Present
The Prime Minister (Mr. Diefenbaker) in the Chair,
The Secretary of State for External Affairs (Mr. Green),
The Minister of Finance (Mr. Fleming),
The Minister of Veterans Affairs (Mr. Brooks),
The Minister of Transport (Mr. Hees),
The Solicitor General (Mr. Balcer),
The Minister of National Defence (Mr. Pearkes),
The Minister of Trade and Commerce (Mr. Churchill),
The Minister of Justice (Mr. Fulton),
The Minister of National Revenue (Mr. Nowlan),
The Minister of Agriculture (Mr. Harkness),
The Minister of Citizenship and Immigration (Mrs. Fairclough),
The Minister of Fisheries (Mr. MacLean),
The Minister of Labour (Mr. Starr),
The Postmaster General (Mr. William Hamilton),
The Minister without Portfolio (Mr. Browne),
The Minister of Mines and Technical Surveys (Mr. Comtois),
The Minister of National Health and Welfare (Mr. Monteith),
The Minister of Northern Affairs and National Resources (Mr. Alvin Hamilton),
The Minister of Defence Production (Mr. O’Hurley),
The Minister of Public Works (Mr. Walker).
The Secretary to the Cabinet (Mr. Bryce),
The Assistant Secretary to the Cabinet (Dr. Hodgson).

EMBARGO ON HOGS FROM U.S.

8. The Minister of Agriculture reported that, since 1952, the import of hogs from the U.S. had been prohibited because of an outbreak of a hog disease in that country. The last reported case had occurred in 1956, and finally on October 22nd, 1959, the U.S. government had officially declared the country free from the disease.

The Minister had not been prepared to recommend the removal of the embargo until the deficiency payment plan had effectively replaced the purchase of hogs as a method of price support in Canada. Veterinarians of the Canadian government had visited the U.S. and had confirmed that the disease had been eradicated there. In the circumstances, he now recommended the removal of the embargo and suggested that he might make an announcement on the subject on February 8th. The U.S. authorities were not pressing unduly, but they obviously expected that the importation of hogs into Canada would again be permitted.

Removal of the embargo had been expected for several months by most persons engaged in the hog business, and the price structure had become artificial. The price in Chicago was about $16.50 to $16.75 per hundredweight; it was $18 in Western Canada as compared with from $21 to $25 in Toronto. Packers in Western Canada had stopped buying Canadian hogs because they would not be brought to market in Eastern Canada for three weeks, and the packers anticipated that U.S. hogs would be competing in the eastern market by that time. The consequence was that prices had been falling in Western Canada and rising in Eastern Canada, and a spread of $7 to $8 per hundredweight had developed, although freight costs would account for only $2 to $4 per hundredweight. The removal of the embargo would cause a considerable reduction in prices.

9. During the brief discussion it was noted that, although the removal of the embargo might be unwelcome to Canadian producers, the government had no real alternative. Lower pork prices would be popular with consumers. The announcement on the subject should be made prior to the forthcoming trade discussions with the U.S. authorities.

10. The Cabinet approved the recommendation of the Minister of Agriculture that, on February 8th, he should announce the lifting of the embargo on the import of hogs from the U.S.