March 10, 1948 (20th Parliament, 4th Session)

LIB

Mr. MAYHEW: (Parliamentary Assistant to the Minister of Finance)

Liberal

1. It is impossible at this time to determine the United States dollar content in the products exported from Canada by way of mutual aid, gifts, or loans to the U.K. and European countries during the last few years.
2. It is not entirely clear what is meant by the query as to the amount of U.S. dollars recovered from these exports. It is true, however, that very substantial iamounts of gold and U.S. dollars have been received from the countries referred to during the period mentioned.
In the case of the United Kingdom, total receipts of gold and U.S. dollars for the years 1942 to 1947 were as follows:
Equivalent in
Canadian
dollars
Year (millions)
1942 23
1943 143
1944 55
1945 33
1946 150
1947 505
All countries to which we have granted rredits under the Export Credits Insurance Act are, with one exception, required to pay for a portion of their purchases in Canada by the use of gold or U.S. dollars. Particulars are included in the various annual reports made to parliament under Part II of the act.
Receipts of U.S. dollars and convertible exchange from the European countries to which we have extended such export credits are estimated as follows:
Equivalent in Canadian dollars
Year (millions)
1945 70-4
1946 44-2
1-947 (Preliminary) 86-5-
3. No assistance by way of mutual aid, gift, or loan can be given to any country except under authority of parliament. There is now no legislation authorizing the granting of aid
to any country in respect of relief other than the appropriation of $20 million for post-UNRRA relief, and the appropriations for the Canadian contribution to certain United Nations organizations.
Of the loan to Britain, there remains available to be drawn only $246-5 million and, as has already been announced, present arrangements provide for using this credit in the amount of $45 million during 1948, this amount to be drawn during the first quarter.
In respect of the export credits to the other European countries, there remains unused $103 million. In the case of several borrowing countries which have substantial amounts of credit still available, arrangements were made during the latter part of 1947 that at least as much of their purchases in Canada would be paid for in gold or U.S. dollars as would be purchased out of the credits. Some commodities or classes of commodities.will only be sold for export for U.S. dollars or their equivalent.

Topic:   QUESTIONS
Subtopic:   FOREIGN EXCHANGE-U.S. DOLLAR CONTENT IN EXPORTS AS MUTUAL AID, ETC.
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