Canada at War: EXTERNAL AFFAIRS: A Matter of Insurance

Last week the U.S. Army staked out a firm postwar claim in Canada's far northern Mackenzie River oilfields. The Army and Imperial Oil, Ltd. (a Standard Oil of New Jersey subsidiary), negotiated a new agreement giving the U.S. the right to 60,000,000 barrels of postwar oil.

When the Army launched its Canol pipeline-&-refinery project, the price for oil was fixed at $1.25 a barrel (plus production costs). The new price: 20¢ (plus production costs). Said Under Secretary of War Robert Patterson: "The new agreement is fundamentally a matter of insurance that in the future the defense of the continent will not...

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