Continued from page 1

COLUMBIA

Federal “tight money” poli-
cy and Ottawa’s reluctance to
aid B.C. financially in devel-
oping the rich resources of this
province were to have been
major Socred campaign issues
in the coming federal election,
with Bennett and Bonner
stumping the country as part
of the Social Credit “on to
Ottawa” drive.

Now Ottawa’s sharing of the
costs of the Stewart-Cassiar
road and its offer of vast fed-
eral capital for Columbia pow-
er development have knocked
the Bennett-Bonner plans into
a cocked hat.

A peevish premier reacted
characteristically when Sin-
clair made the dramatic offer
on behalf of the federal gov-
ernment.

“Any questions of import-
ance I prefer to discuss with
Prime Minister St. Laurent or
responsible cabinet ministers,”
snapped Bennett. “Certainly
I will not discuss it with trav-
elling politicians. Mr. Sinclair
should be back in Ottawa doing
the people’s business, not out
here on an election campaign.”

Sinclair’s statement of
course, had political connota-
tions. Coming at this time it
had political value for the Lib-
eral party, and will no doubt
be one of the government's
chief talking points in the el-
ection campaign. The offer not
only struck a body blow at the
Socreds; it also knocked the
props from under the Conser-
vative platform of a “national
policy” for resources develop-
ment.

Ottawa is currently engaged
in such national development
as the Trans-Canada Highway,
the St. Lawrence Seaway, the
Strait of Canso causeway, the
Stewart-Cassiar road, an at-
omic power station in Ontario
and the Trans-Canada Pipe-
line.

Premier Bennett’s cry of “el-
ectioneering” brought a swift
reply from Resources Minister
Jean Lesage in Ottawa.

“This is a statement of gov-
ernment policy,” he said: “It
would be in the consumers’ in-
terest to have a large contri-
bution of low-interest federal
money.” He added that Otta-
wa will put “no limits’, on Sin-
clair’s statement, meaning that
the federal government is will
ing to advance most of the
necessary capital to harness
the Columbia.

Economists estimate that
federally-financed power
would be some 30 percent
cheaper than private power
and about 15 percent cheaper
than provincial power.

In contrast to the seething
anger of Bennett and Bonner
officials of B.C. Power Cor-

poration issued enthusiastic
statements.
“The commission stands

ready to carry out the construc-
tion of all hydro-electric de-
velopments on the Upper Col-
umbia and elsewhere, as in-

. Lawrence Seaway

structed by the provincial gov-
ernment,” said. BCPC chair-
man T. H. Crosby. “It has al-
ways considered this method
of development to be in the
best interests of the people of
the province.”

C. W. Nash, the commission
director of load development,
who has long advocated the
public development of Mica
Creek, said:

“IT am extremely interested
in Mr. Sinclair’s announce-
ment since the key to low
cost power is the price of
money. The federal govern-
ment’s offer suggests. that a
source of money is to be made
available under the most fa-
vorable conditions. Low cost
power is an important factor
in diversifying the economy of
all areas of the province.”

From B.C. Electric officials,
closely tied in with Bennett
ahd the, Socred government,
came not a peep.

CCF leader Robert, Strachan
said his party would urge the
provincial government to ac-
cept Ottawa’s offer.

“Now that all financial ob-
stacles have been removed
from the path of public pow-
er development in this prov-
ince, I am hopeful the premier
will indicate his willingness to
proceed immediately with the
initial planning stages,” said
Strachan.

“With the anouncement,
coupled with the $6 millions
grant to the Stewart-Cassiar
road, and the offer of assist-
ance to construction of the
PGE, plus the 90 percent con-
tributions to the Trans-Canada
Highway, Premier Bennett has
now received everything from
Ottawa that he asked for in
his 1953 brief.”

Vancouver’s civic officials
expressed approval of the plan.
Ald. Halford Wilson, father of
a city brief to Victoria press-
ing for assurance that Lower
Mainland power needs will
be met before any power is
exported, said the Sinclair pro-
posal “will go a long way to

guaranteeing our  require-
ments.”
Vancouver LPF - secretary

Maurice Rush welcomed the
proposition and urged city
council “‘to ask Victoria to im-
mediately enter into negotia-
tions with federal authorities
to work through all details and
to reach early agreement for
the plan to proceed.”

Nigel Morgan, LPP provin-
cial leader, called for quick
action by Victoria to seal a
deal with Ottawa. In a letter
to Premier Bennett, sent on
behalf of the LPP’s provincial
executive; Morgan said:

“This means to B.C. and Al-
berta just as much as the St.
means to
Ontario and Quebec. It must
not be allowed to become a
political football. It must be
removed from the realm of a
federal campaign promise and
transformed into reality

through immediate negotiation
of a firm agreement.

“Tt must also be linked up
with a very necessary expan-
sion of the market for goods

this massive project would
make possible — trade with

China, about which the federal
Liberals talk but do little. The
two go hand in hand.

“The Sinclair proposal is a
matter of utmost importance.
It opens up the possibility of
an immediate start on this
gigantic project. It would
guarantee Canadian develop-
ment, assure the power needs
of B.C. and Alberta for a
decade at least without inter-
fering with the valuable Fraser
River salmon runs. It would
provide power at the lowest
possible rates, and be the mak-
ings of the B.C. Power Com-
mission,

“It is precisely five years
since the LPP first advanced
this proposal in a CBC network
broadcast. Since then it has
earned wide public support.
The Ottawa offer coincides
with demands of the CCF,
trade union, ratepayer and

many community  organiza-
tions.”
Although no ‘figures were

mentioned by Sinclair, the fed-
eral offer by its nature seems
to amount to some hundreds of
millions of dollars. The Mica
Dam would cost nearly $200
millions and two generators
would up the cost: another
$50 million.

In the legislature earlier this month, Premier W. A. C.
Bennett declared that his government’s deal with the U.S.
Kaiser interests for development of Columbia River water
resources was still alive — the government still held the $125,000
bond posted by Kaiser Aluminum in 1954. If the Kaiser deal,
stunned when the federal government enacted Bill Three in
1955, was still alive, it was finished off this weék by' the federal
government’s offer to finance a public power project on the
Columbia. These pictures show (top) drilling on the Lower
Arrow Lakes conducted by Kaiser Aluminum for its proposed
$25 million low storage dam and (bottom) map of the proposed
diversion of Columbia waters into the Fraser River which is
bitterly opposed by the fishing industry.

MARCH 29, 1957 — PACIFIC TRIBUNE—PAGE 12