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Exchange of Notes between Canada and the United States of America concerning the Payment for Expenditures on Construction of Remedial Works at Niagara Falls [1954] CATSer 5 (13 September 1954)

E100463 - CTS 1954 No. 7

EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES OF AMERICA CONCERNING THE PAYMENT FOR EXPENDITURES ON CONSTRUCTION OF REMEDIAL WORKS AT NIAGARA FALLS

I

The Secretary of State for External Affairs to the Chargé d'Affaires ad interim of the United States of America

DEPARTMENT OF EXTERNAL AFFAIRS

OTTAWA, September 13, 1954

No. X - 233

Mr. Don C. Bliss, Esq.,
Chargé d'Affaires a.i.,
Embassy of the United States of America,
Ottawa

Sir:

I have the honour to refer to recent conversations between representatives of our two Governments with respect to the construction of remedial works at Niagara Falls. As Article II of the Convention between the United States and Canada signed on February 27, 1950, concerning uses of the waters of the Niagara River provides that "the total cost of the works shall be divided equally between the United States of America and Canada", the Government of Canada and the Government of the United States consider it desirable that 50 per cent of the cost of the remedial works at Niagara Falls completed by or on behalf of the other Government shall be paid by or on behalf of such other Government as work progresses.

I have the honour to propose, therefore, that our two Governments agree as follows:

(a) The Government of Canada and the Government of the United States shall each bear 50 per cent of the cost of the remedial works at Niagara Falls done by or on behalf of the other Government as work progresses. Monthly statements of expenditures and payments to cover them in the funds of the country performing the work shall be exchanged between the agents of the two countries as indicated below. Adjustments will be made from time to time as required.

(b) In order to facilitate administration, payments by the United States Government shall be made directly to The Hydro-Electric Power Commission of Ontario, through the office of the Project Manager, Sir Adam Beck-Niagara Generating Station No. 2, Niagara Falls, Ontario, acting on behalf of the Government of the Province of Ontario, which, under an Agreement dated March 27, 1950 ⁽¹⁾ made between the Government of Canada and the Government of Ontario, has assumed the obligations of the Government of Canada in respect of the Canadian share of the cost of the remedial works to be constructed pursuant to Article II of the Niagara Treaty. Payments to the United States Government by The Hydro-Electric Power Commission of Ontario shall be made to "The Treasurer of the United States" and be forwarded to the District Engineer, Buffalo, New York, District of the Corps of Engineers. In order to comply with the Provisions of Article II of the Niagara Treaty, the receipts to be given for each payment made by The Hydro-Electric Power Commission of Ontario to the United States Corps of Engineers, and vice versa, shall constitute a full and sufficient discharge of the financial obligations of the two Governments under the Treaty in respect of each such payment. In addition a final discharge of financial obligations shall be made between the Government of Canada and the Government of the United States when payments for all costs of the remedial works have been completed.

(c) Data in support of claims for reimbursements incurred for the period covered shall be made available by the Government of the United States through the District Office of the United States Corps of Engineers in Buffalo, New York, and by the Government of Canada through the Hydro-Electric Power Commission of Ontario, Office of the Project Manager, Sir Adam Beck-Niagara Generating Station No. 2, Niagara Falls, Ontario.

(d) This arrangement shall remain in force until all payments have been completed and the final discharge of financial obligations referred to above has been made by an exchange of notes. It is understood that the arrangements herein set forth for the procedure respecting payment of amounts due Canada are subject to the approbation by the Congress of the funds required to pay such disbursements.

If the Government of the United States is agreeable to the foregoing proposals, I suggest that the present Note and your reply to that effect should constitute an agreement between our two Governments which shall take effect this day.

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

L. B. Pearson

Secretary of State for External Affairs

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The Chargé d'Affaires ad interim of the United States of America to the Secretary of State for External Affairs

THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA

UNITED STATES EMBASSY

OTTAWA, September 13, 1954

No. 48

The Honorable Lester B. Pearson,
Secretary of State for External Affairs,
Ottawa

Sir:

I have the honor to acknowledge receipt of your note No. X-233 of September 13, 1954, in which you make proposals concerning the procedure to be followed in the payment of expenditures incurred by or on behalf of the respective Governments for work performed at Niagara Falls pursuant to Article II of the convention between the United States and Canada signed on February 27, 1950 concerning the uses of the waters of the Niagara River.

I have the honor to state that the Government of the United States concurs in these proposals and agrees that your note and the present reply shall constitute an agreement between our Governments establishing procedures to be followed with respect to disbursement of funds in payment for expenditures on construction of remedial works at Niagara Falls.

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

Don C. Bliss