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Agreement to amend the Financial Agreement between the Government of Canada and the Government of the United Kingdom [1957] CATSer 7 (29 April 1957)

E103472 - CTS 1957 No. 2

AGREEMENT TO AMEND THE FINANCIAL AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED KINGDOM

The Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland, desiring to amend the Financial Agree­ment signed at Ottawa, March 6, 1946, agree as follows:

ARTICLE I

Article 4 of the said Agreement and the heading thereto are revoked and the following substituted therefor:

"Deferment of Annual Instalments

(i) In any calendar year after December 31, 1956, in which the Govern­ment of the United Kingdom advises the Government of Canada that it finds that a deferment is necessary in view of the present and prospective conditions of international exchange and the level of its gold and foreign exchange reserves, the Government of the United Kingdom may defer the payment of the annual instalment for that year of principal and interest required to be made under Article 3 if the Government of the United Kingdom defers the payment required to be made in the same calendar year under the Financial Agreement between the Government of the United States of America and the Government of the United Kingdom signed at Washington, December 6, 1945. No more than seven such annual instal­ments may be so deferred. The first of any such deferred instalments shall be paid on December 31, 2001, and the others shall be paid annually thereafter, in order.

(ii) In addition to the foregoing, the instalment of interest, in respect of the year 1956, is hereby deferred in lieu of any right of waiver hitherto existing. This instalment of interest shall be paid on December 31 of the year immediately following the year in which the last of all other instalments, including instalments deferred under the prece­ding paragraph, is due.

(iii) Deferred instalments shall bear interest at the rate of two per cent per annum payable annually on December 31 of each year following that in which deferment occurs.

(iv) Payment of deferred instalments may be accelerated, in whole or in part, at the option of the Government of the United Kingdom".

ARTICLE II

This Agreement shall become effective at such time as shall be agreed upon by the two Governments.

IN WITNESS WHEREOF the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

Signed in duplicate at Ottawa this 6th day of March, 1957.

W. E. Harris

FOR THE GOVERNMENT OF CANADA

J. J. Saville Garner

FOR THE GOVERNMENT OF THE UNITED KINGDOM

SUPPLEMENTARY EXCHANGE OF NOTES

I

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

OTTAWA, April 29, 1957

His Excellency Sir Saville Garner, K.C.M.G.,
High Commissioner for the United Kingdom,
Earnscliffe,
Ottawa 2, Canada

Dear Sir Saville:

I have the honour to refer to Article II of the Financial Agreement signed at Ottawa on March 6, 1957, to amend the Financial Agreement between the Government of Canada and the Government of the United Kingdom (March 6, 1946). This Article provides that the Agreement shall become effective at such time as shall be agreed upon by the two Governments. Accordingly, on behalf of the Government of Canada, I propose that the amending Agree­ment come into force on April 29, 1957. If this is acceptable to the Government of the United Kingdom, I further propose that this letter and your reply to that effect shall constitute the agreement between our two Governments provided for in Article II of the amending Agreement.

Yours very truly,

W. E. Harris

II

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

EARNSCLIFFE, OTTAWA, 29th April, 1957

915/625

The Hon. W. E. Harris,
Department of Finance,
Ottawa, Ontario

Dear Mr. Harris,

I have the honour to acknowledge receipt of your letter dated 29th April, 1957, referring to Article II of the Financial Agreement signed at Ottawa on 6th March, 1957, to amend the Financial Agreement between the Government of Canada and the Government of the United Kingdom (March 6, 1946).

On behalf of the Government of the United Kingdom I accept the proposal in your letter that the amending Agreement should come into force on April 29, 1957. I am also happy to accept your proposal that your letter and this reply shall constitute the Agreement between our two Governments provided for in Article II of the amending Agreement.

Yours sincerely,

J. J. S. Garner