After the Second World War, the United States emerged possessing an unprecedented amount of economic and military power. With the threat of the Cold War, power had shifted from Britain to the United States. The Cold War was a period of time from approximately 1945 to 1991. Canada's alliance with the United States during the Cold War was one of necessity. This can be seen in the economic crisis, the development of N.A.T.O. and the agreement to N.O.R.A.D.

Canada was forced into an alliance out of necessity with the United States as seen from an economic point of view. The economic situation in North America at the beginning of the Cold War was favorable. Compared to the rest of the world, Canada and the United States were financially stable after World War II. Canada's trading partners in Western Europe were in ruins and had little money to pay for food, raw materials, and the manufactured goods needed to re-build their economy. Canada decided they needed to trade in a different manner and give the Europeans credits with which to buy Canadian goods. By 1947, Canada was forced to realize that because of their generosity they were embarking on a foreign exchange crisis. Canad

In 1948, the Canadian and American teams met to discuss a free trade agreement. The sentiment in Ottawa was clear, Prime Minister, William Lyon Mackenzie King was leery of the agreements, thinking he would go down in history as the Prime Minister who "sold Canada to the United States." . He felt the free trade agreement would lead to the achievement of "the long objective of the Americans...to control this continent..."" In his last months in office, Mackenzie King vetoed the agreement and the crisis still remained.

...In 1962 the Americans uncovered Russian missile sites in Cuba and demanded their immediate withdrawal...American defense forces were alerted during the crisis; the Canadian Government...hesitated...could be seen as Canadian autonomy, but it left the American Government...wondering about the reliability of its defense partner.

It was necessary for Canada to have the United States as an ally from a political point of view. The creation of the North Atlantic Treaty Organization (N.A.T.O.) was a necessity to continue with a prosperous Canadian future. The North Atlantic Treaty was an alliance of 12 countries in military and economic pursuits. Canadian politicians were the first to propose the idea and had an active role in the creation of the treaty. Prime Minister, Louis St.Laurent, thought that the alliance was a necessity to prevent the spread of Communism, as "the totalitarian communist aggression endangers the freedom and peace of every democratic country including Canada" .

In March 1981, Prime Minister Trudeau renewed the N.O.R.A.D. agreement. One of the most publicized aspects of the Canadian involvement in U.S. nuclear policy was the in the development of the Cruise Missile. Litton System Limited, an American plant in Rexdale, Ontario was aiding in the development of a navigational system for the Cruise Missile. In return, the United States gave them a five year, interest free loan of $22 million. A radar system for the early warning of attacking aircraft was set up across Northern Canada and close to the U.S-Canada border. In 1985, Prime Minister Brian Mulroney modernized the N.O.R.A.D. radar system. This provided a grea

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Approximate Word count = 1471
Approximate Pages = 6 (250 words per page double spaced)