CANADA: Sense of Disquiet

Is Canada in danger of domination by U.S. capital?

Many Canadians seem to think so—among them Prime Minister John Diefenbaker. “There is an intangible sense of disquiet in Canada over the political implications of large-scale and continuing external ownership and control of Canadian industries,” he says.

Against the day when “disquiet” might be translated into action, some companies are systematically trying to loosen their U.S. corporate ties and to “Canadianize” their management. One conspicuous example is U.S.-owned Union Carbide Canada Ltd., Canada’s second biggest chemical manufacturer. Ever since it was formed four years ago from five loosely knit subsidiaries of Union Carbide and Carbon Corp., the Toronto company has sought earnestly to assume a Canadian coloration. It took on a Canadian president and board chairman, gave Canadians four out of seven seats on the board of directors, put Canadians in 95% of its key jobs.

Last week Nova Scotia-born President Alison Cumming, 50, announced that the company will build a $4,500,000 glass and stainless-steel headquarters building in Toronto. Soon he plans to issue separate financial statements and common stock for sale to Canadian investors. Said President Cumming: “We want the public face of this company to be Canadian, and not something that’s just for show.”

Such appeasement only blurred the blunt fact that Canada still needs money for development, still lacks enough homegrown capital to supply the demand. Last week a tart reminder of these realities came from Canada itself. Wrote Calgary’s Liberal-leaning Albertan:

“Mr. Diefenbaker seems to blame the Americans for what he doesn’t like. But what have the Americans done? They have brought money into Canada. They have invested in the future of Canada. They have done it as best fits in with operation of wholly-owned subsidiaries to American corporations. Almost without exception, their stock ownership is available to Canadians. Canadians, if they had the money and the inclination, could control every one of the American companies operating in Canada. If Americans can see the opportunity in Canada and Canadians are blind to it, why criticize the Americans?”