cee wat lot “lemons, a ye

OTTAWA (UPC) : “Canada’s
gas station operators have
predicted ‘a wave of station
-Closings across Canada over
the next: three years because

’ multi-national oil companies

plan to raise their rents by.as
much as 600.per cent.

David Bruce, president of
the National Automotive
Trades Association, said the
major oil companies were

demanding “drastic” rent
increases from “lessee
operators” — the 20,000

small businessmen who lease
and run gas.stations owned ,
by the large oil fitms.

| The firms run 80 per cent
of the country’s gas stations.

IN THE UNI

By MICHAEL J. CONLON

WASHINGTON (UPI) -
Used cars in the U.S. may
someday carry a window
sticker telling the
prospective buyer what to
look out for - but not
whether the car has been
inspected for possible
defects,
. The sticker was approved
in substance by the Federal
Trade Commission Tuesday
after years of. investigation
that revealed consumers
need protection against used

"sere Pitofsky, who with

“They're demanding
increases of between 50 and
100 per cent — pretty drastic
increases,” Bruce told
United Press Canada from
Vancouver.

“For instance, one station
operator in Banff had his
rent go from $15,000 a year

‘to $96,390 in the first year of

his new lease, $114,000 in
the second year and
$143,550."

Bruce said all the_ major
multi-nationals were hiking
station rents dramatically.
With the oil companies
‘simultaneously lowering
prices at ‘company-run self-
service ‘stations, Bruce
warned hundreds of opera-

ED STA TES

But in settling on the
sticker, the commission
rejected a proposal that
would have included in the
window tag information on
whether the major systems
of the car had been in-
spected.

Under that approach, the
sticker would have listed the
major systems of the car as
“OK,” “Not OK,” or “We
don't know.” If something
had been listed as “OK,” the
buyer would have had an
implied. warranty right
covering that system.

Commissioners Robert
three

tors would have no choice
but to close during the next
three years.

The company-run stations
hire agents to manage the
station on fixed commission.
Unlike ‘the ‘independent
operators, these agents do
not control the prices they
charge.

“The lessee is caught
between a price squeeze and
his rent hike,” he said.
“(Many) are obviously going
to have to close. Imperial
has made it quite clear that if
the lessee can't pay the
increases it will find some-
one else who will, or let the
station close.

“They're trying to squeeze

other members of the five-
member commission op-
posed the optional in-
Spection approach, said it
would provide ozly
“misleading information and
half-truths"because it is so
vague,

Pormer Chairman
Michael Pertschuk, the only
supporter of the check list
approach, said it was pat-
terned after a successful
Wisconsin law. He said the
only reason dealers opposed
it was that they feared the
competition that would
result.

The final format for the

lessees,” he said. “They
don’t care if lessees. close
down. They're not interested
in providing service (to cus-
tomers), they're only in-
terested in moving gasoline,
that’s their business.”

Bruce said the integrated
oil companies built an excess
of gas stations! many. years
ago, and they want to see
many of them closed to
increase efficiency.

The, National Automotive
Trades Association was
planning to ask the federal
government. to include the
issue in the upcoming public
inquiry into oil companies
marketing and pricing
practices.

sticker still has to be worked
out and the project could be
vetoed by Congress. If the
proposal is given final ap-
proval, it could become
effective within six months
toa year.

Under the proposal, the
sticker would tell the buyer
to inquire about the current
condition of the major
systems of the car and ask if
those systems are covered by
warranty.

Such systems include the
frame and body,

transmission, differential,

and electrical system among

others. -- -

-

engine, *.

SIRO

WASHINGTON (UPD -
Unless . Japan voluntarily

reduces. car exports to the

United © States,
seems certain
legislation that would
require a- cutback, says
Transportation Secretary
Drew Lewis. ;
Lewis said if such a bill
passed ‘Congress, it would
pose a dilemma, for P esident
Reagan,. who‘ favors. free
trade but... also “pledged

the Senate’
to pass

during the campaign to help:

the 1 million persons laid off
by the ailing U.S. auto in-
dustry. .

“I've been told by (Senate
Republican leader) Howard
Baker’ that if this bill does,
come up, it, will very. likely
pass the Senate, | probably |
with a significant margin,”
Lewis said in an interview
Thesday.

“If it passes the Senate, I
think it would likely pass the

House. We'd prefer not to

make the decision on
whether you veto a bill like

that ors support it.”

- FORMER
RESIDENT of North
Vancouver,
aim

Marc |
the 1980

The -Senate bill would
limit Japanese imports to 1.6
million vehicles annually for
three years, compared with
1.9 million last year. A bill in
the House would roll imports
back to 1.2 million.

‘Last month, Reagan
warned: Japanese Forcign
Minister Masayoshi Ito, who

' was on a five-day visit to the

United States, of the strong
support in Congress for the
legislation. But the ad-
ministration, did not make a
specific request of the
Japanese to limit exports.
The problem is expected
to be. descussed more when
Japan’ s./Prime Minister,

Zenko Suzuki, visits
Washington carly next
month.

The question has been a
particularly . touchy one for
the administration. Reagan
has said he would not
support trade restrictions for
fear they could touch off a
series of retaliatory
protectionist policies

UAW also urges curbs

WASHINGTON (UPI) - Uni-

ted Auto Workers President _

Douglas Fraser said Wednes-
day his union will push for a
law restraining Japanese
automobile . imports if ‘the
administration's “tough talk”
does not produce voluntary
curbs,

“We're not going to- give

,jobs

Fraser told U.S. Chamber of
Commerce luncheon.

Fraser noted that 183,000
U.S. auto workers are on
indefinite layoff and tdns of .
‘thousands more are opt of
in. allied parts -indus-
tries, But, . he said, “The
worry. and frustration has pot

“up the bane with Congress;” "become despair. ”

7]