AGREEMENTS TO BUY ARMS
United States Deal With Canada
RECIPROCITY IN PURCHASES
<Ree. 10 P- m -> OTTAWA, May 18. The Canadian and United States Governments have ordered their defence authorities to develop a plan under which each country would purchase between 15.000.000 and 25,000.000 dollars worth of arms from the other. Canada’s arms and equipment purchases from the United States recently have been running at the rate ab out 15,000,000 dollars a year, but the United States defence authorities have not taken advantage of a loophole in legislation which permits them to purchase foreign equipment if the military chiefs certify that it is in the American interest to do so. The United States Secretary of Defence (Mr Louis Johnson) yesterday toe first step towards drawing on the Canadian arms industry when he ordered his departmental chiefs to prepare a tentative purchase programme.
The United States has been under strong pressure bv Canada to adopt such a programme The main Canadian argument has been that, a reciprocal programme is necessary because of the shortage of United States dollars.
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Bibliographic details
Press, Volume LXXXVI, Issue 26117, 20 May 1950, Page 7
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177AGREEMENTS TO BUY ARMS Press, Volume LXXXVI, Issue 26117, 20 May 1950, Page 7
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