ber 5.

merican
colony!

by Tim BUCK

ISLEADING reports from Ottawa and superficial commentary in the capitalist

M press upon Canada’s
to, the real significance of

The reasons which impelled the D

“YS. dollar crisis” have blinded the majority of people

the emergency session of parliament called for Decem-
ominion government to call a special session

are not to be found in the reported desire of Premier King to reduce the burden of legis-

tive work on the members
during the regular session. Nel-
ther is the reason to be found
in the several trade agreements
which represent about all that
Canada salvaged out of the
Wreckage of the multilateral
trade system at the Geneva con-
ference on
The real reasons for calling the
€iergency session are the rca-
Scns ‘why the Geneva confe:-
€nce bugged down.

‘The international trade con-
ference at Geneva dragged oa
for six months, It failed be-
Cause, as the Financial Post
admits, “the multilateral trade
System has broken down, it will
Not be reestablished for some
Years," But the breakdown of
the: multilateral trade system
“Upon which Canada’s foreign
trade has hitherto depended is
Put the surface expression of
the breakdown of the economic
relationships between capitalis*

orth America and the coun-
tries of Europe whose govern-

Ments are trying to maintain
“apitalist economy.

In skort, the crisis of mvuiti-
ateral

S478 growing realization chat
“apitalist economy has broken
down in the countries of Wes-
tern Europe as well as in the
Central and Wastern part of that
Continent. If there were confi-
dence in the future prospec:s of
 “8pitalism in France and the
Rited Kingdom, there would bé
RO d lar crisis and there would

No breakdown of the multi-
lateral trade system.

The crumbling of the tradition-
€conomic relationships of
Wes

7h the consequent crisis in caP-
talist relations between Europe
— 88d North America are bound
oa have very far-reaching influ-
ue upon the economy of the
tated *Kingdom and, indeed, of

entire British Common-
‘Wealth and Empire.

This is the reason why it is
oy wrong to suggest, as
® daily capitalist press does

that Canada’s shortage of U.S.

Yollars js a temporary problem
Which

1 Can be overcome by &
°an from the United States or

DAY, NOVEMBER 14, 1947

international trade. |

study the

trade reflects the fact.
that in the United States taere _

tern European capitalism _

some governmental restrictions
upon Canadian spending in the
United States. The enormous pro-
portion of Canada’s exports which
have’ hitherto gone to Britain,
other countries of the British
Empire, or Western Europe, with
the credit for them tradition-
ally used to cover Canadian pur-
chases in the United States —
make it quite clear that Can-
ada is confronted with a chronic
problem which will compel a
drastic revision either of our
domestic economic policies or of
our foreign trade.

It is possible, of course, that
the situation can be met by a
combination of the two changes
mentioned above, but profound
changes there will, have to be,
This is the decisive immediate
reason for the calling of the
emergency session of parliament.

The reason why the King gov-
ernment is not informing the
people. frankly of this is the
very reason why Pacific Tribune
readers and all other democratic
forces in Canadian politics must
issues involved and

ublic opinion to be on
ete aeathie what threatens
to be a serious betrayal of the
real interests of the nation.

Financial Post argues

T quite bluntly that the situa-"

ly new
tion demands an entire

national policy for Canada. Peri-
odicals, the editors of which are

recognized as being on intimate

the members of the
pet ae ee “have already
suggested that the measures a
be introduced by the Dominion
government will compel drastic
changes in Canadian economy,
with the wiping out of indus-
tries and the. necessity for large
numbers of our people to ac-
quire new skills.

The real content of that pros-
pect is masked by government
propaganda which places all the
emphasis upon the idea that the
government js planning vast Dis
jects to develop our natural re-
sources, but which ignore entire-
ly the fact that the tendency is

already to sacrifice Canada’s fin-
ished goods industries and make
our country and our people in-
creasingly dependent upon agri-
culture, the production of raw
materials, and a few highly spe-
cialized industries which can only
operate efficiently here, all op-
erating in accordance with the
needs and aims of United States
industry.

It should be noted that the
propaganda in favor of increas-
ing our economic subordination
to United States industry, yes,
even of adjusting Canadian poli-
cies to the idea of the complete
economic colonization of our
country by United States finance
capital, will miSlead large num-
bers of Canadians and will no
doubt captivate even large sec-
tions of the working people by
its misleading pretense that
what jis aimed at is the further
development of Canada. This will
be achieved by the pretense that
the Dominion government is in-
troducing policies aimed at eco-
nomic union with the United
States. ;

The pretense that Canada is

headed towards economic union’

with the United States is facili-
tated by the fact that Canada
certainly has to choose whether
or not economic ties with Bri-
tain and the Empire trade area
will be maintained or tremend-
ously weakened. This choice is
now unavoidable. ¢

The Whaley-Eaton service, one
of the most authoritative ad-
visers to big business interests,
devoted a special letter on this
question to its clients a month.
ago. The letter opened up with
the blunt ‘statement that the
crisis confronting Canada is

chronic and that the decision

that Canada must make is
‘whether or not to secede from
the British Empire trading unit.

The Whaley-Faton service Is

not alone in emphasizing this.

The Financial Post has been em-
phasizing it for months. The
Financial Post has declared that
if the British government tries
to maintain the imperial pref-
erence system, then Canada will
have to “bow herself out of” her
commitments in the British Em-

pire trading system.

What is most significant in
the special letter issued by the
Whaley-Eaton service is its au-
thorative indication of the con-
ditions which American finance
capital interests hope to impose
upon Canada as a result of this
crisis, admitting that if United
States plans go through, the re-
sult will be a bitter pill for

Canadians to take.,They em-.

phasize that what is envisaged is
such a close integration of Can-
adian economy with the needs
and aims of United States econ-
omy that it would constitute al-
most an economic union but
‘would stop short of reciprocity,

Te snare which will be laid
for the average reader of the
daily press in Canada will be
the idea of virtual economic
union with the United States.
Little, if anything, will be said
zbout its stopping short of reci-
procity,

é

Many workers, knowing that
wages and living standards in
general are higher in the United
States than Canada, will be mis-
led into assuming that what
‘United States and Canadian fi-
nance capital want to put over
is something that will enable
Canadian workers to enjoy the
same wage levels as prevail in
the United States and the other
things that go with them.

The fact is, of course, that
the real aim of these proposals
is to halt the development of
finished goods industries in Can-
ada and try to reverse the di-
rection of Canada’s economic de-
velopment. If they succeed it will
mean a sharp reduction in op-
portunities for employment in.
industry, and because of that a
drastic lessening of opportunities
in trade, commerce, and all the
professions.

The choice before Canadian
business interests is placed al-
most bluntly as the choice be-
tween being an jntegral part of
North American economy, or, if
Canada chooses to continue to
trade with countries of which
the United States government

disapproves, to have to do with-
out any help or cooperation from
the United States,

The finance capitalist interests

who are seeking to put over this

reactionary change in Canada’s
national policies are proposing
that ample funds will be avail-
able to develop the great iron
ore deposits in Labrador for the
use of United States steel indus-
try and for other similar raw
materials developments  any-
where in Canada, provided that
Canada halts all efforts towards
the
what they call “soft currency
countries” (they mean countries
which trade in any currency ex-*
cept United States dollars.)

They sometimes modify this
proposal by agreeing that Can-
ada may continue to export grain |
and other food products. nat
should be noted, however, that
the most authoritative economic
commentators in the United
States emphasize that Washing-
ton will insist that Canada must
desist from efforts to promote
trade in industrial products with
the “soft currency countries” be-
fore any substantial United
States aid will be extended to
Canada.

>

It is clear, therefore, that the
major question which will ocn-
front the members of parliament

when they gather in the emerg- —

ency session will be the ques-
tion, “Whither Canada?”

Are our national peonomic pol-
icles to be modified in the di-

_rection demanded by American

-Canadian finance capitalist in-
terests whose only concern is to
cheapen production in Canada
and make this country a source

of cheap raw materials for Unit-
ed States industry—making Can-
ada completely dependent upon
the United States in the process
-—or should our policies be modi-
fied' in the direction of increas-
ing our industrial self-sufficiency

raising our standard. of life, and oe

winning for Canada a place in
the new pattern of world econ-—
omy which is developing?

@ A second article will ap-

pear in our feature section

next week,

The I.T.U. is not seeking higher’ wages.

Shorter work week is not an issue
A master contract is not asked for.
Dues check-off is not wanted.

We do not seek a welfare fund.
Holidays with pay are not sought.

The only issue is

that the Southam

Company give the same fundamental
treatment to each division.

Vancouver Typographical Union, No. 226

PACIFIC TRIBUNE—PAGE 11

promotion of trade with -

e