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- Document disclosed underthe Access to Information Act

)/ — • D Decurelt dvulgdeen vertu de la Loi sur l'acces a rinformation

0 L-- • /

DEPARTMENT OF EXTERNAL AFFAIRS

SECURITY

REFERENCE SLIP

—

PCO
DM/DDP
DM/Pub lie Works
DM/DND
DM/Transport
RON
Treasury Board
Canadian Army
RCAF______
. &lt;CMD--- ==&gt;

SECRET .
Ottawa,

To: DM/Health
Joint Staff&amp; Welfare
- —M/N a t i on a 1 Rev enue—2

March 14,

.Ce

1963

C/4

DM/Northern Affairs
Northern Canada Power Com.

The documents described below are attached for your information:

Minutes of an inter-departmental meeting held on February 22
re Phase-Out of SAC Refuelling Facilities
Also referred to:

0/ 421 '

L

0880

—

A. R. Menzies

Ext. 67B (Rev. 2/54)

Under-Secretary of State
for External Affairs

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Document disclosed underthe Access to Information Act
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S E CRET

March 4, 1963
INTER-DEPARTMENTAL MEETING

PHASE-OUT OF SAC REFUELLING FACILITIES
February 22, 1963

An inter-departmental meeting was held at 2:30.p.m.,
February 22, 1963 in the Large Conference Room of the East Block to
discuss the proposed phase-out of SAC refuelling facilities at
Frobisher, Churchill, Cold Lake and Namao.

Present were:
Department of
External Affairs

Mr. Ross Campbell (Chairman)
Mr. A. R. Menzies
Mr. J. Si Nutt
Mr. G. Rejhon

Department of Defence Production

Mr* M. L. Card

Department of National Defence

Mr. G. Y. Loughead

Royal Canadian Navy

Captain J. Pickford
Cdr: J. Carling
Col, H.H.A. Parker
W/C P. Holloway
S/L W. Morgan
Col. R. G. Kingstone
S/L J. Dixie

Canadian Army
Royal Canadian Air Force

I

Joint Staff 4.
Department of National
Health and Welfare

Dr. J. S. Willis
Dr. J. H* Wiebe
Mr. I. C. Ellis

Department of Northern Affairs
and
National Resources
i

Northern Canada Power. Commission

Mr. F.J.B. Cunningham
Mr. G. W. Rowley
Mr. A. Bi Yates.
Mr. E. W. Humphrys

Privy Council Office

Mr, D, B. Dewar

Department of Public Works

Mr. A. s. Gardner

Department of Transport

Mr. J. E. Devine
Mr. J* Li Hurley
Mr. E. P. Flynn

Treasury Board

Mr. J. L. Fry

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2 -

2.
Mr. Campbell said that the meeting had been called to
begin an orderly examination on an inter-departmental basis of the
full implications of the proposed phase-out of the four SAC
refuelling facilities in Canada. The United States appeared to be
cons idering this phase-out from a strictly military viewpoint but.
as the varied make-up of the meeting indicated, the Canadian
interest in the phase-out had a much wider scope.. The chief functions
of the committee would be to determine the principal impact that the
phase-out will have on the various Canadian interests and to prepare
a report to Cabinet*
3.
Mr. Campbell reviewed the background of the problem.
Initially, last December the USAF had informally notified the RCAF
of their intention to phase-out the refuelling facilities. At a
meeting of the PJBD in February the USAF Member indicated that with
phasing-out of the B-47 Bomber the requirement for refuelling bases
would no longer be justified. He had indicated that present planning
called for phasing out facilities at Fort Churchill and Frobisher by
July 1, 1963, and Gold Lake and Namao by July 1, 1964.

4.
With regard to termination procedures, Mr. Campbell called
attention to paragraph 12 of the Annex of the Note of June 20, 1958
concerning the operation of the aerial refuelling facilities:
"The U. S, may operate the aerial refuelling facilities project for
a period of ten years, or such shorter period as agreed upon by the
two Governments in the light of their mutual defence interests".
He went on to say that the United States Embassy had indicated that
the U. S. Government had decided not to inform the Canadian Government
officially of its intention until after the federal election on
April 8.
There were a number of general problems, apart from each
5.
Department’s particular problem:
,

(1) The Order of Priority of Phase-Out
In desiring to phase-out Churchill and Frobisher first,
the USAF had ohosen the two which presented the greater difficulties
for Canada, At both bases, and Frobisher in particular, a number
of adjustments would have to be made in present plans and
alternative use of the facilities involved a number of departments,
the various interests of which required to be reconciled. Namao
and Cold Lake, on the other hand, were of concern only to the RCAF.

(2) Timing of the Phase-Out
It seemed that the USAF had left itself little flexibility
since it appeared that no funds had been programmed for these
Operations after the proposed phase-out dates, i.e. July 1, 1963
for Frobisher and Churchill. There had, however, been some
intimation since the PJBD meeting that it might prove embarrassing
to the USA itself to liquidate completely the refuelling facilities.
The information reseived from the U. S. Embassy on the intention to
withhold formal notification had referred to "other important
reasons" not apparently connected with Canadian considerations.

(3) Withholding Formal Notification
Withholding formal notification of the United States
intention to withdraw from these bases would make even more
difficult the Canadian task of meeting the deadline because it
would not be possible, until such notification had been received

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and without precise knowledge of the U. S. intentions, to set in
motion the various procedures for terminating the agreement,
halting supply lines and making arrangements for alternative
uses of the facilities. In view of the short time which would
be available to discuss fully the main aspects of this matter
and to secure a decision from Cabinet, it seemed desirable that
we should ask that the United States send formal notification
of their intention as soon as possible. It would be understood,
of course,'that there would be no publicity given to such
notification.
(4) Publicity

There should be no publicity over the next two months.
It had recently been agreed with the CCOS that there should be
no press release notwithstanding the recent press "leak" about
the phase-out at Churchill and Frobisher. Ministers did not
wish attention drawn to the proposed phase-out and any questions
should be replied to with "no comment". We would inform the
U. S. that no publicity was intended.

There followed, general discussion of the points raised by
@ethe Chairman
during which it developed that the Government's plans

for Frobisher could be substantially affected by the proposed

phase-out, Mr. Cunningham (Northern Affairs) pointed out that
approximately $12 million of contracts were due to be let in April
by public tender and a $3 million contract was already under way.
This contracting had been planned without reference to the latest
USAF proposal. Mr. Gardner (Public Works) said that current plans
could be substantially affected by the proposed phase-out and
Consequent availability of buildings at Frobisher. On the Northern
Affairs, and Public Works side, there was a definite interest in
obtaining early possession of buildings vacated at Frobisher.
Mr. Loughead (National Defence) said that the priority of phase-out
as between the two western and two eastern bases was immaterial to
his Department. The actual timing in each case would, however, be
relevant to the need to terminate contracts for fuel and labour.
At Namao and Cold Lake only 30 days notice was required. The
requirements of other Departments were obviously the key ones.
Mr. Devine (Transport) said that from his Department's viewpoint it
was immaterial when SAC left Frobisher. Disposition of POL and
alternative use of tankage would be a problem, but these could be
worked out.

7.

Wing Commander Holloway said that the RCAF understood that
the USAF intended vacating the refuelling facilities completely and
that the buildings and other fixtures would revert to Canada. He
believed, however, that it was intended that there should be a
run-down period after July 1, 1963 since the facilities were intended,
he thought, to be fully operational up to June 30.
8

It was agreed.

(a) that the Department of External Affairs should inform the United
States Embassy as soon as possible that:

(i) the original order of priority of phase-out cuegag ted
by USAF, i.e. Frobisher and Churchill first, was agreeable
to Canadian authorities;
( ii) as to timing, the Canadian authorities would like to know
as soon as possible when the USAF proposed phasing out
and what buildings would be available and when. So far
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’as Frobisher was concerned the original date for phase-out
would be acceptable. (If any precise information were
desired by Departments on aspects of timing or on
accommodation availability including any continuing requirements of USAF, these should be communicated to External
Affairs (Mr, Nutt on local 27-921) for collation*. Subsequently arrangements could be made to obtain clarification);

(iii) to this end the United States authorities should be invited
to present a draft note as soon as possible and in.any event
before March 15;

(iv) the United States authorities should not be invited, for

the moment, to send teams to Ottawa and the bases to discuss
disposition of facilities but should be invited to consult
through diplomatic channels where civilian departments
were concerned and through service channels where DND only
was concerned.

90The Chairman then invited the RCAF . the Canadian Army and
Department of Transport Representatives to brief the meeting on the
present situation at Namao and Cold Lake, Churchill and Frobisher
respectively.
S

(a)

Namao and Cold Lake

Wing Commander Holloway said that with regard to Namao and
Cold Lake, there was no major problem except the loss of revenue
to the Canadian economy generally. Excluding internal expenses
such as salaries for USAF personnel, the USAF has been spending
approximately #1.6 million a year for wages to civilian
employees, petrol, oil and lubricants, etc., to maintain
these facilities. The loss of revenue factor of course applied
to all four bases.

The question of contracts should not present a problem in
that 30 days’ notice was considered sufficient for terminating
them. The same 30 days’ notice was required for laying-off
any civilian employees of whom some 200 to 300 were involved
,at Namao, Cold Lake and Churchill. All Canadian civilians
employed for USAF’s operations were hired by the RCAF which was
reimbursed by USAF. It was probable that many of these employees
could be absorbed by the RCAF. As for USAF personnel living
off the base, there were very few at Cold Lake and possibly
about 100 from Namao living in Edmonton.

(b)

Churchill
Colonel Parker said that at Churchill there are 130 civilian
employees employed by the Canadian Army for USAF. If the USAF
refuelling facility was phased-out completely, probably only
about 50 of these would be retained.

With regard to buildings, the permanent "Alert” building
did not seem to be wanted by anyone because of its isolated
location. There was a good chance that the nose hangars and
shops might be.put to use..

In response to a question by DOT, Colonel Parker said that
it was not expected there would be any substantial effect on
the availability of diesel fuel at Churchill. As for tankage
availability, there would be storage capacity for some
3-4 million gallons.
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Squadron Leader Morgan added that it might be possible to
make good use of tankage capacity at Churchill by cross-linkage
to the U. S. tankage. One and one-half miles of pipeline
exist at Churchill. Use of the USAF tankage would be
contingent upon a satisfactory cleaning. This might prove
difficult, particularly if USAF decided to abandon some fuel.

Mr. Loughead said that these were administrative details
and agreed that if necessary USAF might be requested to
dispose of remaining fuel supplies. As far as alternative
use of facilities abandoned by USAF at Churchill was concerned,
since the base at Churchill was a DND responsibility, the USAF
facilities there would in turn become that Department's
responsibility. Mr. Loughead agreed, subsequently, that there
would be no objection to the Department of Public Works
collating information on the facilities at Churchill and other
departments' requirements for space. He mentioned that DND
had available the construction plans, including detailed
layouts of buildings at Frobisher, which might be useful to
departments concerned with alternative uses of facilities at
Frobisher. He believed, in response to a question, that the
proposed phase-out and consequent aval 1 ahi 1ity of space would
not involve the Provincial Government. Discussions were under
way with the Provincial Government on hospital facilities but
this was a different question.
Mr. Cunningham mentioned that his Department might have
a requirement for space at Churchill depending on whether it
was decided to locate a regional headquarters there or at
Rankin Inlet.

,c )

Frobisher
Mr. Hurley (Transport) said that, with regard to Frobisher,
DOT had a working agreement with the USAF. Contracts for
maintenance and with suppliers called for 90 days’ notice.
If the USAF planned to be out of Frobisher by July 1, it would
be necessary to know very soon, in order to prepare for
termination of the various contracts.

There were 120 personnel employed by DOT in its various
operations at Frobisher. These would either have to be released
or new jobs found for them.

USAF was responsible for any termination charges on
contracts. They were 190 1 * hl e for chorres incidental to
of cpiyoes to
closing the facilities, e.g. tra
southern Canada and for disposition of existing food urrling
and POL.
It cost the USAF appr oximately $3 million a year to
operate their facilities at Frobisher exclusive of the
operation of aircraft. On top of this DOT operations cost
$1,750,000 per year. If the USAF left, not only would the
entire USAF expenditure of $3 million be lost but the DOT
operations would also have to be cut back.

Use of Frobisher by commercial airlines had been dropping
off significantly in the past few years. Only a very few
international flights still used Frobisher and it was being
It appeared that this
used mainly for emergency landings.
trend will continue since jets were not expected to use

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6

Frobisher. While Frobisher was available as a refuelling stop
for international flights it was thought there was no
obligation under ICAO tomaintain it as such. It was agreed
that existing air agreements should be examined to determine
whether any amendments would be required as a result of the
discontinuance of emergency landing and refuelling facilities
at Frobisher. To this end External Affairs would consult
with DOT.
Mr. Cunningham said that Northern Affairs had one
important requirement with regard to Frobis her, and that was
to know the exact dates on which the various buildings would
be available for use by the Canadian Government and incidentally
what space would be available to Northern Affairs. The
$12 million contract programme could not be altered until this
information was available. If there were any delay beyond
April then a year's operations would be forfeited.
Mr. Gardner Invited all interested departments to submit
their views on accommodation and particularly their requirements at Frobisher to the Department of Public Works.

Mr. Loughead said that any planned use might consider
relocating the RON at Frobisher which in turn would enable it
to give up the accommodation it presently occupied. He also
reminded the meeting, for the record, that while Frobisher
was operated by DOT, in fact it was legally the property of
DND. In response to a question, Mr. Loughead said that it
was not planned to put the USAF facilities at Frobisher to
an alternative military use.
In response to a question from Mr. Dewar, Colonel Kingstone
said the question of the defence of Frobisher was before the
Chairman, Chiefs of Staff.
10.
The Chairman summed up as indicated on page 3 and it was
further agreed that:
( a) the Department of Public Works would review and assess

Departmental requirements at Frobisher and would allocate
space in the light of information on availability received
from the U. S. authorities. That Department would also collate
information on the availability of space and Departmental
requirements at Churchill, it being understood that final
responsibility for allocating lay with DND;

(b) inter-departmental consideration of alternative use of

accommodation might be carried on under a "confidential"
classification;

(c) the record of the meeting should be distributed to Departments
represented and in addition to the ROMP and Department of
National Revenue;

(d) External Affairs with DOT would examine existing air agreements

to determine whether any amendments would be required as a
result of the discontinuance of emergency landing and refuelling
facilities at Frobisher.

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