July 23, 1956

PC

John George Diefenbaker

Progressive Conservative

Mr. Diefenbaker:

When Mr. Armstrong made his statement was it supported by any evidence or was it just a generalization?

Topic:   PUBLIC WORKS CORRESPONDENCE
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   ALLEGED COMMUNIST INVESTMENT IN UNITED STATES THROUGH CANADA
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LIB

Lester Bowles Pearson (Secretary of State for External Affairs)

Liberal

Mr. Pearson:

From the reports we have received it was merely a generalization not supported by evidence.

Inquiries of the Ministry

Topic:   PUBLIC WORKS CORRESPONDENCE
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   ALLEGED COMMUNIST INVESTMENT IN UNITED STATES THROUGH CANADA
Permalink

On the orders of the day:


LIB

Walter Edward Harris (Minister of Finance and Receiver General; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Hon. W. E. Harris (Minister of Finance):

Mr. Speaker, last Friday the hon. member for Nanaimo (Mr. Cameron) invited me to comment on the situation arising out of the withdrawal of the United States and British offers of financial help to Egypt in connection with the Aswan high dam project and asked whether I would instruct the Canadian executive director of the international bank to press that institution to finance the project notwithstanding this change in the situation.

I am sure that the house will agree that the offer of aid by one country for a particular project in another country or the withdrawal of such an offer are not matters on which it would be appropriate for me to comment. It may, however, be useful to the house if I recall some of the main facts connected with the role of the international bank in the Aswan high dam project.

The project itself is a very ambitious one consisting of three main elements: First, the construction at Aswan of a dam 400 feet high and three miles long to store the waters of the Nile; second, the use of the stored water to extend perennial irrigation to some two million acres of land, which would raise by one-third the amount of irrigated land in Egypt; and third, the installation of hydroelectric production and distributive systems of a capacity which would more than double the hydroelectric power available to Egypt. The estimated cost of the project and ancillary works is $1,350 million, of which $400 million is represented by private investment, leaving $950 million to be publicly financed. Of this $400 million is represented by foreign exchange requirements and the balance of $550 million by local expenditures on goods and services.

Mr. Eugene Black, the president of the international bank, and members of his staff have been engaged in discussions with the Egyptian authorities and studies of this important and complicated project during the past two or three years. At the end of 1955, Mr. Black indicated that, given the existence of certain conditions, he would be prepared to recommend to the bank's board of executive directors a loan or loans to Egypt for the Aswan high dam. After a careful study of Egypt's economic prospects, the management of the bank concluded that the maximum external debt which the Egyptian economy could be expected to service in respect of the project would be of the order of half the foreign exchange costs, or approximately $200 million. Accordingly, if the project was to be

TMr. Pearson.]

executed without prejudice to the Egyptian economy, it would be necessary for the Egyptian government to find elsewhere the remainder of the needed foreign exchange without imposing additional debt charges on the economy.

The house will be aware that the governments of the United States and United Kingdom had indicated their willingness to provide together on a grant basis some $70 million toward the foreign exchange cost of the first stages of the project and that they would be prepared at a later date, in the light of the then existing circumstances and subject to legislative authority, to give sympathetic consideration to financing the later stages of the project as a supplement to bank lending.

With the withdrawal of United States and United Kingdom offers of assistance, it would appear that the availability of the total foreign exchange requirements of the project on a basis which will not unduly encumber the Egyptian economy can no longer be regarded as assured.

The international bank has issued no statement with regard to this matter. I would not wish to suggest that with regard to any particular project the management of the bank should depart from the normal lending criteria which have been established not only in the interests of the bank itself but of the borrowers. I think the house can be certain that if at some future time a proposal for a bank loan for the Aswan project comes before the executive directors of the bank it will be given careful and sympathetic consideration.

Topic:   PUBLIC WORKS CORRESPONDENCE
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   POSITION OF CANADA AS TO FINANCING OF ASWAN DAM
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On the orders of the day:


CCF

Stanley Howard Knowles (Whip of the Co-operative Commonwealth Federation)

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

Mr. Sianley Knowles (Winnipeg North Centre):

Mr. Speaker, I wish to direct a question to the Secretary of State for External Affairs. Has Canada yet signed the United Nations declaration on political rights of women? If not, is consideration being given by the government to signing this convention?

Topic:   PUBLIC WORKS CORRESPONDENCE
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   POLITICAL RIGHTS OF WOMEN-INQUIRY AS TO SIGNING OF CONVENTION BY CANADA
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LIB

Lester Bowles Pearson (Secretary of State for External Affairs)

Liberal

Hon. L. B. Pearson (Secretary of State for External Affairs):

Mr. Speaker, it is my impression-but I should like to check and make sure that my impression is correct- that we have not yet signed. If we have not yet signed, I am sure consideration is still being given to signing.

Topic:   PUBLIC WORKS CORRESPONDENCE
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   POLITICAL RIGHTS OF WOMEN-INQUIRY AS TO SIGNING OF CONVENTION BY CANADA
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NATIONAL DEFENCE

WEST GERMANY


On the orders of the day:


PC

Harry Oliver White

Progressive Conservative

Mr. H. O. While (Middlesex East):

Mr. Speaker, I should like to direct a question to the Minister of National Defence arising out of an article which appeared in the London Free Press of Saturday, datelined Chatham, Ontario. According to the article Private Tunks, on compassionate leave from Germany, had this to say:

If it were not for the parcels of food from home there would have been mutiny long before now. Canadian troops were on British rations and they are not used to getting bully beef day after day. We might get two eggs a week.

Has the government any knowledge of these allegations? Are Canadian eggs, bacon, cheese and other Canadian products being used for Canadian troops overseas or are they being purchased elsewhere?

Topic:   NATIONAL DEFENCE
Subtopic:   WEST GERMANY
Sub-subtopic:   ALLEGED INADEQUATE RATIONS OF CANADIAN TROOPS
Permalink
LIB

Ralph Osborne Campney (Minister of National Defence)

Liberal

Hon. R. O. Campney (Minister of National Defence):

Mr. Speaker, I have not heard from Private Tunks. His comments on the food are not in accordance with my views with respect to the food I saw issued to the army during my visits to Europe. However, in view of the fact that he has raised the matter I shall look into it and see whether the commodities in which the hon. member is interested are being issued as rations.

Topic:   NATIONAL DEFENCE
Subtopic:   WEST GERMANY
Sub-subtopic:   ALLEGED INADEQUATE RATIONS OF CANADIAN TROOPS
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TELEVISION

MOORE-PARKER BOXING BOUT INQUIRY AS TO TELEVISING


On the orders of the day:


CCF

Clarence Gillis

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

Mr. Clarence Gillis (Cape Breton South):

Mr. Speaker, I should like to direct a question to the Minister of National Revenue. Is the minister in a position to satisfy the curiosity of a lot of people in the city, including members of this house, as to whether the Moore-Parker boxing bout to be held in Toronto will be televised?

Topic:   TELEVISION
Subtopic:   MOORE-PARKER BOXING BOUT INQUIRY AS TO TELEVISING
Permalink
LIB

James Joseph McCann (Minister of National Revenue)

Liberal

Hon. J. J. McCann (Minister of National Revenue):

Mr. Speaker, I am informed that it was not possible to make arrangements. The Toronto papers carried an advertisement this morning to the effect that there would be positively no television.

Topic:   TELEVISION
Subtopic:   MOORE-PARKER BOXING BOUT INQUIRY AS TO TELEVISING
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CRIMINAL LAW

CAPITAL AND CORPORAL PUNISHMENT


On the orders of the day:


July 23, 1956