October 31, 1952
MEMORANDUM FOR S/S
In the Secretary's conversation with Foreign Minister Pearson this morning, the latter raised the question of the St. Lawrence Seaway Project. Pearson said that the Canadian Government is quite concerned about the delays which are keeping the project at a standstill and wondered what the Secretary might be able to do. He said that the International Joint Commission had approved the application of the Seaway and Power Authority but that it was believed one member of the Commission had dissented from the majority finding. He understood that this person was a Federal Power Commission engineer and that, if he had in fact dissented, it was understood to be on the grounds that a larger percentage of the cost of the project should be borne by the seaway operation as opposed to the power operation. The Canadians thought it was very undesirable to open up the ratio question at this juncture since the matter had been worked out carefully and reexamination would only cause a further delay. Mr. Pearson said he also understood that Secretary Chapman had agreed that the Power Commission could extend the time limit for conducting public hearings until the end of this year. Pearson said this would cause the matter to drag on and that nothing would happen for a long time. He said that, as a result, the present Canadian Government would suffer since it was already under sharp attack in the Canadian Parliament by Opposition Conservatives who charge that the Government is not really desirous of implementing the project.
The Secretary wants to be fully informed on this matter upon his return to Washington. He wants to know where we are on the project and what he can do along the lines indicated by Pearson. The Secretary said it was his understanding that the President had directed Secretary Chapman not to interfere in any manner that would delay implementation of the project. He wondered if this were so and if the provisions of any such directive were still in effect.
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