MANY CANADIANS FAVOUR LINK WITH U.S.

Gisborne Herald, Volume LXXV, Issue 22654, 3 June 1948, Page 5

MANY CANADIANS FAVOUR LINK WITH U.S.

NEW YORK, Mav 10. Canada’s dollar shortage has made the possibility- of an economic union with America one of the warmly debated questions The New York Herald-Tribune says that principal support comes from the big Canadian industrialists who believe that they could compete successfully in the continental market, and from farmers who want American supplies and American customers. Many younger Canadians also favour a closer union with the United States, Opponents to the economic union fear that it would be (he first step towards political absorption. Though Canada has declared her independence from Britain long ago, she does not desire to yield her privileged status as a “middle Power” and accept lest identity which political union with America would involve. Canadians, however, are acutely conscious that, only an artificial boundary divides their austerity regime from American prosperity They resent being cut off from American supplies, as their national life has been largely geared to that of the United States.

Proponents of the economic union contend it would immediately result in a rise in Canadian living standards. Many American firms, for example, the fine paper industry would move to Canada, either to be nearer the source of raw materials or low-cost power centres like Ontario.

America, however, could not provide an outlet for Canada's wheat surpluses. America already controls a large part of Canadian industry, and the Canadian Government estimates that 30 per cent, of all equipment and construction since the war represents American" investment. American branch plants operating in Canada number more than 2000.