uw ~ amt eR, . ih aee) TOP SECRET eon, Most of the Council members indicated a preference for the majority proposal at the beginning of the discussion. Mr. Gray, however, strongly supported the proposal by the ODM Planning Board menber. He felt that this Government had full policy statements on countries and on areas far less important to us than Canada. l From the point of view of his ow particular responsibilities, Mr. Gray added that such a policy statement could be useful in promoting joint plans for mobilization with the Dominion. The President indicated considerable sympathy for the point of view expressed by Mr. Gray. Secretary Herter, however, noted that there were really only three areas of real difficulty in our current relations with Canada. The first of these was the fact of such heavy American investment in Canadian enterprises. It was very difficult to see how this Government could do anything about that fact. The other two problems related to wheat and oil, and these problems Secretary Herter felt were being successfully dealt with individually. ‘ There being no clear consensus, General Cutler suggested that the Departments of State and Defense undertake to study the feasibility of formulating a full policy statement on Canada. To this end Mr. Gray indicated that he would write letters setting forth his views to the Secretaries of State and Defense. The National Security Council: a. Noted and discussed the report by the NSC Planning Board (transmitted by the reference memorandum of February 14, 1958) on main issues of the Report to the President on the subject prepared by the late Mr. Frank C. Nash and transmitted by the reference memorandum of January 14, 1958; in the light of the views of the Joint Chiefs of Staff transmitted by Ip the reference memorandum of February 24, 1958. Adopted the recommendations contained in the Planning Board report enclosed with the reference memo- randum of February 14, 1958, subject to the following revisions: aen se he (1) Recommendation 1, page 2: follows: -20- Revise to read as ' . le 2 r ya ot Le + TOP SECRET es tet ei Bod Ba Beek: ws Mr. Gray replied that it was precisely to the piecemeal fashion in which we dealt with our problems vis-a-vis Canada that he was taking exception. He felt that we should have a full and integrated approach to the Dominion of Canada. It might not require an NSC policy to effect this integrated approach, but such a policy statement would be a logical means. ’

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