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Exchange of Letters between the Government of Canada and the European Space Agency constituting an Amendment to Article IV, Paragraph 1 of the Agreement between the Government of Canada and the European Space Agency concerning Cooperation of January 9, 1984 [1987] CATSer 12 (15 April 1987)

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EXCHANGE OF LETTERS BETWEEN THE GOVERNMENT OF CANADA AND THE EUROPEAN SPACE AGENCY CONSTITUTING AN AMENDMENT TO ARTICLE IV, PARAGRAPH 1 OF THE AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE EUROPEAN SPACE AGENCY CONCERNING COOPERATION OF JANUARY 9, 1984

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The Director General of the European Space Agency to the Minister of State for Science and Technology of Canada

EUROPEAN SPACE AGENCY

PARIS, December 17, 1986

The Honourable Frank Oberle
Minister of State for Science and Technology

Dear Minister,

I have the honour to refer to the Agreement on cooperation between Canada and the European Space Agency, signed on 9 January 1984 and accompanied by an exchange of letters, and specifically to Article IV.1 thereof, which stipulates that Canada shall contribute to certain outputs of the Agency's General Budget at a rate of 3% for the first three years of the period covered by the Agreement and that the percentage in question shall be reviewed for the last two years. The exchange of letters accompanying the Agreement states that the review will have as an objective a progressive approach towards a rate based on a GNP contribution, taking into account the eventual decision on Canada's future status in the Agency.

I have noted with pleasure Canada's wish, as stated in its long-term space plan, to strengthen its relations with the European Space Agency. The meeting held at the beginning of September 1986 provided the opportunity for a detailed and fruitful exchange of views and for taking stock of the interest of both parties in continued cooperation.

On this basis I propose that Canada contribute to the outputs of the General Budget identified in the current Cooperation Agreement

at a rate of 3.24% for 1987 and
at a rate of 3.58% for 1988.

This increase indicates the progression to be continued in the subsequent Cooperation Agreement in order to raise Canada's contribution to General Budget outputs to a rate representing half of its gross national product.

I propose that the present letter and your affirmative reply constitute formal amendment of Article IV.l of the Cooperation Agreement of 9 January 1984.

Please accept, Minister, the assurance of my highest consideration.

Reimar Lüst

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The Minister of State for Science and Technology to the Director General for the European Space Agency

MINISTER OF STATE FOR SCIENCE AND TECHNOLOGY

OTTAWA, April 15, 1987

Professor Reimar Lust
Director General
European Space Agency

Dear Professor Lust:

This is to acknowledge your letter dated 17 December 1986 in which you refer to the review of Canada’s contribution to certain outputs of the Agency’s General Budget, pursuant to Article IV.1 of the Cooperation Agreement between Canada and the European Space Agency Signed on 9 January 1984. I regret the delay in this reply, but our internal procedures on matters relating to the Cooperation Agreement are extremely complex.

As you note, the Exchange of Letters accompanying the Agreement states that the review would have as an objective a progressive approach towards a rate based on a GNP contribution, taking into account the eventual decision on Canada’s future status in the Agency. The Exchange of Letters also states that review of this rate would take account of the evolution of Canada’s participation in the activities and programmes of the Agency.

I agree with you that the review meeting held at the beginning of September 1986 provided the opportunity for a fruitful exchange of views. With reference to the stated objectives of the review, both sides recognized that the ratio of Canada’s overall participation in optional programmes to the overall volume of the Agency’s budget is declining and that a progressive increase in Canada’s rate of contribution to the General Budget under a subsequent Cooperation Agreement would be justified should this decline be reversed. Both sides also recognized the problem of Canada’s low industrial return, particularly with regard to the General Budget. Your officials agreed that positive steps would be taken to remedy this situation.

On this basis, and as a demonstration of the importance that the Government of Canada attaches to continued cooperation with Europe, I agree with your proposal that Canada contribute to the outputs of the General Budget identified in the current Cooperation Agreement

at a rate of 3.24% for 1987; and
at a rate of 3.58% for 1988.

I also accept your proposal that this letter and your letter of 17 December 1986 constitute a formal amendment of Article IV.1 of the Cooperation Agreement of 9 January 1984.

Yours Sincerely,

Frank Oberle