hen Washington received the strong
est note from Mr. Eric Kearns, form-
minister of health in Quebec, they
ared that had Mr. Kearns’ been fully
jermed about the “friendly talks”
Wich had taken place with Ottawa prior
e adoption of the “guidelines” then
@ would not have taken the position
ressed in the note.
ut St. James, Bay St. and the gen-
nen in Ottawa failed to take into
yeount the developments and the
ges which are occuring in the land.
s they overlooked the changed poli-
situation, the party relationships
d their resulting consequences; min-
Mty government at the federal level,
new role of French Canada with
awaking national feelings of the
Asses and the growing national feel-
of certain sections of the bourgeoi-
in Quebec and throughout the coun-

Ottawa closed its eyes to the growing
[acer in the national economy. Thus
gspite the increased export, good times
d increase in production, there is a
»wing deficit in the balance of pay-
‘nts which stems from increased im-
s from the United States. Likewise,
pretend that they cannot see the
eased rape of our resources and the
ying up of Canadian companies from
ch are derived huge profits and divi-
nds which are then used for invest-
nt in other countries.

These were the events which moved
ic Kearns to take the strong position
vich he took and in which he demand-
that Washington cease and desist

he he accused Ottawa of “selling out
\nada to the United States.”

Nor is Mr. Kearns alone. Speaking in
> Ontario Legislature on February
hh, 1966, Mr. Thompson, Ontario Jead-
of the Liberal party stated that “a
ret report is in the hands of the
vernment dealing with the policies of
\nadian firms controlled from the Unit-
States.” This report says Thompson,
tablished the fact that ‘300 million
Hiars in U.S. funds were pumped out
Ontario for their foreign operations

s exerts immediate pressure on the
nd market increasing the interest
es payments.”

the caption over a series of articles

m domination of Canada. At the same-

id that the pumping of such huge -

“When Shall We Become Americans?!”

written. by. Bruce Hutchison, editorial
director of the Vancouver Sun. He
writes as follows: “We are in a period
of widespread prosperity, and our stan-
dard of living is rising. It would be very
good indeed if this could last forever.
Such conditions create the impression
that there are no serious problems. In
times like these decisive facts become .
blurred and political debate becomes
confused.

“It should be made clear to all Cana-
dians that the fundamental problem has
not been solved and this means that our
growth is not being wisely administered.
It is being conducted in such a fashion
as to jeopardize our political independ-
ence. A country which bases its whole
economy on the assumption that the
United States will continue to finance
it without limit is confronted by two
dangers: the entire economy will come
under the ownership of foreigners or it

will become economically dependent up-

on the States. Total economic depend-

,

ence on the United States must lead to
political dependence.

“We have had some bitter experience
in recent years. In 1962, it took a rela-
tively small withdrawal of American
funds to force our government to devalu-
ate the Canadian dollar and to search
for and get foreign loans in order to
avoid bankruptcy. In 1963, a marginal
change in the American taxation system
again threatened us with bankruptcy
and it took a dramatic discussion with
Washington to save us from catastrophe

. more distressing still is the experi-
ence that in a lengthy period of time
there has been no attempt either by the
Conservative or Liberal’ governments to
develop a course of action which would
create a situation of security for our
country.” ‘

A rather meagre attempt to change
this situation led to the resignation of
Walter Gordon. During his term of of-
fice as Minister of Finance, he endeav-
ored to some extent to tame the appe-
tite of Washington and to make it a
little more difficult for the Americans to
buy up Canadian firms. He attempted
also to place some restrictions on im-
ports from the. United States. These
actions made Washington and its cohorts
in Canada furious. They did not rest
until they rid themselves of Walter Gor-
con.

A not-so-fancijul

fairy tale
By SID SARKIN

The reverberations of the American
guidelines and the open intervention of
the United States in the economic life
of our country created serious rum-
blings in Ottawa. The Pearson Govern-
ment found itself in a bind. The new
Minister of Finance, Mitchell Sharp, and
the Minister of Trade, Robert Winters,
both of whom are favored by Washing-
ton and Canadian monopolies, were
called upon to re-orient themselves. It
was their task to distort facts and con-
fuse minds.

As though inspired, they put forth
their own guidelines for Canadian and
American-controlled firms. Both Sharp
and Winters admitted that the problem

-of foreign capital was indeed serious,

but they cushioned this by saying that

- it was not dangerous. They insist that

without foreign investments and capi-
tal, Canada could not possibly~have at-
tained her present industrial level and
standard of living. They insist that the
limiting of foreign investment would
mean a decreased standard of living and
lower earnings. This, they say, would be
unacceptable to Canadians, Instead, they
assure us that their guidelines will set
us on a course of continuous develop-
ment.

This is to be done by:

e increasing the amount of Canadian
capital investment in the development of
industry in our country, without dis-
criminating against foreign investment

@ assuring that banks, insurance and
trust companies, railroads, airplanes,
radio, television and newspapers shall
henceforth be totally Canadian, and

e asking that large industrial enter-
prices controlled by foreigners provide
certain data and information, which
would remain-confidential to the govern-
ment.

Mr. Winters declared that these guide-
lines were distributed to all foreign
firms, explaining the way in which they
ought to operate their business in Can-
ada. These guidelines consist of 12 prin-
Iciples, among which are to be found
the following:

e periodic information about certain
aspects of operation and _ financing
should be provided and these would be
kept confidential

e the practice of promoting Cana-
dians to management positions should
be undertaken

e the inclusion of a significant pro-
portion of Canadian citizens in the
Board of Directors of these companies
should become a matter of policy.

e Export opportunities ought to be
developed to a maximum.

e Greater opportunities for the pro-
cessing of finished products in their
Canadian factories should be undertak-
en.

e A suitable share of the profits for
possible expansion of Canadian plants
should be set aside after a fair share
of profits to the shareholders had been
providet.-

Ottawa’s guidelines are meant to con-
fuse and blur the main issues. The
Sharp- Winters guidelines constitute
nothing more than a request for “infor-
mation” and “recommendations.” They
are based on the goodwill and gentle-
manly whim of the U.S. owners. What
is required is legislation under the Com-
panies Act of Canada. This alone can
put teeth into that which is so neces-
sary. Laws alone can make demands
arid hold companies accountable. Indica-
tive of the business of the present guide-
lines is the fact that the reference to
banks, insurance and trust companies,
radio, television, press etc. does not
apply to the already existing firms in
these varied fields. It is applicable only
in the case of new ‘firms which may
come into being. Small wonder that
Washington is unconcerned and even
gives its blessing.

Comment from Washington goes as
follows. “We have no objections to
Canadian legislation which is not based
on discrimination. The recommendations
referring to banks, insurance and trust
companies, radio, television etc.—being
clearly Canadian—is justified, provided
it will not apply to already existing for-
eign firms and owners in these fields.
If, however, this will be accompanied by
legislation which will distinguish be-
tween the separate operational possibili-
ties for Canadians as compared to U.S.
companies then this would constitute
discrimination.”

In a word, our resources are increas-
ingly being swallowed by the USA and
while this is going on there is rejoicing
in Ottawa. Indeed, Nero fiddles while
Rome burns.

On the threshhold of the 100 anniver-
- sary of Confederation during which time
the people of this land should be cele-
brating the beaverish activity and accom-
plishment of the ordinary people the
festivities will be marred. Both our ac-
complishments and our independence
are in jeopardy. The pressing question
ajter one hundred years of toil is: who
shall own the resources of our land?
Shall it be the 20 million beavers or
shall it be the foreign eagle?

The beaver is known as a good en-
gineer and undaunted industrious work-
er. He is able to give a clear and un-
equivocal answer both to the Amer.can
eagle and his Canadian partners of Bay
and St. James Streets.

The 20 million beavers are in a posi-
tion to build a bridge linking all strata
of the population—workers, profession-
als, intellectuals and even segments of
the bourgeoisie. The workers can and
should place themselves in the forefront
of this bridge-building project because
they are the heirs of the pioneer builders
of our land who 100 years ago procla*m-
ed the slogan we shall be neither hewers
of wood nor drawers of water for any
foreign power.