The result was a put-off United States. Realizing this furthered the need for an outside alliance, talks of NATO resumed. At this point, Canada saw NATO as more than just a defense strategy in the face of Communism. Canada fought and won a battle in discussions to require all members of NATO to cooperate economically. Additionally, the NATO alliance assured that Canada would have a say in combined foreign policy and security. Even further, Canada would be able to deal with the United States on more of a multilateral level, which would help ease the disparity between the nations (Jockel, Sokolsky, 1996). Rather than simply following America's lead in foreign affairs, Canada was determined to make decisions in the best interest of the Canadian people.
By 1949, the threat of Communism was in full swing. The Soviet Union had tested its first nuclear weapon, and the world took notice. Now that the Soviet Union had long-range bombers, the North American continent was in danger of invasion ("Cold War," 2002). This allowed the full agreement of NATO to continue, with Canada, the United States, and 10 European countries joining. This effectively created a unified defense strategy for all members. Canada, taking the lead yet again, agreed to an early commitment of troops, electing to send both infantry divisions and air divisions ("Cold War," 2002).
The U.S. wanted a reliable detection system in place, in case of a Soviet launch. To the United States, Canadian airspace and territory were essential to the security of North America, and therefore, to the U.S. As a whole (Jockel, Sokolsky, 1996). Canada, on the other hand, was somewhat more skeptical about the Soviets capability for launch, and in their intentions ("Cold War," 2003). Even so, Canada had to take the United States into account, in part due to the NATO agreement, but also because their foreign policy and foreign trade was extremely dependant on the U.S.
The U.S. proposed a bilateral defense relationship between Canada and themselves, and Canada agreed. The proposal resulted in a vast network of radars spanning the entire North American continent. The final line, known as the DEW line (distant early warning), stretched to the Atlantic ("Cold War," 2003). The radar network was designed to allow for early detection and warning systems for any incoming attack on North America. This warning included the detection and assessment of any missiles or aircraft entering Canadian or U.S. airspace (Jockel, 2003).
While Canada agreed to the project, they could not agree to the funding. Canada had committed themselves to the foreign aid of NATO and the UN, and did have the resources to fund such a massive undertaking. Thus, the United States funded much of the project ("Cold War," 2003). This relationship, with Canada trusting the United States within their boarders, and in their airspace, and with the United States trusting Canada and their military, helped to strengthen the bonds again between the two nations. Canada, used to being under the protective arm of Britain, no longer needed security from them, but instead turned towards the United States. The agreement placed Canada where no other ally of the United States had been: a central component to the strategic nuclear forces where the United States' defense rested (Jockel, Sokolsky, 1996).
The Cold War influence over United States and Canadian relations appeared to be beneficial. By the 1950's, Canada saw increasing American economic and cultural influence in Canada, despite the failure of the previous free trade agreement. The United States continued to equal almost 70% of Canada's imports, and exports to the United States had more than doubled. As the allies entered the Korean War, U.S. military needs continued to feed the Canadian economy (Donaghy, 2003).
Canadian foreign policy did not, however, follow that of the United States entirely. By the 1950's, Canada had expanded to include Newfoundland as its tenth providence. Additionally, the British Commonwealth attempts to expand the Commonwealth were overwhelmingly supported by Canada. In fact, Canada began its commitment to foreign aid by supporting the creation of the Colombo Plan, which helped modernize Asian countries into democracy. Canada contributed $25 million to the plan, aiming both to counterbalance Communism in the region, and also to bolster foreign trade with the Commonwealth ("Cold War," 2003). While Canada made it clear that they would not limit ties to the United States, they took hold of other foreign markets without the United States' backing, in an effort both to improve their economy and to improve overall security.
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