December 10, 1945

LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is government policy, yes.

,

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

Is Canada committed?

Have any definite commitments been made to the United States in regard to the Bretton Woods agreement?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Oh, no. We cannot do anything like this, except subject to the approval of parliament.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

Could the minister tell the committee exactly what the experience has been in regard to the attitude of Russia? I remember that when we had the London and Washington conferences Russia refused to participate. They sat in, and that was all. Then finally I understand at Bretton Woods they gave in, shall I say, or at all events signed the agreement. To-day Russia is a signatory as far as her exports are concerned, but has the Russian government signed the Bretton Woods agreement or definitely committed itself to it?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

No, not as far as I know.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

Have they asked for any special consideration in regard to this agreement? I received notification from London that they had refused to have their internal currency tied up to gold in any shape or form. Has Russia asked for any different treatment from that to which the other nations have agreed?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

Not to the knowledge of the Canadian government.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

William Ross Macdonald (Deputy Speaker and Chair of Committees of the Whole of the House of Commons)

Liberal

The CHAIRMAN:

Shall I report the resolution?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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?

Some hon. MEMBERS:

Carried.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

No; it is not anywhere near carried. I wish to find out what the minister meant by certain expressions he used in his speech, but I will tell the committee what we in this group think with respect to the origin of this whole matter. We believe that this thing originated in the United States; we believe that certain powerful citizens in that country got the ear of the administration and caused that administration to originate these proposals. We believe that from the beginning the proposals were definitely for the United States, and that probably the only reason the British brought out a plan was that they were terrified at the possible impact of the United States proposal and brought out one of their own in selfdefence, for the United1 States proposal is based upon gold and the British proposal is based upon goods and services. The British proposal was sane in that respect. If the minister can give us any information that would dispel these fears, it would help. As a

Privilege-Mr. Low

matter of fact, I have a source of information which I think justifies me in believing that this whole proposal originated with the administration of the United States. Can the minister give us any information on that?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

No. My impression was,

and I always thought, that the British started working on their proposal at least as soon as the United States government started working on its proposal; in fact, if I had not checked when the question was asked me I would have said that to the best of my knowledge the British started first. Certainly they started about the same time. We have no reason to think this originated with certain individuals in the United States. I do not know the individuals to whom the hon. gentleman is referring; I have no idea.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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SC

Victor Quelch

Social Credit

Mr. QUELCH:

There is one article that is of considerable importance to the debtor nations; that is article VIII, section 4. This is another section which undoubtedly will greatly embarrass the debtor nations, and I quote:

Convertibility of foreign-held balances.

(a) Each member shall buy balances of its currency held by another member if the latter, in requesting the purchase, represents

(i) that the balances to be bought have been recently acquired as a result of current transactions; or

(ii) that their conversion is needed for making payments for current transactions.

The buying member shall have the option to pay either in the currency of the member making the request or in gold.

The question I should like to ask the minister is this. If a member does not possess gold, how can it buy its currency with gold? It merely states that a member shall buy its currency in gold. Who is to provide , that nation with gold if it is not a gold producer? That is all very well for nations like Canada, the United States, Russia and South Africa and the nations that are heavy gold producers, but what about those nations which are not gold producers? How can they buy currency with gold if they do not possess any?

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

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

Liberal

Mr. MACKENZIE KING:

Will the hon member pardon me? I have to interrupt him for what I have in mind. I know the committee is anxious to have this business concluded, and I wonder if hon. gentlemen would agree to have the committee sit after eleven o'clock in order that we may make progress.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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?

Some hon. MEMBERS:

Carried.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

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

Liberal

Mr. MACKENZIE KING:

Then I would move when the Speaker is in the chair that Mr. Speaker do not leave the chair at eleven

o'clock. Perhaps we would have it understood that we will conclude the debate on the resolution this evening, and get this measure to the committee.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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CCF

Major James William Coldwell

Co-operative Commonwealth Federation (C.C.F.)

Mr. COLDWELL:

I have no objection to extending the sittings of the house, provided that we can get through to-night.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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LIB

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

Liberal

Mr. MACKENZIE KING:

That would

be the understanding.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
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CCF

Major James William Coldwell

Co-operative Commonwealth Federation (C.C.F.)

Mr. COLDWELL:

But if we are not going to get through to-night I see no object in sitting any longer. If there are just a few more questions that have to be asked and we can finish in half an hour or so I would be quite agreeable, but if we cannot get that understanding I am going to say no to the suggestion.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
Permalink
SC

John Horne Blackmore

Social Credit

Mr. BLACKMORE:

The hon. member for Rosetown-Biggar has intimated the truth. It will not do any good to stay here until two o'clock; we will still be here asking questions. As long as the house remains here and discusses Bretton Woods we are going to be here asking questions, until all our questions are answered. I think the new set of questions we started on, as to who originated this plan, are eliciting information which should be of great interest to hon. members. So that I suggest we rise at eleven o'clock.

Progress reported.

Topic:   INTERNATIONAL MONETARY FUND
Subtopic:   INTERNATIONAL
Sub-subtopic:   BANK FOR RECONSTRUCTION AND DEVELOPMENT
Permalink

At eleven o'clock the house adjourned, without question put, pursuant to standing order. Tuesday, December 11, 1945.


December 10, 1945