Memorandum of Conversation with Secretary of State Dean Acheson, Ambassador of Canada Hume Wrong, W. D. Matthews, and Avery F. Peterson

S - Mr. Battle DEPARTMENT OF STATE 4516 Memorandum of Conversation DECUSSIFIED 941 F.O. 10501 DATE: March 26, 1952 SUBJECT: Status of the St. Lawrence Project 107 PARTICIPANTS: Honozable Hume Wrong, Canadian Ambassador Mr. W. D. Matthews, Minister, Canadian Embassy The Secretary Avery F. Peterson, BNA COPIES TO: EUR - Mr. Perkins L - Mr. Fisher H - Mr. McFall NSRB - Mr. Gorrie Finbassy Ottawa U. s. GOVERNMENT PRINTING OFFICE 16-61120-1 The Canadian Ambassador called by appointment and stated that the status of the St. Lawrence Project had come before the Cabinet yesterday all he had been instructed urgently to obtain an interview with the Secretary. He referred to the meeting between the President and the Canadien Prime Minister last September 28 (when Mr. Acheson was out of the city) at which time both agreed that the joint project was to be preferred, but that if Congress failed to make this possible within a reasonable time, the United States would cooperate in the Canadian plan to build the Seaway alone in Canadian territory, Canada also providing for its own share of the power facilities in the International Rapids section. The Ambassador read portions of the final paragraph of a U.S. note exchanged January 11, 1952, which committed the United States to "cooperate" in presenting concurrent appli- cations for the project to the International Joint Commission. The Ambassador stated the Canadi an Cabinet would like the Secretary to ask the President if he did not agree that prospects of favorable Congressional action were remote and hence that full reliance should be placed now on the second alternative of a Canadian seaway; and that in order to advace this matter, whether the President might be willing to name the entity to construct power works on the United States side. Mr. Wrong added that, in absence of an indication of the power authority on the United States side, it would not be possible to proceed wi th the application to the International Joint Commission. The Canadi.: an Ambassador limited his formal representations to these points, but at the end of the interview stated that the Canadien Prime Minister would be glad to write a letter to the President outlining the urgency which the Canadian Government attached to the St. Lawrence matter. The Secretary said he thought the request could be handled orally in the first instance but that if a letter from Mr. St. Laurent was desired, he would so indicate. The Secretary agreed to tak e