The Dominion. TUESDAY, JULY 4, 1944. CANADA’S GREAT PART

Dominion, Volume 37, Issue 237, 4 July 1944, Page 4

The Dominion. TUESDAY, JULY 4, 1944. CANADA’S GREAT PART

Canada Day was appropriately marked here by the official announcement of the signing at Ottawa of a mutual aid agreement, and it was fitting that the Prime Minister of New Zealand, who happened to be in the Canadian capital, and the Minister who is temporarily at the head of the Administration here, should pay a tribute to this very generous plan devised by a sister Dominion. It is, in many respects, the most definite and generous of all such agreements, and was adopted, it was said, because of a determination that “Canada should share her production of essential war supplies with the other United Nations on the basis of strategic needs.” When he introduced the enabling legislation in the Canadian blouse of Commons the Minister of Finance, Mr. J. L. Ilsley, said: “We want Australia, New' Zealand and other parts of the British Commonwealth to be able to get from Canada all that we can provide for them of the things they require from us in carrying out their part of the United Nations effort.” ' Following to some extent the policy laid down in the AngloAmerican lend-lease agreement, the Canadians stated that they wanted this aid to be made available in such a manner that it would not be “a burden to post-war commerce or lead to the imposition of trade restrictions, or otherwise prejudice a just and enduring peace.” To that end practically only one major condition was imposed, namely: “It shall be good and sufficient consideration for transferring war supplies to other United Nations that such supplies are to be used in joint and effective prosecution of the war.” And the most liberal interpretation was placed on the term “war supplies” which was held to cover raw materials and foodstuffs which “are just as essential to a nation at war as arms themselves.”

The Canadian Minister of Finance, speaking in Parliament, said that “no financial impediment should be allowed to interfere with this sensible sharing.” Pie added that in some cases it might be possible for the nations that had obtained aid to provide Canada with some other form of post-war benefit, “but we don’t want to make the sharing of our war supplies dependent upon the ability of those who use them to pay for them.” To the extent that funds are available for essential purchases they will be used, but requirements over and above that limit will be dealt with under this agreement. The Canadjans regard this as a part of their war effort and have adopted it in order to obviate the danger of huge war debts between nations which, they realize, could not be liquidated without destroying trade, and whose existence might easily undermine international goodwill. This truly generous attitude has been made possible by the wonderful industrial development of Canada in recent years. The foreign trade, as they term what we call export, or overseas trade, last year totalled 5000 million dollars, and that, on a per head basis, is said to be unsurpassed by any other country. Canada made Great Britain a gift of goods to the value of 1000 million dollars, and a further 700,000,000 dollars, built up in trade credits, was lent to the British authorities free of interest. The big Dominion has purchased from Britain its interests in Canadian war plants, estimated at 200,000,000 dollars, and has redeemed substantial loans overseas. Today 97 per cent, of' Canada’s indebtedness is held in Canada. This is an impressive record and places Canada in the front row of the world’s industrial nations.

There have been both generosity of action and breadth of outlook in Canadian policy, which have added greatly to the prestige of the country. It is obvious that New Zealand will benefit materially under the agreement. For many years this country has offered a large market for Canadian manufactures’ in one form or another, and the balance of trade has been heavily in favour of the sister Dominion. The war has made it difficult to arrange finance, and the Canadian Minister referred to this aspect when he introduced the Mutual Aid Bill. He explained that Australia and New Zealand had purchased from Britain the Canadian dollars they required, and added: “We think it would’be more satisfactory from the point of view of al! concerned if they were able to make more direct arrangements with us.” That will now be possible and it may mean a very great deal. But whatever the outcome the people of New Zealand will certainly appreciate to the full this splendid action on the part of Canada and even more the spirit of unity, of kinship, which has animated it.