Yanks buying up Canada
with our own money!

A charge that “The Americans are buying us out with our own money” was made recent-
ly by Ontario New Democrat Ken Bryden, MLA for Woodbine, during debate in the legislature.
He said U.S. - controlled corporations are steadily expanding and improving their plants in
Canada, are building new plants, and are buying out more and more successful Canadian en-

terprises as going concerns.

“Their tentacles are extending
further and further through the
Canadian economy,” he said,

All, this does not represent
increasing investment of US,
funds in Canada, Mr. Bryden
emphasized, It represents in-
creasing investment of CAN-
ADIAN funds by and under the
control of U.S, corporations,

“In short,” he charged, “the
Americans are buying us out with
our own money, U.S, corpora-
tions are not bringing any sig-
nificant amount of U.S, money
into Canada, They are re-in-
vesting funds generated in Canada
which they have captured in de-
preciation allowances and; un-
distributed profits.”

He accused the government of
Sleeping while the American
corporations’ got control of a
large and increasing proportion
of Canadian investment funds,
which they are now using to ex-
tend their contro] still further.

Bryden quoted a DBS survey
published last summer which
showed that of 24,508 corpora-
tions covered, 7,439 or nearly
a third of the total were more
than 50 percent owned by non-
residents, The concentration of
foreign ownership is greatest
in manufacturing and mining.

And it is only part ofthe story,
he said. Although the actual
number of companies with more
than 50 percent foreign owner-
ship coftstituted only a third of the
total, the equity stock of those
companies added up to $23.8
billion out of a total for all
companies surveyed for $32.6
billion — or almost 75 percent
of the total,

“In other words, the companies
under foreign control in the main
are the big companies — those
whose decisions have an import-
ant effect on our economy, The
Yanks still let us run our own
corner grocery stores and other
small businesses, Theyarecon-
tent to control the big com-
panies,” Bryden declared,

Moreover, he said, the DBS
figures take no account ofthe fact
that it takes much less than a 50
percent holding of equity stock to
exercise complete control overa
company. For example, more
than 90 percent of the stock of the
Bell Telephone Company is tech-
nically held by Canadians but the
company is effectively controlled
by one ofthe world’s most power-
ful monopolies, American Tele-
phone and Telegraph,

Bryden charged more and more
of Canadian industry, particu-
larly in the critical resource and
manufacturing fields, has been
falling under the control of huge
international corporations based
mainly in the U.S. The process
is now so far advanced, he said,
that it is not difficult to foresee

complete control by such corp-_

orations over all significant in-
dustrial and resource enter-
prises in this country.

“There are some who simply
turn the blind eye to this trend,”
he said. “Canada needs foreign
capital, they repeat over and
over again; let us get the cap-
ital and damn the consequences.”

He said such was the viewpoint
expressed recently by Sask-
atchewan Premier Ross Thatcher
and Manitoba Opposition Leader
Gildas Molgat — “two of the Lib-
eral Party’s large and growing
stable of partly house-broken
reactionaries.” (B.C. Liberal
Leader Ray Perrault has also
joined the stable, — Ed.)

‘*There are few who would deny
that Canada needs foreign capital
if it is to continue to grow,”
Bryden said, “but before we jump
to the conclusion that foreign con-
trol is the necessary price of
foreign investment, let us look
at what is actually happening.

He quoted the U.S. Department
of Commerce which annually re-
views the sources and uses of
funds of foreign affiliates of U.S.
companies, Its latest analysis
was contained in the November,
1965, issue of its monthly mag-
azine Survey of Current Busi-
ness,

“After payment, of dividends,
financing by U.S.-controlled
companies in Canadian manufac-
turing, mining and petroleum in-
dustries totalled $1.96 billion in
1964. Only $125 million of this
sum — six percent of the total —
came from the U.S.,” he said,

“The actual U.S. money that
U.S. companies are bringing into
Canada is small and is getting
smaller every year. In 1962
their total financing after pay-
ment of dividends was $1.60

‘billion, of which $201 million or

123 percent came from the U.S.
In the space of two years it
dropped to six percent,

“It is nonsense to say that

THE

by Nigel Morgan

papers across Canada?

above.
ing promoted

CASE FOR A

WATER. Sani

A REPLY TO THE U.S. PLAN TO TAKE
OVER CANADA'S WATER RESOURCES

*

What's behind North America’s rapidly growing water
crisis? Is Canada to become a huge water basin for the U.S.?
What's behind the controversy now hitting the headlines of

These are some of the questions answered in the current
documented pamphlet by Nigel Morgan, B.C. leader of the
Communist Party. Front page of the pamphlet is shown

The pamptist explores the NAWAPA scheme now be-

the U.S. and outlines proposals

ig for Canada. Available at the Co-op Bookstore, 341
Pender St:, and Communist Party office, Rm. 502,

for a water
Ford

‘Canada-needs

U.S.-capital’

Myth exposed

i | x

|

Canadians must put up with in-
creasing U.S, control of our econ-
omy because that is the price of
U.S. investment in Canada. The
plain fact is that the growth of
control by U.S, corporations is
bringing only a very small and
declining amount of U.S.,. invest-
ment funds with it.

by NDP-MLA

“Where, then, are they getting —

the money they are investing in
Canada? Nowhere else than in
Canada.”

Bryden saw the problem of
foreign control of Canadian in-
dustry as merely one aspect of a
much larger problem, Inthelast
analysis, he said, what we are
seeing in Canada today isaphase

of a world-wide trend towards the

concentration of control over in-
dustry.

“That problem is the growing
concentration of economic power
in the hands ofa declining number
of huge, monolithic corporations
which are really accountable to
nobody.”

McNaughton says U.S.

water plan

The plan for diverting water
from Canada put forward by the
Ralph M, Parsons Co,, of Los
Angeles, was branded asa “mon-
strous proposal” last week by.
Gen, A.G.L, McNaughton when he
addressed the Royal Society of
Canada in Sherbrooke, Quebec,

McNaughton said the pro-
moters of this plan “would dis-
place Canadian sovereignty over
the national waters of Canada, and
substitute therefore a diabolic
thesis that all waters of North
America become a shared re-
source of which most will be
drawn off for the benefit of the
United States midwest and south-
west regions where existing des-
ert areas will be made to bloom
at the expense of development of
Canada.”

McNaughton, who was former
Canadian chairman of the Inter-
national Joint Commission from
1950 to 1962, said that the Us.
has abundant water supplies for

all its needs and Canada must ©

not offer her water to U.S, in-
terests at cheap prices,

“What is scarce in the United
States is clean water, and this
could be provided at less cost

“by proper administration and

pollution control than by importa~
tion from Canada,” he said,

Under the Parsons scheme,
McNaughton said, a mammoth
inroad would be made into Can-
ada’s lawful rights and interests,
-The corporation would inevitably
have to assume quasi-sovereign

June 17, 1966—PACIFIC TRIBUNE—Page 8

‘Monstrous

¢ -

power to administer large areas
‘of Canada at the expense of Can-
adian sovereignty.

The prominent Canadian en-

‘gineer pointed out that the Par-
‘sons Plan involves collecting the
waters of the Yukon and Peace
‘Rivers in the Rocky Mountain
Trench,
George, B.C, would be submerged
and their land with them, as would
countless miles of railway and
highway. These irreplaceable
assets would be destroyed in the
name of transmountain naviga-
tion,”

McNaughton’s address was op-
posed to the speech delivered at

the Sherbrooke meeting of the:

Royal Society of Canada by U.S.
Senator Frank E, Moss, the lead-

ing proponent of the Parsons

Plan,

“Whitehorse and Prince

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