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SECRET,.

OFFICE OF THE DEPUTY MINISTER OF NATIONAL DEFENCE

MEMORANDUM

IE 2^P1J
/Lj us fC*

x5 September 1961

o

yi o%y
Chairman. Chiefs of Staff

Draft Multi-National Technical Arrangement
NORTHAG SAS Support Sites
I attach a copy of the third draft, dated 9 August 1961,
of the proposed Multi-National Arrangement governing the establishment,
operation and maintenance of the Special Ammunition Storage Support sites
for Northern Army Group, and a copy of a letter of 23 August 1961 from
the Financial Adviser XOverseas) reporting on two further negotiating
meetings held at HQ NORTHAG on 13 and 20 July, 1961, from which the
latest draft has emerged.
The new draft, which incorporates the substance though not
necessarily the wording of most of the amendments proposed by this
Department, marks a considerable improvement on earlier drafts. It still
requires some further modifications of which the most important appear to
be a clearer statement of the interest of Second Allied Tactical Air Force
in the Support Sites, a more precise definition of certain of the responsibilities of the user nations for logistic support of the US Custodial
Forces manning the sites, and an agreement on an acceptable text of Annex F
dealing with claims. Subject to these modifications and to any comments
which the Department of External Affairs may have on it, I consider the
Multi-National Technical Arrangement an acceptable document.
You will recall that we sent copies of an earlier draft of the
Arrangement to the Departments of Finance and External Affairs requesting
their comments on it, in order that we might be in a position to seek
Ministerial approval of the final draft when the Northern Army Group
negotiations are completed. We have received comments from the Department
of Finance supporting this Department's views on the financial and related
provisions of the draft Arrangement. External Affairs have not yet
replied and we have learned informally that officers of that Department
do not feel that they can usefully comment on the draft Multi-National
Arrangement until the Government have taken a decision on the proposed
Bilateral Agreement between Canada and the United States on the provision
of nuclear warheads for the Canadian Forces.
• • • A,

001367

/ 9

�- 2 -

The position being taken by the Department of External
Affairs in this particular matter places us in something of a
dilemma. If we do not continue to participate in the Northern
Army Group negotiations and to provide Canadian national comments
on the proposed Arrangement, not only will we forfeit any opportunity
we now have to influence the final outcome, but we will also have to
face the probability that the other nations concerned will go ahead
without us, putting us in a position where we are likely to have
to accede eventually to an agreement which may contain some provisions
we would^otherwise have accepted. On the other hand, if we go ahead
with the final stages of the NORTHAG negotiations on a purely
departmental basis, we will have no assurance that the final product,
which we would be morally committed to accept, will be acceptable
to other departments and to the Government.
Ia view of this situation, I have had a memorandum to the
Minister prepared for Mr. Armstrong's signature outlining the background and present status of the NORTHAG negotiations, stating
the problem with which we are faced and suggesting that the matter
be discussed with the Minister of External Affairs. A copy of this
memorandum is attached. I should be grateful if you would confirm
that the latest draft of the proposed Multi-National Technical
Arrangement is generally acceptable to you and if you would let me
have your comments on or concurrence in the draft memorandum to the
Minister.
I am sending a copy of this memorandum and its attachments
to the Chief of the General Staff.

/ i U p . MacNeilliV
Assistant Deputy Minister (Finance)

001368

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