1960-07-01

[Stage Direction]
93rd anniversary of confederation
Right Hon. J. G. Diefenbaker (Prime Minister):: Mr. Speaker, on this the 93rd anniversary of confederation of our country I suggest that the house rise and sing O Canada and God Save the Queen.
Whereupon the members of the house rose and sang O Canada and God Save the Queen.

presence in gallery of officers and men



FROM H.M.C.S. &quot;CORNWALLIS&quot;

[Stage Direction]
On the orders of the day:
Mr. E. L. Morris (Parliamentary Secretary to the Postmaster General):: Mr. Speaker, I wonder whether on this 93rd birthday of our country I might be allowed a momentary transgression of the rules of the house in order to draw to the attention of hon. members the presence in the gallery of 110 officers and men of the sunset guard, band and gun crews parading in this city from H.M.C.S. Cornwallis.



NATIONAL DEFENCE


[Stage Direction]
On the orders of the day:
Hon. L. B. Pearson (Leader of the Opposition):: I should like to ask the Prime Minister whether he can inform the house whether the government is continuing to negotiate with the United States government over the acquisition of nuclear warheads for weapons for Canadian forces.


John George Diefenbaker: The hon. gentleman did not give me notice on this matter, Mr. Speaker, and I would prefer to allow the question to stand until Monday so I could give an answer in the fullest detail. Any expurgated answer at this time which would result from failure to cover the entire situation might be misunderstood in its context.


Lester Bowles Pearson: Mr. Speaker, I quite realize that I did not give the Prime Minister notice; my question was based on information which
appeared only a few hours ago in the press. Does the Prime Minister not think it is desirable to remove at once the confusion which has been created by the different answers given on this subject by different ministers?


John George Diefenbaker: Mr. Speaker, I at once refuse to accept the suggestion that any confusion has been created by the statements made. The interpretation of them may be confused, but the actual statements have been clear.


Mr. Hazen Argue (Assiniboia):: May I ask
a supplementary question. Can the Prime Minister not tell the house and the country whether negotiations are or are not going on now? Does the Prime Minister not know?



EUROPEAN COMMON MARKET


[Stage Direction]
On the orders of the day:
Hazen Robert Argue: Mr. Speaker, I would like to direct a question to the Minister of Trade and Commerce. On this occasion of a further general reduction in tariffs among common market countries, and in view of the urgent consideration which is being given by the United Kingdom, according to reports, to associating itself in some way with the common market, can the minister say whether there is any likelihood of Canada being associated with either the outer seven or the inner six, and what consideration is being given to this very urgent trade problem?


Hon. Gordon Churchill (Minister of Trade and Commerce):: Mr. Speaker, this question arises from time to time in the house and answers have been given; this is a repetition of earlier questions.
I pointed out just a few days ago that negotiations are going on. Canadian officials have been in Europe, and they are still there, negotiating with members of the common market and outer seven groups. Later in the month of July there will be a meeting on the ministerial level which will be considering the problems raised by the question of the hon. member.
The situation is kept constantly under review, and Canada's position with regard to any proposed restrictions on trade has

Inquiries of the Ministry been repeatedly put before the members of the two regional trading groups in Europe. Later during the summer there may be a more comprehensive report available with regard to the whole situation.


Hazen Robert Argue: I wonder if the minister would comment on the report and tell the house whether there have been Canadian government studies made; and would he comment on the statement that these studies reveal that the common market is likely to set its price for wheat 20 per cent above the world price in order to call forth increased production within the common market countries and displace a large part of Canada's exports to this area?


Gordon Minto Churchill: Studies of the problem have been made and are continuing. As I reported last week, I think it was, representatives of Canada and of the United States, Australia, Argentina and the wheat exporting countries have been discussing agricultural policies with representatives of the common market. It is quite possible that there will be an increase in the production of wheat in Europe, and that increase in production, if confined to consumption within Europe, will have the effect of restricting imports of wheat. The imports of wheat which will be affected most seriously are those from Argentina, the United States and Australia, who are producers of soft wheat, which is the same type of wheat produced in Europe.
The same or an equal effect will not be felt by Canadian wheat exports, Canadian wheat being a hard wheat which is used in substantial quantities for mixing with the soft wheats which are grown in Europe. Over a period of several years it may well be that exports of Canadian hard wheat to Europe will be restricted, but that is something in the future. We are watching it very closely indeed, and it is because of that development that may occur within the course of the next five years or so that we are making very great efforts to expand our markets for wheat and flour in the countries of Asia, Africa and Latin America.


Hon. Lionel Chevrier (Laurier):: A supplementary question. In the light of the announcement made this morning of tariff cuts, which now amount to 20 per cent in so far as the common market countries are concerned, and in the light of the answer the minister has given with regard to wheat exports, can the minister say what effect this reduction will have on Canadian exports generally to these countries?


Gordon Minto Churchill: That will have to be
examined. I was reading the press report today to which I assume the hon. member is

referring, and I draw the attention of the house to the fact that despite the reduction in tariffs among the six nations in Europe their trade with the outside world increased by 8 per cent, which bears out what I have said on many occasions here in the house that Europe is one of the great trading areas of the world, just as dependent on exports for the maintenance of its economy as we are and just as interested in maintaining its position in world trade. The fact that its trade with the outside world has increased by 8 per cent is an indication of the outwardlooking factors in so far as the European nations are concerned.
I think this is just another indication of the expansion of world trade. Canada's position has been very clearly put to the European trading nations. As I have repeatedly stated in the house, in conversations I have had with ministers of trade and commerce of nations of the Six and the Seven in Europe, each one has told me that his hope is for expanded trade with Canada and the other nations outside Europe.


Lionel Chevrier: It is true, as the minister has stated, that there has been an increase of 8 per cent in the trade of the six common market countries with the outside world. On the other hand there has been an increase of almost 30 per cent-29 per cent is the figure I have before me-in trade within the common market itself, and the question which comes to my mind is this. What measures is the government taking to protect our exports in the light of this declaration?


Gordon Minto Churchill: All measures that are possible. I should like to examine the subject more fully when the estimates of the Department of Trade and Commerce are before us for consideration, as they will be shortly.



DOMINION-PROVINCIAL CONFERENCE REPORTED STATEMENT BY PARLIAMENTARY SECRETARY TO THE MINISTER OF JUSTICE

[Stage Direction]
On the orders of the day:
Mr. H. J. Robichaud (Gloucesier):: I have a question to ask the parliamentary secretary to the Minister of Justice. Was the parliamentary secretary expressing the views of the government when he said last Saturday that New Brunswick, and I quote "-must have the leadership of Hugh John Flemming if we are to get our just due at the federal-provincial fiscal conference in July"?


Some hon. Members:: Oh, oh.


Mr. Speaker:: The hon. member is not asking a question which comes within the administrative responsibility of the government. I would remind the house also, as I said the other day, that the matter to which the question relates no longer has any urgency.



CAPE BRETON


[Stage Direction]
On the orders of the day:
Mr. Roberl Muir (Cape Breton North and Victoria):: I should like to address a question to the Minister of Mines and Technical Surveys in reference to a statement attributed to President Michael MacLean of Princess local, united mine workers of America, as reported in the Cape Breton Post of June 27, which reached me this morning. This report states:
President MacLean asserted that in the face of reports of additional government financial assistance it would appear that the company is deliberately attempting to scuttle the coal industry in this district.
In view of this statement and others indicating that the actions of the company are causing alarm with respect to the future of the industry, would the minister consider having technicians from the dominion coal board go to the area in order to investigate the situation in the interests of the Canadian people and of the coal miners in particular?


Hon. Paul Comlois (Minister of Mines and Technical Surveys):: In answer to that question, Mr. Speaker, it would not seem advisable to send mining experts to the coal operations of Dosco just at this time, in view of the fact that I am informed that the Rand commission recently had an internationally recognized mining and management engineer spend several weeks covering all aspects of Doseo's operations. His findings will no doubt form an important part of the Rand commission report which is expected to be released soon. When this document is received the whole question of mining operations in the area can again be reviewed in the light of what is reported at that time. I know the hon. member will take up the matter with me again after the report is published, in the interests of his constituents, and I will be glad to talk to him then.