This paper examines the evolving relationship between Canada and the United States during the early Cold War period from 1945 to 1957. It traces the origins of bilateral cooperation from World War II through the Ogdensburg and Hyde Park Agreements, then analyzes how the Soviet threat prompted joint defense initiatives including NATO, the DEW Line radar network, and NORAD. While acknowledging areas of close cooperation, the paper argues that Canada consistently pursued an independent foreign policy rooted in its own economic and humanitarian interests — as demonstrated by its leadership role in proposing NATO's economic cooperation clause, its restraining influence during the Korean War, and its pioneering UN peacekeeping initiative during the Suez Crisis. Canada is portrayed not as a follower of American policy, but as a self-determined middle power navigating the shadow of a superpower neighbor.
The relationship between the United States and Canada has always been one of constant change. During the post-World War II era and through the emergence of the Cold War, the relationship between these neighboring countries continued to develop and change drastically, forever altering the way in which the two nations dealt with one another. During this time, Canada certainly followed some of the United States' foreign and defense policies, but the post-Cold War era also proved Canada to be a self-standing nation, capable and willing to create its own policies based on the needs of the country.
This two-part paper examines how the emergence of the Cold War affected the relationship between Canada and the United States in a positive way, allowing for an advancement of trade and defense policies, while at the same time causing increasing tension between the two nations over the question of independence. Secondly, this paper discusses the foreign and defense policies of Canada during the Cold War years of 1945–1957, and shows that although Canada may have followed U.S. policy in some areas, it also created and maintained its own foreign and defense policies. The paper argues that the beneficial, albeit rocky, relationship that emerged from the Cold War era allowed Canada to maintain its own foreign policy and to dictate the future of its country.
Even as early as 1921, relations between the United States and Canada were improving. In that year, Canada's exports to the United States topped those to the United Kingdom. Even though turbulence between the nations continued, relations were definitely improving. By 1938, U.S. President Franklin Roosevelt had made a promise to protect Canada in the event of foreign aggression (Thompson, 2003). This was partially due to the American realization that entry by foreign combatants into Canada would threaten the security of the United States. Additionally, Prime Minister Mackenzie King was an admirer of President Roosevelt, who treated King with respect (Thompson, 2003).
The beginnings of true cooperation between the two nations occurred during World War II. During that time, Roosevelt and King negotiated to form a Permanent Joint Board of Defense, otherwise known as the Ogdensburg Agreement. Additionally, the two leaders combined economic forces through the Hyde Park Agreement, which coordinated the economic war mobilization of both countries (Hilmer, 1989).
Relations between the two countries were further improved by the appointment of a Canadian Ambassador to the United States. Until that time, Canada had been represented by the British Ambassador and unofficially represented by Canadian diplomats in other parts of the world (Thompson, 2003). The creation of an ambassador specifically to assist with relations with the United States demonstrated Canada's dedication to improving those relations and to building a combined trade economy with the U.S.
The end of World War II meant a time of resource reallocation for Canada. Canadians were focused on foreign policy and relations, and did not have a clear national security focus ("Cold War," 2002). Their significant role in the Allied victory meant that Canada was now one of the more powerful nations in the world, possessing a large military and a stable economy ("Foreign Policy," 2002). The Canadian government in power at the end of the war recognized its country's role in the world's foreign market and aimed to maintain it. As a result, the government drastically reduced the size of its military forces, cutting active service strength to only 51,000 members ("Cold War," 2002).
Part of this decision stemmed from Canada's involvement in the newly created United Nations, of which it was a key founding member. Created in 1945, the United Nations charter — much of which was drafted with the prime assistance of Canada — was designed to promote peace, security, and human rights worldwide. At the time, Canada viewed the UN as a guideline for its foreign and defense policies, aiming to promote peace and avoid aggression ("Canada and the UN," 2003). As part of this policy, the Canadian government focused on reallocating resources toward post-war recovery efforts, diverting money away from the military for that purpose.
This defense posture differed considerably from that of the United States. Following World War II, the United States reduced its military personnel but increased defense funding for submarines, aircraft, and other vessels (Milford, 1997). In the post-WWII era, the United States recognized that the already unstable relations between the Western world and Communism were deteriorating, and that even the bonds between WWII Allies were beginning to fray ("Cold War," 2003). As a result, the U.S. military began work on naval planning and weapons acquisition with the Soviet Union designated as the enemy (Milford, 1997).
The Canadian government's recognition of its own need for increased security came not from the American lead, but from a domestic incident in September 1945. A clerk at the Ottawa Soviet embassy defected with documents revealing the existence of a Soviet spy ring in Canada. Not only were ordinary citizens involved, but some of Canada's top public servants and scientists were implicated as well, raising serious concerns about the security of Canada's atomic research information ("Cold War," 2003).
This concern was shared by the United States, further strengthening the bond between the once-hostile nations. By 1947, Communist satellite states had been created on the borders of the Soviet Union, threatening Greece and Iran, and the Soviet Union was expanding its interests in Europe and Asia ("Cold War," 2002). Both the United States and Canada feared that Communist nations were attempting to spread their influence throughout the world.
This convergence of foreign policy concern was not simply a case of Canada following America's lead. In post-WWII Canada, the new era was providing a solid economic foundation dependent on foreign trade and international relations. Following the war, the Canadian government had dismantled many of the previous industrial controls to encourage foreign trade. Additionally, foreign aid and trade allowed for the discovery and development of new oil supplies in Alberta and Quebec. The trade of those supplies helped Canada establish a basic standard of living, which included unemployment insurance, veterans' benefits, pensions, subsidized housing, and health plans ("Canada," 2003). Canada recognized that without its foreign trade — which the spread of Communism was threatening — its national economy would severely falter.
Motivated by the need for continued foreign engagement and a new defense strategy, Canadian External Affairs Department member Escott Reid proposed in 1947 that an organization be created consisting of Allied parties. This organization would provide collective security in Western Europe and all non-Communist areas to counter the Communist threat. The proposal was backed by Secretary of State for External Affairs Louis St. Laurent and Lester B. Pearson, Deputy to the Secretary ("Cold War," 2002). Once again, Canada acted in its own national interest, seeking to enhance its defense strategies in the most economical way possible so that foreign relations would not suffer. Rather than acting on the lead of the United States, Canada took the initiative, proposing a united strategy that would benefit all parties involved. The American government followed Canada's lead, and talks began among the nations to form NATO, the North Atlantic Treaty Organization.
By 1948, the need for a solid security strategy had deepened. The once-democratic government of Czechoslovakia had been replaced by a Communist coup, and the Soviet Union had blockaded Allied sectors of Berlin, virtually trapping the inhabitants within Communist-controlled Germany. In response, a joint effort by the United States, Canada, and other Allies organized an airlift of food, fuel, and supplies for the trapped citizens of Berlin ("Cold War," 2003). This joint effort was consistent with Canada's new defense and foreign policies of providing assistance to Allied nations and promoting democratic traditions.
By 1948, relations between the United States and Canada had begun to lose their post-war warmth, giving Canada another reason to push for a NATO alliance. Due to a rise in imports from the United States and an existing financial crisis in foreign trade, Canada had no choice but to curtail imports from the U.S. In a gesture of positive relations, the U.S. added Canada to the list of "offshore" sources eligible under the European Recovery Plan — the Marshall Plan — meaning that post-war recovery programs could purchase from Canada, resulting in an economic boom ("Cold War," 2003).
To avoid future economic friction, Canada and the U.S. set out to create a free trade agreement. A deal was reached that would have removed all duties and created customs unions between the two nations. However, before the deal could be finalized, Prime Minister King withdrew from the agreement. Citing skepticism about American motives and fearing that the end result would be the absorption of Canada into the United States, King walked away (Jockel & Sokolsky, 1996).
The result was a frustrated United States. Recognizing that this setback made an outside multilateral alliance even more necessary, NATO talks resumed. At this stage, Canada saw NATO as more than just a defense strategy against Communism. Canada fought and won a battle in the discussions to require all NATO members to cooperate economically. The NATO alliance also assured Canada a voice in combined foreign policy and security decisions, and allowed Canada to engage with the United States on a more multilateral basis — helping to 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.
"Radar network agreement and shared continental defense"
"Canada resists US leadership and pushes for ceasefire"
"Canada pioneers UN peacekeeping force at Suez Canal"
"NORAD creation marks peak and decline of bilateral cooperation"
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