842.801/103
The Secretary of State to the Minister in Canada (Robbins)
Sir: The receipt is acknowledged of your despatch No. 471, dated March 20, 1934, file No. 885,37 enclosing a copy of Bill E, “An Act Respecting Shipping in Canada”, introduced in the Senate on March 7, 1934.
In your despatch attention was invited particularly to Section 774, which would automatically put into effect a provision excluding American vessels from transporting Canadian grain from one Canadian port to another, either directly or indirectly, unless an order in council is passed specifically exempting, for a specified period, a certain phase of the traffic. It is noted that no remarks are given as to other Sections of the Bill.
It is observed that you have not approached the Prime Minister as to the point you mentioned. It is not clear from your report what consideration has been given to instruction No. 103, of November 3, 1933, which outlined the broad policy to be followed in this matter and left it to your discretion as to when action in accord therewith should be taken. Please inform me as to what may have occurred with regard thereto.
Further, you are requested at this time to approach the Prime Minister and to request information as to what action he proposes to take on the Section of the Bill referred to and whether an effort to incorporate existing legislation in place of Section 774 is to be made or whether an order in council is planned to continue the status quo when the Bill shall become a law. If the situation to be created by passage of the Bill may not be remedied by some such measures, you are authorized to proceed, in the light of instruction No. 103, of November 3, 1933, and to propose to the Prime Minister the negotiation of a treaty as therein outlined.
[Page 41]The Assistant Director of the Bureau of Navigation and Steamboat Inspection, Department of Commerce, has agreed to examine the Bill in other respects.
Very truly yours,
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