CANADA U.S. MERGER

Press, Volume CI, Issue 29748, 15 February 1962, Page 11

CANADA U.S. MERGER

Magazine’s Prediction

(K.Z.P.A.-Reuter—Copyright) WASHINGTON, Feb. 13.

Britain’s probable alignment with the European Common Market and the possible end of Commonwealth trade preferences were two of the factors that may make a merger with the United States desirable for Canada, “U.S. News and World Report” stated today.

In an Ottawa-datelined article, the weekly news magazine said such a merger “is quietly moving into the realm of serious attention,” and the -first move towards such a union would be in the economic field.

The magazine said the first move towards a union of the two countries would be in the economic field. “Political union, even on a limited basis, is farther away,” it added.

Necessity, on Canada’s part, was forcing the merger to be considered, the article said.

“Many businessmen in Canada predict privately that there will be full economic union with the United States within 10 years. They see no alternative to merger with the United States as the world organises into huge trading blocs. “American investors have poured 15,000 million dollars of their capital into Canada.

"The investment built industries in Canada for two purposes.

“One was to get into the protected market made up of fewer than 19,000,000 Canadians.

“The second was to get inside the preferential-tariff wall surrounding the British Empire.”