Ottawa, March 1949
Several authorities inherited from the war and its immediate aftermath were approaching expiry, requiring Parliament to decide which exceptional powers should be continued and for how long. Foreign-exchange restrictions, transitional controls and agricultural marketing arrangements occupied much of the House of Commons during March, while legislation concerning public corporations, national parks and other matters advanced alongside them.
Beyond these domestic questions, the proposed North Atlantic Treaty was placed before Parliament. Its consideration would produce an unusual degree of agreement among the principal parties, notwithstanding their differences over the Government's domestic policies.
14–18 March — The Legislative Programme
On 14 March, the Minister of Agriculture, Mr. Gardiner, introduced a bill respecting the marketing of agricultural products in interprovincial and export trade.
The proposed legislation was distinct from the Government's request to continue the existing Agricultural Products Act for another year. It received its first reading and remained before the House for subsequent consideration.
The same sitting brought first readings for Senate measures concerning the National Parks Act and the Dominion Atlantic Railway Company. Both entered the Commons legislative programme without completing their parliamentary passage.
On 17 March, the Prime Minister secured arrangements for morning sittings beginning at eleven o'clock while the House disposed of measures concerning foreign exchange, transitional controls, agricultural products and the Canadian Commercial Corporation. Provision was also made for Saturday sittings should they prove necessary.
The Government sought to complete these measures before the existing authorities expired, while Opposition members questioned both their necessity and the powers they would continue to confer upon ministers.
On 18 March, Mr. St. Laurent laid before the House the proposed North Atlantic Treaty, in English and French, in anticipation of the conference at Washington early in April.
17–23 March — Foreign Exchange and Transitional Powers
The proposed continuation of the Foreign Exchange Control Act brought the Government's monetary policy under sustained examination.
Mr. Abbott recalled the sharp depletion of Canada's gold and United States dollar reserves in 1947. Their subsequent recovery was welcome, but the Government did not consider that the underlying difficulties of international payments had disappeared. European recovery remained incomplete, and the shortage of convertible currencies continued to affect markets for Canadian production.
Mr. Macdonnell, speaking for the Progressive Conservatives, challenged the Government's course. He urged that the Canadian dollar be permitted to seek a more realistic economic level within the limits of the Bretton Woods arrangements. Rather than continue the existing legislation into 1951, he sought a shorter extension and representations to the International Monetary Fund directed toward adjustment of currencies and the eventual removal of exchange restrictions.
His proposed amendments encountered procedural objections. The first was ruled inappropriate to the preliminary motion; a further version offered at second reading was likewise ruled out of order.
Macdonnell nevertheless maintained that Canada's dependence upon exports made the restoration of workable international exchange particularly urgent. Continued restrictions, he argued, could not provide a permanent answer to the difficulties of international trade.
The CCF approached the question differently. Mr. Coldwell supported continued control, arguing that the condition of world trade offered little prospect of an immediate return to full currency convertibility. His support did not signify general satisfaction with the Government's economic policy, but reflected his judgment that the restrictions remained necessary.
The Continuation of Transitional Measures Act produced a separate dispute concerning the powers exercised by ministers and officials.
Mr. Garson defended the retention of those controls which the Government considered necessary during the transition from wartime conditions. Rent regulation, shortages and the administration of essential supplies figured prominently in the discussion.
Mr. Fleming opposed the method by which these powers were being continued. Parliament, he maintained, ought to consider specific measures for specific purposes rather than renew a collection of extraordinary authorities together. Necessary protection for tenants could be provided through ordinary legislation without continuing the broader emergency framework.
On 22 March, the Speaker ruled out of order Fleming's amendment seeking reference of the bill to the Banking and Commerce Committee with instructions concerning separate measures. Mr. Drew appealed the ruling, but the Speaker was sustained.
The House then completed second reading and consideration in Committee of the Whole. The bill was reported without amendment and passed its third reading that evening. The CCF supported continuation while maintaining its criticisms of the Government's administration of prices and living costs.
On 23 March, the House completed third reading of the foreign-exchange bill. The Progressive Conservatives maintained their opposition, while Government and CCF members supported its passage.
The measure continued the existing Foreign Exchange Control Act until sixty days after the commencement of the first parliamentary session beginning in 1951. It did not itself alter the exchange value of the Canadian dollar.
23–25 March — Agriculture, Commerce and Other Legislation
Alongside the emergency continuations, the House advanced several measures concerning the ordinary administration of government.
Mr. Howe explained that the Canadian Commercial Corporation required a continuing basis for its operations, authority to obtain working funds and arrangements for recovering expenses incurred when its services were employed by government departments and agencies.
Members questioned the Minister about the Corporation's accounts, purchasing activities and the funds required for its operations.
The resulting amendment authorized loans from the Consolidated Revenue Fund, with no more than $10 million outstanding at any time. It permitted the retention of business receipts, subject to repayment of those loans, and provided for the recovery of transaction costs and proportionate operating expenses. The Commons completed its remaining stages on 24 March.
The National Parks amendment concerned several smaller matters.
At Banff National Park, the proposed boundary adjustment related to the Spray Lakes storage and power undertaking. Mr. MacKinnon described arrangements with Alberta intended to preserve river flows necessary for scenic purposes, firefighting, essential services and the protection of fish.
At Elk Island National Park, a narrow strip was to be withdrawn for the widening of a provincial highway. The measure also changed the name of New Brunswick National Park to Fundy National Park, following a recommendation from the provincial Government and a competition among schoolchildren.
The bill completed its Commons stages without amendment on 23 March.
Mr. Bertrand's rural-mail legislation addressed the rising cost of maintaining mail services under existing contracts. Supplemental payments had been granted to contractors whose original agreements no longer adequately covered their expenses. The Postmaster General sought authority to incorporate these supplements into the prices of renewed contracts rather than continue them as temporary additions.
The House passed the measure on 24 March.
Agricultural legislation produced a more searching controversy.
Mr. Gardiner sought another year's operation of the Agricultural Products Act amid uncertainty over overseas markets, Britain's shortage of dollars and the future disposal of Canadian farm production.
The Progressive Conservatives questioned the Government's marketing record and the constitutional justification for continuing exceptional authority.
Mr. Hackett maintained that the desirability of assisting producers or supplying food abroad did not, by itself, establish the existence of a national emergency. Mr. Diefenbaker pressed the Minister concerning the prospects for Canadian agricultural exports, while Mr. Fleming returned to the responsibilities of Parliament and the provinces.
Mr. Wright, for the CCF, supported continuation but considered the protection offered to producers insufficient. Farm expenses had risen, while falling product prices threatened to leave producers exposed. Existing arrangements, he argued, did not provide adequate certainty concerning the prices upon which farmers could depend.
On 25 March, Mr. Gardiner tabled agreements signed the previous day for British purchases of Canadian eggs, cheese and bacon.
The House then completed the continuation bill's second reading, committee consideration and third reading. The operation of the Agricultural Products Act would be extended to 31 March 1950. The separate agricultural-products marketing bill remained unfinished.
25 March — Royal Assent and Other Measures
The first Royal Assent ceremony of the month took place on 25 March.
Chief Justice Thibaudeau Rinfret, acting as Deputy Governor General, gave Royal Assent to the continuation of foreign-exchange control, the extension of transitional measures, the Canadian Commercial Corporation amendment and the National Parks amendment.
The Commons also disposed of four smaller Senate-originating bills.
Mr. Chevrier secured the appointment of George A. Touche and Company as independent auditors of Canadian National Railways for 1949. Mr. Church questioned whether the Auditor General might undertake the work instead. The Minister defended the need for continuous specialist auditing of the railway's extensive operations and subsidiaries, including those in the United States.
An amendment to the Cheese and Cheese Factory Improvement Act authorized premiums for high-quality cheese: one cent per pound for cheese scoring ninety-three points, and two cents for cheese scoring ninety-four or more. Payments would pass through factories for distribution among producers under regulations.
The Game Export amendment clarified the officers responsible for enforcement, removing obsolete references to a separate class of specially appointed federal officers. Mr. MacKinnon explained that enforcement already rested upon provincial game officers, police, the Royal Canadian Mounted Police and customs officers.
Finally, the House repealed the Cullers Act. Mr. McIlraith explained that the statute still required certain timber exports to be measured and culled by a Dominion culler, although the last such officer had retired in 1921. The repeal removed an obligation which exporters could no longer fulfil.
With the urgent legislative programme sufficiently advanced, the contemplated Saturday sitting was dispensed with. Mr. Coldwell pressed for the restoration of opportunities for private members following Monday's consideration of the Atlantic Treaty.
28 March — Canada and the North Atlantic Treaty
The House returned on Monday to a question upon which the principal parties found themselves in substantial agreement.
Mr. St. Laurent moved a resolution reaffirming Canada's support for the United Nations and recognizing the importance of collective defence within the Charter. It approved Canadian representation at Washington to assist in completing an acceptable treaty based upon the draft already tabled.
The resolution further provided that the completed agreement should return to both Houses of Parliament for approval before ratification.
The Prime Minister placed the proposal within the difficulties which had prevented the United Nations from providing the security hoped for at San Francisco.
The free nations, he argued, could not disregard the danger of aggression while waiting for universal agreement. By making their determination to resist an attack clear in advance, they sought to prevent the circumstances in which another war might begin.
Mr. Drew gave the proposed course emphatic support.
The treaty, he maintained, must demonstrate that aggression would encounter a united and determined response. Canada's representatives should proceed to Washington with unmistakable evidence of parliamentary backing.
His condemnation of Soviet expansion was accompanied by a distinction between the conduct of the Soviet regime and the Russian people themselves.
Mr. Coldwell likewise supported Canadian participation, but gave particular attention to the conditions upon which lasting security depended.
Regional defence was, in his view, a second-best answer to the failure to establish effective universal security. Necessary rearmament must not frustrate European recovery or consume the resources required to improve the lives of ordinary people.
For the CCF, Article 2, concerning peaceful relations and economic cooperation, was therefore of substantial importance. Military preparations could guard the peace, but the removal of poverty and insecurity was indispensable to sustaining it.
Coldwell also reaffirmed the responsibility of national parliaments in determining the action their countries would take.
Mr. Low welcomed the Government's decision to consult Parliament before signature.
Social Credit supported a defensive association against aggression, while insisting that military arrangements alone could not provide the strength required. Economic conditions, public confidence and the cultural and moral purposes of the participating nations also mattered.
Low sought clearer assurances concerning the economic obligations contemplated by the draft, particularly whether Article 8 might indirectly recommit Canada to existing monetary arrangements. Support for the proposed pact, he maintained, did not relieve Parliament of the duty to understand its commitments.
Other members examined the consequences from differing standpoints.
Mr. Bradette emphasized the significance of agreement among the four principal party leaders. Mr. Dorion raised questions concerning parliamentary control over the country's participation in war, illustrating that support for collective security did not remove every constitutional concern.
Mr. Pearson addressed these questions in an examination of the treaty's provisions.
Article 2 concerned the strengthening of free institutions and the promotion of stability and economic cooperation.
Article 5 imposed a serious obligation to assist a member subjected to armed attack, but left each participating country to determine the action it considered necessary. Canada would not automatically be at war merely because an ally had been attacked.
The External Affairs Minister also rejected the suggestion that Article 8 incorporated other agreements into the Atlantic Treaty or gave them additional sanction.
Pearson reiterated that the Government would not deposit Canada's ratification until Parliament had enjoyed a further opportunity to consider and approve the completed agreement.
The Commons agreed to continue beyond its ordinary hour of adjournment.
The resolution was carried with broad support across the Liberal, Progressive Conservative, CCF and Social Credit benches.
Canada's delegation could therefore proceed to Washington with parliamentary approval to participate in the final negotiations. The completed treaty itself remained subject to further parliamentary consideration.
29–31 March — Remaining Legislation and the Senate's Atlantic Resolution
The remaining days of March saw several administrative measures complete their parliamentary passage.
At the Royal Assent ceremony on 30 March, the Deputy Governor General assented to the continuation of the Agricultural Products Act, the rural-mail contract amendment, the appointment of Canadian National Railways auditors, the cheese-premium legislation, the Game Export amendment and the repeal of the Cullers Act.
Private-bill proceedings also continued. Measures concerning the Globe Printing Company, Chartered Trust and Executor Company, Canadian Home Assurance Company and Ottawa transit were referred to committees. None had completed parliamentary passage by the end of March.
Other public legislation remained unfinished.
Debate upon the Exchequer Court amendment had begun but was adjourned. The proposed national trade-mark legislation and the new agricultural-products marketing bill awaited further consideration. A Senate measure concerning pure-bred livestock record associations reached the Commons at the month's close.
On 31 March, the Senate adopted the corresponding resolution concerning the proposed North Atlantic Treaty, joining the Commons in approving Canadian participation in the Washington negotiations while reserving consideration of the completed agreement.
Parliament thus closed March having continued the principal expiring authorities, completed a series of administrative and commercial measures, and given its approval to Canadian participation in the final negotiations for the Atlantic Treaty.
The unfinished domestic legislation remained upon the parliamentary order paper. At Washington, the representatives of Canada and the other participating nations would now turn to the final settlement of the treaty's terms.