the war, it being understood that the United States will 5. If the Government of Canada agrees to the foregoing proposal for this project, it is suggested that any supplementary details involved in its execution be arranged directly between the appropriate governmental agencies subject, when desirable, to confirmation by subsequent exchange of notes. Accept, Sir, the renewed assurances of my highest consideration. The Right Honorable The SECRETARY OF STATE FOR EXTERNAL AFFAIRS, Ottawa. Ropatriation. The Canadian Secretary of State for External Affairs to the I have the honour to acknowledge the receipt of your Note of June 27, 1942, No. 710, which made certain proposals in regard to the steps to be taken for the purpose of extending the fuel supply for the United States Army in Canada and Alaska. The proposals made in your Note under reference have been examined by the appropriate authorities of the Canadian Government and it gives me pleasure to inform you that those proposals are accepted. So far as Canada is concerned the agreement which is effected by this exchange of notes will be considered to have come into effect on this date. Accept, Sir, the renewed assurances of my highest consideration. The UNITED STATES MINISTER TO CANADA, Ottawa. [E. A. S. 387] August 14, 15, 1942 Agreement between the United States of America and Canada respecting the Canol Project pipeline. Effected by exchange of notes signed at Ottawa August 14 and 15, 1942. The American Minister to the Canadian Secretary of State for No. 738 LEGATION OF THE UNITED STATES OF AMERICA Ottawa, Canada, August 14, 1942. I have the honor to refer to my conversation with Mr. Keenleyside on June 26 last, in which on behalf of the Government of the United States I requested the approval of the Canadian Government for the establishment of an oil supply line which would be supplementary to that known as the Canol project which was dealt with in my note of Ante, pp. 1413, 1415. June 27 and your reply of June 29, 1942. As I pointed out, this supplementary project would involve the transportation in tank cars of gasoline destined for the use of the United States Army in Alaska to Prince Rupert, where authority was requested for the American Government to build by contract suitable storage and loading facilities, and thence by barge to Skagway, Alaska. From Skagway to Whitehorse a four-inch pipeline would be laid under contracts let by the American Government, and the authority of the Canadian Government was requested to lay that section of the pipeline within Canadian territory. At Whitehorse the gasoline would be stored in the facilities being built under the Canol project. The Canadian Government was good enough to inform me orally on June 27 that it approved the establishment of the new supply line as outlined in the preceding paragraph. My Government has instructed me to propose to the Canadian Government that the terms of the agreement reached in the exchange Ante, pp. 1413, 1415. of notes of June 27-June 29, 1942, on the Canol project shall apply also, mutatis mutandis, to the supplementary project outlined above in respect of any construction within Canadian territory except as hereafter set forth. My Government proposes that the pipeline from Skagway to Whitehorse and the storage and loading facilities at Prince Rupert shall remain its property and shall be operated under contracts with it or by its agents or representatives during the war. It further proposes that at the termination of the hostilities the two governments agree that at the request of either government discussions between them shall be undertaken with a view to reaching an agreement in regard to the disposition of this pipeline and of the storage and loading facilities at Prince Rupert. Additionally, it is proposed that both governments agree that they will not themselves order or allow the dismantlement of this pipeline or of the facilities mentioned, nor will they allow their dismantlement by any company which may purchase them unless and until approval for dismantlement is recommended by the Permanent Joint Board on Defence. Accept, Sir, the renewed assurances of my highest consideration. PIERREPONT MOFFAT. The Right Honorable The SECRETARY OF STATE FOR EXTERNAL AFFAIRS, Ottawa. The Canadian Secretary of State for External Affairs to the I have the honour to acknowledge receipt of your note of August 14, 1942, No. 738, in which you present certain proposals for the establishment of an oil supply line for the use of the United States Army in Alaska. It is understood that the proposed supply line will be supplementary to the scheme known as the Canol Project which was the subject of an exchange of notes dated June 27, 1942 and June 29, 1942. After careful consideration the Canadian Government agrees to the proposals outlined in your note under reference subject to the conditions therein set forth. Accept, Sir, the renewed assurances of my highest consideration. N. A ROBERTSON for Secretary of State for External Affairs. The UNITED STATES MINISTER TO CANADA, Ottawa. December 28, 1942 [E. A. S. 388] and January 13, 1943 Agreement between the United States of America and Canada respecting the Canol Project exploratory wells. Effected by exchange of notes signed at Ottawa December 28, 1942 and January 13, 1943. The American Minister to the Canadian Secretary of State for No. 818 LEGATION OF THE UNITED STATES OF AMERICA Ottawa, Canada, December 28, 1942. I have the honor to refer to our exchange of notes of June 27 and Ante, pp. 1413, 1415. June 29, 1942, regarding the desire of the United States Government to take steps for extending the fuel supply for the U. S. Army in Canada and Alaska. At that time the United States Government proposed, and the Canadian Government approved, the so-called Canol Project which included, inter alia, the drilling of wells in the vicinity of Norman Wells, and the laying of a pipeline from Norman Wells to Whitehorse, capable of delivering 3,000 barrels of oil daily. The developments of our joint war effort have in the opinion of my Government made it vitally necessary to discover additional sources of petroleum in northwestern Canada and Alaska, capable of producing from 15,000 to 20,000 barrels per day, to supplement the supply which will be obtained from Norman Wells. This will require the drilling of exploratory, or in oil parlance "wildcat" wells in this northern region. As such operations should be conducted in a number of widely separated locations in the Northwest Territories, where oil is believed to exist, it is suggested that the area in Canada within which such operations are authorized be bounded on the north by the Arctic Ocean, on the east by the 112th meridian, on the south by the 60th parallel, on the west by the Continental Divide and the AlaskaCanadian Border. The operations under immediate contemplation, - as a result of which, however, it may prove desirable to enlarge or expand the Canol Project - are for the sole purpose of discovering oil fields capable of producing the required 20,000 barrels per day. No plans have as yet been worked out covering the refineries, storage or distribution systems beyond those already authorized and approved by the Canadian Government. In view of all the circumstances involved, and the increasingly urgent need of additional fuel for military purposes in the far north, the Government of the United States of America hopes that the Canadian Government will approve these exploratory operations with the understanding that the United States Army authorities be allowed during the war to drill through contract with one or more companies either Canadian or American, to develop through contract with one or more Canadian companies, and to make use of any petroleum sources that may be discovered, subject to Canadian regulations governing such operations and to the further understanding that operations would be subject to the provisions of our exchange of notes of June 27 and June 29 above referred to, insofar as such provisions are not inconsistent with the provisions of this note and are capable, with necessary adaptations and modifications, of being applied to such operations. My Government will of course keep the Canadian Government fully informed of any future plans for carrying out these operations. Accept, Sir, the renewed assurances of my highest consideration. The Right Honorable The SECRETARY OF STATE FOR EXTERNAL AFFAIRS, For the Minister: Second Secretary of Legation. No. 2 SIR, Ottawa. The Canadian Secretary of State for External Affairs to the American Minister DEPARTMENT OF CANADA OTTAWA, January 13, 1943. I have the honour to inform you that the Canadian Government accepts the proposals set forth in your note of December 28, 1942, No. 818, concerning the drilling of exploratory oil wells in the Northwest Territories. Accept, Sir, the renewed assurances of my highest consideration. NA ROBERTSON for Secretary of State for External Affairs. The UNITED STATES MINISTER TO CANADA, The Legation of the United States of America, OTTAWA, Canada. |