In a gloomy basement room in Ottawa's Parliament Building, the House of Commons External Affairs Committee gathered one day last week to probe into a contentious affair: Why had the Canadian government abruptly canceled plans to rent space for its various agencies in Canada House, the 26-story skyscraper now abuilding on Manhattan's Fifth Avenue, which was to be a Canadian business and cultural center in New York? In their digging the M.P.s encountered a genuine shock, involving another logical Canada House tenant: the prestigious, 1,600-member Canadian Club of New York.
On the witness stand was Ray Lawson, 71, who...