Foreign Relations of the United States, 1951, The United Nations; The Western Hemisphere, Volume II

742.561/8–151

The Canadian Ambassador ( Wrong ) to the Secretary of State

confidential

Washington , August 1, 1951.

Dear Mr. Secretary: In connection with today’s exchange of notes¹ constituting an agreement between our governments for the establishment of a radar chain in Canadian territory as part of the defences of the North American Continent, I have been asked to bring to your attention a question regarded as of considerable importance by the Canadian Government. The Canadian Government does not receive financial or economic assistance from the United States and is anxious to avoid the appearance of being a recipient of aid.² The radar network is a project which the defence authorities of the United States consider to be essential for the protection of the United States; at the same time its construction is in the interests of Canada. It is thus a co-operative defence project which is being undertaken in the interests of both countries, and it would be completely incorrect if it were to be interpreted as constituting in any way United States aid to Canada.

The understanding of the Canadian Government is, therefore, that the conclusion of this agreement in no way implies that Canada can be regarded as becoming a recipient of aid from the United States. I should be glad if you would confirm that you share this understanding, and also if you would take steps to ensure that, as a result of the agreement, Canada will not be incorrectly classified by any agency of the United States Government as one of the countries receiving aid from the United States.³

Believe me, my dear Mr. Secretary,

Yours very sincerely,

Hume Wrong

1. See supra.

2. Canada had been included in a list of countries receiving assistance from the United States in connection with the Kem Amendment to H.R. 3587, signed by the President on June 2, 1951, which forbade aid from the United States to countries exporting certain items to the Soviet bloc. Canada had been included in the list because of a loan from the Export-Import Bank to a Canadian company, but the Legal Division had subsequently determined, as reported in a memorandum of July 16, 1951, by the Assistant Legal Adviser for Economic Affairs, Michael H. Cardozo, to the Director of the Office of Economic Defense and Trade Policy, John M. Leddy, that, since the company was controlled by United States interests, the loan did not constitute aid (460.509/7–1651). On July 18, Acheson noted in a memorandum that the National Security Council had that day authorized the removal of Canada from the list of countries receiving assistance within the terms of the Kem Amendment. (Secretary’s Memoranda, Lot 53 D 444)

   For documentation concerning the Kem Amendment, see vol. i, pp. 993 ff.

3. Perkins wrote to Wrong on August 7: “You may assure your Government that this Department is in full accord with this understanding, and that it will use its best efforts to ensure that other agencies of the United States Government not interpret the agreement as involving, in any manner, the extension of aid to Canada” (742.561/8–151).