611.42321 SL/10–2053
No. 979
Memorandum of Conversation, by the
Director of the Office of British Commonwealth and Northern European
Affairs (Raynor)
confidential
[Washington,] October
20, 1953.
- Subject: Canadian Request for Assistance in Expediting Handling of
Anticipated Litigation re St. Lawrence Power Development
Participants:
- Minister of External Affairs Lester B. Pearson, Canada
- Ambassador Arnold Heeney, Canadian
Embassy
- Mr. Douglas Le Pan,
Counselor, Canadian Embassy
- The Secretary
- Mr. Raynor, Director,
BNA
Minister of External Affairs Lester B.
Pearson called on the Secretary today pursuant to a
request made by the Canadian Embassy.
[Page 2109]
He was accompanied by Ambassador
Heeney and Douglas Le Pan of the Embassy staff.
Mr. Pearson stated that he
had come down from Ottawa specifically for the purpose of having this
talk with the Secretary which was indicative of the importance attached
by Ottawa to the matter. He stated that it was generally understood that
suits would be filed on or before November 5 with respect to the license
granted to New York by the Federal Power Commission. He indicated that
it was the Canadian understanding that if these suits took their normal
course they might well drag out so that the entire 1954 construction
season would be lost.
Mr. Pearson stated that if
this should prove the case it would be a severe blow to the industrial
development of Ontario.…
He said he had a memorandum setting forth this aspect of the question
which he would leave with Mr. Raynor and which he hoped would be read by those in the
United States Government interested in the problem. (Following the
discussion Mr. Le Pan handed
this memorandum to Mr. Raynor.)
He said that furthermore from the political point of view the reaction to
such an additional delay would be very adverse. He said the Canadian
people would be dismayed. They would accuse the Federal Government of a
lack of diligence.…
The Minister stressed that Canada, of course, realized it would be
improper to interfere with the due process of law in this country and
did not feel they were doing so. He did feel, however, it was proper for
the Canadian Government to request the State Department to lend them
assistance in order that the judicial process could be expedited as much
as possible. He said the Ambassador had talked about this matter to Mr.
Phleger and that Mr.
Howe had mentioned it informally to the
Attorney General recently. He requested specifically that the Department
inform the Attorney General that we felt it was in the joint interest
that the litigation be expedited.
The Secretary informed Mr. Pearson that the State Department would be glad to write
the Attorney General setting forth the importance of taking whatever
steps may be proper and feasible to expedite the process of litigation.
The Secretary also added that he would speak personally to the Attorney
General on the matter when he saw him at Cabinet on Friday.1
During the course of the conversation the Secretary mentioned that rumors
were rife around the Watertown area that this project would result in
raising the waters of Lake Ontario to an unprecedentedly high level. Mr.
Pearson as well as Mr.
Le Pan refuted this
[Page 2110]
stating that it was their
understanding and that the IJC had so
held that the project would on the contrary improve the water level
situation.
[Attachment]
Memorandum From the Canadian Government to the
Department of State
St. Lawrence Power Project
The need for additional supplies of low-cost hydro-electric power in
the Province of Ontario is urgent and the last remaining sources of
such power available to Ontario, the St. Lawrence project, must be
developed immediately if a shortage of power, which is bound to
affect the economy of Canada and to impair seriously the defence
programmes of both Canada and the United States, is to be avoided.
The seriousness of the situation was fully demonstrated by the
chairman of the Hydro-Electric Power Commission of Ontario in
evidence and testimony presented to the Federal Power Commission
during its hearings in December 1952. Mr.
Saunders’ exposition of the problem was
based on the assumption that a start could be made on the
construction of the St. Lawrence project in 1953. It now appears that unless
special steps are taken it may be impossible to begin work on the
project until the spring of 1955. Since the Federal Power Commission
hearing, the situation in Ontario has deteriorated, not only because
of the delay in beginning the construction of the project but also
because the power needs in Ontario have already increased beyond
those forecast by the Hydro-Electric Power Commission of
Ontario.
- 2.
- The industries and resources of Ontario are of vital
importance to the civilian economy of Canada and to the defence
programmes of both Canada and the United States. Nearly half of
Canada’s total manufacturing capacity is located in this part of
Canada served by the Hydro-Electric Power Commission of Ontario.
Nearly one-half of Canada’s current production of defence goods
comes from this region. From plants in Ontario the Canadian
armed forces receive over 80 percent of their mechanical
transport and about 60 percent of their electronic and
communication equipment. Plants in the area produce the jet
engine, the Orenda, for use in both the CF–100 and in the
Canadian-built Sabre aircraft, the F86E. The all-weather night
interceptor, the CF–100, which is planned to carry out Canada’s
role in the joint air defence of North America, is also built
there.
- 3.
- Many of the plants in Ontario which rely on ample sources of
hydro-electric power export a large percentage, in some cases
100 percent, of their output to the United States. From the area
served by Ontario Hydro, the United States obtains aircraft,
ammunition, explosives, air frame sub-assemblies and many other
items important to the defence of the United States. Practically
all the electronic gear and most of the building materials which
will enter into the erection of the Canada–United States early
warning radar screen come from Ontario. Ontario industries
supply all the nickel mined and treated in Canada and over 90
percent of the supply available to the United States. They also
account for all the cobalt, calcium and platinum group metals
produced and exported from Canada. These are only some of the
supplies on which the United States relies to a very great
extent for its defence programme.
- 4.
- Of the many factors which have led to this high degree of
industrial development in Ontario, one of the most important is
an abundant supply of low-cost hydro-electric power. The rapid
development of the last large source of low-cost hydro-electric
power in the area, the St. Lawrence project, will help to avoid any serious
disruption of the economic base upon which the industries in the
area are founded. It will also help to strengthen them to the
benefit of both our countries and of the nations with which we
are joined in our common interest.
- 5.
- The Canadian Government strongly urges, therefore, that
everything possible be done to expedite the clearing away of any
impediments to an early commencement of the construction of the
St. Lawrence project
in the national interest of both our countries and the advisers
to the Canadian Government in both Washington and Ottawa have
been instructed to co-operate in every appropriate manner with
United States officials to this end.
[Washington,] October 20,
1953.
