Hon. Howard C. Green (Secretary of State for External Affairs):

Mr. Speaker, as the house knows this question has been under consideration for some time. When a decision is reached it will be announced in the usual way.

Mr. Leon Crestohl (Cartier):

Mr. Speaker, I should like to address a question to the Secretary of State for External Affairs. Can the minister inform the house whether his officials have received any further report on the incident which took place in Brazil, in which two Canadian judges were injured?

Hon. Howard C. Green (Secretary of State for External Affairs):

No, Mr. Speaker, I have no further report. I sent off a message this morning expressing sympathy for and admiration of the president of the Exchequer Court, and in addition giving our ambassador instructions to do everything he can to help.

Hon. J. W. Pickersgill (Bonavisfa-Twillin-gate):

Mr. Speaker, I should like to ask the Secretary of State for External Affairs whether in his recent conversations with the secretary of state of the United States he had any opportunity informally to find out whether it would be possible to open active negotiations to secure a 12 mile fishing limit without further delay.

Hon. Howard C. Green (Secretary of State for External Affairs):

No, Mr. Speaker. That subject was not discussed in Paris.

(Translation):

Mr. Gilles Gregoire (Lapointe):

Mr. Speaker, I rise on a question of privilege following the reply given by the Canada Council, which has violently denied charges that the Canada Council is illegally disposing of funds to loan companies.

Mr. Speaker, as recorded in Hansard of last Friday, I have never said that the Canada Council was disposing of funds to loan companies. I did say, however, that the Canada

Inquiries of the Ministry Council was lending money to companies at interest rates as low as 3i per cent. And, in order to support my contention, I should like to table the Canada Council report. You will note on page 167 that $300,000 was lent to the Industrial Acceptance Corporation on a promissory note bearing a 3\ per cent interest.

Mr. Speaker:

Order. An hon. member may rise on a question of privilege only if he can indicate that his words have been wrongly interpreted. There is no question of providing evidence and the hon. member cannot table these documents now.

Mr. Gregoire:

Mr. Speaker, on a point of order. It is not only a matter of interpretation. The statement I made has been denied, and I have the Canada Council document here to prove-

Mr. Speaker:

Order. I think it is permissible to an hon. member to deny what has been said in the house but, in this case, he is denying something that has been said outside the house, thus raising a controversial issue.

Mr. Jean-Paul Cook (Monlmagny-L'Islel):

Mr. Speaker, my question is addressed to the Prime Minister.

Can the right hon. gentleman tell the house whether he has received from the chairman of the Canada Council board of directors, Mr. Weldon, a communication explaining the policy of the council? And if such is the case, could he summarize it for the benefit of the house?

(Text):

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

I have a lengthy statement here which was sent me by Dr. Trueman, director of the Canada Council, and by leave of the house I shall read that statement.

The Canada Council does not lend money to governments, corporations or individuals. It invests its funds, subject to the terms of the Canada Council Act, in securities which are sold in the market place, having due regard to the return from these securities, their term to maturity and their quality. These investments include the employment of funds for temporary periods in the short term market, and among the securities purchased are treasury bills, short term bonds and commercial and finance company notes. The investments in short term securities, as indeed in all the securities purchased, are made with the objective of maximizing the fund's income, and the selection of securities depends on their relative yield and quality at the time of purchase. The council is very much concerned that it obtain the highest possible return from its investments in its efforts to meet the urgent and growing demands upon it for scholarships and grants.

The investments of the Canada council are made on the recommendation of an investment committee, four members of which are appointed by the governor in council and one by the members of the council itself. At present the membership of

Inquiries of the Ministry the investment committee is as follows: Mr. Graham Towers, former governor, the Bank of Canada; Mr. G. Arnold Hart, president and chief executive officer, the Bank of Montreal; Mr. Marcel Faribault, president and general manager, le Trust General du Canada; Mr. J. G. Hungerford, president, National Trust Company; and Mr. Weldon as chairman of the Canada Council.

The council's investments are carried out and supervised by the firm named in this statement. If there is any further information necessary in this connection it could be secured when the accounts of the Canada Council are before the public accounts committee.