Reference: Our Letter ET-156 of February 26, 1960.†

CANADA-UNITED STATES TALKS ON EXPORT CONTROL PROCEDURES

As indicated in our reference letter, we should be grateful if an External Affairs officer on your staff could be included in delegation for the talks beginning May 17. We understand that T&C will have a number of representatives both from Ottawa and from the Embassy, led by Mr. Schuthe.

2. We are most interested in Item 9, licensing to Cuba and the Dominican Republic, and Item 10, civil aircraft.

3. It might be appropriate for the External Affairs representative to speak on Item 9. He might commence by saying that in July, 1959, Cabinet decided in view of the unstable political situation in the Caribbean, that permits to export significant amounts of military equipment to the Caribbean area, except Colombia, should be refused.¹ This policy has been in effect ever since, and unlike United States policy, there was no relaxation last autumn. In effect, the policy has included not only items in Group 8, Part I, of the export control list but also other items which, although designed for civilian purposes, are in ordinary usage by armed forces. You have considerable information on file dealing with the Cuban application submitted last autumn for a Beaver aircraft. This application was only approved when we were satisfied that the aircraft was for the personal use of Mr. Castro.²

4. If questioned you may state that our general policy of exports of military equipment is now under review and consequently you are not in a position to state what our policy will be in the future. You might indicate, however, that for practical purposes there appears to be little likelihood of any easing in the present regulations.

5. As for Item 10(b) Canadian policy regarding export licensing for civil aircraft, will undoubtedly be influenced by the imminent review by Cabinet of policy with regard to export of military equipment since civilian aircraft capable of being used for military purposes will come under consideration in the review pending a decision on this review. It is the view of officials that where aircraft of this type are destined for a military organization of a foreign government (with some obvious exceptions) or where the supply might represent a substantial or significant addition to resources available for military purposes, an export sale might become a matter of concern, and should be treated as though it were a sale of military equipment to the country concerned. If this comes to represent Canadian policy the sensitivity of the area to which the aircraft is destined would become of prime importance. We doubt if a Cabinet decision will be taken before the forthcoming meetings. If one were taken we would inform you by telegram.

¹Voir conclusions du Cabinet, 30 juillet 1959./See Cabinet Conclusions, July 30, 1959.

²Voir volume 26, chapitre X, 2e partie (b)./See Volume 26, Chapter X, Part 2 (b).