July 8, 1955

SALE TO POLAND

TABLING OF ORDER IN COUNCIL


Right Hon. L. S. St. Laurent (Prime Minister): I should like to lay on the table a copy of the order in council with respect to the authorization of an insurance policy for the purchase of wheat by the Polish government. The decision had been made on June 15, 1955. The hon. member had asked me to ascertain the exact date. The formal order in council was passed only yesterday. There had to be details ascertained; but the decision had been made, and hon. members will know that frequently decisions are made by cabinet with instructions that an order in council be prepared and passed. There is, I would not like to call it a routine committee, but I shall call it a small committee of the cabinet which meets more frequently than the whole committee, and it had a meeting yesterday afternoon and passed the order in council which I am now tabling.


PC

Donald Methuen Fleming

Progressive Conservative

Mr. Donald M. Fleming (Eglinton):

May I

ask the Prime Minister if this is an order in council passed under section 21 of the Export Credits Insurance Act-in other words, one not in the ordinary course of business of the corporation?

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent:

It is under section 21 of the act, yes.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
PC

George Alexander Drew (Leader of the Official Opposition)

Progressive Conservative

Hon. George A. Drew (Leader of the Opposition):

Mr. Speaker, while this might be a question that might more properly be asked on the orders of the day, it might be simpler to ask it now. Would the Prime Minister tell us, in view of the fact that there was some time lapse between the decision and the actual order, whether there are any other decisions of a similar nature, of which we have not yet been informed, but which require orders in council under section 21 of the Export Credits Insurance Act.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent:

No. There were no other decisions made. There had been no other application for a decision. There was a question at the time of there also being the possibility of a sale of wheat being arranged

with Hungary, but it had not reached the stage where it was felt that a decision was necessary.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
PC

George Alexander Drew (Leader of the Official Opposition)

Progressive Conservative

Mr. Drew:

Would that be under terms

similar to those accorded to Poland?

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent:

Yes, the original-

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
PC

George Alexander Drew (Leader of the Official Opposition)

Progressive Conservative

Mr. Drew:

I mean in regard to the advance.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent:

Yes, the original suggestion was that there would be a cash payment of only 10 per cent. We found that was not sufficient, and decided that they would be informed that if there was a cash payment of 15 per cent an insurance policy for the payment of the balance within 12 months could be authorized.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
PC

Donald Methuen Fleming

Progressive Conservative

Mr. Fleming:

Mr. Speaker, may I ask the Prime Minister in relation to the matter discussed earlier, namely the order in council passed under section 21 of the Export Credits Insurance Act, whether the government satisfied itself that the government of Poland was not in a position to pay cash for the wheat that was sold?

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
LIB

Louis Stephen St-Laurent (Prime Minister; President of the Privy Council)

Liberal

Mr. St. Laurent:

Well, we satisfied ourselves that whether they were in a position to pay cash or not they would not have made the deal on a cash basis. Their representations were to the effect that they did not have the dollars immediately available but would have them available in the 12 months, and we insisted that there be at least a cash payment on delivery of 15 per cent.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink
PC

George Alexander Drew (Leader of the Official Opposition)

Progressive Conservative

Mr. Drew:

Mr. Speaker, in relation to the question asked by the hon. member for Eglinton, might I ask the Prime Minister this question? In view of certain press comments on this subject, is an effort being made to outbid the United States in the disposition of wheat and foodstuffs? I have before me as an example the report of the financial editor of the Toronto Telegram of July 6 which points out that this is one of the greatest loss-leader sales in history, referring to the Czechoslovakia transaction, and suggests-I do not want to go further than that-that Mr. Gardiner is conducting a series of loss-leader transactions by way of retaliation for the procedure adopted in the United States. I think if there is anything in that we should know it.

Topic:   SALE TO POLAND
Subtopic:   TABLING OF ORDER IN COUNCIL
Sub-subtopic:   AUTHORIZING INSURANCE POLICY
Permalink

S860 HOUSE OF


Wheat-Negotiations with Poland Mr. Si. Laureni: Mr. Speaker, I think it is of value to the Canadian economy that the Leader of the Opposition should raise this question and allow it to be cleared up here. There is no attempt to create as a retaliation against United States policy loss-leader sales. As a matter of fact there is no loss-leader factor involved in this. The butter was sold at the European world price for butter and the wheat is being sold at the prevailing Canadian price for wheat. I understand that the reason these purchases were made from Canada was that the United States law does not permit them to make sales to those countries. As the Leader of the Opposition knows, they have been making sales to countries to which the law permits them to do so. I say making sales; they have been making deliveries for the currency of the purchaser and even in other cases for other considerations that do not represent cash available for the producers.


INQUIRY AS TO ARRANGEMENTS FOR DELIVERY OF FINAL QUOTA


On the orders of the day:


CCF

George Hugh Castleden

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

Mr. G. H. Castleden (Yorkton):

I should like to direct a question to the Minister of Trade and Commerce. Perhaps in his absence the parliamentary assistant will take it as notice. What arrangements have been made to permit producers to deliver their final quota of grain, as announced yesterday by the minister, to the elevator of their own choice?

Topic:   INQUIRY AS TO ARRANGEMENTS FOR DELIVERY OF FINAL QUOTA
Permalink
LIB

John Horace Dickey (Parliamentary Assistant to the Minister of Defence Production)

Liberal

Mr. J. H. Dickey (Parliamentary Assistant lo the Minister of Trade and Commerce):

The

question will be taken as notice and drawn to the minister's attention.

Topic:   INQUIRY AS TO ARRANGEMENTS FOR DELIVERY OF FINAL QUOTA
Permalink

July 8, 1955