Aronsen draws on recently declassified documents in Ottawa and
Washington to provide a reassessment of Canada's special
relationship with the U.S. Toward this end, detailed new
information is provided about Canada's contribution to the creation
of the postwar economic order from the Bretton Woods Agreement to
GATT. Canada's cooperation was rewarded by special economic
concessions including the extension of the Hyde Park agreement in
1945, the inclusion of the off-shore purchases clause to the
Marshall Plan, and Article II of the NATO Treaty. After the
outbreak of the Korean War, Canada's resources played a crucial
role in the production of weapons systems for the new air/atomic
strategic doctrine. Several policies were adopted to facilitate the
expansion of Canadian defense production, notably the relaxation of
regulations on technology transfer; the encouragement of private
sector investment; and the negotiation of long-term contracts at
above-market prices. In the midst of these unprecendented peacetime
developments "Time" Magazine observed that Canada had become
America's Indispensable Ally.
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