711.4216Sa22/118

The Minister in Canada (Phillips) to the Secretary of State

No. 313

Sir: Referring to the Legation’s despatch No. 306 of March 27, 1928,67 on the subject of the measurement and apportionment of the waters of the St. Mary and Milk Rivers and their tributaries, I have the honor to transmit herewith enclosed copies of a note dated March 23, 1928, received from the Department of External Affairs on the subject.

It will be observed that this note dated the 23rd was only received by the Legation yesterday. In this connection I may call the Department’s attention to the fact that the note appears to be substantially in accord with the view expressed to me by the Under Secretary of State for External Affairs as reported in the despatch under reference.

I have [etc.]

William Phillips
[Page 100]
[Enclosure]

The Canadian Secretary of State for External Affairs (Mackenzie King) to the American Minister (Phillips)

Sir: I have the honour to refer to your letter of July 29th, 1927,68 of which acknowledgment was made on August 2nd, inviting the attention of the Canadian Government to certain phases of the measurement and apportionment of the waters of the St. Mary and Milk Rivers and their tributaries. I note that it is the view of the United States Government that Article VI of the Boundary Waters Treaty primarily contemplated an equal division of the water of the St. Mary and Milk Rivers between the two countries, and that such equal division is not effected by the Order of the International Joint Commission of October 4th, 1921. It is further noted that the United States Government has brought this matter to the attention of the Chairman of the United States Section of the International Joint Commission, with a request that the matter should be re-opened and that the Canadian Government is requested, if it concurs in the views expressed in regard to the interpretation of Article VI of the Treaty, to cause the Canadian Section of the Commission to be so informed.

The Canadian Government is deeply concerned that the integrity of the system created by the Treaty of 1909 should be maintained at full strength, and it is confident that the United States Government shares this anxiety. At that time, after careful study of conditions along the boundary conducted by the International Waterways Commission and after extensive interchanges of views, the two Governments finally negotiated this important agreement. They established a set of general principles, and an international tribunal entrusted with the high task of applying these principles to specific questions arising from time to time between the two countries, with a fair assurance that they would be determined with something of that finality and certainty which the domestic courts of each country achieve in their sphere. This great act of state on the part of the two countries in reality broke new ground; it represented at the time a notable advance in the conduct of international relations. The worth of the system has been abundantly proven, not only out of its own experience of now nearly twenty years, but by the adoption of analogous methods in other regions of the world. It has naturally resulted in a growing body of practice and habit of a character appropriate to the exercise of these weighty arbitral functions, and it can scarcely be doubted that it remains a major interest of the peoples of this continent that [Page 101] this system and this character of its practice should be perpetuated in every way.

It seems clear to the Canadian Government that if the settlement of any given issue reached under this system could be regarded as subject to being re-opened at any time at the simple request of either party, there could be no hope of finality or of certainty, and the integrity and usefulness of the whole system would be gravely endangered. If the re-opening of such an award is ever justifiable at all, it would seem that such a course could be justified by nothing less than a new situation arising from new conditions, which were not in existence at the time of the award, which could not reasonably have been contemplated at the time, and which are of a character to render the award a substantial denial of justice. In the present case, no such conditions have arisen; there is simply the proposal that the Commission should reconsider a point of interpretation upon which the two Governments held different views at the original hearings and which was fully debated and in the end was finally settled as part of the award of the Commission, though not completely in the sense urged by either Government. This decision of the Commission has been acted upon by both Governments over a long period, and in reliance upon it, important capital investments have been made.

While the Commission’s Order did not concede all that Canada had contended for, Canada has nevertheless accepted the Order as a final settlement of what had been a vexed and contentious international question, and has proceeded to utilize to the full her share of the apportioned water, and to authorize the necessary investment in connection therewith. Irrigation development which had been hampered and held up because of uncertainty as to water supply, has since been proceeded with to the limit of the Canadian allotment.

In view of these considerations, the Canadian Government feels the re-opening of this matter in the manner proposed would be unfortunate, and regrets therefore that it cannot see its way to join in a request that the International Joint Commission should reconsider its decision.

These conclusions are based upon general considerations as to the character and procedure of the awards of the International Joint Commission, which appear to make it unnecessary to examine in detail the reasons advanced in favour of re-opening this specific question. Reference, however, may be made to the view expressed in the Secretary of State’s letter of July 26th, 1927, that the Boundary Waters Treaty primarily contemplated an equal division of the waters of the St. Mary and Milk Rivers between the two countries, and that in view of the unequal apportionment of the flow of the St. Mary River set forth in the Order of October 4th, 1921, it is apparent [Page 102] that an equal division of the waters is not effected. Article 6 of the Boundary Waters Treaty provides that the St. Mary and Milk Rivers are to be treated as one stream for the purposes of irrigation and power, and the waters divided equally between the two countries. It is, however, further provided in this Article that in making such an equal apportionment, more than half may be taken from one river and less than half from the other by either country so as to afford more beneficial use to each, and that in the division of the waters during the irrigation season certain priority shall be accorded to the United States as regards the Milk River and to Canada as regards the St. Mary River. It is therefore not apparent how a reference to the one clause alone in the Commission’s Order of 1921, providing for an unequal division of the waters of the St. Mary River, with the major portion allotted to Canada, without taking account of the provision for an exactly corresponding unequal division of the waters of the Milk River, with the major portion allotted to the United States, or account of the other provisions of the Order in question, could in any way be held to establish the view that the Order of the Commission was not consistent with the Treaty.

The Canadian Government appreciates the desirability of ensuring as large a volume of water from the rivers in question as is economically feasible for users on both sides of the boundary. In this connection it wishes to refer to the fact that under present conditions there is considered to be a large waste of water. The International Joint Commission on October 6th, 1921, recommended to the two Governments consideration of the construction of certain reservoirs which would make it possible to conserve practically the entire winter flow and flood waters of the two streams, and ensure the greatest beneficial use to both countries. On April 10th, 1922, the Secretary of State of the United States, in a communication to the British Ambassador at Washington,69 suggested that as the first step towards the determination of any action which should be taken upon these recommendations, a joint board of engineers should be appointed to make a thorough study of the problems involved in the construction of the proposed reservoirs and the storage and distribution of the waters of the St. Mary and Milk Rivers. Some difficulty was felt in Canada on the ground that the recommendation involved the expenditure of Canadian funds on works to be constructed in the United States, and no definite conclusion was reached. While the Canadian Government still adheres to the reservations expressed in the course of this correspondence, it believes, as a result of subsequent preliminary enquiry, that it might be possible to reach a solution. It would therefore be prepared to consider with the Government of the [Page 103] United States the formation of such a joint board to make a thorough study of the problem involved in the construction of storage reservoirs in both countries designed to increase the volume and regularity of the flow, particularly during the irrigation season, of the waters of the St. Mary and Milk Rivers, the apportionment to continue to be on the basis established by the International Joint Commission in its Order of the 4th October, 1921.

The Canadian Government is bringing to the attention of the International Joint Commission its views as set forth in this despatch.

Accept [etc.]

W. L. Mackenzie King
  1. Not printed.
  2. See instruction No. 16, July 26, 1927, to the Minister in Canada, p. 97.
  3. Not printed.