811.114 Canada/5074¼
Memorandum by Mr. James C. H. Bonbright of the Division of Western European Affairs
In the course of a telephone conversation with the Legation at Ottawa this morning Mr. Armour told Mr. Hickerson that he had recently seen both the Prime Minister and Dr. Skelton with regard to the liquor situation. Both were apparently very much upset to hear of Seagram’s party for the “little Congress,” referred to in Mr. Phillips’ telegram to Mr. Armour.
From Mr. Armour’s remarks it was obvious that what he had heard from Dr. Skelton on the subject was based entirely upon Mr. Wrong’s pessimistic reports from here. The Canadians are apparently very much discouraged over the way the conversations between the distillers and our Treasury and Justice representatives are proceeding. So much so that Dr. Skelton even expressed the opinion that the Canadian Government might as well withdraw from the whole thing.