Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 3, 1981, Winnipeg, Manitoba 4 Winnipeg free press wednesday june 3, 1981 gasoline Price up 9 cents continued from Page 1 Canada had been a net importer of about barrels a Day and Alberta to protest Price and taxation measures announced in the National Energy pro Gram last fall reduced production by barrels a Day in two stages. The Canadian Dollar is hovering be tween 82 and 83 cents compared with the . Dollar and Ottawa had figured on increased import costs of Mil lion this year on a Canadian Dollar valued at about 88 cents ., Lalonde said yesterday. Service station operators in Winnipeg said last night they expected pump prices to go up today. The actual tax increases effective Midnight last night total 1.6 cents a litre or about 7.2 cents a gallon at the wholesale level. But Federal officials said this will result in retail Price increases of about two cents a litre on items such As gasoline and diesel fuel because of Federal and provincial sales taxes. If a full two cents per litre is added regular Gas in Winnipeg will retail for 36.4 cents per litre about per gallon Premium unleaded will move to about 39 cents per litre per gallon. Sheldon Bowles president of Domo Gas corp. Ltd., said prices would Likely go up Early today but generally inde Pendents wait for the majors to come up before setting Stanley Donily area manager of Texaco Canada inc., said he expected to hear today of any Price increases his company planned and when. In the commons yesterday progressive conservative Energy critic Michael Wilson called the Federal Levy a classical Ripoff. Wilson my for the Toronto Riding of Etobicoke Centre said it would add up to billion a year to Federal government Revenue. Ian Waddell new democratic party Energy critic said canadians Are being Nickle and died to death. It is a political move More than anything designed to continue the heat on said Waddell my for Vancouver King Sway. Alberta Energy minister Merv Leitch rejected blame for the increase saying it was Ottawa s fault. They made the Choice by unilaterally imposing a Price which they knew we would regard As totally Leitch said. They knew we would reduce Lalonde told reporters that about half the increase could be blamed on Alberta s decision monday to go ahead with its second production Cut of barrels a Day. Atten Tion a Young guard at the famous Tivoli Copenhagen Denmark gets a big kiss from Lily Schreyer wife of . De Schreyer yesterday. The schreyers Are touring Scandinavia. Immunity Grant to lieutenant irks officials in . Justice department Washington a furious that the . Air Force granted some kind of immunity top Justice department officials say it May take a judge to sort out whether they can prosecute a missile crewman accused of unauthorized contacts with the soviet embassy. Justice department sources said it would a careful analysis of the air Force s promises and might ultimately be up to a Federal judge to decide whether the government can try 2nd Lieut. Christopher Cooke in a civilian court. Asked about the air Force s unilateral decision to Grant immunity one jus Tice department source said it was extremely ill advised. Basically they screwed up the Cooke 25, of Richmond va., has been in pretrial confinement at Mccon Nell air Force base near Wichita kan., since being charged Friday with three counts of violating an air Force regulation against unauthorized con tact with representatives of a communist country. Specifically Cooke is charged with visiting the soviet embassy Here three times Between de Cember 1980, and May 1981. The Justice department has said it is investigating to see whether any civil Ian criminal charges including espionage should be brought against Cooke. If charged and convicted of espionage Cooke could face up to life in prison. Justice department sources who Dis cussed the Case on the condition they not be identified gave this account the original evidence about Cooke s visits was developed by the Fri which is known to maintain constant surveil Lance of the soviet embassy the Fri referred the matter to the air Force after it determined in March that it had evidence of an air Force officer visit ing the embassy. Handled by air Force from that Point Forward the Case was handled by the air Force including an interview with Cooke in May. Concerned about the Security of its Titan intercontinental ballistic mis Siles the air Force at some Point offered Cooke immunity in return for a full account of what he had done. Department officials explained that Federal Law authorizes the attorney general to make Grants of immunity. The attorney general can and has Dele gated that authority to the assistant attorney general in charge of the criminal division. However Law provides that immunity can extend Only to preventing the government from using any state ments by a defendant against him or to develop a Case against him. The defendant can be prosecuted on the basis of evidence obtained independently. The department officials explained however that a prosecutor can make a Promise of immunity without authorization and that such a Romise May be enforceable in court. How a judge would View such a Promise depends on the scope of the authority the extent of the immunity promised the co operation of the defendant and other fac tors they said. One source said the Justice depart ment would have followed a procedure of soliciting the defendant s cooperation testing his information against other sources and possibly with lie detectors and promising Only to let a nuclear ship off japanese coast in mid-1960s by Rudy Maxa the Washington Post Washington a . Navy ship apparently carrying nuclear weapons remained off the coast of Japan into the mid-1960s, at least three years after senior officials in the Kennedy administration have said they understood the Pentagon had ordered it to stay Clear of japanese territory. The san Joaquin county an list Landing ship remained 90 to 180 metres offshore from the Marine air 1 base at Iwakuni through 1964 and per haps later according to two offi cers who were stationed on the ship. The presence of a vessel with a cargo of nuclear weapons violated a Mutual Security treaty that forbade the United states to deploy nuclear weapons in japanese territory. Could endanger government a political furore in Japan that could endanger the government of prime minister Zenko Szuki was created last month when former . Ambassador to Japan Edwin 0. Reischauer revealed that -. Aircraft carriers and other warships had nuclear weapons aboard Over a 20-year period when they entered japanese ports for routine rest and recreation and other Brief Stop overs. Two weeks ago the Washington Post disclosed the permanent stationing of the san Joaquin county off Iwakuni starting no later than 1959. This was the first report that nuclear weapons were kept constantly in japanese territory. At the time two former senior officials in the Kennedy administration Paul h. Nitze who was assistant Secretary of defence for International Security affairs and. U. Alexis Johnson who was Deputy undersecretary of state for political affairs confirmed that the list had been anchored off Iwakuni into 1961, As asserted in a memo written 10 years later by Daniel Ellsberg a former department of de Fence specialist on nuclear command and control systems. Ordered to remain but both men recalled to a reporter that when informed in 1961 of the ship s assignment which reportedly had been concealed from the administration the Pentagon ordered it to remain in Okin Awa where it was undergoing repairs. A different account was provided by Michael o Harro who was the communications officer aboard the san Joaquin county until november 1963, two years after the ship had supposedly been ordered away from Japan. Except for three months in Guam for repairs and a Brief Stop at Okinawa the ship was stationed at Iwakuni during his 11-month tour of duty o Harro said. Copies of his orders confirm his assignment to the san Joaquin county and its presence in Iwakuni. O Harro said he will confirm nor deny the existence of nuclear weapons aboard the ship because of a secrecy pledge he signed while in the Navy. But his orders authenticate his top secret clearance. They would not have any top secret clearance for a Normal communications o Harro said. He remembered that he and his colleagues sometimes made off duty visits to near by Hiroshima. Millions spent with no Okay continued from Page 1 in theory a department head who finds he is close to overspending a particular account must ask his com missioner for an appropriation of funds. Over expenditures in excess of must be approved by the finance committee. Marks said the million spent by municipal department Heads was not first approved by a commissioner or the finance committee. In most in stances the Money had already been spent before the question of appropriation reaches the committee level he said. The main reason for unauthorized overspending said Marks has to do with the City s accounting system. Because computer printouts of expenditures Are not available for three weeks after the end of the month departments Heads have no Way of knowing whether their Purchase requisitions will exceed the allotted budget. The new financial reporting system currently being considered by the City would help control Over expenditures by shortening the time it takes to compare Purchase orders against budget Avail ability he said. About million of the million in unauthorized Over expenditures disbursed in 1980 came from the general Revenue fund which is financed Pri Marily by taxation Revenue while million by the utilities. Most of the general Revenue funds Over expenditures were debt charges due to an increase in the interest rate on funds borrowed by the City. Al though the 1980 budget had allowed million for this purpose million had to be spent. Plan puts up million for jobs in Core area judge know he had been co operative. One Justice department source said the air Force now wants to prosecute him because they claim he did t Tell the whole truth but How can you Tell that if you Grant him immunity one Justice source said that the air. Force made its immunity decision without consulting anyone at the jus Tice department. If they be got a question about tanks they ask the army. If they be got a question about ships they ask the Navy. Why when they a have a question about immunity did t they ask the Justice depart Cooke second in command Cooke was second in command of a four person missile Crew which had Access to the launching codes for Titan ii intercontinental ballistic mis Siles in silos near Mcconnell air Force base. Air Force officials said the launching codes were changed after Cooke s arrest but added that frequently Are changed routinely. Continued from Page 1 streets such As King Street Provencher Boulevard Selkirk Avenue and of Bome Street. D million has been set aside for Community improvement in 16 neighbourhoods in North Central Winnipeg North Winnipeg Elmwood fort Rouge West end Winnipeg and Wolseley. Federal immigration and manpower minister Lloyd Axworthy Manitoba s Urban affairs minister Gerry Mercier and mayor Bill Norrie used the Occa Sion of this morning s announcement to express Hope that the spending would revitalize the inner City area. It will Aid the social and economic development of the City for Many years to said Axworthy adding that it provided a productive Way of address ing the fact of poverty in the inner representatives of the three Levels of government signed a memorandum of agreement on the initiative last sept. 22. Each government agreed to contrib Ute million to the project. The three government representatives made up area initiatives development team which heard about 75 submissions and briefs during one and half Days of Public hearings in late january. During the Public hearings the policy team heard proposals from a wide variety of business cultural and social Agency groups. Ideas for spending the Money ranged from instituting a sex education program in the area to tear ing Down buildings on North Portage Avenue Between Donald and Colony streets to create a Park. The Public meetings were followed by private sessions Between the three to decide on How the Money was to be spent. Last night Norrie Mercier and a worthy met for about three hours in a fort Garry hotel suite making changes and putting the finishing Tou Ches on their plan. The announcement originally set for the beginning of april was held up because of financing problems. Officials were tight lipped about any of the proposals before today for fear that speculators might make Quick profits by buying up land and then re Selling it for use in redevelopment projects. Munro denies profit from knowing about takeover by Michael Doyle Winnipeg free press Ottawa Indian affairs minister John Munro yesterday denied that he profited from inside knowledge of the Jan. 30 takeover of Petrosina by the Crown owned Oil company Petro Canada. Munro was defended in the commons yesterday by prime minister Trudeau who said he had received assurances that Munro was not involved. Munro was named in a Toronto Sun report yesterday which said various liberals profited from inside knowledge of the takeover. Consumer affairs minister Andre Ouellet said yesterday a joint investigation into the allegations is being undertaken by his department the on Tario securities commission and the commission Des valuers mob Liers do Quebec. He said the results would be made Public. The progressive conservatives demanded a full scale parliamentary in Quiry. Opposition Leader Joe Clark said it is Trudeau s duty to ensure that no other Cabinet ministers or officials profited from inside knowledge. The newspaper said two unnamed Federal Cabinet ministers bought shares and shares of Petrosina respectively before the takeover. It also says a company connected with Maurice Strong the Federal government s chief negotiator in the take Over made at least million when the government purchased Petrosina at a share. Recently made director Strong was recently made a director of the Canada development corp. And had been touted As a potential chair Man by finance minister Allan Mac Eachen. Strong also got in government commissions for arranging the takeover. The article says an unnamed Liberal senator and his wife were listed As having bought 500 shares in Petrosina and says that the wife of a Quebec supreme court Justice was listed As owning shares Worth it says that Wallace Mccain of Florenceville n.b., is listed As having bought shares. His brother Harri son Mccain was appointed a director of Petrovan in March. It named Liberal William Sobey pres ident of the Atlantic provinces super Market Chain of the same name As having bought shares and another through a Sobey affiliate. The report says Munro is listed As a director of Molly investments which purchased Petrosina shares on sept. 15. It says another Molly director was Munro s former Law partner Jack Pelech whose sister Dorothy is the wife of Owen Mullin a Mississauga ont., businessman who was awarded a million contract to manufacture new gasoline station signs for Petro Canada. The Molly shares were purchased at and sold at the takeover Price of resulting in a profit. Munro Rose on a question of privilege and told the commons he had never heard of the company until yesterday morning when he read about it in the paper. Munro challenged Clark to put his own integrity on the line by making a charge in the House. Munro said he had no dealings in Petrosina Stock buying it or Selling it or talking about it. Trudeau told Clark he had not asked other Cabinet ministers whether they were involved. He said he also had t asked them whether they d stopped beating their wives yet and then asked Clark if he d stopped beating his. Markets closed Trudeau said that the Cabinet was not told about the takeover until after Trad ing had ceased at 5 . On Jan. 29. The markets were closed until feb. 3, he said. And the timing made a Prima Facie Case to show there was no profiteering. Clark said he wanted to know which members of the Cabinet had prior knowledge because they had served on various Cabinet committees and when they found out about the pending take Clark said the conservatives want a parliamentary inquiry rather than one by Ouellet s department because re sults of the latter can be withheld by the government. Ouellet said later that he will make details of his investigation Public. Between the securities investigations and Ouellet s investigations the facts would be found out Trudeau said. Trudeau repeatedly referred to the the newspaper As garbage saying at one Point that he read few newspapers and in particular he did not read news5 papers that print garbage. Clark said he accepted Munro s Deni Al of involvement and indicated that Munro s Law firm May have automatically listed him As a director in Molly. But he said that does not absolve the prime minister of responsibility to ensure that All his Cabinet ministers Are free from involvement. Shares in Petrosina went from to a traditional level of in the months preceding the Jan. 30 takeover at Munro denies involvement ;