May 1, 1964

LIB

Paul Joseph James Martin (Secretary of State for External Affairs)

Liberal

Hon. Paul Marlin (Secretary of Slate for Exlernal Affairs):

In accordance with the practice followed on previous occasions, I should like to report that we have had a visit to Ottawa of United States cabinet members and senior officials who attended a two day meeting here on Wednesday and Thursday of the joint United States-Canadian committee on trade and economic affairs. This meeting provided an opportunity for Canadian ministers to discuss at first hand with the United States secretaries a range of important matters in Canada's relationship with the United States.

This was the ninth meeting this body has held since it was set up in 1953. It was evident in our discussions that good progress has been made during the past year in resolving the difficulties which exist in relations between the two countries. There has been a general improvement in our relations. There is today a determination in both countries that we should co-operate closely in resolving problems and promoting the interests of the two countries in economic and trade matters. The United States recognizes that there is an imbalance for Canada in its trade and payments with the United States, and agrees with our desire to improve our current account through an expansion of exports.

We had good discussions of ways in which we can expand our mutual trade and our trade with the rest of the world in manufactured goods, industrial materials and agricultural products. We have a common interest in working for the success of the forthcoming Kennedy round of GATT tariff and trade negotiations which opens next Monday in Geneva. These negotiations could lead to important gains for Canada's export trade.

During our two day meeting we dealt with many other trade and economic matters of importance to Canada, such as difficulties Canadian exporters are encountering as a 20220-179

U.S.-Canadian Trade Meeting result of the recent reclassification of the United States tariff. We are hopeful that United States restrictions on imports from Canada of lead and zinc and cheese can be eased. A program of studies relating to the utilization of the energy resources of the two countries was initiated.

We also had a good discussion of the Canadian automobile program which was introduced last November with the purpose of rationalizing production in Canada and increasing the efficiency of the Canadian industry. Our program is already showing itself to be successful. During recent months trade in motor vehicles and parts has been increasing substantially in both directions.

This visit to Ottawa of Mr. Rusk and his colleagues provided opportunities for Canadian ministers and their United States counterparts to have talks on other matters of joint concern. As the Prime Minister indicated in the house yesterday, we discussed the question of improving the highway to Alaska. We heard from the United States their ideas on the possible development of Passamaquoddy tidal power and we discussed great lakes water levels. I was particularly gratified to have an opportunity to review with the United States secretary of state a number of problems of critical concern internationally, particularly in view of the fact that he has just returned from visiting two countries in Indo-China.

Our discussions here on Wednesday and Thursday demonstrated clearly the wide range of common interests between Canada and the United States and the readiness of our two governments to co-operate in furthering our common interests. Where problems exist, these discussions at cabinet level serve to bring about a better understanding of each other's interests and policies. We are exploring the possibility of further developing principles which would facilitate co-operation in economic and other policies. We look forward to the next meeting of this committee, which will be held in Washington within the coming year.

Mr. Speaker, for the information of the house I wish to table copies, in French and English, of the communique which was issued at the end of the meeting yesterday.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Right Hon. J. G. Diefenbaker (Leader of the Opposition):

Mr. Speaker, the communique which has now been tabled will be found on examination to be a most bland document; it is notable for its omissions. There is no mention of the situation on the great lakes or the turning over of the S.I.U. to the control of one who is in turn controlled by Mr. Hall, the head of the international union. There is

U.S.-Canadian Trade Meeting no mention of the Passamaquoddy, although the minister made a passing reference to it. Certainly these meetings are beneficial in bringing together the ministers of both countries and in discussing economic matters; but when the minister a moment ago referred to the good progress that has been made in the last year in regard to the solution of problems between Canada and the United States, you may have missed it, sir, but there was a flicker of a smile on his face as he said that.

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?

Some hon. Members:

Oh, oh.

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LIB

Paul Joseph James Martin (Secretary of State for External Affairs)

Liberal

Mr. Marlin (Essex East):

Mr. Speaker, on a point of order. The right hon. gentleman has much licence in this house but he must not impose too much on the judgment of the house.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

The hon. gentleman is interrupting all the time-

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LIB

Paul Joseph James Martin (Secretary of State for External Affairs)

Liberal

Mr. Marlin (Essex East):

Mr. Speaker, there was no flicker of a smile on my face. The fact is that the right hon. gentleman does not like it, but the relations between our two countries have very considerably improved.

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?

Some hon. Members:

Hear, hear.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

Mr. Speaker, the hon. gentleman is smiling again in the same way-

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NDP

Murdo William Martin

New Democratic Party

Mr. Marlin (Essex Easi):

I am smiling at the right hon. gentleman.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

-for he realizes the hollowness of his statement. One has only to read what the under secretary of state, Mr. Ball, said the other day to give a "Ball-ed" answer to the statements made by the hon. gentleman a moment ago. It would have been of interest to learn what the United States representatives said in support of Mr. Ball's contention that under this government there have been punitive and discriminatory tax measures taken, directed against American investment. It would have been of interest to hear Mr. Ball's contribution as a member of this group, and I would like to have known what the Canadian attitude was in this regard and which viewpoint was expressed on behalf of Canada. Was the viewpoint expressed that which is heard from time to time from the Prime Minister and the Minister of Finance? The other day the Minister of Finance spoke in New York and said, in regard to foreign investment in Canada, a matter of tremendous interest to any economic meeting of ministers:

But Canadians are worried about the consequences of ail this foreign investment upon the control of Canadian industry-

Rightly or wrongly, many of us feel the rising trend in the absentee ownership of our key industries poses a threat to our economic independence.

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NDP

Murdo William Martin

New Democratic Party

Mr. Marlin (Essex Easi):

On a point of order, Mr. Speaker. One does not like to interrupt, but surely the right hon. gentleman will recognize that in introducing that speech which was made altogether outside of yesterday's conference, and which was discussed by my hon. friend on Friday, he is away out of order. All he should now be allowed to do is discuss per se the statement that I made, and not introduce matters which are extraneous and which have nothing to do with the subject matter of the conference.

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?

An hon. Member:

It is embarrassing for you.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

Mr. Speaker, I need only add that it was the minister himself, by his extraneous statements, his opening statements, who brought this about. He made statements that I challenge immediately; statements that had no reference whatever to the meeting but were simply for self glorification. I am simply asking-and I wait for your ruling-whether the views expressed by the cabinet were the views of the Minister of Finance, or were they rather the views of the Postmaster General who, speaking the other day, on April 29, said

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?

Some hon. Members:

Order.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

- "American domination"-

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Maurice Bourget (Speaker of the Senate)

Mr. Speaker:

Order, please. I had hoped that with the approach of the week end we might be able to make faster progress. The question is a point of order, and generally speaking the interpretation of statements on motions should be restrictive; they should be limited to a discussion of the matters raised in the statement. I am glad to tell the house that I hope the subcommittee on procedure will be introducing some refinements very shortly; but in view of the fact that the Leader of the Opposition is a man of very considerable parliamentary skill and experience I know he will listen to the suggestion I make, that if possible the clear interpretation of statements, and answers or criticisms of statements in the house, should be limited to the statements.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

Mr. Speaker, as always I bow to your ruling; and you would have also ruled if I had interrupted, I am sure, that the extraneous statements made by the minister impelled and provoked me into answering them, and he was afraid of the answer. I was endeavouring to ascertain what

the viewpoint of the Canadian government was on this matter, because two viewpoints have been expressed, one of the Minister of Finance and the other of the Postmaster General, who contended that "American domination" was "invoked to ridicule Canadian authority, to shame Canadian national pride". I wondered which viewpoint had been expressed with reference to the communique.

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?

Some hon. Members:

Hear, hear.

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PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

Mr. Diefenbaker:

Mr. Speaker, the applause is well timed. Up to the present time I was answering the remarks of the hon. gentleman that were outside of the communique, and having done that I now proceed to deal specifically with the communique.

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?

Some hon. Members:

Oh, oh.

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May 1, 1964