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Exchange of Notes between Canada and the United Kingdom concerning the Entry into Force of the Financial Agreement of March 6, 1946 between the two Countries [1946] CATSer 5 (16 July 1946)

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EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED KINGDOM CONCERNING THE ENTRY INTO FORCE OF THE FINANCIAL AGREEMENT OF MARCH 6, 1946 BETWEEN THE TWO COUNTRIES

I

The Canadian Minister of Finance to the United Kingdom Chancellor of the Exchequer

OTTAWA, 6th March, 1946

Dear Chancellor of the Exchequer,

On the occasion of the signature of the financial agreement between the Government of the United Kingdom and the Government of Canada, I should like to place on record our understanding regarding the entry into force and implementation of this agreement in relation to the action by the United States Congress on the financial agreement between the Government of the United Kingdom and the Government of the United States, signed at Washington on December 6, 1945.

The agreement between the United Kingdom and Canada has been drawn up in the expectation that the Anglo-American agreement will be approved by Congress and will enter into force some time during the current year. If, however, Congress does not approve the Anglo-American agreement, our understanding is that, in the terms of Article 8 of our agreement, a major change would have occurred in the international financial situation, which would materially alter prospective benefits and obligations flowing from our agreement, and that consequently it would be necessary forthwith to consider what changes in the provisions of our agreement the two Governments should agree to make, subject to such legislative approval as may be necessary. In these circumstances, it is also our understanding that Articles 5, 6, and 7 of our agreement will not be implemented until it is known whether the United States Congress approved the Anglo-American agreement. I agree, however, that these articles are to be implemented immediately if Congress approves the agreement.

I should appreciate it if you would confirm that the above understanding is in accordance with that of your Government,

Yours very truly,

J. L. Ilsley

II

The United Kingdom Chancellor of the Exchequer to the Canadian Minister of Finance

TREASURY

LONDON, 6th March, 1946

Dear Mr. Ilsley,

I have received your letter of 6th March on the relation between the implementation of our Agreement and the action of Congress on the Anglo-American Agreement.

I confirm that my understanding of the position is the same as yours.

Our Agreement is of the greatest value to the common interest of our two countries, and I take this opportunity of expressing to you my most sincere appreciation of the action of your Government.

Yours sincerely,

Hugh Dalton

III

The Canadian Minister of Finance to the High Commissioner of the United Kingdom

DEPARTMENT OF FINANCE

OTTAWA, May 30^th, 1946

Dear Sir:

Article 9 of the Financial Agreement between the Government Canada and the Government of the United Kingdom which was signed on March 6, 1946, provides that the Agreement is made subject to such legislative approval as may be necessary and shall enter into force in whole or in part at such time or times as shall be agreed upon by the two Governments.

The Agreement has been approved by the Parliament of Canada by an Act entitled the United Kingdom Financial Agreement Act, 1946, which was assented to on the 28th day of May last. A proclamation is being issued today bringing the Act, except Sections 4 and 5, into force on May 30^th, 1946.

It now remains for the two Governments to agree upon when the Agreement in whole or in part should come into force.

You will recall my letter of March 6, 1946 to the Chancellor of the Exchequer and his reply of the same date in which it was agreed that Articles 5, 6 and 7 of the Agreement would not be implemented until it was known whether the United States Congress approved the Anglo-American Agreement. By these letters it was also agreed that if Congress did not approve the Anglo-American Agreement a major change would have occurred in the international financial situation and that consequently it would be necessary to consider what changes in the provisions of our Agreement the two Governments should agree to make.

Subject to the understanding set out in my exchange of letters with the Chancellor of the Exchequer the Government of Canada agrees that the Agreement, except Articles 5, 6, and 7 should come into force on May 30^th, 1946. Will you please let me know if your Government also agrees.

For purposes of record I should be glad to have your assurance either that the Agreement has been approved by the Parliament of the United Kingdom or that no such legislative approval is necessary.

Yours very truly,

J. L. Ilsley

IV

The High Commissioner for the United Kingdom to the Canadian Minister of Finance

OFFICE OF THE HIGH COMMISSIONER FOR THE UNITED KINGDOM

OTTAWA, 30th May, 1946

Dear Sir,

I have to acknowledge the receipt of your letter of the 30th May regarding the entry into force of the Financial Agreement between the Government of Canada and the Government of the United Kingdom which was signed 6th March, 1946. On behalf of the Government of the United Kingdom I agree to your proposal that the Agreement should come into force on the 30th May, 1946, subject to the understanding set out in the exchange of letters between yourself and the Chancellor of the Exchequer to the effect that Articles 5, 6 and 7 of the Agreement shall not be implemented until it is known whether the United States Congress approve the Financial Agreement between the Government of the United States and the Government of the United Kingdom.

In reply to the last paragraph of your letter, I confirm that no legislative approval of the Agreement by the Parliament of the United Kingdom is necessary.

Yours very truly,

A. Clutterbuck

V

The Canadian Minister of Finance to the High Commissioner for the United Kingdom

DEPARTMENT OF FINANCE

OTTAWA, July 16^th, 1946

Dear Sir:

In my letter of May 30, 1946, I informed you that a proclamation was being issued bringing The United Kingdom Financial Agreement Act, 1946, into force on May 30, 1946, with the exception of Sections four and five.

In our exchange of letters of May 30, it was agreed on behalf of the Government of Canada and the Government of the United Kingdom that the Financial Agreement of March 6, 1946, would come into force with the exception of Articles five, six and seven.

You will recall that our understanding was that Articles five, six and seven of the Agreement would not come into force until it was known whether the United States Congress had approved the Anglo-American Agreement, signed in Washington on December 6, 1945. I am advised by the Canadian Ambassador in Washington that the Anglo-American Agreement has now been approved by the United States Congress and signed by the President on July 15, 1946.

Accordingly, a proclamation is being issued today bringing into force the remaining sections of The United Kingdom Financial Agreement Act, 1946, namely sections four and five.

The purpose of this letter is to inform you that the Government of Canada now agrees that Articles five, six and seven of the Agreement should come into force on July 16, 1946.

Would you please be good enough to let me know if your Government also agrees to the coming into force on July 16, 1946, of these Articles of the Agreement.

Yours very truly,

J. L. Ilsley

VI

The High Commissioner for the United Kingdom to the Canadian Minister of Finance

OFFICE OF THE HIGH COMMISSIONER FOR THE UNITED KINGDOM

OTTAWA, 16^th July, 1946

Dear Sir,

I have to acknowledge the receipt of your letter of the 16^th of July informing me that, following on the approval by the U.S. Congress of the Financial Agreement between the Government of the United States and the Government of the United Kingdom, a proclamation is being issued in Ottawa today bringing into force the remaining sections, namely sections four and five, of the United Kingdom Financial Agreement Act, 1946.

I note that the Government of Canada now agrees that Articles five, six and seven of the Financial Agreement between the Government of Canada and the Government of the United Kingdom which was signed on the 6^th of March 1946, should come into force on the 16th July, 1946. I agree on behalf of the Government of the United Kingdom that these Articles of the Agreement should come into force on the date specified in your letter, namely, the 16th July, 1946.

Yours very truly,

A. Clutterbuck