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Negotiations ~ Mace in THE OSHAWA DAILY TIMES, TUESDAY, APRIL 17, 19 Public on St. Lawrence Development; Canada and U.S. Se Main Proposals for Joint Control from Head of Lakes to Sea Agreeable to Dominion Government -- Canada to Build Canadian Sections -- Report of National Ad- visory Committee Also Published -- U. S. Suggests Appointing Commissioners The text of correspondence ex-| changed by the governments of Canada and the United States con- cerning the proposed St, Lawrence Waterway improvement. Note of January 81, 1028, from the Canadian Minister to the Secretary of State is as follows: "Sir: "I have the honour to refer to your note of April 13, 1927 in which, after reviewing the steps taken in recent years by the Unit. ed States and Canada to enquire into the feasibility of a St. Lawr- ence ocean shipway, you stated that the Government of. the United States had accepted the recom- mendations of the St, Lawrence River Commission, appointed by the President as an advisory body, and was accordingly prepared to enter into negotiations with Can- ada with a view to formulating a convention for the development of the waterway. "Acknowledgment of this com- munication was made in a note of July 12, 1927, addressed to the Minister of the United States at Ottawa, in which it was stated that, ns the report of the Joint Board of Engineers indicated differences of opinion as to the solution of the engineering difficulties presented by the international section of the waterway, the National Advisory Committee, appointed by His Maj- esty's Government in Canada to report on the economic and general aspects of the waterway question, would net he fn a position to ad- vise the Government until certain alternative schemes under consid- eration by the Joint Board, and to be included in the appendices to the main report, had heen receiv- ed and duly considered. Full Report Received "The full report of the Board has now been received, and the National Advisory Committee, which met in Ottawa this month, has reported its conclusions to His Majesty's Government in Canada, The National Advisory Committee concurs in the finding of the Joint Board of Engineers that the pro- ject is feasdible,. It recommends, however, that should the work be undertaken, fuller allowance ghould be made for future requirements by providing, in addition to 30-foot depth for the permanent structures, 27-foot navigation in the reaches rather than the 25-foot navigation proposed by the Joint Board, While the National Advisory Committee regards the project as feasible from an engineering standpoint, and notes the findings of the In- ferpational Joint Commission in 1921 as to its economic practica- Jility, it considers that the ques- tion of its advisability at the pres- ent time depends upon the success- ful solution of a number of finan- ciai and economic difficulties, and upon further consideration of ecer- tain of the engineering features as to which the two sections of the Joint Board of Engineers are not as yet agreed. I am instructed by the Secretary of State for External Affairs to inform you that His Majesty's Government in Canada concurs in these conelustons ~f the National Advisory Committee. "In your note of April 13, it was observed that the St, Lawrence River Commission had reported that the construction of a shipway at proper depth would relieve the interior of the continent, especially agriculture, from the economic handicaps of adverse transportation costs which, it was indicated, now operate to the disadvantage of many States and a large part of Canada, It was added that the Governmrent of the United States appreciated the advantages which would accrue equally to both coun- tries by opening up the waterway to ocean shipping, and that the necessary inerease in United States railway rates due to the war, and the desirability = of early develop ment of hydro-electric power, were factors which must have equal ap- plication to, and influence upon, the Dominion of Canada, "In view of the implications as to Canadian conditions contained in these observations, it may be well to indicate certain features of the transportation situation in Canada which have a direct bear- ing upon the St. Lawr:nce water- way question, "For many years past the im- provement of transportation has been the foremost task nf succes- sive governments of Canada. At heavy cost, an extensive program of railway, waterway and harbour development has heen carried out, with the object of linking up all parts of the Dominion aal provid- ing adequate outlets for foreign trade. Twa great transcon*inenta' railway syetems have been built up, largely with State aid, and hoth western and eastern Canada are now reasonably well served hy railways, though increasing settle- ment and increasing production render it necessary for both sys- tems to continue to spend large sums annually in the provision of branch lines. Western Canada is now looking to the early comple- tion of the Hudson Bay route to Europe, This route, which it is anticipated will be available in about three years, will shorten the haul to Europe from the Canadian West hy a thousand miles and more, and will also be of substan- tial benefit to shippers from the Western States. Since that work was projected, the completion of the Panama Canal, by the efforts of the United States, has supplied an alternative outlet for much of Neilson's Ice Cream CHOOSE YOUR FAVORITE BRICK Vanilla and Strawberry Layers Custard Ice Cream with Cherry Fruit Strawberry and Maple Layers Orange Sherbet Centre Neapolitan--Chocolate, Vanilla and Strawberry Layers Cherry and Pineapple Layers Pineapple in delicious Ice Cream Strawberry, Vanilla and Maple Layers with Cherries and Nuts Rich Vanilla Ice Cream Bulk Ice Cream, 30c pint, 60c quart, KARN'S DRUG STORE jdirect reference 0 Necessity western Canada through Vancouver and Prince Rupert; and at the present time the Canadian Gov- ernment is faced with a strong de- mand for an additional and more direct outlet to the Pacific for the Peace River country, The St, Lawrence route itself has been pro- gressively improved, and has prov- ed of steadily increasing service. Competitive Outlets "Partly as a result of the exist- ence of competitive alternative ouc- lets, railway rates in Canada are in general lower than in the Unit- ed States. The rates on grain, which provides fifty-two per cent of the total traffic of western lines, are now below pre-war level. Ma- terial reductions have alan been made in another bulk movement of importance to both eastern and western Canada, namely, coal. Gen- eral commodity rates, which were the subject of the same percentage of relative increase in both coun- tries, due to war conditions, have subsequently been reduced in Can- ada, in certain instances, to a greater extent than in the United States. In recent months a rate on grain has been established from the head of the Lakes ta Quebec which approximates the charges incident to the movement by water by the present Great Lakes-St. Lawrence route, a route which, in Canada, has always exercised a restraining influence on railway rates, As the greater part of Can- ada's railway mileage is now own- ed and operated by the State, the St, Lawrence proposals, in so far as they may possibly affect the revenues of the railways, present considerations as to which Can- ada's point of view is necessarily somewhat different from that of the United States, "Canada's interest in the Improv. ed navigation of the Great Lakes- St. Lawrence route wonld be as- sociated largely with the movement of bulk commodities, such as grain, timber and coal. The movement of package freight by water in Can- ada is at present of small volume, and Canadian railways, unlike, it is understood, those of the Midwest of the United States, are In a posi- tion to handle much more of tnat trafic than at present is offered. "It is helleved that development of the waterway would prove of advantage to Canadian commerce and industry, not merely in the sections directly tributary to the Great Lakes and St, Lawrence, hut in the Maritime sections, which would be afforded more direct ac- cess to the great interior markets of the continent, It is, however, ap- parent that the United Sates would benefit much more from the en- larged navigation facilities, both in extent of use and in margin of saving, The report of the Interna- tional Joint Commission in 1921, after a comprehensive review of the economic aspects of the project, presented the following conclu- sions, to which the National Ad- visory Committee calls attention: '""'As to the economic practica- bility of the waterway, the .com- mission finds that, without consid- ering the probability of new traffic created by the opening of a water route to the seahoard, there exists today, between the region econom- ically tributary to the Great Lakes and overseas points as well as be- tween the same region and the At- lantic and Pacific seaboards, a vol- ume of outhound and inbound {rade that might reasonably be expected to seek this route suffi- cient to justify the expense involy- {ed in its improvement. "It finds that, as between the 'merican and Canadian sides of the tributary area, the former con- tributes very much the larger share of this foreign and « t- wise trade, and in all probability will continue to do so for many years to come, The benefits to he derived from the openinz of tie water route to the sea will, there- fore, accrue in much larger meas ure to American than to Canadian interests, though it is reasonable to assume that eventually the ad- vantages may be more evenly dis- tributed.' Joint Commission The report of the International Joint Commission continues, in a to comparative transportation conditions: "'It finds that the existing means of transportation between the tributary area in the United States and the seaboard are alto- gether inadequate, that the rail- roads have not kept pace with the needs of the country, but that this does not apply to the Canadian side of the area, where railway de- velopment is still in advance of population and production.' " "It will therefore be observed that the transportation situation in the two countries is mot identica! as to available facilities, extent of use, or rates, and that the eco- nomic handicaps to which you re- ferred in your note of April 13th appear to have more application to United States than to Canadian conditions. In this connection, it may be said that Canadian agri- culture is more directly affected by the restrictions on the importation of Canadian farm products which have been imposed by the United States in recent years, with the object, it is understood, of assist- ing agriculture jin those Western the factors which have contribut- ed to bringing it about that public opinion in Canada has not so clear- ly erystallized in favour of the waterway project as appears to be the case in the United States. "Reference was made in your note to the early development of hydro-electric power as a factor which must have equal applica- tion to and influence upon the Dominion of Canada. The oppor- tunity of developing great quan- tities of power incidental to mavi- gation is, it is agreed, a special ad- vantage possessed by the St. Lawr- ence project, and an important consideration in determining its advisability. In this aspect of the project, however, there are again special features in the Canadian situation which it is desirable to make clear. Public opinion in Can- ada is opposed to the export of hydro-electric power, and is insist- ent that such power as may be rendered available on the St. Lawr- ence, whether from the wholly Canadian section, or from the Canadian hall of the international section, shall be utilized within the Dominion to stimulate Cana- dian industry and develop the na- tional resources. With this view the National Advisory Committee expresses itsell as in complete ac- cord. The Committee further in- dicates that, in view of the rela- tively limited capacity of the Cana- dian market to absorb the vast blocks of power contemplated by the St. Lawrence proposals, it fol- lows that it is most important, in any arrangement which may be considered, that the development of power on the Canadian side should not exceed the capacity of the Canadian market to absorb. it, Best Method "The situation presented by the differences of opinion hrought out in the report of the Joint Board of Engineers as to the hest method of development in the international section of the St. Lawrence has also received consideration by the Na- tional Advisory Committee, The Committee considers it greatly in the public interest that a further attempt should be made to recon- cile these varying views, Conclusive assurance is necessary as to control of the fluctuations of flow from Lake Ontario, so essential to the interests of the purely national sections of tho of Montreal, and as to the situa- tion of those Canadian communi- ties on the St. Lawrence, which un- der certain of the. present plans might be obliged to live under levees or to rehuild in part, A plan has been presented in appedices to the report of the Joint Board of Engineers proposing an alternative location of the upper works of the Canadian two-stage plan. It is al- so considered advisable that op- portunity should be afforded for further conference on these alter- native »roposals between the Cana- fan section of the Joint Board and engineers representing the Proy- ince of Ontario, who have them- selves formulated plans dealing with the international section. "The financial phases of the pro- ject have been reviewed hy the Committee, It is pointed out that for many years Canada has been engaged in improving the naviga- tion of the St. Lawrence River, both above and helow Montreal, and in providing navigation facili- ties across the Niagara peninsula At the same time, the United States has been similarly engaged in deepening inter-connecting chan- nels of the Upper Lakes, and in providing suitable works at Sault, Ste. Marie. Towards the common object, Canada has made particu- larly heavy contributions. It has expended over thirty millions on the ship channel which has made possible ocean navigation on a large scale to the port of Montreal, an expenditure by which the 'proposed St. Lawrence project will directly henefit. The Dominion has spent fifty millions on canals and chan- ne] improvements between Mont- real and Lake Erie, in which im- proved navigation United States shipping has had equal use and ad- vantage. To the present, Canada has spent eighty-seven millions on the Welland Ship Canal. In view lead Be careful! Don's let ic develop into a severe cold. Keep the nasal passage clean antiseptic and minimize the risk of colds by spraying 'DRTHOMAS ECLECTRIC OIL F £0 yaass 2 eacopnized household rem- dy for coughs. "co and bronchial afflic- le : not irritate the mucous membrane. Use with any good atomizer, morning ni . - Manufactuced by LYMAN Zo L & LIMITED, States which would share so large- ly in the benefits of the proposed St. Lawrence Waterway. This situa- tion, and the effects upon the! Maritime sections of Canada of United States duties om the pro- i : : sducts of the fisheries. are among river and the port of these facts and heavy financial burdens imposed the war, by the railway obligations arising out of the war, and by the necessity, since the war ended, of finding the large sums required for needed public works throughout the Dominion, it is considered that it would not be sound policy to as- sume heavy public obligations for the St. Lawrence project. "The National Advisory Commit- tee has reached the conclusion that it is possible to work out a method by which provision could be made for the comstruction of the water- way on terms which would be equitable to both countries and would take adequate account of the specia]l factors in the Canadian situation to which attention has been directed. Several methods have been considered, but the plan which chiefly commends itself to the Committee is, in brief, that Canada shagld consider providing for the construction of the water- woy in the sections wholly Cana- dian, that is, the Welland Ship Canal and the works in the St. Lawrence below the international boundary, and that the United States should consider undertaking the completion of a 27-foot water- way to the head of the Lakes, in addition to meeting the entire cost of the development, under joint technical supervision on lines to be agreed upon, of the international section of the St. Lawrence, hoth for navigation and for power. The construction of the wholly Cana- dian (Wellaad and St. Lawrence) sections, and, if the United States should see fit, of the upper lakes works, would, on this plan, be given precedence of the interna- tional section, because of the neces- sity alike of providing for further consideration of the engineering problems involved in the interna- tional section and of permitting reasonable absorption of the pow- er developed on the Canadian side. Committee Statement "In support of this view, the fol. lowing statement is submitted by the Sommittee, hased on expendi- tures hy both countries on the present through waterway, and on the estimated cost of the presently recommended scheme, with 27-foot navigation, a new United States lock at Sault Ste. Marie of the same dimensions as proposed for the St, Lawrence shipway, and the development, on the St. Lawrence, of such power as is incidental to navigation: Canada Present works: St. 'Lawrence ship channel $30,000,000 St. Lawrence and Wel- land Canals Lock at Sault Ste, Marie, Ontario 50,000,000 5,660,000 85,660,000 -------- Proposed works: Welland Ship CORAL inv cys aan $115,600,000 Wholly Canadian seetion St. Lawrence shipway, 27-fnot navigation and development of 949,800 hp. 199,670,000 $315,270.000 Total for Canada vm $400,830,000 United States Present works: Dredging St. Clair and Detroit rivers ____ Locks at Sault Ste. Marie, Michigan ..... $17,536,000 26,300,000 I ---- 43,836,000 Proposed works: International section St. Lawrence shipway 27- foot navigation and initial development of 597,600 h.p. ee... $182,157,000 To complete development additional power 1,- 602,000 h.p. ,..., Upper lakes channels to 27-foot 92,090,000 65,100,000 £30,347,000 States $383,183,000 Navigation and Power "In bringing these conclusions of the National Advisory Commit- | tee to the attention of the Governs ment of the United States, His Maj- 0's Government in Canada de- s'res to add that there are phases of the question, particularly as re- Total for United j| ards the development of power, as 0 which it is necessary to take ac- count of the special concern of the two provinces of Canada bordering on the waterway. The relation be- tween navigation and power in- volves certain constitutional difi- culties, of whieh, in accordance with the wishes of the Govern- ments of Ontario and Quebec, the Government of Canada proposes to seek a solution by reference to the courts. With this preliminary dit- ficulty in process of solution, the Government of Canada will be in a position, upon learning from the Government of the United States whether in its view the procedure above outlined affords an accept- able basis of negotiation, to con- sult with the Provinces of Ontario and Qoebec on the aspects of the problem with which they may be concerned, and thus to facilitate an understanding being reached be- tween all concerned as to the methods and means by which the project could be undertaken. "It is the hope of the Govern- ment of Canada that, in any such further consideration of the water- Way question, opportunity may be found for reaching a comprehensive settlement of all outstanding prob- lems affecting the Great Lakes and the St. Lawrence including the pre- servation of the waters properly belonging to the St. Lawrence watershed of which the present discussion indicates the para- mount importance. "I shall be obliged it you be good enough to lor Bg your convenience, for transmission to His Majesty's Government in Canada. of the views of the Gov- ernment of the United States on of the very |the representations which are out- by |lined above. yshould be so constructed 1 have the honour to be, with the highest consideration, Sir, Your most obedient, humble servant, VINCENT MASSEY" Note of March 12, 1928, from the Secretary of State to the Canadian Minister "Sir: "I have the homor to acknow- ledge your mote of January 31, 1928, in which you inform me of the findings and recommendations of the National Advisory Commit- tee in' regard to the proposed St.' Lawrence waterway improvement. "I note the view of the National Advisory Committee that the ques- tion of the advisability of the im- provement at the present time de- | pends upon the solution of a num- | ber of financial and economic dif- ficulties and upon further consid eration of certain of the engineer- ing features and the conclusion of the Committee that it is possible to work out a method by which provision could be made for the construction of the waterway on terms which would be equitable to both countries and would also take adequate account of the factors in the Canadian situation which you have set forth. Not in Complete Accord "The suggestions outlined In your note have received thorough consideration, While the United States is not in complete agree- ment with the representations | made by the Canadian Government as to the relative benefits and ultimate costs to the two countries of the proposed improvement of the St. Lawrence and the division of expense to be borne by each country, it is inclined to regard as an acceptable basis of negotiation a proposal along the general lines suggested in your note: that the | prosecution of the improvement of the St. Lawrence waterway be bas- ed on the undertaking by the United States of the deepening of the necessary channels through the interconnecting waters of the Great Lakes and the improvement of the international section of the St. Lawrence both for navigation and for power; and the unpdertak- ing by Canada of the construction wholly Canadian, that is, the Wel- land Canal and the works in the St. Lawrence below the interna- tional boundary. "Whether the United States ex- pends its share of the cost on the international section and Canada its share on the national sections would seem to be immaterial if, in the negotiations, there is a fuir division of expense for a through deep waterway to the Ocean. Of course, in such an arrangement, al] segtinns of the deep waterway as to make them most suitable for a through systemr of transportation, This is a detail to which I have no doubt your Government will en- tirely agree. The use of the water- way should be properly safeguard- of the waterway in the sections! Styled to the Dot Wi young men's suits in fine tweed, cassimeres, medium-weight worsteds, and twists, Come in and see them. 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