An explanatory memorandum had been circulated.

(Minister's memorandum, May 18, 1951 Cab. Doc. 15451)?

24. Mr. Pearson said that the other North Atlantic countries considered it impor­tant to extend economic assistance to Yugoslavia in order to stabilize conditions there until the next harvest. The United States and the United Kingdom were undertaking large relief programmes. It appeared that the political difficulties previ­ously anticipated at the meeting of December 28th, 1950, in connection with direct Canadian aid to Yugoslavia, would not be serious in this case as the shipments would be small and there was strong evidence that Tito would shortly give a further indication of his desire for cooperation with the democracies by releasing Arch­bishop Stepinec.

25. The Cabinet, after discussion, approved the recommendation of the Secretary of State for External Affairs and agreed that up to $45,000 be included in the sup­plementary estimates for 1951-52, for the purchase of Labrador fish and its trans­portation to Yugoslavia as a gift for purposes of relief.

PROVISION OF ARMS TO YUGOSLAVIA

26. The Minister of National Defence, referring to the discussion at the meeting of May 18th, 1951, reported that the Foreign Military Aid Branch of the U.S. Department of Defense had recently communicated to the Canadian Joint Staff, Washington, a request that Canada provide military aid to Yugoslavia in the form of certain of the remaining U.K.type supplies and equipment that it was planned to make available to the North Atlantic Treaty Organization but which were still unal­located. The letter had indicated that the request was on behalf of the U.S. govern­ment; the members of the Standing Group had considered that it would be desirable for Canada to furnish a substantial portion of the equipment requested; the United Kingdom, France and the United States were taking action to provide arms to Yugoslavia; and, it was proposed that the Canadian equipment requested be made available free of charge at Canadian ports for shipment at U.S. expense to a stock­pile being established by the U.S. government near Yugoslavia or, if possible, direct to Yugoslavia.

For various reasons, the portion of the remaining Canadian stock of U.K.type equipment still available for transfer had decreased in size since communication to the Standing Group some months ago of the list on which the U.S. authorities had based their request. While the matter was still under consideration, it appeared that, if the presentlyindicated requirements of NATO countries for Canadian supplies were to be met, only a limited number of rifles and some range finders could be provided for Yugoslavia.

(Letter, May 15, 1951 to the Canadian Joint Staff, Washington, from the Foreign Military Aid Branch, U.S. Department of Defense)?

27. The Minister of Trade and Commerce pointed out that the Defence Appropria­tion Act, 1950, alone provided authority for the gift of equipment to other countries.

28. The Minister of Public Works suggested that, if it were decided to provide arms to Yugoslavia, they might be furnished as mutual aid under that Act to a NATO country, which could then arrange for their transfer to Yugoslavia.

29. The Secretary of State for External Affairs considered that the channel used by the U.S. authorities in raising the matter was inappropriate for the type of ques­tion involved.

30. The Prime Minister thought that no decision should be reached before it was clear what contributions the United States and the United Kingdom planned to make and until certain political developments in Yugoslavia were clarified.

31. The Cabinet, after further discussion, noted the report of the Minister of National Defence as to the amount of U.K.type equipment that might be available in Canada to meet a request from the U.S. military authorities for the provision of arms to Yugoslavia, and agreed to defer decision on the matter for the present.

⁷³ Voir/See Volume 16, Document 1001.

⁷⁴ Voir le document 260./See Document 260.