CANADA HISTORY

The Ottawa Conference


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The role of the Governor General in Canada, particularly in the 1930s, and the economic and political dynamics of the time, are central to understanding the evolution of Canadian sovereignty and its place in the global economic order. The Earl of Bessborough (Vere Ponsonby) served as Governor General of Canada from 1931 to 1935, a time when Canada, like many other nations, was grappling with the effects of the Great Depression. His position and the Imperial Economic Conference, which he presided over, were deeply symbolic of Canada’s evolving relationship with both the British Empire and its powerful neighbor to the south, the United States.

The Role of the Governor General

In Canada, the Governor General represents the Crown—in this case, King George V, who was the reigning monarch. Although the King of the United Kingdom was not directly referred to as the King of Canada, his authority extended to the dominion, making him the head of state. The Governor General, as his representative, held a largely ceremonial but symbolically significant role, particularly during this period when Canada's political autonomy was slowly being cemented. At the time, Canada was still navigating its path toward full independence, having recently gained legislative sovereignty through the Statute of Westminster in 1931.

While Ottawa may not have had the same political cachet as London, it nonetheless functioned as a royal capital, with its ceremonial and political functions strongly influenced by British traditions. Rideau Hall, the official residence of the Governor General, served as a physical reminder of the close relationship between Canada and the British Crown. The Governor General’s duties—opening Parliament, granting royal assent to legislation, hosting receptions—were all critical in maintaining the connection between Canada and the monarchy. At official receptions, such as those hosted by Lord Bessborough, Canadian citizens were "presented" in the same manner as British subjects, reinforcing Canada’s place within the wider British Empire.

The Economic Landscape of the Time

By 1932, the Great Depression had gripped the world, and Canada was no exception. High unemployment, reduced agricultural production, and financial uncertainty characterized the economy. As the effects of the Depression spread, economic policies became a critical focus for both the Canadian government and the British Empire. The Imperial Economic Conference, convened in Ottawa in 1932, was designed to address some of the most pressing economic issues of the time, particularly the trade relationships between Britain and its Dominions.

The central issue, as described, was the imbalance in economic relationships between the Mother Country (Britain) and its Dominions, including Canada. Britain, a densely populated industrial powerhouse, faced massive unemployment due to the Depression, which had significantly slowed down manufacturing. Meanwhile, the Dominions like Canada, Australia, and New Zealand were primarily agricultural and resource-rich but lacked the industrial capacity of Britain. The imbalance led to an essential question: could the Dominions be persuaded to buy more British manufactured goods in exchange for Britain purchasing more raw materials and foodstuffs from the Dominions?

This issue was particularly pressing for Canada. Although Canada was part of the British Empire, its largest trading partner had become the United States, particularly in terms of manufactured goods. The proximity of the U.S. and the interwoven economies between the two North American neighbors meant that Canada naturally gravitated toward buying American products, including cars and industrial machinery. This made economic integration within the Empire difficult, despite the political and emotional ties that many Canadians felt toward Britain.

The Imperial Economic Conference of 1932

The Imperial Economic Conference, held in Ottawa, sought to address this challenge. It was one of the most significant international meetings held in Canada up to that point and underscored Canada's growing role on the global stage. Presided over by Lord Bessborough, the conference aimed to restructure economic ties within the Empire. Britain hoped that the Dominions would commit to buying more British goods, thus helping to alleviate Britain’s economic woes, while the Dominions sought assurances that Britain would, in turn, purchase more of their agricultural and raw material exports.

The idea of an imperial preference system, whereby the Dominions and Britain would prioritize trade with each other, was heavily debated. This system was seen as a potential solution to the economic problems facing the Empire, but it faced significant challenges. For Canada, aligning too closely with Britain economically meant risking its prosperous trade relationships with the United States, which had long been its most important trading partner.

At the same time, the United States was dealing with its own economic crisis and had implemented protectionist measures, most notably the Smoot-Hawley Tariff Act of 1930, which increased duties on many imported goods. These tariffs affected Canada, making it harder to export goods to the U.S. while reinforcing the importance of exploring other trade partnerships, including within the British Empire.

Despite the efforts made at the conference, the outcomes were mixed. While the idea of imperial preference gained some traction, it was not enough to fundamentally shift Canada’s trade away from the United States. However, the conference was crucial in reinforcing Canada’s role as a leader within the British Empire, solidifying its place in global economic discussions and marking a significant moment in the country’s economic history.

The Legacy of Lord Bessborough’s Tenure

Lord Bessborough’s tenure as Governor General is significant not only for his role in the Imperial Economic Conference but also for the broader context of his time in office. As a figure with deep ties to the business world—having chaired Unilever, De Beers, and various other corporate entities—Bessborough symbolized the intersection of economic and political interests during the Depression. His presence as Governor General during a time of economic crisis emphasized the importance of maintaining stable relationships between Canada and Britain while also navigating the economic complexities of the 1930s.

Bessborough’s term also highlighted the evolving nature of the Governor General’s role in Canadian politics. While still a representative of the Crown, the Governor General’s influence over day-to-day governance was diminishing as Canada took greater control over its internal affairs. The Statute of Westminster had recently confirmed Canada’s legislative independence, meaning that while Bessborough held a prestigious ceremonial position, his power was increasingly limited to symbolic functions.

Nonetheless, the symbolism of the Governor General remained important. As Canada continued to define its identity, the role of the Crown and its representatives provided a sense of continuity and connection to Britain, particularly in moments of crisis. The Ottawa Conference, presided over by Lord Bessborough, was one such moment, and it underscored Canada’s significance within the British Empire.

Relevance to Canadian History

The Imperial Economic Conference of 1932, and the tenure of Lord Bessborough as Governor General, are important moments in Canadian history. They illustrate the economic and political dilemmas faced by Canada as it navigated its relationship with Britain while managing its own interests in the face of the Great Depression. The conference also reflects the broader shift in Canada's international identity, from being a junior partner in the Empire to becoming a more independent nation with its own foreign and economic policies.

As Canada moved toward full legislative independence, these moments of imperial cooperation became increasingly significant, as they represented Canada’s ongoing participation in the global economic and political systems while negotiating its path to full sovereignty. The Ottawa Conference, therefore, was not only a response to the immediate crisis of the Great Depression but also a key event in Canada's broader trajectory toward economic and political autonomy.

In conclusion, the period of Lord Bessborough’s governorship and the Imperial Economic Conference were both pivotal in shaping Canada's future as an independent nation. They highlight the complexities of Canada’s economic choices, its evolving relationship with Britain, and the growing importance of Canadian-American relations. Ultimately, this chapter of Canadian history reflects the broader global struggles of the 1930s and the role that Canada played within the changing British Empire.

There is the U.S.'s sky-high Hawley-Smoot Tariff, to the enactment of which Canada retorted with retaliatory tariffs (TIME, Sept. 29, 1930). Already this mischief, furthered by Depression, has gone so far that U. S. exports to Canada have fallen thus:

1929 $948,446,000

1930 $ 659,094,000

1931 $395.648,000

1932 (1st quarter) $78,232,000

Simultaneously Canadian exports to the U. S. have fallen thus:

1929 $503,496,000

1930 $402,350,000

1931 $266,297,000

1932 (1st quarter) 48,478,000

To put it baldly the two "best customers" have been growing steadily worse. Result: a degree of Canadian irritation at the U. S. (shared by other Dominions) which is favorable to success for the Imperial Economic Conference.

Cross Currents. Why should Canadians buy either English or U. S. motor cars when they can buy such things as Mc-Laughlin-Buicks built in Canada by the Dominion affiliate of General Motors? Why should Australia buy British steel when she has expensively erected a mighty steel plant to fabricate her Sydney "Dream Bridge," now complete (TIME, March 28).

And why should the Mother Country antagonize so huge a buyer of her manufactured goods as Argentina by agreeing to buy Canadian in preference to Argentine beef? The King's subjects have invested over $1,500,000.000 in Argentina. Dare they antagonize that Latin American government? Dare they risk reprisals which could be launched against $1.500.000,000 of British property actually in Argentina? And what about Brazil? What about the Earl of Bessborough's own coffee-carrying railway in that South American state?

Multiplied by myriads such perplexing trade factors as these will give the Imperial Economic Conference plenty of hard, sweating, secret work. Secrets & Farmers. That the Conference proceedings will be as secret as British ingenuity can make them was frankly stated by the Canadian Government last week. Rich & pious Canadian Premier Richard Bedford Bennett based this course upon the precedent set and stated by the Imperial Conference of 1923. "that at meetings of this nature, where questions of high policy and of the greatest consequence to all parts of the British Commonwealth are surveyed and dealt with, it was of the first importance that the representatives present should feel able to speak among themselves with the utmost freedom and in a spirit of complete confidence."

Days before the Conference met last week, Ottawa swarmed with lobbyists and dickerers from all parts of the Empire and the world. Some 5,000 farmers from Ontario and Quebec were marching upon Ottawa. They proposed to meet in monster caucus, formulate demands for measures to enhance crop prices, present these demands to the Conference.

Conference Agenda. Canadian Premier Bennett, a Conservative closely allied with Conservatives of maximum wealth in Great Britain, was personally responsible for bringing to Canada his Big-Business friend the Earl of Bessborough as Governor General. Lord Bessborough is the first vice-regal occupant of Rideau Hall to have been chosen by George V on the advice of a Canadian premier. He is the fourth Irish peer to be Canada's Governor General. As a businessman Lord Bessborough was said last week to have collaborated in drafting the "Provisional Agenda" which Premier Bennett made ready for the Conference after consulting all His Majesty's governments in all parts of the British Commonwealth.

The agenda heads are:

"A. — General Trade Questions.

"1) Examination of aspects of general trade and tariff policy and administration affecting Empire trade. . . .

"2) Commercial treaty policy with respect to foreign nations. . . .

"3) Consideration of the appropriate means of effecting inter-imperial economic cooperation. . . .

"B. — Monetary and Financial Questions.

"Consideration of existing interrelationships of the various currencies and monetary standards of the Empire and of the desirability and feasibility of taking steps to restore and stabilize the general price level and to establish exchange.

"C. — Negotiation of Trade Agreements."

Aquatic Conferences. After crossing the Atlantic last week, delegations representing 1) His Majesty's Government in Great Britain, Northern Ireland & the non-self-governing parts of the Empire (India, Colonies, Protectorates, Mandates); 2) His Majesty's Government in South Africa landed at Quebec; 3) His Majesty's Government in the Irish Free State landed at Montreal. The delegation of 4) His Majesty's Government in Newfoundland came by coastal steamer. After crossing the Pacific, delegations representing 5) His Majesty's Government in Australia and 6) His Majesty's Government in New Zealand landed at Vancouver.

Naturally the No. 1 delegation is paramount, representing 430,000,000 people out of the total Empire population of 450,-000,000. The No. 1 delegation is headed by Lord President of the Council the Rt. Hon. Stanley Baldwin, Leader of the Conservative (majority) Party in Great Britain. With benign, bumbling, pipe-puffing Mr. Baldwin came lean, hawk-nosed Chancellor of the Exchequer Neville Chamberlain; dignified President of the Board of Trade Walter Runciman whose batwing tie is always straight; undignified Minister of Dominions James Henry ("Jim") Thomas who drops his h's; other delegates, secretaries, stenographers to the number of 130. Prime Minister James Ramsay MacDonald's younger son, tooth-brush-mustached Malcolm MacDonald, came as the delegation's press contact man.

On both oceans and on various liners the delegations held aquatic conferences last week, preserving the tradition of secrecy. First chief delegates to land (at Vancouver with a total of 60 persons, some representing the Fiji Islands) were former Premiers Joseph Gordon Coates of New Zealand and Stanley Melbourne Bruce of Australia. Cocky Australian henchmen embarrassed their rich, cultured, suave Mr. Bruce by crowing, "You can take it this will be a Bruce show!"

"Canada is 35 times as large as New Zealand," said New Zealand's Coates. "and let us hope her heart is proportionately generous." His Majesty's Lieu-enant-Governor of the Province of British Columbia, plump, guttural J. W. Fordham Johnson, sped the delegates to their train for Ottawa. Croaked he: "Anything short of success at this Conference might well have unthinkable results!"

Next chief delegate to land (at Montreal) was Vice President Sean Thomas O'Kelly of the Irish Free State. Bristling, he told Canadian newshawks that, in view of the Free State's present quarrel with the Mother Country, his delegation had no hope of reaching an accord with the No. 11Delegation at Ottawa but hopes to sign accords with the dominions.

The Nos. 1 and 2 Delegations & passengers aboard the Empress of Britain did not panic when a fire broke out while Chief Delegate Stanley Baldwin was appealing for contributions to the Seamen's Orphanage Fund. ''That ends the program," said Mr. Baldwin serenely when the flames leaped, to be quickly quenched by extinguishers.

Ten hours later the Empress of Britain was in exciting collision with the Briarwood, freighter, but no great damage was done and the Empress docked at Quebec only eleven hours late. Right royally welcomed and lustily cheered the Delegations entrained for Ottawa.

In Ottawa tart-tongued John Bromley, Council chairman of the Trades Union Congress of Great Britain (representing 3,700.000 workers), sounded off before the official Delegations arrived: "Why not set up a permanent secretariat to continue into the future what few tottering steps this Conference may take?" "Disillusion Must Result." Exuberant over the prospects at Ottawa seemed Britain's "Press lords," Baron Beaverbrook and Viscount Rothermere, whose Hearstian papers have a joint circulation of 10,000,000 in the British Isles and who have plugged blatantly for years in favor of something called "Empire Free Trade." Serenely last week Sir Arthur Salter, British economist famed in the U. S. for his scholarly best seller Recovery—The Second Effort ($3), observed: "The misleading phrase 'Empire Free Trade' has caused much confusion in the English public mind. . . .

"Too many Englishmen, though not of course those in closest touch with the situation, think that the basis of negotiations [at Ottawa] will be a free entry for Dominion food and raw materials into the United Kingdom (with tariffs against foreign countries) in return for a similar free entry of English manufactures into the Dominions. This, of course, is a complete illusion. Canada, Australia, South Africa and India, especially the first, have all become largely industrialized on the basis of tariffs, and they have no intention whatever of allowing effective English competition with their industries. . . . "Disillusion must result."

Sentiment is after all the chief tie which still unites the nations of the British Commonwealth. Soon after he stepped upon Canadian soil Lord Bessborough struck the note that must and will be sounded again & again during the Imperial Economic Conference. "I feel," said His Excellency, "that our interests are being more closely linked day by day." This sentiment may surmount Irish hatred, Indian passive resistance and Dutch-begotten South African suspicion of the Mother Country.

Ottawa, at the very least, will present a Royal pageant: the Governor General in his twinkling car (with a gilt crown, in lieu of license plates, projecting from the roof in front) sweeping up Parliament Hill; the blare of trumpets, salutes and the opening of the Conference by His Excellency in the Parliament Building; the singing of "God Save the King"; state dinners at Rideau Hall, informal dances at the Royal Ottawa Golf Club and Their Excellencies' Garden Party—all these will suggest the pomp of London (pop. 8,000,000) in Ottawa (pop. 125,000).


Cite Article : www.canadahistory.com/sections/documents



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