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Federal-provincial
Parley torpedoed
by cold war policies

By LESLIE MORRIS

The federal-provincial conference collapsed because
Me St. Laurent government continues to stick to the line
Of the cold war. The cold war is an expensive proposition.
Tt has cost. Canadian taxpayers $8 billion since 1947 —
0ugh money from increased producted for Ottawa to

ey for health insurance, ele-
x €ntary education and a low-
®ntal, state-subsidized housing
Ptogram. .
Canada remains one of the
Most backward countries in the
Western world when it comes
® Social legislation of this
King

in c2tson goes to Moscow, but
domestic policy, the St. Laur-
80vernment insists on its
cf strong central powers
gra Try through the arms pro-
aa and to “negotiate from
to Nsth.” Hence its refusal
oF ne at the basic questions
lati aX reform and social legis-
ali °n. State monopoly capit-
Sm, Lenin called it.

> ie is this refusal to start to

dome ceneva into practice in

be yeae affairs that lies at the

io ™m of the stubborn rejec-

an of federal action to assist

my Bboorer provinces and the
Nicipalities.

8 the LPP letter to the pre-

€ts said (and ory: Premier
ack - Douglas of Saskatchewan
thar oWledged_ it) the things
Dalit: € provinces and munici-
0 4€S are responsible for
Cial welfare and the cost of
Uecation) cannot be paid by

ling
to ca

the provinces or municipalities
unless the following is done:

@® The provincial governments
must be able, if they wish,
to directly tax incomes and
corporation profits and re-
ceive from the central gov-
ernment grants without
strings to enable them to
lift the level of social ser-
vices.

@ Unemployment relief should
be paid by Otttawa.

@ The “old man of the sea”
on the backs of the muni-
cipalities, elementary edu-
cation, should be lifted by
Ottawa paying to the prov-
inces the cost of elementary
education for all children
of school age.

@ The full amount of the in-
come and corporation pro-
fits taxes imposed by the
provinces, if they so wish
to do so, should be deduc-
tible from similar federal

. *ptaxes,

® Special provision should be
made to assist those prov-
inces whose economic de-
velopment (as in the Mari-
times) is below the national
level because of the way
capitalist economy has de-

\ veloped in Canada.

It is a tribute to the irresist-
ible democratic pressure of
these matters that some of the
proposals of the LPP relating
to the method of federal-pro-
vincial taxation and its distri-
bution, were played with by
the St. Laurent government.
They arose at the conference,

Continued on back page
See PARLEY

‘External Affairs Minister Lester B. Pearson speaks into the microphone on his

a3

arrival at Moscow’s Vnukova airport, with Soviet Foreign Minister V. M. Molotov.
(left) and Canadian Ambassador John W atkins looking on.

* anada-Soviet
trade welcomed |

~ Reports from Moscow and Yalta that External Affairs Minister Lester B. Pear-
son has initiated negotiations during his current Soviet tour for a, Canadian-Soviet
trade pact on a most favored nation basis were being welcomed by Canadians on all

sides this week.

The steps taken by Pearson’ and by Fisheries Minister James Sinclair during their

visits to initiate friendly rela-
tions with the Soviet Union are
a manifestation of the achieve-
ments in lessening international
tensions made at the Geneva
Conference, and a vindication
of the stand for peace, friend-
ship and trade taken by the
Labor-Progressive party, the
Pacific Tribune and the progres-
sive movement during the
period of the cold war.

A joint communique issued
by Soviet officials and mem-
bers of Pearson’s staff travell-
ing with him stated that the
talks were aimed at establish-

CCL applauds ‘atoms for peace’

s TORONTO
ap tormy applause greeted an
ot that atomic energy be
king for the benefit of man-
a not for human annihila-
lth during sessions of the
of (oats Canadian Congress
Week or convention here this

The call came from Jacob
tating rotsky, official represen-
ts a of the International Con-

on of Free Trade
CY °ns and fresident of the
Wo Amalagamated Clothing

_ kers of America.

lose to 900 delegates -sig-
Alpe 2atly chose this section
Me of Potofsky’s address to

respond to with a burst of

_handclapping.

“Let us continue to move
forward,” said Potofsky, “at
a time when tensions in the
world have perceptibly les-
sened; when the hydrogen bomb
has made war obsolete and
when nations, regardless of
conflicting ideologies, appear
to seek some method to win
peaceful co-existence.”

Potofsky then departed from
the prepared text of his report
in a reference which marred
the tenor of his remarks. He
referred to the need for main-
taining the arms build-up. “We
4

must be strong to preserve the
peace,” he said.

Potofsky reported how he,
on behalf of the CIO, of which
he is a vice-president, recently
called on the U.S. government
and other countries to reduce
their atomic defense budgets
by five percent and to allocate
this amount to a UN agency
for raising living standards in
underdeveloped countries by
use of atomic energy for peace.

“When we realize,’ he said,
“that by splitting the atom we
can transform deserts

Continued on back page
See ATOMS

into

ing a most-favored-nation trade
agreement similar to those held
with Poland, Czechoslovakia
and Japan.

Sale of Canadian wheat to
the USSR would ease the plight
of prairie farmers and would
benefit the port of Vancouver.

After leaving Moscow, the
Canadian party visited the re-
built city of Stalingrad and
then went on to the Crimea,
where Pearson discussed the
proposed trade pact with Pre-
mier Bulganin and Communist

Continued on back page
See TRADE

DR. J.B. WATKINS |
He accompanied Pearson

Mayors sign
peace pact

FLORENCE

Mayors and city elders of 37
capitals all over the world, from
Moscow to Karachi and Kansas
to Warsaw, signed a “peace
and friendship” pact here last
week.

It will go to the UN and
the Big Four foreign ministers.

Among those who signed
were Mikhail Yasnov, mayor
of Moscow, Sir George Wilkin-

son, former: lord mayor and
lieutenant of the City of Lon-
don, Claude M. De Wiorrs,
mayor of Wichita, Kansas, Nar-
singrao C. Pupala, mayor of
Bombay, Malik Bagh Ali, mayor
of Karachi, and Peter J. Wol-
marans, mayor of Capetown. ©

They unanimously approved
a motion calling on “the men
responsible for the destiny of
the peoples of the world to
renounce wars and resolve in-
ternational questions by means
of peaceful and constructive ne-
gotiations.” :