Note: donating the war-surplus material was done after the decision to re-equip the Canadian Army with American-type equipment.
See
http://www.nato.int/archives/1st5years/chapters/12.htm:
Quote:
"Canadian aid
The Canadian mutual aid programme began in 1950, in conjunction with the decision of the Canadian Government to re-equip its land forces with American-type equipment. The British-type equipment with which their forces had hitherto been supplied, or which was being kept in reserve stock, was made available to NATO.
From the beginning, Canadian aid has been made available on the basis of multilateral offering to NATO countries. It is transferred to individual European recipients in accordance with Canadian acceptance of allocations recommended either by the Standing Group or by the NATO Secretariat. In this way, the early phases of the Canadian aid programme provided the basic infantry and artillery weapons, motor vehicles, other equipment and ammunition to supply three European ground divisions (one Belgian, one Dutch and one Italian). Much additional equipment, ammunition and explosives have been donated, and every European member nation except Iceland (which has no armed forces) has been the beneficiary of Canadian military assistance."
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Also see e.g.
http://www.nato.int/archives/1st5years/chapters/12.htm on MDAP