Tuesday, October 9,1979 The 
 Vol. 23; No. 195            
Citizen
20f Copy
Prince George. British Columbia
CLARK GOV'T OUTLINES 'GREATEST CHALLENGE'
Tories pledge to 'restore growth7
   OTTAWA (CPi - Prime Minister .Joe Clark s new Conservative government pledged today to give more power to the provinces, promote individual initiative and restore "growth, confidence and jobs to the Canadian economy.”
    In the policy-previewing speech from the throne, written by Clark and read by Gov.-Gen. Edward Schreyer at the openingof the31st Parliament. Clark promised “a new era in federal-provincial relations" - in which consultation would be the hallmark — and immediate action to deal with the troubled economy.
    "My ministers believe the greatest immediate challenge facing Canada today is to restore growth, confidence and jobs to the Canadian economy." said the throne speechopening the31st Parliament.
    Clark promised a five-part economic strategy that would include getting government spending under control, cooperation with labor and business to encourage growth of the private sector, more job-creation programs, improved regional transportation and actions to ensure the country is self-sufficient in energy by 1990.
    The speech was largely a repetition of promises made by Clark during the May 22 election campaign and pointed to about two dozen separate pieces of planned legislation. But a campaign promise of $2 billion in personal income-tax cuts was not mentioned.
    The speech was strong on the themes that Clark developed while in opposition — more rights for the provinces, more power for individual members of the Commons and greater public access to government information.
    "My ministers were given a mandate to change the direction of the government of Canada.” the speech said.
    "The basic purposes of that change will be to enhance the rights, freedoms and opportunities of individual Canadians, and re-establish the spirit of partnership and renewal which are fundamental to our federation.”
    The speech observed that the Clark government had already handed the provinces lotteries and that coastal provinces had been given jurisdiction over offshore resources.
     But the provinces will also be given a greater say in development of telecommunications policy and will take part with business and labor in a National Economic Development Conference at an unspecified date.
   Measures will stimulate energy development and distribution to attain energy self-sufficiency. But the government "accepts and respects provincial jurisdiction over resources as it accepts its own responsibility to ensure economic stability, competitive advantage and other national objectives.”
    As expected, the government promised freedom-of-information legislation permit public access to the vast storehouse of material within the federal bureaucracy. 1.imitations on release of secret material would be specific and any dispute over access would be "resolved independently of the government.”
 HIGHLIGHTS
  OTTAWA l CP l — Highlights of the speech from the throne opening the 31st Parliament:
  Bestoring growth, confidence and jobs to the economy is the new government's greatest challenge.
* * *
  New Commons committees will be set up to study special needs of the disabled, voluntary social aid groups, foreign ownership and cost overruns on federal projects.
r	* * *
  A joint Senate-Commons committee will study development of nuclear energy.
# * «
  A new era in federal-provincial relations will be based on consultation and co-operation
* * *
  Federal spending restraint will be policed by a new, coordinating ministry of state for social development and a commission of former cabinet ministers on internal parliamentary spending.
* * *
  Some Crown corporations will be sold and others will come under closer government control.
* « *
Legislation will encourage smaller businesses, private investment and jobs for youth, women and native Canadians. * * *
  Measures will be introduced to develop a merchant fleet, northern mining, tourism, fisheries and grain transportation.
Throne speech tackles disunity
   OTTAWA (CP) — The new Progressive Conservative government indicated in its first throne speech that it will attempt to overcome national disunity by encouraging cultural and regional diversity.
   Throughout the election campaign last spring. Prime Minister Clark said the nation was becoming fractured because previous Liberal administrations failed to respect local identities.
    “My ministers believe that the way to build a whole nation is to respect our individual parts and you will be invited to consider measures to build upon the diverse regional and cultural strengths of Canada,” said the throne speech read by Gov.Gen. Ed Schreyer.
Arms race
warning
 delivered
   MOSCOW (AP) - A joint Soviet-East German communique issued Monday said Western failure to respond to Soviet President Leonid Brezhnev’s newly-announced proposals for military cuts could plunge Europe into a new and dangerous round of the arms race.
    The official Soviet news agency Tass carried the communique after Brezhnev ended a four-day visit to East Germany on the 30th anniversary of the founding of the Communist state.
    In a speech Saturday in East Berlin, Brezhnev said the Soviet Union within a year would withdraw 20,000 Bed Army troops and 1,000 Soviet tanks from East German territory.
    He also said Moscow would be willing to reduce the number of Soviet medium-range missiles aimed at Western Europe if no more medium-range missiles were added to NATO’s nuclear arsenal.
    The speech did not pinpoint the exact measures the government will take to build upon diversity.
   However, the government announced that a special parliamentary committee will be formed to review Canadian cultural policy.
   “My government views the diversity of Canada as a great national asset and is determined to encourage, not limit, the development and expression of that diversity. That encouragement will be the beginning principle of the proposals by my ministers for consideration by the parliamentary committee reviewing cultural policies."
    No mention was made in the throne speech of revising the constitution — a pet project of the previous Liberal government. Nor was there any mention of the forthcoming referendum on Quebec sovereignty-association.
   The government said that during the last four months, "my ministers have made every effort to change the climate of federal-provincial relations which has prevailed in recent years.
    "To make federalism work, it is essential to change the attitudes of the past and the federal government must set the example.
    “Accordingly, it is a primary goal of my government to bring about a new era in federal-provincial relations. Consultation and co-operation will be the hallmarks of that new era.
    “The time has come to reconcile our differences.... It is by building for the future that we will renew Canadian federalism.”
    Clark’s theme of regional diversity also carries over into the economy.
   "My government will ask you to support programs which build upon the strengths of the regions of Canada.”
(featured inside)
'now hear this]
  The forecast for tonight calls for mainly cloudy skies with some clear periods. Wednesday’s outlook is fur mainly cloudy skies, with some sunny periods and isolated showers.
  The forecast high today was 14. the low 0. The high Monday was 9, the low 1 with no precipitation. On this date last year the high was 17, the low 7.
  The sunset today is at 6:30 p.m. Sunrise Wednesday is 7:28 a.m. and sunset. 6:28 p.m.
Detuils page 2
Jobless
tally
declines
TODAY
★
Got u news tip? (’all The Citizen’s 24-hour news line at 562-2441.
V__
  Henry Kissinger was at centre stage during the most tumultuous international political drama of our time. It wan a drama which he, in great part, authored and directed himself. Kissinger examine* that drama — and analyses its consequences for the future — in perhaps the single most important historic work of recent years. Page tt.
Horoscopes.......................31
International......................5
Morberg Column...............3
Movies...............................31
National..............................7
Hulling Stone...................33
Sports...........................13-15
Television.........................31
 OTTAWA (CP) - The number of those unable to find work fell for the sixth consecutive month in September to 719,000 from 772,000 in August.
  This reduced the seasonally-adjusted unemployment rate to a three-year low of 7.1 per cent, Statistics Canada reported today.
    The last time the seasonally-adjusted unemployement rate, the government’s usual indicator of the seriousness of unemployment, fell to 7.1 per cent was in September. 1976.
    Seasonal adjustment means the rate compensates for predictable seasonal fluctuations in the job situation such as the beginning of the school year or freeze-up.
     The number with jobs in September was 10.53 million com-paredwith 10.91 million in August . The drop reflected primarily the removal of student workers from the job force with the end of summer vacations.
   As always, regionally depressed creas and young jobseekers suffered most of the burden. The jobless rate in Newfoundland, for example, was 14.1 per cent — almost twice the national average.
     For those in the 15-to-24 age bracket, the unemployment rate was 12.3 per cent.
    Windsor, Ont., which has been the most obvious metropolitan trouble-spot in the unemployment picture for the last three months because of declining automotive production, showed a lower jobless rate than several other cities in September.
    Its unemployment was 7.3 per cent, compared with rates of 9.7 per cent for Sudbury, Ont., 9.3 per cent for Halifax and 10.5 per cent for St. John’s, Nfld. One possible reason for the drop in Windsor is that many workers have taken earlier retirement or made other arrangements.
    In spite of steady improvement in the jobless situation since early spring, Canada’s unemployment rate remains higher than most others in the industrialized world.
 UN employees head for cover
   NEW YOBK (AP) - The United Nations Secretariat and General Assembly were evacuated today after a young man, angry at a publishing firm, buzzed the company’s nearby offices in a single-engined plane, police said.
    Bells sounded throughout the the 48-storey Secretariat building on Manhattan’s East Side and security officers ordered the several thousand employees to leave.
  The General Assembly hall, w here a session was scheduled for 10:30 a.m , also was ordered evacuated about 11 a.m.
    "Security has advised us that a lunatic is flying around here and threatening to crash into the UN building, and for that reason we are ordering an evacuation,"saidUN information officer Rudolph Stag-duhar.
School burns
Cltlirn Photo by Doug Wrllrr
 Children played Monday with items salvaged from flames that destroyed the old South Fort George Elementary School. Arson is suspected in two fires in this area between 5:50 a.m. and 6:35 a.m. on Monday. At least $40,000 damage was caused to a vacant house only two blocks from the school at 2521 Moss and about $30,000 in damage was done to contents in the school fire. The old elementary school was being used as a warehouse for storing chairs, coat racks and other items used at schools in the district.
SECOND TIME IN MONTH
Interest rate hiked
  OTTAWA (CP) - Gerald Bouey, governor of the Bank of Canada announced today he is raising the bank’s lending rate to a record 13 per cent, although he is aware the high level of interest rates in the country is hurting individuals and businesses.
   Effective immediately, the bank’s pace-setting lending rate goes up by three-quarters of one per cent from the 12.25-
 per cent level announced Sept. 10.
   This is the second bank-rate increase in less than a month and the third since the Conservatives came to power in May.
   It follows an announcement Saturday by the U.S. Federal Reserve Board that it was raising the discount rate in that country to 12 per cent — the highest it has ever been.
   Since March. 1978. the Canadian bank rate has been raised
 10 times from eight per cent.
   The Bank of Canada resisted an increase in interest rates two weeks ago when the Federal Reserve Board announced a previous half-per-cent increase in its lending rate.
   By raising its rate, the central bank signals the chartered banks and other lending institutions that it wishes them to charge their borrowers more, discouraging credit.
 In the U.S. it's 12 pet.
 WASHINGTON (AP) - The dramatic anti-inflation initiative announced by the U.S. Federal Reserve Board is part of a delicate effort to dampen rising prices without causing a severe economic slowdown.
 The board — alarmed by soaring wholesale prices, hyperactive speculation in gold and the U.S. dollar, plus excessive borrowing — increased its bank lending rate a full percentage point to a record 12 per cent Saturday and altered the way it controls the availability of credit.
Move likely to affect mortgages
     by TOM NIXON Citizen Staff Reporter Most bank interest rates are likely to rise this week following today’s Bank of Canada prime rate increase to a record 13 per cent.
  Although the country’s commercial banks aren’t forced to increase their rates to follow the federal bank's lead, those that haven’t kept pace with such increases this year are likely to consider interest rises now.
   Jim Iiadcliffe, of Canada Permanent, said he’s not surprised at today’s Bank of Canada announcement after the rise of the American federal reserve rate Friday to 12 per cent.
   He said it’s likely, although no announcement has been made, that Canada Permanent mortgage interest will increase from the present 12^ per cent to at least 13 per cent.
   He said it’s likely other mortgaging companies will
 also boost their rates, although it will depend on what sources of money, other than the Bank of Canada, they have.
   Radcliffe said, however, that interest rates for consumer loans, to buy cars, or household items, are harder to predict.
   People alarmed that the steadily-climbing interest rates are a precursor of a de-vasting depression can rest easy, however.
   Gordon McLeod, of Canarim Investments Corp., says he remains "bullish” in the faceof the American and Canadian reserve banks” efforts to put the lid on rising inflation.
   He said the stock market, a good indicator of economic conditions, keeps rebounding from the dampening effects of U.S. Federal Reserve Board and Bank of Canada interest increases.
"Stop thinking about the cost ot living. Mona, and smile.”
Kissinger's memoirs . .
Bridge................................19
Business...........................8,9
City....................................2,3
Classified.....................18-23
Comics...............................30
Crossword........................18
Editorial..............................4
Family..........................38,39
0	Those pretty blue boxcars we’re seeing here lately are not the new style of CNR, nor is the logo an incorrect painting of CN . . . it’s CV, which stands for Central Vermont (a subsidiary of CN). A local CN spokesman tells us: "They’re here because we have the pulp traffic to fill them.”
0	Many of those who went out to bag a moose during the long weekend probably never saw tracks, never mind the elusive animals But driving along Johnstone Road near the airport Monday evening, motorists were able to watch a cow and two calves slowly crossing the highway and running toward the airport. These animals could not be shot because they were inside city limits, and all were females. However,a hunter could have at least seen what the beasts looked like.
United Way
Today’s
Target: