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Exchange of Notes between the Government of Canada and the Government of the United States of America constituting an Agreement for the Final Settlement of Claims relating to Gut Dam [1968] CATSer 9 (18 November 1968)

E100454

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT FOR THE FINAL SETTLEMENT OF CLAIMS RELATING TO GUT DAM

I

The Secretary of State for External Affairs to the Ambassador of the United States of America

OTTAWA, November 18, 1968

L - 877

His Excellency Harold F. Linder,
Ambassador of the United States,
Ottawa

Excellency,

I have the honour to refer to the proceedings held before the Lake Ontario Claims Tribunal on Friday, September 27, 1968.

The Tribunal was established by agreement between Canada and the United States to dispose of United States claims against the Government of Canada for damage or detriment allegedly attributable in whole or in part to the construction and maintenance of a dam in the international section of the St. Lawrence River known as "Gut Dam". The agreement, establishing the Tribunal, which is dated March 25, l965, came into force on October 11, 1966.

Following the conclusion of the Tribunal’s second session in February, 1968, it was suggested by the Tribunal that a compromise settlement might be negotiated. In consequence, representatives of the two Governments have consulted over the past few months in an effort to resolve the longstanding dispute in respect of Canada's alleged liability arising out of the construction and maintenance of Gut Dam. These discussions were held in the atmosphere of good neighbourliness and friendship which traditionally characterizes the relationship of our two Governments.

As a result of the discussions, the two Governments were in a Position to inform the Tribunal at its meeting of September 27, 1968, that a settlement had been reached for the final disposal of the dispute. The general terms of this settlement were recorded by the Tribunal and it is the understanding of my Government that the settlement is as follows:

(a) The Government of Canada will make, and makes herewith, a lump sum payment to the Government of the United States of U.S. $350,000 in full and final satisfaction of all claims of the United States for damage allegedly caused by Gut Dam.

(b) The Government of the United States for its part will not further prosecute the claims before the Tribunal and will recognize such lump sum payment of U.S. $350,000 as constituting full and final settlement of all claims, past, present or future, of nationals of the United States, whether natural or juridical persons, against the Government of Canada on account of damage or detriment attribut­able in whole or in part to the construction and maintenance of Gut Dam; and

(c) The settlement is made without prejudice to the legal and factual positions maintained by the parties and without precedential effect.

I should appreciate your confirming that this understanding of the nature and effect of the settlement is shared by the United States.

Please accept, Excellency, the renewed assurances of my highest consideration.

Paul Martin

Acting Secretary of State for External Affairs

II

The American Ambassador to the Acting Secretary of State for External Affairs of Canada

OTTAWA, November 18, 1968

No. 464

The Honorable Paul Martin, P.C.,
Acting Secretary of State for External Affairs,
Ottawa

Sir:

I have the honor to refer to your note of this date concerning the terms of a settlement for the final dispositions of all claims of the United States against the Government of Canada for damage or detriment attributable in whole or in part to the construction and maintenance of a dam in the international section of the St. Lawrence River known as Gut Dam.

I wish to advise that the Government of the United States shares the understanding of the settlement as set out in the note of the Government of Canada. I also acknowledge receipt of the Government of Canada check in the amount of U.S. $350,000, made payable to the Government of the United States, enclosed with the note.

Please accept, Sir, the renewed assurances of my highest consideration.

Harold F. Linder

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