October 15, 1945

ST. LAWRENCE WATERWAY STATEMENT OP ACTING SECRETARY OP STATE FOR EXTERNAL AFFAIRS


On the order for motions: Hon. L. S. ST. LAURENT (Acting Secretary of State for External Affairs): I should like at this time to make a brief statement which was asked for by the hon. member for Broadview (Mr. Church) on October 4. as reported at page 756 of Hansard. The hon. member asked: Will the acting leader of the house be in a position to make a statement within a few days regarding the St. Lawrence waterway, in view of the message of President Truman to Congress yesterday recommending an early start? In reply the Minister of Veterans Affairs (Mr. Mackenzie) stated that the question would be referred to the Acting Secretary of State for External Affairs. I have had the statement prepared and I think it should be communicated to the house. The Great Lakes-St. Lawrence Basin agreement was signed at Ottawa, March 19, 1941. It makes provision for the development of navigation and power resources within the Great Lakes-St. Lawrence basin for the joint account of the peoples of Canada and the United States. Generally, it covers the same fields as the Niagara convention of 1929 and the St. Lawrence waterway treaty of 1932. 2. Immediately after the signing of the agreement, a white paper, including correspondence and documents relating to the Great Lakes-St. Lawrence basin development, was tabled in the House of Commons on March 21, 1941. For the convenience of the members of the house I am tabling additional copies, both in English and in French, of the white paper: Correspondence and documents relating to The Great Lakes-St. Lawrence Basin development, 1938-1941. I am also tabling copies, both in English and in French, of an additional white paper: Correspondence and documents relating to The Great Lakes-St. Lawrence Basin development, supplement No. 1; (i) legal opinions; (ii) summary of outstanding features. 3. The agreement provided for ratification and it was made subject to approval by the parliament of Canada and the congress of the United States of America. In this respect, it differed from the 1932 treaty which required the observance of "constitutional methods" St. Lawrence Waterway before ratification. The 1932 treaty could only be ratified by the President of the United States if approved by a two-thirds majority of the senate. The present agreement could only be ratified by him if it were approved by joint resolution of both the senate and the house of representatives. 4. Accordingly, the agreement was submitted to the house of representatives in 1941 and referred to the committee on rivers and harbours. It failed, however, to obtain the necessary congressional approval and no action was taken by way of ratification either in 1941 or in succeeding years. 5. An attempt was made in the senate of the United States in 1944 to obtain the necessary approval by the adoption of what would have been a joint resolution, but it was unsuccessful. 6. Upon the initiative of the President of the United States of America, a joint resolution was introduced in the senate and in the house of representatives on October 2 of this year. The procedure followed is somewhat different from that which was adopted in earlier years and the joint resolution is fundamentally different. The earlier resolutions had been designed to provide for approval of the entire agreement with a view to ratification of the agreement and proceeding with the project. The joint resolution as presented both in the senate and in the house of representatives is different from the earlier resolutions in the following respects: (a) The resolution approves the agreement with the exception of articles VII and IX and authorizes the President to fulfil the undertakings, other than those which are contained in these articles, upon approval of the agreement, with the exeception of the articles in question, by reciprocal or concurrent legislation in Canada. (b) The resolution indicates that it is the view of congress that the President should negotiate with Canada a treaty or treaties covering the subject matter of articles VII and IX, including the provision with respect to perpetual navigation rights on the great lakes, on the connecting channels and canals, and in the wholly Canadian sections of the St. Lawrence river, and provisions for the amendment of the Boundary Waters Treaty of 1909 with respect to the diversion of waters at the Niagara river, and should submit the treaty for the advice and consent of the senate. (c) The president is directed to provide for the investigation of the feasibility of making the project self-liquidating by the imposition 47696-68J of reasonable charges or tolls on the foreign commerce of the two countries utilizing the facilities. (d) Provision is made with respect to the appropriation of funds and there is a declaration to the effect that no exchange of notes under article I, section 4 of the agreement is to impose additional financial or other obligations on the United States. (This refers to a power enabling the governments, by exchange of notes, to prescribe rules and regulations for the conduct of the Great Lakes-St. Lawrence Basin commission, to expand or abridge its powers and duties, to reduce, or after reduction, to increase the number of members, and to wind up the commission. The declaration does not, however, change the obligations of the governments in any respect, as the limitations would be implied in the absence of an express provision of this sort.) (e) The President is authorized, by arrangement with the government of the state of New York, to transfer the power facilities to the appropriate agency of the state in accordance with certain principles and there is a proviso that the arrangement must be consistent with the laws of the United States and protect the interests of the United States and of other states and also that the arrangement is to be subject to approval by congress and the legislature of the state of New York. 7. For the information of the members of the house, I am tabling three copies, in English, of the joint resolution which has been introduced both in the senate and in the house of representatives of the United States of America and, if this course meets with the approval of the members of. the house, the text of this joint resolution could be printed in Votes and Proceedings. May I take it that I have the unanimous consent of the house? Some bon. MEMBERS: Consent. Mr. ST. LAURENT: To continue: 8. If the joint resolution is approved by congress, it may be necessary for the dominion government to confer with the governments of the province of Ontario and Quebec. The existing arrangements, so far as Ontario is concerned, are embodied in the agreement at page 11 of the first white paper and in the correspondence at pages 43-45. The arrangements with the province of Quebec are embodied in the correspondence at pages 66-72. Consideration of the question as to whether the modifications involved in the procedure now before the congress of the United States of America present any difficulty from the Canadian point of view must, necessarily, be deferred until a later stage. St. Lawrence Waterway



9. It is difficult, if not impossible, to forecast the time which will be taken (a) in dealing with the matter by the congress of the United States of America; (b) in negotiating the additional treaty, and (c) in consultations with the provinces of Ontario and Quebec, but there would seem to be a good deal of doubt as to whether the matter is likely to reach a stage at which it can be presented to parliament during the present session. In the meantime, the proceedings in congress do not in any way of course commit the parliament or government of Canada in any respect.


PC

Gordon Graydon

Progressive Conservative

Mr. GORDON GRAYDON (Peel):

As I followed the minister's statement, he indicated that the agreements which had been before the two countries, with the exception of articles YII and IX, were now being submitted to congress, through presidential action. The minister, however, did not make one point clear. Did the President of the United States or anyone acting on behalf of the government of that country submit the agreement, with the exception of articles VII and IX, to the Canadian government or any of its members, before it was presented to congress in the changed form in which it appears to have come before that body? In other words, it seems to me the President of the United States is now submitting to the congress something different from that which had originally been agreed upon between the two nations. I am wondering whether he, or someone representing the United States, had consulted with the Canadian government in respect of those changes, before the submission was made to congress.

Mr. ST. LAURENT: I would not be in a position to give a positive answer to my hon.. friend at the moment. My understanding, however, is that there is no intention of modifying the substance of the agreement, but rather that this proceeding has been adopted because it was felt there that with respect to all the subject matter of the agreement, not including articles VII and IX, it could be dealt with by joint resolution of the two houses of congress. It was felt, however, that with respect to articles VII and IX there should be a formal treaty. This of course would require for purposes of ratification a two-thirds vote of the senate of the United States. There were conversations, or exchanges of views, with respect to the procedure to be adopted, and Canada voiced no objection to the attempt being made to have the matter submitted in the form that is now contemplated in the United States. We. of course, will await further developments there before

determining what the subject matter of our further negotiations with Ontario and Quebec should be.

Topic:   ST. LAWRENCE WATERWAY STATEMENT OP ACTING SECRETARY OP STATE FOR EXTERNAL AFFAIRS
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PC

Gordon Graydon

Progressive Conservative

Mr. GRAYDON:

As this has now been put upon Hansard, perhaps the minister will supplement his statement by indicating generally what articles VII and IX, which are not before the members of the house, deal with in connection with the agreement.

Mr. ST. LAURENT: I would not like to

undertake that from memory. This is an international agreement, and I would not want to go beyond what is contained in the statement. Articles VII and IX include provisions with respect to perpetual navigation rights on the great lakes and the connecting channels and canals, and on the wholly Canadian sections of the St. Lawrence. There are also provisions to amend the Boundary Waters Treaty Act, 1909, with respect to the diversion of water at Niagara. These matters were covered by treaty, and my understanding is that it was felt they should not be varied in any way by an agreement that did not take the form of a treaty; that even though they were incidental to the agreement they should nevertheless be dealt with separately on the basis of a treaty and submitted in the usual way to the senate of the United States for its consideration.

Topic:   ST. LAWRENCE WATERWAY STATEMENT OP ACTING SECRETARY OP STATE FOR EXTERNAL AFFAIRS
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PC

Gordon Graydon

Progressive Conservative

Mr. GRAYDON:

Canada is not voicing

any objection to this taking the form of a treaty rather than being included in the joint agreement?

Mr. ST. LAURENT: Oh, no; so far as

Canada is concerned our procedure with respect to the international agreement will b& the same, whether it be in the form of a treaty or in any other form. In either case it is to be brought to the houses of parliament for consideraiton.

Topic:   ST. LAWRENCE WATERWAY STATEMENT OP ACTING SECRETARY OP STATE FOR EXTERNAL AFFAIRS
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PC

Gordon Graydon

Progressive Conservative

Mr. GRAYDON:

I suppose the procedure

taken in the congress of the United States does not affect us so far as parliament is concerned?

Mr. ST. LAURENT: Does not substantially affect us. It presents to us the same substantive matter in a slightly different form. So far as we are concerned, whether it be in the one form or in the other, our method of dealing with it will have to be the same.

Topic:   ST. LAWRENCE WATERWAY STATEMENT OP ACTING SECRETARY OP STATE FOR EXTERNAL AFFAIRS
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EXTRADITION

ARRANGEMENT BETWEEN CANADA AND THE UNITED STATES


Hon. L. S. ST. LAURENT (Acting Secretary of State for External Affairs): Mr. Speaker, there is another matter with respect to which considerable public interest has been manifested and which I think should be made Questions public just as early as can be. It has to do with the extradition arrangements between Canada and the United States. Extradition arrangements between Canada and the United States have in the past been based upon treaties between the latter and the United Kingdom government and extending over a long period of years. A new extradition treaty was negotiated between the United States and the United Kingdom some years ago. It did not extend to Canada, and provision was made to preserve extradition arrangements under the old treaties in so far as Canada was concerned. A new treaty with Canada was signed on April 29, 1942 and was approved by the United States senate in May of that year. On June 6, the president of the United States provided for ratification. The matter was about to be brought to the attention of. parliament for approval when protests were made from financial organizations from coast to coast in respect of possible offences relating to dealings in securities, and further action was deferred. An endeavour has since been made to formulate a protocol to overcome the substantial objections which were raised. It was recognized that it would be impossible to induce the United States to change their security laws so as to permit free marketing of securities within the United States without compliance with laws made for the protection of United States investors. On the other hand, it was recognized that protection must be given to Canadian business men engaged in legitimate business within this country and to Canadian publishers of advertising or other matter. Negotiations have been carried on with the United States representatives, and a protocol has been signed designed to carry out these objectives. For the information of the members of the house I am tabling copies in English and in French of treaty series 1942 No. 10, treaty for the extradition of criminals concluded between Canada and the United States of America, Washington, April 29, 1942, and copies in English and in French of protocol annexed to the treaty for the extradition of criminals between the United States of America and Canada which was signed at Ottawa, October 3, 1945. A resolution will be introduced in due course in both houses of parliament which will provide an opportunity for full discussion of this matter.


PC

Karl Kenneth Homuth

Progressive Conservative

Mr. HOMUTH:

Is it law now?

Mr. ST. LAURENT: No, it is subject to approval by parliament.

Topic:   EXTRADITION
Subtopic:   ARRANGEMENT BETWEEN CANADA AND THE UNITED STATES
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QUESTIONS


Questions answered, orally are indicated by an asterisk.)


CEILING PRICE ON WHEAT

CCF

Thomas John Bentley

Co-operative Commonwealth Federation (C.C.F.)

Mr. BENTLEY:

Is flour that is milled in Canada from western Canada wheat and sold on the export market subject to the export ceiling of $1.55 per bushel?

Topic:   QUESTIONS
Subtopic:   CEILING PRICE ON WHEAT
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LIB

James Angus MacKinnon (Minister of Trade and Commerce)

Liberal

Mr. MacKINNON:

Wheat for grinding into export flour is now sold to the mills by the Canadian wheat board on the same price basis as export wheat, that is, at the export price of SI .55 per bushel basis in store Fort William/Port Arthur or Vancouver. The great bulk of the export flour is sold to the United Kingdom, the U.S.S.R. and UNRRA and on these amounts the margins are fixed between the buyer and the mills. On the other smaller amounts going forward to other countries, the sales price is kept in relation to the $1.55 price by competition between the mills and the competition of U.S. flour, that is subsidized by the U.S. government to approximate parity with the Canadian export price of wheat.

Topic:   QUESTIONS
Subtopic:   CEILING PRICE ON WHEAT
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EMERGENCY SHELTER COORDINATION

PC

Mr. DIEFENBAKER:

Progressive Conservative

1. On what date was emergency shelter coordination established in Canada?

2. How many officials are employed?

3. What has been the total cost to date?

4. What cities have been placed under its

control ?

5. Under its administration how many persons-have been, (a) kept out of each of said cities; (b) given permits to enter each of these cities?

6. How many such persons are returned soldiers?

7. Are returned soldiers given any preference over civilians when applying for a permit to enter any of said cities?

Topic:   QUESTIONS
Subtopic:   EMERGENCY SHELTER COORDINATION
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LIB

Mr. MAYHEW: (Parliamentary Assistant to the Minister of Finance)

Liberal

1. December 19, 1944.

2. 17.

3. Wartime Prices and Trade Board, $342,600; Dept, of Public Works, $20,500: Total, $363,100.

4. Ottawa and district, Vancouver and district, Victoria and district, Toronto and district, Hull and district, Hamilton, and district, Winnipeg and district.

5. The permit system under the emergency shelter regulations was in effect until September 1, 1945, when it was discontinued. The number of families allowed to enter the areas is accurately shown by the number of permits granted, but the number of persons kept out of the area is not completely disclosed by the number of permits refused because in

Questions

many cases no formal application was made. No record is available of the number of families who were told during personal interviews or by letter that a permit could not be *granted. However, the record of formal applications granted and refused is as follows:

City Granted RefusedOttawa

2,919 679Vancouver

1,379 1,958Victoria

1,864 1.172Toronto

1,369 871Hull

658 258Hamilton

730 568Winnipeg

459 1076. Of permits granted and refused the fol- towing numbers were based upon applications from active and discharged service personnel: City Granted RefusedOttawa

1,428 72Vancouver

831 665Victoria

1,158 590Toronto no recordHull

63 62Hamilton

526 Winnipeg

309 Where blanks are shown above, no record

was kept.

7. The permit system is no longer in effect in any area in Canada and accordingly the question of preference to returned soldiers does not arise. When the permit system was in effect, permits were given without question to any service personnel who have served outside Canada for one year or longer.

Topic:   QUESTIONS
Subtopic:   EMERGENCY SHELTER COORDINATION
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MILITARY DISCHARGE DEPOT, P.E.I.

October 15, 1945