July 4, 1935

CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

I wrote it on Dominion day.

Topic:   QUESTIONS
Subtopic:   CANADIAN GRAIN BOARD
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

He now confirms the remark.

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Subtopic:   CANADIAN GRAIN BOARD
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

And I said I took the suggestions of every member of the committee before doing so.

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Subtopic:   CANADIAN GRAIN BOARD
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

May I ask my right hon. friend, if this is his bill, whose was the bill introduced in the name of the Prime Minister on June 10? I do not wish to deprive my right hon. friend of any credit, which may be his, but I think it is only right that credit in all quarters should be given where credit is due.

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Subtopic:   CANADIAN GRAIN BOARD
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

Hear, hear.

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Subtopic:   CANADIAN GRAIN BOARD
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

From the month of March there was on the order paper of the house a resolution in the name of the Prime Minister for the introduction of a bill providing for the constitution and powers of the Canadian grain board. On June 10 that bill was introduced and given its first reading by the Prime Minister. My right hon. friend will recall and the committee will recall that I asked him at the time if he would not agree to his bill going to a committee, either a special committee or a select committee, and I gave as a reason for my request that I thought the bill would have to be changed considerably, and that if we could get it before a committee much discussion would be saved when the bill came back to the house. My right hon. friend was not in a position to give an immediate answer; he said he would consider it. He did consider it and he agreed

Canada-Poland Trade Agreement

to the bill going to a select special committee, and I thanked him for agreeing to my suggestion, and it went to the committee. The bill that has come back to the house, as I have it in my hand, is quite another bill. True it is entitled to provide for the constitution and powers of the Canadian grain board, the same number and name-

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Subtopic:   CANADIAN GRAIN BOARD
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

No, it is changed in the inside to wheat board.

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Subtopic:   CANADIAN GRAIN BOARD
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

But it has printed on the title page " reprinted as amended and reported by the select special committee." .

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Subtopic:   CANADIAN GRAIN BOARD
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LIB
LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

This is a new bill, a different bill altogether. My right hon. friend's bill was the original bill. It would have gone on to its second reading and into committee of the whole and to its third reading without being referred to any special committee at all but for the suggestion that came from this side of the house and which to his credit my right hon. friend accepted. The bill having gone to the special committee and the members of that committee having worked day and night for days doing their utmost to bring the measure to the point where as far as possible it would be acceptable to all parties in the house, I think my right hon. friend ought to have given full credit to the members of the committee for having achieved that result.

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Subtopic:   CANADIAN GRAIN BOARD
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CON

Richard Bedford Bennett (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Conservative (1867-1942)

Mr. BENNETT:

So he did.

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Subtopic:   CANADIAN GRAIN BOARD
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

My right hon. friend says, "So he did"; he is given to saying diametrically opposite things in the same speech, so that if the necessity arises he can point to whichever extreme may best serve the moment. However, I am quite prepared to acknowledge that in the concluding part of my right hon. friend's remark he did say that he obtained the views or he made notes from and tried to give effect to the views of members of the committee in the bill as finally drafted. Still further on he also said that the bill represented the unanimous views of the committee. All that I wish to stress at the moment -and I do it because I think it is due particularly to those hon. member's of the house who served on the committee;-is that the bill which has come back from the special committee to this house and has passed through committee this afternoon and this evening is a very different bill from that originally introduced. The bill as originally introduced would not have passed this house without prolonged controversy and discussion, if it would have 92582-271

passed at all. The bill which has passed through committee this day with so very little in the way of discussion has passed in virtue of the changes made by the committee in the original bill, changes which served to make it acceptable to this house, and which I believe will serve to make its provisions acceptable also to the country.

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Section agreed to. Bill reported, read the third time and passed.


CANADA-POLAND TRADE AGREEMENT


Hon. R. B. HANSON (Minister of Trade and Commerce) moved the second reading of Bill No. 121, respecting the convention of commerce between Canada and Poland, signed at Ottawa, July 3, 1935. Motion agreed to, bill read the second time, and the house went into committee thereon, Mr. Smith (Cumberland) in the chair. On section 1-Short title.


CON

Richard Burpee Hanson (Minister of Trade and Commerce)

Conservative (1867-1942)

Mr. HANSON (York-Sunbury):

Perhaps a short explanation might be in order at this stage. The bill is the usual form of bill adopted by parliament heretofore in connection with the ratification of conventions between Canada and different countries, and I believe there will be no difficulty in adopting the sections as they come before the committee. I should like to make a statement however with respect to the convention attached as a schedule to the bill.

The convention of commerce between Canada and Poland now submitted to the house for approval should be the means of giving Canada ready access to the Polish market for the first time since the establishment of the Polish republic.

The republic of Poland is one of the larger and more populous of the states of Europe, having an area of nearly 140,000 square miles and a population of over 32,000,000, showing the very considerable average density of 222 persons to the square mile. The import trade of Poland in 1934 amounted to a value of 8148,569,360, of which Canada according to the Polish returns supplied only $38,688. According to our Canadian trade returns, in the fiscal year ending March, 1935, Canada imported from Poland and Danzig goods to the value of $154,309 and exported Canadian products to the value of S402,067. I have a statement with me giving the details of the principal products imported from and exported to Poland and Danzig in the last three fiscal years.

Canada-Poland Trade Agreement

Canadian trade with Poland hitherto has been handicapped by the absence of a trade agreement. Up to October 11, 1933, the Polish tariff system comprised (1) normal tariff; (2) maximum tariff (three times as high as the normal tariff); and (3) conventional rates on some goods lower than the normal tariff. While the normal tariff was extended to Canada, conventional rates were withheld and, moreover, the import licence system of Poland was administered in a manner so as to make it very difficult to obtain licences to import Canadian goods.

A new Polish tariff came into force on October 11, 1933, which has restricted the sale to Poland of most Canadian products. This tariff established two sets of rates, those in column I being applicable to merchandise originating in countries with which Poland does not have commercial treaty arrangements. The rates in column II are applicable to countries enjoying "most favoured nation'' treatment, and are, on the average, about 20 per cent lower than those in column I. In addition there is a third column consisting of special rates of duty provided for in trade treaties which Poland has concluded with other countries. These special rates of duty usually represent considerable reductions below the rates provided for in column II of the Polish tariff.

The convention of commerce will result in Canada securing most favoured nation treatment in Poland. Consequently, Canadian goods would benefit not only from the rates in column II of the Polish tariff, but also from the special rates provided for in treaties concluded with other countries. If no convention of commerce is concluded, Canadian goods would be subject to the rates of duty provided for in column I, or the highest rates of duty in the Polish tariff.

In addition, schedule A of the convention of commerce provides for special reduced rates of duty on some products which are of particular interest to Canada. These reductions in Polish duties, expressed in Canadian currency at par of exchange, are as follows: Herrings, preserved:

Weighing more than 500 grams, 12-J reduced' to 4J cents per pound.

Weighing 500 grams or less, 17i reduced to 6 cents per pound.

Canned salmon, 40 reduced to 12 cents per pound.

Sardines, 40 reduced to 14 cents per pound.

Canned lobsters, $1 reduced to 25 cents per pound.

Patent leather:

In whole or half skins, $1.11 reduced to 50 cents per pound.

In cuttings or pieces, $1.22 reduced to 55 cents per pound.

Silver fox skins, $25 reduced to $5 per pound.

Chemical wood pulp for the manufacture of paper, 75 reduced to 40 cents per 100 pounds.

Chemical wood pulp, other, 75 reduced to 50 cents per 100 pounds.

Ice skates, 15 reduced to 10 cents per pound.

These calculations have been made at par of exchange. In order to arrive at the equivalents of the Polish duties at the current rate of exchange it would be necessary to add approximately 66 per cent to the amounts given in this statement.

In addition, the convention of commerce provides that Canada shall receive treatment in respect to quotas as favourable as that extended to the importation of similar articles from other countries. Many classes of goods are subject to restrictions on importation into Poland. As a result of the conclusion of the convention of commerce, quotas will be established for the principal products which we desire to ship to Poland on a basis agreed upon between the two governments. Among other products which should benefit from the establishment of a quota is fresh apples, the trade in which has hitherto been restricted by the difficulty which importers in Poland have experienced in securing licences for the importation of apples from Canada owing to the fact that there has been no trade treaty between the two countries.

The tariff concessions granted by Canada to Poland are embodied in schedule B to the convention. These relate to twenty-one items of the Canadian customs tariff. In the case of nine items the effect of the concession is to consolidate free entry for articles which are now free of duty under all tariffs. Books printed in Poland and in the Polish or Ukrainian language, covered by items numbers 169 and 171 of the Canadian customs tariff, will be made free of duty. In the case of item 171 it was necessary to obtain the concurrence of His Majesty's government in the United Kingdom because this item being included in schedule E to the trade agreement between Canada and the United Kingdom, the margin of preference had been guaranteed. The duty on positive moving picture films made in Poland and speaking the Polish or Ukrainian language, if one and one-eight of an inch in width and over, will be cut in half. To this item and to those relating to books in the Polish or Ukrainian language the government of Poland attach importance from the point of view of cultural rather than of commercial relations. The concessions in respect to the remaining nine items covered by the convention involve discounts from the intermediate tariff varying from 10 to 45 per cent. In the case of two items, those relating

Fruit and Honey Act

to clover seeds and to furniture, similar concessions are embodied in the trade agreement with France, so that no further reductions will be extended to most favoured nations by the granting to Poland of the concessions respecting these products. The other concessions granted to Poland relate to the following products:

Canned hams;

Dried mushrooms;

Manufactures of alabaster, n.o.p.;

Cut, pressed, moulded or crystal glass tableware, decorated or not;

Blown glass tableware and other cut glass ware;

Horse hair, curled or dyed, n.o.p.;

Trunks, valises, hat boxes, carpet bags, tool bags and baskets of all kinds, n.o.p.;

Ornaments, statues and statuettes of alabaster.

When the convention comes into force the duties on these products, imported from countries entitled to most favoured nation treatment, will be reduced to the extent of the discounts from the intermediate tariff specified in schedule B.

I shall be pleased to answer any question I may concerning the different sections, as they are reached.

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Subtopic:   CANADA-POLAND TRADE AGREEMENT
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Section agreed to. On section 2-Convention approved.


LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

As I understood the minister's explanation, so far as duties are concerned, goods coming from Poland are now to come in free or at a lower rate of duty than exists at the present time.

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CON

Richard Burpee Hanson (Minister of Trade and Commerce)

Conservative (1867-1942)

Mr. HANSON (York-Sunbury):

In all cases most favoured nation treatment has been given except in nine, where the duties are even lower, and in other cases they are free.

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Subtopic:   CANADA-POLAND TRADE AGREEMENT
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LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

I must congratulate the government in having come around to the correct point of view in regard to tariffs. It may be a deathbed repentance, but it is just as well to have it.

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July 4, 1935