Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

411.4241/11–753

No. 980
Memorandum for the President by the Acting Secretary of State

confidential

Washington, November 6, 1953.

• Subject: United States–Canada Joint Economic and Trade Committee

During the Prime Minister’s visit here last May, United States–Canadian economic and commercial relationships were discussed. The Canadians proposed the creation of a high-level joint economic board which could discuss periodically in broad terms economic policies of mutual interest. All are now agreed on the terms of reference for the Committee, set out in a draft exchange of notes (Tab A).¹ On our side the members would be the Secretaries of State, Treasury, Agriculture, and Commerce. The Committee would normally meet once a year, either in Washington or in Ottawa. Its functions would be to consider matters affecting harmonious economic relations between the two countries and specifically to exchange information and views on matters which might adversely affect the mutually profitable high level of trade between them. The Committee could make recommendations to the two governments.

The establishment of this Committee will go a long way toward satisfying the Canadians that full consideration will be given by the United States Government to Canadian views in this field. If you approve of its constitution, it is proposed to announce its creation either during or shortly before your visit to Ottawa.² This timing would emphasize the Administration’s concern with the problem of United States Foreign Economic Policy, particularly as it related to Canada.

At the May meeting there was also some discussion of the possibility of complete free trade between the United States and Canada. This idea presents many practical difficulties on our side and we are informed that the Canadians under present and probably foreseeable conditions would not consider it. We believe, therefore, that it is undesirable to pursue it at this time.

I shall be grateful if you will indicate your approval³ of the creation and announcement of the Joint Economic and Trade Committee.

W. B. Smith

1. Not printed. For text of the notes exchanged in Washington by Ambassador Heeney and Secretary of State Dulles on Nov. 12, see Department of State Bulletin, Nov. 30, 1953, p. 740.
2. President Eisenhower was scheduled for a State visit to Ottawa on Nov. 13.
3. President Eisenhower’s initials appear at the end of the source text beside the typed notation “Approved: November 7, 1953”.