TOUGH
NEGOTIATIONS
WITH
U.S.
LIE
AHEAD
Gov't
OTTAWA
(CP)
Predictions
of
tough
negotiating
ses-'
sions
ahead
followed
quickly
from
both
Ottawa
and
;
Washington
on
Monday
after
the
Trudeau
government
'.
gave
provisional
approval
to
a
proposal
to
move
Alaskan
;
natural
gas
to
United
States
markets
across
Canada.
Talks
between
the
two
governments
on
the
$10-billion
pipeline
project
are
expected
to
get
under
way
within
a
'.
week
and
both
sides
say
it
will
be
difficult
to
reach
any
;
agreement.
!
The
federal
government
wants
a
pipeline
built
with
a;
-
little
impact
as
possible
on
the
people
and
the
land
of
the
north
while
still
providing
significant
benefit
to
the
country.
The
U.S.
wants
a
system
which
will
provide
natural
gas
to
its
consumers
at
the
least
possible
cost.
"There
are
going
to
be
tough
negotiations
it's
quite
conceivable
they
will
not
be
successful,"
Prime
Minister
Trudeau
told
a
news
conference
after
his
cabinet
reached
a
decision
in
a
four-hour
meeting.
But
he
felt
agreement
could
be
reached.
Trudeau
said
that
in
talks
with
U.S.
President
Jimmy
JOBS,
MATERIALS
Area
big
winner
if
project
okayed
by
ELI
SOPOW
Citizen
Staff
Reporter
,
Prince
George
could
be
the
gateway
to
supplying
workers
and
materials
to
the
Alcan
pipeline,
which
would
cost
$1.2
billion
to
build
in
B.C.
alone
and
will
contribute
up
to
$1.25
billion
directly
to
the
provincial
coffers
during
its
25-year
lifespan.
Art
Willms,
manager
of
gas
sales
and
an
economist
with
TODAY
'Glass
of
oil
for
you,
dear?'
FEATURED
INSIDE
)
Just
getting
to
the
games
was
quite
an
experience
for
Canadian
Football
League
teams.
Page
15.
U.S.
Secretary
of
State
Cyrus
Vance
brings
word
of
Palestinian
concessions
to
Israel
today
in
what
may
be
the
climax
of
his
Mideast
peace
mission.
Page
5.
Bridge
....22
Business
8
City,
B.C
....2,3
Classified
.18-26
Comics
,
9
Crossword
20
Editorial
c
THE
WEATHER
A
cold
front
from
the
north
moving
through
Prince
George
is
expected
to
bring
the
city
cloudy
skies
and
cool
temperatures
today.
The
forecast
for
Wednesday
is
for
mainly
sunny
skies.
The
expected
high
today
is
20,
the
low
10.
The
Monday
high
was
22,
the
low
14
with
4
mm.
of
precipitation.
On
this
date
last
year
the
high
was
21,
the
lowll..
gives
blessing
Westcoast
Transmission
Co.
Ltd.,
said
in
a
telephone
interview
from
Vancouver
today
that
the
northeastern
B.C.
portion
of
the
pipeline
will
create
up
to
1,700
jobs
a
year
during
its
two
and
one-half
year
construction
period.
Westcoast
Transmission
is
responsible
for
constructing
the
line
through
B.C.,
while
Foothills
Pipe
Lines
(Yukon)
Ltd.
would
handle
the
Yukon
and
Alaska
sections.
Family
11
Horoscopes
14
International
5
National
2
Sports
15-17
Television
,
14
J
NOW
HEAR
THIS)
9
A
member
of
the
Airstream
trailer
caravan
camped
in
town
had
a
quip
for
us.
He
.said
"we're
a
bit
like
Arabs
folding
our
tents
when
we
leave.
Actually,
after
we're
gone,
we
become
the
past
tense."
The
Wally
Byam
Caravan
leaves
today.
Bicyclists
in
Prince
George
will
be
pleased
to
know
that
some
motorists
are
their
guardian
angels.
A
local
girl
and
her
husband
were
so
incensed
at
the
shabby
treatment
of
a
10-speeder
Friday
that
they
may
launch
a
court
action
if
they
can
find
the
cyclist,
They
were
travelling
west
on
22nd
Ave.,
about
5:30
p.m.
when
they
saw
the
driver
of
a
Red
Toyota
pick-up
almost
run
over
a
cyclist
near
the
by-pass.
They
followed
the
car
and
got
the
licence
number.
The
cyclist
was
wearing
a
helmet
and
an
orange
shirt,
anyone
who
knows
him
is
asked
to
phone
564-8618.
People
who
throw
bottles
from
cars
should
consider
the
sadness
of
a
10-year-old
member
of
the
Dusty
Trail
Riders,
a
local
horse
club.
The
youngster
was
riding
alongside
the
Blackwater
Rd.
when
the
horse
suffered
cut
tendons
from
broken
glass.
The
animal
had
to
be
destroyed.
It
was
another
first
for
Prince
George.
Accompanied
by
his
family,
Dr.
Alfonse
Goppel
the
minister-president
of
Bavaria,
one
of
the
West
German
states,
flew
in
to
the
city
today
despite
an
air
traffic
controller
strike.
He
came
by
government
aircraft
flying
under
visual
flight
rules.
Bill
Bennett
invited
him.
Carteron
Monday
before
the
cabinet
made
a
final
decision,
they
reached
agreement
on
the
basis
for
talks
"that
we
wouldn't
sort
of
be
padding
our
bills,
they
wouldn't
be
bluffing
that
they
have
all
kinds
of
other
routes
up
their
sleeve."
"We
agreed
that
it's
in
the
interest
of
both
countries
to
build
this
pipeline
and
we
will
make
a
best
effort
to
see
that
it
is
built,"
the
prime
minister
said.
But
his
sentiments
on
the
problems
ahead
were
echoed
in
Washington
on
Monday
night
where
a
U.S.
government
official
said:
"It
is
going
to
require
compromise
and
accommodation
on
both
sides,
and
every
time
you
get
into
things
like
that
you
lower
the
chances
of
political
acceptability."
'
Foothills
Pipe
Lines
Ltd.
of
Calgary
and
Northwest
Pipeline
Corp.
of
Salt
Lake
City,
Utah,
are
seeking
permission
to
build
a
2,500-mile
pipeline
across
Alaska,
the
southern
Yukon,
British
Columbia
and
Alberta
to
the
United
States
border.
But
if
agreement
cannot
be
reached
on
the
terms
and
Willms
summed
up
economic
Impact
on
B.C.
as
follows:
If
construction
begins
in
1980,
there
would
be
1,600
jobs
created
in
that
year,
1,600
to
1,700
in
1981
and
2,400
dwindling
to
100
construction
jobs
in
1982.
Half
of
the
workers
are
expected
to
come
from
B.C.
Between
70
and
90
full-time
jobs
will
be
created
along
the
Alcan
route,
with
at
least
another
400
full-time
jobs
created
in
the
service
industries.
Up
to
$300
million
could
be
spent
inB.C.
to
purchase
materials
for
the
project.
That
represents
one-quarter
total
B.C.
construction
costs.
During
construction,
the
province
would
receive
between
$80
and
$125
million
in
direct
revenue
resulting
from
various
forms
of
taxation,
including
charging
sales
tax
on
pipe
coming
from
points
east,
A
After
completion,
B.C.
would
get
$30
to
$50
million
a
year
for
the
25-year
lifespan
of
the
project
from
sales,
income
and
corporate
tax
and
from
a
gas
tax
charged
pumping
stations
using
natural
gas,
located
every
40
miles
along
the
line.
Willms
said
it
is
difficult
to
add
up
the
total
impact
on
the
province,
but
direct
and
indirect
income
generated
and
recycled
throughout
B.C.
could
represent
$900
million
to
$1.2
billion.
He
said
transportation
routes
for
project
pipe
are
still
being
studied
but
Prince
Goerge
could
likely
play
a
key
role
in
the
distribution.
On
Monday,
provincial
Energy
Minister
Jack
Davis
said
he
expected
B.C.'s
position
in
the
negotiations
with
the
federal
government
about
the
pipeline
to
include
such
requests
as
use
of
B.C.-manufactured
products,
B.C.
labor,
and
the
B.C.
Railway
as
a
source
of
transportation
for
the
B.C.
and
Yukon
sections
of
the
$10
billion
project.
The
legislature
will
hold
an
emergency
debate
today
in
Victoria
over
what
conditions
the
province
should
impose
on
construction
of
the'line.
Hobert
Green
of
the
B.C.
Energy
Commission,
coordinator
of
a
B.C.
inter-ministerial
study
group
on
the
pipeline,
will
also
be
in
Ottawa
this
week
to
begin
the
ground
work
on
talks
on
the
province's
involvement.
Meanwhile,
Bert
Simmons,
chairman
of
the
Northern
Development
Council,
representing
regional
districts
in
the
northern
part
of
the
province,
said
in
a
telephone
Interview
from
Dawson
Creek
today
the
pipeline
will
be
good
news
for
the
Peace
River-Liard
Regional
District,
He
said
taxation
of
the
pipeline
and
pumping
stations
will
represent
a
needed
economic
boost
to
nearby
communities.
"With
the
exception
of
some
of
the
native
groups,
most
people
are
quite
happy
about
the
proposal,"
he
said.
Simmons
said
the
line
will
be
buried
in
B.C.
and
there
will
be
no
lasting
effects
on
the
environment.
One
of
the
big
benefits
from
the
pipeline,
said
Simmons,
is
the
possibility
of
getting
the
Alaska
Highway
paved,
He
said
the
NDC
has
been
pushing
for
years
to
get
the
road
paved.
The
highway
was
built
by
the
U.S.
as
a
Second
World
War
measure.
Mayors
of
northern
communities
expected
to
be
along
or
near
the
proposed
Alaska
Highway
pipeline
route
have
expressed
optimism
for
economic
growth
following
Ottawa's
annoucement
Monday
backing
the
Foothills'
project,
The
i
City
36
stalls
Getting
musical
ready
at
the
Friday
QUEBEC
IS
WORST
Sharp
OTTAWA
(CP)
-
The
number
of
unemployed
Canadians
jumped
sharply
in
July
to
878,000,
an
increase
of
64,000
from
a
month
earlier,
Statistics
Canada
reported
today.
The
unemployment
rate,
adjusted
for
seasonal
factors,
rose
to
8.1
per
cent
of
the
labor
force
from
eight
per
cent
in
June,
In
June,
there
were
814,000
unemployed
and
a
year
earlier
there
were
775,000
jobless.
The
actual
unemployment
to
pipeline
proposal
conditions
for
building
that
route,
the
U.S.
could
select
instead
a
proposal
from
El
Paso
Co.
Ltd.
for
a
line
south
across
Alaska
to
Valdez,
where
the
gas
would
be
turned
into
a
liquid
and
shipped
by
tanker.
Trudeau
said
his
government
also
favors
Foothills'
plan
to
build
a
connecting
pipeline
from
the
main
line
into
the
Northwest
Territories
when
required
in
the
early
1980s
to
move
Canadian
gas
to
market.
Trudeau
was
vague
about
the
conditions
that
will
be
sought
in
the
talks
with
Washington,
saying
he
did
not
want
to
give
away
"our
negotiating
position
in
detail."
Opposition
Leader
Joe
Clark
said
he
felt
that
the
government
should
make
the
conditions
public
without
revealing
its
precise
bargaining
position.
New
Democrat
Leader
Ed
Broadbent
said,
however,
that
he
could
understand
the
government's
position.
The,
government
negotiating
team
will
be
headed
by
Allan
MacEachen,
the
government
house
leader
and
former
external
affairs
minister,
with
aid
from
Basil
Robinson,
former
undersecretary
of
state
and
now
the
northern
pipeline
commissioner;
Citizen
Tuesday,
August.
9,
1977
carpenter
Pete
Byspalko
drives
nail
into
one
of
the
being
built
to
accommodate
horses
of
the
RCMP
ride.
The
musical
ride
will
be
performed
nightly
Prince
George
Exhibition
grandstand
Thursday,
and
Saturday
at
8
p.m.
and
Sunday
at
7
p.m.
rise
for
jobless
rate
in
July
was
7.9
per
cent,
compared
with
7.2
per
cent
in
July,
1976,
and
7.5
per
cent
in
June
this
year.
The
federal
agency
said
that
five
provinces
showed
significantly
higher
unemployment
rates,
with
Quebec
leading.
The
jobless
rate
in
that
province
jumped
to
10.3
per
cent
from
9.7
per
cent
in
June,
The
hard-hit
Atlantic
provinces
showed
a
mixed
picture
in
July.
The
unemployment
rate
eased
to
15.3
per
cent
from
Vol.
21;
No.
153
Prince
INDIA
DEMANDS
SECRET
FORMULA
Things
could
be
better
for
Coke
NEW
DELHI,
India
(AP)
The
Indian
government
has
demanded
that
the
American
producers
of
Coca-Cola
turn
over
control
of
their
Indian
operations
and
the
secret
to
Coke's
taste
to
Indians
or
get
out
of
the
country.
Accusing
Coca-Cola
of
squeezing
up
to
400
per
cent
profit
from
Indian
franchised
bottlers,
Industry
Minister
George
Fernandes
demanded
that
the
company
transfer
its
technical
know-how
and
60
per-cent
control
to
an
Indian
firm.
The
announcement
in
the
lower
house
of
parliament
Monday
night
was
cheered.
Fernandes
also
said
government
chemists
have
perfected
a
formula
for
a
substitute
beverage
which
could
provide
employment
for
the
150,000
Indian
Coca-Cola
workers
should
the
-Atlanta,
Ga.,
firm
pull
out,
Indian
officials
of
the
Coca;Cola
Export
Corp.
said
comment
would
have
to
come
from
their
managing
director,
lift
per
cent
in
June
in
Newfoundland,
In
Nova
Scotia,
jobless
rates
fell
to
10.1
per
cent
last
month
from
11.1
per
cent
in
June.
The
unemployment
rate
also
rose
in
Alberta,
to
4.5
per
cent
of
the
province's
work
force
last
month
from
4.1
per
cent
In
June.
This
was
still
the
lowest
provincial
unemployment
rate.
In
British
Columbia,
jobless
rates
increased
to
8.5
per
cent
of
the
work
force
from
8.3
per
cent
in
June.
Among
the
items
Trudeau
said
will
have
to
be
negotiated
are
the
precise
route
of
the
pipeline
through
the
Yukon,
timing
of
its
construction,
provision
for
the
connecting
line
for
Canadian
gas
and
the
financial
feasibility
of
the
proposal.
He
also
said
social
and
economic
impact
will
have
to
be
kept
to
a
minimum
and
compensation
payments
made
if
they
are
not.
Recommendations
to
the
government
from
special
inquiries
suggest
the
route
should
swing
deeply
through
the
Yukon
to
facilitate
the
Canadian
line
and
a
$200-mlllion
compensation
payment
be
made.
U.S.
officials
already
have
frowned
on
both
proposals
on
the
grounds
that
they
will
add
to
the
cost
of
natural
gas
sold
to
United
States
consumers.
They
also
are
concerned
over
a
recommendation
that
construction
be
delayed
two
years
to
1981
to
allow
more
time
to
settle
native
land
claims..
The
U.S.
wants
the
Alaskan
gas
as
soon
as
possible
to
help
solve
shortages
that
last
winter
forced
industry
to
shut
down
for
a
time
in
many
eastern
states.
George,
British
Columbia
B.C.
finances
rile
opposition
VICTORIA
(CP)
-
Opposition
spokesmen
say
the
British
Columbia
government's
quarterly
financial
report
shows
that
the
Social
Credit
party
is
up
to
its
old
political
game
of
under-estimating
revenues
and
over-estimating
expenses.
Liberal
leader
Gordon
Gibson
and
Progressive
Conservative
leader
Scott
Wallace
told
reporters
Monday
that
the
government
was
over-taxing
the
province
so
it
could
accumulate
a
surplus
to
buy
off
voters
at
election
time.
The
report,
released
earlier
Monday,
showed
B.C.
had
a
surplus
of
$196
million
for
the
first
three
months
of
this
fiscal
year,
$101.3
million
more
than
forecast.
Finance
Minister
Evan
Wolfe
told
reporters
the
surplus
was
$179.9
million
more
than
the
surplus
for
the
same
period,
ending
June
30,
of
1976-77.
Wolfe
warned,
however,
that
the
trend
could
not
be
expected
to
continue
throughout
the
year.
"The
current
outlook
for
the
province's
budget.
for
the
full
year
indicates
a
nominal
overall
surplus,
when
consideration
is
taken
of
the
heavier
expenditure
pattern
of
the
summer
and
early
fall
months,"
Wolfe
said
in1
the
report.
Wallace
said
the
situation
was
one
he
thought
he
had
seen
before.
Airport
strike
blamed
in
CNR
hearing
delay
A
public
hearing
into
Canadian
National
Railways'
proposal
to
withdraw
stations
and
agents
from
11
communities
between
Jasper
and
Prince
Rupert
has
been
postponed
to
Sept.
14
and
15.
The
hearing
was
scheduled
to
take
place
this
Wednesday
and
Thursday
at
10
a.m.
in
Courtroom
A,
1600
Third
Ave.
in
Prince
George.
CNR
public
relations
officer
Al
Menard
said
the
delay
is
due
to
the
Canadian
Air
Traffic
Controllers
Association
strike.
CNR's
legal
counsel
were
unable
to
fly
from
Montreal,
and
Canadian
Transport
Commission
officials
were
also
dependent
on
the
airlines
to
get
here.
The
11
communities
to
be
affected
by
the
proposed
withdrawal
of
stations
and
agents
are:
Redpass
Junction,
Upper
Fraser,
Vanderhoof,
Houston,
New
Hazelton,
Kitimat,
Penny,
Glscome,
Burns
Lake,
Telkwa
and
Kitwanga.
Menard
said
he
was
aware
of
only
one
brief,
from
residents
Kisan
Mehta,
currently
in
London
for
talks.
But
sources
said
Coke
would
probably
opt
to
pull
out
rather
than
give
up
the
secret
that
has
made
the
beverage
internationally
popular.
With
an
initial
plant
investment
of
only
$75,900,
Coca-Cola
had
actual
and
claimed
earnings
of
$11.5
million
prior
to
1974,
Fernandes
said
more
than
the
foreign
exchange
it
brought
into
India.
Last
April,
India's
reserve
bank
ordered
the
local
branch
of
Coca-Cola
Export
Corp.
to
convert
itself
into
an
Indian
corporation
within
one
year,
with
a
maximum
foreign
equity
of
40
per
cent.
Fernandes
said
Coca-Cola
agreed
but
with
the
condition
that
the
American
side
would
maintain
a
"quality
control
and
liaison
office"
in
India
to
guard
the
"trade
secrets,"
meaning
the
syrup
formula.
S.
15'
Copy
.
"We're
back
to
the
old
Social
Credit
habit
of
over-taxing
people,
getting
large
revenues,
then
giving
them
back
to
them
at
election
time,"
he
said.
"It's
the
old
con
game,
all
over
again.
.
.
I'm
just
sick
and
tired
of
this
.
.
.guff."
Gibson
said
the
unexpected
surplus
indicates
that
Premier
Bill
Bennett
is
going
back
to
former
Premier
W.
A.
C.
Bennett's
practice
of
building
up
large
surplus
to
be
used
as
political
candies
at
.election
time.
Opposition
leader
Dave
Barrett
would
not
comment
on
the
report,
saying
the
New
Democratic
Party
needed
more
time
to
conduct
a
thorough
study.
In
releasing
the
report,
Wolfe
said
revenue
of
$978.1
million
$72.9
million
more
than
anticipated
was
mainly
due
to
two
sources.
"Revenue
from
natural
resources
was
$34
million
higher
than
originally
forecast,
with
most
of
the
increase
provided
by
petroleum
and
natural
gas
revenue,
and
receipts
from
the
federal
government
were
$23.7
million
higher
than
forecast,
principally
due
to
changes
in
.
.
.
fiscal
arrangements
and
shared-cost
programs
since
the
date
of
the
budget,"
the
minister
said.
Budgetary
expenditure
for
the
quarter
was
$782.1
million,
$28.4
million
less
than
the
original
forecast,
he
said.
of
Houston,
to
be
presented
at
the
hearing.
The
county
court
will
not
be
used
for
the
delayed
hearing
but
the
new
location
was
not
known
at
press
time.
This
is
the
second
time
the
hearings
have
been
postponed.
They
were
to
be
held
originally
in
Prince
George
July
20.
CTC
gave
no
reason
for
the
original
postponement.
Sports
body
takes
over
Loto
Canada
ST.,
JOHN'S,
Nfld.
(CP)
-Sport
Canada,
the
federal
sports
agency,
has
gained
control
of
Loto
Canada
and
started
work
on
plans
for
a
national
sports
lottery,
to
begin
after
the
lottery's
current
mandate
expires
in
1979.
Sport
Minister
lona
Cam-pagnolo
told
amateur
sports
officials
during
meetings
that
coincided
with
the
opening
of
the
Canada
Summer
Games
Sunday
that
she
has
assigned
a
senior
official
to
study
the
lottery.
Sport
Canada
has
been
trying
to
take
over
the
lottery
from
the
federal
industry
department
to
make
sure
it
will
be
continued,
to
help
provide
funds
for
sports
development.
Industry
Minister
Jean
Chretien
had
been
trying
to
surrender
his
responsibility
for
the
lottery
because
it
was
not
producing
the
funds
his
officials
said
it
would.
Federal
officials
have
long
thought
that
a
sport
lottery
could
play
a
major
role
in
meeting
the
rising
cost
of
sport
development
for
the
federal
and
provincial
governments.
They
have
hoped
that
agreement
could
be
reached
with
the
provinces
to
allow
Ottawa
to
administer
such
a
lottery
with
the
provinces
sharing
about
50
per
cent
pf
the
revenues.