For sometime past much activity has been evinced in the ultimate disposition of the Alaska Highway, particularly south of the border, and this activity has been greatly accelerated in recent months. As a result there has been some confusion of thought and a certain amount of distortion of facts concerning the same. Members of U. S. Senate committees, representatives of various Chambers of Commerce, airlines, automobile associations, transportation companies and others vitally interested in the subject have visited Whitehorse in recent months, and others are still doing so for the express purpose of securing at first-hand accurate data upon which to formulate their own decisions and
to utilize their influence accordingly.
Much of the discussion of late has been relative to the location of a route south of Whitehorse to connect with the Alaska Highway. This is a matter upon which a decision will have to be arrived at in the near future notwithstanding the conflicting opinions at present held concerning the same.
A siill more important matter, however, is the future of the Alaska Highway itself. This is of paramount importance. This is a matter in which both Canada and the United States are vitally interested involving as it does the question of defence which, is still, and will always remain, a matter of major importance notwithstanding what may be stated to the contrary. So far Canada has shown little or no disposition to furnish any definite information on the subject. What is transpiring behind the scenes at the present time is a closed book as far as the public are concerned.
Canada's Position
Under the terms of the original agreement the United States government has undertaken to hand over that portion of the Alaska Highway lying within Canadian borders six months after the end of the war. The exact date from which such period is to be computed has yet to be announced. What then happens? This remains to be seen. In the absence of any definite information speculation is thereby occasioning not a little confusion in the public mind.
Apparently the opnion is held generally throughout the United States that when the transfer of the highway has been made the Canadian government will be prepared to expend large amounts of money both for completion of its construction and for its future maintenance. There are those who think otherwise, and it must be confessed that it is more than likely that their contentions are based upon a more or less accurate knowledge of Canadian affairs and Canadian history.
Up to the present Canada has been considered, and in fact still is, a young country with a sparse population. Notwithstandiing that the area of Canada is over 600,000 square miles larger than the continental U. S., she has only a population of approximately 11,500,000 (1941) as compared with that of the great Republic to the south of 132,000,000 (1940) or thereabouts. Canada's total revenue in 1937 was approximately $455,000,000, and in 1941 roughly $872,000,000, whilst that of the U. S. A. in 1942 was approximately $22,300,000,000 and in 1943 $41,186,000,000.
Today, like all other members of the United Nations, Canada is faced with many major problems as a direct result of the war, which will entail a heavy drain upon her national revenue for some years to come. Due to their urgency these problems will, as a matter of course, have priority over all those of lesser importance no matter how essential these latter may appear to be. During the next few years much of our national
revenue will be devoted to war purposes, to donations made to devastated European countries and by way of long-term credits to enable them to rehabilitate themselves in the commercial world. In so doing Canada will likewise be afforded an opportunity to re-build and extend her export trade which is her veritable life blood.
In placing the cards on the table at this time and furnishing a few salient facts, we are motivated simply and solely with the object of presenting a true picture of Canada's present position, insofar as we are able to do so with the time and space at our disposal, for the benefit and edification of those not already conversant with the same. We have no other purpose to serve and certainly no ulterior motives to hide. We are convinced that the Alaska Highway must always be regarded as a very
important part of any defence scheme designed fo this continent and the best insurance against contingencies. We therefore stand ready to assist in any and every movement tending toward making the Alaska Highway a vital link, which is its destiny in the great chain of arterial highways which will one day traverse this whole continent.
A Little Debunking
It is frequently asserted that the construction of the Alaska Highway has cost one hundred million dollars to construct. This may be true in part, but like all half truths it almost invariably tends to create an erroneous impression in the public mind. Particularly does this seem to be the case concerning the "gift" of the highway to Canada. What are the salient facts in a nutshell? In the first place this highway was conceived and its construction later carried out by the U. S. War Department as an emergency defence
measure. Actual construction in the first instance was carried out by U. S. army engineers to be followed later by U. S. contractors and thousands of U. S. labourers all of whom
were transported north at U. S. government expense and from nearly all states in the Union. The rate of wages paid for such labour was far in excess of the Canadian scale prevailing at the time. Furthermore it should be remembered that a large part of the highway lies in Alaska and therefore within United States Territory. But undoubtedly the most important point to be emphasized is the fact that the major part of the total expense incurred has long since been returned to the United States and for all we know is still in circulation there. For obvious reasons we are unable to quote any figures to substantiate our contention but it is a fair assumption to suggest that in all probability not more than twenty per cent of the total cost of the undertaking remains in Canada. It may well be less.
These facts are cited in order to keep the records straight and more
particularly to refute any erroneous impression which may still prevail throughout the United States that the transfer of the highway to Canada, if such takes place, represents a gift valued at one hundred million dollars. As a matter of fact the undertaking, having been carried out by the U. S. government for war purposes, it is natural to assume that the cost of same will appear in the U. S. War Deparment as a necessary liability justifiably incurred in the circumstances and, as such, will be included in all its other war liabiliies to be written off eventually as the United States contribution toward
the cost of the war.
As Matters Now Stand
Reviewing the present situation in the light of what is above stated it
would seem to indicate that there is not much likelihood of Canada being in a position to make large expenditures upon the Alaska Highway for some time to come, due to her already heavy commitments. Under existing circumstances the maintenance of the highway is too great a financia! burden for Canada to assume and may be likened to presenting the White House to a man and expecting him to be able to operate it on an income of a few hundred dollars a month. It simply can't be done.
There is enother aspect of the matter which should not be overlooked. The history of Canada, like that of the United States, discloses that settlement and development of commerce in the early days originated on the Atlantic seabourd and for very obvious reasons. And even at this late date, as far as Canada is concerned, the east still dominates the west insofar as commerce and industry are concerned, much to the chagrin of all Westerners. In a nutshell this has been the industrial history af Canada up to and including the present time, a condition which recalls to mind a quotation from Rudyard Kipling: "Oh, East is East, and West is West, and never the twain shal] meet." Any apathy.
therefore, on the part of the Canadian government, if such there be, is no doubt due, at least in part, to this fact.
The Challenge
In the light of the above and the facts herein adduced, the most logical course to pursue regarding the Alaska Highway would appear to be for the government of the United States to secure a long-term lease of the same and then go ahead and complete and maintain the same with the proviso that citizens of both countries have equal rights and privileges over the same. Other details of such a lease could easily be mutually agreed upon.
There is evidence that overtures are now being made with a view to having the Alaska Highway placed wholly within United States territory. This it is proposed to accomplish by the transfer of certain U. S. territory adjacent to other parts of Canada in exchange for territory in British Columbia and the Yukon through which the highway runs.
This is neither necessary nor desirable. The construction of the highway in the first instance was undertaken and carried out by mutual agreement and we see no reason why its maintenance should not be upon a similar mutual arrangement. In any event it is obvious that the great majority of those traversing the Alaska Highway will be of United States citizenship. This would imply that the major part of the maintenance charge will devolve
upon the United States government as a matter of course as well as a matter of equity. It is on this assumption the suggestion is here, made of a lease in lieu of transfer of territory.
Here is a challenge to the business acumen of our good friends and
neighbours in the United States as well as to their most commendable Good Neighbour policy. It is put forward in good faith and in the belief that it is the most logical course to pursue, having due regard to the best interests of all concerned. It entails an expenditure of public funds which will be fully justified by reason of the great public service it can be made to render. Moreover there is no knowing how valuable the indirect benefits which will be derived in the operation of the highway in the years ahead. In the immediate future there is not a transportation company operating to or in the north which will not be directly benefitted. - H. E. M.
