CANADA'S SCHEME

Auckland Star, Volume LXXIV, Issue 34, 10 February 1943, Page 4

CANADA'S SCHEME

SHARE WAR SUPPLIES * LEASE-LEND DECISION (0.C.) . WELLINGTON, Tuesday. Canada is to'share the production of essential war supplies with the other United Nations on the basis of strategic needs. Under the United Nations Mutual Aid Bill, the main provisions of which the Minister of Finance, Mr. J. L. Ilsley, outlined in the Canadian House of Commons to-day, it is proposed to establish a Canadian war supplies allocation board. Parliament will be asked to appropriate 1,000,000,000 dollars (£300,000,000) to provide funds for the production and transfer of such war supplies. "Canada desires to continue sending supplies to Russia," Mr. Ilsley said. "We want to play our part in providing China with everything that can be transported to her, so that she may strike back at Japan quickly and effectively. We want Australia, New Zealand and other parts of the British Commonwealth to be able to get from Canada all that we can provide them of things they require from us in carrying out their part of the United Nations' effort." Safeguard Post-war Trade

The Government believed the conditions under which Canadian war supplies were made available to other United Nations "should not be such as to burden post-war commerce, or lead to imposition of trade restrictions, or otherwise prejudice a just and enduring peace." Therefore an essential feature of the proposal was: "It shall be good and sufficient consideration for transferring war supplies to other United Nations that such supplies are to be used in the joint and effective prosecution of the war." Hitherto Australia and New Zealand had purchased from Britain Canadian dollars they required for Canadian supplies. But, Mr. Ilsley said: "We think it would be more satisfactory from the point of view of all concerned if they were able to make more direct arrangements with us. All our exports of war supplies will not need to be transferred under this arrangement, because Britain and others of the United Nations have current receipts of Canadian dollars which enable them to pay for substantial quantities of what they obtain from us. It is only the excess which they cannot pay for that will be dealt with under this measure.

Buying British Interests "In some cases, it may be possible to arrange for the return after the war of equipment or vehicles which Canada provides under this new programme," Mr. Ilsley continued. "In still other cases, a nation receiving war supplies from Canada may be able to provide us with some other form of post-war benefit." _ Reviewing previous financial arrangements made to assure the flow of war supplies from Canada to the Allies, Mr. Ilsley mentioned that the 1,000,000,000-dollar gift to Britain was now exhausted. In addition to the mutual aid bill, there were two subsidiary measures. The Government proposed to take over ownership of all interests of the United Kingdom in war plants in Canada, and reimburse the United Kingdom for its investment in them. The other related proposal was an expansion in the number of Canadian Air Force squadrons overseas, and in the degree to which Canada bears the cost of equipping and maintaining them.