Exchange of Notes between Canada and the United States of America constituting an Agreement for the Final Settlement of Outstanding Accounts concerning the Wartime Procurement of Supplies and Services [1949] CATSer 2 (14 March 1949)

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E102682 - CTS 1949 No. 9

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT FOR THE FINAL SETTLEMENT OF OUTSTANDING ACCOUNTS CONCERNING THE WARTIME PROCUREMENT OF SUPPLIES AND SERVICES

The Secretary of State of the United States to the Canadian Ambassador at Washington

DEPARTMENT OF STATE

WASHINGTON, March 14, 1949

Excellency,

I have the honor to refer to discussions which representatives of my Government have concluded with representatives of your Government looking toward the final settlement of various outstanding accounts for the wartime procurement of supplies and services by and for our two Governments. The purpose of these discussions was to achieve a settlement of disputed and other unsettled claims remaining from the wartime supply and procurement programs of our two Governments and to obviate the necessity for long continued accounting over the details of the remaining claims. I am informed that agreement has now been reached respecting settlement for such claims and accounts, in accordance with the following terms:

1. The sums deposited by the Government of Canada with the United States Treasury Department to cover the cost of supplies and services furnished under lend-lease and related programs, including the "Canpay" program, have exceeded the cost of such supplies and services by the sum of $3,675,000. This amount has accordingly been refunded by the Government of the United States to the Government of Canada.

2. The claims and accounts described in paragraphs (a) and (b) below are deemed settled or are waived. Neither Government shall be obligated to make any payment or give any other consideration to the other Government in respect of such claims and accounts.

(a) Claims and accounts connected with or incidental to the conduct of World War II arising out of the furnishing or procurement of supplies and services by or for either Government after March 11, 1941 and prior to April 1, 1946.

(b) Claims and accounts arising at any time out of the United States Lend-Lease program or the program of War Supplies, Ltd., procurement agency of the Government of Canada.

This note, and your reply indicating the concurrence of your Government, will be regarded as the Agreement of our two Governments as set forth above, in force on and after the date of your reply note.

The Canadian Ambassador at Washington to the Secretary of State of the United States

I have the honor to acknowledge the receipt of your note of today's date concerning the settlement of claims and accounts between our two Governments arising out of wartime procurement of supplies and services.

In reply I have the honor to inform you that the Government of Canada concurs in this settlement as expressed in your note under reference, and in accordance with the suggestion contained therein your note and this reply will be regarded as the Agreement between our two Governments in this matter.

Canadian Treaty Series

Exchange of Notes between Canada and the United States of America constituting an Agreement for the Final Settlement of Outstanding Accounts concerning the Wartime Procurement of Supplies and Services [1949] CATSer 2 (14 March 1949)