Lethbridge Herald, The (Newspaper) - January 12, 1972, Lethbridge, Alberta
WrfntWly, Jwiiwry II, THI LITHMIDM HMAlt Peter Desbairata Free trade with U.S. once explored (Pint In a wrlei) IF Mackenzie King hadn't got cold feet at the last 'moment, and if he had not re- ceived a warning "from some source in the Cana- dians this year might well be looking back on almost a quar- ter century of free trade with the United States. Unknown to all but a hand- ful of people in Ottawa and Washington, secret negotia- tions with the United States in 1948 produced a draft treaty which would have removed virtually all trade barriers be- tween the two countries for 25 years. If the treaty had been sign- ed, Canada today would not be on the ere of announcing a new policy on foreign investment leading to greater control of its own economy. The question facing Canada today, if Mac- kenzie King had said yes ia I94B, probably would be wheth- er or not to accept political union with the United States. The story of the secret ne- gotiations has, never been told in detail. There is a relatively brief reference to it in the Mac- kenzie King diaries but most Canadians are unaware that UK talks ever toot place. The full story is enough to chill the marrow of any contemporary Canadian economic nationalist. One of the two civil servants In charge of the negotiations wag John Deutsch, head of The Economic Council of Canada from 1963 to 1966, now princi- pal of Queen's University. In a recent conversation in his of- fice at the university, Deutsch recalled exactly how dose Can- ada came in 1948 to creating a free trade area with the Uni- ted States and drastically al- tering the course of its own fu- ture. In IMS Deutsch was a bril- liant 37 year old economist who had moved rapidly from a prewar post with the Bank of Canada to a key job as a spe- cial assistant in the Depart- ment of External Affairs. The previous year he had been in Geneva for negotiations lead- ing up to the general agree- ment headed by Hector Mc- Kinnon, chairman of Canada's tariff board. Late in 1947, Deutsch and McKinnon were sent to Wash- ington on an urgent, difficult mission. Canada, having more than paid its own way during UK war years, was going broke. The shattered eco- nomies of Europe and Asia could buy Canadian exports only with help of Canadian credit. Canada's only impor- tant cash customer was the United States but trade with the U.S. at that time'was run- ning to Canada's disadvantage with imports exceeding ex- It was a crisis situation for Canada. Despite all the heavy post- war talk about a new world of free trade among nations, Can- ada had to impose strict con- trols on imports from the U.S. In 1947 and ask Washington for a billion-dollar loan. The Am- ericans loaned Canada half a billion. "Here we were, the most ar- dent advocates of free recalled Deutsch, "but the ink was hardly dry on the GAIT agreement when we were down in Washington looking for ex- ceptions. "It was a pretty harrowing experience to go there cap in hand and to reverse the things we stood for. But we had to take action to deal with the crisis at home, and Washing- ton was the only place where action was possible. "The Americans agreed (hat there was nothing else we could do about it. It -was dur- ing these discussions about our import were four or five of us sitting around the table, Hector McKinnon and myself and several Americans somebody on the Ameri- can side said, Vhat would you say if to meet your prob- lem what would you say to free The man who made the ini- tial suggestion, as Deutsch re- called, was Woodbiiry Wil- loughby, who was then chief of the state department's division commercial policy and was later, from 1950 to 1952, coun- selor for economic affairs at the U.S. embassy In Ottawa. Deutsch emphasized that WUIoughby's proposal has to be seen today in the context of its own time. It was a period of extreme disillusionment. The cold war was just beginning to freeze the peacetime hopei that had burned brightly when the war had ended a few years before. Britain was in serious economic trouble. Germany and Japan were occupied. Eu- ropean rcconstructlon had barely started. In this uncer- tain world, It was natural for the two strongest economic! to think of mutual protection. "Tlicrc was also tho personal contact that wo hnd with tho Deulsch, "having worked closely togeth- er on all the postwar arrange- ments, we got to know each oiher very well. We could throw out an Idea )ast like that: Free trade would that solve your The Canadian prime minis- ter's first reference to this was in a memorandum summariz- ing a discussion on Jan. 13, 1948, with Finance Minister Douglas Abbott. King learned from Abbott that the Ameri- cans had raised the possibility of a free trade agreement and that "if we could get complete reciprocity, he felt we would no longer be dependent on un- certain markets of Europe, which are bound to be uncer- tain for some -time and that this would give what was need- ed to maintain, as far as could be maintained, the prosperity of our country." "Some of the ministers were quite said "but King and Abbott thought, well, in view of the circum- stances, we'd better see if there's anything in it. But they also said keep it very quiet, because this thing could be misunderstood. So Hector and I went back to Washington and said our ministers say that they would, like to explore it a bit. "We talked to them for three or four weeks and it became eivident very quickly that we could get a scheme, and the scheme was this: that the Am- erieans would immediately withdraw all their ex- cept on agricultural products. All manufactured goods, all raw materials as far as our exports to the U.S. were concerned, It would be Imme- diate free trade. But we would be allowed to keep our import quotas, which had just been put Into effect, over a transitional period of five years to allow the Canadian economy to ad- Just." Washington's offer to accept temporarily the new Canadian import quotas under the scheme, and to immediately remove American tariffs, was strong bail for the Canadians. "Deutsch made an excellent King noted in his diary on March 22. "Hector and I reported that we had worked out this model agreement, the basis of a 25- year said Deutsch. "I think at first that the Cana- dians couldn't believe it. It was impossible. But we said no, this is serious. From an eco- nomic point of view, this was a proposition. "We were asked if we felt that it was economically feas- ible. Hector and I said that there were many advantages to it from an economic point of view. Immediately King was quite enthusiastic. lie had been disposed toward freer trade anyway, on principle. "So they told us to go back to the Americans and keep them interested." "The Americans said all right, we'll take it up the line. So it moved up to the secre- tary of stale. And they started to sound out a few senators." But within a short time, King was worrying about the politi- cal effects in Canada. He was Jess than eight months away from the end of Hs tern as prime minister and he recoiled from the prospect of fighting a last major political battle on a field already littered with the corpses of Canadian politicians. "I would be liability rather than an asset in the he wrote, "inasmuch as the Tories would say this is Mr. King's toy. He has always wanted annexation with the United States. Now be is mak- ing his last effort toward that end." The political qualms were re- inforced on March 24 by "a quite extraordinary experience which I took to be perfect evi- dence of guidance f r o m be- yond." Looking through his book- shelves that morning, the prime minister had drawn out "Studies in Colonial Natlonal- "So, What Do We Worship Book Review Sickening story of poisoners "Slaughter the Animais, Poison the by Jack Olsen (Simon and Schuster, 287 TV) wou want to get sick? Not just sick to the stomach, but heartsick, the kind of sick- ness that comes from reading a disgusting and revolting ac- count of your fellow human beings' exploits? If you'r willing to take this chance, read this book. You won't enjoy it (at least not the way you may have enjoyed other but you will learn from it. You'll learn how the United States government wildlife agencies haphazardly scatter a poison called 1060 a poison "a pinch of which is enough to send several dozen adult hu- man beings into a writhing, convulsive death." You'll learn how to tortue coyotes by sawing off their lower jaws and turning them loose to be ripped apart by a pack of dogs, or by wiring their mouths slut and then re- leasing them. You'll leam how to poison off any animal that dares come into your area, in an effort to save your precious sheep. You'll leam how to fill dead carcasses (elk, deer, sheep, or anything at all) with 1080 and then leave those baits strewn about, lying in wait for that most dreaded of all killers, tne coyote or any other animal that might happen by. It will not nutter to you that there Is m known antidote, even for humans, to 1080. Yes, Hi a gut-gripping, mad- dening book, but you must road It. You must acquaint yourself with the U.S. government hunt- ers tnd trippers who carry out this disgusting poisoning At the beck and call of every "suffer- ing" slwepman. U.S. rcpre- seotitiva John Savior nys of these government men who commit these atrocities, espe- cially the ones who shoot co- yotes from planes and scatter poisonous baits from the air; to me, they are not hu- man beings. You must become acquainted with some of the facts. Facts like: the wholesale slaughter of coyotes, the natural predators, increases the deer and elk pop- ulation to a point where they over-graze, and must be slaugh- tered by "sportsmen" in spe- cial organized shoots. Facts like: the killing off of lions, coyotes, lynx, foxes, wolves, etc, increases, at a fantastic rate, the rodent population and then one must poison the ro- dents, creating a vicious circle. Poison, poison, poison it's the password of the sheep in- dustry. In an article in the Wall Street Journal, Kenneth G. Slo- cum states, "the value of sheep lost to predators in one year was but the amount spent to kUl these predators wns 195." This was only in a small portion of California and you can bet most of that was spent on poison and Its dis- persal. Man against the predator it is not, however, on that per- sonal a basis. For, as Olsen points out, "predators are not fighting against mere man, but against human technology, and human technology can pro- duce Hiroshimas and Buchen- walds." The book, dramatically illus- trated with the morbid, eric drawings of Laslo Kubinyi, may or may not have been the final prod that brought about the calling together of a Senate investigating committee to look Into nnlson misuse. But whether It was or not, an investigation was opened in (he U.S. in curly December. Ah, you say, it last something will be done. Don't bet on it. They will be fighting i well organized stockmen's lobby being prodded by the "suffer- ing" sheepmen men who cry coyote every time a sheep dies; men who control govern- ment trappers in one way or another; but most disgusting of ell they will be fighting men who literally own or control people, ranging from field rep- resentatives all the way to con- gressmen and senators. While this is an American book, don't be lulled into a sense of false security. Poisons are being used right here in southern Alberta too. One cer- tainly hopes they are under more stringent control than the book reveals they are In the U.S. These poison baits are clearly marked too bad your pet dog can't read. And don't think kids, dogs and other un- suspecting animls don't blunder onto these poison baits, often with tragic results. Poison is the worst thing man can use against an animal. Some forms of poison kill im- mediately unselecSvely, while others torture their vic- tims with a slow agonizing death over a period of weeks. Road this book, decide for yourself if poison control of predators is necessary. I think not. Many species are fast dis- appearing from the face of the earth and all species depend on one another its called the balance of nature, nod ftian docs enough ctnmage with guns without resorting to poisons. I feel the list line in the book is one that requires some se- rious pondering: "We animals of the earth are a single fam- ily, and the death of one only hurries tho otlicrs toward the fjjial patch of darkness." GARRY ALLISON. Ism" by Richard Jebb, i book that he had never particularly liked and that he had not look- ed it for 20 years. Musing over the last ctapter "The Soul of the Empire" King vividly perceived that "For me to be placed in the position of being the spearhead of furthering a commercial union (with the U.S.) as the last act of my ca- reer would be to absolutely de- stroy the significance of the whole of it." A conversation with Pearson later that day was remember- ed, in the prime minister's diary, for Pearson's statement that "We would absolutely be selling the soul of the people, meaning the whole relation- ship with Britain and the Com- monwealth" if the treaty were accepted. "I felt wholly wrote King, "that tlie taking out of that book, and reading that chapter was no matter of chance but had been Inspired from some source in the beyond." "I would no more think of, at my time of life and at this stage of my career, attempting any movement of the kind than I would of flying to the South Pole." Without benefit of the same guidance, Canadians and Am- ericans who were then working on the scheme gave it up less readily, By then, the wheels were in motion and it requited a real effort to bring them to a halt. Deutsch recalled that initial political reactions in the Uni- ted States were1 "very favor- able" and that this was report- ed back to Ottawa. At the end of March. Hume Wrong, the Canadian Ambassador in Washington, told King that "it was doubtful If conditions in the United States would ever be as favorable as they are at the moment." At the end of April, the McKinnon-Deutech negotiations were ready to be brought to the attention of the president. C. D. Howe was, according to King, "inclined to urge very strongly going ahead." On May 5, Howe told the acting secre- tary of state in Washington that "senior members of the cabinet had been attracted by the trade proposals and would be prepared to mate an agree- ment on the basis of what had been suggested." Howe denied this ivhen King confronted him with the report. The following day, King signi- fied to Pearson that the mat- ter was closed when he said that "If I thought there was a danger of Canada being placed at the mercy of powerful fi- nancial interests in the United States, and if that was being done by my own party, I would get out and oppose them open- ly." "There was a little bit of pressure from the U.S.. "Deutsch recalled. The Ameri- cans were worried that they couldn't keep it secret and that if it ever got out, somebody would be immediately con- fronted with it. But we don't press it; this is a very difficult thing. "About the same time, ne- gotiations began for a security agreement that eventually re- sulted in NATO. Then the Am- ericans started to talk about an entirely new move on postwar reconstruction something that turned out to be The Mar- shall Plan. So Canada's eco- nomic worries began to sub- side as the political worries about the treaty increased. "The scheme just died. We told the Americans that we couldn't get decisions and that they shouldn't press it. "The more King looked at the scheme, the more cautious and worried he became. There was no doubt that many Cana- dians would have interpreted it as an annexationist move. And once many people felt that way, that would have become the political reality. "Hector McKinnon and I often talked about this between ourselves about the political aspects. You could make a very persuasive economic ar- gument for the sceme, espe- cially in the circumstances of the time, but the economic sig- nificance of it was almost ir- relevant. I felt in my bones at that time that the political problems would not be sur- mountable." As events since then have re- vealed, the political feeling that John Deutsch experienced in 1948 was caused by the first stirrings of positive economic nationalism as Canada faced the postwar period. Mackenzie King's instinct to resist the ob- vious economic attractions of a free trade treaty in 1948 can now be viewed as a landmark political decision at the begin- ning of a process leading up to (he Grey Report, the new pol- icy on foreign investment and the gradual formation of a Ca- nadian strategy for achieving greater Independence. (Toronto Star Syndicate) j UN broadens relief role The Chrtitftn Science Monitor QNE of the most constructive things to emerged from the United Na- tions 26lh General Assembly was the de- cision to set up I central disaster relict agency. Much credit for this achievement goes to' a small group of countries, headed by Turkey, which have long pressed for such an organization. It is a cause we ourselves have strongly supported, particularly since last year's big natural the earthquakes in Peru and Turkey and the massive cyclone in East Pakistan. The UN's specialized UNICEF (the children'] emergency fund which has just celebrated its 25th anni- the Food and Agriculture Or- ganization, the World Health Organization have each contributed relief in emer- gencies such as these. But there have been frustrating delays, bottlenecks and re- dundancies. The disaster centre is intended to see that relief is channeled swiftly and effi- ciently to the region where it is needed. Heading the centre will be a co-ordina- kind of relief ombudsman. He will have stockpiles of supplies around the world to draw upon. In an emergency communications are vitally important a breakdown of communications contri- buted to the slowness of getting relief off the ground in the Pakistan cyclone. It is therefore planned to use a tions satellite for rapid connections' with i disaster area. The centre will have authority to act In man-made as well as natural disasters. This is a significant, and, we believe, a right provision. The United States tnd Britain were among the countries that In- sisted on it, bearing in mind the huge relief problems of the Nigerian civil War and last year's mass exodus of refugee! from East Pakistan. We hope that the centre also will ex- tend its activities to encourage countries in disaster-prone areas to take steps by constructing buildings 'capable o( standing up to cyclone, hurricane, or earthquake, a n d by preparing adequate evacuation measures. Strangely enough, it is some of the countries most prone to natural disasters that have been the slow- est to plan for an emergency. With foresight and wise planning, the tragic loss of life caused by such disaster? could be considerably reduced. The General Assembly's decision will both strengthen and broaden the humani- tarian work that the UN has already been doing through its specialized agencies. It is a line of endeavor where the Interna- tional organization has an immensely use- ful and compassionate role to play. A French view of Quebec Troli-HlrierM Le Nonvelliste A FORMER prime minister of France, Maurice Couve de Murville, has de- voted six pages of the problem of Quebec in his book Une politique etrangere, 1958- 1969-Foreujn Policy, 1958-1969. Commenting on the famous incident on the Montreal city hall balcony where Gen- eral Charles de Gaulle made his thereafter celebrated cry "Vive le Quebec Mr. Couve de Murville writes: "The dust has settled. The sentiments and resentments bave been appeased The French in Canada continue to exist without the help or complicity of anyone, by the cole fact that they are finally at peace." He places the problem in a historical context, saying Hut until recently the French in Canada lived in total isolation, playing no political or economic role and nothing much happened until the 1969- 1970 period. He makes an excessively severe and, to us, profoundly unjust judgment of the Du- plessis regime. "At the time of a first visit to Quebec In he writes, "the Union Nataonale, tiie archaic, abusive party of Maurice Duplessis, was still in power. It contented itself with just being there, unshakeable in its maintenance of language and religion, indifferent to everything else, particularly to whatever would rock the community it had so long identified with and would make that community anything more than some- thing desperately behind a. flourishing tnd dominant English community." Mr. Couve de Murville then eulogizes Jean Lesage and later Daniel Johnson. We agree with Mr. Couve de Murvtik's view of Messrs. Lesage and Johnson. But we contend that the French of have shown a gross ignorance about the Duplessis regime. We freely admit that regime, when com- pared with those of Lesage and Johnson, could appear archaic, especially in the last years. However, we must have the hon- esty to recognize that Mr. Lesage's Quiet Revolution could not have come about if Mr. Duplessis had not prepared the way by instilling in French-Canadians t real feeling of pride by his autonomous stud in the face of central authority. ERIC NICOL Valuation day VD, the social disease more commonly known is Valuation Day, is causing a good deal of soul-searching in Canada. Attic-searching, too. The need to set value on all our ob- jects d'art that are worth more than has brought on .the worst crisis in the Nicol household since the hamster lodged In the dryer. My wife and I spent some time com- pleting the inventory of art treasures we own that are obviously to be valued at over About 45 seconds, actually. The time it took to muster a piece of lined paper, print OR MORE" at the top of it, spit, and tear the paper to shreds. The VD task that took us longer was appraising the marginal possessions, the works of art that tottered on the border, line between a capital investment and junk. The Venus de Milo, for instance, might have qualified1 despite the clock in her belly, if the clock worked, and if the original Venus had been headless as well as armless. Then there is the antique china water pitcher we found in toe shed when we moved Into the house years ago. We very nearly threw the chipped old brute into the garbage can before we learned that it was a piece of Canadiana. It isn't early Cana- eu'ana. In fact it is probably later than we think. But we must weigh the possibility that there is an American living in Fort Worth, Texas, who will gladly pay for our water pitcher, just as she sits, empty. My wife and I did not spend as much time checking her jewel box as you might suppose, if you have peer following the Burtons rather than us. My wife has i diamond ring I gave her that she says Is the next best thing to the Hope diamond. "The What-a-Hope she calls It "Dainty diamond! could coma back I told her. "Like my other ring? I've seen a bigger sapphire on the arm of a record player." Putting a question mark beside PRE- CIOUS GEMS, I moved on to evaluation of the paintings in the Nicol collection. It is tempting to undervalue the watercolor sold to me by the chap who came to the front door and said that the Group of Seven had already appreciated to the Group of 57, of whose originals he just hap- pened to have one left. He said that if I cleaned the painting I would discover a Dutch master under- neath. That's how I paid for the pic- ture of a cigar. One of my daughters did some finger painting that could become valuable in years to come. Her teacher said she had K clique talent, the blabbermouth. If there is artistic genius in this family I want it to remain undiscovered till Daddy has paid his taxes. That leaves only my stamp collection. If Mr. Benson expects me to go through all those yellowuig pages of my stamp al- bums, old hinges fluttering like iroths stir- red from childhood, he overestimates my dedication to VD, Having taken account of our more ma- terial belongings, I find solace in the Au- thority that urges us to count our bless- ings. His is the senior valuation day, Ed, and a damnsight easier to reckon. (Vancouver Province Features) It's contagious By Dong Walker ELSPETH hardly ever manages to call tude toward this phenomcnon-they chalk our children by Uicir own name on it up to Iho aging process It was a bit tlie first try. Sometimes sho has to run disconcerting, therefore, wlwn the youngest Uirougli Die whole list-Joanne, Judi, member i...... Paul-bcfore getting the right one. Usually she can keep the sexes separated so that we just have a family with dou- ble names: Joanne Judi; Judl Joanne; Paul Keith; Keith Paul. kkb tike a aomewfaat (oterint atti- dressed an urgent Inquiry to his mother as follows, "Dad Mum Maybe Elspelh's trouble is not ag- ing; she may be afflicted willi a discasa (hat's contagious.