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Exchange of Notes between Canada and the United States of America giving Formal Effect to the Statement of Principles for Economic Co-operation [1950] CATSer 9 (26 October 1950)

E103750 - CTS 1950 No. 15

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA GIVING FORMAL EFFECT TO THE STATEMENT OF PRINCIPLES FOR ECONOMIC COOPERATION

I

The Secretary of State of the United States of America to the Canadian Ambassador in the United States of America

DEPARTMENT OF STATE

WASHINGTON, October 26, 1950

Excellency:

I have the honor to refer to recent discussions between representatives of our two Governments for the general purpose of reaching an agreement to the end that the economic efforts of the two countries be co-ordinated for the common defense and that the production and resources of both countries be used for the best combined results. Their deliberations were based on concepts of economic cooperation which were inherent in the Hyde Park Agreement of 1941 and which are still valid today. They formulated and agreed to the "Statement of Principles for Economic Cooperation" annexed hereto, which is intended to guide, in the light of these basic concepts, the activities of our respective Governments.

If this attached statement is agreeable to your Government, this note and your reply to that effect will constitute an agreement between our two Govern­ments on this subject.

Accept, Excellency, the renewed assurances of my highest consideration.

Dean Acheson

STATEMENT OF PRINCIPLES FOR ECONOMIC COOPERATION

The United States and Canada have achieved a high degree of cooperation in the field of industrial mobilization during and since World War II through the operation of the principles embodied in the Hyde Park Agreement of 1941, through the extension of its concepts in the post-war period and more recently through the work of the Joint Industrial Mobilization Planning Committee. In the interests of mutual security and to assist both governments to discharge their obligations under the United Nations Charter and the North Atlantic Treaty, it is believed that this field of common action should be further extended. It is agreed, therefore, that our two governments shall cooperate in all respects practicable, and to the extent of their respective executive powers, to the end that the economic efforts of the two countries be coordinated for the common defense and that the production and resources of both countries be used for the best combined results.

The following principles are established for the purpose of facilitating these objectives:

1. In order to achieve an optimum production of goods essential for the common defense, the two countries shall develop a coordinated program of requirements, production and procurement.

2. To this end, the two countries shall, as it becomes necessary, institute coordinated controls over the distribution of scarce raw materials and supplies.

3. Such United States and Canadian emergency controls shall be mutually consistent in their objectives, and shall be so designed and administered as to achieve comparable effects in each country. To the extent possible, there shall be consultation to this end prior to the institution of any system of controls in either country which affects the other.

4. In order to facilitate essential production, the technical knowledge and productive skills involved in such production within both countries shall, where feasible, be freely exchanged.

5. Barriers which impede the flow between Canada and the United States of goods essential for the common defense effort should be removed as far as possible.

6. The two governments, through their appropriate agencies, will consult concerning any financial or foreign exchange problems which may arise as a result of the implementation of this agreement.

II

The Canadian Ambassador in the United States of America to the Secretary of State of the United States of America

CANADIAN EMBASSY

WASHINGTON, October 26, 1950

No. 619

Sir:

I have your note of today with regard to the recent discussions between representatives of our two Governments for the purpose of reaching an agree­ment to the end that the economic efforts of the two countries be coordinated for the common defence and that the production and resources of both countries be used for the best combined results. I am glad to confirm that the "Statement of Principles for Economic Cooperation", which was annexed to your note, is acceptable to my Government. Your note and this reply will, therefore, constitute an agreement between our two Governments on this subject.

Accept, Sir, the renewed assurances of my highest consideration.

H. H. Wrong