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70-3_23 - 1952-04-15

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DEPARTMENT OF STATE Memorandum of Conversation

DATE: April 15, 1952

SUBJECT: Conversation between the Secretary and Mr. Pearson, Canadian Minister of External Affairs, regarding the proposed erection by the USAF of communication facilities in Newfoundland and Labrador.

PARTICIPANTS: The Secretary Stanley Woodward, U. S. Ambassador to Canada

COPIES TO: Mr. Bonbright, EUR Mr. Raynor, BNA Mr. Peterson, BNA Major General Walsh, USAF Embassy Ottawa

The Secretary said that he had not raised this problem but that Mr. Pearson had initiated it with him. Mr. Pearson had said that he did not think the Canadian position was fully understood in Washington. The Canadian Government was worried about the large numbers of U.S. personnel stationed in Newfoundland and Labrador and was reluctant to lease any more territory to the U.S. Government. The Canadian Government was seriously concerned about these two matters. He mentioned sovereignty in this connection.

Mr. Pearson had said that he did not think the U.S. showed enough confidence in Canada regarding the communications project. He felt we should have faith in Canada in connection with mutual defense projects.

Mr. Pearson had stated that if the U.S. insisted on some definite term of years of tenure, Canada would be willing to agree to a period of five years, at the end of which time the facilities could be discontinued by either party. The Secretary said that perhaps the U.S. "should take them up on that".

Mr. Woodward mentioned that it would be very difficult for the USAF to get appropriations from Congress for the communications facilities under the original Canadian proposal for termination of the agreement on twelve months' notice. The Secretary said he thought the five year period would take care of any difficulties on this score. The Secretary also agreed with Mr. Woodward's suggestion that, after the five year term, if either government wanted to terminate this arrangement, the matter would be referred to the PJBD.

EUR:BNA:WLWight/shg