Canadian Victory

Could the U.S. Department of Justice force Canadian companies to show their books for an antitrust law investigation? The Department thought it could, so long as it suspected them of being subsidiaries of U.S. concerns. Last March, when seven Canadian newsprint concerns refused to hand over their records, the Justice Department served their U.S. representatives with subpoenas. Cried many a Canadian: "A violation of sovereignty!"

The squabble grew so hot that in May Canada's embassy in Washington asked Secretary of State Marshall for assistance in preventing any undesirable interference with Canadian companies. Nevertheless, as late as Oct. 10 bumbling U.S. Attorney General Tom Clark was considering contempt proceedings. Asked for his reaction on such a step, Secretary Marshall pointed out that the affair has aroused "considerable concern" in Canada. That was enough for Clark. Instead of contempt crackdowns, he sent top Department officials to Ottawa to confer with Canadian newsprint interests.

Last week, the row collapsed in an exchange of U.S.-Canadian pleasantries as the subpoenas were withdrawn. Said Clark in a letter to Secretary Marshall: "The information supplied to our representatives at these meetings covered the immediate problems." In future, should similar problems arise, the Justice Department would consult first with the Canadian government. Washington called the outcome a draw, but to Ottawa it looked like a clear-cut victory.

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