Hon. J. L. ILSLEY (Acting Prime Minister) :

Mr. Speaker, I beg leave to lay on the table an order in council which establishes the Canadian information service. This service is being set up to provide for the distribution of information about Canada to the peoples of other countries.

Canadian Information Service

The need for such a service has been generally recognized. Canada has a vital interest in international peace and prosperity, and an important part to play in the attainment of these objectives. It is essential, therefore, that our people and country be known and understood abroad.

Those with whom we trade must know our country and its possibilities; those with whom we are associated for the maintenance of world security must know with whom they are cooperating, and what may be expected of our cooperation. In short, both trade and diplomacy, to be carried out successfully, need a background of understanding based on factual information objectively presented.

During the war years Canada's diplomatic representation abroad has had to be increased to keep pace with our increased obligations. In 1939 we maintained only four missions; to-day we have high commissioners in all the capitals of the commonwealth, and ambassadors and ministers in many other countries. At the same time the network of trade commissioners is being increased with a view to giving the utmost help to Canadian trade, which means, in the last analysis, help to every Canadian. All these representatives need to be kept thoroughly informed about what is going on at home.

During the last three years, pioneer work in the way of supplying information abroad has been done through the wartime information board, in conjunction with embassies, legations and trade commissioners. It will be the first duty of the new service to develop adequate reference and information services for all these Canadian representatives abroad. For this reason it was considered advisable to retain an interdepartmental, rather than a purely departmental, service.

The service is to be directed by a committee on which departments and agencies primarily interested in external peace-time information are represented. This committee will be under the chairmanship of A. D. P. Heeney, deputy head of the Privy Council office. It will also include Norman Robertson, Under-Secretary of State for External Affairs; M. W. Mackenzie, Deputy Minister of Trade and Commerce; Doctor Augustin Frigon, general manager of the Canadian Broadcasting Corporation; the government film commissioner, and the director of the Canadian information service.

Geoffrey C. Andrew, who has been secretary of the wartime information board for more than two years, and more recently has been acting as general manager, has been appointed director of the new service.

I should like to pay a word of tribute to the work which the wartime information board, and before it the director of public information, performed during the war years. The establishment of an information agency was a relatively new venture for Canada. It was a necessary task, and a difficult one, and much useful work has been done. Since V-J day the board has been steadily cutting down its services within Canada. A few days ago the last general manager of the wartime information board, Mr. A. D. Dunton, returned to his peace-time employment as editor of the Montreal Standard. I think it proper to say that he takes with him the thanks and admiration of all Canadians who can recognize a good and difficult job well done.

Hon. J. L. ILSLEY (Minister of Finance):

I desire to announce to the house that a basis of settlement has been agreed upon with the province of Saskatchewan in reference to the seed grain dispute, so-called, which has been going on between that province and the dominion government. Under this settlement the balance owing the dominion by the province of Saskatchewan in respect of the 193S seed grain loan will be paid by the province as follows:

$6,626,664.68 to be paid monthly as collected from municipalities and to be paid in full as an obligation of the province by July 31, 1948.

$7,570,123.72 to be paid by the province over a period of eleven years.

Pursuant to this settlement the province will undertake to collect in the immediate future the amount owing by the farmer debtors under the compromise which the province made with them last year. As such moneys are collected from the farmers they will be paid by the province to the dominion. The balance of the total outstanding indebtedness will be paid by the province to the dominion, as I have said, over a period of eleven years and will be secured by noninterest bearing treasury bills of the province.

I may add that a statement substantially to this effect was given to the press last night, but it was reported as indicating that the dominion had undertaken to forgo the collection of some $2,272,000 of the principal. That is not correct. The $2,272,000 has been collected from the province already by way of deductions from payments to the province-

under the tax agreements, leaving $14,196,788 still due, the settlement of which has been arranged in the manner 1 have indicated.

The matter, I think, has been settled on a basis satisfactory to both the dominion and the province, and my hope is that future relations between the dominion and the province in regard to this matter will be harmonious and cooperative, and that there will be no further dispute or misunderstanding arising out of the seed grain loans.

Mr. JOHN BRACKEN (Leader of the Opposition):

May I ask if it is a proper inference to take from this statement, that as a result of this adjustment there will be no loss to the dominion treasury, but that the adjustment is more in the way of postponing the payments due the dominion?

Mr. ILSLEY:

And the forgoing of interest accruing from December 11, 1944, on. The principal and interest accruing to December 11, 1944, are all to be paid in the manner I have indicated.

Mr. BRACKEN:

Then the government has lost interest for only one month, or less?

Mr. ILSLEY:

No, interest spread over various periods. The instalments are spread over a term of eleven years. A fairly large amount is concentrated in the early part of that period, but to the extent that those payments were not made on demand the dominion government is forgoing the interest.

Mr. BRACKEN:

Was that just an arbitrary adjustment, or was some principle involved?

Mr. ILSLEY:

Oh, I may say there were negotiations.

Mr. LOCKHART:

What was the total amount forgone by the dominion government?

Mr. ILSLEY:

None in the way of principal.

Mr. LOCKHART:

But in the way of interest?

Mr. ILSLEY:

I do not know.

Mr. LOCKHART:

You should know.

Mr. ILSLEY:

There is no way of computing it with accuracy, because of the fact that the collections from the farmers are to be paid at the end of each month, as collected. If they are all collected at once, then there will be a smaller amount forgone in the way of interest than if they are not collected so quickly.

Mr. FRASER:

May I ask the minister-

War Charities Act __________

Order.

Mr. FRASER:

-a question in connection

with the information board?