Right Hon. L. S. St. Laurent (Prime Minister):

I should like to inform the house that the governor general has just approved the appointment of a royal commission to review the financial position of the province of Newfoundland in accordance with section 29 of the terms of union with Newfoundland. The terms of reference of the commission are of course those set forth in that section of the terms of union.

We have been fortunate in securing the services as commissioners of Hon. John McNair, chief justice of New Brunswick, who will be the chairman, Hon. Sir Albert Walsh, chief justice of the supreme court of Newfoundland, and Professor John Deutsch of the University of British Columbia, a distinguished former public servant of Canada. I should like to lay on the table two copies of the order in council establishing the commission.

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

May I ask the Prime Minister when it is expected that commission will be able to commence its work?

Mr. St. Laurent (Quebec East):

Mr. Speaker, I assume it will commence its work almost immediately. It will no doubt, as other royal commissions have done, have a preliminary meeting to determine the procedure that the commissioners will follow in making their investigation and probably determining the time within which they will expect to receive briefs from the government of Newfoundland and those in Newfoundland who may wish to make representations. There will also no doubt be representations made on behalf of the government of Canada with the information we have about the facts that will have to be the basis of whatever recommendations the commission will find it opportune to make in strict accord with the terms of union which, as the hon. gentleman will remember, were confirmed by an act of this parliament and by an act of the parliament at New Westminster because it has a bearing upon the whole of the British North America Act and its amendments.

Mr. Thomas M. Bell (Saint John-Alberl):

Mr. Speaker, may I ask a supplementary question? Will it be possible to include some of the general problems of the Atlantic region under this commission, even though it may be a little bit further than the terms of union?

Mr. St. Laurent (Quebec East):

No, Mr. Speaker; this commission will be restricted to carrying out the terms of union. They will probably have to examine what the position is in the Atlantic region in order to come to a conclusion with respect to the maintenance of public services in Newfoundland equal to those that prevail in the Atlantic area without a heavier burden of provincial taxation in Newfoundland than in the other provinces of the Atlantic area. Those will be matters that they will have to look into. But from the qualifications of the members of the commission I expect and hope that their recommendations will be strictly in accord with the terms of union that were sanctioned by parliament at the time the union took place.

Mrs. Ellen L. Fairclough (Hamilton West):

I should like to address a question to the Prime Minister with reference to the announcement which was just made regarding the royal commission. Is the Prime Minister of the opinion that the terms of reference will be sufficiently broad to allow an inquiry

Inquiries of the Ministry into the working conditions and job opportunities of employees of Canadian National Railways who, I understand, have been affected under this one section?

Mr. Si. Laurent (Quebec East):

I think the hon. lady is quite as competent as I could be to interpret the terms of union and the manner in which such distinguished jurists as the chief justice of New Brunswick and the chief justice of Newfoundland, and such a competent economist as Mr. John Deutsch, will feel it their duty to interpret them in order to carry out the intent of that clause of the terms of union.

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

Mr. Speaker, will the Prime Minister bring the house up to date with regard to the situation in the Suez canal. We read dispatches to the effect that Egypt is now delaying the clearing of the canal. Yesterday afternoon there were press dispatches to the effect that she had rejected the proposal of Great Britain, the United States and Norway for the temporary operation of the canal once it is cleared. Canada has quite a large stake in this clearance of the canal. I was wondering whether the Prime Minister could tell us what the actual situation is at the present time?

No, Mr. Speaker. I have no official information that goes beyond what has been reported in the newspapers. I have seen over the last few days these reports that there was delay in the operations but there has been no report yet to that effect from General Wheeler who is in charge of the operations.

With respect to the proposals that had been made as to the manner in which the canal would be operated after it was cleared, those proposals were made by the principal users of the canal of which, as the hon. gentleman knows, Canada is not one; and we have no official information in that regard. As the hon. gentleman knows, there is still uncertainty as to whether the debate is going to take place this morning or whether there is to be another postponement. Our information was that the debate would begin this morning, when the attitude to be taken by the various members will become officially known.

Mr. Green:

Can the Prime Minister say

whether it is a fact that Egypt has rejected this proposal for the operation of the canal?

I ask that because, as I understand it, the debate in the United Nations today is not directly concerned with the Suez canal at all?

Mr. St. Laurent (Quebec East):

No, Mr. Speaker, I have no official information about that. All I know is what the newspapers have reported both about the terms of the proposal and the fact that it is now stated Egypt has not accepted those terms.

Mr. F. G. J. Hahn (New Westminster):

Mr. Speaker, I should like to address a supplementary question to the Prime Minister respecting the Middle East situation. It arises out of his answer in regard to the newspaper item that that is all he could go by. Has the Prime Minister considered a note of protest to the United Nations to the effect that the United Nations is not living up to its agreement in the use of the Canadian forces now in the Middle East?

Mr. St. Laurent (Quebec East):

Well, of course, we will consider anything that is brought to our attention, but it is not my impression at this time that there are grounds for any kind of protest.