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                  <text>Document disclosed under the Access to Information Act Document divulgue en vertu d'SE'efmacces
ii /'information
\

This Document is the Property of the Goventment of Canada
and is on Loan from the Privy Council Office

I.

I
I_

Nb •

-2Z::.2..L

Copy No.
Cabinet
A meeting
Council Chamber, East
at 10:00 a.m.

Y...?

1'1inutes

of the Cabinet was held in the Privy
Block, on Thursday, July 15, 1971,
Present

The Prime 1'1inister
(1'1r. Trudeau) in the Chair,
The Leader of the Government
in the Senate
(Senator Martin),
The Secretary
of State for
Ex:ternal Affairs
(1'1r. Sharp),
The 1'1inister of Public Works,
(1'1ro Laing),
The President
of the.Treasury
Board
(Mr. Drury) ,
The Minister
of Industry,
Trade and_ Commerce
(Mr o Pepin) ,
The 1'1inister of Regional
Economic Eicpansion
(Mr. 1'1archand),
The Minister
of Energy,
Mines and Resources
(Mr. Greene),
The Minister
Without Portfolio
(Mr.

cote),

The Minister
of Justice
(Mr. Turner),
The 1'1inister of Indian Affairs
and Northern Development
(Mr. Chretien),
The Minister
of Labour
(Mr o Mackasey),

The Minister
of National
Defence
(1'1r. Macdonald),
The 1'1inister of National
Health and Welfare
(Mr. 1'1unro) ,
The Secretary
of State
(Mr. Pelletier),
The Minister
of Fisheries
and Forestry
(Mr. Davis),
The Minister
of Veterans
Affairs
(1'1r. Dube),
The 1'1inister of Consumer
and Corporate Affairs
(Mr. Basford),
The Minister
Without
Portfolio
(1'1r. Andras),
The Minister
of Supply
and Services.
(Mr. Richardson),
The Minister
of 1'1anpower
. and Immigration
(1'1r. Lang) ,
The Minister
of National
Revenue
(Mr. Gray) ,
The 1'1inister Without
Portfolio
(Mr. Stanbury),
The Solicitor
General
(Mr. Goyer).

The Deputy Secretary
to the Cabinet,
(1'1r. Crowe ) ,
The Assistant
Secretary
to the Cabinet
(Miss McDougall),
The Acting Assistant
Secretary
to the Cabinet
(Col. Troughton).

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Finance.to:

The Cabinet

agreed

to authorize

the Minister

of

(a) arrange for the issue and sale for cash of
Government of Canada bonds in the principal
amowit
of $200,000,000
for the geteral
purposes of the
Government of Canada; and
(b) ·arrange for the j_ssue and sale of $350,000,000
of Government of Canada bonrls in exchange, at par,
for Government of Canada 4¾ per cent bonds due
September 1, 1972.
(P.C.

An Order in Cowicil

1971-1461,

July

15, 1971).

White Paper

was passed

accordingly,

on Defence

The Minister
of National
Defence continued his
review of the provisions
and implications
of the White Paper
on Defence in this instance
using the Report of the Committee
on External
Policy and Defence (Cab. Doc. 652-71) as a e;uideline to discussion.
operations,

In the ensuing discussion
concerning
~he following
points were made:

maritime

1.
The expansion of maritime operations
in
the Arctic had already begwi and the Defence Research
Board had begwi a study of the need for a greater
submarine detection
capability
in the Arctic.
2.
The ARGUSlong range patrol
aircraft
had
certain
shortcomings
?or the northern
surveillance
role.
It was designed as an anti-submarine
warfare
aircraft
and required
fitting
of a new infra~red
detection
system to e,.1.able it to perform wider conditions
of low light.
Overhaul assessments
would have
to take this factor
into consideration
as well as
that of air-worthiness.

3.
A number of ultimate
options presented
themselves:
continue operation
of the Argus if
overhaul proved economical,
purchase a replacement
fleet at what could be a cost of $500 million,
or
maintain no long range patrol
aircraft
fleet.
It
was the preliminary
opinion of the Defence.Staff
that
Argus could be retained
economically
and effectively
but no final opinion could b~ given until the studies
as to overhaul costs and effectiveness
were concluded.
The Cabinet

agreed

that:

(a) the Canadian Forces should expand maritime
operations
in the Arctic and should study the need
for a greater
submarine detection
capability
in the
Arctic;

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(b) if the results
of the systems analysis
concerning overhaul of the Argus indicated
that it
would not be cosr.-effective
to carry out such an
overhaul,
the Minister
of National
Defence would
return to Cabinet with his recommendation for long
range patrol a:i.rcrB.ft requirements
generally
and
Agrus replacem~nt
specifically.
following

In di.scussion
points emerged:

concerning

CF-5 aircraft,

the

1.
The problem of surplus CF-5 airaraft
was
considered
in development of the White Paper pro_;
visions.
In addition
to the two operational
squadrons
in Canada, it was intended that the obsol.escent
T-33
jet trainers
would be replaced by converted or newly
constructed
dual-configured
CF-5s, conversion
involving
a cost of $10 million.
The proposed
flyover role for North Norway involved augmenting
existing
squadrons to NATOoperational
standards
as well.
If the sale of single seat CF-5s to Venezuela
was effected,
new dual-seat
aircraft
would be constructed
by Canadair,
conversion
no longer being a factor.
2o
Some Ministers
considered
that it was
undesirableto
effect the CF-5 sale to Venezuela in
view of that country's
relationship
with Guyana.
It
was felt that such a sale would have an adverse effect
on Can&amp;da's relationship
with Commonwealth Caribbe::1n
nationa and that it was desirable
t.o discontinue
negotiPtionso
Otter Ministers,
noting that the
Venezuelan sale was already approved by Cabinet and
.that there were possibilities
that the sales negotiations would be successful,
considered
that it would
be detrimental
to Canada's commercial reputation
if·
sales negotiations
were broken off.
They did not feel
that relations
between Venezuela and its n~ighbors
were such that a sale was precluded unde::- the criteria
set out in previously
agreed government policyo
The
final concensus was th·~re was no requirement
to ~hange
the provisions
of the }lrevious Cabinet decisior
authorizing
the Minister
of Industry,
Trade and Commerce
to proceed with negotiations
on such a saleo
The Cabinet agreed that CF-5 aircraft
will be
employed to provide a quick response photographic
reconnaissance
capability
in Canada and over offshore waters in peacetime;
CF-104 aircraft
from the Oper&amp;tional Training Squadron at
Cold Lake, Alberta,
will be used to provide Canada with its
own identification
and interception
capability
in the Prairie
area; and CF-101 VOODOOaircraft
operating
from eastern
Canada bases w::.11 carry out identification
and interception
tasks on the eastern approaches to Canada.
]I.iring discussion
in regard to the establishment
of coastal
operations
centres,
it was pointed out that Maritime
Command now ran t1rro coastal
operatj 0ns centres and the White
Paper proposed expansion of these to include representation
by other departmental
agencies in order to facilitate
better
co-ordination
with DNDo Ministers
expressed concern about
the prolifer·ation
of vessels
and aircraft
operating
for their
departments
and agencies in a variety
of maritime roles and

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that there appeared to be little
co-ordination
and information
flow among these agencies.
It was considered
that a high risk
of uneconomical duplication
existed
and that indeed some requirements might remain unsatisfied
when another agency with
its resources,
if tasked, might have satisfied
them.
It was
felt that the broad area of overall
maritime operatj_ons should
be looked at with a view to achieving
better
co-ordination
and use ~f resources.
·The Cabinet

agreed

that:

(a) the Department of National
Defence should
be prepared,
when required,
to render increased
assistance
to other departments
in fields
relating
to national
development,
this without any degradation
to their ability
to respond to their basic defence
roles;
joint operations
centres
would be established
on the east and west coasts to fa~ilitate
better
co-ordination
between DNDand other departments
and
agencies;
and that a study should be initiated
to
inquire
into and make recommendations
to Cabinet with
R view to
effecting
greater
centralized
co-ordination
and control
over the operation
of all government
.vessels
and aircraft
belonging
to those departments
and agencies having coastal
functions
and responsibilities;
(b) increased
emphasis
Force presence and operations

will be placed
in the North.

on Land

Dur~inJ5the discussion
of the Defence policy implications of the White Paper having to do with North American
Defence the following
points emerged:
C

I.
Although it is implicit
in·the
White Paper
- that Canada intends to continue participation
in the
joint North American Air Defence Command (NORAD),
there is no need at this time to take any decision
to
renew the NORADagreement following
the expjry of the
present
agreement on May 12, 1973. This question
should
be considered
by Cabinet when it becomes nec~ssary
to
deal with the renewal of the agreement.
2&amp; The Cabinet confirmed its
ment at a meeting on July 8 that:

previous

agree-

(a)
Canada will maintain the number of
interceptor
aircraft
at the current
level to
contribute.
simultaneously
to the active antibomber defence of North-Ameri.ca and to the
capability
to carry out peacetime aircraft
1dentification
in·and control
of Canadian airspace; this contribution
is to be updated only
to the extent required
for general control
of
Canadian airspace;
(b)

the

BOf'J.ARC
system will

be retired;

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(c) the government is prepared to reach
agreements to allow U.S. interceptors
to disperse
to selected
bases in Canada in times of crisis,
as determined by the Government of Canada, if
this would maximize the effectiveness
of the
residual
anti-bomber
defences;
the government is
not prepared to agree to have such interceptors
based in Canada in peacetime.
The Minister
of
National
Defence is to negotiate
with the United
States Government to ensure the maximum use of
Canadian personnel
for the servicing
of these
interceptors,
on a cost recovery basis;
(d) the government is prepared to allow
U.S. Strategic
Air Command refuelling
tankers
to continue to use Goose Bay and, should the
international
situation
in its judgment warrant
such a move, for tankers
to be dispersed
to
other bases in Canada.
The Minister
of National
Defence is to negotiate
with the United States
Governme~t the maximum use.of Canadian personnel
for the servicing
of these tankers
on a cost
recovery basis;
(e) Canada will not establish
the NORAD
Alternate
Command Post at North Bay and will not
respond favourably
to the U.S. proposal that
this be done.
Du.ring the discl:!,__ssion of Canada's
weapons the following points emerged:

policy

on nuclear

•

1.
The Leader of the Government in the Senate
reminded his Cabinet colleagues
of the various statements_made by Mr. Pearson and Mr. Hellyer in the
period between 1963 and 1965 regarding
the phasing
out of Canada's nuclear role.
Senator Martin stated
his view that the government had intended a phasing
out of a nuclear arming of CF-101 VOODOO
interceptors
coincident
with the end of the life of that interceptoro
2.
In contrast
to the situation
in 1963, the
• non-proliferation
treaty
is now in effect
and Canada
conforms to the provisions
of that treaty
whereby
countries
other than the existing
nuclear powers can
have nuclear
weapons on their territory
only under a
two-key system of control.
Additionally
the strike
aspect of our nuclear role has been complet¤-ly eliminated leaving only the defensive
interceptor
role.

3.
The position
contained
corresponded
with Liberal
party
denuclearization
and supporting
in NORAD.

in the White Paper
resolutions
rejecting
continued membership
•

4.
As long as the government still
considered
that there was a residual
bomber threat
and that Canada
should maintain its interceptor
contribution
to the
anti.-bomber defence there was justification
for arming
these interceptors
with nuclear weapons; conventional
armament would be ineffective
and arming Canadian
interceptors
in this way would mean that bomber interception by nuclear means would be performed by United
States aircraft
stationed
south of the border but
making their interceptions
over Canadian territory
within normal fighter
aircraft
range.

. .. /8

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5.
It would not be appropriate
for the present
government to state specifically
and thus try to
commit a future government to a decision regarding
nuclear armament for interceptors
some years ahead.
6.
There might be value in drafting
the
White Paper in such a way as to make clear the government's eventual
desire to rid itself
entirely
of
nuclear weapons when the circumstances
permit.
The
present wording of the Paper seemed to i_mply that
government policy rather
than being aimed in that
direction
was subject
to reversal
in the other direct.ion
depending on the evolving strategic
situation.
The Cabinet

agreed:

(a) that the sentence on page 21 of the draft
.White Paper stating
that "Canadian policy on nuclear
weapons will continue to be responsive
to the evolving
strategic
situation,
and in parti9ular
the bomber
th..reat II would be deleted and that the Minister
of
National Defence would redraft
that section to reflect:
(i)
that the desirability
under war
conditions
for any potential
nuclear explosion
to take place over more northerly
sparsely
inhabited
areas rather
than densely populated
areas was and remains an important
factor in
the rationale
for continuing
to arm Canada's
interceptor
force with defensive
nuclear weapons;
(ii)
that the question
of anti-bomber
defence requirements
would be reviewed in the
light of the results
of the Strategic
Arms
Limitation
Talks; and
(iii)
an outline
of government action so
far in the process of denuclearization
and of
the ultimate
national
aims in this regard.
.
.Q9.ring disc,.1ssion of low-level
training
flights
by unarmed bombers of SAC, the Minister
of National
Defence
reported
that there were agreements with both the United
States and Britain
regarding
low level training
flights
over
Canadian territory.
He pointed out that about 12 per cent
of SAC bomber training
now took place over Canada.
The
routes were discussed
and changed each year.
There would be
difficulty
i:n renegotiating
the low level flights
agreed to
for·Manitoba,
for example, which had only been negotiated
recently.
The Minister
of Supply and Services
said he had
no concerns about low j_evel flying anywhere except over
populated
areas.
The President
of the Treasury Board pointed
out that for some forms of bomber training,
flights
over
pure wilderness
were not of much help. •
•
The Cabinet agreed that the continuation
of
low level training
flights
by unarmed SAC bombers on the
basis of 12 per cent of such flights
being flown over Canada
was acceptable
provided such flights
in Canada would be
flown over sparsely
populated
areas to be designated
by
Canadian authorities.
While it was acknowledged that current
arrangements
were in effect
until the end of ·1971, the
Minister
of National Defence was to attempt to bring about
the required
change of procedures
by USAF as soon as possible .

. . . /9
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Submarine
emerged:

Durin
Warfare

the discussion
ASW) capa ility

of the Maritime Forces
the following
points

Anti-

1. The Miriister
of National
Deferice stressed
that a very high percentage
of current
naval expenditure
went for purely ASW purposes.
The DDH destroyers
were
largely
designed and equipped for this role, particularly
in terms of the expensive
electronic
Sonar equipment
which is being installed.

e

2,. The Prime Minister
pointed out that nuclear
armed submarines
are generally
looked upon as second
strike
weapons.
He queried whether Canadian Forces
designed to search and destroy
should be seen to be
aimed at destroying
a second strike
weapon.
This was
inconsistent
with the deterrent
theory.
3. The Minister
of National
Defence pointed
out
that the ships were a natural
extension
of the aircraft
detection
system.
One should not lose sight of the
fact that they were capable of detecting
increases
in
possibly
hostile
forces in a particular
area and were
thus able to provide a measure of the nature of a prewar crisis,
4. The Secretary
of State for External
Affairs
pointed out that this detection
and attack
capability
was an integral
part of Canada's NATOcontribution.
S.- The President
of the Treasury Board drew
attention
to the difficulty
of matching existing
expensive capital
equipment with the Defence priorities
laid
down by Cabinet after that equipment had been contracted
for.

6. The Prime Minister
stressed
his desire
to
ensure full understanding
within the Servic0 of the
government's
intention
to wind down the ASW role,

The Cabinet decided to continue
discussion
of this
subject
at the next Cabinet meeting when the White Paper
discussion
resumed.
•

Salaries

of Incumbents

of Governor

in Council

Positions

The Cabinet had for consideration
a memor~ndum to the
Cabinet Committee on the Public Service from the Chairman of
the Public Service from the Chairman of the Committee of Senior
Officials
on Executive.Personnel
entitled
"Salaries
of Incumbents of.Governor
in Council Positions'',
Cab. Doc. 732~71, and
a Report of the Cabinet Committee on the Public Service,
Cab. Doc. 750-71.
. .. /10

003434

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              <text>July 15, 1971</text>
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              <text>RG24, Acc. 1997-98/050, Box 3, File Title: White Paper (May 1971)</text>
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