Present

• The Prime Minister (Mr. St-Laurent) in the Chair,
• The Minister of Trade and Commerce and Minister of Defence Production (Mr. Howe),
• The Minister of Agriculture (Mr. Gardiner),
• The Minister of National Health and Welfare (Mr. Martin),
• The Minister of National Revenue (Dr. McCann),
• The Minister of Labour (Mr. Gregg),
• The Secretary of State for External Affairs (Mr. Pearson),
• The Minister of Justice (Mr. Garson),
• The Minister of Veterans Affairs and Postmaster General (Mr. Lapointe),
• The Minister of Finance (Mr. Harris),
• The Minister of Mines and Technical Surveys (Mr. Prudham),
• The Minister of National Defence (Mr. Campney),
• The Leader of the Government in the Senate and Solicitor General (Senator Macdonald),
• The Minister of Northern Affairs and National Resources (Mr. Lesage),
• The Minister of Transport (Mr. Marler),
• The Secretary of State (Mr. Pinard),
• The Secretary to the Cabinet (Mr. Bryce),
• The Assistant Secretary to the Cabinet (Mr. Martin),
• The Registrar of the Cabinet (Mr. Halliday).

. . .

MUTUAL AID PROGRAMME, 1956-57; POSSIBLE TRANSFER OF 75 SABRE V
AIRCRAFT TO GERMANY

31. The Minister of National Defence said the N.A.T.O. Annual Review Committee had recommended, in December last, that the best contribution Canada could make at the present time was the provision of high performance aircraft as mutual aid.¹³

A mutual aid programme of $143 million had been provided for in the estimates for next year. Included in it was an item of 75 Sabre V aircraft. When the Minister was in Paris, he had discussed with the N.A.T.O. military authorities where these aircraft might be sent, and had been advised that the most suitable destination was West Germany. The United States defence authorities had been consulted and had agreed that this would be desirable. It had also been suggested to German officials that they might usefully visit the Air Division in Europe to study the operations and characteristics of these aircraft. Meanwhile, Canadair had been trying to sell F86s to Germany and he understood the German government would soon be calling for bids from Canadair on the F86 and from the United Kingdom on Hunter aircraft. He was most anxious to keep any possible sale quite separate from a mutual aid transfer. In particular, he wished to avoid the European agent of Canadair suggesting that mutual deliveries would be provided if Germany bought some planes directly from Canadair. In the circumstances, if it was thought desirable that the 75 Sabre Vs be transferred to Germany, he would have the Chairman of the Chiefs of Staff discuss the matter with the Standing Group in Washington, and ask the Canadian Ambassador in Bonn to raise it officially with the Germany authorities.

The Minister circulated a memorandum on the detailed mutual aid programme for 1956-57. This included an estimated carry- over of direct production items of $3.75 million and a new programme to maintain facilities of $2.98 million; contributions to infrastructure and military budgets of $16.9 million and $1.5 million respectively; N.A.T.O. air crew training of $53 million and equipment acquired before and after March 31st, 1950, with a total of $64 million, (the most significant item being the 75 aircraft, valued at $39 million).

(Minister's memorandum, Feb. 2, 1956 - Cab. Doc. 23-56).¹⁴

32. During the discussion it was emphasized that it would be highly inappropriate for a private company to intimate that it could influence the government's decisions on mutual aid transfers.

33. The Cabinet noted the report of the Minister of National Defence on the proposed transfer of aircraft to Germany, and agreed that, provided the N.A.T.O. Standing Group agreed, 75 Mark V F86 aircraft be transferred to West Germany as part of the 1956-57 mutual aid programme.

. . .