Mr. Jackman:

The minister answered that part of the queries raised on this side of the house having to do with Britain taking goods from Canada, which I presume was his particular assignment. Many of us here are concerned about why Britain is not sending more goods of a kind we can use here, instead of sending them to other countries, so that in turn Britain would have more Canadian dollars with which to buy more of the particular products with which the minister was

concerned. Does he have any information to convey to the committee in that regard?

Mr. Jackman:

May I ask how this $496 million of very valuable assets now held by the Bank of Canada is paid for? I presume it is with Canadian dollars. It would make a difference in the budget surplus as shown in cash surplus, when the minister gives us the nation's accounts next Tuesday night. However, I do not wish to anticipate his statement to be made at that time. What will be the government's policy in regard to allowing Canadians to reinstate to some extent their capital position with regard to American securities? The minister will recall how valuable it was for Canada to be able to put our hands on American securities in the possession of Canadian individuals and companies. Some of those securities were not at that time taken over by the government; but in many cases individuals and companies sold part or all of their American securities, and the money went to provide very necessary

funds to purchase munitions in the United States before that country came into the war.

Would it be against the policy of the government to allow Canadian individuals to repurchase American securities? Those securities of course would be under the jurisdiction of the foreign exchange control board. This would allow Canadians a certain amount of freedom which they would not have otherwise.

Mr. Jackman:

May I ask if there is any reason for continuing that policy, or is it just like so many things which have found their way to the statute books? They are never removed because the bureaucrats have not found it necessary to remove them, and the public do not make a big enough fuss.

Mr. Jackman:

The annual report of the foreign exchange control board points out that official holdings of gold and United States dollars increased by $496 million. May I ask the minister if the amount of United States currency which Canada would have received through the purchase of a minority interest in the International Petroleum Company by Standard Oil of New Jersey would be reflected in the 1948 account, or would it be reflected in the 1949 account; and approximately how much in millions of dollars would it be?

Mr. Jackman:

Ha, ha.