Bills, communications, illustrations, reports, etc.—Continued Page Permanent Joint Board of Defense of Canada and the United States, 401 Pillsbury, Brig. Gen. George B., former Assistant Chief of Engineers, 293 Power Authority Act of New York State. Power Authority of the State of New York, project No. 2000, opinion Quebec-Labrador ore, estimated cost to deliver to consuming centers.. Railway Age, excerpt from editorial. Railroad cars required to transport iron ore, Montreal to Pittsburgh__ Senate Committee on Foreign Relations, excerpt from report, 1946- 593 626 Shipping losses, World War II, at selected coastal areas, table.... Small, John D., Munitions Board, letter re coastal shipping losses_ S nith, Nelson Lee, Federal Power Commissioner, dissenting opinion on Steep Rock, anticipated production of iron ore, 1951-65- Steep Rock area, excerpt from magazine Steel article. Steep Rock iron ore, annual production 1944-1950 table. Steep Rock iron ore deposits, prepared by Bureau of Mines__ Steep Rock mining plan, longitudinal section, illustration... - Sykes, Wilfred, Inland Steel Co., excerpts from statements. Sykes, Wilfred, Inland Steel Co., excerpts from letter.. Taconite plants operating--- Vessels, merchant, under construction or on order, U. S. shipyards, 625 Vessel trips, examples of effects of consumption of water and stores 624 Wayne County (Mich.) Board of Supervisors, resolution.. 469 607 218 White, H. C., president, Republic Steel Corp., excerpt from statement. 431 463 53, 55 ST. LAWRENCE SEAWAY TUESDAY, FEBRUARY 20, 1951 HOUSE OF REPRESENTATIVES, The committee met, pursuant to notice, at 10:05 a. m. in room 1302 New House Office Building, Hon. Charles A. Buckley (chairman) presiding. The CHAIRMAN. The meeting is called to order. Mr. McGann, call the roll. (Whereupon the roll was called by Mr. McGann.) Mr. CHAIRMAN. A quorum being present, we will now proceed. These hearings are on House Joint Resolution 2 (Mr. Kilburn), House Joint Resolution 3 (Mr. Dingell), House Joint Resolution 4 (Mr. Blatnik), House Joint Resolution 15 (Mr. Dondero), House Joint Resolution 102 (Mr. Zablocki), House Joint Resolution 122 (Mr. O'Brien), House Joint Resolution 159 (Mr. Potter), and House Resolution 2536 (Mr. Roosevelt), all providing for approving the agreement between the United States and Canada relating to the development of the resources of the Great Lakes-St. Lawrence Basin for national security and continental defense of the United States of America and Canada; providing for making the St. Lawrence seaway self-liquidating; and for other purposes. The text of House Joint Resolution 4, introduced by Mr. Blatnik, a member of this committee, will be inserted in the record at this point. (H. J. Res. 4 is as follows:) [H. J. Resolution 4, 82d Cong., 1st sess.] JOINT RESOLUTION Approving the agreement between the United States and Canada relating to the development of the resources of the Great Lakes-Saint Lawrence Basin for national security and continental defense of the United States and Canada; providing for making the Saint Lawrence seaway selfliquidating; and for other purposes Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That, as provided by article XIII of the Boundary Waters Treaty of 1909 between the United States and Great Britain, the agreement made by and between the Governments of the United States and Canada, dated March 19, 1941, published in House Document Numbered 153, Seventy-seventh Congress, first session, is hereby approved, with the exception of article VII, article VIII, paragraph (c), and article IX thereof, and the President is hereby authorized and empowered to fulfill the undertakings made on behalf of the United States in said agreement, with the exception of article VII, article VIII, paragraph (c), and article IX, upon the receipt by him of satisfactory evidence of the approval of said agreement with the exceptions provided above, by reciprocal or concurrent legislation of Canada: Provided, That the President, before said agreement enters into force, obtains satisfactory assurances, by exchange of notes or otherwise, that the Government of Canada agrees to the principle of making the new deep-water navigation works on the Saint Lawrence River herein authorized self-liquidating 1 by charging reasonable tolls, this principle to be implemented through the conclusion of arrangements satisfactory to both Governments pursuant to section 3 of this joint resolution. SEC. 2. It is the sense of the Congress that it would be desirable for the President to negotiate with Canada a treaty with reference to matters provided for in article VII of the agreement of March 19, 1941, including provisions with respect to perpetual navigation rights on the Great Lakes, on the connecting channels and canals and in the wholly Canadian sections of the Saint Lawrence River; and to submit such treaty for the advice and consent of the Senate of the United States. SEC. 3. (a) During the period of construction the President is authorized and directed to negotiate a further agreement with the Government of Canada, under the provisions of the Boundary Waters Treaty of 1909, defining the rates of charges or tolls to be levied on cargoes and passenger traffic using the new deepwater navigation facilities on the Saint Lawrence River, authorized in this joint resolution: Provided, That (1) the total charges shall be fair and equitable and shall give due consideration to encouragement of increased utilization of the navigation facilities, and to the special character of bulk agricultural, mineral, and other raw materials; (2) that tolls shall vary for ships in ballast and according to the character of cargo with the view that each classification of cargo will so far as practical derive relative benefits from the use of these facilities; (3) that in no event shall the total charges exceed the equivalent of $1.25 per short ton of laden cargo, and in the case of agricultural and mineral raw materials, exceed 50 cents per short ton; (4) that tolls shall apply only on traffic utilizing the new deep-water navigation works on the Saint Lawrence River, with such exception of local or way or Government traffic as may be agreed upon by the two countries: Provided further, That such agreement shall become effective only after approval by the Congress of the United States and the Parliament of Canada. (b) The President may, at his discretion, appoint a Saint Lawrence Advisory Commission, to cooperate with similar representatives of the Government of Canada, for the purpose of studying and, after public hearings, making recommendations to their respective Governments on the administrative, technical, and economic aspects of a toll system on the proposed twenty-seven-foot Saint Lawrence canals, as a basis for the agreement on tolls proposed in this section. SEC. 4. (a) There are hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be required to carry out the provisions of this joint resolution and to enable the United States to carry out the undertakings hereby authorized. (b) Unless Congress by law authorizes such action, no amendment of the agreement, and no exchange of notes under article I, section 4, thereof, shall impose additional financial or other obligations on the United States. SEC. 5. The President is hereby authorized and directed to negotiate an arrangement with the government of the State of New York for the transfer to the appropriate agency of that State of the power facilities on the United States side of the International Rapids constructed pursuant to this joint resolution, the cost to be determined in accordance with the method of allocation included in the joint recommendation of the Corps of Engineers, United States Army, and the Power Authority of the State of New York, dated February 7, 1933, presented at public hearings of the Committee on Foreign Relations February 10, 1933, Seventy-second Congress, second session: Provided, That such arrangement is consistent with the laws of the United States and protects the interests of the United States and of other States, including guaranties for making available of a fair proportion of the United States share of the power generated by said facilities to the New England States within economic transmission distance: And provided further, That such arrangement will be effective only after approval by the Congress of the United States and the Legislature of the State of New York. The CHAIRMAN. In order to save the time of the committee, I will now insert in the record a statement which shows the manner in which each bill differs from the other. A copy of this statement has been or is now being furnished to each member of the committee. (The document referred to is as follows:) These resolutions are substantially alike except as to three points: (1) Reference to diversion of waters of Niagara River, which is covered by the treaty ratified by the United States Senate on August 9, 1950 (in H. J. Res. 2, 102, and 122; not in others); (2) Provision of a maximum toll of 50 cents per short ton for agricultural and mineral raw materials (in H. J. Res. 3 and 4; not in others); and (3) Assurance of a proportionate share of United States power for the New England States (in H. J. Res. 3, 4, 15, 159, H. R. 2536; not in others). All provide for the charging of reasonable tolls with a maximum of $1.25 per ton of laden cargo. House Joint Resolution 3 (Mr. Dingell) is identical to House Joint Resolution 4. House Joint Resolution 15 (Mr. Dondero) is identical to House Joint Resolutions 3 and 4, except for the following difference appearing in (3) of the first proviso in section 3: Each provides a maximum toll of $1.25 per short ton; however, House Joint Resolutions 3 and 4 provide the qualifying maximum that in the case of agricultural and mineral raw materials toll charges shall not exceed 50 cents per short ton whereas House Joint Resolution 15 does not have the 50-cent limitation for agricultural and mineral raw materials. House Joint Resolution 159 (Mr. Potter) is the same as House Joint Resolution 15 except for the insertion of the words "of the aforesaid facilities" after the words "transmission distance" in the first proviso of section 5. H. R. 2536 (Mr. Roosevelt) is the same as House Joint Resolution 159 and substantially identical to House Joint Resolution 15 except for the use of the word "Act" instead of the words "joint resolution" in the text. House Joint Resolution 2 (Mr. Kilburn) while in the main being similar to House Joint Resolutions 3 and 4, has the following differences: (1) Provision is made in section 2 for negotiation of a treaty with respect to the diversion of waters of Niagara River (not in House Joint Resolutions 3 and 4); (2) There is no 50 cent limitation on tolls for agricultural and mineral raw materials (in H. J. Res. 3 and 4); and (3) There is no provision in section 5 assuring a fair proportion of the United States share of the power to the New England States within economic transmission distance (in H. J. Res. 3 and 4). House Joint Resolution 102 (Mr. Zablocki) and House Joint Resolution 122 (Mr. O'Brien) are identical to House Joint Resolution 2. With respect to House Joint Resolution 2, 102 and 122 (sec. 2), the treaty on the diversion of waters of Niagara River has been negotiated by the Governments of the United States and Canada and was ratified by the United States Senate on Aug. 9, 1950. The CHAIRMAN. We are honored by having with us the distinguished Secretary of Commerce, the Honorable Charles Sawyer. Mr. Sawyer, we will be glad to have your statement at this time. STATEMENT OF CHARLES SAWYER, SECRETARY OF COMMERCE Secretary SAWYER. Mr. Chairman, I am here this morning to open the testimony in support of legislation authorizing the construction of the Great Lakes-St. Lawrence seaway and power project. This project, which will powerfully enhance our national strength and security and the continental defense of the United States and Canada, has long been a vital one-today it has become urgent as well. In my appearance I speak not only in my own capacity but, at the President's request, as coordinator of testimony by Administration officials in its support. Among those who will join in this presentation of the case for prompt approval of this legislation are the Secretaries of State, Defense, and the Interior, the Director of Defense Mobilization, the Chairmen of the Munitions Board and the Federal Power Commission, the Maritime Administrator, and the Chief of Army Engineers. NATURE OF THE LEGISLATION There are several joint resolutions and one bill on this subject before the committee, all of them seeking to accomplish exactly the same objectives. All are based on House Joint Resolution 271 and identical measures in the Eighty-first Congress, on which hearings were held by this committee last spring. At least three of these (House Joint Resolutions 3, 4, and 15) incorporate changes to reflect the entering into force of the Niagara Treaty last summer and are identical, except for minor variations, with Senate Joint Resolution 27, recently introduced. These measures are all different from those considered prior to the Eightieth Congress in one important respectthat of self-liquidation of the navigation works. The principal purpose of the joint resolutions, as expressed in the opening section, is to approve the agreement of March 19, 1941, between the Governments of the United States and Canada, with the exception of certain articles thereof. Mr. DONDERO. Mr. Secretary, I assume you would rather not be interrupted and would rather finish your statement before we ask you questions? Secretary SAWYER. I have no preference, really. Mr. DONDERO. I think the committee, Mr. Chairman, would be vitally interested in the substance of that treaty which we made with Canada with regard to the power at Niagara and affecting other power on the St. Lawrence seaway, which is so very necessary there. Secretary SAWYER. As I understand it, the program is for the Secretary of State to discuss the matters of treaties before the committee. Mr. DONDERO. Very well. Secretary SAWYER. Section 1 also contains a provision that the President, before the international agreement enters into force, shall obtain satisfactory assurances that the Government of Canada agrees to the principle of making the navigation works self-liquidating. In section 2, the resolutions express the sense of the Congress that the negotiation of treaties with reference to the matters provided for in two of these articles would be desirable. Section 3 authorizes and directs the President to negotiate an agreement with Canada on tolls. Section 4 authorizes appropriations to carry out the provisions of the joint resolutions. Section 5 authorizes and directs the President to negotiate an agreement with the government of the State of New York for the transfer to that State of power facilities constructed pursuant to this measure. In some versions it also requires that this agreement, which shall be subject to the approval of the Congress and the New York Legislature, shall, in protecting the interests of the United States and other States than New York, include guaranties to make a fair proportion of the power available to the New England States within economic transmission distance. This general introduction, Mr. Chairman, runs along the same lines I followed last spring when I appeared here on this subject. At that time I went on to emphasize the growing public understanding of the purpose and importance of the project in both its phases and to indicate why its construction had become important for our national security as well as our economic strength and growth. NATIONAL SECURITY ASPECTS Emphasis today is properly placed upon national security first of all. Since last spring we have found ourselves confronted with a |