Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 7, 1976, Winnipeg, Manitoba Winnipeg free press monday june 7, 1976 7 Ottawa s Aid essential memo reveals futility meeting urges bilingual air talk Ottawa up evidence appeared during the indicating that a Cash snort government had Little Hope of acquiring either of the two patrol planes it was consider ing last year unless it re versed a policy and involved itself in Multi billion Dollar borrowing. The evidence was an inter Nal memorandum of the Boe i n g aircraft corp. Which showed that defence depart ment statements to the contrary officials did not feel the company could finance a patrol plane Deal without Cana Dian government help. The memo was sent less than a month before the Cabi net decided nov. 27 that it would choose the Lockheed Orion Over the Boeing 707 As a patrol plane for the Mili tary. It was sent by an official named c. G. Claesson to a Superior named g. T. Ringe nov. 14. It was reported in a copyright Story in saturday s Ottawa journal. Government plans to spend about billion on is Orion fell through last month be cause Lockheed was unable to borrow about million from Canadian Banks to finance the first three years of a five year project. The government refused to consider any form of Guaran tee and left Lockheed to raise the Money itself. The Boeing memo comes As defence department officials continue to insist they had verbal undertakings from both Boeing and Lockheed last november that they could provide financing to carry the patrol plane project during a period of govern ment restraint when it had no Cash. Defence minister James Richardson has said repeatedly that if any blame should be attached for the demise of the Lockheed Deal it should go to Lockheed. The government informed Lockheed dec. 2 it had selected the Orion Over the 707. Treasury Board on dec. 15 approved More than me lion to pay interest charges o u Lockheed s borrowing. Subsequently Lockheed de Nied making any financing undertaking. It then spent months trying to raise the Money. The Boeing memo and re cent statements from lock heed show much the same thinking that the compan ies expected government assistance i borrowing. . Dudley Allan head of the interdepartmental patrol plane project office has said he contacted both companies by Telephone in november and received assurances they could finance the defence department Short fall. A Lockheed official said in a recent interview that it was All a bloody Misander Gen. Allan had asked if financing was feasible and the company Assum ing some government Guaran tee had said yes. Now the Boeing memo dated the same Day As a Gen. Allan report to Cabinet shows the company also looked for Canadian participation. The memo expressed doubt that Boeing could obtain com Mercial credit to produce a Canadian patrol plane. Some special arrangement involving Canadian govern ment credit would be re it said. It said it is possible Itiat the Canadian government could finance the aircraft through the issuance of Bonds or some other debt or borrow through the United states import Export Bank or give some form of guarantee to borrowing. After we understand what tire possibilities Are in Canada we would have to review the Over All situation from the standpoint of the Boeing com Pany. The pieces would have to fit together in such. A that our Cash flow and lines of credit for commercial programs Are not jeopardized. We have never done this kind of thing before and Many issues would have to be better Mont Gabriel que. Up Quebec Liberal maps urged the government Satur Day to press ahead with introduction of bilingual air control in Quebec airports and health minister Marc la Londe cautioned the Quebec provincial government t o keep its nose out of controversy. After a two Day special meeting of 50 ministers and maps including prime min ister Trudeau the special meeting issued a cautious press release saying that Quebec liberals roundly endorsed the government policy of bilingualism in All Federal jurisdictions. At least a few Liberal maps were disturbed that the re sults of the meeting were couched in such Broad terms rather than getting Down to particular cases. A number of Back Bencher liberals Are in sympathy with French language air controllers who have split with their English language counterparts Over the use of French in Quebec airports. The Quebec controllers have said they will not Coop Erate with Montreal lawyer John Keenan appointed by the government As a one Man commission of inquiry to look into safety aspects of Bilin Gual air control in Quebec. They charge or. Keenan with Bias against the policy and say he should at least have a French Canadian co commissioner. Quebec government has endorsed the stand of the Quebec controllers but or. Lalonde cautioned the Provin Cial administration to stay out of the controversy. We do not need the Crutch of Quebec to help us defend language or. La Londe told reporters after the meeting ended. The meeting was held in a Mountain top resort in the Lauren trans but or. Lalonde said the maps were too Busy to take advantage of the sunny weather and Che facilities of the resort. Montreal up transport minister Otto Lang reaffirmed sunday the intention of the Federal govern ment to move steadily and carefully Forward towards bilingual air traffic control in Quebec air space. The minister said the government is developing Bilin Gual air traffic control in Quebec with the belief that procedures fully As Safe As we re used to having can be it is a matter of How much time and How much ingenuity it takes but the government is confident it can be done and its just a question of How its the nuni Stet said. Or. Lang said criticism of the policy by anglophone air traffic controllers and pilots who say it would be a safety Hazard was based on their failure to recognise that the department can develop safety procedures to meet our own North main Honda Honda civic 1180 main St. 5864129 pcs probing Lockheed contract Ottawa up progressive conservative defence critic Allan Mckinnon says his party has not demanded the resignation of Supply min ister Jean Pierre Goyer Over the Lockheed controversy until the minister s position is made dear. In and interview Broad cast sunday on the ctr Tele vision program question period or. Mckinnon said the minister should resign if he is proven inept in his Deal Ings with the Lockheed con tract. Defence minister jams and others May have purposely kept in formation from him that led to the ignorance he pleaded in the commons last week or. Mckinnon said. Let s face it. He s in a very difficult the conservative critic said of or. Goyer who was responsible for drawing up a contract with the . Lockheed corporation for a is billion Pur Chase of 18 patrol planes for the defence department. The proposed transaction collapsed two weeks ago and Jean Pierre Coyer Richardson s dupe conservatives immediately called for the resignation of defence minister James Richardson charging that he bungled the Deal. Whether or. Goyer can be accused of similar mis management through his own incompetence is another question or. Mckinnon suggested. I d like to have it fully explored to see if maybe he was duped completely by or. Richardson throughout the whole he said. Or. Richardson and the department of National de Fence wanted that plane pretty desperately and it is strange that or. Goyer would be Able to stand up Day after Day and swear that he was not Given any information about the verbal con or. Goyer has also told the commons that he did not know the government would be required to pay Mil lion in interest charges when he Tel exed Lockheed dec. 2 to say the government would buy the planes. Nor did he know the defence department could not afford to make initial payments for the planes. That go ahead Cost the government is 6 million in pen Alty payments when the order was cancelled. This is very strange and very difficult to believe but if or. Richardson managed it then he s been very devious and Clever about it or. Mckinnon said. Or. Mckinnon added that anyone accused by or. Goyer of misleading him should give their account of what has happened. I d like to see them have an Opportunity to state their Side of the he said. Or. Goyer has accused Larry Stopforth a Public ser vant in his department who was involved in the Lockheed transaction of not informing him about the verbal agree ment the defence department made with Lockheed. Meanwhile or. Mckinnon said he would not demand or. Goyer s resignation until it was Clear whether he gave Lockheed the dec. 2 go ahead because of his own ineptness or mismanagement or hard Shell attitude that he has to Ward his subordinates who Don t go to him with the info m a t i o n they should or whether or. Richardson bamboozled him. Tuomo Shonto . When we Book table. Hot Coffee and warm smiles go along with a carefully chosen and prepared meal. We Vega More Man just the ticket for you our reserved n computer can do More than just get you a seat on the right flight. We can also arrange for your car rental and hotel reservations. One Call does it All. We Mak Effle going easy for you. More than of us work to make your flight As enjoyable As possible. And maintain one of the Best on time records in the world. Depart . Non Stop . Non Stop . A Iii non Stop . Non Stop . Non Stop arrive . . . 1o-.55 . Ask an air Canada travel agent for details. Or Call us. We be got a lot going for you. 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