May 6, 1965

BANK OF CANADA ACT

AMENDMENTS RESPECTING DIRECTION OF MONETARY POLICY, CASH RESERVES, ETC.

LIB

Walter Lockhart Gordon (Minister of Finance and Receiver General)

Liberal

Mr. Waller L. Gordon (Minister of Finance) moved

for leave to introduce Bill No. C-101, to amend the Bank of Canada Act.

Topic:   BANK OF CANADA ACT
Subtopic:   AMENDMENTS RESPECTING DIRECTION OF MONETARY POLICY, CASH RESERVES, ETC.
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?

Some hon. Members:

Explain.

Topic:   BANK OF CANADA ACT
Subtopic:   AMENDMENTS RESPECTING DIRECTION OF MONETARY POLICY, CASH RESERVES, ETC.
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LIB

Walter Lockhart Gordon (Minister of Finance and Receiver General)

Liberal

Mr. Gordon:

The purpose of this bill is to amend the Bank of Canada Act in a number of respects at a time when our chartered banking legislation is being revised and when we have had the benefit of a thorough review of the working of the financial system by the Royal Commission on Banking and Finance.

The most important change is a provision to clarify the relation between the Government and the Bank by authorizing the Government under circumstances specified in the Bill to give the Bank a directive concerning monetary policy. A second important change is to give the Bank statutory power to impose and vary a minimum secondary reserve requirement in place of its present power to vary the minimum cash reserve requirement. A number of technical changes are proposed as well as certain revisions to eliminate obsolete provisions of the act.

Motion agreed to and bill read the first time.

Topic:   BANK OF CANADA ACT
Subtopic:   AMENDMENTS RESPECTING DIRECTION OF MONETARY POLICY, CASH RESERVES, ETC.
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JOINT CANADIAN-U.S. STUDY OF CONTINENTAL RESOURCES


On the orders of the day:


PC

Francis Alvin George Hamilton

Progressive Conservative

Hon. Alvin Hamillon (Qu'Appelle):

I should like to direct a question to the Prime Minister. It arises from a report in today's Globe and Mail of an interview given in Washington yesterday by the Minister of Trade and Commerce. In the course of this interview the Minister indicated-and I quote from the report-

-that the launching of a joint Canadian-U.S. study of continental energy resources, first proposed a few years ago, was being deferred at Canada's request because of a lack of personnel to provide all the information required to lay the foundation for such a study.

I should like to preface my question by reminding the Prime Minister that under his name there appeared an article in the January issue of the Foreign Affairs Quarterly-

Topic:   JOINT CANADIAN-U.S. STUDY OF CONTINENTAL RESOURCES
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?

Some hon. Members:

Order.

Topic:   JOINT CANADIAN-U.S. STUDY OF CONTINENTAL RESOURCES
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PC

Francis Alvin George Hamilton

Progressive Conservative

Mr. Hamilton:

In this article a completely different policy was laid down. In effect, in the course of that article the Prime Minister called on Canada and the United States to step up their efforts to promote development of their industries on a rational continental basis wherever practical.

The obvious question is, what is going on? Will the Prime Minister give us some explanation for this schizophrenia?

Topic:   JOINT CANADIAN-U.S. STUDY OF CONTINENTAL RESOURCES
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LIB

Lester Bowles Pearson (Prime Minister)

Liberal

Right Hon. L. B. Pearson (Prime Minister):

Yes, but not until I have consulted the Minister of Trade and Commerce as to the accuracy of the report quoted by the hon. gentleman. I expect he will be back this evening.

Topic:   JOINT CANADIAN-U.S. STUDY OF CONTINENTAL RESOURCES
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URANIUM

PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE


On the orders of the day:


NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. T. C. Douglas (Burnaby-Coquitlam):

May I ask the Prime Minister a question with regard to the proposed sale of 50,000 tons of uranium to France, to which the Prime Minister referred yesterday on the orders of the day. In view of the somewhat disastrous result of the uranium agreement we had with the United States, will there be any opportunity to discuss this agreement, when it is reached, in the House of Commons before it becomes final? Also I should like to ask whether it is the intention of the Government to sign a 25 year agreement at a fixed price, or whether the price will be fixed for a given period only and be open-ended or subject to negotiation for the balance of the period.

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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LIB

Lester Bowles Pearson (Prime Minister)

Liberal

Right Hon. L. B. Pearson (Prime Minister):

As I said yesterday, the commercial details of these negotiations are being worked out

May 6. 1966

Inquiries of the Ministry by the Canadian corporation and the French authorities. The Government is concerned about matters of policy, including safeguards to make sure that the uranium we sell is sold without violating any international agreements we have made. That is the responsibility of the Government. As to the details of the commercial arrangements, I cannot give the hon. gentleman an assurance that they will be discussed in the House before the agreement is signed. They are subject to negotiation, and that negotiation is going on at the present time both commercially and politically.

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. Douglas:

In view of the fact that if this agreement should be signed along the lines indicated Canada would be committing one quarter of its known uranium reserves, will the Atomic Energy Commission be consulted as to whether this is the best use which could be made of these reserves bearing in mind our future energy needs?

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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LIB

Lester Bowles Pearson (Prime Minister)

Liberal

Mr. Pearson:

Yes, Mr. Speaker, indeed it will be consulted, and has been consulted at every stage of the negotiations.

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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NDP

Thomas Clement (Tommy) Douglas

New Democratic Party

Mr. Douglas:

A further supplementary question, Mr. Speaker. Are the press reports true, to the effect that Canada may delegate to the European Atomic Energy Commission the responsibility for policing this agreement to make sure that Canadian uranium sold to France is not used for other than peaceful purposes?

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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LIB

Lester Bowles Pearson (Prime Minister)

Liberal

Mr. Pearson:

Mr. Speaker, I am not in a

position to confirm the details in regard to the safeguards which may be required. This is a matter under discussion. The report that my hon. friend has referred to is a speculative one at the present time.

Topic:   URANIUM
Subtopic:   PARLIAMENTARY CONSIDERATION OF PROPOSED SALE TO FRANCE
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May 6, 1965