Lethbridge Herald, The (Newspaper) - November 24, 1971, Lethbridge, Alberta
-Wodneiday. November 74, 1971 THE IE1HBRIDGE HERAID 31 Summing ujtjhe sentiment of many about We like them as neighbors, but we don't want them as landlords ny WIU.IAM it. in AN TORONTO (Al'i "We don't want lo he Americans, but wo want them as friends. We love Americans as neigh- bors, but we don't want them jis landlords." That sums up Uie sentiment of a growing number of Cana- dians who re sen I States economic domination. The words are Ihose of Peter C Newman, a for those he calls "moderate na- tionalists" while conceding Hiat may not be the precisely correct de- scription. Such Canadians feel that Canada has become desperate like the farmer selling his land bit by bit lo keep his bead almve water. Canada, they suggest, con- stantly sells pieces of the country to U.S. interests so as to remain an industrial power with one of I ha world's high- est living standards. They (car the cost may involve loss of economic and political and cultural in- dependence as well. This feeling has nagged for years. But President Nixon's "new economic policy" has provided a shock needed to jolt Canadians into under- standing what it's all about, says Walter L. Gordon, honor- nry chairman of the Commit- tee for an Independent Can- ada. Formed a year ago. the committee now tes more than 250.000 members, including business, political and inlel- lectual leaders. WAITER OK SURVIVAL Gordon, a Liberal party member and former finance minister, now is chairman of Canadian Corporate Manage- ment Co. He champions the idea that Canada gradually must regain control of kev in- dustries as a mailer of na- tional survival. The committee seeks "to speak out with one strong voice for the survival of the country-" I' wants to avoid closing the door to foreign capital, but contends: "Our land won't be ours much longer if we allow il lo con- tinue lo be sold out to foreign owners." Some in Canada call this economic nationalism. It is difficult to put a label on it. "Independence urge" might describe it better. It would be Canadianization, different than Ihe sort of nationaliza- tion American business has found elsewhere in the world. That sort of independence has become a difficult goal. Canada lives in the immense shadow of a neighbor with 10 times the population, many times the wealth, power and technology. American influ- ence pours across the long frontier. Nearly two-thirds of all fac- tories operating in Canada are U.S.-owncd. Nine of even- 10 plants big enough to hire more than 5.000 persons are owned by foreigners, mostly American. Americans control ra per cent of Canadian petroleum and natural gas. 52 per cent of mining and smelling. 97 pel- cent of the auto industry. 78 per cent of chemicals, 77 per cent of the manufacture of electrical apparatus. Close to thrcc-iiuartcrs of all Canadian exports go to the United Slates. Imports from the United States, more than billion annually, are an important slice of the U.S. economy. JIAW norms KXOIPTED Now comes President Nix- on's 10 per cent surtax on im- parts. It exempts raw materi- als but by official reckoning affects billion worth (if Can- ada's manufactured goods a year. Canadian "economic nation- alists" describe the tax as a formidable wall against Can- ada's manu'r-'cturc'-F. Hiding lo relegate this country to the role of a hinterland supply house for the U.S. industrial machine. To people like Newman and Gordon il suggests that there no longer is any "special rela- tionship" bi'tween neighbors who have shared peace and prosperity for a century. "We found out we had to bargain just like anybody says Newman, w'ho edi'ts Maclean's magazine. "There was a feeling here that the Americans didn't see us as a separate country with its own aspirations, but as a place from which they could import employment and to which they could export infla- lion." The feeling of resentment against the surtax seems widespread. Even a friend tf the government, multi-miltfon- aire Steven Roman of Denison Mines, says the surcharge will "definitely have a bad effect on the Canadian economy if it's left on for a long time." Roman, however, is amon_ those who have a low opinion of the "independence move- ment." "They're crying in the wil- he says. "I don't believe you lose your inde- pendence' by trading with your closest neighbor. "There are many things both of us can do working as friends rather than enemies.' GOES 1'ART WAV Economic nationalism crosses party lines. Premier William Davis of Ontario, a member of Uie Conservative party, goes along wilh it to the extent of feeling that Ca- nadians should dominate boards of directors in Cana- dian subsidiaries of big U.S. companies and that Canadi- an-based enterprises should, in general, be Canadian- owned The Liberal party govern- ment of Prime Minister Pierre Elliott. Trudeau, facing a federal election by .luce, tends to be wan- of what tbe impact of worsened economic relations might be. As long as two years ago Hie Trudeau government had a lask force studying the question of foreign ownership. Its report was handed in last May This month the supposed "top secret" document, was published in the Canadian Forum, a magazine appealing to Canada's restless intellec- tuals. It was not the first such studv and probably won't be the last. Cautiously, that report sug- gested that tbe non-economic impact of foreign direct in- vestment may require special ownership rules in selected in- dustries. "Non-economic" im- pact can be felt, for example, in book publishing and in technologies affecting Can- ada's cultural identity. Politi- cally, foreign ownership might push Canada toward continental integration, draw Washington into Canadian af- fairs, or even hamper Can- ada's relations with other countries. The report suggests Canada should concentrate on protect- ing industrial priorities and bargaining for better deals while carefully avoiding risk of retaliation or the discour- agement of new investment from abroad. Key words are "screening" to keep out what is not of value and "flexibil- ity" to avoid rigid positions which could hurt Canada in the long run. There lies the dilemma. LINKS AUK CLOSK Canada is so closely linked lo the United Slates, -.0 de- pendent economically, ihiit Itcr responses In U.S. aclions could hurt her more (ban her huge neighbor. The Nixon policy has not hurt quite so much as ex- pected at first Exports rose last month and there was a healthy increase in sales lo the United States, but mostly of products not affected by the surtax. Canadians are wailing for a delayed wallop. They say the surtax hits at job-generating sectors of the economy at time when Canada has the fastest-growing labor fora- in the advanced world. This is a young country, about a third of it under 15. Young people pour from schools into lire job market. The Economic Council of Canada says 2.0 million new ji'j, imixt be a the next 10 years. Il's a tall order, especially when a record 1.7 million earners depend on rnanufi'C- tiuing. figures were nor so as feared: up to I jobless. But winter is thf worst season for employ- ni' nt. and Canadians fear the picmrc will daikcn considera- bly il Ihe surtax remain'. To cushion the blow. Ihe government has announced cuts in income taxes and in era-prate taxes to stimulate business, plus a niulti-mil- lion-dollnr works program lo i create jobs. The U.K. policy thus has forcefully called attention to Canada's economic vulnera- bility. "Independence" forces think it's a matter of urgency for remedial steps to Iw taken in the form of asserting con- trol over the nation's own sources. "We could give companies five or 10 years to work things says Gordon. "We wuu'd want a majority of shares In IK in Canada. We would i wanl managers and a major- ity '.'i dircclors lo lr.) Canadian citizeny." This would apply to big Mib- sieiiaries and foreign-owned enterprises. The idea some form of crosses parlv lines, and tbs Nixon iinliry has given Ibis sort of thinking a push. T'c-w expect the Nixon ad- ministration to lifi the sur- charge until il accomplishes i's objective, which seems basically to be lo achieve a smoother, mure balanced functioning of Ihe interna- tional economic system Canadians are piqued even more hscaupe the Americans i also are pushing for a revision of the 1965 auto pact giving I Canadian automobile output i duty-free access to the U.S. market. The agreement wiped oul an i annual Canadian trade deficit v.-ilh the LniU-d .S'.Ui-s f'i: first time in history and pro- duced a U.S. deficit last of about Wifi'i million Now Washington s'-i'in- tn say that the should I v.c brcn rif r rilnl as h-.'lp lo Cam.da I" adjust her Roulette fatal N.V 'AC; Glen Malamas. ID. of burg, shot hini'-f-lf in li.c while atir-mpting to conviniv n friend lo join him in a of Russian rouletle. lie cmriwl the bullets from five cr.amiier- a revolver. the fnral lo ioin him in Ihe panic and. ivhcn the Iriend declined, put the gun to his head and fired. (JVM CO.VrilACT 1.IIT OTTAWA 'Cl'' A iir.ra; contract v.i'.h Ras-IJam Con- j slniction Lid. of Edmonton for construe! iui of a gym- nasium at Sunchikl. AM; has been renounced by trie public works department currcm-acvounls position Ca- the I S- involvement in nadians say this is like the the of Vietnam, and buy who lo.-'.'S marbles and nnounces he wasn't playing for after all. "If we don't have a t'adc wilh ;.ou." Tru- (ier.u. "how are wo going t'j pa'.' till' interest and dividends which we have lo iiu year''" Evidently man'-' Canadian" feel that Ihe S'.aN-- i., making Canada and others pay for American miMakc1. icin Aiii'-rican passion up murh of tbe MANY I'AI'I'IRS a-c more than 109 dafly Hmidriv in Brit- i.i'l. mure Hiiin local UTI papers, numer- 'nis -IK i papers and more 1 hail -i pf rindicals UUi THE ARMY'S NO 2 MAN V fri'rrcis and cdniirr-r- hci a g.fl for public rr-'a! would love to hire Canada's man who holds 1 i o n Army w o n' 1 hear cf Arnold Brown end His Ar-ny. th.s IN YOUR LETHBRIDGE HERALD WEEKEND MAGAZINE 1HJET HAS (COUNT 'EM) CASTIK WINIS IIMITIM) f. LIGHTWEIGHT REGINA 1LECTRIKBROOM Exclusive rug pile dial lor quick clean- up jobs. G. PROCTOR CITATION STEAM 'N' SPRAY IRON roiling can be a joy wilh this full- leature iron complete with Iresh white handle. 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