Winnipeg Free Press

Friday, May 17, 1985

Issue date: Friday, May 17, 1985
Pages available: 63
Previous edition: Thursday, May 16, 1985

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Winnipeg Free Press (Newspaper) - May 17, 1985, Winnipeg, Manitoba Winnipeg free press May 1985 Page y in focus Gorbachev alter soviet image by Flora Lewis new York titties London from the talk of loft Mikhail and Raisa Gorbachev Are going to give president and the great masters of some racy Competition if they arrive As expected in new York in the in word has filtered through from Moscow that the soviet Leader has a hankering to include a visit to the Reagan ranch at Santa which would turn the informal Summit into a Gran tour Gorbachev showed in his be Day speech in Moscow that he can be As Tough and aggressive As any of his Kremlin predecessors when it comes to denouncing the West and blaming it for All of the worlds present and past including hitlers but he and his wife also showed during their week in London last year that they Are susceptible to Western luxury and regard less of the Call for More austerity and discipline at Home in the soviet three anecdotes widely repeated Here among High officials and some people with Access to prime minis Ter Margaret thatchers office make the they Haven been directly so they cant be offered As assured but they do give the flavor still lingering after the Gorbachev enough people were in a position to know the de if not to acknowledge them to give the stories More weight than Idle passed up Marx the visit was in before Gorbachev became the top Leader in doubtless after he was sure of the one item on the program was a pilgrimage to the cemetery in Highgate where Karl Marx is the Gorba chess did not it was a blustery the word is that Gorba Chev told their escorts to Deposit the obligatory Wreath because she determined to see something else the Crown jewels in the Tower of toward the end of the after Thatcher had left for a visit to they suddenly ordered their motorcade to Stop at the blocked Entrance to Downing Gorba Chev said he wanted to see the prime ministers residence once he got out of the car and tried to argue his Way past the at first the guards sarcastically refused to believe who he but flus they accepted the the Gorbachev were Given another private look around the House to examine the the Best Story starts at the formal dinner that Thatcher gave for her soviet guests Early in the Gorbachev admired the Dia mond and Sapphire earrings that the prime minister was impatient with that kind of Small Thatcher accepted the compliment but Gorbachev insisted on knowing where they were the prime minister called Over her who had bought the jewels As an anniversary gift some years and asked him to Tell Gorbachev the name of the it was a couple of Days later the director of Cartier called Downing Street in some Gorba Chev and her cohorts were there demanding to see a pair of the same they were still in but he wanted to know if the prime minister would have any objection to showing them in the surprising Circum she Gorba Che bought the earrings and paid with an american credit evasive answer efforts to Check the Story Drew a at first Cartier was but after a number of people the store said it had reviewed its charge slips and found no record of a Purchase by Raisa the press office at Downing Street denied even hearing of the i dont even know if the prime minis Ter wore earrings the night of the a spokesman discretion was to be it Hast stopped continuing chuckles in Lon dons upper social the incidents dont Tell anything about Gorbachev policies and the positions he is Likely to take in a meeting with but they do give some clues to his personality and to his supreme Sel Confidence despite a minimum of Contact with the Thatcher has said she was charmed by instead of sticking rigidly to Reading prepared papers during their official talks in the usual Kremlin Gorbachev spoke to her from Brief notes and responded to this is a new kind of Kremlin neither wooden like the three of recent nor impetuously earthy like Nikita he is certainly but out of the he can Deal with West Ern despite the profound Dif Ference in ideas and it will take some adjustment by Ameri once he appears on the to recognize that looking and acting familiar Doest mean think ing on the same Raisa and Mikhail Gorbachev like Western Western premiers from Devine and Pawley find common ground on free Trade Pawley supports free Trade by Fred Cleverley Winnipeg free press Grande by passing their own the four Western premiers produced some remarkable agree ments this none was More remarkable than Premier Howard Hawleys newly discovered support for comprehensive free Trade be tween Canada and the this year marked the first time since the Early meetings of the four premiers in the 1970s that most discussions took place among Only the four with staff called in to get Manitoba support for free the other three pre Miers changed the name of their proposal from free Trade to a com Mon Market and included a provision where jobs Are threatened by such a new trading provisions for an extensive period of adjust ment will have to be made for particular sectors and those adversely apart from these the communique from the four premiers was essentially that put Forward by Al Bertas Premier Peter Lougheed before the meeting preferences As the meeting opened Pawley was restating his prefer ence for Freer and a Sec Torby sector accommodation with the United the latter suggestion was described by Lougheed As an attempt to take the strawberries out of the when the meetings ended Pawley was saying things that sounded quite what was important to he told the closing press was that some existing jobs could be he said that the suggestion of provincial involve ment in consultations toward free Trade could be beneficial to Mani in for of where there have been some the pulp and paper other agricultural products important from the Point of View of the Premier said he could support free As Long As we preserve existing through a program of Transi Tion and and at the same time obtain a guarantee to an a Cess to future the strongest proponent of free Trade with the referred to Manitoba initial reluctance in these words weve re and Premier Pawley and i have discussed it in Regina and Here that there is a manufacturing component in Manitoba particularly in terms of Tex and in some degree in and it is very evident that he would want to have the statement that is Here in the com Munique today which deals with an extensive period of adjustment that a very reasonable i feel very pleased that the Western premiers have come through today with a statement of the nature that we obvious it was obvious from the Start of the Western premiers conference that the Only obstacle to a unanimous vote on support for free Trade with the would come from British columbian Bill Bennett was described As being ahead of Lougheed on the and described the communique As a positive step in joining together in a formalized Way what is a natural common Market which is Canada and the weve had a Good experience in watching the european common Market to allay some of the fears people might express if this was put Forward in another Saskatchewan Grant Devine was on Side from the the is under increased pressure to move toward protect if they we dont get the new we even lose what we that is an extremely important Point for everyone in the coun there is too much at stake just to maintain the status Pawley was questioned repeatedly about his pressed for details on his condition for support he said first the length of the transition period would have to be carefully worked there is need for careful there Are some parts of the textile Indus try now that would not be worried about this particular approach we have Given support to there Are other parts that would be affected adversely and there would have to be a period of time in which there would be put into operation government programs in order to ensure that those those would receive the support that they ought insofar As col i think that there would be support for insofar As my party i think it would depend a great Deal on the Circum stances in each individual Juristic i would sense that there would be subject to the conditions that would be at there was Only passing comment on the reaction in Eastern Canada to the proposal for a free Trade common Market with the pre Mier Bennett said the weak and protected industries of the East need the new positive agreement More than do the new industries that will build on the strengths of the this is a positive propos Al for All parts of the Lougheed put it More he said weve reached a Crossroads As a we have lived for decades on the basis of coasting along without having to make Tough policy we now have to make one i think the Canadian people Are if the leadership is pre pared to make the let us exclude All of the automobile it already has its free Trade then there is the balance of the manufacturing we have just had the Canadian chamber of Commerce support the concept of free i think that the Branch Plant Economy of Central Canada will survive with very Little adjust the Resolution that was adopted by the four Western premiers leaves two Pawley will have to convince his caucus that the restrictions he insisted on within the com Munique will make the Overall of that of free Trade with the not Only acceptable but Desir then there will be the question of bringing Eastern Canada on no matter How strongly the Federal government feels about improving its relationships with its Southern it will meet opposition from Ontario and there Are two theories in this the first is that no decision can be made in this matter while the provincial government of que Bec feels threatened and while there is no Clear political leadership in the other theory is that the Best time to strike a free Trade Deal with the or a common to use the Western premiers is while there is political unrest in the two Eastern provinces most Likely to object to such an the Ontario situation is unlikely to produce a Premier who will stand Toet Otoe with Lougheed Over free Trade the Way Bill Davis did on forcing a Federal election in which the Winner was just As much the conservative govern ment of Ontario As it was the Federal Liberal slam shut Lougheed says his window of Opportunity for a free Trade agree ment Between Canada and the United states will slam shut next when the 1985 balance of Trade figures in the become before that time the Western premiers will have an Opportunity pitch their stand on free Trade first at the meeting of Canadian premiers in newfound land in August and then at the next Federal provincial conference scheduled for this in pulling Manitoba on the three conservative premiers in Western Canada classifying British columbian Bill Bennett As a conservative staked out a position that three of them firmly believe in and the fourth has been convinced to agree their next targets Are Ontario and government insurance costs some people More Public automobile insurance is As popular in British Columbia As it is in there is an economics professor at Simon Fraser University who has written a Booklet suggesting that the popularity exists because people dont know How much Public insurance really his analysis of the insurance corporation of British Columbia argues that Public insurance costs much More for the mature and for anyone who drives an average or Small sized older Herbert Grubel says the real beneficiaries of Public insurance Are the oddly those Rich enough to drive Lin coins and his Booklet was published by the Fraser this Institute is famous for its righting the arguments advanced concerning the hidden costs of Public monopoly automobile insurance Are neither left nor they Are some of the Basic criticisms apply to All government monopoly Grubel does not argue the motives behind Public governments that adopt such schemes do so in order to raise the welfare of the general they believe that monopolies generate Large Sav create employment at the same administer a More humane the he bring less recognizable Gru Fred Cleverley Dency of people in private business to work harder and More efficiently than their counterparts in the Public private sector managers must manage or lose their in the Public Grubel there is no Bottom As an he offers the no extinct loan Divi Sion once operated by which was created As an assistance to those poor credit risks who were unable to finance private the defaults and collection prob lems were so severe that i Csc was forced to terminate the Grubel says this was indicative of the kind of expensive activities into which Public monopolies can and Are often pushed in order to make them Exten Sions of the ministry of there is the Cost of which is the Rule in most Crown Grubel suggests that and monopoly Crown corporations offer the greatest scope for Union because any gains of higher wages and any easing of work rules much of Grobels criticism of i Csc is based on the marginal financial operation of the such criticism cannot apply where the Manitoba Public insurance system is racking up Money at a rate should it be duplicated by a private would result in an instant attack by the present other criticisms apply equally in Manitoba As in British one is the High were being charged As much As 23 per cent prone As Grubel the Public More for insurance in than they were in monopoly system provides substantial Bene at the same time Vancouver ites fits to Young Drivers that private Industry Able to afford Mercedes and Cadillac Are would he says that these with saving up to 27 per cent through Public Accident frequency rates double that of older rather than having to Deal with Are often priced off the Road by the private private with a resulting saving in Grubel says the rate Structure is quite lives and property by forcing older the monopoly was created by a Drivers to pay More than they Public government with Strong socialist and Egal insurance encourages More Young people on tarian this Peoples monopoly to the and Shields them from the premiums As a matter of to charges relatively More to insure Small and consequences of the accidents they Are in people who have fewer in older old cars than it does for new and expensive solved cars that Cost less to so that the cars As compared with the Premium Struc these Are the strongest arguments in favor wealthy with High Cost and the Ture of the competitive private in a of allowing Competition Back into the Auto with High Accident pay in British Columbia the people with Mobile insurance it would Force the comparing Toronto and Gruthie Low priced cars subsidize those with High Zwic monopolies to charge according to Bel discovered that while i Csc claims to priced risk exposure and would Benefit those on the have some of the lowest premiums in manathis same situation exists in so lower end of the income scale who have to Drivers with cars eight to ten years old does the subsidization of Accident drive older simply raise since governments stand Bel says the continued popularity of i Csc ready to meet the Cost of any service to the insurance is a in of the Lack of seemingly without these Public awareness of these costs Are simply passed on to the captive there is the tendency Tor Public monopolies to result in excess Grubel if private workers and managers fail to offers As an example the regulated air fares satisfy their customers in those dimensions in which on the twice of service As Well As they lose those in the now deregulated u5 their jobs and Public sector then there is an the ten workers and managers do not face the same doonesbury by Harry Trudeau w want crazy crazy for ;