19. The Prime Minister, referring to discussion at the meeting of May 31st, 1955, said the Dominion Coal Company had now accepted a firm order from the United Kingdom for a further 120,000 tons of slack coal, with the possibility of an additional order for 10,000 tons later on. The Dominion Coal Board recommended that similar assistance be extended to these new orders as was provided for previous shipments to the U.K. and Europe. This slack was in excess of home demand. It would remain unsold and later be moved to points in the St. Lawrence River Valley at a possible maximum subvention of $4.75 a ton if not sold overseas.

The assistance provided earlier had been approved on an experimental basis only, in the hope of developing markets in Europe. While these additional orders were perhaps not of an experimental character, the slack had to be sold by one means or another.

Consideration of the matter might be deferred until Ministers more directly concerned were present.

20. During the discussion the following points emerged:

(a) Unless better arguments than the experimental one could be made for this sale, assistance should not be given. The slack should be sold to the U.K. for the best price obtainable.

(b) The import of coal into the U.K. from Canada had been reasonably well received. The U.K. was facing great difficulties in getting sufficient numbers of men to work in its coal pits. The suggestion had been made in the U.K. that some N.S. miners might go there to work in U.K. mines. Whether any would be willing to do so was another question.

(c) It was inadvisable to pay subsidies which led to the use of a mineral for secondary purposes which might be a real asset in the future for more useful purposes.

21. The Cabinet noted the report of the Prime Minister on the proposal to extend to a larger tonnage the export subsidy on coal for the United Kingdom and Europe, and deferred consideration of the matter to a meeting at which those Ministers most directly concerned would be present.

. . .