In July 1940 the Canadians and British started talking about Canada Producing Cruiser tanks for Britain. However, sections of the Canadian military thought it would make more sense to make some of the M3’s that Britain had already ordered in the US.
In September, it was decided that all M3s would be built in the US, but that the British purchasing commission would buy motors, transmissions and Machine Guns.
In October the Munitions and Supply Department started signing contracts with Canadian Companies for components, though Privy Council permission was only actually granted in January.