April 5, 1966

TRANSPORT AND COMMUNICATIONS

CONCURRENCE IN FOURTH REPORT OF STANDING COMMITTEE


Mr. Joseph Macaluso (Hamilton West) presented the fourth report of the standing committee on transport and communications, and moved that the report be concurred in. Motion agreed to. [Note: Text of foregoing report appears in today's Votes and Proceedings.] [DOT] (2:40 p.m.)


MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS

LIB

Mitchell William Sharp (Minister of Finance and Receiver General)

Liberal

Hon. Mitchell Sharp (Minister of Finance):

Mr. Speaker, I ask leave of the house to table a press statement being issued today by the Canadian Wheat Board announcing the increased quantities involved in the new long term wheat agreement between the board and the China National Cereals, Oils and Foodstuffs Import and Export Corporation.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
LIB

Lucien Lamoureux (Speaker of the House of Commons)

Liberal

Mr. Speaker:

Does the minister have leave to table this document?

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
?

Some hon. Members:

Agreed.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
LIB

Mitchell William Sharp (Minister of Finance and Receiver General)

Liberal

Mr. Sharp:

Hon. members will recall that both parties concluded an agreement last fall covering the sale and purchase of from 112.0 to 186.7 million bushels between August 1, 1966 and July 31, 1969. It has now been agreed that the quantities involved will be increased to a minimum of 168 million bushels and a maximum of 280 million bushels over the three year period. At maximum levels the total value of wheat shipments under this agreement will be approximately $550 million.

The board also announced the first sales contract under the revised agreement. The contract calls for the shipment of 59.7 million bushels of wheat during the first five months of the new crop year.

The new long term agreement provides for credit terms of 25 per cent cash and 75 per

cent in 18 months, which are identical to those in the previous agreement. A revolving credit level of over $200 million was required to facilitate this agreement and the government will provide the credit guarantee which makes this business possible.

I should also like to advise the house that agreement has now been reached as to the quantities of sensitive goods which the Chinese export organizations may export to Canada for the year beginning August 1. It will be recalled that when the new long term agreement on wheat was signed last October it was agreed that the annual dollar value ceiling on exports of such products should be fixed at $10 million per year. The individual product quotas were to be settled later. This has now been done.

With the consent of the house I would like to table this new quota list, and may I suggest that for the convenience of hon. members it be printed as an appendix to Votes and Proceedings.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
LIB

Lucien Lamoureux (Speaker of the House of Commons)

Liberal

Mr. Speaker:

Is that agreed?

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
?

Some hon. Members:

Agreed.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
PC

Francis Alvin George Hamilton

Progressive Conservative

Hon. Alvin Hamilton (Qu'Appelle):

Mr. Speaker, we have been expecting this announcement since last fall, when the Chinese delegation visited Canada and negotiations were started in relation to the additional approximately 30 million bushels per year. At that time some of us hoped that the agreement would be extended for a five year period, but be that as it may, I am very grateful, speaking for western Canadians and I hope all Canadians, that we have been able to supply the extra 30 million bushels to meet the Chinese needs.

I hope, too, that the government will consider very seriously not only the final establishment of the list of sensitive goods the Chinese can export to Canada, but the pledge the previous minister offered to the Chinese in relation to the setting up of a non-official trade office here in Canada. The Chinese have these offices now in more than a score of countries, and I am sure they would take it very kindly indeed if we gave them the opportunity of putting one or two of their people here so our importers could contact them in Canada to arrange for the import of

April 5, 1966

Wheat Sales to China

goods through direct representatives of the Chinese.

I would personally go one step further and suggest that we should ask the Chinese to establish stores in Canada where their handicraft goods could be displayed for all those who wish to see them. I believe we have some responsibility to the Chinese to do something positive to help them find markets for their goods, not only in this country but all over the world.

This market has turned out to be not only large and growing, but is now considered permanent. The Chinese not only want more grain, but I think are quite willing to try to find markets for their goods all over the world in order to pay for it. This breakthrough into the Chinese market has significance far beyond the mere dollars and cents value of the foreign exchange it earns for Canada. It gives us a chance to make contact with them and discuss matters other than the mere trading that goes on between our two countries.

I hope that some day our neighbour to the south will see fit to amend its Alien Trading Act and its Foreign Assets Control Act and allow the American people to trade with this, the largest country in the world. It is not a new concept wherein you trade with a nation which you do not recognize. I think the peace of the world would be improved if these steps were taken.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
NDP

Edward Richard Schreyer

New Democratic Party

Mr. Ed. Schreyer (Springfield):

Mr. Speaker, I am sure the announcement that was made a few minutes ago by the Minister of Finance will be welcomed by the people of this country, particularly our wheat producers. It seems at first glance that the magnitude of the additional sale is very great, but I venture to say that the additional sale does not really amount to that much. It would seem to amount to the order of 56 million to 94 million bushels over and above that which was earlier anticipated. If one carries this over the period of three years it does not mean as much in extra sales to the Chinese mainland as we should like to see.

It has already been suggested by the previous speaker that Canada should take additional steps to foster increased trade with China, even to the extent of setting up an unofficial agency in order to trade with that country. It seems to me the government of Canada should look seriously at the prospect

and desirability of recognizing the government of mainland China, because among other things it would provide for more official machinery for expanding and fostering trade between the two countries. I would hope that in the light of continuing large scale sales to China the Department of Trade and Commerce and the government will put increased pressure on the Department of External Affairs with a view to having Canada rethink its policy vis-a-vis China.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
RA

David Réal Caouette

Ralliement Créditiste

Mr. Real Caoueite (Villeneuve):

Mr. Speaker, the announcement made by the Minister of Finance (Mr. Sharp) indicated clearly that we will increase our wheat exports to the China National Import and Export Corporation and that on the other hand we plan to increase our imports of textiles and textile products.

Now, the minister advises us that, in order to enable the Chineses to increase their wheat purchases in Canada, terms for credit stipulated in the new long-term agreement are 25 per cent cash and 75 per cent in 18 months; these terms are identical to those of former sales. Credit by renewable acceptance of over $200 million was required to facilitate the sale and the government will offer the credit guarantee required to make the deal valid. This means that the Canadian government, that is the Canadian people, will guarantee the credit necessary to enable the Chinese people to purchase more wheat.

We do not object to exporting more wheat, but wheat is not the only thing we can export to China. We may soon see, because of our textiles imports, our own textile mills closed down in the Drummondville and Eastern Townships regions.

It seems to me the government should see to it that we export not only wheat but all other products we have in large quantities and it should enable Canadian industry and domestic commerce to avail itself of credits similar to that now being granted the Chinese people, so that they might sell their products and to bolster their production and distribution.

Once again, we do not object to transactions with China or anyone else, but we must do it for the benefit and advantage of the Canadian people, and not solely to increase the textiles imports coming from China.

Let us first think about Canada, and start at home in the greater interest of the Canadian people.

April 5, 1966

[DOT] (2:50 p.m.)

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink
SC

Horace Andrew (Bud) Olson

Social Credit

Mr. H. A. Olson (Medicine Hat):

Along

with other members who have spoken briefly on this announcement, Mr. Speaker, we welcome what appears to be a continuing and expanding market for Canadian wheat. One of the limiting factors in the sale of wheat during the past season has been the ability of the railroads to deliver this wheat to export positions. We certainly hope the minister and the government will use their influence to impress upon the railways that there is a need for expansion of the necessary facilities to get this wheat to our customers within the time specified.

In addition, Mr. Speaker, there is no mention of any flour in this expanded sales announcement. Of course you cannot sell people flour if they want to buy wheat. However, we hope if there is any possibility that some portion of this wheat can be exported in the form of flour, every effort will be made by the Canadian Wheat Board and by the government to impress upon our customers that we do have a very large milling industry within Canada.

Generally speaking, Mr. Speaker, the performance of the railways during the past few weeks in delivering wheat to the west coast in particular has been far more satisfactory than it was during the early part of the shipping season, from about August until about December. We acknowledge that there has been an increased effort to allocate facilities and equipment to the delivery of this wheat. I want to say again, as has been said so many times in this chamber, that we do not regard the movement of wheat as secondary in so far as the over-all operations of the railway are concerned. This appears to have been the attitude of the railways during the last months of 1965.

So, as I said, we welcome this announcement. We hope there will be an expansion in our transportation facilities so we can meet all the commitments that are made, as well as being in a position to accept additional sales later this season.

Topic:   MAINLAND CHINA-INCREASED WHEAT SALES AND QUOTA LIST ON EXPORTS
Permalink

EXPORT AND IMPORT PERMITS ACT

AMENDMENT TO EXTEND OPERATION FOR THREE YEARS

LIB

Robert Henry Winters (Minister of Trade and Commerce)

Liberal

Hon. Roberi Winters (Minister of Trade and Commerce) moved

the first reading of Bill No. S-23 (from the Senate), to amend the Export and Import Permits Act.

Motion agreed to and bill read the first time.

Inquiries of the Ministry EXTERNAL AFFAIRS

Topic:   EXPORT AND IMPORT PERMITS ACT
Subtopic:   AMENDMENT TO EXTEND OPERATION FOR THREE YEARS
Permalink

RHODESIA-ATTEMPTED DELIVERY OF OIL BY GREEK TANKER


On the orders of the day:


PC

John George Diefenbaker (Leader of the Official Opposition)

Progressive Conservative

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

Mr. Speaker, I wish to address a question to the Secretary of State for External Affairs. May I ask him whether he has any further word in connection with the Greek tanker which apparently was intercepted by a British warship because it was believed that its oil was destined for Rhodesia? What is the present position in this regard? Does the Canadian government approve of the action taken in stopping this ship; what is the position as to the ownership of the ship; has there been a change in registration, and are any commonwealth countries represented in the ownership of the ship in question?

Topic:   RHODESIA-ATTEMPTED DELIVERY OF OIL BY GREEK TANKER
Permalink

April 5, 1966