This afternoon, when I was seeing Livingston Merchant to follow up our conversation of last Friday, June 26, about Geneva, we also talked about the arrangements for the Secretary's visit to Ottawa on July 11. I shall be sending you a separate telegram? on the subject of the USA approach to the resumed Geneva talks.

2. I understand from Merchant that the details for Mr. Herter's meetings in Ottawa were being arranged through the USA Embassy there. He told me that on the USA side participants would be limited to the Secretary, Frederick Reinhardt, Counsellor of the Department of State, and Tyler Thompson (in the absence of Mr. Wigglesworth), as well as probably "a note-taker." He understood that the Prime Minister and you would participate on our side and that you would have two or three officials with you include myself. He has just phoned to say that he understands that there is a possibility that the Ministers of National Defence and Finance may also be present.

3. Merchant said that he hoped it would be possible to avoid any formalized discussion and any precise agenda. The principal advantage of the meeting, he felt, would be to give opportu-nity for you and the Prime Minister and the Secretary to get to know one another better and to give Mr. Herter an opportunity to explain personally the USA estimate of the prospects of the resumed Geneva conversations and generally the relationships between the West and the USSR. I said that for my part I agree entirely that this was the kind of meeting that would be most useful and most appreciated. I thought that you and Mr. Diefenbaker would feel likewise.

4. Merchant asked me whether I thought it would be useful in such an informal gathering to have any discussion on Joint Defence questions. I replied that, while I did not repeat not think that the occasion would be suitable to examine any particular element in our Joint Defence situation, and certainly not repeat not to seek any agreement upon precise defence questions, it would, I felt, be valuable if there could be some discussion of objectives and the general principles of our relationship in matters of defence. I thought that it would be a good opportu-nity for the Secretary of State to relate USA-Canadian defence cooperation to western strategy generally. Merchant agreed that this approach would be helpful on both sides and I have the impression that he will so advise the Secretary.

5. Finally, Merchant asked me whether I thought any economic questions should be introduced. I said on the whole I thought not repeat not. There would be little time if there were to be serious discussion on the other two large topics and, in fact, there were presently no repeat no critical issues between us in the economic field.

6. My conversation with Merchant confirmed the opinion I expressed on Tuesday to both the Prime Minister and you, that the decision of the Secretary of State to suggest a visit to Ottawa en route to Geneva is a genuine evidence of the desire of Mr. Herter (and Merchant who has interested himself very much in this project) to consult with the Prime Minister and you on these issues and also to have the opportunity of becoming better acquainted in relation to these matters of great joint interest.

7. If you have any comment or suggestion as to the conduct of the Ottawa meetings arising from my conversation with Merchant, I would be glad to know as soon as possible so that I may pass the word on to him.

[A.D.P.] HEENEY