842.20 Defense/12–3044

The Canadian Secretary of State for External Affairs (Mackenzie King) to the American Ambassador in Canada (Atherton)1

No. 141

Excellency: I have the honour to refer to previous correspondence concerning the acquisition by the Canadian Government of land required by the United States for the purpose of carrying out their defence projects in this country.

Opportunity was taken of the presence in Ottawa of Brigadier-General F. S. Strong, Jr., and Captain C. B. Schmeltzer of the Northwest Service Command and Major Robert H. Fabian of the Engineers R. E. Division, United States War Department to discuss this matter. Accordingly a meeting took place in October in which participated the above-mentioned persons, together with members of this Department and of other governmental departments concerned.

The conclusions reached at this meeting have been embodied in a memorandum, six copies of which are enclosed herewith together with six copies of the enclosure referred to therein.

The proposals set forth in the memorandum for the purpose of solving the problem of acquisition of land for United States defence projects are acceptable to the Canadian Government and it would be appreciated if you would inform me whether they meet with the same approval on the part of the United States Government.

Accept [etc.]

J. E. Read
2
For Secretary of State for External Affairs
[Enclosure—Memorandum]

Setting forth the Conclusions reached at a Meeting between Representatives of the United States and Canadian Governments held at Ottawa, October 20, 1944, to deal with Procedures Relating to Acquisition by the Canadian Government of Land Required for United States War Projects in Canada.

[Page 211]

1. The conclusion was reached that the acquisition by the Canadian Government of land required for United States war projects in Canada should be in accordance with the following procedure:

In all cases where land is needed by the United States for a major war project, a request concerning it should be forwarded through the State Department to the Department of External Affairs. In the case of minor projects involving the use of land, the United States authorities should communicate their requirements, in the case of land in Northwest Canada, to the Special Commissioner for Defence Projects in Northwest Canada, Edmonton, Alberta. (For the purpose of this memorandum, Northwest Canada is deemed to include all lands situated in Canada west of the fourth meridian in the system of Dominion land surveys). In the case of minor projects situated in other parts of Canada, the appropriate channel would be through the Department of External Affairs. In all cases, in the event that the request is approved, the appropriate authorities of the Canadian Government will take the necessary steps to have the land placed at the disposal of the United States authorities. In cases in which the land needed is Crown land in the right of a province, or private property, the Canadian Government will take immediate steps to secure title to or a lease of the land and will then make it available to the United States authorities in precisely the same way as in the case of land originally held by the Canadian Government. It is also understood that this procedure will apply in all cases where land is required but that it will not be applicable in cases where all that is needed is existing office space or housing, or leases of parts of existing buildings or of entire existing buildings.

This procedure and the other arrangements made hereunder are not intended to interfere with, or limit in any way, the procedure adopted for the handling of recommendations made by the Permanent Joint Board on Defence.

2. The conclusion was reached that the assignment of existing leaseholds in Canada, held for war purposes, should be carried out in accordance with the following procedures and understandings:

(a)
The transactions should extend to leaseholds in all parts of Canada. In Northwest Canada the transactions should be dealt with through the office of the Special Commissioner for Defence Projects in Northwest Canada, Edmonton, Alberta. In the case of lands in other parts of Canada, the transactions should be dealt with by direct communication through the United States Military Attaché at Ottawa and the Department of Transport.
(b)
The assignments should be made in accordance with the attached form,3 which has been approved by the Canadian Government, [Page 212] subject to any modifications which may be approved either by the United States Army representative and the Special Commissioner, or by the United States Military Attaché and the Department of Transport, as the case may be.
(c)
All of the transactions hereunder are to be subject to the following provisions and conditions:
(i)
That the United States may retain occupancy of the demised premises without charge therefor for so long as may be desired but in no event beyond the duration of the war and six (6) months thereafter.
(ii)
That the Canadian Government will reimburse the United States Government for any and all rentals paid under the terms of the leases covering occupancy from and after the 7th day of September, 1943, and will assume the obligation for the payment of all rentals due or to become due from the effective date of the assignment, together with any and all other obligations of the United States Government under the leases, express or implied, including obligations to restore, if any. As to those leases entered into by the United States Government, or assigned to the Government by its cost-plus fixed fee contractors subsequent to the 7th day of September, 1943, the Canadian Government will reimburse the United States Government from the date of acquisition or from the date of assignment, as the case may be.
(iii)
That title to any and all improvements erected on the demised premises by the United States Government will be retained by the Government until such improvements have been appraised and disposed of in accordance with the provisions of the 33rd Recommendation of the Permanent Joint Board on Defence, United States-Canada or such other agreement between the two countries as may supplement or supersede this Recommendation.
(d)
It is understood that the procedure, as set out herein, relating to assignment of leases, will apply in all cases where land has been leased by the United States Government, but that leases, held by the United States Government, of office space or housing, or of parts of existing buildings or of entire existing buildings, will not be subject to these procedures and understandings.

  1. Copy transmitted to the Department by the Ambassador in Canada in his letter, December 30, 1944, not printed.
  2. Deputy Under Secretary of State for External Affairs.
  3. Not printed.