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adoption of common equipment by the two forces. This meant, he
said, the purchase of many items by Canada in the United States
with the help of our forces -- but this took dollars badly needed.
He said Canada herself could concentrate on a few items which it
could produce economically if orders were in volume. He asked if
the United States would be willing to place orders for such items
in Canada, thus utilizing natural and manufacturing resources and
providing dollars to balance military payments.
The President said that the Prime Minister's suggestion de-
served most careful examination and directed Secretary Acheson
to institute a study. (Secretary believes this should not be through
NSC)
The Prime Minister said he was greatly disturbed over the
possibility that ECA might end the financing of British wheat pur-
chases in Canada. He said this would have a disastrous effect on
the Western provinces and on the whole Canadian-British and Canadian-
U.S. trade. It was explained to the Prime Minister that the problem
centered on whether the present law was continued which made financ-
ing impossible of wheat declared surplus in the United States and on
whether wheat became surplus here. It was also pointed out that the
wheat agreement had a direct bearing and that Canada could be very
helpful by assisting in getting British cooperation for an agreement.
If no agreement occurred and the world prices fell, the United States
Government would be in a difficult position in acquiring wheat under
price support procedures and still financing sales in Canada instead of
supplying its own wheat. The Prime Minister said he understood and
would try to be helpful. (Labouisse, Nitze and Thorp should note this)
The St. Lawrence project was briefly mentioned and the Prime
Minister stressed Canada's great interest in it. The President assured
the Prime Minister that his demonstrated desire for the project con-
tinued.
The Prime Minister said he recognized the legal commitments in
the Newfoundland base agreements and did not propose to change them.
He suggested the possibility of an exchange of notes by which the parties
might express the intention, for the present, to exercise undoubted le-
gal rights in certain ways which would not push the rights to the limit.
He referred to some management of imports for post exchange, duty free,
which would control bootlegging. He also mentioned some treatment
of military personnel who violated the law when not discharging duties
GLUNLI
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- 0a9d91bd9c5e284f
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Document data
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- 183390013
- Core
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DTO data
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Context sent to Scholar
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"ocrText": "€\nthe\nSECD\nARCHIVES RECOROS AND\nSEUNLY\n-2-\nSERVICES\nadoption of common equipment by the two forces. This meant, he\nsaid, the purchase of many items by Canada in the United States\nwith the help of our forces -- but this took dollars badly needed.\nHe said Canada herself could concentrate on a few items which it\ncould produce economically if orders were in volume. He asked if\nthe United States would be willing to place orders for such items\nin Canada, thus utilizing natural and manufacturing resources and\nproviding dollars to balance military payments.\nThe President said that the Prime Minister's suggestion de-\nserved most careful examination and directed Secretary Acheson\nto institute a study. (Secretary believes this should not be through\nNSC)\nThe Prime Minister said he was greatly disturbed over the\npossibility that ECA might end the financing of British wheat pur-\nchases in Canada. He said this would have a disastrous effect on\nthe Western provinces and on the whole Canadian-British and Canadian-\nU.S. trade. It was explained to the Prime Minister that the problem\ncentered on whether the present law was continued which made financ-\ning impossible of wheat declared surplus in the United States and on\nwhether wheat became surplus here. It was also pointed out that the\nwheat agreement had a direct bearing and that Canada could be very\nhelpful by assisting in getting British cooperation for an agreement.\nIf no agreement occurred and the world prices fell, the United States\nGovernment would be in a difficult position in acquiring wheat under\nprice support procedures and still financing sales in Canada instead of\nsupplying its own wheat. The Prime Minister said he understood and\nwould try to be helpful. (Labouisse, Nitze and Thorp should note this)\nThe St. Lawrence project was briefly mentioned and the Prime\nMinister stressed Canada's great interest in it. The President assured\nthe Prime Minister that his demonstrated desire for the project con-\ntinued.\nThe Prime Minister said he recognized the legal commitments in\nthe Newfoundland base agreements and did not propose to change them.\nHe suggested the possibility of an exchange of notes by which the parties\nmight express the intention, for the present, to exercise undoubted le-\ngal rights in certain ways which would not push the rights to the limit.\nHe referred to some management of imports for post exchange, duty free,\nwhich would control bootlegging. He also mentioned some treatment\nof military personnel who violated the law when not discharging duties\nGLUNLI"
}