711.42157Sa29/632a: Telegram

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

104. The President has followed with the greatest interest your reports concerning the proposed conference between the Prime Minister and the Premiers of Ontario and Quebec to decide the question of the ownership of the Canadian share of power which will be developed in connection with the proposed Great Lakes–St. Lawrence seaway and has been gratified to note that this conference will take place at an early date.

You will recall that Secretary Kellogg’s note of March 12, 1928, to [Page 528] Mr. Massey31 proposed that the two countries proceed with the appointment of Commissioners to discuss jointly the few remaining points of difference in respect of this project with a view to the formulation of a convention appropriate to the subject. The final sentence of Mr. Beaudry’s reply dated April 5, 1928,32 read as follows: “Following this consultation (with the Provinces of Ontario and Quebec) His Majesty’s Government in Canada will be in a position to inform the Government of the United States further of its views on the proposals contained in your note of March 12th.”

In view of the above-quoted sentence and the statements of the Prime Minister to you from time to time since then, the President feels confident that the appointment of Commissioners will be agreed upon in the near future. On this account you are authorized, if you deem it advisable to do so, to initiate informal discussion with the Canadian Government concerning the matter of the number and character of Commissioners.

The Canadian Government’s proposals as set forth in its note to you of August 7th last33 in the matter of providing forthwith a 25 foot channel in the international section of the St. Lawrence River have received the Department’s careful consideration. As you are doubtless aware, the Army engineers made a survey of this section in pursuance of an Act of Congress and submitted estimates of the cost of removing shoals with a view to providing a 22 foot channel between Lake Ontario and Ogdensburg on the theory that a channel of that depth is sufficient for the requirements of existing shipping. In these circumstances, the War Department cannot under the law give the matter further consideration unless directed to do so by Congress.

This Government is, of course, committed to the construction of the Great Lakes–St. Lawrence Seaway which would involve a 27 foot channel in the international section and stands ready to appoint Commissioners to settle jointly details of the project. The United States Government, however, would prefer to have the benefit of the judgment of the Commissioners before undertaking any piecemeal improvements. You may accordingly suggest to the Prime Minister the appointment of such Commissioners at the earliest practicable moment and say to Mr. King that if the Commissioners recommend the immediate improvement of the international section, as proposed by the Canadian Government, and as a part of the broader project, the President will immediately thereafter recommend to Congress that appropriations be voted to carry out the works in American waters.

Your telegram No. 181 of September 1933 stated that the Prime [Page 529] Minister desires to know whether this Government would agree to allow the Canadian Government to proceed with the necessary improvements in American waters as well as in Canadian waters on the understanding that the United States Government would ultimately reimburse Canada for expenses incurred in deepening American channels. Such an undertaking could only be given by Congress and in view of the positive action already taken and the definite recommendations made by Army Engineers (Mentioned in paragraph one above) it would probably be exceedingly difficult to convince Congress that more extensive improvements are necessary or desirable unless they could be linked with the whole St. Lawrence project.

Stimson