WASHINGTON--The State Department announced tonight that the United States and Canada have taken preliminary steps toward development of the Great Lakes-St. Lawrence Basin project and have agreed to an immediate exchange of water "to assist in providing an adequate supply of water to meet Canadian defense needs."
Observers interpreted the disclosure as of far-reaching significance. It was believed to be the first stop toward strengthening bonds uniting the United States and its northern neighbor in a far-reaching hemispheric defense policy outlined by President Roosevelt Saturday night in his Dayton, Ohio, speech.
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