Mr. Speaker:

I beg to inform the house that in accordance with the wishes of the members I sent a cablegram to the secretary to His Majesty the King, expressing our gratification at the constant progress towards recovery which His Majesty is making. I have now received a cablegram in reply from the private secretary to His Majesty, which I shall read. It is as follows:

Buckingham Palace, London.

The Speaker,

House of Commons,

Ottawa.

The King sincerely thanks all members of the House of Commons of Canada for their kind message which has given His Majesty great pleasure.

It is signed by the private secretary to His Majesty.

Mr. Wilfrid LaCroix (Quebec-Monimorency) moved

for leave to introduce Bill No. 11, to amend the Criminal Code.

Explain.

Mr. LaCroix:

Contrary to what has been reported by a newspaper in Montreal, it is not the purpose of this bill to outlaw the communist party. The sole object of this particular bill is to forbid the distribution and circulation of communist newspapers and subversive propaganda through the mails because their insidious campaign is destroying inch by inch that for which we are spending millions. There is already a law in the province of Quebec forbidding such distribution but of course not by mail, as that is under federal control.

Motion agreed to and bill read the first time.

Mr. G. A. Cruickshank (Fraser Valley):

Will the government make a statement at an early date in connection with the increase of basic pensions for veterans?

Hon. Hugues Lapointe (Minister of Veterans Affairs):

I have received inquiries touching upon this matter from various members of the house. In answer to the hon. member for Fraser Valley, I wish to say that the government has been considering all veterans legislation and the advisability of appointing a committee, and an announcement will be made at an early date concerning the same.

Mr. George A. Drew (Leader of the Opposition):

I wish to direct to the Prime Minister a question of which I have communicated notice to him. Has default in payment due to the government of Canada by the Ming Sung company actually taken place? Has the company taken steps to avoid seizure of their ships? If so, what steps has the government taken to prevent their continued use of the Canadian flag?

Hon. Douglas Abbott (Minister of Finance):

Perhaps I might be permitted to answer that question. I got back only this morning and I shall have to ask my hon. friend to permit me to take his question as a notice and I will give him a full statement tomorrow. The Ming Sung company were unable to meet the principal instalment of $1,200,000 odd, which fell due on June 30, within the time stipulated in the contract. They did pay the interest, but they were unable to meet a further interest payment due on September 30. The banks have asked the government to implement its guarantee, and the government has done so. The banks have been requested to institute appropriate legal proceedings under the mortgages and my information is that those proceedings are under way. I will give my hon. friend a full answer to his question tomorrow.

Inquiries of the Ministry

Mr. Drew:

I accept the reasons put forward by the Minister of Finance (Mr. Abbott) for the delay in giving a detailed explanation, but I would hope that he could answer now whether the right to use the Canadian flag has been withdrawn.

Mr. Abbott:

So far as I am aware it has not.