Armament > National supervision of the manufacture of and trade in arms

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the question of trade in arms, ammunition and implements of war — namely, Section 290 of the
Customs Act has been amended at the last session of Parliament to authorise the taking of
all the measures contemplated by the Special Committee of the Disarmament Conference. The
section as amended provides as follows :
“ Section two-hundred-and-ninety of the said Act is repealed, and the following
substituted therefor :
“ 290. (1) The Governor in Council may, from time to time :
“ (a) For the purpose of acquiring information, or for the purposes of paragraphs
(b) and (c) of this sub-section, require that no person shall export or carry coastwise
or by inland navigation any of the articles designated in the said paragraph (b), or import
any of the articles designated in the said paragraph (c), without first having obtained
a permit, and prescribe such fees, regulations and conditions as may be deemed proper
respecting the granting of such permits ;
“ (b) Prohibit, restrict or control the exportation, generally or to any destination,
directly or indirectly, or the carrying coastwise or by inland navigation, of arms,
ammunition, implements or munitions of war, military, naval or air stores, or any articles
* deemed capable of being converted thereinto or made useful in the production thereof,
or provisions or any sort of victual which may be used as food by man or beast ,
“ (c) Prohibit, restrict or control the importation of arms, ammunition, implements
or munitions of war, military, naval or air stores, or any articles deemed capable of being
converted thereinto or made useful in the production thereof ;
“ (d) Provide for the registration or licensing of persons engaged in the business
of manufacturing, exporting or importing arms, ammunition or implements of war,
and prescribe fees, regulations, conditions and exceptions in respect thereof ,
“ (e) Provide for the compilation and publication of information and statistics
respecting the exportation, importation or manufacture of arms, ammunition or
implements of war ;
“ (f) Make regulations or prescribe conditions or exceptions deemed necessary
for the effective carrying-out of the object and intention of this section of any prohibition,
restriction or control of exportations or importations which may be imposed under this
section, including regulations, conditions or exceptions respecting re-exportations,
transhipments, or shipments in transit, whether within Canada or elsewhere. Such
regulations shall, when made, have the force and effect of law as though enacted as a
part of this statute, and shall be published in the Canada Gazette.
“ (2) Any goods imported or exported contrary to the provisions of this section or of
any Order of the Governor in Council hereunder or regulation established thereunder shall
be seized and forfeited ; and any person importing or exporting the same or causing or
permitting them to be imported or exported shall be guilty of an offence and for each such
offence be liable on summary conviction before two justices of the peace to a penalty not
exceeding two hundred dollars and not less than fifty dollars, or to imprisonment for a term
not exceeding one year and not less than one month or to both fine and imprisonment. If
the value of such goods is two hundred dollars or over, the person so offending shall be fF^fty
of an indictable offence and be liable on conviction, in addition to any other penalty to which
he is subject for such offence, to a penalty not exceeding ten thousand dollars and not less
than two hundred dollars, or to imprisonment for a term not exceeding four years and not
less than one year or to both fine and imprisonment.”
Under the authority of this section, an Order-in-Council was passed on July 30th, a copy of
which is attached, placing the trade in arms, ammunition and implements of war under a licensing
system. On the same day, an Order-in-Council was passed prohibiting the exportation directly
or indirectly of arms, munitions and implements of war to Spain. _
It may be added that an armament industry can scarcely be said to exist at all m Canada
and it has not been deemed worth while to institute the registration of Canadian firms engaged
in the manufacture of arms, etc., nor the compilation and publication of statistics respecting
manufacture. There is, of course, no objection, in principle, to such a step being taken, particularly
as it is assumed that it would be contingent on similar action being taken by the principal Powers.
(Signed) H. H. Wrong.
Annex.
P.C.1838.
At the Government House at Ottawa, Friday, the 3°th day of July, 1937-
PRESENT :
The Deputy of His Excellency the Governor-General in Council:
Whereas it is considered desirable that steps should be taken to provide for control of the
exportation from Canada to any destination of arms, ammunition, implements or munitions ot