Foreign Relations of the United States, 1958–1960, Western European Integration and Security, Canada, Volume VII, Part 1

298. Telegram From the Embassy in Canada to the Department of State⁰

Ottawa, March 10, 1959, 6 p.m.

671. Reference: Embassy telegram 669.¹ When Prime Minister received President’s letter on oil import regulation on March 10, he expressed extremely serious concern over impact of regulation coming as it does on top of Arrow CF–105 decision and vote of House Committee on Chicago diversion.² He said he knew how hard President had tried to find proper equilibrium in oil and how great were pressures upon President in this matter. He deeply regretted unfortunate timing of announcement and said this action might have far more serious consequences than anyone might now contemplate. He referred to heavy tide of personal mail from people all over Canada as showing far more bitterness towards United States than he could previously recall, all in terms of CF–105 decision.

He was consequently most apprehensive over public reaction to oil regulation. He made point of saying feelingly he hoped “tripartite” offer was genuine and meaningful.

In course 10-minute conversation, Prime Minister repeatedly interjected how deeply he concerned over oil action in terms overall relations.³

Rewinkel

0. Source: Department of State, Central Files, 411.006/3–1059. Secret; Priority; Limited Distribution.
1. Telegram 669, March 10, reported that President Eisenhower’s letter (Document 297) had been delivered personally to Diefenbaker at 3:45 that afternoon. (Department of State, Central Files, 411.006/3–1059)
2. Regarding the Avro Arrow CF–105 decision, see Document 292. The Chicago diversion decision refers to a report of the House Committee on Public Works, March 9, to require a study of the effect of diverting more water from Lake Michigan into the Illinois Waterway. For text of the report, see House of Representatives, 86th Congress, 1st Session, House Reports, vol. I, Report No. 191.
3. On March 14, Prime Minister Diefenbaker wrote to President Eisenhower thanking him for the letter but expressing his “deep and continuing concern” about the decision. The letter was transmitted in telegram 695 from Ottawa, March 17. (Department of State, Central Files, 411.426/3–1759) On April 29, Eisenhower again wrote to Diefenbaker informing him that, as of April 30, the restrictions on Canadian oil would be lifted. (Ibid., 411.426/4–2859) Copies of a letter from Ambassador Heeney and a statement in Parliament by Diefenbaker both thanking the United States for the change are ibid., 411.426/5–159.