Brewery Ban

On the desk of Maryland's Governor Theodore McKeldin last week lay a state paper that could have explosive effects on economic relations between the U.S. and Canada. The paper is senate bill 38, passed recently by the general assembly, to bar any foreign-owned brewery from operating in Maryland. The measure is aimed squarely at the Canadian-owned Carling Brewing Co. Inc., and needs only Governor McKeldin's signature to become law.

Six Maryland breweries lobbied the bill through both houses soon after Carling announced plans to build a $12 million brewery near Halethorpe. Md. Carling officials were more irritated than worried by the bill; they can build in nearby states and truck their beer into Maryland. But the U.S. State Department was understandably disturbed about the measure. U.S. investors have a $9 billion stake in Canada and could be hard hit if any Canadian legislature retaliated against U.S. firms. The Department got off a strong letter to Governor McKeldin urging him to "give appropriate consideration" i.e., veto bill 38, and warning that "an unfriendly attitude toward Canadian investments in the U.S. could easily stimulate . . . hostility toward American enterprises in Canada."

Since the bill had passed the house with an 83-34 majority and the senate by a convincing 22-4 vote, it was expected at first that Governor McKeldin would sign it. But last week Republican McKeldin, a backer of President Eisenhower's freetrade policies, ordered new hearings on bill 38. He has until April 6 to decide.

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