administered as to achieve comparable effects in each country. To the extent possible, there shall be consultation to this end prior to the institution of any system of controls in either country which affects the other. 4. In order to facilitate essential production, the technical knowledge and productive skill involved in such production within both countries shall, where feasible, be freely exchanged. 5. Barriers which impede the flow between Canada and the United States of goods essential for the common defense effort should be removed as far as possible. 6. The two Governments, through their appropriate agencies, will consult concerning any financial or foreign exchange problems which may arise as a result of the implementation of this agreement. 32. ESTABLISHMENT OF A JOINT COMMITTEE ON TRADE AND ECONOMIC AFFAIRS: White House Announcement, November 12, 1953 1 1 The President today announced that the Governments of the United States and Canada have concluded an agreement establishing a joint United States-Canadian Committee on Trade and Economic Affairs. The agreement was effected by an exchange of notes between the Canadian Ambassador in Washington and the United States Secretary of State today. The Canadian members of the Committee will consist of the Secretary of State for External Affairs and the Ministers of Finance, Trade and Commerce, Agriculture or Fisheries. The United States members will be the Secretaries of State, and Treasury, Agriculture, and Commerce. The suggestion that a joint committee of this type might be established was originally made during the visit of the Prime Minister to Washington last May. Both Governments have recognized that the free world is vitally interested in promoting a healthy flow of international trade. The activities of the Joint Committee will constitute one aspect of the efforts of both countries in promoting satisfactory trade relations on a multilateral basis throughout the free world. The Joint Committee, which will meet at least once a year alternately in Washington and Ottawa, will consider broad questions affecting the harmonious economic relations of the two countries. After receiving reports of the Joint Committee's work each Government will have an opportunity to consider measures to improve economic relations and to encourage the flow of trade. This announcement is being released simultaneously in Ottawa by the Department of External Affairs. 1 Department of State Bulletin, Nov. 30, 1953, pp. 739-740. For exchange of notes establishing the committee, see ibid., p. 740. 33. TRADE, DEFENSE, AND THE SEAWAY AND POWER PROJECT: Joint Communiqué, November 14, 1953 1 During the course of President Eisenhower's state visit to Canada, the Prime Minister of Canada and members of the Canadian Cabinet had an opportunity of having informal discussions with him on matters of mutual interest to the United States and Canada. The President and the Prime Minister last reviewed some of these questions when the Prime Minister visited Washington last May.2 2. Views were exchanged on recent developments in the world situation and on measures which might bring about a relaxation of current international tensions. It was agreed that all efforts for peace and improved world conditions being made by the United Nations or elsewhere should be supported and the necessity of maintaining the strength, unity, and determination of the free world to resist aggression was fully recognized. 3. The President and the Prime Minister agreed on the importance to the free world of healthy national economies and of the expansion of world trade on a multilateral basis. Satisfaction was expressed at the recent establishment of a joint United States-Canadian Committee on Trade and Economic Affairs. The importance of the St. Lawrence Seaway and Power Project was emphasized, and there was full agreement on the urgency of initiating the first phase-construction of the Power Project in accordance with arrangements which already have been made between the two governments. 4. In discussing the means of strengthening the security of the free world, the importance of collective arrangements under the North Atlantic Treaty Organization was emphasized, including the special responsibility of the United States and Canada for building up the defenses of this continent. There was complete agreement on the vital importance of effective methods for joint defense, especially in the light of evidence of increasing technical capability of direct attack on both countries by weapons of great destructive power. Cooperation on joint defense matters had its origin in the Ogdensburg Agreement of 19403 which established the Permanent Joint Board on Defense. In 1947 the two countries issued a joint statement which set forth the principles and methods by which cooperation would be continued and strengthened. The full respect of each country for the sovereignty of the other is inherent in these principles. These principles are equally valid today when Canada and the United States, recognizing that the defense of North America must be considered as a whole, are undertaking further efforts for their joint security. The arrangements for collaboration which have proved satisfactory 4 1 Department of State Bulletin, Nov. 30, 1953, pp. 738-739. See the joint communiqué of May 8, 1953; ibid., May 25, 1953, pp. 752-753. Joint declaration of Aug. 18, 1940, by President Roosevelt and Prime Minister Mackenzie King (ibid., Aug. 24, 1940, p. 154). See also ibid., Nov. 8, 1941, p. 360, and Feb. 4, 1945, p. 162. 'Statement of Feb. 12, 1947; A Decade of American Foreign Policy, pp. 686-687. over the years provide a firm basis on which to carry forward the close relationship between Canada and the United States in matters of common defense. 34. ST. LAWRENCE SEAWAY AND POWER PROJECT: Exchange of Notes Between the Acting Secretary of State and the Canadian Ambassador in Washington, June 30, 19521 CANADIAN NOTE SIR, 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 base of the project as well. 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, 1941,3 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. 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. 1 Department of State Bulletin, July 14, 1952, pp. 65-67. For a compilation of pertinent documents, including a chronology (1783-1955), see St. Lawrence Seaway Manual: A Compilation of Documents on the Great Lakes Seaway Projec and Correlated Power Development (S. Doc. No. 165, 83d Cong., 2d sess., 1955). 2 For texts of notes, see Department of State Bulletin, Feb. 11, 1952, pp. 234-235. 3 Ibid., Mar. 22, 1941, pp. 307–313. S. Doc. No. 183, 69th Cong., 2d sess. 1 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 applications to be submitted to the International Joint Commission by the Governments of Canada and of 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.2 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. 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 CanadaOntario 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 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 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 International Joint Commission was established under the Boundary Waters Treaty of 1909 between the United States and Great Britain (for the Dominion of Canada), and is composed of three members each from Canada and the United States. For the text of the treaty see Treaty Series 548 (36 Stat. 2448). 2 Not reprinted in the Department of State Bulletin or in the St. Lawrence Seaway Manual. 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 paragraph 4 of the Annex of 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. 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 [etc.] UNITED STATES NOTE EXCELLENCY: HUME WRONG 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 ar rangements 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 deepwater navigation to the standard specified in the proposed agreement between the United States and Canada for the development of navi gation 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 deepwater navigation shall be provided as nearly as possible concurrently with the completion of the power phase of the St. Lawrence project. 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 9, 1951, between the Governments of Canada and Ontario. 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 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 |