Hon. H. A. BRUCE (Parkdale):

Mr. Speaker, I am not quite sure that the subject with which I wish to deal for a moment is quite within the rules of the house, but I would ask your indulgence with the permission of the house. It arises out of the statement that was made a moment ago by the Minister of Justice in regard to the appointment of a chairman of the Canadian delegation to the cultural and educational conference of the united nations which is shortly to meet in London. The time would seem to be opportune to express through this parliament the appreciation of the people of Canada of the invaluable services rendered by the Right Hon. Vincent and Mrs. Massey to members of our armed forces during their stay in England. We particularly desire to commend them for the leading part they played in establishing the Beaver club for other ranks of the three services and an officers' club in London, where Mrs. Massey personally helped to serve meals d-aily, as well as for their initiative in taking over a large house in Herefordshire which they converted into a convalescent home and maintained at their own expense and where many of our wounded were restored to health.

In their eagerness to promote the social welfare of our men, they have been completely and heroically forgetful of themselves and their

own anxieties We desire to extend to Mr. and Mrs. Massey our grateful thanks for the personal contribution they have made to the happiness and well-being of our men overseas during these six trying years of war.

Hon. J. A. MacKINNON (Minister of Trade and Commerce):

Mr. Speaker, I wish to make an announcement regarding credit agreements which have been concluded under the Export Credits Insurance Act. These agreements have been entered into by the Minister of Finance under part II of the act, on behalf of the governor in council upon the joint recommendation of the Minister of Finance and the Minister of Trade and Commerce.

At noon to-day a loan agreement was signed with the Belgian government. The amount of the loan is $25 million, and it is to be used for the purchase of Canadian-produced goods. The credit is repayable in thirty annual instalments, commencing in 1947. This credit will bear interest at three per cent.

As hon. members will recall, the authority of the governor in council to make loans to foreign governments under the terms of the Export Credits Insurance Act was limited to $100 million. The Belgian loan to which I have just referred exhausts the lending authority of the government. At a later date the Minister of Finance will request the house materially to increase our lending capacity under the act, and full details of the lending programme will be available at that time.

Meanwhile, I thought that the house would appreciate knowing in a general way what has been done under the act of 1944. During the first half of this year, credit agreements were entered into with Czechoslovakia and the Netherlands. The amounts and terms of these loans were made public at the time. Loan agreements have more recently been made with the Netherlands, Netherlands Indies, Norway, and a small loan has been made to the U.S.S.R. I have arranged the details of these loans in simplified tabular form, as follows:

When Interest

Country Amount repayable rateBelgium

$25,000,000 1947-1976 3 %Czechoslovakia. 19,000,000 1950-1954 25%Netherlands .. 25.000.000 1950-1954 21%" Indies 15,000,000 1950-1954 2.|%Norway

13.000.000 1951-1959 2J%L.S.S.R

3,000.000 1950- 2 %

I should like to draw to the attention of the house the fact that the interest rates which are shown in the table are all equal to the rates

Export Credits

at which the dominion government itself can borrow for a term equal to the average term of the loan plus a small margin to cover overhead costs of borrowing in addition to the interest charges. The government is following this pattern as a policy in making loans to allied nations for reconstruction purposes. As a consequence the interest rate depends upon the average length of the loan.

In addition to the loans which I have just announced, the government has agreed with certain foreign governments to increase the size of the loans and to enter into loan contracts with other governments, if the necessary legislative authority is obtained from this house allowing us to do so. Norway, Belgium, the Netherlands, and the Netherlands Indies, all wish to purchase goods which are available in Canada, greatly in excess of the amounts which so far the government has been able to make available to them for this purpose. The comparatively small loan to the U.S.S.R. was made to cover a specific group of purchases, and consideration is being given to future and larger credits.

France wishes to make large purchases to assist her in her very difficult problems of reconstruction. If the necessary authority can be obtained, the government would be prepared to negotiate a loan with France to enable her to purchase Canadian goods to a value of nearly $250 million in addition to those goods which she is able to purchase for cash.

Discussions regarding a credit have also been held with representatives of the government of China. As yet there has not been an opportunity to complete negotiations regarding the terms of this credit, but I would hope that in this case, as well as in the case of the other countries I have mentioned, it would be possible to give the house further information before it is asked to approve an increase in the amount which may be loaned.

A condition attached to all these loans is, as hon. members will recall, that the proceeds of the loans shall be used in the purchase of Canadian produced goods.

It has not been found advisable, except in one case, to include in the loan agreements specific schedules of goods to be purchased with the proceeds of the loans. In a general way the amount of the loans has been related in each case to considerations of the probable availability of the goods which our allies desire to purchase from us. But it is to the advantage of both the buyer and the seller to have a certain amount of elasticity in these large purchasing programmes. From the buyers' point of view considerations of price,

supply, delivery dates, and many other factors which may change from time to time, make it undesirable to commit them to specific programmes of purchases too far in advance. And from our own point of view, it has not been thought advisable or even possible, to make firm commitments to supply large quantities of goods-for example, wheat-up, to say, the end of 1946.

From a study of the proposed purchasing programmes it is clear that the goods which will be required will be mainly foodstuffs, raw materials, and equipment for the reconstruction and rehabilitation of transportation and communication systems. These loans may in a very real sense be called reconstruction loans. We in Canada have a very real interest in the reconstruction efforts of our war-time allies, not alone on business, but also on humanitarian grounds. Only as the economic wounds of war are healed shall we return gradually to a healthy world, the life-blood of which, as Canadians are among the first to realize, is a strong and vigorous international trade.

Mr. BRACKEN:

I understand from the

statement just made by the minister that the total credits allowed under this legislation have been exhausted, provision having been made for amounts up to $100 million. The minister advises that later he will be asking for authority to advance further credits.

Mr. MacKINNON:

The Minister of Finance will.

Mr. BRACKEN:

Can either minister say

to-day what the total amount of those credits to be asked for will be?

Mr. ILSLEY:

No, I am sorry; I cannot

give a figure to-day.

1. How many men of the Canadian forestry corps are still in the army in Canada?

2. On what work are the men of this corps, stationed at or near Lachute, employed,?

3. On whose property are they working?

1. 276 all ranks. (This does not include forestry personnel returned from overseas and presently on strength of district depots.)

2. Constructing camps and cutting fuel wood.

3. A. D. McGibbon & Sons Ltd., and C. G. Turner, Esq.

Questions

Mr. BLACK (Yukon):

What steps have been taken by the government to erect an appropriate federal building at Whitehorse, Yukon?