October 12, 1932

WORLD ECONOMIC CONFERENCE

CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Right Hon. R. B. BENNETT (Prime Minister):

Yesterday the hon. member for Shelburne-Yarmouth (Mr. Ralston) asked whether I would be in a position to table further correspondence in connection with the world economic and financial conference. The official communications on this subject have been issued by the secretary of the League

Imperial Conference-Trade Agreements

of Nations, as I indicated yesterday, and they include the invitation from the president of the Lausanne conference of the League of Nations to invoke the world conference, and the action taken by the League of Nations in consequence. Copies of the communications are attached to the file which I shall presently lay on the table. Copies are also attached of communications with the government of the United States indicating the scope of the conference, together with two telegrams from the Canadian delegation at Geneva supplementing the official information. Some despatches in this connection have been received from the government of the United Kingdom, as I indicated yesterday, but these are of a confidential nature and do not contain any additional information as to the scope or nature of the conference.

I will now table these documents so that they will be available to the hon. member and to the house generally.

Topic:   WORLD ECONOMIC CONFERENCE
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QUESTION PASSED AS ORDER FOR RETURN

RURAL MAIL ROUTES

LIB

Mr. REID:

Liberal

1. How many rural mail routes were established in each province during the year 1931?

2. How many rural mail routes were put into operation from January 1, 1932, to date, and what number in each province?

Topic:   QUESTION PASSED AS ORDER FOR RETURN
Subtopic:   RURAL MAIL ROUTES
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CON

Arthur Sauvé (Postmaster General)

Conservative (1867-1942)

Mr. SAUVE:

Tabled herewith.

Topic:   QUESTION PASSED AS ORDER FOR RETURN
Subtopic:   RURAL MAIL ROUTES
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PUBLIC WORKS-NOVA SCOTIA

LIB

William Duff

Liberal

Mr. WILLIAM DUFF (Antigonish-Guysborough) moved:

For a return giving a list of all federal public works started or contemplated in Nova Scotia, by constituencies, since April 1, 1932; the nature of same, whether wharves, breakwaters, etc.; whether such works are on regular estimates or undertaken as relief measures; the amounts expended or to be expended during the current fiscal year; names of localities and foremen of construction; current rates of wages paid.

Topic:   PUBLIC WORKS-NOVA SCOTIA
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Right Hon. R. B. BENNETT (Prime Minister):

I think if the hon. gentleman will look at the terms of his motion he will observe that the words "or contemplated" are contained in it. I think these words should be deleted before the motion is passed. This house does not pass resolutions dealing with matters in contemplation until such time as those matters take concrete form. '

Topic:   PUBLIC WORKS-NOVA SCOTIA
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CON

Pierre Édouard Blondin (Speaker of the Senate)

Conservative (1867-1942)

Mr. SPEAKER:

Shall the motion carry, with the words "or contemplated" deleted?

Topic:   PUBLIC WORKS-NOVA SCOTIA
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

And the corresponding

words with regard to expenditures.

Topic:   PUBLIC WORKS-NOVA SCOTIA
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CON

Pierre Édouard Blondin (Speaker of the Senate)

Conservative (1867-1942)

Mr. SPEAKER:

Perhaps the motion had better stand and be rewritten.

Motion stands.

Topic:   PUBLIC WORKS-NOVA SCOTIA
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IMPERIAL ECONOMIC CONFERENCE

MOTION FOR APPROVAL OF TRADE AGREEMENT MADE BETWEEN CANADA AND THE UNITED KINGDOM

CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Right Hon. R. B. BENNETT (Prime Minister) moved:

That it is expedient that parliament do approve of the trade agreement entered into at Ottawa the 20th day of August, 1932, between representatives of His Majesty's government in Canada and of His Majesty's government in the United Kingdom, and that this house do approve of the same, subject to the legislation required in order to give effect to the fiscal changes consequent thereto.

He said: I have the great honour and satisfaction of presenting for the approval of this house, certain trade agreements made between Canada and the other countries of the British Empire at the Imperial economic conference, recently held in this city.

These agreements are as follows:

1. Agreement between His Majesty's government in the United Kingdom and His Majesty's government in Canada.

2. Agreement beween His Majesty's government in the Dominion of Canada and His Majesty's government in the Union of South Africa.

3. Agreement between His Majesty's government in Canada and His Majesty's government in the Irish Free State.

4. Agreements between His Majesty's government in Canada and the government of Southern Rhodesia.

These agreements mark the first forward step in a definite scheme of closer empire economic association. They are based upon the principle enunciated by the Conservative party before the last general election, and steadfastly supported by it from that time to the present. They conform to the general plan proposed by this government at the economic conference held at London two years ago, reaffirmed at the opening of the Ottawa conference, and adopted in a very practical way by the agreements which are the outcome of its deliberations.

At the economic conference held in London in October, 1930, I submitted, on behalf of the government of Canada, a plan for closer econ-

110 COMMONS

Imperial Conjerence-Trade Agreements

omic association, predicated upon the general adoption of preferential tariffs. At that time the empire as a whole was not ready to accept this plan. At the economic conference recently held in this city, I resubmitted in principle my earlier proposal by offering to the United Kingdom: (1) an extension of the list of articles admitted free into Canada from empire markets; (2) retention of the existing preferences in favour of Great Britain; and (3) increased preferences in respect of a selected list of articles in which Great Britain was especially equipped to supply the Canadian market without injuring efficient Canadian enterprise, and in exchange I asked: (1) for the retention of existing preferences; and (2) their effective extension to those other natural and processed products of which the United Kingdom is an importer.

My proposal involved the adoption of measures to safeguard the operation of the agreement from the unfair competition of countries whose state controlled standards of living, state controlled labour and state aided dumping, dictated by high state policies, conflicted in theory and in practice with the free institutions of the British Empire.

As at London in 1930, so at the conference at Ottawa, I explained that the desire of this government was to secure a greater empire market for its natural products. And here I said that while in the past, Canada's manufactured products have enjoyed a measure of protection in the home market, our natural products have enjoyed little or no tariff advantage over their foreign competitors in empire markets. I made it clear that in our opinion, the ideal application of the principle of protection involved an equalization of benefits thereunder as between manufactured and natural products, and said that it was the desire of this government to effect that equalization and to find a way for our exporters into empire markets by giving the exporters from those markets a way into ours.

In brief, I proposed that we should secure tariff preferences in empire markets for our natural products, as well as wider markets for our manufactured products, by granting in the home market tariff concessions to empire manufacturers. In other words, we desired to secure wider empire markets for our producers of natural and manufactured products, having regard to the relative importance to them of export trade.

How far this government succeeded, you may judge by the character of the agreements to which it is a signatory.

I do not wish to create the impression that as a result of this conference we are putting into operation a plan that will secure at the outset the greatest possible development of the empire's trading potentialities. When we remember that the British Empire, as we know it to-day, has within its boundaries one-quarter of the human family, representing every shade of economic diversity, it would have been folly to expect that we should have secured at the outset the maximum benefits in preferential trade of which the empire is capable.

What I do mean to say, however, is that after almost half a century of hopes and fears, and vain endeavour, the countries of the British Empire have at last come together in agreement, based upon the principle of reciprocal and mutually advantageous tariff preferences; and have, moreover, by their common trust and zeal, prepared the way, not only for the practical working out of existing agreements, but for their augmentation at such times as our common interest may suggest.

These agreements were made in good faith between friends and kinsmen. They do not represent the result of dispassionate bargaining. And despite the unpatriotic efforts made by some to create the impression that the primary interest of each of the delegations was to benefit its own empire state at the cost of all others, I can tell you that while naturally and properly each delegation did its best for its own country, we all realized that no agreement could be lasting or beneficial which was one-sided, and we tried, while advancing our own position, to be constantly mindful of the position of other parties to the negotiations. In the result, we have agreements which, I claim, are fair and because of their fairness, I believe, will be enduring. It is in our interest that they should be enduring, for in my view advantages under these agreements are not secured through drying up world channels of trade. On the contrary, the more profitable shall be our inter-empire trade, the greater the volume of commodities which shall pass from one country to the other, the more certain it is that Canada as well as the other dominions of the empire will be the better able to reach out into other markets and there secure the further advantages required to put this country into that position in w'orld commerce which it is the aim of this government to secure.

Imperial Conference-Trade Agreements

It is not my purpose to deride the efforts of past Canadian governments to secure that scheme of empire trade which, with all humility, I may claim we have helped to bring about. Nor, at this time, do I wish to point the moral and suggest that the policies of this government, those which throughout the long years the party it represents has so unswervingly supported, must inevitably be the only policies on which a mutually beneficial plan of empire trade could be developed. I rather choose, at this anxious time in our country's history, to return thanks that the peoples of the empire, conscious of the benefits which must flow from closer economic association, were able, through selfdenial and patience and a capacity to see the other's point of view, to inaugurate an imperial tariff policy from which every one of them must obtain real and lasting advantage.

I ask my honourable friends on the other side of the house to accept these agreements in that spirit. I ask them before they prejudice the success of them by criticism induced by the consciousness that we have done what they failed to do, to remember that these agreements are for the good of Canada, for the good of the empire, and that these considerations at this time particularly should transcend the interest of party. I do not ask them to defend their failures of the past I do not even wish to put them in issue.

In addressing the house on April 26 last I placed on Hansard extracts from the memorandum submitted by Sir Wilfrid Laurier to the British government at the Colonial conference of 1902. It was at that time you will recall, that Sir Wilfrid Laurier, ceasing to agree with his delegate colleagues, took a very definite stand with respect to imperial preference. Let me requote from the memorandum this paragraph so apposite to the discussions on this subject today:

The Canadian ministers stated that if they could be assured that the Imperial government would accept the principle of preferential trade generally, and particularly grant to the food products of Canada in the United Kingdom exemption from duties now levied, or hereafter imposed, they,, the Canadian ministers, would be prepared to go further into the subject and endeavour to give to the British manufacturer some increased advantage over his foreign competitors in the markets of Canada.

I now only ask, and I sincerely hope that the parliament of Canada, now seeing accomplished the task which was attempted by that distinguished leader of the party which now sits to the left of the Speaker, can with one voice, approve the agreements which nothing

but mutual trust and confidence, mutual hope and the common appreciation of the fundamental principles on which empire business should be conducted, could have brought about.

Canada will carry out her part under these agreements in the spirit in which they were made, and no good Canadian will dare tc suggest that any empire country will be be. hind us in a recognition of those obligations not evidenced necessarily by the written word, but of the very warp and woof of the arrangements we have so painstakingly concluded.

It is not my intention at the present time exhaustively to analyse the agreements made by this government. I shall, however, indicate the basic principles contained in them and outline the advantages we have secured for the concessions granted, keeping you mindful of the fact that this government, on its own behalf, claims nothing more than that Canada's 'best interests have been maintained by the agreements I have tabled, and an equitable balance of benefits between agriculture and industry, so essential to the welfare of this country has been secured.

The agreement with the United Kingdom is naturally the agreement of primary importance to us. We have given to the mother country increased advantages which are set out in detail in the tariff resolutions to be submitted to the house by the Minister of Finance.

Topic:   IMPERIAL ECONOMIC CONFERENCE
Subtopic:   MOTION FOR APPROVAL OF TRADE AGREEMENT MADE BETWEEN CANADA AND THE UNITED KINGDOM
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SUMMARY OF PROPOSALS AS TO CHANGES IN CUSTOMS TARIFF OF CANADA


The resolution to be introduced embodies a schedule comprising 262 tariff items which have been amended in rates or wording, or both. This schedule, since tariff items run necessarily in numerical sequence, covers not only the concessions granted by Canada to the United Kingdom but also those arising cut of the negotiations with various other units of the British commonwealth. Of the total of 262 above referred to, some 37 are existing items in which the amendments are purely technical in character-mere changes in wording necessitated by the insertion of the new items resulting from the-conference. This means, therefore, that there will be introduced to the house 225 substantive tariff items which actually alter our existing tariff schedules; and on 223 of these the British preference is materially increased. Nor is this increased preference granted in any piecemeal fashion; although by far the greater Ii2 COMMONS Imperial Conference-Trade Agreements number of the concessions concern, for the present at least, only the United Kingdom, the preferences afforded to the mother country are extended, without reservation, to the various dominions and colonies. The 223 items above mentioned as those on which the empire trading margin is widened may be classified as follows: Items in which the result is secured by: (a) reduction of the British preferential rate only 81(b) increase in the intermediate or general rate, or both 89(c) reduction in the British preferential rate accompanied by increases in the intermediate or general rate,or both 49(d) reduction in all rates 2(e) increase in all rates 1(f) reduction in British preferentialand intermediate rates 1 As the tabulated items will appear in Votes and Proceedings, they will bear ratings in two parallel columns-"Proposed" and "Present". An analysis of the latter column will reveal 81 items free of duty under the British preferential tariff; a count of the "Proposed" column will show 137 such free items. Important as is each item in this schedule from the point of view of inter-empire and world trade, the mere arithmetical total thereof does not begin to reveal the significance of the proposed fiscal arrangement. In some cases one new item-such as, for instance, that covering chemicals and drugs of a kind not produced in Canada-embraces within its few words a field of trade and commerce that is almost illimitable, and that will grow in scope with the development of science and industry. Again, from various large group divisions of our tariff sets of key items have been selected for empire-treatment; often these key items may represent only one-tenth of the total number of any given commodity-group but may be responsible for nine-tenths of the imports within that group. Further, the items amended are very largely those which were earmarked by various of the imperial delegates as those in which they were peculiarly and especially interested and therefore may fairly be described as meeting, by and large, the desires of those other portions of the empire which came to Ottawa in search of wider avenues of trade. Considering only the major groups which are comprised within the proposals now to be [Mr. Bennett. 1 tabled, we may begin with that relating to iron and steel. The basic forms of these were the subject of unofficial industrial conversations at Montreal, just prior to the conference, between the producers of the United Kingdom and Canada; and the legislation now proposed will, it is believed, crystallize in tariff verbiage the spirit of those negotiations which were conducted in an atmosphere of hearty cooperation and good will. The first feature of these proposals is a very material widening of the preference on primary forms of great commercial importance, such as steel plate; black, galvanized and tinned sheets; boiler plate; and various kinds of strip and hoop steel. Duties under the British preferential tariff are removed entirely on poundage steel in bars, large bars for shafting; casement sections, rust and heat-resisting steels, silicon sheets for electrical use, cooperage steel, tramway rails, heavy structural shapes and sections, centre and side sills for steel cars, hollow forgings, power equipment for dairying purposes, automobile engines of heavy rating, telephone and radio apparatus and special-type storage batteries. On steel tires, railway axles, wire products, steel chains, certain machinery, cutlery and small tools, the preferential margin is widened. Automobiles, motor trucks and motorcycles are embraced in the iron and steel schedule and these are made free of duty under the British preferential tariff.


TEXTILES


Cottons: In so far as the British preferential tariff is concerned, the specific duties on cotton goods -from yarns to clothing-are reduced by one-third on every item on which, at present, specific duties are operative, the sole exception being that covering cotton velveteens, on which the specific duty is removed entirely and the ad valorem duty reduced. Cotton fabrics composed of yarns of a certain fineness are made free of duty, as are typewriter ribbons and cotton bobinet. A wide preference is provided for on mercerized cotton yarns, with free entry under the British preferential tariff. Woollens: Under the British preferential tariff, the specific duties on woollen goods-from yarns to clothing-are reduced by one-quarter on every item on which, at present, specific duties are operative, the exceptions being those covering blankets and carpets, on which the specific duty is cut in half, and those Imperial Conference-Trade Agreements relating to hair yarns, lustres and linings, gray fabrics four ounces or less in weight, and billiard cloth, all of which are made entirely free of duty. Linen Textiles: All linen fabric and articles made therefrom of the finer grades and weaves, such as are not made in Canada, are made free of all duty under the British preferential tariff, as are, also, certain jute fabrics.


LEATHER

October 12, 1932