When the 1930's came around the Canadian economy took a downward spiral. It was not unusual in a capitalist economy to experience short, sharp fluctuation in the economy but this time it was different (Norrie and Owram 353). By this time Canada was already dependent on the U.S, as a large part of its exports depended on the United States. Canada's share of the new economi

c era was created by a resource boom that was inspired by demand in the United States, now with no demand the economic situation wasn't looking good for Canada (Thompson and Randall 109). By the time the 30's came to a close things weren't looking to get any better as another World War was on the brink. The situation in 1940 looked pretty bleak in terms of Canada's position in the Second World War, both in the defence of Britain and in the defence of Canadian soil itself. The Canadian Prime Minister, William Lyon Mackenzie King, had two choices, either continue to support the British cause and hope for the best, or look for an ally to who would be willing to defend both Canada and themselves if British and Canadian troops fell in Europe. Mackenzie King looked to the most likely possible ally who would be interested in securing the North American continent, the United States. Mackenzie King would look to the United States for a military agreement that would allow Canada to support the British cause, and at the same time protect Canadian soil from invasion. King would be successful for his quest for a military alliance when, in August 1940, King and the President of the United States, Franklin D. Roosevelt, would sign the Ogdensburg Agreement. Mackenzie King had completed what was necessary in order to protect Canada in a time of military uncertainty. King also seems to have sold the idea to Winston Churchill. However, King was also able to ensure that the Joint Board of Defence would operate on Canadian as well as American terms. The agreement was never debated in the U.S. Senate or in Parliament (Thompson and Randall 153). Canada was now as many described at the time a "lynchpin" between Britain and the United States, although the Canadian Prime Minister was not about to give into American pressure. That is why during the Ogdensburg negotiations he rejected the idea of American bases on Canadian soil. Ogdensburg Agreement led to North American defense plans that gave Americans strategic control over Canadian forces. The Hyde Park Declaration in 1941 U.S. would increase defense purchases in Canada while material exported to Canada for use in supplies for Britain would be charged to Britain's lend-lease account; this was so that Canada's debt to the U.S. would not be increased for materials going to the defense of England (Thompson and Randall 155). These two agreements laid the ground work for a close working relationship between the two countries. These two measures indicate something of the degree to which the normal marketplace system of the Canadian economy was altered by government intervention during the war (Norrie and Owram 384).

Canada has traditionally and historic

Some common words found in the essay are:
Thompson Randall, Canada United, United Due, World War, Canada Britain, Mackenzie King, Moreover Canadian, Ambivalent Allies, Norrie Owram, Park Declaration, thompson randall, world war, foreign ownership, mackenzie king, foreign investment, norrie owram, canadian soil, canada united, american companies, close relationship, canadian prime minister, thompson randall 109, support british cause, free trade agreements, war norrie owram,
Approximate Word count = 1818
Approximate Pages = 7 (250 words per page double spaced)