The Canadian Commercial Corporation recently informed us that the Government of Israel has asked for a quotation on 800 .30 calibre machine guns and mounts. A couple of days ago we were approached by officials of the Israeli Embassy who explained that when they received a quotation from the Canadian Commercial Corporation on 300 machine guns last August they decided that the price was so advantageous to them that it would be cheaper to get all the guns they claim they need from us rather than to manufacture them in Israel or obtain them from other sources. It was explained to them that the Canadian Government might have some difficulty in agreeing to the sale of a large quantity of machine guns, but that it would be helpful to know what the intentions of the Israeli authorities were respecting these guns. Specifically, the question was raised whether these units, or some of them, were intended for replacement purposes or whether they would be net additions to Israeli stocks. The answer given was not altogether clear-cut. At one point it was suggested that all 800 guns were needed to replace unserviceable weapons. We couldn't help raising our eyebrows a trifle skeptically about the notion that the Israelis should happen to have just 800 machine guns that don't work. At that point the Israeli representatives went off on a different tack and said that what they really have is a deficiency in their planned establishment amounting to 800 guns which they intend to make up. The upshot of this very informal discussion was that the Israeli representatives said a letter would probably be sent from Mr. Comay to Mr. Pearson bringing this case to his attention and explaining it (?) to him.

2. In the meantime, we have not consulted anyone about this order, as we were waiting to hear the Israeli explanation about the requirement of these weapons. Now that we have had it, and have incidentally been told that the Israelis have 10,000 machine guns (for what that is worth), I should be grateful for your views on whether we should now consult the United States and United Kingdom authorities about this order. You may wish to wait until the Minister receives a letter from Mr. Comay and then seek his views on how widely we should consult the above-mentioned Governments at this time. I would hesitate to seek their views before knowing whether you or the Minister think this should be done.⁸

A.E. RITCHIE