Canada: Bite, Not Bark

From the tone of last spring's election campaign, U.S. investors in Canada were led to believe that the Liberals' Lester Pearson would provide a milder, more benign business climate than Conservative John Diefenbaker. But last week, when Pearson's new government presented its first budget to Parliament, it became clear that while Diefenbaker only barked about "Canadianization" of industry, "Mike" Pearson was going to bite. Items:

> Effective immediately on passage, any foreigner who makes a deal to buy a Canadian company must pay a prohibitive 30% "takeover" tax on the sale price....

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