March 2, 1956

ATOMIC ENERGY

URANIUM

LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Right Hon. C. D. Howe (Minister of Trade and Commerce):

Mr. Speaker, on August 3,

1955, I made an announcement with respect to the government's purchasing policy for uranium. In that announcement I stated that, while Eldorado Mining and Refining Limited, the government procurement agent, has a commitment to purchase all acceptable uranium concentrates which are offered under the published price schedule up to March 31, 1962, Eldorado has no commitment to purchase all uranium which is offered at prices higher than those contained in the published price schedule. In the circumstances, it seemed desirable that the mining industry and the public should be informed as to the future policy with respect to purchases under the special price arrangement. I stated that uranium purchased under the special price arrangement was being supplied to the United States atomic energy commission, and that there was a limit on the amount of uranium which would be so purchased. Since it was not possible for security reasons to express this limitation in terms of quantity, it was decided, as an alternative, that Eldorado would not negotiate contracts after March 31,

1956, and that such contracts would not be negotiated unless there was satisfactory evidence that production could commence not later than April 1, 1957.

It has now been decided to modify these arrangements as follows:

Eldorado will continue to receive applications for special price contracts up to and including March 31, 1956. On or shortly after that date Eldorado will notify those applicants which are considered to be eligible for the negotiation of contracts. In making the selection of eligible applicants, the following criteria will be used. First, there must be satisfactory evidence that the applicant has an economic ore body and, second, there must be definite assurance that the property can be brought into production not later than September 30, 1957. There will be no change 67509-1104

in the present provision regarding deliveries. Deliveries under all contracts must be completed by March 31, 1962.

These modifications have been adopted because it has become quite evident in recent weeks that certain of the properties which were considered to be potential producers last August will not be able to meet the production deadline of April 1, 1957. Consequently, it is not anticipated that the total quantity of uranium which will be produced under the special price arrangement, by reason of the extension of the production deadline from April 1, 1957 to September 30, 1957, will be greatly in excess of the quantity which it was estimated might be purchased when the original production deadline of April 1, 1957, was established.

In my announcement of August 3, 1955, I also stated that the government would take under consideration the establishment of policy covering the sale of uranium which might be surplus to Canada's requirements and the commitments entered into with the United States atomic energy commission. Because of the war potential of uranium, the government must establish its export policy with due regard to security provisions. This is one of the reasons that Canada is taking an active part in the discussions of the draft statute for an international agency for atomic energy, which are now under way in Washington. It is considered advisable that any announcement as regards the establishment of export policy should await the outcome of these discussions.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

Howard Charles Green

Progressive Conservative

Mr. Howard C. Green (Vancouver-Quadra):

May I ask the minister a question arising out of his statement. I noticed that he mentioned deadlines in 1957 and in 1958.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

No, 1956 and 1957.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

Howard Charles Green

Progressive Conservative

Mr. Green:

I thought he said extending one deadline to 1957 and the other to 1958.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Port Arthur):

No, the deadline for receiving applications is March 31, 1956, and the deadline for beginning production is September 30, 1957.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

Howard Charles Green

Progressive Conservative

Mr. Green:

Does that mean, in effect, it is the policy for the period of a year?

1740 HOUSE OF

Uranium-Purchasing Policy

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arthur):

This is the only policy we have.

IL ater:l

On the orders of the day:

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

John George Diefenbaker

Progressive Conservative

Mr. J. G. Diefenbaker (Prince Alberl):

Would the Minister of Trade and Commerce, in view of his announcement today regarding uranium, be prepared to say that that means in effect, with the amount of uranium already on hand in stockpiles and the expected production of the mines that will give notice, that they will have until a certain date to give notice and that beyond that it is not expected that any further extension in the production of uranium will be necessary to meet demands in the immediate future?

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arlhur):

That was not the

nature of my announcement. I said that Eldorado Mining and Refining Limited would take delivery of uranium up to 1962 at the published price of uranium, which has been in effect for some years.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

John George Diefenbaker

Progressive Conservative

Mr. Diefenbaker:

But does that mean-

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
?

Some hon. Members:

Order.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
PC

John George Diefenbaker

Progressive Conservative

Mr. Diefenbaker:

I should like even a "yes" or "no" answer as abrupt as the one a moment ago. Does this mean that in the expected production in the future, of those mines now in existence and those that will give notice up till the 31st of March, all the needs for uranium production in Canada will have been met?

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink
LIB

Clarence Decatur Howe (Minister of Defence Production; Minister of Trade and Commerce)

Liberal

Mr. Howe (Pori Arlhur):

That I cannot say. The bulk of the uranium under contract goes to the atomic energy commission of the United States. When the contracts are completed, the contracts that are filed before the 31st of March this year and approved by Canada and by the atomic energy commission we are informed that the foreseeable needs of the atomic energy commission of the United States for uranium from Canada will have been fulfilled.

Topic:   ATOMIC ENERGY
Subtopic:   URANIUM
Sub-subtopic:   ANNOUNCEMENT OF MODIFICATIONS IN GOVERNMENT PURCHASING POLICY
Permalink

COMMITTEE ON ESTIMATES

PERSONNEL OF SPECIAL COMMITTEE

LIB-PRO

William Gilbert Weir (Parliamentary Assistant to the Prime Minister; Chief Government Whip; Whip of the Liberal Party)

Liberal Progressive

Mr. W. G. Weir (Poriage-Neepawa) moved:

That the following members: Messrs. Blair,

Byrne, Cameron (Nanaimo), Cannon, Decore, Deschatelets, Dupuis, Fleming, Garland, Gauthier (Nickel Belt), Hees, Henry, Jutras, Martin, MacEachen, Macnaughton, McLeod, Power (St. John's West), Robertson, Starr, Stewart (Winnipeg North), Stuart (Charlotte), Thatcher, Trainor, Tucker and Yuill, shall constitute the membership of the special committee on estimates, as provided by the resolution passed by the house on February 29, and that standing order No. 67 be suspended in connection therewith.

Topic:   COMMITTEE ON ESTIMATES
Subtopic:   PERSONNEL OF SPECIAL COMMITTEE
Permalink
LIB

Louis-René Beaudoin (Speaker of the House of Commons)

Liberal

Mr. Speaker:

Do hon. members wish me to read the names?

[Mr. Green.l

Topic:   COMMITTEE ON ESTIMATES
Subtopic:   PERSONNEL OF SPECIAL COMMITTEE
Permalink
?

Some hon. Members:

Dispense.

Topic:   COMMITTEE ON ESTIMATES
Subtopic:   PERSONNEL OF SPECIAL COMMITTEE
Permalink

March 2, 1956