In February the Canadian Commercial Corporation requested permission to quote to a private firm representing the Government of Israel on the supply of fifty 25 pounder guns together with 50,000 rounds of ammunition. It was determined that neither the guns nor the ammunition could be supplied by the Department of National Defence, Canadian Arsenals Limited or Crown Assets Disposal Corpora­tion. The Canadian Commercial Corporation advised the firm that a quotation could not be given.

2. The Consul General of Israel in Montreal wrote to us on April 4th requesting a quotation on twenty five guns of the same calibre with 25,000 rounds of ammuni­tion and accessories. This new request was based on the Consul General's belief that during the past few months changes had taken place in Canada's armaments supply position which would now permit a quotation to be made. The question of availability was explored and we are informed by the Department of National Defence that the army is not prepared, at the present time, to reduce its stocks of these guns, ammunition and accessories, and by the Department of Defence Pro­duction that the material requested is not available from current production and it is not anticipated that it will be in the foreseeable future.

3. The Joint Intelligence Bureau of the Department of National Defence had no objection to a quotation, but this was before the recent flare-up on the Israeli-Syrian border. It has been our practice to consult Washington and London before approv­ing exports of arms to the Middle East. We have not done so in this case because of doubts regarding availability, which we thought should be clarified first.

4. We do not usually give our reasons for refusing an export permit application or permission for a quotation, and, unless you otherwise instruct us, we propose to let the Consul General of Israel know that we are unable to submit a quotation at the present time, nor is it expected that we will be in a position to do so in the foresee­able future.³⁷

A.D.P. H[EENEY]

³⁷ Note marginale :/Marginal note:
Approved "for" Minister May 9 A.D.P.H[eeney]