Hon. J. A. MacKINNON (Minister of Trade and Commerce) moved that the house go into committee at the next sitting to consider the following resolution:
That it is expedient for the purpose of facilitating and developing trade between Canada and any other country to introduce a measure:
1. To incorporate the Export Credit Insurance Corporation for the purpose of entering into contracts of insurance with exporters to insure against the risk of loss involved in contracts for the export of Canadian-produced goods.
The capital stock and the paid in capital surplus of the corporation each amounting to five million dollars shall be subscribed by the Minister of Trade and Commerce from time to time and paid therefor by the Minister of Finance with provision also for loans not to exceed in the aggregate, outstanding at any one time, an amount equal to five times the aggregate of the paid-up capital and surplus of the corporation;
2. To authorize the Minister of Finance during the three years next ensuing after the _ coming into force of this act, tola) guarantee the obligations of the government or an agency of the government of any such other country to pay the cost of Canadian produced goods under a contract to purchase such goods from an exporter;
(b) make a loan to the government or any agency of the government of any such other country to enable such government or such agency to purchase from an exporter and to pay the cost of Canadian produced goods; or
(c) purchase, acquire or guarantee any security issued by the government or by the agency of the government of any such other country to any person in Canada in payment of the cost of Canadian produced goods exported or to be exported to such other country ;
provided that the government of such other country requests the government of Canada to give such guarantee, make such loan, or purchase, acquire or guarantee such securities anA undertakes bo indemnify the government of Canada against loss in connection therewith.
The aggregate amount of such guarantees outstanding at any time shall not exceed two hundred million dollars and the aggregate of the amount of loans made and outstanding at *any time and the value of securities purchased or acquired and held at any one time shall not exceed one hundred million dollars.
He said: His Excellency the Governor
General, having been made acquainted with the subject matter of this resolution, recommends it to the consideration of the house.
Motion agreed to.