May 1, 1959

EXTERNAL AFFAIRS

REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP

PC

Daniel Roland Michener (Speaker of the House of Commons)

Progressive Conservative

Mr. Speaker:

May I have leave of the house to table in English and in French the report of the first joint meeting of the group of congressmen, senators and members of the House of Representatives of the United States and of Canadian parliamentarians which was held in Washington on January 9 and 10 last, which group adopted the name "Canada-United States interparliamentary group". Hon. members are familiar in general with what took place, but this report is submitted on behalf of the Canadian group.

Topic:   EXTERNAL AFFAIRS
Subtopic:   REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP
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PC

John George Diefenbaker (Prime Minister; Secretary of State for External Affairs)

Progressive Conservative

Right Hon. J. G. Diefenbaker (Prime Minister):

Mr. Speaker, with the leave of the house I suggest that this report be printed as an appendix to Hansard. I feel it is not out of the way for me to say that you and the Speaker of the Senate and the other hon. members of this committee in co-operation with the representatives of the United States government laid the foundations for a most effective organization for the extension of mutual knowledge and understanding between our countries. Because of the importance of this report I trust that the house will agree with the suggestions I make.

Topic:   EXTERNAL AFFAIRS
Subtopic:   REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP
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LIB

Lester Bowles Pearson (Leader of the Official Opposition)

Liberal

Hon. L. B. Pearson (Leader of the Opposition):

Mr. Speaker, I think it is a very appropriate suggestion that this report be printed as an appendix to Hansard, dealing as it does with the first meeting of a committee which we hope through its work will make an effective contribution to better relations between our two countries.

Topic:   EXTERNAL AFFAIRS
Subtopic:   REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP
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PC

Daniel Roland Michener (Speaker of the House of Commons)

Progressive Conservative

Mr. Speaker:

Is it the wish of the house that this report be printed as an appendix to today's Hansard?

Topic:   EXTERNAL AFFAIRS
Subtopic:   REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP
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?

Some hon. Members:

Agreed.

[For text of document above referred to, see appendix, pages 3272-4.]

Topic:   EXTERNAL AFFAIRS
Subtopic:   REPORT OF FIRST JOINT MEETING OF CANADA- UNITED STATES INTERPARLIAMENTARY GROUP
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DEFENCE PRODUCTION

STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS

LIB

Donat Raymond

Liberal

Hon. Raymond O'Hurley (Minister of Defence Production):

Mr. Speaker, I wish to

make a statement on "buy American" regulations. As a result of our discussions with United States authorities regarding production sharing, the United States government has now made important changes in its armed services procurement regulations. These changes relate to the application of the buy American act to United States defence purchases in Canada. Their effect will be to give Canadian defence industry a much greater opportunity to share in the production of military equipment for the United States armed forces.

Under the new regulations the three United States services have adopted a common approach, and Canadian businessmen will no longer need to keep themselves informed on three different interpretations of the buy American act.

The key provision of this new approach is that Canadian supplies which relate to specific programs of mutual interest to the two governments will be exempt from all the limitations which are normally imposed under the buy American act. Canadian proposals to supply these goods to the United States services will be accepted on the same basis as American bids, giving Canadian sources an equal opportunity with American sources to compete for these orders.

The programs and equipment to which this total exemption will apply are being identified by the United States services in close consultation with my own officials. They will be designated in lists which will be issued by each of the services individually. It is our expectation that these lists will encompass such a wide range of items that Canadian defence industry will find ample scope to participate. These lists will be kept open, and it is the intention that they should be modified from time to time on the basis of continuing consultation.

Canadian manufacturers who are interested in supplying products which are not on the exempt lists will also find their opportunities improved under the new regulations. Canadian tenders or proposals to supply such goods have usually, in the past, been subject to the addition of several percentage differentials in the comparison of bids. Henceforth only the United States tariff will be added to a Canadian bid where non-exempt items are involved.

A third feature of the new regulations is that the total exemption from the buy American restrictions Will also apply to any component parts of the equipment included in

Defence Production

the exempt lists. This means that Canadian manufactures of such components, including a large number of our smaller industries, may find opportunities for taking part in these programs regardless of whether the prime contracts are awarded to Canadian or American firms. Canadian manufacturers of components may in fact find opportunities for sales to United States contractors even outside the range of exempt equipment. Under the regulations any United States defence contractor supplying non-exempt goods may buy up to 50 per cent of the material content of those goods from Canada and still enjoy the status of a domestic source.

I regard these new regulations as further evidence of the growing co-operation between Canada and the United States in defence production sharing, and welcome the promise they give of a greater share for Canadian defence industry in programs designed for our common defence.

Topic:   DEFENCE PRODUCTION
Subtopic:   STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS
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LIB

Lester Bowles Pearson (Leader of the Official Opposition)

Liberal

Hon. L. B. Pearson (Leader of ihe Opposition):

Mr. Speaker, I am sure members of the house will have listened with great interest to the statement made by the minister, and will hope that the changes which have been made in the regulations will work out in practice so that Canadian industry will be able to share in the production of military equipment for the United States armed forces, as I understand from the minister is intended. Perhaps this statement may serve to remove some of the anxiety created by certain statements from Washington by members of the administration there, that this sharing was to take place only in respect of the production of military equipment for use by United States armed forces in Canada.

Perhaps I might also add, Mr. Speaker, that this change underlines the desirability of following up these matters in Washington through appropriate agencies of the Canadian government there. The minister will no doubt recall that in former years there was a special office for the purpose attached to the Canadian embassy, I think, in Washington, and this change underlines the importance of facilities of that kind in Washington which can be of great assistance to Canadian industry.

Topic:   DEFENCE PRODUCTION
Subtopic:   STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS
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CCF

Hazen Robert Argue

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

Mr. Hazen Argue (Assiniboia):

Mr. Speaker, any move that will bring about an increased proportion of defence production orders for Canadian firms is, of course, welcome. The value of the changes that have been made will be known only in the course of time. Whether or not Canadian firms, being much smaller than United States firms, will in fact be able to compete on an equal basis is something that we shall have to determine in the light of events in the future. We

would prefer some general arrangement whereby Canadian industries would be assured a proportionate share of production orders, and we hope that the relaxation of these restrictions will lead to that end.

On the orders of the day:

Topic:   DEFENCE PRODUCTION
Subtopic:   STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS
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LIB

Paul Theodore Hellyer

Liberal

Hon. Paul Hellyer (Trinity):

I wish to direct a question to the Minister of Defence Production. The minister told us this morning that the exemptions from the buy American act would apply to specific requirements of mutual interest to the two governments. My question is this. Who will determine which projects are of mutual interest to the two governments?

Topic:   DEFENCE PRODUCTION
Subtopic:   STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS
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LIB

Donat Raymond

Liberal

Hon. Raymond O'Hurley (Minister of Defence Production):

As I said in the statement, Mr. Speaker, members of the defence department in the United States with officials of my department.

Topic:   DEFENCE PRODUCTION
Subtopic:   STATEMENT ON CHANGES IN U.S. ARMED FORCES PROCUREMENT REGULATIONS
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PENITENTIARY ACT

AMENDMENT PROVIDING FOR USE OF DORMITORIES BY INMATES

CCF

Frank Howard

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

Mr. Frank Howard (Skeena) moved

for leave to introduce Bill No. C-42, to amend the Penitentiary Act.

Topic:   PENITENTIARY ACT
Subtopic:   AMENDMENT PROVIDING FOR USE OF DORMITORIES BY INMATES
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?

Some hon. Members:

Explain.

Topic:   PENITENTIARY ACT
Subtopic:   AMENDMENT PROVIDING FOR USE OF DORMITORIES BY INMATES
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CCF

Frank Howard

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

Mr. Howard:

Mr. Speaker, the relevant section of the Penitentiary Act that the bill seeks to amend is subsection 4 of section 66, which says that every inmate "shall, except in case of sickness, be kept in a cell by himself at night." There is no provision in the act to vary this arrangement, but for quite a number of years now the arrangement has been varied and dormitories have been in use in our penitentiaries. The amendment merely seeks to give the minister and the commissioner of penitentiaries statutory authority to do what they have been doing for the past number of years.

Motion agreed to and bill read the first time.

Topic:   PENITENTIARY ACT
Subtopic:   AMENDMENT PROVIDING FOR USE OF DORMITORIES BY INMATES
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INQUIRY AS TO LIMITATIONS ON FREEDOM OF MOVEMENT

May 1, 1959