S/S–NSC files, lot 63 D 351, NSC 150 Series
No. 964
Memorandum by the Deputy Assistant
Secretary of State for European Affairs (Bonbright) to
the Under Secretary of State (Smith)
1
confidential
[
Washington
,] April 21, 1953.
- Subject: St. Lawrence
Seaway Project
It is recommended that you support the proposed N.S.C. Statement on Policy regarding the national security
interests in the St. Lawrence-Great Lakes Seaway Project.2
It is recommended that you urge, in connection with point No. 2 of that
policy, that the Federal Power Commission be informed promptly and at
the highest appropriate level, of the Policy Statement so that the
Commission can make a decision on the New York Power Authority’s
application as soon as possible.
Attached is a memorandum on the foreign policy aspects of St. Lawrence development.
[Attachment]
Paper Prepared in the Office of British
Commonwealth and Northern European Affairs
- Subject: Foreign Policy Aspects of St. Lawrence Legislation
Development of the St. Lawrence has an important bearing on U.S.–Canadian
relations. The Canadian Government regards the St. Lawrence Project as the most
important single facet in its relations with the United States. It
regards the prompt beginning of the entire project, both power and
waterway, as of great importance to the development of Canada. From
the Canadian point of view the development of power is a matter of
the highest priority and urgency in view of developing shortage of
low-cost power in industrialized Ontario which will become acute by
about 1957. The fact that this is a Canadian election year makes the
problem even more acute from the Canadian point of view.
Anything done or not done by the United States Government which would
have the effect of delaying the decision of the Federal Power
Commission would almost certainly cause serious deterioration in our
relations with Canada. As to the waterway part of the project, the
Canadians, provided the power project is approved, are [Page 2075] committed to proceed on
their own with the construction of the necessary works to provide a
27-foot waterway from Montreal to Lake Erie. There is a strong and
probably predominant feeling in Canada that they would prefer this
to be an all-Canadian project. The Government has assured us,
however, that following favorable action on power it would be
willing to discuss with us the question of United States
participation in the waterway adding the caveat that this should be
done without unduly delaying the waterway. As the Wiley Bill, now
before Congress, pertains only to the question of United States
participation in the waterway, which this Department has long felt
would be in the United States interest, it is felt that this
particular piece of legislation, provided it is acted on promptly,
i.e., this session, should not complicate our relations with Canada.
On the other hand, other bills such as the Lehman Bill, which
include provisions relating to power and which, therefore, would
almost certainly delay a decision on power, contain the risk of
jeopardizing our good relations.
In summary, the most important action needed to insure a continuance
of our close and harmonious relations, which in the political,
economic and military fields are of great importance, is prompt and
favorable action by the Federal Power Commission on the New York
Power Authority’s application which is now before the Commission.
This would remove any suspicion on the part of the Canadians that
the United States Government is delaying the initiation of the power
project. It will be helpful in this connection, should the
Administration decide to support the Wiley Bill, to give public
expression to the fact that this Bill should not in any way delay
the power part of the project.
The recommendations in the N.S.C.
Policy Statement are in the national interest of the U.S. Their
implementation will not damage U.S.-Canadian relations. On the
contrary, any effect, which the recommendations may have on the
Federal Power Commission resulting in a prompt F.P.C. decision, will
enhance those relations and facilitate other important negotiations
with Canada.
