MARITIME PROVINCES STUDY MERGER PROPOSAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP08C01297R000800210004-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 27, 2012
• Sequence Number: 4
• Publication Date: January 1, 1971
• Content Type: OPEN SOURCE

Declassified and Approved For Release 2012/09/27: CIA-RDP08001297R000800210004-9 A
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Declassified and Approved For Release 2012/09/27: CIA-RDP08001297R000800210004-9
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.1 Declassified and Approved For Release 2012/09/27: CIA-RDPO8C01297R000800210004-9
Photographs for The New York Times by JOSEPH J. VECCHIONE
Lobster Ott on St: Georges Bay near Antigonish, Nova Scotia, reflect' the Importance of the sea to -the iiiiiVinees
, ? I
By JAY WALZ .
Special to ;The ;New York Tirael. :-
HALIFAX, Nova Scotia?
Strains on the Canadian confed-
eration, especially the separatist
threats and disorders in Quebec,
are driving the three Marithne
Provinces to think seriously
aboutrpolitical union. : .
Should separatists ever win
out in the large French-speaking
province to:- the West; 'the .1.5
million residents of Nova Scotia,
New Brunswick and Prince Ed-
Ward Island would be physically
cut off, and at least 500 miles
away from that part of Canada
on whith they depend [kir -their
standard of living.
" The rise Of the separatist
Party Quebecois, -and the recent
political kidnappings by:radicals
in the independence movement,
seemed more ominous here than
elsewhere in Canada: ?
But even if Quebec remains
their restive neighbor. in Canada,
the proud but poor Maritime
Provinces..asithey exist seem
destined, at best 'for the eco-
nomic outlands: ?:
Called Self-Preservation
. .
To cite only the latest corn-
plaint,.. New Brunswick potato
growers are up in arms because
the Canadian National and Ca-
nadian -Pacific. railroads -raised
-the freight. rates. ond 'auxiliary
charges, Which the farmers say
Will add 70 per cent to trans-
portation costs' for-their already
depressed -industry.
For these reasons, a new pro-
posal has been put forward - for
the merger of Nova Scotia, New
Brunswick and Prince Edward
Island. The suggestion isbeing
accepted. y . many.. influential
persons'here? As?a matter-of self-
PreseiVatiom.??
The proposal, contained in a
report of the Maritime Union
Study, said: - ?
"At the present time the un-
tertainties-whiCh Confront this
region?the Maritimes?arises
from two dangers: the possible
disintegration of the nation and
the continued 'substantial eco-
nomic disparities in relation to
the remainder of the couritry."
-Dr. John J. Deutsch; former
head of the Economic Council
of ? Canada and special consult-
ant-to. the_ two!,year .
dered by the three provincial
governments,' said that the -pro.:
vinces must unite in the next
10 years, or be &intent fbrever
with then' poverty, Mist:rations-
and near-colonial status.. --.?
A survey carried out as part
of the study showed ?wide-pop-
ular support for merger. -klpw-
ever, reaction has beedcatitietis
among officials who risk losing
their jobs in theititegratieriprec:
eSs. RegardleSs of ?complications
and obstacles. Rickard Hatfield,
the 39.-year-old newly eleCted
Premier of New Brunswick, be-
lieves a new approach to old
'problems must beijried.- - ?
- -
running 12 miles out from the
Cap.e Breton shore. We hope
to strike oil but there soon."
The report of the Maritime
Study noted that the Maritimes
had failed to prosper with the
rest of Canada. Unemployment
today is nearly 50 per cent
above the. national level of 6.6
per cent ? of the work 'force.
In- the words of the :report,
its, peoples have had "to mi-
grate for successive generations
as -have no other native Ca-
nadians."
? -Maritiniers' say jokingly-,that
"our most valuable export is
brains.". Since World,
more than 200,000 young peo-
ple have moved to more prom'.
ising places-7-Montreal, Toron-
to; ,:Boston 'and the 'Sparse
pepiilation has not kept pace
with growth in the rest of
Canada.
While many of these emigres
have ,found gainful careers, the
plight of other hundreds is
ler of public empfoyes and the
taxes to support them .have
continued to grow faster here
than Anywhere else in the
country. ,
Proponents of union, includ-
ing prominent educators and
influential businessmen, are
counting on' the throe premien
?two of them new and all 'rel-
atively .young?to take 'strong
initiatives toward change.
* The privately run Atlantic
Provinces Economic 'Council
supports the unity movement
On the' ground' that the -prey-,
inces cannot enjoy real growth
while. they compete :with each
other for industries and "Fed-
eral IaricloUts'.7.' *
"Economically we are one
region;" ? said -Harry Flemming,
the council's executive vice
president. "We also have a com-
mon Maritime orientation and
a common history. And we can't
rely on being the chief problem
child Of Canada. There are oth-
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The New York Times
depicted in a recent Canadian
motion picture. "Going Down
the Road,":-which has won-high
praise .in., the United States.
It drain atizes the experience
of two untrained young men
from the Maritimes who, when
trying to find jobs, confront
the, hard lines'. of big, .complex
Toronto.
Prince Edward Island has
108,000 people,' New?;13runSwiak
619,000 and-Nova Scotia. 756:
000. In tinceS Of 'growing cen-
tralization; ?? urbanization . and
cerriputerrbased prciduction,, in
dustries tend to be drawn to
concentrated markets and la-
bor supplies. It is viewed, there-
fore;'no longer feasible for the
three. provinces to maintain
cottly, full-size government -es-
tablishments involving cabinets,
legislatures arid bureaus.-- -
There are two and one-ha-If
times as many civil servants
per capita in the Maritimes as
in the rest of the country, Dr.
Deutsch reported. And the num-
'Give This Thing a Try'.
I, "We're in a new world,"
Mr. Hatfield said in:. an inter:
View. "Arid the expectations of
tbe pp* are very, very high:
We've got to get down and
give this thing a:try." ?
The first "try's" will be made
by Mr. Hatfield and -his twd
associates?Premier:Gerald
Re-
gan of Nova Staitia d Preinitr
Almcander Campbell of Prince
,Edward Meeting tri
Halifax ;on Jan.-26. -
' The ,Maritime -Provinces em-
braCe an area of 52090 square
miles; roughly'-the size of
Maine, New Hampshire and
Vermont; but-their combined
population is 1.5-million, about
equal, that of_ Maine _and New
Hampshire alone.
Newfoundland, 'the remote,
but no-less-impoverished fourth
Atlantic: province, ',is _not in-
cluded in the union plans novv
because Premier Joseph" R.
Smallwood's claim to'Labrador,
which Quebec disputes,-'raiSes
Complications deemed -too, diffi-
Cult for political rearringenient
immediately; ' , _
' Quebec his never accepted
a decision of the British Privy
Council in 1927, -When Canada
was a dominion, awarding what
is now Labrador to-Newfound-
land. There has been increas-
? ing -pressure in Qiiebec"fer neW
boundaries that would reduce
Newfoundland -to . an -island
Status. ,
Despite. ?-. the yaliant Wont
involving massive Federal aid
to bring...in industry,-'.theecon,
oiny rests largely on agricul-
ture, forestry and , fishing.
Wood,- wind and water; it' an
old saying has it,' remain the
strategic resources.. *:.::
Fifty per cent of nubile rev-
enues in ,the region come. from
the Federal Government in Ot-
tawagtarits- "for educatien,
Welfare payments:public works
and
van. I, 1971
ers. Quebec, 'for:example."
However, facing many grave
problems, the premiers-:appear
not 7too eager to plunge. head.
long into the task of shedding
btireaucratS atid organizing' a
big -central,,provincial,,govern.
merit.
Hatfield, while -showing
more enthusiasm than the oth-
ers for giving union "a try,"
feels ...the Federal; GOVernment
try:1st support it "by putting up
the necessary Cash to guarantee
the, viability of the enlarged
province." ,
Until now, Prime Minister
Pierre Elliott Trudeau has not
expressed his view on the issue,
but Sinde*unieri iS arguably- a
more efficient set-up, he would
probably not oppose it
Mr. Regan- told a, visitor: "I
am' -not 'convinced the- people
of Nova Scotia are prepared
to surrender, the existence of
this state." But he said that
even without union, the prov-
inces 'Could cut 'costs and raise
?
efficiency in a number of co-
operative ways,: . integrating
such things as motor vehicle
registration and possibly high
ways.
Mr. Campbell, 37 years old,
speaking for Prince Edward
Island, -said:
"We are pew one .province. in
ten in our dealings with Ottawa.
We would :represent less -than
one-tenth of the population of
the new, bigger province, And
we'd -lose- a good deal of 'the
leverage , we enjoy at' present."
$300-Million Federal Funds
That "leverage" has- brought
the island the promise of $300-
million. in Federal development
funds over the next 14 years.
Without this prograin, : which
Islanders must support with
$400-million of their own
money, the province would. be
without hope of lifting its non-.
oiny to a self-sustaining basis.
As it is cs cents of every dollar
the government spends comes
from the: Federal piirse.' ? '
Mr. Hatfield told- a 'recent
visitor that the Qnoec. sepa-
ratist kidnappings had strength-.
cried the determination -of.New
Brunswick to (make confedera-
tion a success:- ?? --
Mr. Hatfield traveled unof-
ficially through Quebec during
the election campaign there last
April. The pro-Federalist Liber-
als wcin, but the Separatist
Patti Quebecois -polled 23 per
cent of the vote and elected
Separatists to the: provincial
Assembly for the first time.
The New Brunswick Premier
came back "deeply .impressed"
with the power -and vitality of
the Separatists as. a "'purely
democratic". movement.. .
"What* Quebec was Saying,"
Mr. Hatfield. observed, "was,
'We'll give Federalism One more
chance, and I wondered wheth-
er. Canadians in ,other, prey-
inees were listenig:" '
Mr. Hatfield, -among. others,
must Soon: show.ifwat lis-
teng by the action? '116,;taires
to prepare. the' Maritimes fun,
the eventualities in Quebec.
Declassified and Approved For Release 2012/09/27: CIA-RDP08001297R000800210004-9
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