Mr. MAYHEW:

I answered that question a little while ago. I said we 'had no idea how many of the present bonds are held in the United States. No doubt some are, but they have become pretty well scattered in the twenty year period.

Mr. MACDONNELL (Muskoka-Ontario):

Did I understand the parliamentary assistant to say that the new issue will be 8700,000, the same amount as the present one?

Mr. MAYHEW:

Yes.

Mr. MACDONNELL (Muskoka-Ontario):

Is the parliamentary assistant sure of that? Does that mean that you are going to pay a rate of interest which will yield that exact amount, or a rate of interest by which these bonds can actually sell at par? Are you committing yourself to that?

Mr. MAYHEW:

The maximum amount of indebtedness to which we will be committed will be $700,000.

Mr. FRASER:

How are you taking care of the United States funds?-because there will be a certain premium on those funds.

Mr. MAYHEW:

No.

Mr. FRASER:

The bank charges half of one per cent.

Mr. MAYHEW:

Yes. I suppose it will be charged up to the regular expenses of the operation of the Now Westminster harbour commission.

Mr. FRASER:

They will pay that?

Mr. MAYHEW:

They will have to pay that.

Mr. CHURCH:

In the case of the Toronto harbour, the city of Toronto guarantees the bonds. It seems to me that the policy which has been decided on in this bill-which is very largely a private bill-the guarantee of bonds for harbour work, is a departure from the old practice. What is the jurisdiction of the Minister of Public Works over the work of this harbour? Is this not a wide departure from the policy of the government in the past regarding these harbours? Some are public harbours; some are harbours for the benefit of the municipality. Fifty per cent has been paid by the city and municipality, and 50 per cent by the government to improve the entrance and exits to some harbours, the deepening of the harbour and so on-a general program. In this case we find the government adopting a new policy, advancing and guaranteeing bonds and securities for the promotion of certain works within this harbour, which does not apply to the other harbours of the country. In the first place this is not one of the federal harbours named in the federal act. I think this is a very wide departure. We should have some idea of the harbour plans proposed; we should know how much money has been spent, and all that kind of thing, by all parties to the commitment.

Mr. CASE:

Mr. Chairman, the parliamentary assistant did not entirely answer my question. I understood him to say that the government had always guaranteed the bonds, but I also asked what was the total amount of the original bond issue in 1928.

Mr. MAYHEW:

The original amount in 1928 was $700,000. All that has been paid is the interest. At that time the government guaranteed the debentures.

Mr. JACKMAN:

How is it intended to pay off these debentures, which I understand, are

Transitional Measures Act

payable in United States as well as Canadian funds? Is it the intention of the government to provide $700,000 of United States exchange out of its meagre reserves for the payment of these debentures?

Mr. MAYHEW:

I am quite sure it will not be necessary to provide for $700,000 United States funds, because all the debentures are not held in the United States. Even if they are held by Canadian citizens they will not be able to cash their bonds in the United States and get their exchange. They might cash them there, but they would have to convert the funds back to the foreign exchange control board, and all they would get would be half of one per cent. Therefore only those residents of the United States who hold debentures would get any benefit out of the exchange position.

Mr. JACKMAN:

How many are there?

Mr. MAYHEW:

I have already said three times that we do not know how many.

Mr. MACDONNELL (Muskoka-Ontario):

You should know.