March 10, 1944 (19th Parliament, 5th Session)

LIB

Clarence Decatur Howe (Minister of Munitions and Supply)

Liberal

Hon. C. D. HOWE (Minister of Munitions and Supply):

In reply to a question asked yesterday on the orders of the day by the leader of the opposition (Mr. Graydon) I promised to give the house a copy of a communication received from the Aluminum Company of Canada, Limited, with reference to a reduction in the price of aluminum ingot affecting deliveries under the contract with the Metal Reserve Corporation of the United States, and deliveries under the contract with the government of the United Kingdom.
I now produce a copy of a telegram received under date of November 1, 1943, from Mr. R. E. Powell, president of the Aluminum Company of Canada, Limited, in which advice is given of these reductions; also copy of a letter received in reply to that telegram, and a letter received under date of January 15, 1944, from Mr. P. S. White, assistant to the president of the Aluminum Company of Canada, Limited, in which advice is given that amendments of the contract price in the contract with the government of the United Kingdom will also apply to the contract with the government of the Commonwealth of Australia.
These reductions were made possible by the fact that the main construction programme is finally complete, and the company is now in a position to operate at maximum capacity.
(Telegram and letters follow):
Montreal, Que., Nov. 1. 1943
Hon. C. D. Howe,
Minister of Munitions and Supply,
Parliament Buildings, Ottawa.
Effective to-day all shipments crude aluminum to Metals Reserve Company will be billed at fifteen cents per pound U.S. currency instead of eighty per cent at fifteen cents and twenty per cent at seventeen cents. Also effective to-day all shipments of crude aluminum to the United Kingdom will be billed at fifteen and one-half cents Canadian currency instead of sixteen cents. Foregoing refers to base prices.
R. E. Powell.
November 2, 1943
Dear Mr. Powell,
I have your wire of November 1 as follows: "Effective to-day all shipments crude aluminum to Metals Reserve Company will be billed at fifteen cents per pound U.S. currency instead of eighty per cent at fifteen cents and twenty per cent at seventeen cents. Also effective to-day all shipments of crude aluminum to the United Kingdom will be billed at fifteen and one-half cents Canadian currency instead of sixteen cents. Foregoing refers to base prices."

Social Security
Although your wire does not mention a reduction in price to Australia I assume that metal to Australia will be billed at fifteen and one-half cents, Canadian currency, also. Please advise me about this.
This voluntary reduction in base price on British and (I hope) Australian contracts is greatly appreciated by myself as agent for these two governments. I am cabling the British government to-day, and I am sure that the news will be well received.
Please permit me to express the appreciation of the Canadian government for the spirit with which transactions in which we are interested have been carried out on the part of your company.
Yours sincerely,
C. D. Howe.
R. E. Powell, Esq.,
President,
Aluminum Company of Canada, Limited, Montreal, Que.
Aluminum Company of Canada, Limited 1700 Sun Life Building, Montreal,
15th January, 1944.
Hon. C. D. Howe,
Minister of Munitions and Supply,
Department of Munitions and Supply,
No. 1 Building,
Ottawa, Canada.
Dear Mr. Howe:-
In our letter of 3rd November 1943 we advised you that, as soon as some administrative details were settled, we would give effect to the reductions in base price in our metal contract with Australia corresponding to the reductions given to the United Kingdom.
We can now advise you that an amendment to our contract with the government of the Commonwealth of Australia, dated 24th July 1941, is being submitted to your department. The amendment extends to the Australians the price reductions given to the British in 1943, that is, the Australian base price will be 17 cents Canadian per pound from 1st January to 31st October 1943 and 16i cents Canadian per pound from 1st November 1943 until 31st December 1944 or until the 183rd day after the cessation of hostilities between Australia and Germany, whichever shall be the later.
Yours very truly,
Aluminum Company of Canada, Ltd. Paul S. White, Assistant to the President.

Topic:   ALUMINUM
Subtopic:   REDUCTION OF PRICE BY ALUMINUM COMPANY OF CANADA
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