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tance to the US are the mining of uranium
endowed cannot be expected to suffer eco-
and the exploitation of high-grade iron ore
nomic difficulties comparable with those of
reserves which will be coming into production
older countries.
there as the US's own high-grade reserves run
In foreign affairs Canada bears a special
out. Canada's industrial establishment has
relation to the UK by reason of its member-
been growing rapidly, particularly since the
ship in the Commonwealth, and to the US be-
outbreak of World War II, and hence par-
cause of the manifold influences of proximity
ticularly along lines of strategic significance.
and of similarity of outlook. Membership in
Because of this fact and also because of the
the Commonwealth does not mean any les-
large and growing US investment in Canadian
sening of Canada's freedom of action, nor has
manufacturing, Canada's industrial establish-
proximity to the US produced any significant
ment may strategically be considered as sup-
Canadian desire to amalgamate with its
plemental to that of the US, adding signifi-
American neighbor. Because of its special re-
cantly to the American defense potential.
lationship with the two countries, Canada is
Canada's foreign trade, per capita, is the
to some degree a mediating and interpreting
largest in the world; the typical prewar pat-
agent between the US and the UK. In inter-
tern of this trade consisted in selling goods to
national controversies Canada is a dependable
Europe (especially to the UK) and purchasing
associate of the Western Powers. It was one
from the US. Inconvertibility of European
of the principal initiators of the North Atlan-
currencies since the war has rendered this
tic Treaty.
pattern increasingly difficult to follow; only
The military policy of Canada is to main-
large Canadian and US loans to Britain, and
tain small forces of high quality. French-
offshore purchases under ECA, have made it
Canadian attitudes, especially the strong op-
possible at all. Hence Canada has tended to
position to conscription, would make impos-
run short of US dollars, and has had to intro-
sible any extensive military establishment in
duce import restrictions. The devaluation of
time of peace. In war Canadian forces have
European currencies has made it even more
always proved to be of very high quality.
difficult for Europeans to afford purchases in
Though founded on British traditions and or-
Canada; Canada's own 10 percent devaluation
ganized primarily along British lines, the Ca-
does little to ease the situation. It is likely
nadian forces work increasingly in close co-
that a considerable readjustment of Canadian
operation with those of the US. The indefi-
foreign trade will be required to meet the
nite continuation of this cooperation may be
world conditions of coming decades; but a
expected because of general recognition that
country SO sparsely populated and so richly
the security of both countries depends on it.
SECRET
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"ocrText": "2\ntance to the US are the mining of uranium\nendowed cannot be expected to suffer eco-\nand the exploitation of high-grade iron ore\nnomic difficulties comparable with those of\nreserves which will be coming into production\nolder countries.\nthere as the US's own high-grade reserves run\nIn foreign affairs Canada bears a special\nout. Canada's industrial establishment has\nrelation to the UK by reason of its member-\nbeen growing rapidly, particularly since the\nship in the Commonwealth, and to the US be-\noutbreak of World War II, and hence par-\ncause of the manifold influences of proximity\nticularly along lines of strategic significance.\nand of similarity of outlook. Membership in\nBecause of this fact and also because of the\nthe Commonwealth does not mean any les-\nlarge and growing US investment in Canadian\nsening of Canada's freedom of action, nor has\nmanufacturing, Canada's industrial establish-\nproximity to the US produced any significant\nment may strategically be considered as sup-\nCanadian desire to amalgamate with its\nplemental to that of the US, adding signifi-\nAmerican neighbor. Because of its special re-\ncantly to the American defense potential.\nlationship with the two countries, Canada is\nCanada's foreign trade, per capita, is the\nto some degree a mediating and interpreting\nlargest in the world; the typical prewar pat-\nagent between the US and the UK. In inter-\ntern of this trade consisted in selling goods to\nnational controversies Canada is a dependable\nEurope (especially to the UK) and purchasing\nassociate of the Western Powers. It was one\nfrom the US. Inconvertibility of European\nof the principal initiators of the North Atlan-\ncurrencies since the war has rendered this\ntic Treaty.\npattern increasingly difficult to follow; only\nThe military policy of Canada is to main-\nlarge Canadian and US loans to Britain, and\ntain small forces of high quality. French-\noffshore purchases under ECA, have made it\nCanadian attitudes, especially the strong op-\npossible at all. Hence Canada has tended to\nposition to conscription, would make impos-\nrun short of US dollars, and has had to intro-\nsible any extensive military establishment in\nduce import restrictions. The devaluation of\ntime of peace. In war Canadian forces have\nEuropean currencies has made it even more\nalways proved to be of very high quality.\ndifficult for Europeans to afford purchases in\nThough founded on British traditions and or-\nCanada; Canada's own 10 percent devaluation\nganized primarily along British lines, the Ca-\ndoes little to ease the situation. It is likely\nnadian forces work increasingly in close co-\nthat a considerable readjustment of Canadian\noperation with those of the US. The indefi-\nforeign trade will be required to meet the\nnite continuation of this cooperation may be\nworld conditions of coming decades; but a\nexpected because of general recognition that\ncountry SO sparsely populated and so richly\nthe security of both countries depends on it.\nSECRET"
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