«¢ fean military transport aircraft

7

“Covers Prince Edward Island Like The Dew” —

18 Rural

Youths

Will Take Course

Cancer Vaccine Aid Is Urged By Famous Toronto Surgeon

OTTAWA (CP)—The govern- ment is setting aside $300,000 a eo oe Sa

penses arising from it. . The figure likely is a prelimin- ary estimate of the cost which

— may be considerably

Although he has never claimed a cure for cancer, the Toronto doctor said he has been .bom- barded with requests for the serum. At present he has enough serum te treat only six patients.

NOT SO COLD

, compared with a 3- year average of 142. Snowfall was 36 inches, considerably more than average 26.5 inches.

i

‘ @utheriee® an Gesend Class Mall by the Pest Office Departmeat, Ottawa

ee

Island Processed Products

Canada| interested in exhibiting at

paign is being initiated in around Boston and it) is report- ed that the Boston Herald will

the fair are advised to contact the of indus-

provincial department try and Natural Resources in Chariottetown.

Praised By

Dr. M. Lorne Bonnell, minister of health for Prince Edward Is- land, expressed congratulations yesterday to the ratepayers of the

Macmillan Will

Visit Russia

LONDON (Reuters) — Minister Macmillan announced Thursday he will go to Moscow Feb. 21 to exchange views with Soviet leaders, but not to negot- iate.

It will be the first time a Brit- ish prime minister has set foot

1b

on Russian soil -in peacetime

since the days of the czars.

U.S. Uses Tape-Recording ‘As Evidence Against Reds

' By GEORGE KITCHEN Canadian Press Staff Writer 8 WASHINGTON (CP) — The United States Thursday accused the Soviet Union of deliberately shooting down an unarmed Amer-

which strayed into Soviet terri- tory near the Turkish frontier five months ago.

Six U.S. airmen are kngwn to hhave been killed in the attack, which the state department said it regards with “extreme gravity.”

The 11-other members of the 17-man crew still are missing and may also be dead. i

The Soviet Union has denied that the aircraft was shot down, eontending that it crashed near a mountain in Soviet Armenia. it also has denied knowledge of the whereabouts of the 11 men still missing.

DELIBERATE ATTACK

Thursday, making public for the first time its charge of de.

liberate attack. the state depart-|. .. ment said it has evidence that). five Soviet fighters intercepted]. . .

the four - engined transport ap- proximately 2 miles inside So- viet territory “and shot it dewn Wl ithout rez gard the rules of eivilized international practice.”

tn

lthese words in

tape-recorded radio talk among ing Soviet fighter pilots attacking a four - engined transport in that area last Sept. 2, the date the U.S. transport disappeared.

Press officer Lincoln White de- clined to say how the tape re- cording happened to come into American hands but said the U.S. government regards it as “‘abso- lutely authentic” since it was re- corded at the same time and the same day the aircraft crashed. It was presumably monitored by U.S. or allied listening posts in the vicinity of the Turkish-Soviet Armenian border.

NO WARNING?

There was no indication that the attacking fi s had warned the transport to force it down wit resort to firepower.

The story of kill is told in

e English-trans- lation transcript:

“I see the target. a Jarge one” “1 see)the target, attack” “l am ditacking the target” “the target is a transport, four-engined” . “itt is turning toward the . fenge border)"’ “the target is burmng

“There 5 a hit” “open fire “the tail assembly is falling

To support its case, the depart- ment released the transcript oa

.| plied that |} ment had no further information?

off” . “look at him, he will pot get away, he is hlready fall-

ing” ... “I will finish him off, boys, I will finish him off on the run”... “the target has lost con- trol, it is going down” ... “form up, go home.”’

DESCRIBED PLANE

The state department officer said the “most damning” evi- dence of all was that one of the Soviet pilots described it as “a transport; four-engined.”’ The pi-

lot would know, he said, that a/| 300

focr-engined transport carries no guns or bombs.

The department conceded that the U.S. plane, making a study along the Turkish border of the propagation of radio waves trans- mitted by U.S. radio stations. was within Soviet territory but said this was unintentional and prob- ably was caused by signals trans- mitted by radio beacozs in Soviet Georgia and Armenia.

The department disclosed that both vice president Richard Nixon and State Secretary Dulles pressed Soviet Deputy Minister Anastas Mikoyan for further in- formation when he visited. Wash- ington last month. Mikoyan re- the Russian zovern-

beyond its claum that the plane had crashed, and he “wondered why the Americans were suspic-

Parkdale Ratepayers

Minister

CANADA,

FRIDAY, FEBRUARY 6, 1959

A REPRESENTATIVE group of Island retailers gathered at the Charlottetown Hotel last aight to hear an address by D.

MAYOR BRANDT

West Berlin’s Mayor Arrives

OTTAWA (CP)—Willy Brandt, firm-nerved mayor of the west- ern world bastion of West Berlin, arrived in Ottawa Thursday night

for a concentrated program of}

high-level talks at the invitation of the Canadian government.

ae See co: mannan ed last night by David A. Gil- bert, general manager of the

men as part speaking tour, Mr. Gilbert also urged that the current session of Parliament repeal Section 34 of

which, he said, had made pos- sible loss-leader selling, false ad- vertising and misleading price- structures in the retail trade. This section forbids a manufac- turer from setting a resale price on his product.

OMMISSION NOTED

The recent speech from the throne at the opening of Parlia- ment indicated that the govern- ment contemplated some change with~regard to sections of the Combines Act which he was sure had something to do with sec- tion M4, he said, but his associa- tion was disappointed that_ no mention was made of urgently- meeded facilities for term loans to smal! business.

- RMA has been urging that the government set up loan facili- ties. through the chartered banks, by guaranteeing 10 per cent of approved long-term loans

~ FIVE GASSED MONTREAL (OP-—Five _ per-

The mayor, 45, half an hour, sons were treated and released late on his trip from New York|from hospital early Thursday in a transport department Vis-| after they were overcome by es- count, arrived at Ottawa's snow-|caping gas in their east-end home.

clad Upjands Airport in darknes and said he*is “‘so grateful’

the opportunity of the oneday/| Denise

visit.

The victims were Mr. and Mrs.

for | Luc oo their two children,

. land Diane, 4, and Mrs. Anne Gilbert, Gilbert, ws PEE

| Breakdown Of Main deal

Estimates By Departments

OTTAWA (CP)—Breakdown of 1959-60 main federal spending es- timates tabled in the Commons by Finance Minister Fleming, 1958-59 estimates in brackets:

Agriculture $106,096,852 ($138,- 240.959): atomic energy $32,092.,- ($28,147,119); auditor-general $895,010 ‘$868,.790)> Board of Broadcast Governors $200.- 000 ( —); CBC $69,641,975 ($61,964,040); chief electoral of- ficer $117,920 ($116,205); citizen- ship and immigration $57,107,730 ($55,294,142); civil service com- mission $3.661.089 ($3,521,771)

Defence production $11,913,620 ($9,894,086); crown companies $6,477,525 ($6,164,486): external affairs $80.825.001. ‘$76.159.733):

board $12,211,275 ($10.760.645); defence $1,680,194,006 ($1,687,212,- 189’: National Film Board $4,- 555.736 ($4,258,918); national gal- lery $904,640 ($658,600): health and welfare $1,393,340,528 ($1,- 173,123,335); civil defence $7,220,- 817 ($7,027,721);

National Research Counc! $30.- 133,580 ($25,992,204); national rev- enue $72,611,846 ($71,888,641); northern affairs - resources $85,- 787.577 ($77,932.478); post office $163,501,965 ($162,398,824); Privy Counc i! $7,461,438 ($6,138,713); public archives $542,870 ($582,- 826): national library $328,279 ($222,591); public printing $3,501,- 250 ($3,483,284): public works $221,710,496 ($236,610,789) ;

RCMP $53,774,103 ($53,032,099);

finance $1.261.434,605 ($1.154.153,-| secretary of state $4.472.803 ($4,-

393': fisheries $19.544.777 ‘$19.. 914.331); gov. - gen. -— lt. - govs. $431,064 ($423,188); insurance $694,441 ($632.198): justice $7.- 996,496 ($7,691,288); penitentiar- jes $19.338.708 ‘$16.815.479): 1a-

bor $15,990,240 ($13.590.343) ; Unemployment insurance $74 74.000 ($72.246.934), legislation $7,688,074 ($7,674,204); mines and technical surveys $36,066.205 ($29,742,151); Deminiosn coal

139.951); trade $64,077,970 ($67. 016,771): transport $229,014. 152 ($225.240.031'; air transport board $369,285 ($337,179): trans- port commissioners $23,201,773 ($23,127,292): Maritime Commis. | sion $5,706,988 ($5.769.153); Har- | bors board $4,295,114 ($6,529,244) ;

veteran affairs $291,592.484 ($293 369,725) Totals $5,595 846,557 ($5,205,.615.-

6S).

Retail Merchants’ Association of |

This Province Will Benefit

the Combines Investigation Act)

A. Gilbert (right), general man- ager of the Retail Merchants As- sociation of Canada, Inc. Mr. Gilbert was introduced and

oe ee with a sible limit of $25,000. regayahte over five years.

“There is little to be gained Paying any workman Unem- ployment ‘Semeines. or any other form of dole, for unem- ployment relief,’ Mr. .Gilbert de-

g

thanked by the chairman, J. F.

Jenkins, (left) of Summerside, one of two vice-presidents on the national executive of the group.

‘Loans To Small Business

ed, they will be the first village, |

‘Seen As Employment Aid

-| Clared. Te Sos ceenee ee tion for unemployment is em- ployment!”

While bridges, highways, post offices and other public works are necessary and admirable, he said, their value to the (Continued on Page 9, Col 3)

Slightly Under

OTTAWA (CP) — Although no changes are planned in tax-shar- ing arrangements between © fed- eral and provincia] governments, Finance Minister Fleming indi- cated Thursday that six provinces can expect a cut in the amount of their tax-share payments from the federal treasury.

Increased payments to the other four provinces — Ontario, Quebec, British Columbia and Prince Edward Island — were listed in spending estimates for 1959-60 tabled in the Commons by the minister

An official said the forecast changes in payments to individ- ual provinces in the year start- ing April 1 are due to popula- tion factors and to the yield in each province of th taxes on) which the payments are based.

TOTAL UP SLIGHTLY

Total tax-sharing payments are | expected to rise only slightly, by. | $1,174,000, to $432,088,000. Counting other types of fed- eral payments to the provinces, total payments are expected to

be roughly «nchanged at $462,- 50n naw Unde. .ze tax-Sharing agree-

ments, provinces may receive 13- per cent of federal personal in- eome taxes collected in the prov- ince, nine per cent of taxable corporation income and 50 per cent of the federal inheritance tax.

Forecast tax-sharing payments to provinces for 1959-60, with the 1958-59 estimate in brackets: Newfoundland $24,893,000 ($25.- 214,000); Prince Edward Island $6,645,000 ($6,636,000); Nova Sco- tia $35,250,000 ($36,691,000); New Brunswick $30,266,000 ($30,990.- 000): Quebec $55,809,000 ($51,815.- 000): Ontario $97,636,000 ($96,693,- 000); Manitoba $34,010,000 ($35,- 755,000); Saskatchewan $34.673,- 000 ($36,552,000); Alberta $48.006,- 000 ($48,271,000); British Colum- bia $64,900,000 ($62,337.00).

ATLANTIC PAYMENTS

These payments include a spec- ial $25,000,000 annual amount divided among the four Atlantic provinces.

The estima minister gave

, tabled by “the hint a what

STORM FUNERAL

LONDON (AP. — Crowds of celebrity hunters stormed a church Wednesday to see Dian Dors, platinum haired British film actress, attend the funeral of her estranged husband, Dennis Hamilton. Miss Dors: was jostled, along with 10 policemen” sent

Tax-Sharing

the government's decision will be on the ‘recommendation by a royal commission on Newfound- land’s terms of union that the province be paid an additional $8,000,000 a year. The province has requested $15,000,000. Meanwhile, the transitional grant to Newfoundland, accord- ing to the 1949 terms of union,

program, com- with about $3,000,000 in 1958-59, provides for construction or extension of public buildings, development of the Charlotte- town airport, and harbor and breakwater improvements. The bulk of the estimated ex- penditures has been allocated for Charlottetown.

MARKED INCREASE

A marked increase im public works spending by various gov- ernment departments is plann- ed for the Island. Last year the Diefenbaker administration's

Here is the complete break- down of 1959-60 spending esti-

ul

000; agency wharf reconstruc- tion (total estimated cost, $2,- 000,000), of which: about $200,- 000 to be spent this year: in- strument landing system, Char- $5,000; relocation of

will drop by another $350,000 next year to $700,000. This will end in two more years.

___ | $281,500.

; Improve- ments to PEI National Park,

y }$400,000: capital

/

Bulk Of Outlay Set For Ch'town

Defense: Improvements te army facilities _ Charlottetown $20,000; and following projects for RCAF Station, Summerside,

ward a school, $40,000; addition of two classrooms to the ser vice school, $80,000; garages, $10,000.

SOURIS BUILDING

Public Works: to complete Souris public building, $90,000;

Grants to rifle associations in P.E.J. will total $1,200 im 1958- 59. The United Services Offi- cers Club of Charlottetown will receive $200; hospital construc- tion grants, $205,226; other health grants, $293,424.

The estimated deficit of the P.E.I. car ferry service is $1,- 741,000.

Biggest Spending Program Is Planned By Government

By HAROLD MORRISON Canadian Press Staff Writer OTTAWA (CP)—Record-smash-

ing federal expenditures—which may force the government to take a new line on taxes or bor- rowings—were forecast as Fin- ance Minister Fleming Thursday unveiled a $6,173,448,557 program for the new fiscal year opening April 1.

Driven upwards mainly ‘by higher welfare costs and public debt charges, the big spending program, including both budget expenditures and old age pen- sions, represented a $439,000,000 jump from original estimates for the current year.

It compared with the peak wartime spending of $5,300,000,000 in 1943-44, and; as intially set out, represented a doubling of federal outlays in the last decade. Normally, supplementary estim- ates are added to these initial) programs later in the year and

over-all federal spending for 1959-70 may climb to some $6,500 000,000.

REDUCED SOME SPENDING

, Mr. Fleming emphasized that amid the rise the government did manage to reduce non-statutory spending by $39,100,000. but Op- Position spokesman chided him en the small size of the savings compared with one-time promises of Progressive ConServatives to reduce federal spending by $500.. 000,000.

“These estimates . . . emphas- ize the desirability of the bud- get being brought down in order to deal with them at the earliest possible moment,’ Opposition Leader Pearson said.

The budget, usually presented in March, will show how the gov-

along te maintain erder.

3

@romem proposes te raise reve

nues to meet its expenses. Later, after examining the es- timates in detail, Mr. Pearson said in a statement that Mr. Fleming's claim of a $39,100,000 saving “is without foundation.”

NOT INCLUDED

Not included in the new es- timates was a payment of $40.- 000,000 made to Prairie grain growers this year under the spe- cial $l-an-acre subsidy. Mr. Pear- son said he dixin’t believe the gov- ernment would reduce aid to agriculture, and predicted that an amount equivalent to the $40,- 000,000 or even more would be ptesented to Parliament later.

CCF House Leader Hazen Argue suggested the Canadian public would support even higher welfare payments than those pro- posed by the Conservative admin- istration, but the CCF would not

support the rise in public debt charges. Expenditures attributable di-

rectly to the 1959-60 budget were estimated at $5,595,848,557. a rise from the original 1958-59 esti- mate of $5,179,343,555. This latter figure now has climbed to $5,- 323,570,310 through added spend- ing programs.

PENSIONS CLIMB

Old age pensions, a major out- lay._were estimated to elimb in) the new year to $577,600,000, up from $555,000,000 in the current year. Money from them is paid ifrom, a special two-per-cent in- | come and excise tax, kept apart from the governmeat's budget- ary transactions.

Mr. Fleming told the Commons the ‘1959-60 program was designed to restrain inflation. “‘within the limits of controllable expendi ture,’’ and at the same time aid employment and national devel- opment of resources.

He indicated the goverement’s

works program for 1959-60 wil not be as extensive as the cur- rent year’s outlays which were deliberately planned to fight un- employment.

MEET WELFARE COSTS

Major boosts im spending for the |mew year appeared to be te meet higher welfare costs, in- cluding increased federal charges under the national hospital insur- ance scheme, _nd higher debt charges arising out of increased interest rates and expansion of government borrowings.

Public debt charges were esti- mated to jump by $106,254,000 te a record $680,071,000. Half the es- timated boost was attributed to the government's huge 1958 bond conversion program and the other half to increased federal borrowings. a

Federal outlays for national hospital insurance were forecast to rise to $160,000.000 from this year’s $60,000,000. The central ad- ministration covers roughly half the provincial costs.

All told welfare payments, in- cluding veterans allowances and payments to the unemployment insurance fund, were estimated to rise to about $1,724,400,000 from $1,506,500,000 this year — roughly more than 25 per. cent of the over-all spending program.

DEFENCE OUTLAY DOWN

While over-all spending pointed to new peaks, defence outlays appeared to be taking a declin- ing portion of the total govern ment bill, with the 1959-60 pro gram forecast at $1,695,000,000, down about $72,000,000.

‘The “Blue Book" of 1959-60 ee- timates wit be “followed in 2 month or two by the govers- ment’s budget showing how Mr. Fleming plans te raise the see essary revenues.