Reference: Our telegram 164 of February 7.?

Repeat Brussels 2; Ottawa please pass copies referred to Bonn and London.

OEEC MINISTERIAL COUNCIL

The nuclear energy problem will be an important item on the agenda of the Ministerial Council, and in view of Canada's known position as a producer of uranium, it would appear advisable for us to make a statement on the subject. It is reported that the meeting of the Foreign Ministers of the Brussels powers is scheduled for February 11-12 and that there will be on February 15 a meeting of Heads of Delegation of the Messina Conference to perfect their report on the new plans for integration. The precise tactics that the six countries may adopt at the OEEC Council will depend upon the outcome of the political decisions taken at the earlier meetings. We assume, however, that you would not, unless some factors in the situation change radically, wish us to take any stand in the OEEC against Euratom. It appears to us that the Canadian interest, from the nuclear energy point of view, at the OEEC Ministerial Council is not primarily to attempt to influence the issue one way or the other, but rather to assure that, if the OEEC does pursue its nuclear energy discussions (either independently or with a view to co-ordinating with Euratom) Canada will play the part in those discussions to which it is entitled by its position as a producer of nuclear materials. We give below the text of a draft statement on which we should be glad to have your comments. We should also like to have your views as to the validity of the assessment of the Canadian position which is given above, since, however it is worded, the precise effect of your statement will depend to some extent upon its timing.

Text Begins:

The Canadian Delegation has followed closely the important discussions regarding the development of the peaceful uses of nuclear energy which have been taking place in the OEEC during the last three months. The excellent report prepared by the Working Party of the Council, and the estimates now being made by the Commission for Energy of total future energy demand in Europe, both underline the part which nuclear energy will be called upon to play when the other conventional forms of energy have reached or passed their capacity - possibly after 1975. In these circumstances, it is wise and foresighted to examine now, when the possibilities of the new industry are just being revealed, what can be done to co-ordinate its development and avoid overlapping or waste of effort.

As members of the Council are well aware, Canada is one of the world's largest producers of uranium ore. In view of our special position in this field, the Canadian Delegation has earlier stated - and I feel that I should here repeat - that the Canadian Government would welcome the opportunity to market uranium within a suitable international framework. Though as one of the twelve governments now engaged in consultations in Washington to consider the possible status and functions of the proposed International Atomic Energy Agency, we would not feel free at the present time to prejudge the outcome of these discussions, neither would we foresee any necessary incompatibility with the other proposals now being considered.

If therefore the members of the OEEC are agreed that they wish to pursue their examination of the possibilities of action in the field of nuclear energy, the Canadian Government will continue to co-operate to the best of its ability and experience, and in particular is prepared to send a high ranking expert to participate in the work of a special expert committee such as that envisaged in the Working Party's report. Text ends.

[L.D.] WILGRESS