711.42157SA29/1326a
The Secretary of State to President Roosevelt
My Dear Mr. President: Today you spoke to me about recent developments in connection with the St. Lawrence Waterway Treaty. You recall that in October Mr. Phillips went up to Ottawa to discuss the Trail Smelter question73 with Prime Minister Bennett and while there he also raised the question of the St. Lawrence Treaty in accordance with your instructions. He pointed out to Prime Minister Bennett that you are keenly desirous of resubmitting the Treaty to the Senate at the forthcoming session of Congress, but that you desired [Page 980] that we discuss with the Canadian authorities several proposed changes in the Treaty, and he asked that the Prime Minister authorize Mr. Herridge, the Canadian Minister here, to discuss these proposed changes with us. The Prime Minister promised to give consideration to this matter and to authorize Mr. Herridge to talk to us about these changes.
On December 4 an officer of this Department called Mr. Robbins, our Minister at Ottawa, on the telephone and suggested that he speak to the Prime Minister about this matter since we have heard nothing from Mr. Herridge on the subject. Mr. Robbins went to see Prime Minister Bennett and also spoke to Mr. Herridge, who was in Ottawa, about it. Later in the day, Mr. Herridge called Mr. Hickerson of this Department on the telephone and told him that upon his return to Washington he would be glad to discuss the whole question with us. Mr. Herridge added that, in view of the political situation in Canada, he felt that it would be exceedingly difficult for the Canadian Government to agree to any changes of importance in the present Treaty, but he went on to say that he would be glad to discuss with us any proposals which you have in mind.
On Monday and Tuesday of this week Doctor O. D. Skelton, the Canadian Under Secretary of State for External Affairs was in Washington in connection with the Trail Smelter matter, and while he was here, Mr. Phillips and Mr. Hickerson discussed the St. Lawrence Treaty with him. Doctor Skelton said that the announcement of Mr. Hepburn, Premier of Ontario, that he would not seek legislation to approve the power agreement between the Dominion Government and the Province of Ontario had placed Prime Minister Bennett in an exceedingly difficult position in respect to the St. Lawrence Treaty. He said that he did not believe anyone had been able to determine whether Mr. Hepburn’s announcement signifies a real opposition to the project, or whether it is merely a step in building up a bargaining position for a better agreement between the Province of Ontario and the Dominion Government. At all events, he said, Prime Minister Bennett would unquestionably run a serious risk if he sought to have the Dominion Parliament approve a St. Lawrence Treaty in advance of an agreement with the Province of Ontario which is acceptable to Mr. Hepburn. He continued that to approve the Treaty and start the construction work prior to reaching such an agreement would effectively deliver the Dominion Government into the hands of the Province of Ontario, the only possible purchaser of Canada’s share of the power which will be developed in the International Rapids Section of the St. Lawrence River. Doctor Skelton stated that in all the circumstances he felt that it would be very difficult for the Canadian Government to agree to any changes of importance in the present Treaty, adding [Page 981] that it was by no means certain that Canada could ratify even the present Treaty.
We understand that Mr. Herridge will return to Washington in a few days at which time we shall begin conversations with him respecting the Treaty. I believe that it would be desirable for us to have a brief conference with you in the early part of the coming week, respecting the proposals which you desire us to discuss with Mr. Herridge.
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