Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 8, 1976, Winnipeg, Manitoba For St Rittia. Junt Washington presses fraud Case is. Kasser by pall wh1telaw staff correspondent Washington the United states government has filed a lengthy court Brief in support of its bid to seize the a s s e t s of or. Alexander Kasser. The alleged master mind of the i multimillion Lollar Churchill Forest Indus tries cf1 fraud in Mani Toba. The Brief filed with a fed eral court of appeals in pin Ladelphia contends that a . Circuit court dismissal of fraud charges against the financier and eight co defendants should be reversed be cause a judge misinterpreted key provisions of american securities Laws. The document states that the lower court View reflects a misunderstanding of what the anti fraud provisions pro the . Securities and Exchange commission acting in co operation with the Canadian government Al Leges that or. Kasser and his business associates fraudulently obtained s46 million in subsidies from the Manitoba government. The funds which were to have been used to build a pulp Mill at the Pas Man., were provided by the Mani Toba development fund a provincial government Agency. 1 n dismissing the Sec c h a r g e. S., the lower court ruled last year that it lacked jurisdiction in the Case. Judge Lawrence Whipple of the Federal District court in Newark -n.j. Stated that the cf1 scheme was an essentially foreign transaction not covered by . Law. The judge described activities alleged to have taken place in the . As being to the fraud it self which the court viewed As having been consummated in Canada. In its new Brief the Sec states to h e District court apparently viewed the alleged fraud As occurring solely in Canada where the defendants received Money from their victim the Manitoba development fund. But a fraud also occurs at the place where the misrepresentation which entices the victim to part with his Money is the document lists meet Ings Between officials of the Mfd and cf1 figures that took place in the . In Addi Tion it outlines Telephone Calls letters and other Busi Ness transactions in connection with the alleged fraud that originated in the . Reversal of the lower court decision would permit the . Government to launch Legal proceedings to seize assets of or. Kasser and his co defendants in the . As Well As Austria where or. Kasser is currently living. Or. Kasser resided in new Jersey at the time of the Cal transactions. The Canadian government is proceeding with austrian authorities in an Effort to extradite or. Kasser to face trial in Manitoba. The Sec announced its in Tention to take the Case against or. Kasser and the eight co defendants to the . Court of appeals last february. Defence lawyers have until july to i e briefs in re spouse to the new Sec charges. The Appeal is not expected to be heard by the court until this fall according to Sec and defence lawyers. Million customs Centre proposed for City Airport syrians near Beirut fighting heavier Nicosia. Cyprus a i Beirut radio reported hard fighting East and South of Beirut today Between syrian troops and lebanese and palestinian forces despite re ports of a ceasefire. Communications with the lebanese capital were Cut be cause Power lines were knocked out by rocket and mortar fire. But the leftist moslem controlling Beirut radio said their forces were holding the syrians at sofar. 36 Miles East of the lebanese capital for the second Day. A broadcast said that the lebanese christians in their enclave to the Cortlin of the Battle zone opened up with their artillery on the leftist lebanese and palestinians to support the syrians. The christians welcomed the syrian intervention be cause syrian president Hafez Assad is trying to establish a Christian moslem balance of Power in Lebanon and to pre vent a Radical leftist regime on his flank. Beirut radio said the leftist forces knocked out three syrian tanks at sofar today. The moslem broadcast said other palestinian and leftist lebanese forces were Block ing a second syrian column trying to Advance from the Mountain town of Mezzine. 10 Miles above Sidon. The port City 25 Miles South of Beirut. Fighting was going on out Side Sidon. But the lebanese and palestinian forces were holding fast the broadcast said. It also said that besieged leftists in an air base in Northern Lebanon were re sisting a syrian Force. A station in the Christian area reported fighting be tween lebanese Christian and moslem forces on All it said Beirut was without any electric Power. T h e syrian government radio continued to broadcast the report that the syrians and their lebanese and palestinian foes agreed on a ceasefire that was to have taken effect monday night. Radio Damascus said nothing about fighting today. The Algiers office of Al Fatah. Yasser Arafat s pales Tine guerrilla organization also reported a ceasefire agreement. It said a commis Sion of syrians. Algerians and lebanese will be created to resolve the crisis caused by the invasion of Lebanon by 6.000 syrian troops in an at tempt to end the civil War be tween lebanese moslem and Christi ans. The Fatah office said the truce will be supervised by lebanese and algerians. This would be the first intervention of the algerians in the lebanese War. It appeared that their Aid was enlisted by Arafat who was in Algiers for a conference of non aligned countries last week when the syrian forces crossed the lebanese Border. The syrians in the first Day of their invasion took control of Eastern and Northern libation but stopped their for Ward units on the Damascus Beirut Highway at a Mountain pass 20 Miles East of the lebanese capital. Leftist Leban Ese moslem and palestinian guerrillas massed West of the pass to oppose their Advance. Bobby Hackett dead at 61 Chatham mass. A Robert Bobby Hackett 61, famous for melodic jazz improvisations on the Cornet died of a heart attack at his Home monday. In the big band Era Hac Kett appeared with Benny Goodman Louis Armstrong Glen Grey and Paul who trnian. He played As a guest at Goodman s famous 1939 j a z z concert in Carnegie Hall occasionally led his own groups and performed As 2 free Lance artist. Since the temporary Centre was set up at Winnipeg last year Only three airlines have used the facility. Air Canada with flights to san Francisco and new York from Here has t used the Centre because of a belief it was inconvenient to Passen Gers arriving Here for . Destinations who would have to have baggage unloaded and reloaded. It has continued to have passengers cleared at Desti nation. Or. Bell takes Over air ports and properties in the Central Canada Region As transport Canada Heads into an expansion year after a period of a freeze on Federal dollars for expansion of air ports and facilities. He Heads a staff of 350 and an Airport and maintenance budget of about million. Two of the priorities ire overlaying of a runway at Churchill and i close look continued at new air terminal facilities for the port City. There will also be improvement of the main runway at Thunder Bay Airport. Or. Bell said. We will want to have a serious look at Airport land use on a Long term basis. There will be More emphasis on the role of the Airport i a Community or a regional area or. Bell said. Transport Canada already has the Winnipeg area air ports systems study in Mani Toba taking a Reading of Long term aviation needs. It also has a regional com Mittee determining immedi ate and Short term needs such As parking at Winnipeg International. A c c a the whole country is starting to look North at Mineral exploration and development of Energy resources a new Northern Airstrip policy has been developed that is definitive and provides a facility he said. The strip program ranges from a runway for a a class installation for a class and 5.000-f.cet or More for an a class Aero drome. The strip would have navigational aids and beacons and terminal operations la Wilities that would depend on the use of the Airport. Proposals for an Airstrip and facilities can exceed the Standard but a Case has to be made for exceptions either for a lower or higher Stan the transport spokes Man Siad. Or. Bell said a separate program has been set up with the provincial govern ment to improve Hie five in Hind airstrips which were closed to scheduled air Carri ers last year because icy were not licenced As land airports. Some have been opened Anil work is Joina ahead the others he said Rev. Allan lome Mackay. Minister for 24 years of the Central Church in Hamilton. Ont., sunday accepted his election As Moderator of the presbyterian Church in Canada at the 102nd Gener Al Assembly in Arnprior ont. Or. Mackay 61, was elected at the Start of a five Day annual Assembly. Arab world on verge of falling to pieces changes advised in Pap test timing continued on no new angolan . Says Santiago Chile a the United slates maintains to military capacity to protect itself and to protect its friends and will never accept a repetition of the cuban soviet intervention in an Gola. State Secretary Henry Kissinger has told the West e r n hemisphere s foreign ministers. Kissinger arrived from Bolivia on monday afternoon and went immediately to n private session of the annual general Assembly of the organization of american states which last Fri Day. The Secretary said smaller countries who want to remain free need not worry about their future. Will never accept an other Angola he told the foreign ministers re Ferring to the cuban troops and soviet arms that helped a marxist angolan faction de feat other angolan factious that were aided by the United states. South Africa and Zaire. An expeditionary Force intervened there in the civil said Kissinger. This adventure we will not accept again. The United Stales docs not have any National dispute with Cuba but it does not accept that a Large country like h s i a can use regional troops while it talks about peaceful coexist i aged f r u m is to in. The report advises a program of tests one year apart for the first two. Then at three year intervals. I the Pap tem is named alter or. N. I Iii a greek american physician who developed it in Winnipeg about after age Pup smears should to taken every five years until provided All earlier smears were nor Mal the report says. It also makes Riccomi Icin Fia Lions Lor More efficient la b o r a 1 o r y processing of smears to make sure by in pathologic expertise is Rea Dily available and i followup effective. Spacing Pap smears Over longer periods would in it self be revolutionary if the Canadian medical Community and the Public accepts the r e a s o n i n g of the Walton group. Up to now. Canadian women particularly during child bearing years have been urged by governments medical experts Siul their associations to have Pip tests annually. Or. Gillies said 3i.5uo Pap smears were performed in Manitoba during they revealed invasive dangerous if untreated i cervical cancers and 220 non invasive iou per cent curable if detected in the pre invasive in tests were c a r r i e d out on Manitoba w o it e n Kitty six invasive and 201 non invasive cancers were picked up. To said. Only half the invasive cer v i c i i cancers Are curable. Non invasive ran cars can be treated through minor sur Gery not Hospital admission. Or. Gillies said the number of invasive cancers picked up each year is expected to continue to drop because of the work we do in this prov Ince in finding cancers in their pre invasive stage and dealing with them at that one of the major difficulties in any new approach to cervical cancer detection in Caria in would be keeping in touch with women who might i Orect their three yearly test was due. Ii o w e v e r even though keeping in touch might involve additional clerical time and mailing costs consider Able economies could still be made by reshaping cytology programs across Canada. Or. Gillies said. Anwar Sadat and the pales Tine liberation organization this has occurred As it be came Clear to the palestinians that their political and military existence was threatened. The Plo was dragged reluctantly into the lebanese civil War. And now Plo rooms have joined lebanese leftists in swearing to fight to the last drop of blood against any syrian at capt at a military takeover. Plo chief Yasser Arafat recently was refused entry into Syria where his head quarters Are ostensibly located. As a result the palestinians have responded to e g y p t i a n overtures. The Sinai agreement which less than a year ago the palestinians joined Pic syrians in denouncing As a sellout of Hie Arab cause has for the moment been forgotten. Both the syrian jordanian and the palestinian egyptian alliances have so Upsel the continued traditional balance of rival Arab world Camps As to cause grave concern and confusion in the Arab world. It is such that an Appeal for an Arab league foreign ministers meeting on the lebanese crisis has so far received Only five endorse ments one third the Neces sary number for an urgent meeting. It. Has led to a situation this weekend in which two rival missions saudi Ara Bia on Kuwait have turned up in Damascus Bent on re solving the lebanese crisis. And. Following a Confer ence of Arab radicals in Libya. Libyan prime min ister Abdel Salam Jal Luud and the algerian minister of education were dispatched to 1 a m a s c to bring the syrians Back into the Radical Camp and presumably to persuade Assad to halt his invasion of Lebanon. The radicals include Iraq which attended the libyan conference but did not Send a representative to Damascus. Syrian and iraqi relations arc almost As bad As Damas Cus ties with Cairo. For their part the syrians Are said to be unhappy in the Cross fire from rival Arao Camps. But Assad is also said to be determined to push through in Lebanon restoring peace by military Force if necessary and giving his Choice As the new president of Lebanon Elias Sarkis. A Good Start in re pairing the damages of the civil War. The syrians concern to keep the Mideast stabilized As much As possible was shown by their renewal of the . Mandate in the Golan Heights last month. Unlike the previous renewal. They made no conditions this time and agreed a few Days before he deadline expired. ., Canada support loan to Rescue British Pound safety certificates proposed time in jail wanted for private vehicle sales for Trade misdeed the new legislation lie. Said provided for a maximum Fine of s500 for an m div dual or s2.000 for a dealer cd Igil soiling Lou outside the legislature or. Burtniak said one of the major reasons for the legis lation was a traffic Accident last year killing five Juve Niles near Dauphin. One of the juveniles a 15 year old boy had bought a car from a Dauphin car dealer despite not having a Driver s licence. The five were killed in a police Chase. M r. Burtniak said the dealer sold the vehicle de Spile a plea from Llic 15-year-, old s Mother. Under existing continued Laws nothing could be done about it he said. We know this kind of thing goes on All the time you just wave a few hundreds Bucks in front of a dealer s eyes. This won t Cut it out completely but it should or. Burtniak told the legis lature he expected a new regulation w o u 1 d save at least one life every year. The highways minister said he doubted the Cabinet would consider reducing Speed limits for some time but wanted the authority to do so when the Lime was right. A switch to the metric sys tem possibly in iwo years will mean the switch to met Ric Speed signs on Manitoba highways. This he said would be the Lime to lower the Speed limit. M r. Burtniak said Pic truck Tarpaulin legislation resulted from Many complaints about serious accidents caused by debris falling from trucks. In the debate on the High Way department spending estimates last month Philip Petursson ton pleaded for action be fore someone was killed on the Highway. Continued Sion or modification to a con tract or divestment of illegal profits. The report which suggests changes to create an Ideal consumer protect ton 1 a a says the idea of unfairness should also be introduced into advertising regulations. This could be used to prohibit ads thai exploit i lie susceptibility of children. I says a court or a quasi judicial commission could be used to apply non criminal sanctions i i k e cease and desist. Orders or i incs Loac company orders. The Uff eel of its recommendations the report notes would be to merge the traditional criminal Calmi Nistra i. I v c and civil sanctions against misleading and unfair Trade practices into one sentencing procedure. Fines and jail terms would remain the major sanctions but in addition a court could also Issue a prohibition order against continuing the Prat lice or an order to publish corrective advertising. Any breach of these orders would be a further criminal offence. Fund the if would have demanded increasingly slain genl British Economy Mea sures each time new funds were sought because Britain has already overdrawn its a Romalic credit facilities. Officials were reported convinced that any further collapse of Sterling coupled with outside pressure from the if would not Only have been humiliating for the Brit ish government but might Haye convinced prime min ister James Callaghan that an election was essential to restore Confidence. The Bank of England spent roughly million in May alone trying to Block Ster continued Ling s slide. But the weakness remained. Last wednesday the Pound dropped an additional three cents its worst fall so far this year to roughly sj.72. Britain s official reserves the main source of funds for supporting Sterling Rose last month by the equivalent of s575 million but Only because of a smog million if drawing and British nationalized industries and other Public Sec Tor borrowing abroad of s225 million. Meanwhile there is Little sign of new investment Bri Tain Despe rally needs to boost Long term survival. Industry s real capital spending fell by nearly one per cent in the first Quarter of this year t o m p a r e d with the same period in recession plagued 1975. Manufacturing invest ment is More than 12 per cent below last year s level. Many analysts however Are encouraged by agree ments Between government and labor unions restricting the size of wage increases. Sources say that although Britain s reserves at the end of May were s3.423 billion it has borrowed so heavily Over seas that the Bank of eng land would be hard pressed to raise More than billion in an emergency without outside help. Charities to reap Getty los Angeles a the will of billionaire oilman j. Paul Gelty who died in his sleep sunday at 83, will be filed in los Angeles in the next few Days a family spokesman says. It was also announced Mon Day that a memorial service for the late president of Getty Oil co. Will be held thursday in los Angeles with burial at. Nearby Glendale. 1 unlike fellow billionaire Howard Hughes Getty left a will that clearly maps out the disposition of his estate estimated Between billion and s4 billion the spokesman said. Charities will get the bulk of Getty s Fortune with Getty s survivors also sharing the estate. They arc his sons. .1. Ronald Getty j. Paul Getty jr., and Gordon Peter Gelty 16 grandchildren and one great grandchild. Though Getty called los Angeles his Home he ran his global Empire from his English estate where he died. He is said to have often commented that he would rather have been a Beach Comber than a billionaire and he owned a Seaside Man Sion in Malibu calif., also the site of the Getty museum. Canadian potato firms lose out in speculative trading the Washington Post Washington four Large Canadian potato dealers revealed last week they lost More than Mil lion in speculative trading that Lias become the subject of a Federal investigation of the new York mercantile Exchange. The dealers said they lost the Large amount be cause they had assumed the Price of Maine poll oct traded Al Lac Exchange would Rise sharply because of abnormally tight supplies and heavy potato exports abroad. Instead the Price of potatoes traded for delivery in May went from a High of a Hundred pounds last october to s8.70 a Hundred pounds May 7, the final Day for buying and Selling the 1975 crop. Officials of the commodity futures trading commis Sion which regulates United Stales commodity exchanges said an investigation launched two weeks ago would review All aspects of the trading including Possi ble efforts by both Sellers and buyers to manipulate hip. Prices. Heavy losses wait confirmed last week by Fanali an potato dealers Campbell Mclean of new Annan. . Barry Willis of Charlotle Iown. P.1c.i. And Lucien Larocque. Of Drummondville. Que. Or. Larocque said he had loss in october and the Oiler men said they had lost substantial sums which other sources said Wen several Hundred thousand dollars. A fourth dealer. Fenian a Gosselim of St. Romuaid. Quc., lost nearly is million in trading after february but was Able to More than offset the losses by profits prior to february an associate said. Experts in commodity trading said profits and losses of considerable magnitude Are common in the. In a usury but they added thai the Price swings of the May Maine potato contract this year were unprecedented. M loss a lot of Money. But. I did to lose it i Goi swindled out of said or. Mclean who rims a acre Polato farm and processing Plant. Or. Mclean said the businesses of some Small potato dealers on Prince Edward Island were in Jeo Pardy because of the losses icy sustained. He said ii had sent a letter to Richard 15. Levine. President of the new York mercantile , charging that hip. Trading had operated in a manner similar to Las or. Mclean said massive defaults in May by Somr Large Sellers on promises to deliver potatoes proved that these traders had oversold and in so doing has pushed prices Down to artificially Low Levels. May 25. Some Sellers apparently were unable to acquire enough Maine potatoes to make deliveries defaulted on their Commil Menis to ship j97 carloads Worth million. Or. Mclean asserted thai if inc Sellers had Fol Lowed the Normal Pic lick of cancelling these Commil Menis by bidding for offsetting amounts of potatoes at the Exchange before trading closed prices would have moved up sharply above the final figure of s8.70 a Hundred pounds. Without dreaming a1 All potatoes could have closed at s25 and icy certainly would have closed at si2 to because of the Strong he said. Barry Willis who. With his father runs a , potato business that exports to South America said we lost a lot of Money it won t or easy to recover Cash like Jack Richard simple. A potato magnate from Boise Idaho and p. J. Taggares of Othello washing Ion have been identified As two of the major Sellers now in default. William t. Bagley. Chairman of the trading com Mission said it feared powerful buyers and Sellers had been playing Chicken at the mercantile Exchange. He was not pleased with the Lack of action by the sex commission sources said one facet of the pending investigation would be possible deliberate overselling or Over buying on the final Clay of trading May 7. Such moves could have manipulated the prices icy said. Informed sources in new York and Washington said three brokerage houses handled trades for potato dealers who now arc in default. The firms were Idon Tiller As Clayton brokerage co. Of St. Louis inc., a subsidiary of the Swiss owned Gar nac Grain co., one. Of the world s major Grain Export houses Sci Hokl commodities inc. Of new York and Thomson and . I a ;