April 3, 1962

VETERANS AFFAIRS

SECOND AND THIRD REPORTS OF STANDING COMMITTEE-CONCURRENCE IN SECOND REPORT


Mr. G. W. Montgomery (Victoria-Carleton) presented the second and third reports of the standing committee on veterans affairs, and moved that the second report be concurred in. Motion agreed to.


COTTON TEXTILES-IMPOSITION OF EXPORT QUOTAS BY HONG KONG

PC

Donald Methuen Fleming (Minister of Finance and Receiver General)

Progressive Conservative

Hon. Donald M. Fleming (Minister of Finance):

Mr. Speaker, the house will recall that an international short term arrangement on trade in cotton textiles was negotiated in Geneva last July. Canada signed the arrangement on September 5 and it came into force on October 1, for a period of one year. On February 16 I tabled in the house a copy of a long term arrangement which was being submitted to the governments of participating countries for approval. It is envisaged that the long term arrangement would come into effect on October 1 of this year, when the short term arrangement expires.

These arrangements are aimed at expanding the export opportunities of less developed countries, while at the same time preventing disruption in the domestic markets of importing countries.

Hong Kong is a substantial supplier of very low cost cotton textile goods to Canada. Early this year there was a noticeable increase in Hong Kong's exports to Canada of one important category, cotton slacks and shorts. The colony's exports of this category to Canada had more than doubled between 1958 and 1959. They then increased by a further 80 per cent in 1960 to a level of about 300,000 dozen. This was, by quantity, about 18 per cent of the total market. In 1961 there was a slight decline, which was part of the general falling off in Hong Kong's exports of textiles to Canada. However, shipments of cotton slacks and shorts in December and in January of this year gave every 26207-1-155

indication that exports would rise rapidly and cause further disruption in the Canadian market.

In February the Canadian government requested Hong Kong to impose export restraints under the terms of the short term arrangement. This arrangement provides that an importing country may request an exporting country to apply restraints at a level not lower than actual shipments in the year ended June 30, 1961. Last week Mr. H. A. Angus, director of Hong Kong's department of commerce and industry, visited Ottawa and held discussions with Canadian government officials. As a result of these discussions Hong Kong has agreed to impose export restraints, in accordance with the provisions of the Geneva agreement, totalling 255,000 dozen cotton slacks and shorts, divided as follows: men's 70,000 dozen; women's, 55,000 dozen; children's, 130,000 dozen, for the period ending October 1, 1962.

The United States government has also requested Hong Kong to impose restraints on exports of a number of cotton textile items. On March 19 the United States government announced that it would prohibit the importation for consumption of certain shipments from Hong Kong. This naturally gave rise to some concern in Canada lest large quantities of goods ordered for the United States market be diverted to our market. This possibility was discussed with the visiting Hong Kong officials in connection with their future licensing arrangements. Both sides agreed that it was unlikely that serious problems of this kind would arise for Canada.

Topic:   COTTON TEXTILES-IMPOSITION OF EXPORT QUOTAS BY HONG KONG
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LIB

George James McIlraith

Liberal

Mr. G. J. Mcllrailh (Oitawa West):

I am

sure the textile industry, which has been experiencing some difficulty, will welcome the announcement indicating exactly what has been done in this field as a result of the agreement announced by the minister.

I would point out, however, that this is the first time in my recollection that I have heard a minister, on motions, merely amplify remarks made by a private member in the previous day's debate on a private member's motion. The hon. member for Sherbrooke made the announcement on this subject at five o'clock yesterday. However, to the extent supplements that announcement, we welcome that the minister's statement amplifies and it.

2430 HOUSE OF

Inquiries of the Ministry Mr. H. W. Herridge (Kootenay West): Members of this group wish to thank the minister for confirming the statement made yesterday by the hon. member for Sherbrooke. In view of the fact that the announcement we have just heard was made by the minister on this occasion, we shall examine its contents carefully and express our opinions at a later date.

Topic:   COTTON TEXTILES-IMPOSITION OF EXPORT QUOTAS BY HONG KONG
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EXTERNAL AFFAIRS


On the orders of the day:


LIB

Lester Bowles Pearson (Leader of the Official Opposition)

Liberal

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

Mr. Speaker, may I ask the Prime Minister whether the Canadian government has made any diplomatic representations to the government of Brazil regarding the reported threatened expropriation of Canadian undertakings in that country?

Topic:   COTTON TEXTILES-IMPOSITION OF EXPORT QUOTAS BY HONG KONG
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   BRAZIL-THREATENED EXPROPRIATION OF CANADIAN OWNED COMPANY
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PC

John George Diefenbaker (Prime Minister)

Progressive Conservative

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

Mr. Speaker, shortly put the answer is no. There were no suggestions or requests on the part of officials or officers of Brazilian Traction for any action to be taken in this regard; therefore none was taken.

Topic:   COTTON TEXTILES-IMPOSITION OF EXPORT QUOTAS BY HONG KONG
Subtopic:   EXTERNAL AFFAIRS
Sub-subtopic:   BRAZIL-THREATENED EXPROPRIATION OF CANADIAN OWNED COMPANY
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CIVIL DEFENCE

SUGGESTED BREACH OF SECURITY RESPECTING


On the orders of the day:


NDP

Herbert Wilfred Herridge

New Democratic Party

Mr. H. W. Herridge (Kootenay West):

Mr. Speaker, I wish to direct a question to the Prime Minister based on a most unusual report in today's issue of the Ottawa Journal. In view of a report in today's issue of that newspaper that Canadian Aviation Electronics in a report to shareholders states that it turned over to the Canadian army signals at Carp, Ontario in late 1961 a sophisticated computer tied into NORAD and an advanced electronics display system that will plot air, ground and nuclear detonations activity on a large screen and will keep the army's civil defence teams immediately up to date; and since we thus have revealed the location of government survival and defence operations in the event of nuclear attack, has the Prime Minister any comment to make on this incredible breach of security, or will he have the matter looked into?

Topic:   CIVIL DEFENCE
Subtopic:   SUGGESTED BREACH OF SECURITY RESPECTING
Sub-subtopic:   HEADQUARTERS LOCATION
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PC

John George Diefenbaker (Prime Minister)

Progressive Conservative

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

Mr. Speaker, I cannot accept the general statements made by the hon. gentleman. If I were to answer one way or the other I might be giving information that might be a breach of security. However, in not giving information I do not want it taken that there

has been a breach of security. The interpretation placed by the hon. member upon the actual words and expressions used in the article is not, as I see it, borne out by the facts.

Topic:   CIVIL DEFENCE
Subtopic:   SUGGESTED BREACH OF SECURITY RESPECTING
Sub-subtopic:   HEADQUARTERS LOCATION
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NDP

Herbert Wilfred Herridge

New Democratic Party

Mr. Herridge:

A supplementary question, Mr. Speaker. The Prime Minister, I take it, does not consider there has been a breach of security in this article?

Topic:   CIVIL DEFENCE
Subtopic:   SUGGESTED BREACH OF SECURITY RESPECTING
Sub-subtopic:   HEADQUARTERS LOCATION
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PC

John George Diefenbaker (Prime Minister)

Progressive Conservative

Mr. Diefenbaker:

Questions of breaches of security, Mr. Speaker, are never subject to discussion in the House of Commons.

Topic:   CIVIL DEFENCE
Subtopic:   SUGGESTED BREACH OF SECURITY RESPECTING
Sub-subtopic:   HEADQUARTERS LOCATION
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INDUSTRY

SYDNEY, N.S.-REPORTED PLAN TO ESTABLISH HEAVY WATER PLANT

April 3, 1962