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¥ e s FEBRuAR® 20 ited. Interest rates would go up as well, undoing the work of the ,_ _ Ontario Government when it first came into office and battled against high rates of interest in the Prov-- ince, he stressed. Quoting from a memorandum dated Feb. 9 of this year, Mr. Hep-- burn tabled correspondence which showed that up to recent months the Federal Government had no intention of invading this field. He declared that Ontario never would have entered into the Dominion-- Provincial tax agreement but for the repeated assurances of Finance Minister IIsley that the Dominion Government -- would. not-- interfere \with the administration of the | liquor laws of Ontario. y "Promises and Threats." Mr. Hepburn charged that On-- tario was induced by promises and various arguments and threats of double taxation to enter into this agreement whereby Ontario vacat-- ed the fields of income and corpor-- ation tax and the insurance act revenues. He quoted from a letter written by Mr. Iisley and dated Jan. 31, 1942, addressed to himsel{ One paragraph stressed by Mr. Hep-- burn read: "After consulting with my colleagues, I can advise you that the Government's position has not changed in this regard (liquo revenues), It is not the intention of the Dominion Government to enter the field of regulation of the sale of alcoholic beverages or to treat it as other than one belong-- ing entirely to the Province." Other Issue : to Deal With. The Opposition objected strenu-- ously to recessing the House for the reason given, that of facing revenue ! losses of unknown -- proportions through the Dominion Government's invasion of gasoline and liquor reve-- nue fields. There were many other matters awaiting action that did not require the Treasurer's figures, Col. Drew claimed. He mentioned, among them, education, especially R the admission to universities of aliens released from-- internment camps. Mr. Conant had said that through the revenue loss complained of On-- tario stood to lose $12,000,000 in in-- come in the next year unless reve-- nues were replenished from other sources. The Government had failed to ascertain what the position of Ottawa was on these lost revenues or what its intention was about making good the deficits. Ottawa had admitted the Province had a Jjust right to be recouped for these losses, but without any indication of its intentions it was impossible to prepare the Budget. The Domin-- ion Budget, he undersiood, would be brought down in a week or two, * by which time he hoped to know what Ontario's position was. If the lost revenues were not made -- good, Mr. Conant said, "I'm perfect-- ly frank to say the financial posi-- tion and autonomy of this Province is seriously threatened. If this is carried to extremes, even within j constitutional limits, the whole po-- § litical structure of this Province may and could be ruined." To bud-- s get for 1943--44 under such condi-- . tions, Mr. Hepburn said, "would be § assuming the role of a fortun». | teller."