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                  <text>THIS DOCUMENT IS THE PROPERTY OF THE GOVERNMENT OF CANADA

THIRD DRAFT

'

SECRET
May 30, 1957.

MEMORANDUM FOR MINISTERS
Atomic Weapons Policy and the
"Fourth Power" Problem

The Problem of Fourth Powers
Canada has for some time pursued a policy designed
to limit the possession and manufacture of nuclear weapons to
as few countries as possible. We have pursued this end because
of the clear danger to peace that would result if these weapons
were to be possessed by unstable or irresponsible governments.
The Canadian government has not yet, however, formulated a
definite policy in regard to its own possible requirements for
nuclear weapons, nor has it considered what attitude it should
adopt to the manufacture or use of nuclear weapons by NATO
member nations other than the U.K. and the U.S.
2.
It now seems essential for Canada to find answers
to these two vital and related problems. The need for answers
has been made more apparent by a recent request from the French
government to purchase Canadian uranium} for in a preliminary
approach France has made it clear that she will not accept a
system of safeguards which would ensure that uranium supplied
by Canada would not be used to assist, at least indirectly,
in the manufacture of nuclear weapons.
3.
In addition France is known to have asked both the
U.S. and the U.K. to assist her in manufacturing such weapons.
We were told at Bermuda that neither the U.S. nor the U.K.
wish France to undertake a nuclear weapons' programme. The U.K.
has merely delayed giving a reply to French requests for
assistance, and it is clear that neither of these atomic powers
have been able so far to define a clear policy towards the
attempts of a "fourth power" - that is to say, a power other
than the U.S., the U.K., or the U.S.S.R. - to undertake a nuclear
weapons' programme. Any success France might have may be expected to spur other European countries to similar efforts.
Germany, for instance, might cooperate and if the Paris Treaties
can be suitably revised might expect later to acquire or even
manufacture nuclear weapons herself. A development of this
kind would most likely lead in a number of years to other NATO
member nations following suit.

Canada as a Fourth Power
4.
Canada's armed forces have no immediate requirement
for nuclear weapons, but within a few years will likely require
certain specified short-range defensive weapons armed with
small atomic warheads - the so-called tactical weapons. The

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U.S. airforce is already using one such weapon in the air
defence of North America and has been given authority to use it
over Canada. For technical reasons the R.C.A.F. does not at
present wish to adopt this particular weapon; but is spending
large amounts to obtain an air-to-air guided missile that
would be more effective if it were to be armed with a nuclear
warhead. When such a weapon is available, and if a nuclear
warhead could be obtained from the U.S. or the U.K., it would
be hard for the Government to justify not using it while the
U.S. publicly claims that such weapons are much more effective
than others.
5.
On the other hand neither the Chiefs of Staff nor
any other government authority has suggested that Canada should
at any time seek to arm herself with long-range weapons armed
with large atomic warheads designed for offensive action - the
so-called "strategic" weapons. Nor is there any reason to
believe that it would be to Canada's military or economic
advantage to manufacture or to test whatever tactical nuclear
weapons our forces may eventually require.

Canada's Present Involvement
6.
Canadian participation in the production of nuclear
weapons so far has been largely limited to supplying uranium
and plutonium to the U.S. Recently, however, a contract has
been made whereby Canada will supply uranium to the U.K.
Although it is primarily intended for the development of power
in the U.K., some of this Canadian uranium may be used for the
manufacture of nuclear weapons. Although Canada has cooperated
in certain limited respects in the U.K.'s weapons' programme,
we have done so only with reluctance and have privately expressed our concern that the U.K. has found it necessary to
manufacture nuclear weapons.
7.
Moreover, as the largest exporter of uranium, Canada
has taken a lead in international councils in advocating the
imposition of effective safeguards over uranium or reactors
exported for peaceful purposes. Such safeguards would serve
the dual purpose of helping to preserve peace and providing an
international environment in which uranium could be sold on the
basis of commercial rather than military considerations. These
are safeguards to be exercised either by an international
agency or by the supplier under a bilateral agreement, and are
designed to ensure any such exports or the fissionable products
that may result from them cannot be used for the manufacture
of nuclear weapons. As a result the French request for uranium
to be supplied without satisfactory safeguards poses a difficult
problem for Canada which would be aggravated if France were
also to ask us explicitly for assistance in a nuclear weapons'
programme.
8.
In an attempt to find answers to the problems with
which Canada is already faced, a group of senior officials «oncerned has reviewed these matters and decided to recommend
to Ministers a policy which, if it were first to be accepted
by the U.S. and the U.K.,. might over a period of time limit
the possession of nuclear weapons by fourth powers to an extent
that would not seriously disturb such equilibrium as at present
exists between the major powers. Any success the policy might

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have will depend not only upon acceptance by the U.K. and the
U.S. but also upon agreement within NATO itself. We may expect
that among the NATO powers there will be resistance from France
and Germany, and that there will be objections from non-NATO
countries - particularly from India to some aspects of the policy.
But the overwhelming importance of the goal to which the policy
is directed, together with Canada's particular ability to
advance effective arguments for its acceptance, appear to justify
an attempt to overcome the difficulties which may be anticipated.

The Objective of a New Policy
9.
The purpose of the policy will be to prevent, or at
least delay and discourage any fourth power from manufacturing
any nuclear weapons or otherwise acquiring such weapons of a
range or size sufficient to enable it to attack another nation
effectively. The logic of such a policy is that the consequences
of nuclear warfare are now known to be so frightful that it
must be prevented at almost any cost. If only the U.S., the U.K.,
and the U.S.S.R. possess these so-called strategic nuclear
weapons, there is a reasonable chance that the present uneasy
equilibrium of power can be maintained for many years. But the
addition of any fourth power to this delicate balance will inevitably increase the instability and hence the risk of war.
10.
In particular; if large-yield atomic warheads and
long-range weapons can be manufactured or were to be possessed
bj countries with unstable or irresponsible governments the
danger will be accordingly increased. Within NATO itself France
presents the most immediate danger because she undoubtedly has
the technology to produce such weapons and has a history of
political instability since World War II which is aggravated by
a large communist party. Nor can we have full confidence in
this respect in either Western Germany or Italy. Outside NATO
India and Japan can hardly be considered sufficiently politically
stable to merit the complete confidence which would alone
justify their possession of strategic nuclear weapons.
11.
In addition, if any fourth power can be prevented
or dissuaded from manufacturing nuclear weapons, the chances of
reaching an agreement to end weapon tests and the possible biological dangers from radio-active fall-out will be better. Any
new power manufacturing nuclear weapons would foresee the need
to test them and would therefore oppose any international action
designed to put an end to tests.
12.
The group of officials recognizes that the most
desirable means of preventing any fourth power from manufacturing
strategic nuclear weapons would be by an international disarmament agreement. They noted that the U.S. has recently proposed
that any fissile material produced after March 1958 by any
nation should thenceforth be used only for peaceful purposes and
should be subject to effective controls to this end. If such a
proposal were to be generally accepted it would largely solve
the fourth power problem. For this reason Canada will no doubt
support it strongly, in spite of future limitations it may impose upon our sales of uranium and plutonium. However, in
spite of evident Russian interest in this disarmament proposal,
no great optimism can be based upon it. Therefore it seems
desirable for Canada to attempt to form a new policy designed to
achieve similar, though more limited, ends.
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Introduction of Nuclear Weapons in Shield Forces in NATO
13.
It does not appear reasonable to deny to the smaller
NATO partners the right to streamline their shield forces in
the same manner as the United States and the United Kingdom have
done by the introduction of small nuclear warheads for air
defence and ground support weapons. It appears possible to limit
the use of nuclear warheads to certain specified short-range
air defence and ground support weapons which are to be released
to the NATO partners in the near future. These v/eapons would
consist of HONEST JOHN, a ground-to-ground missile; MATADOR, an
air-to-gr6und missile; and some air defence weapons of the NIKE
type*
14.
Such atomic weapons in limited range and size would
not enable a NATO power to embark with hope of success on a war
against a major power possessing larger, long-range weapons;
nor should this modernization programme, including the possession
of limited nuclear weapons, provoke a preventive war by a
major power. There would certainly be considerable danger if
the smaller weapons were to be used in a limited or local conflict, but there can be little doubt that they will be needed
for an effective air defence and to strengthen the shield forces
of Western Europe. Thus it is proposed that the other nations
in NATO should be assisted to re-organize their shield forces
in a similar manner to those of the Nnited Kingdom and the United
States, which includes the limited possession of nuclear warheads for air defence and ground support weapons. This is
consistent with the proposals discussed in NATO, the United Kingdom
and Germany in recent months.
15.
Specifically, it is proposed that, after consultation with the U.S. and the U.K., Canada crystallize this new
policy by proposing that NATO should collectively and explicitly
agree that no member nations except the U.S. and the U.K. will
manufacture any nuclear weapons, nor assist any nation but the
U.S. and the U.K. in such manufacture. It would also be proposed that these two nuclear powers - in particular the U.S. would then have the obligation of providing on loan specified
tactical nuclear weapons to other members of NATO requiring them
for the common defence but not making them. In putting forward
this proposal, Canada would undertake herself to accept the
limitations which it imposes upon her.
16.
Under existing U.S. legislation U,S. forces would
have to retain not only ownership but also formal custody of the
nuclear warheads to be provided to NATO members, and the provision of the weapons subject to this control might represent the
first stage of implementing the policy we have in mind. But in
discussions with U.S. authorities Canada should propose that
the U.S. government should seek to amend the present legislation
in such a way as to permit NATO member nations to take control
of the weapons under a loan arrangement and subject to the right
of inspection to ensure that the warheads are not converted into
strategic weapons. Such action by the U.S. would assist greatly
in securing the support of France and Germany for this proposal.
17.
As evidence of her serious intent, Canada would
offer to provide as Mutual Aid, within reasonable financial limits,
uranium required for the manufacture by the U.S. or the U.K.
of the warheads to be lent to other NATO nations. At the same
time Canada would declare her willingness to sell uranium for

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peaceful purposes to any NATO member or group of members under
a system of inspection to be operated not by Canada but by a
joint NATO inspection organization. It seems probable that, if
this policy of the provision of limited nuclear warheads were
accepted, a joint inspection system of the kind proposed would
provide adequate safeguards and would be more palatable to the
purchasers than controls exercised by the supplier or by the
International Atomic Energy Agency. This opinion is supported
by the reaction of certain countries to Canada's announcement
that Bilateral Agreements covering the sale of uranium would
contain control provisions similar to those contained in Article
XII of the Statute for the International Atomic Energy Agency;
18.
An important additional factor in deterring the
attempts of fourth powers to manufacture nuclear weapons is their
knowledge of the enormous costs involved. Expenditures on
such a scale are inconsistent with the concept that NATO members
should provide defence forces consistent with their economio
potential, and should not weaken their economic, and hence their
ultimate military, strength by undertaking burdens which they
would find difficult to carry and which can better be carried
elsewhere in the alliance. National prestige or fears, which
may cause fourth powers to disregard these economic facts, may
in some measure be met by a policy which would provide limited
nuclear weapons to NATO members without financial strain.

Difficulties Presented by the New Policy
19.
The advantages of the proposed policy have already
been set out, and Canada would appear to be the logical proposer.
The U.S. and also the U.K, might be suspected of attempting to
preserve a favoured position. Nevertheless the difficulties
and obstacles which lie in the way of the policy must be reckoned
with,
20.
Essentially the policy requires that the continental members of NATO, and also Canada, agree to deny themselves
the use of nuclear weapons of deterrence and the power and
prestige in international affairs which are associated with such
weapons. The limitations which would thus be self-imposed may
appear more real to NATO members since they are aware that in
theory the U.S. and the U.K. could abandon the continental land
mass to the Soviet Union. But they are also aware that British
and American forces are stationed in Europe as hostages against
any such abandonment, and that the whole concept of the alliance
is one of collective defence. Consequently it seems probable
that on reflection NATO members may be prepared to accept the
logic of the policy which is in essence an extension of present
defence philosophy of contributions made within the limits of
members economic resources.
21.
The problem of national prestige cannot be -overlooked. This may be most acute in the case of France, and any
French government which seeks to gain national acceptance of
the policy may meet with political difficulties. It is understood that there was a split on this general issue in the
recent French cabinet, and it seems possible that a fair measure
of support might be won provided that sufficient face-saving
devices can be contrived to cover both the principle and presentation of the new policy. Similar difficulties may be

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encountered in Germany. Under the Paris Treaties, however,
Germany cannot openly demand the right to manufacture nuclear
weapons; nevertheless she may endeavour to block adoption of
the policy in order to leave herself freedom of action at a later
time. It seems probable that other NATO members may support
Canada's proposals.

The New Policy and Non-NATO Powers
22.
The acceptance of the policy by NATO would have to
be accompanied by a consistent attitude towards powers outside
the alliance. Essentially this would mean denying all non-NATO
powers any assistance in manufacturing any nuclear weapons.
Whether or not at a later date specified tactical nuclear weapons
might be provided under due safeguards to particular allies or
regional groups outside NATO vrould be a matter for later consideration. Whether or not this step were eventually to be
taken, it will remain necessary to impose on non-NATO countries and indeed on all countries not known to be making nuclear
weapons - the requirement that the export to them of materials,
equipment and technical services for atomic energy programmes
must be accompanied by safeguards to ensure that no fissile
material can be diverted to weapons production.
23.
We must recognize that this policy can only be
effective if the Soviet Union also adopts a similar policy in
its own interest. There is a clear danger that the Soviet Union
would be tempted to give assistance without due safeguards in
order either to make mischief among the western allies, or to
damage western interests in the eyes of the "uncommitted" powers.
Nevertheless, the real interests of the Soviet Union with regard
to the "fourth power" problem seems to be similar to those of
the U.S. and the U.K. There is also evidence that the Russians
believe that exports of nuclear materials for peaceful purposes
should be subject to controls.
24.
It seems probable that many non-NATO powers will be
prepared to support the objectives of the new policy insofar as
it prohibits the unrestricted manufacture of nuclear weapons.
They may, however, be expected to raise strong objections that
they have not been included in the provision of atomic v/arheads
for specified defensive weapons and hence unreasonably denied the
ability to defend themselves against aggression. The force of
this objection will depend upon whether at a later date a
decision is taken to extend the new NATO policy to other allied
regional groups.
25.
It also seems likely that some non-NATO nations will
object to the imposition of controls over material, equipment
and services exported to them for use in nuclear power programmes.
India already provides an instance of this attitude, founded
on national pride and bolstered by her ability to supply fuel
for the CIR research reactor at a high cost from her own lowgrade ores. While it appears increasingly doubtful whether India
will in fact wish to obtain fuel from Canada for the CIR reactor
it might possibly be in Canada's interest to decline such a
request if we felt sure that by doing so we would be making a
real contribution towards the achievement of effective international controls. Objections from India and other non-NATO
countries will undoubtedly affect somewhat our relations with them

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and reduce our opportunities for developing and establishing
new markets for Canadian uranium. However, it appears that Canada
can afford to accept these consequences for a period, particularly
considering that until 1962 a very substantial market for
Canadian-produced uranium is guaranteed under current contractual arrangements with the United States and the United Kingdom.
On balance it would seem that the potential advantages of the
new policy would warrant acceptance of certain sacrifices at
least for the period necessary to explore the possibilities under
the new policy.
26.
A final consideration must be the attitude of the
major producers of uranium or reactors who are not members of
NATO. Our most important competitor as a supplier of uranium is
undoubtedly South Africa. Should any such supplier be prepared
to export without applying effective controls, Canada could not
and indeed should not attempt to maintain a policy which would
then be ineffective and would merely deny us markets. It therefore seems desirable for Canada to attempt to persuade the
South African government and subsequently others of the desirability of the new policy and of the need to maintain effective
controls over the export of uranium to any fourth power.
27.
Although we must recognize that France and India may
embark on a weapons' programme from their own resources, it is
probable that the new policy will at least delay and limit the
programmes of fourth powers not willing to cooperate. In this
connection it does not seem probable that the Soviet Union would
trust her satellites sufficiently to provide them with nuclear
weapons, and no other country is likely to be able within a long
period of time to produce or obtain long-range delivery systems
capable of threatening Europe, Russia or North America - thus
provoking a major war.

Recommendations
28.
In the light of the arguments set forth in this
memorandum, the group of officials recommends that Ministers concerned approve in principle the policy proposed - particularly
the steps outlined in paragraphs 15- 17. It also recommends that
Ministers authorize the Department of External Affairs, in
conjunction with National Defence and Atomic Energy of Canada
Limited, to begin preliminary discussions of the new policy with
appropriate civil and military officials in Washington. Any
further action would depend on the result of these discussions
and subsequent consideration by the Cabinet.
29.
In the meantime, it is proposed that the uranium
export policy announced by the Minister of Trade and Commerce on
February 18, 1957, should be firmly maintained for both NATO and
other nations, and that an attempt should be made to persuade
the government of South Africa to follow a similar policy for
the imposition of effective safeguards.

To be signed by: General C. Foulkes
Mr. J. Leger
Mr. Yi.J. Bennett
Mr. A.F.W. Plumptre
Mr. R.B, Bryce

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