The President has been having rather a rough time at home in recent weeks, and especially in the results of a number of "off year" elections. It may be that he is apprehensive that he will be the recipient of a number of troublesome requests or complaints when he is in Ottawa. It seems to me that it would be wise throughout the talks with him to show an appreciative understanding of the domestic political difficulties by which he is surrounded, and also of what he has so far managed to accomplish in dealing with matters of interest to Canada.

2. On the St. Lawrence project, he has acted with speed in completing the final stages of executive action to license the New York Power Authority as the United States entity, and he has also authorized the Attorney General to do what he can to secure an early hearing of the action brought by various interests to prevent the start of construction.

3. On questions of trade, his public statements on the need for greater freedom have been on the whole welcome from our point of view, and he has been exerting an influence with fair success to hold the line against protectionist pressures until the review of United States foreign economic policy which has been undertaken by the Randall Commission10 has been completed. it might be well to remind him of the careful statement of the policy of the Canadian Government which you handed to him last May, at the meeting in the White House.

4. There are, of course, a number of commodities on which early action to our disadvantage is being demanded by lobbies in the United States. There is only one commodity which in my judgment ought to be mentioned to the President -- oats. We have heard that the Tariff Commission¹⁰ has recommended the imposition of a quota of 23 million bushels on the importation of Canadian oats. We have received, confidentially, from a source in the State Department the information that the State Department is recommending to the President that he reject this finding of the Commission, which apparently was made by a majority of four to three members. As he will have to decide the matter within a few days, a reminder of our interest would be timely.

5. There are several issues concerning defence which you might wish to discuss with him:

(a) Northern continental defences

I think he might be told that the Canadian Government is alive to the need for strengthening Northern anti-aircraft defences and that this has been shown by the rapidity with which agreement has just been reached on the construction of an early warning system, roughly along the line of the 55th parallel. Something might be said also about the desirability of manning such installations as far as possible with Canadians.

(b) North Atlantic Treaty

The President, I am sure, will agree that NATO is as important as ever to the defence of the free world and that the recognition of increased risk of attack on North America should not be interpreted as indicating the possibility in any way of an early withdrawal of North American forces from Europe.

(c) Atomic co-operation

You might welcome the readiness of the United States to increase the exchange of information with Canada and the United Kingdom under the modus vivendi of 1948.¹¹ Admiral Strauss (pronounced "Straws"), Chairman of the United States Atomic Energy Commission, this week informed the Canadian and British Ambassadors that it had been agreed by the National Security Council that information on weapons effects could be given to both Governments. This should be of great value, both in training of Canadian forces and in connection with civil defence. Admiral Strauss has also stated publicly that further information can be conveyed on reactors for power purposes. In addition be told Mr. Heeney that the President had authorized him to propose amendments to the McMahon Act permitting the relaxation of some of its provisions by giving further information to friendly governments.

(d) Permanent Joint Board

We have heard that the United States Government intends to strengthen its representation on their Section of the Board, and in particular that Governor Dewey may be asked to assume its Chairmanship. I think that this might be brought up by the President, although I doubt the necessity of discussing it unless he first mentions it.

L.B. PEARSON