April 8, 1929

CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Hon. R. B. BENNETT (Leader of the Opposition):

I would like to ask the right hon. the Prime Minister whether or not a despatch has been forwarded to the Secretary of State, of the United States with regard to the I'm Alone incident, and if so, if a reply has been received. I ask that question because of the uncertainty which appears to exist in the newspapers. One press despatch says that a note has been forwarded, while another despatch from Washington contradicts that report. I think it is in the public interest that this situation be clarified by the Prime Minister.

Topic:   THE I'M ALONE INCIDENT
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

As I mentioned to the

hon. leader of the opposition on Thursday last, the I'm Alone incident has been the subject of communications between the governments of the United States and Canada, through our minister at Washington. A number of communications have passed between our government and the minister with a view to having formal representations made to the United States government. The last of these communications was sent forward to-day and I expect that formal representations will be made by the minister at Washington either to-day or possibly to-morrow at the latest.

Topic:   THE I'M ALONE INCIDENT
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CON

Richard Bedford Bennett (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. BENNETT:

They have not yet been made?

Topic:   THE I'M ALONE INCIDENT
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Liberal

Mr. MACKENZIE KING:

The formal

representations have not been made as yet.

Topic:   THE I'M ALONE INCIDENT
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THE BUDGET

CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE


The house resumed from Friday, April 5, consideration of the motion of Hon. J. A. Rdb'b (Minister of Finance) that Mr. Speaker do now leave the chair for the house to go into committee of ways and means, the proposed amendment thereto of Hon. Hugh Guthrie, and the proposed amendment to the amendment of Mr. Spencer.


LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Hon. ERNEST LAPOINTE (Minister of Justice):

Mr. Speaker, I shall occupy but a few moments of the time of the house, and I do so from a sense of duty which I believe I cannot evade. I desire to refer to certain important questions which have been raised in the course of this debate. While I have been unable to attend the opening sessions of the house, I have followed with the deepest interest the proceedings and the various discussions which have taken place. Never was I so proud of my membership in this house as when I read the speeches which were made in this chamber in approval of the resolution presented on the treaty to outlaw war. The debate was on a high plane throughout and would have done credit to any legislative body in the world. The true international spirit was apparent and manifested itself in all the views which were then expressed, and from all sides came the unqualified offer of the most intense cooperation for the furtherance of all moves which might lead to the establishment of permanent peace.

The world has moved forward; a new psychology of peace is gradually replacing the war psychology of the past, and it is no longer a sign of inferiority, a sort of inglorious stigma, to preach and advocate peace. Indeed, of all the beneficent effects of the League of Nations none is perhaps more commendable than the creation of a new international conscience whose feelings, whether or not they are officially expressed, are recognized and respected everywhere even by material strength and military power. This is the new international conscience which has given birth to the Kellogg pact and which has induced so many nations to accept compulsory arbitration of conflicts between states in order to replace violence and force by the rules of law and international justice. Nobody can fail to realize the supreme importance of a public act by which all the nations joined

The Budget-Mr. Lapointe

together to declare that peace is the only goal to be reached and that war should be outlawed and denounced.

But the value of this agreement will depend largely upon the subsequent measures, upon the steps which will be taken everywhere by all nations for the purpose of reaching what they all declare to be their goal. Peace will be secured if nations can eliminate as far as possible the usual causes of conflicts, the ordinary sources of difficulties. The League of Nations has been during the last few years and is now investigating what those sources of difficulties and causes of conflict are.

I am going to refer now to what has been declared to be the main source of difficulties between nations and this brings me directly to the subject under debate. On the 26th September, 1925, the assembly of the League of Nations adopted this resolution:

The assembly, firmly resolved to seek all possible means of establishing peace throughout the world; convinced that economic peace will largely contribute to security among the nations; persuaded of the necessity of investigating the economic difficulties which stand in the way of the revival of general prosperity, and of ascertaining the best means of overcoming these difficulties and of preventing disputes; invites the council to consider at the earliest possible moment the expediency of constituting on a wide basis a preparatory committee which, with the assistance of technical organizations of the league and the International Labour Office, will prepare the work of an international economic conference.

The convening of this conference under the auspices of the League of Nations shall be a matter for subsequent decision by the council.

The council took action on that recommendation and organized the preparatory committee composed of leading men of many nations. This preparatory committee started to work and organized an economic conference which sat in Geneva on the 4th May, 1927, and whose session extended until the 23rd May, 1927. The members of this conference were appointed by the various governments. Other members were nominated by the council or by certain international organizations invited by the council and experts accompanied members or were invited by the president of the conference. It consisted of 194 delegates and 226 experts representing 50 states, some of which were not and are not now members of the league. The president of the conference was M. Theunis, a former premier of Belgium. One of the vice-presidents was Mr. Henry M. Robinson, an American representative. Oanada was represented at that conference by the following;

Mr. Albert Matthews, investment banker, director, Toronto General Trusts Corporation.

Mr. Joseph Daoust. LL.D. J.P., president, Daoust, Lalonde and Company, Ltd., Montreal,

former president of the Montreal Chamber of Commerce, former president of the Boot and Shoe Manufacturers' Association of Canada.

Mr. W. A. Riddell, M. A., Ph. D., Dominion of Canada advisory officer accredited to the League of Nations.

Mr. Adam Shortt, C.M.G., LL.D. chairman of the Board of Historical Documents, (economic and political), Board of Historical Publications, Ottawa, formerly commissioner of the Civil Service of Canada, and Professor of Economics, Queen's University.

Mr. W. A. Wilson, Canadian agricultural products representative in Great Britain.

I said that the United States of America were represented there and indeed they had a very strong representation. I will take the liberty of giving the names:

Mr. Henry M. Robinson, president of the First National Bank, Los Angeles, and member of the Dawes commission.

Mr. Norman H. Davis, formerly Assistant Secretary of Treasury and Under-Secretary of State.

Mr. John W- O'Leary, president of the United States Chamber of Commerce.

Mr. Alonso E. Taylor, director of Food Research Institute, Stanford University. _

Mr. Julius Klein, director. Bureau of Foreign and Domestic Commerce, U.S. Department of Commerce.

They were accompanied by the following experts;

Dr. Arthur N. Young, economic adviser to the Department of State.

Dr. E. Dana Durand, chief of the Research Division. Department of Commerce.

Mr. Grosvenor Jones, chief of the Finance and Investment Division, Department of Com-meree. .

Dr. Louis Domeratzky, chief of the Regional Division. Department of Commerce.

Mr. E. W. Camp. Acting Commissioner of Customs, Treasury Department.

Mr. Asher Hobson, permanent American delegate to the International Institute of Agriculture at Rome.

Dr. Percy W. Bidwell, an economist of the United States Tariff Commission. _

Mr. Henry Chalmers, chief of the Division of Foreign Tariffs, Department of Commerce. Mr. John P. Frey.

Secretary: Mr. Somerville Pinkney Tuck,

Consul of the United States of America at Geneva. .

The conference divided itself into committees, the three main committees being one on agriculture, one on commerce, and one on industry. I have the official report of the conference here which, after discussion, was presented and adopted by the conference. I am sorry that time will not permit me to read some of the very important considerations in that report as to commercial policies. I shall confine myself to reading the conclusion :

In view of the fact that harmful effects upon production and trade result from the high and constantly changing tariffs which are applied in many countries;

The Budget-Mr. Lapointe

And since substantial improvement in the economic conditions can be obtained by increased facilities for international trade and commerce;

And in view of the fact that tariffs, though within the sovereign jurisdiction of the separate states, are not a matter of purely domestic interest but greatly influence the trade of the world;

And in view of the fact that some of the causes which have resulted in the increase of tariffs and in other trade barriers since the war have largely disappeared and others are diminishing;

The conference declares that the time has come to put an end to the increase in tariffs and to move in the opposite direction.

The conference recommends:

(1) That nations should take steps forthwith to remove or diminish those tariff barriers that gravely hamper trade, starting with those which have been imposed to counteract the effects of disturbances arising out of the war.

_ Moreover, in order to ensure that this action is continuously pursued, the conference recommends:

(2) That states should proceed to the conclusion of commercial treaties on lines and under conditions calculated to ensure the attainment of the aims mentioned herein;

(3) That, in future, the practice of putting into force, in advance of negotiations, excessive duties established for the purpose of bargaining, whether by means of tarifs de combat or by means of general tariffs, should be abandoned;

(4) That the Council of the League of Nations should be requested to instruct its economic organization to examine on the basis of the principles enunciated by the present conference, the possibility of further action by the respective states with a view to promoting the equitable treatment of commerce by eliminating or reducing the obstructions which excessive Customs tariffs offer to international trade.

In this enquiry, the economic organization should consult with representatives of the various governments, including non-members of the league, and also so far as necessary with the competent bodies representing commerce, industry, agriculture and labour.

The object of the enquiry should be to encourage the extension of international trade on an equitable basis, while at the same time paying due regard to the just interests of producers and workers in obtaining a fair remuneration and of consumers in increasing their purchasing power. .

I will quote one sentence from the general resolutions in the final report with respect to agriculture:

It is desirable that all hindrances to the free circulation of and trade in agricultural products should be removed, in so far as their removal does not endanger the vital interests of rne different countries and their workers.

In those states in which customs protection is maintained, it should be reduced, both for industry^ and agriculture, to the lowest possible point indispensable to production; care should be taken to assist in the maintenance .of an equitable balance between industry and agriculture and not to stifle one to the advantage of the other.

The final resolution concerning economic tendencies affecting the peace of the world reads:

The conference:

Recognizing that the maintenance of world peace depends largely upon the principles on which the economic policies of nations are framed and executed:

Recommends that the governments and peoples of the countries here represented should together give continuous attention to this aspect of the economic problem, and looks forward to the establishment of recognized principles designed to eliminate those economic difficulties which cause friction and misunsder-standing in a w-orld which has everything to gain from peaceful and harmonious progress.

The conference recognizes that the reception and successful application of the principles stated in the resolutions of the conference depend, not only upon the good-will of governments and administrations, but upon an informed and supporting public opinion throughout the world, and for this purpose would welcome, in the economic as in other fields, the development of closer international cooperation by scientific and educational institutions, as well as the help of the press and other agencies of importance for the information and enlightenment of the public.

These recommendations were unanimously adopted by the conference except for the union of Soviet republics of Russia and Turkey. These recommendations were afterwards approved by the council of the league, which recommended that as far as possible they should be carried out by the various nations Which had taken part in the conference.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Mr. Speaker, I rise to a point of order. At the last session of parliament, certain of these resolutions were laid upon the table of the house and the Prime Minister was aiSked whether it was the intention of the government to submit them to parliament for approval or disapproval or discussion, and the Prime Minister declared that that was not the intention of the government. I submit, therefore, that it is not in order by this indirect method .to bring about a discussion of these resolutions at this late stage of tihe budget debate.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

It is a public document from which I am reading. Surely my hon. friend is not serious when he suggests that I am out of order in reading the recommendations of the League of Nations or of the economic conference. These are public documents.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

I suggest that when the government has positively declined to allow a discussion by this house of certain public documents-

The Budget-Mr. Lapointe

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

My hon. friend is at liberty to discuss this at any time.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

Not at any time.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

If my hon. friend opposes it, he will align himself with Russia and Turkey.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

I am perfectly prepared to align myself with Russia because Russia was one of the countries that so distinctly disapproved of it.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

I am very sorry that I do not please my hon. friend foy reading these recommendations of the economic conference of the League of Nations.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

It is an indirect approach that is not becoming.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

I am always anxious to please my friend, but surely I am not committing a criminal offence by reading these resolutions which have been adopted by the goodwill of all the nations of the world.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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CON

Charles Hazlitt Cahan

Conservative (1867-1942)

Mr. CAHAN:

You should have the courage to submit to this house the resolutions of the League of Nations of which you approve.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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LIB

Ernest Lapointe (Minister of Justice and Attorney General of Canada)

Liberal

Mr. LAPOINTE:

I hope, Mr. Speaker,

that this time will not be taken out of my forty minutes.

I say that the council of the league recommended to the nations concerned that they should conform their policies to tlhe wishes thus expressed, and the assembly, which sat in September, 1927, following the conference, adopted unanimously a resolution in approval of tlhe work of the conference and its recommendations. These are the conclusions, Mr. Speaker, which have been reached by the representatives of most of the nations of the world, acting with the cooperation and upon the advice of experts representing almost all the nations of the world, experts who have no political interest to serve and no financial axe to grind.

Topic:   THE BUDGET
Subtopic:   CONTINUATION OF DEBATE ON THE ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE
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April 8, 1929