February 28, 1978

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Some hon. Members:

Hear, hear!

Topic:   ROUTINE PROCEEDINGS
Subtopic:   CONTROL OVER AECL IN INTERNATIONAL NEGOTIATIONS
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PC

William Hillary (Bill) Clarke

Progressive Conservative

Mr. Clarke:

Mr. Speaker, I am referring to paragraphs 5 and 71 of the report tabled yesterday. I realize it has only been 24 hours and perhaps the minister has not had a chance to study those words. I believe my paraphrasing to be accurate. I ask the minister to look at those paragraphs. Is it the opinion of the minister and the government that Mr. Campbell was the most able negotiator to be found to renegotiate this contract? What was the purpose of the government in sending only one man?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   CONTROL OVER AECL IN INTERNATIONAL NEGOTIATIONS
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LIB

Alastair William Gillespie (Minister of Energy, Mines and Resources)

Liberal

Mr. Gillespie:

Mr. Speaker, if the hon. member is referring to renegotiation of the agency arrangement with regard to Korea, the answer is to be found in the decision of the board of directors of the corporation at that time.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   CONTROL OVER AECL IN INTERNATIONAL NEGOTIATIONS
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ROYAL CANADIAN MOUNTED POLICE

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Charles Edward Rea

Mr. Ren6 Matte (Champlain):

Mr. Speaker, I should like to put a question to the Solicitor General.

In view of the fact that on January 9 his predecessor stated that in 1971 the RCMP had issued a communique in the name of the FLQ, and also that in 1970, during the all too famous October crisis, similar releases had been issued which, as was established in court, did not come from the FLQ, would the minister tell the House whether he has had the opportunity, now that he is settled in his department, to look fully into the record of the 1970 October crisis and whether he is aware of this fact, in order to inform the House to what extent the special anti-terrorist RCMP committee had infiltrated into the FLQ?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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Hon. J.-J. Blais@Solicitor General

Mr. Speaker, I have not yet had time to look fully into the record of the 1970 October crisis, as the hon. member has suggested.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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SC

René Matte

Social Credit

Mr. Matte:

Mr. Speaker, the minister answers my question as if he had never read the questions I have been putting in this House for a long, long time now. To my mind, it is time the truth were known in that regard. I therefore ask the Solicitor General, as a supplementary, whether he agrees that it is part of the RCMP's normal functions to infiltrate groups of criminals-

Oral Questions

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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?

An hon. Member:

Terrorists!

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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SC

René Matte

Social Credit

Mr. Matte:

-of terrorists, yes, to stimulate their activities: does he at least agree with that principle?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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LIB

Jean-Jacques Blais (Solicitor General of Canada)

Liberal

Mr. Blais:

Mr. Speaker, if I remember correctly, two weeks ago the hon. member expressed his opinion on this matter, and I believe that, in his speech, he recognized that we agree it was our responsibility to infiltrate terrorist, subversive groups, which fall within the definition of section 16(2) of the Official Secrets Act.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   ROYAL CANADIAN MOUNTED POLICE
Sub-subtopic:   INQUIRY WHETHER MINISTER HAS STUDIED RECORD OF FLQ CRISIS
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MINISTERS INVOLVED IN FINANCIAL ASPECTS OF SALE OF CANDU REACTORS

PC

Arthur Ronald Huntington

Progressive Conservative

Mr. Ron Huntington (Capilano):

Mr. Speaker, I have a question for the Minister of Energy, Mines and Resources. Was the president of the Export Development Corporation telling the truth when he told the public accounts committee on November 29 at least four or Five senior cabinet ministers were involved in financing decisions concerning both the Korean and Argentinian Candu reactor sales?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   MINISTERS INVOLVED IN FINANCIAL ASPECTS OF SALE OF CANDU REACTORS
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LIB

Alastair William Gillespie (Minister of Energy, Mines and Resources)

Liberal

Hon. Alastair Gillespie (Minister of Energy, Mines and Resources):

Mr. Speaker, the hon. member is raising a question which was properly raised before the committee. I am not familiar with the particular testimony to which the hon. member is referring. I will be pleased to read the report to determine whether there are allegations of that kind in it, and provide the hon. member with an answer at a later date.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   MINISTERS INVOLVED IN FINANCIAL ASPECTS OF SALE OF CANDU REACTORS
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PC

Arthur Ronald Huntington

Progressive Conservative

Mr. Huntington:

I would advise the minister that the testimony I am speaking of was given on November 29 after the committee had finished the hearings concerning AECL. We were advised then that four or five ministers were involved in these decisions. Does the minister, as part of the cabinet committee on these matters, accept responsibility for the terms and conditions of these reactor deals with Korea and Argentina, both of which deals were subjected to strong criticism in the report tabled yesterday?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   MINISTERS INVOLVED IN FINANCIAL ASPECTS OF SALE OF CANDU REACTORS
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LIB

Alastair William Gillespie (Minister of Energy, Mines and Resources)

Liberal

Mr. Gillespie:

Mr. Speaker, the hon. member referred to the Export Development Corporation in his first question. I agreed to take that matter under advisement and provide an answer at a later date. As to the question of the Argentinian renegotiation, as the hon. member knows, that was the reason Mr. Campbell was brought back from Japan, where he was serving as ambassador, to renegotiate the fiscal terms of the contract. The successful result of those negotiations was a saving in the order of $80 million. That is the report 1 have been given. I have to say that Mr. Campbell did a first-rate job in renegotiation of the Argentinian contract as well.

February 28, 1978

Oral Questions FINANCE

Topic:   ROUTINE PROCEEDINGS
Subtopic:   MINISTERS INVOLVED IN FINANCIAL ASPECTS OF SALE OF CANDU REACTORS
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VALUE OF CANADIAN DOLLAR-TOTAL GOVERNMENT BORROWING TO IMPROVE EXCHANGE RATE

PC

Sinclair McKnight Stevens

Progressive Conservative

Mr. Sinclair Stevens (York-Simcoe):

Mr. Speaker, my question is for the Minister of Finance. As the minister continues to seed uncertainty in the marketplace with his inadequate statements and lack of decisive action on many financial matters, will he, in view of the still falling 89-cent Canadian dollar, clarify for the House and the Canadian public his statement of last evening-made outside this House-that it was the intention of the administration to take down $200 million of their $1.5 billion line of credit, but that it was only one sequence in a group of borrowings planned by the administration? What do they plan to borrow in total, and for how long?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   VALUE OF CANADIAN DOLLAR-TOTAL GOVERNMENT BORROWING TO IMPROVE EXCHANGE RATE
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LIB

Joseph Jacques Jean Chrétien (Minister of Finance)

Liberal

Hon. Jean Chretien (Minister of Finance):

Mr. Speaker, after careful consideration, I made a statement yesterday. We decided to borrow $200 million yesterday. The stand-by credit is there. The governor of the Bank of Canada will be borrowing more when it is judged necessary.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   VALUE OF CANADIAN DOLLAR-TOTAL GOVERNMENT BORROWING TO IMPROVE EXCHANGE RATE
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PC

Sinclair McKnight Stevens

Progressive Conservative

Mr. Stevens:

As business confidence continues to fall day by day, as shown by the Bank of Montreal's recent poll, due largely to the administration's inept handling of so many economic matters, will the minister at least clarify his borrowing intentions with regard to our balance of payments deficit? He indicated one week ago that he plans to borrow foreign funds to help cover the balance of payments deficit. What is the magnitude of that borrowing? To what degree will he cover that deficit, which is now estimated to be almost $6 billion?

Topic:   ROUTINE PROCEEDINGS
Subtopic:   VALUE OF CANADIAN DOLLAR-TOTAL GOVERNMENT BORROWING TO IMPROVE EXCHANGE RATE
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LIB

Joseph Jacques Jean Chrétien (Minister of Finance)

Liberal

Mr. Chretien:

Mr. Speaker, there is another flow of capital coming into Canada outside of the planned borrowing by the federal government. We are in negotiation at this time. When agreement is reached, I will make it public.

Topic:   ROUTINE PROCEEDINGS
Subtopic:   VALUE OF CANADIAN DOLLAR-TOTAL GOVERNMENT BORROWING TO IMPROVE EXCHANGE RATE
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February 28, 1978