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Ottawa / 12:42 p.m., EDT

For a few moments after the first outburst, there was silence in the Cabinet chamber. Then bedlam broke loose. Everyone was talking at once.

The Prime Minister sat, oblivious to the noise around him, rapidly making notes. Abruptly he got up and left the room, followed by Senator Thomas. Cries of “Give him hell, Bob” and “Don’t submit to blackmail” followed him as he went out the door.

As he reached the Conference room, he was met by Tom Scott, who reported that everything was set. The conference table had been moved toward one end of the room opposite the TV camera and a chair placed behind it so the Prime Minister would be facing the camera with a panelled wall as background.

The producer, Al Price, who had covered many of the Prime Minister’s speeches, was well known to Porter. They exchanged greetings.

Price said, “Would you sit over here, sir? We’ve got the camera set up to cover you face on. You can put your notes on the table in front of you.” He led the Prime Minister around behind the long conference table and slipped a neck microphone over his head. Porter sat down and glanced at his notes.

“How much time do we have?”

“You’re on in thirty seconds, sir.”

The cameraman and the other two crewmen, who had been muttering among themselves, quieted down. The Prime Minister took off his glasses, and with an automatic motion put them in his left shirt pocket. He sat up a little straighter and looked the camera in the eye. He was ready.

Al Price held up his outspread hand. “Five seconds.” At the final cue, he pointed to the Prime Minister.

“The President of the United States has just informed the American people — and those in Canada who were able to see or hear him — of the ultimatum which he presented to me and the government of Canada this morning.

“Originally I had planned to speak with you this evening at nine o’clock. I still intend to do so, because by that time the situation will be much clearer and the steps taken by your government to meet this crisis will be firmly established. However, when I learned that the President was going to address the American nation at this time, I felt it appropriate to follow his statement with one of my own.

“As the President pointed out, the people of the United States are indeed caught in a severe energy crisis. Some years ago it became apparent that because of bad planning, or failure to provide for future energy needs, heavy shortages of oil, natural gas and electricity were about to occur. The first serious shortage was felt in the winter of 1972, when some factories, schools, and other institutions in various parts of the United States were shut down because of lack of fuel. You are all aware, I am sure, of the continuing problems which have increased since that time, of electrical “brown-outs,” of gasoline rationing and of shortages of heating fuels, which have occurred regularly, winter and summer, since that time. During this period two things have happened: First, the population of the United States has grown rapidly over the last decade from 209-million to about 229-million this year, an increase almost equivalent to Canada’s entire present population. In other words, the energy needs of the United States at this time is at least equal to its 1970 needs plus the entire energy requirements of Canada.

“During this time, the United States has continued to expand its industrial and manufacturing capacity without restraint, thereby further increasing its insatiable demand for energy.

“The United States moved as quickly as it could to overcome the energy crisis. It was successful in increasing its supply of crude oil but not in obtaining additional natural gas. That is the reason why the United States is much more concerned about getting its hands on Canada’s natural gas resources than on the crude oil reserves that have also been found in the Mackenzie Delta and in our Arctic Islands.

“The Americans have been able to keep up with their oil demands as they have risen because they have been able to purchase crude oil from various places in the world such as Venezuela, Algeria and the Middle East, and to transport it in the fleet of oil tankers which they began to build in the 60’s.

“The situation regarding natural gas is more complicated. The background is simply this: Natural gas represents a little over 30 per cent of the energy consumed by the United States on an annual basis. At the beginning of this decade, there was a shortage of natural gas amounting to 900-billion cubic feet per year. Today the figure is more than two and a half times that amount.

“The world appears to have adequate reserves of natural gas available, and the problem facing the Americans is not that there is a short supply but that there is no adequate transportation system in existence which can carry the natural gas to the United States from overseas.

“Tankers of the kind necessary to transport natural gas are still in very short supply. The gas must be cooled to the point at which it becomes liquid (–260°F), and it must be kept at that intense cold in special uncontaminated containers during transportation. The tankers required to carry liquid natural gas did not even exist a decade ago, and though the Americans and Japanese are building them as quickly as they can, there are still very few in operation. The Americans have twenty, but they could use a hundred.

“In the light of this situation, the United States has no choice but to make every effort to gain immediate access to the reserves in the Mackenzie Delta and the Arctic Islands, where it is possible to transport the gas by pipeline or the special airlift tankers to which the President referred.

“Let me say to all Canadians and to every American that I have great sympathy for the dilemma in which the President finds himself and for the American people.

“When I came to the office of Prime Minister only seven weeks ago, I took on the legacy of action or inaction of all my predecessors of whatever party. I fault none of them. On the other hand, there is little doubt that the President is quite correct when he complains of the inaction of the Canadian bureaucracy. That bureaucracy is the product of a system which has given the country great stability and has permitted the various government departments to function effectively despite frequent political shifts. But inevitably over the years the system has become excessively rigid. It has failed to keep pace with the changing times. I’ve proposed to make a number of reforms in this area, but that is a matter for discussion on another occasion.

“The point is this. Canada must accept some of the blame for the failure of which we stand accused by the President. We have been negligent in dealing with our native people. It is perfectly clear that they have a moral right to share in the returns from the resources of their lands, and we should have dealt with them long ago. And we did, in fact, fail to make an arrangement with the Americans to give them access to the Canadian Arctic Islands gas. In part, this was due to a natural concern that our own requirements should be taken into consideration, but in part it was also a failure to come to grips with what was obviously an emergency situation. The President is right. Canada is largely to blame.

“But having conceded this, the question remains: Is the President justified in suddenly giving Canada an ultimatum and enforcing that ultimatum by economic reprisals even before the deadline? This question is of major concern to me. I do not propose to attempt to answer it at this time, but I will do so when the House of Commons meets in emergency session tomorrow.”

The Prime Minister then outlined the steps which had already been taken to recall Parliament, to consult with the provincial premiers, and to brief the members of the Senate and the House of Commons prior to the emergency sitting of the House the following afternoon. Then he continued.

“There is no doubt that this is the most difficult and important crisis Canada has ever faced. What the outcome will be I cannot predict, but I am most anxious that the Canadian people remain calm, that there should be no panic, and that there should be no reaction of an anti-American nature. Any acts of physical retaliation against any United States citizen in Canada would cause irreparable damage to our already-delicate position in relation to the United States.

“I ask every journalist, editor and copy writer to maintain a high calibre of responsible, factual reporting of the news and to refrain from any kind of comment which might inflame emotions.

“This is a time when the nation and its leaders should abandon partisan positions or regional attitudes, so that we can all reply to the United States with one voice.

“This crisis demands of all of us courage, strength, and patriotism. I am sure the Canadian people will respond.”

The Prime Minister then spoke in French, covering the same ground. Finally he said, “I have asked the radio and television networks to permit me to speak with you again tonight at nine o’clock. At that time I will review the situation as it then exists.

“Thank you.”