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Exchange of Notes (May 3 and 8, 1991) between the Government of Canada and the Government of the United States of America constituting an Agreement amending the Agreement of June 3, 1976 relating to the Construction, Operation and Maintenance of a Loran-C Station in the Vicinity of Williams Lake, B.C. [1991] CATSer 14 (8 May 1991)

E101744 - CTS 1991 No. 12

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT AMENDING THE AGREEMENT OF JUNE 3, 1976 RELATING TO THE CONSTRUCTION, OPERATION AND MAINTENANCE OF A LORAN-C STATION IN THE VICINITY OF WILLIAMS LAKE, B.C.

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The Secretary of State of the United States of America to the Ambassador of Canada

DEPARTMENT OF STATE

WASHINGTON, May 3, 1991

His Excellency Derek H. Burney,
Ambassador of Canada

Excellency:

I have the honor to refer to the agreement between the Government of the United States of America and the Government of Canada relating to the construction, operation and maintenance of a Loran-C station in the vicinity of Williams Lake, British Columbia, with an annex, which was effected by exchange of notes at Ottawa May 28 and June 3, 1976 (the 1976 agreement) and further refers to discussions held June 28 & 29, 1989 by representatives of the United States Coast Guard and the Canadian Coast Guard.

I have the honor to propose that the 1976 agreement be amended to include an additional annex, along the lines of that which is enclosed with this note, concerning cost-sharing arrangements for the dual rating of the Loran-C station. All other terms and conditions of the 1976 agreement shall remain the same.

I have the further honor to propose that, if this is acceptable to the Government of Canada, this note, with its enclosure, and the Embassy's note in reply shall constitute an agreement between the two Governments which shall enter into force on the date of the Embassy's note in reply.

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

For the Secretary of State:

Robert H. Pines

Enclosure: Annex No. 2 to the 1976 Agreement and Annex

ANNEX No. 2 To the Agreement of May 28 and June 3, 1976 between the Government of the United States of America and the Government of Canada Relating to the Establishment, Operation and Maintenance of a Loran-C Station at Williams Lake, British Columbia, Concerning Cost-Sharing Arrangements for the Dual Rating of that Facility

1. Property Matters and Financial Commitments

Title to all equipment and materials provided as a capital item by the United States Government shall remain with the United States Coast Guard (USCG). Those financial commitments undertaken by the United States in this agreement, not already having been appropriated funds by the U.S. Congress, remain subject to the availability of appropriations. All items referred to herein refer to the items set out in Table 1, attached. All costs in this document, as well as Table 1, are expressed in Canadian dollars.

2. Computer Floor - $97,000.00 for Installation and Materials

(a) The USCG shall supply to the Canadian Coast Guard (CCG), at no cost to the CCG:

(i) all necessary materials for the computer floor or in the event such materials cannot be supplied by the USCG in time to meet agreed installation target dates USCG shall reimburse the CCG the cost of purchasing or providing such materials itself; and

(ii) all specifications required to install a new computer floor in the operations room at Williams Lake.

(b) The CCG, at its expense, will plan and perform all necessary installation work.

3. Item 2 - Prime Power - Ugrade Transformer/Power Lines ($80,000); Building Wiring ($20,000) and) Item 8 - Air Conditioning Upgrade ($75,000)

The USCG shall pay all costs associated with the upgrading of the prime electrical power facilities and air conditioning facilities up to a maximum of $175,000, subject to the following specific conditions:

(a) The CCG shall award an engineering study contract to assess the technical design and cost aspects of items 2 and 8. When completed, a copy of the study report shall be given to the USCG for review.

(b) The USCG shall pay only those costs that result directly from the dual-rating requirement. The USCG shall review the engineering study to that end.

4. Item 9 - Public Works Canada and Consultant Fees ($16,000)

The CCG shall pay the cost of this item.

5. Item 10

The USCG shall pay for any consultant it engages to conduct an analysis on power and air conditioning.

6. Incremental Annual Operations and Maintenance Costs ($179,000)

(a) The USCG and CCG shall jointly establish a cost base for the incremental Operations and Maintenance costs respecting 3, 4, 6, and 7 set out in Table 1.

(b) Subject to paragraph (c), the cost base for the period April 1, 1990 to March 31, 1992 is $179,000.

(c) For the period April 1, 1991 to March 31, 1992, the cost base shall be increased in accordance with prevailing inflation factors, as determined by Statistics Canada for the period.

(d) On or before January 31, 1992, the USCG and the CCG shall set a cost base applicable for a further period of two years commencing April 1, 1992 and thereafter for such further periods of two years as may be agreed between the two cooperating agencies provided that such cost bases shall, during the second year of any such period, be increased in accordance with the relevant inflation factors for the period as determined by Statistics Canada.

(e) Incremental Operations and Maintenance costs shall be shared equally between the USCG and the CCG.

(f) The USCG shall pay its share of the incremental Operations and Maintenance costs to the CCG annually as soon as practicable following receipt of funds by the U.S. Coast Guard from the Federal Aviation Administration for operating Loran-C stations to meet civil aviation requirements.

(g) The USCG shall provide and install a communications multiplexer that will eliminate the need for one existing circuit within Canada.

(h) CCG shall assume the functions of Coordinator of Chain Operations (COCO) for the Canadian West Coast Chain. USCG shall provide all training and equipment to the CCG in order to enable it to perform the COCO function under the current USCG/CCG agreement.

TABLE 1

APPROXIMATE INCREMENTAL COSTS, IN CANADIAN DOLLARS, TO DUAL-RATE LORAN-C STATION WILLIAMS LAKE

^# Items 2 and 8 are worst case estimates and will be refined following completion of consultant study (9) and review of the study by the USCG.

* It was noted that the above table does not include USCG costs already expended or to be expended for the power and air conditioning upgrade review.

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The Chargé d'affaires of Canada to the United States of America to the Secretary of State

WASHINGTON, May 8, 1991

Note No. 052

The Honourable James A. Baker, III
Secretary of State
Washington, D.C.

Mr. Secretary,

I have the honour to refer to the agreement between the Government of Canada and the Government of the United States of America relating to the construction, the operation and maintenance of a Loran-C Station in the vicinity of Williams Lake, British Columbia, with an annex, which was effected by exchange of notes at Ottawa on May 28th and June 3rd, 1976 (the 1976 agreement) and further refer to your Note dated May 3, 1991, which reads as follows:

(See American Note of May 3, 1991)

I have the honour to confirm that the Government of Canada accepts your proposal. Accordingly your Note and the annex thereto together with this reply, which is authentic in English and French, shall constitute an agreement between our two governments to amend the 1976 agreement, with effect from this date.

Accept, Mr. Secretary, the renewed assurances of my distinguished consideration.

Marc A. Brault

Chargé d'affaires a.i.