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Canada (3)
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Canada (3)
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Presidential Country Files for Europe and Canada (Ford Administration)
Europe and Canada Country Files
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Environmental protection
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The original documents are located in Box 2, folder "Canada (3)" of the National Security
Advisor. Presidential Country Files for Europe and Canada, 1974-77 at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford. donated to the
United States of America his copyrights in all of his unpublished writings in National Archives
collections. Works prepared by U.S. Government employees as part of their official duties are in
the public domain. The copyrights to materials written by other individuals or organizations are
presumed to remain with them. If you think any of the information displayed in the PDF is subject
to a valid copyright claim, please contact the Gerald R. Ford Presidential Library.
MEMORANDUM
no "Action
IA
NATIONAL SECURITY COUNCIL
ACTION
necessary
CONFIDENTIAL/SENSITIVE
November 26, 1974
MEMORANDUM FOR GENERAL SCOWCROFT
FROM:
A. Denis Clift in
11-29-11
SUBJECT:
Your Meeting with Ambassador Cadieux,
Wednesday, November 27, 1974, 4 p.m.
The Canadian Ambassador will, in all probability, wish to review with
you the planning for Prime Minister Trudeau's visit to Washington on
December 4, 1974. There are several points he may raise: current
Canadian concern over the brevity of the visit, the question mark relating
to Trudeau's December 4 nighttime residence in Washington, the agenda
for Trudeau's talks with the President, participants in the head-to-head
talks, and plans for the December 4 dinner. Additionally, he may note
in passing that he has been unable, despite his repeated efforts, to receive
an appointment with Don Rumsfeld.
Brevity of Visit
You have my memorandum of November 20 (copy at Tab A) which forwarded
an agency report from Ottawa covering Trudeau's complaint over the brevity
of his visit to Washington. A December 4, one-day-only schedule was
worked out initially with full agreement on the part of the Canadians (as you
know, Prime Minister's wife has been under great nervous stress because
of the pressures of her official responsibilities; it was, in part, for this
reason that the Canadian side liked the idea of a one day working visit
with the Prime Minister returning to Ottawa on the night of December 4.
Two factors have changed this situation:
(1) Trudeau has decided he wants to talk to the press in Washington
on the morning of December 5 before returning to Canada that afternoon,
and Senator Mathias is arranging a Congressional breakfast for him (we
believe at 9 a. m. ) on the morning of December 5.
(2) The Prime Minister is distressed over the fact that Helmut
Schmidt arrives in town on December 4 and moves into Blair House that
night on the eve of his December 5-6 official visit.
FORD
DECLARGIFIED
CONFIDENTIAL/SENSITIVE
E.O. 12958, SEC. 3.5
NSC MEMO, 11/34/08, STATE DEPT. GUIDELINES
BY GG
GERALD
LIBRARY
, NARA, DATE 10/15/01
CONFIDENTIAL/SENSITIVE
- 2 -
In my memorandum of November 20 I recommended that either you or
Secretary Kissinger call Ivan Head to defuse the grumblings in Ottawa
by underlining that the President is looking forward with great pleasure
to his meeting with the Prime Minister and, as indicated by its inclusion
in the crowded 1974 schedule, he attaches great importance to the visit.
I think you should make this point to Ambassador Cadieux.
Trudeau's Overnight Washington Residence
As the Prime Minister has decided to overnight in Washington, and as the
Blair House bed will be occupied by Schmidt, we are faced with the problem
of where Trudeau will stay. The Canadian Embassy presently has
reservations at the Madison Hotel. However, this might be a growing item
of distress for the Canadians -- again, bearing in mind that the German
Chancellor will be in Blair House -- and Cadieux may ask you if there is
not another suitable official residence.
State's Office of Protocol is unable to identify a suitable alternative.
With this the case, Art Hartman and I believe that the President may wish
to offer the Prime Minister a room in the White House for the night. There
are several arguments for doing this:
It will be wholly pleasing to the Prime Minister, and will be a gesture
of US-Canadian friendship that will be well reported in the press on both
sides of the border.
The Canadian press, in particular, is likely to develop an adverse
story if Trudeau ends up having to book into a hotel while Schmidt is in
Blair House.
Logistically, it should not be too complicated since Trudeau will not
be accompanied by his wife.
As Trudeau has an official breakfast with Members of Congress on
December 5 he will be up and out early, and the President's gesture should
be well received by Members of Congress.
FOND
The arguments against offering the White House room, as I see them, are:
&
GERALD
LIBRARY
--It may be seen as precedent setting (I think this need not be the case,
especially since Schmidt is occupying the official residence and, the Press
Secretary can note if asked, that the President is consulting with a large
number of Western leaders and that with the closeness of these two visits
he invited the Canadian Prime Minister to be his guest for the evening at
the White House.).
CONFIDENTIAL/SENSITIVE
CONFIDENTIAL/SENSITIVE
- 3 -
If you agree that the pros outweigh the cons, I recommend that you seek
a Presidential decision on inviting Trudeau to spend the night of December 4
in the White House.
Meeting Participants
State has been informed that Trudeau wishes to be accompanied by a
minimum of three officials during his meeting with the President on the
afternoon of December 4 (presumably Minister for External Affairs
MacEachen, Special Assistant Ivan Head and Ambassador Cadieux).
Cadieux may raise this with you. It would seem to me that President
Ford and Secretary Kissinger might wish to keep the numbers down to
a maximum of three on a side. (If Cadieux participates, U.S. Ambassador
Porter will expect to participate.)
Agenda
Cadieux will probably ask if the President has a preferred set of agenda
items for the meeting. Secretary Kissinger has approved the memorandum
at Tab C as basic guidance for the meeting. I believe the key points to be
made are:
-the meeting will permit the opportunity for a general review, in
keeping with the President's desire for consultations.
--the review will include the present status of our bilateral relationship,
the Atlantic Alliance, international economic and energy matters.
--any other international issues of common interest -- e.g., East-West
relations, the Middle East.
Dinner Participants
It is my understanding that invitations for the December 4 dinner have been
sent based on the guest list at Tab B. State informs me that Trudeau may
have four Assistant Deputy Ministers (from the Departments of Agriculture;
Finance; Mines, Energy and Resources; and Trade, Industry and Commerce)
with him on the trip for briefing purposes. Cadieux may inform you of
this and note that while they will not expect to participate in the head-to-head
talks, they would like to attend the dinner.
FORD
?
CONFIDENTIAL/SENSITIVE
GERALD
LIBRARY
CONFIDENTIAL/SENSITIVE
- 4 -
RECOMMENDATION
Prior to your meeting with Cadieux, that you explore the possibility
of having the Canadian Prime Minister stay at the White House on the
night of December 4, 1974.
APPROVE
DISAPPROVE
CONFIDENTIAL/SENSITIVE
FORD & LIBRARY GERALD
FORD
GERALD 4
LIBRARY
5659X
CONFIDENTIAL/SENSITIVE
ACTION
November 20, 1974
MEMORANDUM FOR SECRETARY KISSINGER
FROM:
A. Denis Clift
SUBJECT:
Trudeau Visit
There are indications from Ottawa (see message at Tab A) that at least
some members of the Canadian Government are unhappy over the brevity
of the Trudeau visit to Washington. I see no need to trouble the President
with this now; however, I will include appropriate background and talking
points when preparing the talker for the visit.
As you will recall, the December 4, one-day-visit arrangements are the
result of the lengthy back and forth between Washington and Ottawa when
we were searching for a mutually acceptable date. More than one US-
proposed date was turned down by the Canadians because it did not fit in
with the Prime Minister's schedule. At the same time, both sides agreed
on the desirability of a US-Canadian meeting before the end of the year,
and December 4 eventually was chosen.
I believe that one of the reasons for the reported Canadian grousing is that
Trudeau will not be able to stay in Blair House on the night of December 4,
as Chancellor Helmut Schmidt will be arriving for his visit beginning
December 5. As I recall, the Canadians initially indicated that Trudeau
planned to return to Ottawa the night of December 4 following his dinner
with the President. Since then the Prime Minister has decided he wants
to meet with the Press Corps here on the morning of December 5 before
returning to Ottawa. These developments, to my mind raise two considera-
tions:
1. You may wish to give Ivan Head a call to note your concern over
these apparent expressions of dissatisfaction emanating from Ottawa to
review the scheduling difficulties which eventually resulted in the December
4 date and to underline that the President is looking forward with great
pleasure to his meeting with the Prime Minister and attaches importance
to that meeting. Alternatively General Scowcroft could place this call.
FORD
.
CONFIDENTIAL/SENSITIVE
(GDS)
GERALD
LIBHARY
GG 10/15/01
CONFIDENTIAL/SENSITIVE
2
2. We may risk an unnecessary protocol slight to Trudeau if on
December 4 the flag crews bedeck the streets of Washington with FRG
flags. Despite the extra effort required I think correct protocol would
have the Canadian flags out on December 4, to be replaced by the FRG
flags on the night of December 4. I recommend that Jeanne Davis pursue
this with State Protocol.
RECOMMENDATION
1. That either you or General Scowcroft call Ivan Head to discuss the
Trudeau visit, as outlined above.
2. That Jeanne Davis review the Canadian and FRG flag problem with
State Protocol.
APPROVE
DISAPPROVE
ADClift:gw:11/20/74
FORD
a
GERALD
LIBHARY
CONFIDENTIAL/SENSITIVE
(GDS)
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
Presidential Libraries Withdrawal Sheet
WITHDRAWAL ID 014128
REASON FOR WITHDRAWAL
National security restriction
TYPE OF MATERIAL
Telegram
RECEIVER'S NAME
Mr. Fazio
RECEIVER'S TITLE
White House Siutation Room
TITLE
Canadians Express Unhappiness Over
Shortness of Trudeau's Washington Visit
CREATION DATE
11/20/1974
VOLUME
1 page
COLLECTION/SERIES/FOLDER ID
032500032
COLLECTION TITLE
NATIONAL SECURITY ADVISER. PRESIDENTIAL
COUNTRY FILES FOR EUROPE AND CANADA
BOX NUMBER
2
FOLDER TITLE
Canada (3)
DATE WITHDRAWN
10/16/2001
WITHDRAWING ARCHIVIST
GG
Sanitzal 4/11/05
Approved For Release 2005/04/11 : NLF-PC E C-2-3-1-3
812
N F I D N I ****** COPY
(1
OP IMMED
1
DE
D 2317542 NOV 74 ZYH
TO WHITE HOUSE//SITUATION ROOM FOR MR FAZIO
C 0 N F I D E N T I A
25X1
WARNING NOTICE SENSITIVE INTELLIGENCE SOURCES AND METHODS
INVOLVED
ITEM NO: WH-2
DATE: 23 NOVEMBER 1974
SUBJECT: CANADIANS EXPRESS UNHAPPINESS OVER SHORTNESS OF
TRUDEAUTS WASHINGTON VISIT
REF
: OTTAWA 3752, 192116Z NOV 74, CONF
CANADIAN PRIME MINISTER TRUDEAU IS REPORTED TO HAVE COMPLAINED
OPENLY TO A GROUP OF VISITING us EDITORS AND CORRESPONDENTS ABOUT
THE SHORTNESS OF HIS FORTHCOMING ONE-DAY VISIT WITH PRESIDENT
FORD. THE PRIME MINISTER WAS SAID TO HAVE COMMENTED THAT NOT MUCH
COULD ee ACCOMPLISHED IN A "COUPLE OF HOURS." CANADIAN OFFICIALS
ALSO DID NOT HIDE THE FACT THAT THEY WERE "UNHAPPY" BECAUSE
TRUDEAU'S VISIT COINCIDED WITH THE ARRIVAL OF WEST GERMAN CHANCELLOR:
SCHMIDT IN WASHINGTON.
THE CANADIANS ARE UNLIKELY TO TRY TO CONCEAL THEIR IRE OVER
REAL OR IMAGINED SLIGHTS IN VIEW OF OTTAWAIS VERY NEGATIVE REACTION
ro THE us IMPOSITION OF RESTRICTIVE IMPORT QUOTAS ON CANADIAN BEEF
AND PORK. TRUDEAU, HOWEVER, HAS FREQUENTLY SAID HE REALIZES, THAT
GOOD RELATIONS WITH THE US ARE OF PRIME IMPORTANCE TO CANADA,
THE RECENT IRRITANTS IN US-CANADIAN RELATIONS ARE NOT LIKELY TO
ALTER THIS VIEW. E-2 IMPOET.
residential Library Review of NSC Equities is Required
DECLASSIFIED
AUTHORITY RACreview 4/11/05; nsc guiddinns
BY labs
NLF, DATE 7/3/07
RECALLED
SN:012727
PAGE 01
OF 01
TOR:324/18:007
DTG:201754Z NOV 74
C
0
N
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N
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L*******S
COPY
,
Approved For Release 2005/04/11 NLF-PC_E_C-2-3-1-3
GERALD
FORD & LIBRARY RALD
&
LIBRARY
OFFICE
"
FORD
SUGGESTED GUEST LIST
Working Dinner at White House - December 4, 1974
Pierre Elliott Trudeau
Prime Minister of Canada
Allan MacEachen
Secretary of State for External Affairs
Marcel Cadieux
Ambassador of Canada to the United States
John G. H. Halstead
Under Secretary for External Affairs
Ivan Head
Special Assistant to the Prime Minister
J. Russell McKinney
Minister of Canada to the United States
J. S. Nutt
Director General, Western Hemisphere Affairs, Department of
External Affairs
Henry A. Kissinger
Secretary of State
Lt. Gen. Brent Scowcroft
Deputy Assistant to the President for National Security Affairs
William J. Porter
Ambassador of the United States to Canada
Helmut Sonnenfeldt
Counselor, Department of State
Arthur A. Hartman
Assistant Secretary of State
A. Denis Clift
Senior Staff Member, National Security Council
Richard D. Vine
Deputy Assistant Secretary of State
Senator Gale W. McGee
or Senator Frank Church
Senator George D. Aiken
or Senator Ted Stevens
Representative Thomas E. Morgan
FORD
a
or Representative Lloyd Meeds
Representative Robert C. McEwen
GERALD
LIBHARY
or Representative Pierre S. DuPont
- 2 -
Regers C. B Morton
Secretary of the Interior
William E. Simon
Secretary of the Treasury
Earl L. Butz
Secretary of Agriculture
Frederick B. Dent
Secretary of Commerce
James R. Schlesinger
Secretary of Defense
William D. Eberle
Special Trade Representative and Executive Director, CIEP
William L. Seidman
Assistant to the President for Economic Affairs
General George Brown, USAF
Chairman, Joint Chiefs of Staff
Robert Ellsworth
Assistant Secretary of Defense, International Security Affairs
Donald Rumsfeld
Assistant to the president.
FORD LIBRAR i
A
C
FORD
"
LIBRARY
7422934
DEPARTMENT OF STATE
ACTION MEMORANDUM
NOV 201974
S/S
CONFIDENTIAL
To : The Secretary
From: EUR - Arthur A. Hartman
Objectives for Visit of Canadian
Prime Minister Trudeau
Summary
Trudeau's visit to Washington December 4
provides an opportunity for the President to lay the
foundation of the close personal relationship called
for between the leaders of nations whose inter-
involvement at every level has long been friendly and
mutually beneficial. Trudeau will wish to gain our
understanding of Canada's efforts to lessen dependence
on the United States. For us the visit will offer the
opportunity to underscore the importance we attach to
our bilateral relations with Canada while indicating
the concern with which we would necessarily view
Canadian policies that discriminate against us. We
would also suggest proposing that we undertake close
bilateral consultations during the period of economic
uncertainty that lies ahead.
Discussion
The meeting of President Ford and Prime Minister
Trudeau that is to take place December 4 is a working
visit and will be primarily a general review and oppor-
tunity for the President and Prime Minister to establish
a personal relationship.
We understand that Prime Minister Trudeau will
wish to explain the reasons underlying his government's
pursuit of the so-called "third option", -- the diver-
sification of Canada's foreign relations and its efforts
to lessen dependence on the United States. The Prime
Minister may also explain and seek US understanding for
FORD
CONFIDENTIAL
a
GDS
GG 10/15/01
BERALD
LIBRARY
CONFIDENTIAL
-2-
Ottawa's problems in dealing with the province
governments which enjoy greater constitutional
power than do US state governments.
For us, the meeting provides an opportunity
not only to stress the importance to both countries
of our economic relationship ($40 billion annual
trade in both directions, $28 billion US direct in-
vestment in Canada, $4 billion Canadian in the US)
but also to elicit Canadian support for US initia-
tives in dealing with world economic problems.
Thus, our main purposes will be:
-- to sustain a congenial environment
for US investment in Canada by assur-
ing Trudeau that we understand Canada's
desire to diversify its relations and
to reduce dependence on the US and that
we have no objection to this policy so
long as its implementation does not
involve discrimination against us;
-- to propose consultations early in 1975
at the level of senior officials to
coordinate our economic policies per-
haps by constituting a sub-group under
the aegis of the existing Joint Cabinet
Committee on Trade and Economic Affairs.
-- to propose that the personal relationship
between President Ford and Prime Minister
Trudeau be cemented by an official in-
vitation to Trudeau and his wife to visit
Washington, if possible, next year.
Recommendation:
That you approve the proposed objectives and
approaches for the Trudeau visit as outlined above.
Approve
Disapprove
FORD
&
CONFIDENTIAL
BERALD
LIBRARY
MEMORANDUM
NATIONAL SECURITY COUNCIL
418
ADMINISTRATIVELY CONFIDENTIAL
INFORMATION
January 21, 1975
MEMORANDUM FOR GENERAL SCOWCROFT
FROM:
A. Denis Clift
on
SUBJECT:
Ivan Head's Call on Time and Reader's Digest
Ivan Head called you recently -- in keeping with the understanding reached
between Prime Minister Trudeau and the President -- to advise that the
Canadian Cabinet will be considering the Time and Reader's Digest tax
status issue this Thursday.
Both Time and Reader's Digest currently enjoy a special tax status in
Canada placing them in a very favorable, competitive position with
Canadian publications. Both to improve the health of the Canadian
publishing industry and'to purify the Canadian cultural strain" it has been
recommended that this special tax status be eliminated. It is probable
that the Canadian Cabinet will take this decision on Thursday. Ivan Head
has invited any comments you might care to make.
Prior to Trudeau's visit last month, Time specifically requested that the
U.S. Government steer clear of any involvement. As of this moment
neither Time nor Reader's Digest has approached the State Department
for assistance. I believe it is best to allow this issue to proceed on its
merits, and I see no need for you to follow up with a telephone call to
Ivan Head.
OK.B
ADMINISTRATIVELY CONFIDENTIAL
GERALD ? LEBRARY FORD
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CIRCLE AS APPROPRIATE
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FROM: kissinger, H
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UNCLAS LOG IN/OUT
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OTHER
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SCHLESINGER, J
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DAVIS
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CODEWORD
SUBJECT: STaters Readers Report on Iven Head ponise Talks TS with SENSITIVE
The 2 Digest is Special Tax STatus W.Conada
INTERNAL ROUTING AND DISTRIBUTION
REC
ACTION REQUIRED
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INFO
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FOR
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(
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REFER TO
FOR:
(
UNITED NATIONS
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ECONOMIC
ANY ACTION NECESSARY?
(
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SCIENTIFIC
CONCURRENCE
(
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PROGRAM ANALYSIS
DUE DATE:
NSC PLANNING
COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS)
CONGRESSIONAL
OCEANS POLICY
INTELLIGENCE
DATE
FROM
TO
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CY TO
1/21
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FORD
&
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MICROFILM & FILE RQMTS
NSC/S DISP INSTR
NOTIFY
& DATE
BY
M/F'D
JAN
25
1975
SPECIAL DISPOSITION:
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541
3A
THE WHITE HOUSE
WASHINGTON
February 1, 1975
MEMORANDUM FOR
THE SECRETARY OF STATE
The President has reviewed and concurs in the
recommendation of the Deputy Secretary of State
that the appointment of Mr. Jack Hamilton Warren
as Ambassador Extraordinary and Plenipotentiary
of Canada to the United States would be agreeable
to the Government of the United States. You are
requested to so inform the Government of Canada.
Brent
Lieutenant General, USAF
Deputy Assistant to the President
for National Security Affairs
FORD LIBRARY &
Dispatched MAS 2/1/75
3B
MEMORANDUM
NATIONAL SECURITY COUNCIL
541
CONFIDENTIAL
ACTION
January 29, 1975
MEMORANDUM FOR GENERAL SCOWCROFT
FROM:
A. Denis Clift on
SUBJECT:
Agrement for New Canadian Ambassador
With the memorandum at Tab B, Deputy Secretary of State Ingersoll
recommends that the President agree to the appointment of Mr. Jack
Hamilton Warren as the new ambassador of Canada to the United States.
Mr. Warren is a distinguished career civil servant who is presently
serving as the Canadian High Commissioner to London. I concur with
State's recommendation.
If you agree, the memorandum at Tab A for your signature to the
Secretary of State would give the President's concurrence.
RECOMMENDATION
That you sign the memorandum at Tab A.
DECLASSIFIED
FORD
E.O. 12958, SEC. 3.5
&
CONFIDENTIAL
NSC MEMO, 11/24/08, STATE DEPT. GUIDELINES
GERALD
LIBRARY
BY GG
, NAMA, DATE 10/15/01
7501656
er
THE DEPUTY SECRETARY OF STATE
WASHINGTON
January 27, 1975
CONFIDENTIAL
Dear Mr. President:
The Government of Canada has inquired whether our
Government agrees to the appointment of Jack Hamilton
Warren as Ambassador Extraordinary and Plenipotentiary
of Canada to the United States. A biography of Mr. Warren
is enclosed. A thorough review of United States Govern-
ment records reveals no grounds for objection.
I believe this appointment would be satisfactory.
If you concur, I shall be pleased to inform the
Government of Canada.
Respectfully, Informate
Enclosure:
Biography.
The President,
The White House.
FORD
&
BERALD
LIBRARY
d
CONFIDENTIAL - GDS
GG 10/15/01
3D
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
Presidential Libraries Withdrawal Sheet
WITHDRAWAL ID 014129
REASON FOR WITHDRAWAL
....
National security restriction
TYPE OF MATERIAL
Biography
TITLE
Jack Hamilton Warren
DESCRIPTION
Ambassador to the United States
CREATION DATE
02/1975?
VOLUME
1 page
COLLECTION/SERIES/FOLDER ID
032500032
COLLECTION TITLE
NATIONAL SECURITY ADVISER. PRESIDENTIAL
COUNTRY FILES FOR EUROPE AND CANADA
BOX NUMBER
2
FOLDER TITLE
Canada (3)
DATE WITHDRAWN
10/16/2001
WITHDRAWING ARCHIVIST
GG
DECLASSIFIED, with portions exempted
E.O. 12968, SEC. 3.5
STATE DEPT, GUIDELINES, state visit 7/31/00
BY GG
, NARA, DATE 10/18/01
3D
CONFIDENTIAL
BIOGRAPHY - Jack Hamilton Warren
Canada
J. H. "Jake" Warren is one of the elite group of
Canadian civil servants who attain sub-cabinet rank before
the age of forty. He would come to Washington from London
where he served as High Commissioner (1971-1974). Previous
appointments have been as Deputy Minister of the Department
of Industry, Trade and Commerce (and a predecessor agency)
1964-1971, and service in Washington, 1954-1957, as Financial
Counselor.
Born in Ontario in 1921, Mr. Warren received a B.A.
degree from Queen's University at Kingston in 1941. He served
in the Navy Reserve, 1941-45, and joined the Department of
External Affairs in 1945 as a foreign service officer.
Mr. Warren's functional specialty is trade policy. He
has represented Canada at UNESCO meetings, and was Chairman
of the Contracting Parties of the General Agreement on Tariffs
and Trade from 1962-65. He has participated in numerous
bilateral meetings and negotiations with the United States.
Fit and well-groomed, Warren skis, fishes and plays golf.
He is married to the former Hilary Joan Titterington, an
intelligent and attractive Irishwoman. They have two sons
and two daughters.
A thorough search of United States Government sources
reveals no grounds for objection.
CONFIDENTIAL GDS
rune
&
DECLASSIFIED, with poltions exempted
E.O. 12968, SEC. 3.5
BERALD
STATE DEPT, GUIDELINES. State Visit 7/31/00
BY Gh
NARA, DATE 10/18/01
,
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DOC
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DG NBR
NSC CORRESPONDENCE PROFILE
MO
DA
MO
DA
HR
TO: PRES
Ingersoll,R FROM: KISSINGER, H 27
27
16
7500541
REFERENCE:
CIRCLE AS APPROPRIATE
Clift INITIAL ACTION O
+
S/S 7501656
UNCLAS LOG IN/OUT
SOURCE/CLASS/DESCRIPTION
KISSINGER
COLBY, W
OTHER
LQU
NO FORN
NODIS
SCOWCROFT
SCHLESINGER, J
C
EYES ONLY EXDIS
SUBJECT DAVIS ST EX Warren SEC as Cent of Canola TS S SENSITIVE CODEWORD
REC
ACTION REQUIRED
INTERNAL Jarran ROUTING AND DISTRIBUTION
ACTION
INFO
CY
ADVANCE CYS TO HAK/SCOWCROFT
FOR
MEMO FOR HAK
(
)
STAFF
SECRETARY
X
X
MEMO FOR PRES
(
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REPLY FOR
FAR EAST
(
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(
DISTRIBUTION/INITIAL ACTION ASGMT
SUB-SAHArAN AFRICA
MID EAST / NO. AFRICA / so. ASIA
MEMO APPROPRIATE Scraft TO ACTION HAK
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X
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RECOMMENDATIONS
(
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LATIN AMERICA
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JOINT MEMO
(
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PRESIDENT HAS SEEN
MEMORANDUM
def
THE WHITE HOUSE
720
Ha
WASHINGTON
March 5, 1975
SECRET
INFORMATION
MEMORANDUM FOR THE PRESIDENT
MRS
FROM:
Henry A. Kissinger HK
SUBJECT:
US-Canadian Relations - Status and Near-Term
Prospects
In early March, Canadian Prime Minister Pierre Elliott Trudeau embarks
on another tour of Western European capitals with scheduled visits to
Bonn, Rome, the Vatican, the Hague, London and Dublin. On the
Canadian side, these visits are seen as a continuation of the Trudeau
mission to France and Belgium last December. Trudeau's goal is to lay
the foundations for a new and closer relationship with the European
Community (EC) states, as part of efforts included in his central policy
aimed at bringing about Canada's "economic independence" from the
United States and establishing a distinct national identity for Canada.
This is borne out by developments in US-Canadian relations since your
December 4 meeting with the Prime Minister in Washington. Since that
time, the Canadian government in both statement and action -- has
pointedly restated its intention to lessen Canada's vulnerability and
dependence on the United States, particularly in the economic sphere but
in political and security areas as well.
-- Political: In a formal speech in 1975, Canada's Minister for External
Affairs Allan Mac Eachen, has stated that Canada has reconsidered her
relations with the United States and decided to "strengthen the economy
and other aspects of national life in order to secure our independence."
MacEachen has reaffirmed Canada's intentions to lessen Canada's economic
dependence on the United States, to put an end to the so-called "special
relationship" with the United States, and -- recognizing the magnitude
of the existing bilateral relationship -- to treat the United States as the
first among all our partners.
.Economic: Canada will continue to implement its previously stated
policy of restricting oil and gas exports to the United States; control over
foreign investments in Canadian firms will be tightened; Canada will more
than likely pass legislation preventing foreign-owned subsidiaries in
DECLASSIFIED
E.O. 12956, SEC. 3.5
SECRET
NSC GG MEMO, 11/24/08, STATE DEPT. GUIDELINES, State visit 7/31/00
FORD & LIBHARY OF
BY,
# NARA, DATE 10/15/01
SECRET
- 2 -
Canada from adhering to trade restrictions imposed on parent firms;
Canadian import quotas on beef and pork can be expected to remain in
effect indefinitely. The Canadian Cabinet has just acted to eliminate
the special tax status enjoyed by the Canadian editions of Time and
Reader's Digest.
-- Security: Renewal of the NORAD air defense agreement is expected
but not without Canadian insistence on changes that would more clearly
recognize Canadian sovereignty over airspace and control over national
forces. Also of concern is the Canadian defense budget for 1975-76 which
forecasts a slight reduction in the overall Canadian defense effort.
Developments in each of these areas as well as other major aspects of
US-Canadian relations are reviewed in greater detail in the background
paper at Tab A. While it was anticipated by some that the impact on
Canada of U.S. inflation and recession in recent months might cause the
Canadians to move to a closer, more accommodating approach to
US-Canadian relations, it would appear clear that the Trudeau Government
has decided that Canada's best course lies in gaining greater distance from
the United States. As Trudeau has a healthy Parliamentary majority, and
as he is not required to hold new elections until 1979, we can expect to see
a concerted Canadian effort to further these policy objectives.
With this renewing surge of increasing Canadian nationalism, the Trudeau
Government can be expected to give close and continuing attention to all
aspects of the bilateral relationship -- including issues which may in
the past been dealt with solely at the private sector level -- seeking in
each instance to maximize the Canadian advantage. It will be important to
bear this in mind in our dealings with Canada. I will be taking a close
look at ways to improve the flow of information on Canadian planning and
activities that have a bearing on U.S. interests.
FORD
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SECRET
GERALD
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BACKGROUND
On January 23, Canadian External Affairs Minister Allan MacEachen
made a major foreign policy speech to the Winnipeg branch of the
Canadian Institute of International Affairs. While the MacEachen speech
borrowed heavily from an overall review of US-Canadian relations published
by the Canadian government in 1972, the ideas are expressed more directly
by referring for the first time to Canada's "independence. 11 While stressing
"economic independence, 11 the objective of the Trudeau government is to
assert its separate political and economic identity from the United States.
To implement this strategy, the Trudeau government has moved to expand
its contacts in Asia and with the European Community, to diversify its
trading relations and to increase control over the domestic economy.
Concerning MacEachen's reference to the "end of the special relationship
between Canada and the United States, 11 the Canadians would like to replace
this "special" relationship with what they term a "more mature" association
permitting close ties but leaving each country free to pursue national
interests. However, recognizing the objective reality of the relationship
between the two countries, the Canadians continue to view the United States
as their most important partner.
ECONOMIC ISSUES
Canada and the EC. Trudeau is expected to continue to press for a formal
economic relationship with the EC in order to reduce Canada's economic
dependence on the United States. During his visit to Paris and Brussels last
fall, Trudeau presented the Community with a plan for a formal contractual
link with the EC that would extend beyond the usual trade agreements
covering tariffs and quotas. President Giscard offered no encouragement
for the proposal, however, and the EC commission suggested that only
informal negotiations should be undertaken. Reports are that Prime Minister
Wilson -- on his recent trip to Ottawa -- remained neutral, reserving
comment until the Canadian case is further amplified. During his trip to
Europe this March, Trudeau will attempt to gain support for his proposal.
In the meantime, Canada is developing bilateral trade with France and the
United Kingdom and, outside Europe, with Asian and Caribbean countries.
The Oil Situation. During the past month, Canadian energy policies have
moved ahead in line with earlier statements. New oil export restrictions
became effective on January 1, cutting permissable exports to 800, 000
&
rune
DECLARBIFIED
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E.O. 12958, SEC. 3.5
NSC MEMO, 11/24/98, STATE DEPT. GUIDELINES, state visit 7/31/00
GERALD
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BY. GG
, MARA, DATE 10/15/01
SECRET
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barrels per day from the recent average of 1 million. Ottawa has restated
plans to cut shipments to 650, 000 barrels per day next July if the leading
oil producing provinces agree. Ottawa's policy still anticipates halting
all oil exports to the United States by the early 1980's. While the recent
oil "shut in" has resulted in a surplus, the Canadians plan no cut in the
$5.20 per barrel tax on most oil exports. In fact, a twenty-eight cents
increase in the tax is expected in March.
The Gas Situation. As expected, Ottawa increased gas export prices by 66
percent on January 1. Another price hike is likely following federal-
provincial energy talks scheduled for April. Severe weather and mechanical
difficulties in British Columbia's gas fields, meanwhile, are sharply
reducing exports to the U.S. Pacific Northwest. The shortfall in
Washington State alone averaged 200 million cubic feet daily in early
January, or one-quarter of the total amount contracted for by northwest
consumers. Under similar circumstances, Canada can be expected to
serve domestic customers first, before exporting surpluses to the United
States.
Foreign Investment. Canada is being quite tough on foreign investment.
Within the past month, Ottawa has rejected requests by four foreign firms
to buy into existing Canadian owned companies. This is in keeping with
Canada's declared intention to gain "economic independence" from foreign
control, particularly from the United States. One application, for example,
was accepted only after the Province of Quebec was allowed to take a
minority interest in a US acquired firm. More recently, the Canadian
government has announced its intention to remove the special status which
the Canadian editions of Time and Reader's Digest had been given by
Canadian legislation in the mid-1960's. We are continuing to wait for the
reaction of the two parent companies which, up to the present time, have
not requested the United States government to become involved.
Extraterritoriality -- the Litton Case. Ottawa has reacted strongly to
the question of U.S. control over American firms operating in Canada.
In fact, MacEachen has said that "Canada cannot accept extra-territorial
application of the laws of any nation. " The issue arose in December when
Litton Industries ordered its Canadian subsidiary to cancel a $500, 000
sale of office equipment machinery to Cuba, in line with the U.S. embargo
on trade to Cuba. The Litton case virtually assures that the Canadians
will pass a proposed legislation aimed at preventing foreign-owned
subsidiaries in Canada from adhering to trade restrictions affecting parent
runo
firms.
of
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Beef. Canada has made no move to repeal its quota on foreign beef
imports. Since the United States placed limits on Canadian beef and pork
imports in response to Canadian action, mid-level talks between the two
governments have ceased. It is unlikely that Ottawa's position will change
in the near future unless domestic Canadian beef interests strongly press
the government to repeal the quota. Informal talks between U.S. and
Canadian meat producers are now underway, but these are not expected
to produce any concrete results.
SECURITY ISSUES
NORAD. Negotiations for renewal of the US-Canadian North American
Air Defense (NORAD) Agreement, which expires in May, are likely to
be successfully completed, but not without Canadian insistence on some
changes. According to a recent report from Embassy Ottawa, the Agreement
is now under active consideration by the Canadian government. A Canadian
official told Embassy officers recently that Ottawa will be proposing
substantive changes to "update" the Agreement. Such changes will probably
be aimed at gaining more effective local control over the use of Canadian
military forces during emergencies and enhanced respect on the part of
the United States for the sovereignty of Canadian airspace. Emphasis can
be expected to shift from defense against a manned bomber attack to peace-
ful control of airspace. For the benefit of Canadian public opinion, the
Canadian government will have to "justify" a new agreement when it is
presented to the public and to Parliament. Canada is withholding its
decision on NORAD renewal until about mid-February when Parliament's
ongoing debate on Canadian defense structure is expected to be completed.
Because of our continuing concern over the questionable prospects for
Canadian defense spending over the next several years, Assistant Defense
Secretary Robert Ellsworth will visit Ottawa on February 10 to review in
broad terms the future of US-Canadian defense planning and cooperation.
Canadian Defense Review. In a recent speech on the defense budget,
Canadian Defense Minister Richardson outlined in optimistic terms Canada's
general defense goals for the 1975-76 fiscal year. While Richardson
emphasized that the defense spending program for the next year will
strengthen Canadian forces, the 12 percent in defense spending will probably
do little more than keep pace with inflation. The announcement on defense
threw little light on specific priorities and left in doubt the future of such
essential needs as tank replacement and modernization of maritime forces.
.
SECRET
BERALD
LIBRARY
SECRET
- 4 -
The net effect of the defense review will probably be a slight reduction
in the overall Canadian defense effort that will require careful U.S.
watching to avoid having to pick up the slack where Canada leaves off.
Richardson did reconfirm Canada's commitment to four basic defense
missions: defense of Canadian sovereignty, participation in NATO,
cooperation with the United States in North American air defense, and
support for United Nations peacekeeping operations. Richardson announced
that within the next six months Canada will reduce its augmented UN force
on Cyprus by nearly one half. Richardson justified the move on economic
grounds, but it may be a concession to increased Canadian nationalist
criticism of Canada's participation in international military operations.
ENVIRONMENTAL ISSUES
Good progress has been made as the result of two bilateral negotiations
with Canada on environmental issues in January. On the Garrison
Diversion Project (which could have channeled polluted water into Canada),
both sides have agreed to refer the matter for further study to either the
International Joint Commission (IJC) or an ad hoc group. Concerning the
West Coast tanker problem (where Canada expressed concern over vessel-
source pollution), both Canada and the United States are satisfied that
progress is being made toward resolution of the various issues involved,
including navigational problems, scientific research and the question of
off-shore oil ports. Canadian External Affairs Minister MacEachen in
his January 23 speech, cited the Garrison consultations as a good example
of the proper way to manage a contentious issue between our two countries.
The United States has made a concerted effort to implement the Great
Lakes Water Quality Agreement (GLWQA) of 1972 which provided that both
nations would have water quality programs completed or in the process of
completion by the end of 1975. To this end, EPA Administrator Train recently
announced your release to the States $4 billion for water pollution cleanup.
This action will have a strong positive effect on our pollution control
program in the Great Lakes Basin and will serve to blunt Canadian
criticism of past delays in U.S. programs and the extent of U.S. commitment
to the GLWQA.
FORD
SECRET
?
BERALD
SECRET
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OTHER RECENT ISSUES
Law of the Sea. During bilateral negotiations with the Canadians
January 13-14, some progress was made on various points of disagreement
between the two nations, e.g., unimpeded transit of international
straits and marine pollution problems. Most important, Canadian
negotiators indicated willingness to support the United States on the straits
issue, if exceptions permit Ottawa to establish and regulate vessel-source
pollution in the Arctic area. This issue is being studied by the NSC
Undersecretaries Committee. Canada seems likely, however, to arrive
at the Law of the Sea Conference in March as one of the chief Western
dissenters from U.S. proposals.
Fisheries Matters. British Columbia is still pressing to develop the
hydroelectric potential of the Frasier River, which would adversely affect
U.S. salmon fishing interests in Puget Sound. United States and Canadian
officials next meet in early March to address this problem but no solution
is in sight. Canada is not likely to agree to reimburse the United States
for future losses to the U.S. fishing industry as a result of the Frasier
project.
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