Memorandum of Conversation with Secretary of State Dean Acheson, the Ambassador of Canada, and the Foreign Minister of Canada

IDLIN THAL ARCHIVES t 'MATIONAL AN: NE 653 RECORD$ BERVICE** 251 September 10, 1949. MEMORANDUM OF CONVERSATION WITH CANADIAN AMBASSADOR AND FORRIGN MINISTER At luncheon alone with Ambas: ador Wrong and Mr. Pearson I mentioned Mr. Wrong's note which suggested that, in view of the action taken by the Colonial Airlines in enjoining con- sideration of the Canadian Company's application for a route, the Canadian Government might have to reconsider rights at Gander and elsewhere. I said that I hoped that the note was moant to register the great importance which the c nadian Government attached to the use of all the energies of this Government to sustain our position in the courts and to get forward with the execution of the agreement, and that it did not mean that the Canadian Government vas going to take re- taliatory measures because some litigant had tied up the Executive Branch here. The latter course could not possibly accomplish any good and might lead to somebody's dragging red herrings around by charging that the Canadian Government vas attempting to prevent calm, judicial consideration of the case. I also pointed out that certain articles appearing in the Nev York Times vere having the effect of keeping this mat- ter stirred up. Mr. Pearson inquired whether the Department of State and the Department of Justice were going to participate in the litigation to sustain the Government's point of view and asked whether, in my opinion, this litigation might drag on for several years. I said that both departments vere cooperating earnestly in trying to press the litigation to a quick and successful conclusion, and, if the temporary injunction were lifted, it was my understanding that the CAB would press for- ward vigorously with its proceedings. This seemed to reassure Mr. Pearson and he told me that no precipitant action vould be taken. I got the impression that this note was something which Mr. Pearson had originated and that we could deal with him successfully in regard to it. DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) Dept. of State letter, 12:3375 By NLT- HC . NARS Date 4-27-76 CONFIDENTIAL