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                  <text>Document disclosed under the Access to Information Act Document divulgue en vertu de la Loi sur I'acces a I'information

TOP SECRET

MINUTES OF MEETING TO DISCUSS
STUDY,OF.NATIONAL:.SECURITY POLICY

July 20i 1955

PRESENT;
Mr; Ri B. Bryce, Clerk of the Privy Council
(Chairman)
General Charles Foulkes, Chairman, Chiefs of Staff
Mr; K. W. Taylor, Deputy Minister of Finance
Mr. J. Leger, Under-Secretary of State for External Affairs
Mr; E. Armstrong, Acting Deputy Minister of National Defence
Mr* R. A. MacKay, Associate Under-Secretary of State
for External Affairs
Mr* G. Ignatieff, Defence Liaison Division, Department of
External Affairs
Mr. \t. R. Martin, Assistant Secretary to the Cabinet (Secretary)

1.
The Chairman said he thought a start should be
made on re-assessing Canada's defence policy and some
preliminary consideration given before seeking direction
on specific terms of reference for the study. It had been
about five years since the main outline of our present
defence programme had been formulated. Now we were
spending approximately ..&amp; billion a year but the whole
background had changed and it was desirable to have
another look at the basic fundamentals on which our policy
was based.
The Chairman of the Chiefs of Staff had
prepared and circulated a document entitled "Re-assessment
of Canada's Defence Policyj Aims and Programmes in the
next five years j 1955-60"*The Under-Secretary of State for External
Affairs agreed. In order to pursue their own work more
effectively, he and his officials felt it was time to
re-consider the assumptions on \&gt;rhich Canada's defence
policy was based. He hoped that in due course it might
be possible to submit jointly, to the Cabinet Defence
Committee, what recommendations, if any, might be made.
It would also be helpful if it was possible to co-operate
in the production of documents which would be prepared
in the course of the study since foreign policy considerations should not be divorced from military considerations.
The Chairman of the Chiefs of Staff had suggested that,
first, the aims and objectives of Canada's defence policy
be examined, then, our commitments, and then an attempt
might be made to establish priorities. This appeared to
be a satisfactory approach. External Affairs would probably
have a good deal to gray on the first matter but perhaps not
too much on the question of commitments.

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BEST AVAILABLE COPY

- 2 -

He assumed there was no such thing as a
Canadian concept of defence, We were part of an alliance ,
which included in it the United States. Decisions of
the alliance, accepted by the U.S., inevitably had a
serious impact on Canadian policy.
3.

The Chairman of the Chiefs of Staff felt it
was urgent to get on with the study proposed. Initially
he would like to see our aims clarified. At present, our
major defence commitment was to I^TO and all our resources
were devoted to that organization. From this he inferred
it was clear we could not embark on small wars except under
the U.N. and with forces borrowed from NATO commitments.
This had quite an impact on the organisation of the
services. Then there was the question of priorities.
Developments respecting the CF105 and missiles of one kind
or another, for example, meant there would not be much
money left over to carry out many of what were now regarded
as Canada's present objectives. We had to be clear what
Our priorities were and then it would be "relatively simple"
to take off the bottom of the list those things for i.\rhich
money was not available.
Another question he would like to see.
examined was that of the Canadian-U.S. projects in North
nmerica. Difficulties were being encountered on all
these and criteria should be laid down as to the share of
the projects Canada might undertake, and the cost. At
present, different decisions were being made on each one.

Another matter that required study was our
"•position vis-a-vis Europe on the one hand, and North
America on the other. Originally our maximum effort had
been placed in Europe but things had now changed. For
example, the Brigade had perhaps a very valuable moral
purpose when it was originally sent to Europe, but was
it of such great value now? Was this the best way of
spending money, in the light of a Contribution to NATO
of 15 German divisions?
these and other problems were "rearing
their head'r more and more in the Chiefs of Staff,
4.

Mr. Brvce thought the re-assessmerit, of our1
defence policy should include a study of the following
problems:
(i)

Does Canada provide for small wars outside
of NATO? Do we anticipate other small wars?
How do we provide for them?

(ii)

Do we anticipate a non-nuclear large war?

(iii)

The question of U.S. forces in Canada and
Canadian forces in Europe,

(iv) Our general policy in relation to the scale
of the effort contemplated.
(v)

disarmament

(vi) China and the Far East

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- 3(vii) Policy in relation to Colombo Plan countries.
Is there a security interest in our Colombo
Plan contributions?
(vii)

Our attitude towards large and small atomic
weapons? Should Canada use small atomic
weapons?

5.

The Deputy Minister of Finance agreed
that these were the sort of problems that should be
examined. He thought a re-assessment should be concerned
with the general scale of bur defence commitments and
broad political priorities. For the last five years the
government had limited its defence spending to about -&gt;2
billion per annum. One could perhaps envisage conditions
compelling the government to set aside a larger share of
the national product for defence. He agreed that
conditions had changed enough in the last five years to
the extent that our whole policy should be carefully
examined. One natter which he thought would be well to
consider was the question of industrial backing for
defence materiel. It was excessively costly to maintain
lines in being producing only ''dribbles" of equipment.
This was a complicated and technical problem.

6.

. General Foulkes agreed it would be
advisable to look closely at our industrial organization
in the light of the new concepts of what the next war
would be like. /ar involving the use of nuclear xveapons
had changed to the point where it was generally felt it.
would have to be fought and ivon with the forces in being
at.the time hostilities broke out. everything depended on
this first phase which was thought might last no longer
than six weeks.. The main effort of the West then should
be to build up a deterrent to avoid war and, if necessary,
win, or at.least not lose, a war in the first phase. If
this defence concept was correct, our attitude toward
reserves of men, material, stockpiling, etc. changed.
Should we, for example, order equipment in a certain line
sufficient for the needs of the required forces in being
at the beginning of a war and then cbse down the assembly
line concerned rather than keep it going for years turning
out small quantities of materiel?

7.

Mr. Brvce said the problem involved a
determination of what type of war we might become involved
in. Did we gamble on only having to participate in a
large war involving nuclear weapons, or would we be
participating in small wars? If so, how much provision
should be made for small wars? What safety factors should
we allow for if the war turned out to be different than
what xve thought it might be?

8.

General Foulkes said that fortunately
the same requirement existed for creating a deterrent as
for fighting phase 1 of a large war. If our main aim of
defence policy was to deter aggression on a large scale
and to do our share in that effort, that cleared the way
to consideration of the necessary priorities.

9.

Mr. Bryce added that it might be found
we couldn't do much beyond our share in creating the
deterrent.

10.

Mr. Armstrong observed that this and
the opening phase of a large war involved the same things.
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Docarrieht disclosed under the Access tormformation Act Document divulgue en vertu de la Loi sur Faeces a Finformation

-—•

THe Under-Secretary of State for Exterrial^
Affairs said that; the. matter o f deterring aggression dn a
large scale and ghase 1' of a large war should be related
to NATO and-.;tovEu^Qpe*.;' There was another; type o f
i:.
war which presumably could occur in. the. Far J^ast whicii .would
probably h ^ a local; and limited war. Canadian participation
in this .type o f war • he, felt j; would arise probably because
of our commitments to'^he United Nations |ihd if the U . S .
had taken the initiative' in obtaining United Nations' „
sanction for intervention. The,U.S. could no longer assume
that a majority bbuld, b e obtained in any.body of the U.N.
in suppbrt^df its Far Eastern policies, Especially if these
involved military.measures, as they had done in Korea.
From this he concluded j tentatively at least, that the U . S .
would be more cautibus before launching into another Korea.
He suggested that the possibility could hot b e ruled out o f
Canada participating with the U . S . in military action
without any U.N. sanction, if trouble developed in the
Pacific n o t too far from ou r shores, for example in Japan.

12.

Mr/ Bryce thought .it would be wrong to
base our policy on certain geographical.assumptions. It
should fit into a general concept. If the object, fo r
instance, was to contain China, should Canada join with the
U.S. in doing so whether there was a U.N, commitment or not?
The world was really one and he thought it w a s obsolete to
think in terms o f certain areas only. Decisions, he thought,
would have" to b e iv.ade therefore on the question of how far
we would prepare our forces to participate in local small
wars.

13.

General Foulkes thought such wars might
require from Canada a token contribution o f , say, a few
naval ships or some aircraft.

14.

Mr;* Bryce observed* in re£&gt;ly, that if we
were associated with the U . S . , the latter would want the
political comfort o f larger fortes than that* Apart from
the character of Canadian forces j should. W e as a nation,
take into account the likelihood or otherwise of joining
with the U . S . in conventional wars?

15.

M r . Armstrong thought this might best be
determined after at least tentative conclusions had been
reached in regard to what our N A T O and N o r t h American
forces might b e .

16.

M r . Bryce agreed but added that this involved
a decision on any role we might play tdth the U . S . in
conventional w a r s . To his mind this went further back to
the problem of China which would appear to him to b e a
trouble-maker for the next 1 0 y e a r s .

17.

M r . Leger agreed that China w a s a: potential
trouble spot. Since it w as probable that t h e U . S . would be
unable to obtain support in the U . N . for its policies, it
was more likely that the U . S . would act through S E A T O than
through t h e U . N .

let.

M r . Bryce observed that apart from SEATO
there was a possibility last spring of becoming involved in
some kind o f an arrangement guaranteeing Formosa. It
looked then that the U . S . might b e drawn into a major war in
the Pacific because other so-called western nations were not
willing to participate in a venture to stop what appeared to

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*

• •

••• ^ ' 5 "

be imminent Chinesemilitary activity. Should we be
prepared to join in a venture of this kind in the hope
that possibly We might prevent the War from becoming a
large nuclear orie"? Should w&amp; ;be prepared, to provide
part of the forpes for a collective guararitee of Formosa?
Mr;-Leger observed that pur air defence system
was now so closely Co-ordinated with that of the U.S.
that it was unavoidable becoming Involved to some extent.
It would be almost impossible to refuse to let the
Americans use the facilities on Canadian soil if they were
engaged in a war with China.
Geheral Foulkes pointed Out that if this latter
eventuality /demurred j the war would not have been a minor
one. The use of tactical atomic weapons at least was
contemplated*
i^; - ' •' "- ... '

Mr. Bryce asked whether it was possible to
limit wars in the Far East? If .Canada, the U.K., and
certain other nations joined the U.S. in some collective
arrangement regarding Formosa,.for example, would that
prevent a great war? Had the passage of time, during
which the Americans seemed to have become more and more
impressed with the horrifying results of the. use of
nuclear weapons, changed their ideas in regard to
employing them?
^Priorities for defence were not absolute.
Possibilities of engagements in Asia certainly had a
bearing on the character of our forces employed in NATO
and North .Americai These questions could not be
considered in isolation. While the study might start
on European arid North American defence problems, the
Far East and China in particular were important secondary
matters which should at the same time be kept in mind*
The next aspect of the problem was the
relative priority to be accorded to the defence of ftorth
America as compared with Western Europe., There were
broad political considerations inherent in this,problem
which could not be overlooked.
General Foulkes said that the deterrent involved
the defence of the whole of the N A T O area, of which North
America was a vital.part* If we accepted the defence of
the riiiciear detfeirent, it seemed to him that our defences
should be weighted in favour of this Continent, because of
the importance of protecting the deterrent capability of
the Strategic Air. Command against the increasing capacity
of the U.S.SiR* to attack this continent by air.
Mr. Taylor agreed that five or six years ago
the real threat was in Europe. Now there was at the very
least an equal chance of a major attack on North America.
Mr. Bryce asked what the obstacles were to
increasing Canada's share for North American defence-at.
the expense of Europe.
General Foulkes thought the: initial approach,
to this question might involve an estimate of what the
Brigade in Europe was costing us and .an assessment of
its usefulness in relation to the relatively large German

%

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�Document disclosed under the Access to Information Act Document divulgue en vertu de la Loi sur I'acces a Finformation

, 6contribution for the future. From a military point of
view, he thought SACEUR would rather see the Brigade
returned to Canada than say thrae or four squadrons
from the Air Division.
26.

Mr. Bryce said that from the point of view of
the alliance it would be more understandable to have the •
air division in Canada. He agreed there were, however,
symbolic factors not to be overlooked. Soldiers on the
ground appeared a more tangible contribution to the
Europeans, and possibly to Canadians, than aircraft.

27.

General Foulkes added that the problems of North
American defence would soon be intensified. Our commitment
consisted of 18 squadrons of all-weather fighters, only
9 of which were regular. It was now generally agreed that
the anxiliaries.could not operate CFlOOs. How was this gap
to be met? The U.S., he felt, would soon ask this question
and if the Canadians answered it could not be done for the
present, the U.S. would then suggest that it meet the
deficiency. The easiest way appeared to hira for Canada
to deal with the problem to bring back some squadrons
from Europe.

28,

29.

Mr. Bryce said that if the Brigade was returned
the manpower involved should be transferred in one manner
or another to air defence. The big problem was the
provision of trained squadrons.
Mr. Armstrong observed that the smallest part of
the problem was the manning of the fighters. Many more
men would be. involved in manning control stations, ground
to air missile sites, etc. All told* air force estimate
of the additional manpower needed to play what it considered
the appropriate part.in the defence of North America was
10^000^ and a probable additional financial outlay of
2 billion to be spent over' a period of two years.
Mr*yirmstrorig wondered to what extent the proposed
re-assessment would be undertaken independent of financial
considerations.

30.-

Mr. Bryce said it could not be.

31.

Mr. Taylor agreed. He thought that there should
be an initial re-assessment of the assumptions governing
our defence first. Financial considerations would have to
be taken into consideration in.establishing priorities for the
various defence projects.

32.

Mr. Bryce said that one big factor in the study
was that we were a prisoner of the past. If we were
starting afresh on defence plans we would probably have no
Navy. There would be radical changes in the character of
the other forces. However, pressures were such that many
changes just could not be made. Freedom of action in the
re-assessment was therefore limited, but a fresh look was
needed. For example, how important was the defence of
Europe. He thought it was now less important for the
•Russians to attempt to secure the whole of the Rhur complex
than it was to overcome air fields in the U.K. and North
America from which long-range bombing strikes could be
launched. In five years' time, Europeans might be
relatively much safer than North Americans.

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J. 7 L

Mr. Leger said it would be important not
to overlook recent Soviet trends. The Russians wanted the
U.S. troops out of Europe. Personally, he thought that
in four or five years' time they might well be successful
in this objective. The Russians could appeal to lar&amp;e
elements in France, Italy and even in the U.K., and make
concessions like recent ones respecting Austria and in
connection with the acceptance of the international atomic . '.
pool. He could also foresee, if present trends in Soviet
conciliatory attitude continued, some difficulty in
maintaining defence expenditures. It might be difficult
for a Minister of Finance to maintain Canada's defence
budget at its present level unless possibly if the U.S.
government and the U.S. public continued to demand more
expenditures on continental defence. An example of the
kind of reaction he had in mind was the statement of the
French Premier in the current meetings at Geneva which
seemed to go further towards meeting the Soviet position
than the U.K. and the U.S. had. There was no doubt that
the meeting at the summit, whether or not any tangible
results were achieved, would have an effect on U.S.
opinion, if this were followed by meetings of the Foreign
Ministers at which a fuller climate of confidence were
created, the Europeans might be in a mood where they no
longer thought our troops were necessary on their continent
for their defence. Germany was the major problem in
Europe. He doubted if Russia would accept our conditions
in relation to Germany, but nevertheless if they played
on the French fears of German militarism while advocating
a European security system involving the gradual thinning
out of U.S. troops, public opinion in Europe and even
in the U*S. could, he felt, change radically in a short
space of time.
Mr. Bryce thought the will to,coexistence
was greater but the fundamental feature of the case was
that this was an armed coexistence. The shifts in public
opinion added to the problem of maintaining the strength
which would be necessary to enable us to coexist.
Mr. Bryce thought another problem which we
should look at was disarmament. How, if at all, should
our views be changed in the light of recent developments?
General Foulkes was of the opinion that
nothing would be achieved in this field unless a way was.
found of carrying out effective international inspection.
There was not sufficient good faith between the two sides
and therefore disarmament should be confined to what was
practicable.
Mr. Leger pointed out that until recently
the position had been frozen by lack of a U.S. response.
However, with the appointment of Mr. Stassen there were
indications that the U.S. was now willing to consider new
ideas.
Mr. MacKay added that one thing being
examined and considered was the question of checking on
the means of delivery of nuclear weapons.
Mr. Bryce asked whether it was in the
interest of the free world to have disarmament. We might
be roanoeuvered into a very difficult position vis-a-vis
our own public opinion. It was possible to conceive an
ill-informed public opinion obliging governments to weaken

�Document disclosed under the Access to Information ActDocument divulgue en vertu de la Loi sur Faeces a Finformation

- 8 'their defence effort even though this was not in the
public's best interests,
40.

Mr. Leger thought we should clarify Soviet
intentions about disarmament. The recent Anglo-French
proposal was acceptable to us, and the Russian representative at the last talks had put forward proposals on
conventional armaments which were similar. If these were
turned down, there would be a serious effect on our own
public opinion. The deterrent to aggression was SAC. The
West had a special interest in considering plans for the
regulation and reduction of conventional armaments and
armed forces.

41.

Mr. Bryce asked whether it was worth modifying
our proposals for inspection. He said it would obviously
be necessary to look at disarmament.

42.

General Foulkes said another problem which
should be examined was the question of military support
of civil defence. There had to be a means of organizing
the population to withstand as best it could the terrible
onslaught if ever it came.

43.

The Committee, after further discussion,
agreed:
(a)

that the following papers be prepared for
consideration at a meeting about three, weeks hence:
(i)
(ii)

nims of Canadian Defence Policy (by
National Defence).
The International Setting of the Aims
of Canadian Defence Policy (by External Affairs).

it being understood that these would not be drafted
in isolation;
(b) that after these first two papers had been drafted
and considered in a preliminary way, other papers might
be prepared on the following:
(i) The expanding Needs of Air Defence' of North
America and the Canadian role in it*
(ii)
(iii)

The role of the Canadian Forces in Europe.
The scale of the Canadian Defence Effort
(including financial considerations) .

(iv) Should Canada plan to aid in the containment
of China directly or indirectly,
(v)
(vi)

Survival policy in civil defence or otherwise.
Disarmament policy, and

(c) at the next meeting consideration be given to the
terms of reference of the proposed study of National
Security Policy, the obtaining of ministerial approval
for it and of the method of carrying it out.

July 26, 1955.

W. R. Martin,
Assistant Secretary to the Cabinet.

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