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Volume #16 - 825.

CHAPTER VIII

RELATIONS WITH THE UNITED STATES

PART 1

DEFENCE ISSUES

SECTION C

INDUSTRIAL MOBILIZATION AND ECONOMIC CONTROLS

825.

DEA/10817-40

Secretary of State for External Affairs
to Ambassador in United States

TELEGRAM EX 2730

CONFIDENTIAL

Ottawa, December 29th, 1950

Your WA 3303 of December 19 economic and industrial mobilization of the United States.

In the last paragraph of your message you mention Benninghoff's suggestion that the Canadian Government might wish to establish a permanent liaison office with the Office of Defence Mobilization. We asked the Deputy Minister of Trade and Commerce for his comments on this suggestion.

2. Mr. Mackenzie commented as follows:

"Naturally we welcome the suggestion of the American authorities that we establish close liaison with the Economic Stabilization Agency and with the Office of Defence Mobilization and I am certain that we will wish to take advantage of these suggestions.

From the teletype it is apparent that the American position is still in a state of flux and that they have been able to make little progress with their actual organization. As a matter of fact, we find ourselves in much the same position. We have already given consideration to increasing our staff in Washington which of course brings up the problem of space. Nevertheless as is mentioned in the teletype, Mr. Browne, our Commercial Secretary has already established useful liaison with the Office of Price Stabilization in ESA and I am advised by Mr. English that steps have already been taken to make contact with Mr. Wilson's office as soon as he is prepared to enter into discussions with our people. I have asked Mr. English to come up to Ottawa during the first or second week of January so that we might have full discussions on these and allied problems and I would hope at that time that we might arrive at some decisions which we could communicate to the Americans, and, in the meantime, I presume that the Commercial Counsellor's Office will be recognized as the normal point of contact until more permanent arrangements are made."



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