Mr. HANSON (York-Sunbury):

There is

nothing wrong with the statement. The telegram came on March 12 and I did not see it until March 13.

Mr. DUFF:

But the minister said " a telegram was received this morning -not that it came on the twelfth.

Mr. HANSON (York-Sunbury):

Received

by me.

Mr. DUFF:

There is no question in my

mind that the minister got his telegram when I received mine which was about twelve o'clock noon on March 13. The minister has tried to give himself the credit, and has tried to place himself in a position which would indicate that he received the telegram before I did, in fact he stated yesterday he had received representations long previous to my bringing it before the house. He now admits he did not state the facts.

Order.

Mr. DUFF:

I can understand hon. members yelling " order," but I will not let the minister put this over, because I am in closer touch with the Santo Domingo situation than he or any other member of the government has been or is.

Hon. R. B. HANSON (Minister of Trade and Commerce):

Mr. Speaker, yesterday the

hon. member for Bonaventure (Mr. Marcil) asked a question respecting the Italian duty on salt fish, and I should like to make the following answer:

Dried codfish, of which exports to Italy were about one-half million dollars in each of the calendar years 1933 and 1934, had been entering Italy free of duty up to September 24, 1931. On that date a special new duty of 15 per cent ad valorem was introduced and applied to imports in general, including codfish. There has been no change in the Italian tariff on codfish since that date.

An Italian royal decree law, effective on February 19, 1935, instituted an import licence system affecting practically all imports into Italy. The purpose of the system was officially

British Columbia Relief Camps

stated to be the maintenance of the value of Italian currency by reducing a rising adverse trade balance.

Import control is exercised by allowing the importation of fixed percentages of what was imported during the corresponding period in the year 1934. The percentage limits vary for different products and range from 10 per cent to 35 per cent, the percentage for codfish being fixed at 20 per cent. The quotas are fixed with reference to total imports into Italy, regardless of the country of origin and without discrimination against any particular supplying country. There is a provision, however, that imports may be increased from countries which agree to purchase Italian exports either by means of clearing agreements between the exporting country and Italy or by barter agreements between individual Italian and foreign firms.

Provision is further made for modifying these quota restrictions by means of trade agreements effected between Italy and other countries. In such case a larger quota may be allotted for the country concluding an agreement with Italy based also on a percentage of previous total imports. Shortly after the Italian quota restrictions came into force steps were taken to enter into negotiations with Italy for the conclusion of an agreement which would result in larger quotas being accorded to Canadian products. In this regard an offer has been submitted to Italy and we are now awaiting the outcome of the discussions which have taken place.

Mr. ANGUS MacINNIS (Vancouver South):

I would like to direct a question to the Prime Minister in reference to the situation in Vancouver because of the presence there of a number of men from the unemployment relief camps. In this morning's paper-

I have the Ottawa Journal before me-there is the report of a statement made by the mayor of Vancouver when meeting a number of representatives of the men yesterday, and I should like to quote very briefly from the statement of the mayor, and then base my question upon what I have read. The mayor, in a telephone conversation I believe with the hon. Minister of National Defence (Mr. Stirling) said:

A condition exists which justifies the national government intervening to bring about a settlement which would avoid any clash betw'een the strikers, their sympathizers and

the police. Although I got no encouragement from Mr. Stirling that the national government would cooperate, he finally agreed to submit the proposal to Prime Minister Bennett.

I would ask the Prime Minister if this matter has been drawn to his attention and if he has any statement to make to the house.

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

Mr. Speaker, if the hon. gentleman had been good enough to give me some intimation that he proposed to ask the question I would have brought with me papers that would have enabled me to deal with the matter in more detail. I shall be glad, however, to make a statement now subject to any corrections that may be necessary, relying entirely as I do upon my memory for the present statement.

In the early part of this year, as well as last year, representations were made by the provinces that they were unable to care for their unemployed without assistance from the federal government. The federal government did make contributions in money to enable the provinces to care for the unemployed, as is their constitutional duty.

Another question, however, arose with respect to transients, single unemployed men, and with respect to them the provinces other than Prince Edward Island urged that steps be taken by the federal government to provide entirely, so long as they remained in the camps, for the upkeep of these men-. The federal government acceded to that request and camps were established in every one of the provinces except Prince Edward Island for single unemployed men. These men were supplied with food, with shelter, with clothing, and a small per diem allowance for incidentals. There has been no trouble of any importance in any of the provinces except British Columbia.

The conditions under which these camps were maintained were three : First, that there should be the power of rejection with respect to applicants who were known to be of a troublesome character and whose introduction into the camps was solely for the purpose of making trouble. Secondly, there were no disciplinary measures contemplated or provided for. Thirdly, whenever an opportunity for work offered, any person who was in these camps might avail himself of that opportunity for work. In addition to that steps were taken where regular employment was offering to point out to those in the camps that the opportunity was afforded to them to find employment.

Last year the premier of British Columbia and his attorney general represented to this

British Columbia Relief Camps

government that they were experiencing great difficulties in connection with logging operations in that province through the activities of agitating communists. They had no hesitation in saying that that was so. In the month of April this year we were advised that a strike might be imminent in the camps in British Columbia, and the British Columbia authorities were advised accordingly. Might I state here what must be known to every member of this house, that the federal government under our constitution cannot take any steps towards the preservation of law and order or the administration of criminal law in any province of this confederation except at the request of the provincial authorities. We therefore cannot do any legal act with respect to those who are themselves engaged in illegal transactions except such action be taken at the request of the province.

Owing to the agitation that took place, owing to the action of the agitators in the camps of British Columbia, large numbers of the men left their camps and went into the city of Vancouver. The result was that there was a large number of unemployed single men from these camps who claimed that the province should supply them with sustenance. The province, of course, could very properly reply that they did have sustenance provided for them in the camps, but the men would not go back to the camps and have not gone back to them. In the meantime, for reasons that are best known to themselves, the provincial authorities have intimated that a duty was cast upon the federal government to expand its currency by a species of inflation and provide work and wages in that manner for those who had left the camps and gone to the city.

I have not yet sent a communication to the premier of British Columbia except in general terms when last night a message was dispatched to the mayor of Vancouver and a copy sent to him, for there is no medium of contact between the municipalities and the dominion with respect to matters of law and order. The province, and the province alone, is the competent authority with which the dominion deals, and can only deal so far as our constitution is concerned until it is amended from its present form. I have drafted a communication to the premier of British Columbia in which I have endeavoured to point out that if the province fails in its duty to prevent a condition of chaos and anarchy arising, if they fail in their duty to maintain law and order in the province of British Columbia, it will only be because they have not availed themselves of

the opportunity of requesting the federal government to lend them such assistance as may be required for that purpose, for until that is done any action on the part of this dominion would be wholly illegal and would be a compromising of our own position with those who may themselves be violating the law. Ever since there was the first intimation that in the province of British Columbia there was dissatisfaction it has always been maintained by the federal government that they are ready and prepared to discuss with the provincial government the situation in all its details. We have again repeated that position. But I do assert, and I believe I represent the considered opinion of every thoughtful man in this dominion, that as long as there are incentives being given to men to maintain a chaotic and anarchic condition in the city of Vancouver or elsewhere in the province of British Columbia, there can be no adjustment of differences or difficulties. The differences and difficulties, whatever they may be, the federal government will be glad to consider with the provincial government, but it is a condition precedent to any such action that law and order be maintained by those who are responsible for it, and if they are unable to do so that they call upon the federal government for such assistance as will enable them to do so. There can be no trifling with anarchy, there can be no playing with chaos, and so far as this government is concerned it proposes within the ambit of its power to be always ready and willing to assist those who are charged with that responsibility if they find themselves unable so to do themselves. But mob violence, mob threats, mob law will not be the means by which to deal with matters of this kind between the province of British Columbia and the Dominion of Canada.

Right Hon. W. L. MACKENZIE KING (Leader of the Opposition):

May I ask the

Prime Minister if I were right in understanding him to say that the only assistance asked by British Columbia was in the nature of inflation of the currency by the federal government?

Mr. BENNETT:

No. I said involving inflation of the currency, providing work and wages, which is a favorite panacea suggested by the premier of British Columbia and the mayor of Vancouver for dealing with this problem.

Mr. MACKENZIE KING:

Is that the

only form in which the request was made?

Loan Flotation

Mr. BENNETT:

There may have been

other requests added to that. I have simply reviewed the facts as carefully as I could, speaking from memory and in view of the limited time at my disposal since I returned, but that is the fact as I read it from the communications that have come to the federal authority.