Mr. Stanley Knowles (Winnipeg North Centre):

Mr. Speaker, may I rise on a

question of privilege which is one on which I am sure every member in the house would like to rise; in other words, may I say how delighted all of us are to see back in our midst once again the hon. member for Queens-Shelburne (Mr. Smith). May I add that it is even a greater source of delight to us all to see him in such excellent health.

Mr. P. C. Black (Cumberland):

Since I

come from Nova Scotia I want to join with the hon. member for Winnipeg North Centre in welcoming our fellow member from that province. I speak on behalf of all the people of Nova Scotia in welcoming him back to the House of Commons. We are very happy to have him here and delighted to see him looking so well.

Mr. L. E. Cardiff (Huron North):

I should like to direct a question to the Minister of Agriculture (Mr. Gardiner) but in his absence and in the absence of his parliamentary assistant perhaps one of the cabinet ministers will answer. Was the Minister of Agriculture expressing government policy the other day when under pressure he stated that hogs would advance in price four cents a pound after March 1?

Right Hon. L. S. St. Laurent (Prime Minister):

I do not know of any such

statement having been made by the Minister of Agriculture.

Mr. G. R. Pearkes (Nanaimo):

May I direct a question to the Minister of Resources

and Development (Mr. Winters), notice of which I have given him. Have any representations been made by organizations in the Yukon to extend the boundary of the territory south to the 55th parallel, thus including parts of northern British Columbia? If so, can the Minister indicate the nature of the representations?

Hon. Robert H. Winters (Minister of Resources and Development):

Mr. Green:

May I ask the minister

whether the government is contemplating any action in connection with this suggestion?

Mr. J. A. Byrne (Kootenay East):

I should like to direct a question to the Secretary of State for External Affairs. In view of the recent press statements by United States authorities that they are prepared to proceed with the Libby dam project, will the minister inform the house whether the United States proposals are sufficient to assure adequate compensation for the use in perpetuity of Canadian land and water resources?

Hon. L. B. Pearson (Secretary of State for External Affairs):

The hon. member was good enough to give me notice of his question, which is of course of particular interest

Inquiries of the Ministry to the province of British Columbia. I should like to make a short statement in reply to it.

The hon. member is referring to an application which was submitted in January, 1951, on behalf of the United States government for the approval of the international joint commission of the construction of the Libby Dam project. This project would involve the construction of a dam on the Kootenay river at Libby, Montana, and the creation, upstream, of a reservoir flooding the Kootenay valley in Montana and for a distance of 42 miles in British Columbia.

Under the boundary waters treaty of 1909, a project such as this, which would affect the level of waters on both sides of the boundary, requires the approval of the international joint commission and of the governments of Canada and the United States. The government of British Columbia is also, of course, concerned in the matter since the project will involve the use and development of resources within the province. In a development of this sort consideration must be given not only to the question of compensation for property damages but also to the larger question of appropriate arrangements to ensure that those entitled to the benefits to be derived from the use of Canadian natural resources-in this case the people of British Columbia in particular and the people of Canada in general-should receive those benefits in full measure.

In putting the Canadian interest before the international joint commission, the Canadian government has therefore been concerned to ensure that benefits will accrue to Canada commensurate with the contribution which Canadian resources will make to the developed project. This is the matter that is at issue before the commission now, and I hope that it will be resolved soon. The development and use of natural resources within their boundaries is, of course, a matter within the jurisdiction of the provincial governments. The Canadian government is making every effort to see that the needs and rights of the people in the area concerned are fully met and that the government of British Columbia is given every opportunity to present its views to the international joint commission so that the interests of the people of British Columbia can be fully protected.

I understand that, following recent discussions with the Canadian chairman of the international joint commission, the government of British Columbia, continuing studies initiated by the previous government of the province, is seeking the advice of a committee representative of public and private interests

as to the policy to be recommended to the international joint commission with regard to compensation and to the distribution of the benefits of the project to those entitled to them. I can assure my hon. friend that the Canadian government, whose approval is also required before any project such as this can be undertaken, will ensure that the interests of the people of British Columbia will be given full consideration.