 On February 20, 1959, the Cabinet decided to cancel the Avro Arrow, following an earlier decision to permit the United States to build two Bomarc missile bases in Canada.The company immediately dismissed its 14,000 employees, blaming Diefenbaker for the firings, though it rehired 2,500 employees to fulfil existing obligations.Although the two leaders had a strong relationship, by 1960 US officials were becoming concerned by what they viewed as Canadian procrastination on vital issues, such as whether Canada should join the Organization of American States (OAS).