor party leadership of Harold Wil son and labor s hostile attitude toward the common Market. In Kingston on thames near London conservative candidate i Norman lament won with 52.3 per cent of the vote compared with 31 for 1.9-per cent shift to labor. That by election was called walkout staged continued Washington a an assistant Secretary of the or announced thursday what appeared to be a major policy shift on United states Oil import restrictions. But a White House spokes Man said no such policy change was under consideration by president Nixon. Other key officials at the Inte rior department and the White House were not immediately available to clarify the Issue. Houis m. Dole assistant Secretary of the Interior appeared to indicate in a speech prepared for a gathering in new York that the present fixed limit on Oil imports to the Eastern states would be replaced by a flexible formula. I since 1959, Oil imports have been limited by presidential proclamation with the stated purpose of protecting National Security by preventing Over vice president a n d with the help of other employees we of All the files or. Sciberras said acetylene tanks and oxygen tanks were moved out of the building. And that time the Walls be came very the fire attracted about 80 spectators but by . Only about 15 remained to see the end of the eight year old building. One person said i saw the Auto buddy fire Pembina Auto body which burned last week this is a lot line crowd stayed far. Behind the railway tracks when the fire was at its height but when the fire began to diminish the crowd moved closer and some people finally began to sit Down on the tracks. Firemen were still at the scene at this Morm Ngwa tearing Down nearby buildings and watching to see that the fire did not Startup again. Been involved in four major ventures in Spain and North America. But said he asked or. Reiser about the North american venture but never found out about them asked if this made him suspicious or. Grose said in re and he said it did affect his thinking about the. Kind of peo ple and company that was with. Asked if by the ume the project Wai announced March-8, Tob late or. Grose said yes but he said far As officials were concerned the company was up to its obligations. Wright said the Monoca officials were misrepresenting themselves. Say said Var. Then said Monoca topic the position it was none of our Danin. Mrs Grose did ask about the Monoca ventures. He said he was told Pany prepared to identify the other Mills but would show them the slice Mill in Sicily if they wanted or Roblin did visit this Mill according to his own testimony of last or. Wright Aid this seemed worse than no answer. Commissioner Leon Mitchell s Aid that when an official of the fund s . Consulting firm re ported on Monoca he indicated he was told the Swiss firm had built Mills in Europe and Asia hot North or. Grose said officials in Manitoba attached More importance to Moho a s refusal to disclose its shareholders than they did to the company s Mills. Or. A right said things seemed to proceed on the. Basis of Good Faith. That s said or. Grose. Mediation Bucharest a pre Mier Golda Israel asked Romania s government thursday. Night to try to. Per Suade the Arab states negotiations with Israel without prior conditions. Romania indicated no eagerness to mediate the Middle was t mrs. Meir made the request to romanian Premier Ion Gheorghe Maurer in the first of three Days of talks on the mid dle East conflict Trade and jewish immigration problems. Romania is the Only communist has maintained full Trade and diplomatic links with Israel since the 1967 Middle East war.--. Turkish army alerted d e p e n d e n c e on foreign Oil sources. West of the Rocky mountains Oil imports Are limited to Mak ing up the difference Between regional demand and available Domestic production. East of the Rockies however there has been a fixed quota permitting imports Efluri Talent to per cent of Domestic production plus specific additional amounts under special authorizations. In his speech for the Oil daily forum on synthetic Energy Dole said thursday that the Oil import program that we have had in effect since 1959 is in the process of shifting until this year the program was administered to accommodate a surplus in productive Ca pacify East of the Rocky Moun he said the surplus has now disappeared and the Oil Industry throughout the United states is producing virtually at Capaci after the naming of the conservative member John Boyd car Penter As a life peer. In the municipal elections labor candidates swept into Power in 40 cities and towns where they were in the minority before. Labor threw out More than 800 conservatives from seats in local councils. Standings in the House of commons now Are conserva Tiyes-326, labor 289, liberals 6, g o r i c a 11 y refused to defend themselves in a court where a Root squad assures order. The courtroom was crowded with More than 100 supporters of the labor leaders intermittently cheering singing and chanting on Lache won t give up. But they became silent when or. Laberge told them no demonstrations because authorities would use the slightest reason to expel them. In a n o t h e r development thursday three unions and 14 officers received fines ranging up to and jail terms up to six months bringing to 41 the number of Union leaders Given prison terms and fines for violating court injunctions during the strike. Or. Laberge Marcel Pepin president of the confederation of National Trade unions and Yvon Charbonneau president of the Quebec teachers corp., walked out of the courtroom after waiting half an hour for proceedings to Start. We re not obliged to wait half an or. Pepin told reporters outside. We won t hide. Let them arrest inside the court later or. Justice Pierre Cote of Quebec Superior court heard Crown arguments for contempt penalties against the three men for their actions in the 11-Day Public ser vice strike. Andre Desjardins associate Deputy Justice minister said scottish the three had advised strikers can labor 3, to disregard injunctions pro i speaker 1, Deputy speakers 3 total 630. Biting strike action by essential personnel mainly Hospital workers. Continued passengers and Crew of the hijacked 70 All told flown Back to tur key thursday night. None was Hurt. The hijackers were granted Asylum by Bulgaria with tur key s permission in order to save the hostages lives acting turkish Premier Ferit Melen said. He reported that Bulgaria retained the right to bring them to trial. The hijackers had threatened to blow up the dc-9 Jet and All persons aboard if their de mands were not met. Other de mands were a lifting of a ban on strikes and cancellation of peasants debts of less than the hijackers were identified by the bulgarian news Agency As two economics students a mechanical engineering student and an electrician All in their twenties. then Dole added the new emphasis on the program will be to permit imports to fill the Gap Between demand and production both East and West of the by equating East and West Dole appeared to indicate adoption for the Eastern states of a Supply demand formula similar to the one already supplied on the West coast. Dole indicated however that import quotas would not be abandoned entirely permitting unlimited Access to foreign Oil. Make no mistake about . Food prices drop Washington a the United states government reported Friday the biggest drop in wholesale food prices inv eight months for april due largely to a Sharp decline in meat prices. In another report the labor department said total employ ment and unemployment remained unchanged last month with the jobless rate holding steady at 5.9 per cent of the work Force. The report on wholesale prices said the average Cost of meats poultry and fish declined 2.9 per cent in april. This was the major Factor in an Over All decline of seven tenths of one per cent for All farm products and processed foods. Wholesale food prices Are the to generally reflected fairly Quick got to continue to be our policy the a Broad wholesale Man fac and report said of we Are Ever to see the com j Mercial development of synthe., of one per cent. All wholesale prices of food and Industrial commodities average out to a Rise of one tenth of one per cent boosting the wholesale Price Index to 117.5 of its 1967 base of 100. This meant it costs on the average for wholesale goods Worth ?100 five years ago. The latest Index was 3.7 per cent above a year ago. Soccer Star Dies at 70 Barcelona a Jose Pepe Samitier 70, one of Spain s greatest soccer players died of a heart attack thurs Day. Samitier won 21 International Caps As a Centre Forward and helped Spain win a Silver medal at the Antwerp olympics in 1920. Strong Fibre silk May stretch As much As one Quarter its length before breaking. Special Burger offer expires May 7 at participating Winnipeg drive ins and Coffee shop was Normal and said he n t see what it is we re lesson from past York eng i and flooring contractors renovating York Cathedral have Takei Taa lesson from the romans. A 2-million restoration scheme parts of a roman floor were beneath dral. The contractors followed the ancient pm o r t a n d crushed Brick formula to re build the floor in the Nave. But or. Wright wondered if that could or. Grose replied Only the government s desire to get a development going As soon As possible. Skipping Back a bit or. Grose told of being in touch and meeting with Stan Mullette of can equip exports Ltd. Of Mon Treal just prior to Monoca a. Coming on the scene. He said he did Supply or. Mullette with Public information regarding Northern forestry development the government was seeking. He said this was t unusual j also it was said correspondence with or. Mullette in 1965 indicated the maximum loan expected for any. Project would be about million but if an. Expanded development join the world and see the club. Canadian club. The finest of Fine Canadian whiskies is the Best in the House in 87 lands Afghanistan Algeria Antarctica Antigua Arf Cintina Aruba Australia Austria Bahamas. Barbados Belgium Bermuda Brazil Canada. Canary islands Ceylon Chile Christmas Island Costa Rica Curacao Denmark dominican Republic Ecuador Ethiopia Fiji Finland France. Germany Greenland Grenada Guadeloupe Haiti Hong Kong Iceland. India Indonesia Iran Iraq Ireland. 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