711.42157SA29/1291

Memorandum by the Under Secretary of State (Phillips)

I lunched with the Canadian Minister today and discussed various matters of mutual interest with him. I said that, before the President [Page 974] left Washington, he had asked me to inquire of Mr. Herridge whether he would be disposed to discuss informally this summer ways and means either to amend the St. Lawrence Waterway Treaty or to rewrite a new one so that the President could present it in the Senate on the reconvening of Congress. I added that the President had asked me, in particular, to say that he did not wish to do anything in this matter which might prove to be of embarrassment to the Canadian Prime Minister and that the reason, therefore, of my reference to the St. Lawrence Waterway Treaty today was merely to ascertain how Mr. Bennett felt about it. Mr. Herridge replied that the Prime Minister was at present in the west of Canada and would not return to Ottawa for about ten days, that he (Herridge) would then go to Ottawa to meet him and would bring back a definite answer to my inquiry.

Speaking for himself Mr. Herridge felt that the present was not an opportune time to renew these discussions; he reminded me that the failure of the treaty in the Senate was received by all the members of the Canadian Government with evident relief; he did not think that anything had happened since then to alter their feelings on the subject and he was certain that if the fact of conversations looking towards a modified treaty was given publicity through the press, it might be exceedingly awkward for Mr. Bennett and the members of his Government. Mr. Herridge went on to point out that the economic situation in Canada was improving rapidly and that, if by November the upward turn was so definite as to bring about a nation wide feeling of hopefulness, then Mr. Bennett might be able to tackle the subject of a new treaty; the new Public Works Program was only just going into effect and by November it might be possible to add the St. Lawrence Waterway project to the now generally accepted program of public works.

Mr. Herridge gave me the above as merely an expression of his personal views, but I gathered that more than likely they represent the views of his Chief.

[The remainder of this memorandum deals with other matters.]

William Phillips