The Assistant Secretary of State for Congressional Relations (McFall) to the Chairman of the Senate Foreign Relations Committee (Connolly 1)


My Dear Senator Connally: I believe that you may be interested to learn of the general plans that have been made by the United States and Canadian Governments for combining their industrial resources in order to meet the demands of the present tense international situation. You may recall that under terms of the Hyde Park Agreement of 19412 between President Roosevelt and Prime Minister Mackenzie King, the two Governments cooperated very closely during World War II in such matters as military procurement, economic controls and the use of raw materials. This agreement and the arrangements worked out under it proved so successful that on April 12, 1949, when international conditions again appeared threatening, the Joint U.S.–Canada Industrial Mobilization Planning Committee was formed to make plans in case joint action of this type should again become necessary.

The increase in military requirements in both countries and the need for reimposition of economic controls resulting from the Korean war have now made it necessary to implement the plans made by the Joint Industrial Mobilization Planning Committee. Therefore, on August 8th, the United States Section of the Committee, upon which the NSRB and the Munitions Board were both represented, and their Canadian colleagues agreed that a set of principles should be adopted permitting close and effective cooperation between the two countries in this vital field of industrial mobilization. At that time such a statement of principles was prepared and it has now been approved both by the President and by the Canadian Cabinet.

It is planned to put these principles into effect through a covering exchange of notes in which each Government agrees to carry out, to the extent of its executive authority, the principles mentioned in the enclosure to this letter.3 Much of the action necessary to implement these principles can be taken under authority of existing legislation including the Defense Production Act. It is hoped that the notes may be signed sometime in October and at the same time it is also planned to make the statement of principles public.

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I think you will find the statement of great interest since a resumption of close cooperation with the Canadians such as we had during World War II will greatly increase our industrial mobilization potential.

Sincerely yours,

Jack McFall
  1. Tom Connally.
  2. For text, see Department of State Bulletin, April 26, 1941, pp. 494–495.
  3. The text of the “Statement of Principles in Event of Emergency” referred to here was embodied in the Industrial Mobilization Agreement signed on October 26, 1950; see p. 588.