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Exchange of Notes (June 30, 1952) between Canada and the United States of America concerning the Construction of the St. Lawrence Seaway [1952] CATSer 7 (30 June 1952)

E100431 - CTS 1952 No. 30

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA CONCERNING THE CONSTRUCTION OF THE ST. LAWRENCE SEAWAY

I

The Canadian Ambassador to the United States of America to the Acting Secretary of State of the United States of America

CANADIAN EMBASSY

WASHINGTON, June 30, 1952

The Honourable David Bruce,
Acting Secretary of State of the United States,
Washington, D.C.

Sir,

1. I have the honour to refer to our exchange of notes of January 11, 1952, relating to the St. Lawrence Seaway and Power Project. In my note to you, I informed you that the Canadian Government is prepared to proceed with the construction of the Seaway as soon as appropriate arrangements can be made for the construction of the power phase of the project as well.

2. I have been instructed by my Government to inform you that, when all arrangements have been made to ensure the completion of the power phase of the St. Lawrence project, the Canadian Government will construct locks and canals on the Canadian side of the International Boundary to provide for deep-water navigation to the standard specified in the proposed agreement between Canada and the United States for the development of navigation and power in the Great Lakes-St. Lawrence Basin, signed March 19, 1941, and in accordance with the specifications of the Joint Board of Engineers, dated November 16, 1926, and that such deep-water navigation shall be provided as nearly as possible concurrently with the completion of the power phase of the St. Lawrence project.

3. The undertaking of the Government of Canada with respect to these deep-water navigation facilities is based on the assumption that it will not be possible in the immediate future to obtain Congressional approval of the Great Lakes-St. Lawrence Basin Agreement of 1941. As it has been determined that power can be developed economically, without the seaway, in the International Rapids Section of the St. Lawrence River and as there has been clear evidence that entities in both Canada and the United States are prepared to develop power on such a basis, the Canadian Government has, with Parliamentary approval, committed itself to provide and maintain whatever additional works may be required to allow uninterrupted 27-foot navigation between Lake Erie and the Port of Montreal, subject to satisfactory arrangements being made to ensure the development of power.

4. Canada's undertaking to provide the seaway is predicated on the construction and maintenance by suitable entities in Canada and the United States of a sound power project in the International Rapids Section. The features of such a power project are described in Section 8 of the joint applications to be submitted to the International Joint Commission by the Governments of Canada and the United States. They are also described in the Agreement of December 3, 1951, between the Government of Canada and the Government of Ontario, forming part of the International Rapids Power Development Act, Chapter 13 of the Statutes of Canada, 1951, (second session), a copy of which is attached hereto. The Canadian Government wishes to make it clear that, even were the seaway not to be constructed, Canada would not give its approval to any power development scheme in the International Rapids Section of the St. Lawrence River which omitted any of the features so described.

5. However, in order to ensure that construction of both the power project and the deep waterway may be commenced without any further delay and notwithstanding:

(a) that the power-developing entities would be required, if power were to be developed alone, to provide for continuance of 14-foot navigation (such provision was indeed made in the 1948 applications by the Province of Ontario and the State of New York), and that the Canadian Government's commitment to provide concurrently a deep waterway between Lake Erie and the Port of Montreal does not alter the basic principle that any entity developing power in boundary waters must make adequate provision for the maintenance of existing navigation facilities, and

(b) that, in view of the clear priority given to navigation over power by Article VIII of the 1909 Boundary Waters Treaty, provision of channeling to the extent specified in the Annex to the 1951 Canada-Ontario Agreement referred to above is reasonable and in conformity with Canadian practice,

The Canadian Government is now prepared to agree:

(a) that the amount to be paid to Canada, as specified in the agreement of December 3, 1951, between Canada and Ontario, in lieu of the construction by the power-developing entities of the facilities required for the continuance of 14-foot navigation, be excluded from the total cost of the power project to be divided between the Canadian and the United States power-developing entities, in consideration of the fact that actual replacement of 14-foot navigation facilities will be rendered unnecessary by reason of the concurrent construction of the deep waterway in Canada, and

(b) that the authority to be established pursuant to the provisions of the St. Lawrence Seaway Authority Act, Chapter 24 of the Statutes of Canada, 1951 (Second Session), contribute $15 million towards the cost of the channel enlargement which the power-developing entities must undertake in the St. Lawrence River, as set out in para 4 of the Annex to the Canada-Ontario Agreement of December 3, 1951, and in Section 8 of the applications to the International Joint Commission, in consideration of the benefits which will accrue to navigation from such channel enlargement.

6. I understand that your government approves the arrangements outlined in this note and that it is further agreed, subject to the modifications outlined in the preceding paragraph, that the Government of Canada and the Government of the United States will request the International Joint Commission to allocate equally between the two power-developing entities the cost of all the features described in Section 8 of the applications to the International Joint Commission and in the agreement of December 3, 1951, between Canada and Ontario.

Accept, Sir, the renewed assurances of my highest consideration.

H. H. Wrong

II

The Acting Secretary of State of the United States of America to the Canadian Ambassador to the United States of America

DEPARTMENT OF STATE

WASHINGTON, June 30, 1952

His Excellency the Honorable Hume Wrong,
Ambassador of Canada

Excellency:

1. I have the honor to acknowledge the receipt of your note of June 30, 1952, in which you inform me that your Government, when all arrangements have been made to ensure the completion of the power phase of the St. Lawrence Project, will construct locks and canals on the Canadian side of the International Boundary to provide deep-water navigation to the standard specified in the proposed agreement between the United States and Canada for the development of navigation and power in the Great Lakes-St. Lawrence basin, signed March 19, 1941, and in accordance with the specifications of the Joint Board of Engineers, dated November 16, 1926, and that such deep-water navigation shall be provided as nearly as possible concurrently with the completion of the power phase of the St. Lawrence Project.

2. My Government approves the arrangements set forth in your note and, subject to the modifications there proposed and outlined below, agrees to request the International Joint Commission to allocate equally between the power-developing entities the cost of all the features described in Section 8 of the applications to the International Joint Commission and in the agreement of December 3, 1951, between the Government of Canada and Ontario.

3. These modifications are:

(a) The amount to be paid to Canada, as specified by the Agreement of December 3, 1951, between Canada and Ontario in lieu of the construction by the power-developing entities of facilities required for the continuance of 14-foot navigation, be excluded from the total cost of the power project to be divided between the Canadian and the United States power-developing entities, in consideration of the fact that actual replacement of 14-foot navigation facilities will be rendered unnecessary by reason of the concurrent construction of the deep waterway in Canada, and

(b) that the authority to be established pursuant to the provisions of the St. Lawrence Seaway Authority Act, Chapter 24 of the Statutes of Canada, 1951 (Second Session), contribute $15 million toward the cost of channel enlargement which the power developing entities must undertake in the St. Lawrence River, a set out in Section 8 of the Applications to the International Joint Commission and Paragraph 4 of the Annex to the Canada-Ontario Agreement of December 3, 1951, in consideration of the benefits which will accrue to navigation from such channel enlargement.

Accept, Excellency, the renewed assurances of my highest consideration.

David K. E. Bruce

ANNEX

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA IN WHICH THE GOVERNMENTS AGREED TO CO-OPERATE IN PREPARING APPLICATIONS TO THE I. J. C. FOR APPROVAL OF THE PLANS TO CONSTRUCT POWER FACILITIES ON THE ST. LAWRENCE IN CONNECTION WITH THE DEVELOPMENT OF AN ALL CANADIAN SEAWAY

I

The Canadian Ambassador to the United States of America to the Secretary of State of the United States of America

CANADIAN EMBASSY

WASHINGTON, January 11, 1952

No. 35

The Honourable Dean Acheson,
Secretary of State of the United States
Washington, D.C.

Sir,

I have the honour to refer to the discussion of the St. Lawrence Seaway and Power Project between the Prime Minister of Canada and the President of the United States which took place in Washington on September 28, 1951.

At that time, the President and the Prime Minister on the vital importance to the security and the economies of both countries of proceeding as rapidly as possible with both the seaway and the power phases of the project. The Prime Minister indicated that the Canadian Government would be willing to construct the seaway as a solely Canadian project if it is not possible to have the joint development undertaken on the basis of the 1941 Agreement. The President agreed to support this Canadian action if an early commencement of the joint development did not prove possible.

The Canadian Parliament has recently passed legislation providing on the one hand, for a power development on the St. Lawrence River, to be undertaken by the Hydro-Electric Power Commission of Ontario and an appropriate agency in the United States, and on the other hand, for the establishment of the St. Lawrence Seaway Authority to construct the seaway either in co-operation with the United States, as provided for in the 1941 Agreement, or as a solely Canadian undertaking. This legislation may now be brought into force at any time by proclamation.

The Canadian Government is prepared to proceed with the construction of the seaway as soon as appropriate arrangements can be made for the construction of the power of the St. Lawrence Project as well. Failing approval of the 1941 Agreement by the Congress, it will be necessary to refer the project to the International Joint Commission for approval. In order to proceed as rapidly as possible with the project, which the President and the Prime Minister have agreed is of vital importance, the co-operation of the United States Government in preparing concurrent applications for approval of the project to the International Joint Commission is requested.

Such a preparatory step would in no way prejudice the possibility of proceeding with the project on the basis of the 1941 Agreement in the event that the Congress should approve that Agreement. On the other hand, it is desirable to seek the approval of the International Joint Commission as soon as practicable in order to avoid any further delay in the event that the Congress does not approve the 1941 Agreement early in the present session.

It is proposed that appropriate officials of our two countries discuss the steps to be taken in proceeding with at reference of applications to the International Joint Commission for the construction of the project. A series of meetings beginning the middle of this month, either in Washington or in Ottawa, would be most appropriate for this purpose.

Accept, Sir, the renewed assurances of my highest consideration.

H. H. Wrong

II

The Secretary of State of the United States of America to the Canadian Ambassador to the United States of America

DEPARTMENT OF STATE

WASHINGTON, January 11, 1952

The Honourable Hume Wrong,
Ambassador of Canada

Excellency:

I have the honour to acknowledge the receipt of your note of January 11, 1952 concerning the St. Lawrence Seaway and Power Project.

My Government notes with gratification that the Canadian Parliament has passed legislation providing, on the one hand, for the construction of the power phase of the project to be undertaken by the Hydro-Electric Commission of Ontario and an appropriate agency in the United States and on the other hand, for the establishment of the St. Lawrence Seaway Authority to construct the seaway, either in cooperation with the United States as envisaged in the 1941 Agreement, or as a solely Canadian undertaking.

As you know, the President hopes that the Congress of the United States will approve, at an early date, the 1941 Agreement providing for joint construc­tion of the St. Lawrence Project. Should the Congress, however, not approve the 1941 Agreement at an early date, the Government of the United States is prepared, in order to avoid further delay in the construction of the St. Lawrence Project, to cooperate with the Government of Canada in referring the project to the International Joint Commission for approval on the under­standing, as expressed in your note, that your Government is prepared to proceed with the construction of the Seaway as soon as appropriate arrange­ments can be made for the construction of the power phases of the St. Lawrence Project as well.

In order that there may be a minimum of delay in the construction of the project, which the President of the United States and the Prime Minister of Canada have agreed is of vital importance to the security and the economy of both countries, my Government is ready to cooperate with your Government in undertaking such preparatory steps as may be advisable in presenting concurrent applications to the International Joint Commission. On behalf of my Government, I accept your proposal that appropriate officials of our two countries discuss the steps to be taken in proceeding with the reference of such applications. I agree that a series of meetings to be held either in Washington or in Ottawa, or at such other place as may be convenient, would be the most appropriate method for implementing this proposal. Although it is not possible for me now to propose an exact date, I expect that my Govern­ment will be prepared to begin these discussions sometime this month. I shall inform you as soon as my Government is ready to join in the discussions which you have proposed.

Accept, Excellency, the renewed assurances of my highest consideration.

Dean Acheson