Reference is made to your memorandum of the 4th of January⁴⁷ requesting progress reports on the following:

(1) What is the present position regarding the acquisition and control of atomic warheads

(a) in Canada

(b) overseas?

(2) What is the progress being made in connection with the Bomarc?

(3) What is the progress being made in connection with the provision of new aircraft for the Royal Canadian Air Force in Canada?

(4) What is the progress being made in connection with the provision for rearming for the Air Defence of Europe?

2. Attached is a memorandum in four parts, as follows:

Part I - Acquisition and Control of Atomic Weapons for Canadian Forces in Canada and Europe.
Part II - BOMARC "B" (Ground to Air Missile).
Part III - New Aircraft for the Royal Canadian Air Force in Canada.
Part IV - Re-equipment at 1 Air Division (CF104).

GEORGE PEARKES

[PIÈCE JOINTE 1/ENCLOSURE 1]
Note du ministre de la Défense nationale
pour le premier ministre
Memorandum from Minister of National Defence
to Prime Minister

TOP SECRET Ottawa, January 6, 1960

PART I - ACQUISITION AND CONTROL OF ATOMIC WEAPONS FOR CANADIAN FORCES IN CANADA AND EUROPE

1. It will be recalled that on 15 October 1958 the Cabinet authorized negotiations with the United States military authorities in regard to the acquisition and storage of defensive nuclear weapons for use by Canadian forces in Europe and in Canada.⁴⁸ These discussions have taken place and a suggested procedure for the acquisition and storage of defensive nuclear weapons for Canadian forces was developed. The problems connected with the acquisition and control of defensive nuclear weapons for Canadian forces were reviewed by the Canada-United States Committee on Joint Defence at a meeting held in Paris on 15 December 1958.⁴⁹ As a result of the deliberations of the Canada-United States Committee on Joint Defence, a statement was made by the Prime Minister in the House of Commons on 20 February⁵⁰ which outlined the Canadian government position.

2. During this same period the negotiations between the United States and Canadian Chiefs of Staff on the general principles regarding the acquisition of these weapons were completed, and on 1 May the Chairman of the United States Chiefs of Staff forwarded a letter to the Chairman of the Canadian Chiefs of Staff in which the United States Joint Chiefs of Staff outlined the general arrangements for the provision of atomic weapons for the Canadian forces. A copy of this paper is attached as Appendix "A".⁵¹ This letter suggested that there should be a government-to-government exchange of notes covering the general principles relative to the provision of United States atomic weapons to Canada and that this exchange should cover such things as broad requirements for United States custody and control, and Canadian responsibilities for the provision of storage facilities, security and the broad system of safety requirements. It further suggested that arrangements for the acquisition of nuclear weapons for forces committed to NATO should be consistent with the NATO atomic stockpile concept. The letter further explained that the detailed technical arrangements pertaining to custody and control would be accomplished on a bilateral basis with the United States commanders under which the Canadian forces would operate; such as, the Supreme Allied Commander Atlantic for maritime forces, the Supreme Allied Commander Europe for forces in Europe, and the Commander-in-Chief, North American Air Defence Command, for the air defence forces of North America.

3. After receipt of this memorandum arrangements were then made to draft the proposed general bilateral agreement for the acquisition of nuclear warheads for the Canadian forces. A draft general agreement has now been drawn up in consonance with the arrangements suggested in the letter from the Chairman of the United States Chiefs of Staff. This draft has been reviewed by the interested government departments and was considered and amended by the Panel on Economic Aspects of Defence Questions on 4 December. The Panel recommended that the ministers closely concerned with this question should be requested to authorize our Embassy in Washington to commence negotiations with the United States authorities for the completion of this note. The Minister of National Defence indicated his approval on 15 December, and approval of the other ministers concerned is now being sought to commence the negotiations. If and when this proposed agreement is signed, negotiations will then be opened with the Supreme Allied Commanders concerned for the detailed agreements for the acquisition and control of nuclear weapons and warheads, as follows:

(a) with the Supreme Allied Commander Europe for the forces in Europe;

(b) with the Supreme Allied Commander Atlantic for the maritime forces; and

(c) with the Commander-in-Chief NORAD for the air defence forces in North America.

A copy of the proposed note is attached as Appendix "B".⁵²

[PIÈCE JOINTE 2/ENCLOSURE 2]
Note du ministre de la Défense nationale
pour le premier ministre
Memorandum from Minister of National Defence
to Prime Minister

SECRET Ottawa, January 6, 1960

PART II - BOMARC "B" (GROUND TO AIR MISSILE)

Subsequent to the approval in principle of the installation of two BOMARC bases in Northern Ontario and Quebec by Cabinet on the 21st of September, 1958, ⁵³ negotiations were opened with United States authorities in respect to an equitable sharing of the cost of this and allied air defence programmes. Although basic agreement has been reached, the formal exchange of notes has not yet been completed.

2. A detailed implementation plan for completing the joint air defence programmes including BOMARC was agreed the 13th of July, 1959. Essentially this plan provides that Canada will undertake all construction and the United States will provide the technical equipment (using Canadian source to the maximum extent).

3. The contract for construction at the North Bay site has been let to the Foundation Company of Ontario and the contractor was formally notified to begin construction on the 14th of December, 1959. Request for tenders for construction at the La Macaza site is scheduled for the 11th of January, 1960, and opening of tenders is planned for the 10th of February, 1960.

4. Development of the BOMARC "B" missile is progressing on schedule and the first missile to be delivered to Canada is programmed for July 1961. The joint implementation plan calls for the La Macaza and North Bay sites to be operationally ready by the 1st of February, 1962, and the 1st of March, 1962, respectively, and to be fully combat ready two months later. It is expected that this programme will be completed in accordance with the above time schedule.

5. The BOMARC "B" when installed will be capable of utilizing either a high explosive or a nuclear warhead. The Canadian share of the cost for the BOMARC portion of the joint air defence programme is $17,290,000.

[PIÈCE JOINTE 3/ENCLOSURE 3]

Note du ministre de la Défense nationale
pour le premier ministre
Memorandum from Minister of National Defence
to Prime Minister

SECRET Ottawa, January 6, 1960

PART III - NEW AIRCRAFT FOR THE ROYAL CANADIAN AIR FORCE IN CANADA

(a) ARGUS (Maritime Patrol Aircraft)

On 10 January 1958 Cabinet approved the procurement of an additional eight Argus aircraft. The last of these aircraft will be delivered to the R.C.A.F. in September 1960, completing the total programme of 33 Argus for use in Maritime Air Command. Total expenditures on this programme will amount to $226,675,000.

(b) CC106 (Long Range Transport Aircraft)

On 16 December 1958 Treasury Board approved the letting of a contract for four additional CC106 long-range transport aircraft making a total order to date of twelve. The first of these aircraft was delivered in November 1959 and production is on schedule with the twelfth aircraft programmed for delivery in March 1961. Total expenditures on this programme will amount to $127,398,000.

(c) CC109 (Intermediate Range Transport Aircraft)

Cabinet approved the procurement of ten CC109 intermediate range transport aircraft on 5 February 1958. Delivery of the first production aircraft is scheduled for January 1960 and the contract will be completed in August 1960. Total funds allotted for this programme are $23,900,000.

(d) SA16B (Albatross) (Amphibious Search and Rescue Aircraft)

Cabinet approved the procurement of ten SA16B aircraft for search and rescue on 3 February 1959. The first aircraft will be delivered in August 1960 and the tenth in January 1961. Total funds allotted for this programme are $13,391,000.

(e) OTTER (Short Range Transport Aircraft)

On 10 August 1959 Treasury Board approved the placing of an order for 27 Otter aircraft to re-equip the R.C.A.F. Auxiliary flying squadrons. The first aircraft will be delivered in March 1960 and the contract will be completed in December 1960. Total funds committed are $3,956,000.

(f) Replacement for the CF100

On the 21 September 1958 the Cabinet decided that . "the Chiefs of Staff should investigate and report upon the requirements, if any, for additional air defence missile installations in Canada and for interceptor aircraft of the nature of the CF105 or alternative types" . A submission based on this report has been circulated to members of the Cabinet and now awaits a Cabinet decision.⁵⁴

[PIÈCE JOINTE 4/ENCLOSURE 4]

SECRET

Ottawa, January 6, 1960

PART IV - RE-EQUIPMENT AT 1 AIR DIVISION (CF104)

On the 14th of August, 1958, Cabinet approved procurement of the CF104 (Lockheed F104G) aircraft to replace the F86 aircraft in 1 Air Division. The Federal Republic of Germany and the Kingdom of The Netherlands have also selected this aircraft for their air forces in Europe. It is expected that a decision to adopt this same aircraft will be made by the Government of Belgium very shortly. Close liaison is being maintained with these countries to ensure that all possible economy is effected in production. For example, the engineering costs for redesigning and converting the existing F104 aircraft to the F104G (CF104) model are to be divided between Canada and Germany.

2. Letters of intent have been issued to Canadair Limited for the airframes and Orenda Engines Limited for the engines, with final contracts to be signed in the very near future. A contract for the fire control system has been let to the Westinghouse Company Limited.

3. The first production aircraft from Canadair will be delivered in July 1961 and the contract will be completed in September 1963. In addition, fourteen dual trainers are being obtained from Lockheed Company with delivery beginning in August 1961 and ending in February 1962.

4. Total cost of this programme is of the order of $450 million.

5. Attached is a copy of a memorandum dated 4 January, 1960 from the Chief of the Air Staff outlining the present status of the CF104 programme.†

⁴⁷Non retrouvé./Not located.

⁴⁸Voir/See Volume 25, document 95.

⁴⁹Voir/See Volume 25, document 135.

⁵⁰Voir/See Volume 26, document 188.

⁵¹Voir/See Volume 26, document 189.

⁵²Voir/See Volume 26, document 191.

⁵³Voir/See Volume 25, document 88.

⁵⁴Voir/See document 292.