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Negotiat fons of the St. Lawrence Development (Continued from page 6) tions made in your note of January thirty-first. 1 might say that, while it may not be very material to the main issue, the United States has the use of the Panama Canal which is of great benefit to it especially on the Pacific, Atlantic and Gulf coasts. It has also the use of the Gulf of Mexico which reaches a considerable way across the Con- tinent on the South and furnishes valuable water transportation for a large portion of the Southwest- ern part of the United States. Both of these waterways exercise a great influence on freight rates. The United States has other harbors on the Atlantic, such as New York served by both railways and the Erie Canal, Philadelphia, Baltimore and Norfolk, which involve a short- or railroad haul from the Great Lakes territory to the Ocean than is enjoyed by Canada. Neverthe- less, I feel that the construction of a deep waterway through the St, Lawrence to the Ocean will be of tremendous advantage to most if not all, of the territory in the northern part of the United States, as well as tn the corresponding territory in Canada. "Referring to your suggestions as to the order in which the dif- ferent works should he undertaken, it would seem to me that this mat- ter will also have to be the sub ject of negotiation because the works ought to proceed so that all parts of the navigation system would be completed substantially at the same time and the United States ought to have the advan- tage of its share of the power of the international section without waiting until Canada may he able to sell her power from these works, Secretary in Accord "Referring to the balance sheet, which undoubtedly was included in your note to illustrate the prin- eiples of the division of costs and the work to be done hy each coun- try, I am in general accord with those principles. The amounts and some of the items would have to be considered and discussed. in the negotiations, To illustrate: I am not inclined to the view that it is right to include in the balance sheet the costs of the St. Lawr- ence and old Welland Canals ex- cept so far as they may he of use to the deeper system. These works are understood to he for lighter eraft and of little value for the perposes of the works now propos- ed, These waterways are under- stood to have served their purpose In economic reterns, It would al- 0 seem to he necessary to differ- entiate between the costs that may properly be charegable to naviga- tion and thos ower in p Wl, Those who now or in the .uture profit by the power should hear their share of the expense. It is understood that the power devel- opment will carry itself. To illus- trate: under the suggestions you make, the United States will have po proprietary interest in the pow- gr on the national section, Tt would, therefore, seem that as this fevelopment Is for the benefit of Canada, your Government should be respomsible for that expense, and that such eapense should lake into account the costs to be borne by the respective interests whether the power is actually installed now or later, The amount, therefore, which power on the national sec- tion should contribute to the cost of the improvement should be left open for consideration and subject to determination in the mnegotia- tions. All power, of course, de- veloped for joint benefit in the in- ternational section should ultimate- ly be paid for as a part of the joint venture. The application of this prinicple would change the proposed balance sheet considerab- ly. Therefore, if, as you suggest as to this section, the United States is willing to build not only the waterway but the power, ft would seem that' the United States ought to be permitted to develop its power and use its half, the other half to be used by Canada or not as it should desire, "The United States is agreeable to the proposal that all navigation channels provided in improvements have a minimum depth of 27 feet, the permanent structures having a depth of 30 feet for future ex- pansion. The United States has at present under consideration the deepening of the lake channels to THERE Is nothing quite equal to Aspirin for all sorts of and pains, but be sure it is Aspirin, The, name Bayer shoyld appear on every tablet. Bayer is genuine, and the word enuine--in red--is on every ou can't go wrong if you will just look at the box when you buy it: BEAUTIFUL CHIME CLOCK Jeweller K'ng Street West Phone 189. This Clock has | brass movement, not effected by heat | or cold, which a fine | will run and give a life long | service, The | case is solid wal- | nut with leaded | glass and silver | dial, Chimes | with their musi- cal gongs on sweet tone reeds every hour and half hour. To be wound once a week, Terms, pay 5 down then #1 each week until fully paid. A written ironclad guar- | antee with each by | Lawrence watershed, as suggested at once build a new lock and deepen the Soo Canal until such time as the St, Lawrence is nearing completion so that there would be a demand for deeper channels, It is clearly advisable that the large expenditures requir- ed for depths in excess of present needs be deferred until the great- er depths can be profitably used. "The United States fully recog- nizes the right of the Dominion of Canada to the ownership and use of the Canadian share of the power which may be developed. in the in- ternational section of the waterway as well as to all that developed in the national section and it rec- ognizes also that the disposition of the power is purely a domestic question. It recognizes further that this share is an inberent attribute of Canadian sovereignty, irrespec- tive of the ageney by which the power may be developed. Economic Principle "The United States regards it a fundamental economic principle that the beneficiaries of power de- veloped in the improvement of the International Section of the St. Lawrence should pay ultimately their fair share of the cost of its production, whether the agency constructing these works be a cor- poration, a state or province, or a national government. It believes that a practicable means can be found for effecting the fulfillment of this principle in the arrange- ments made for the improvement of the international section of the river for the joint benefit of na- vigation and power development, and believes that the negotiations entered into in furtherance of the undertaking of the project should have this end In view, "The large expenditures requir- ed for the undertaking are a mat- ter of grave concern to the United States as well as to Canada, It Is felt that when the United States embarks on the enterprise all ex- penditures should be on a sound economic basis, "The United States accepts with. out reservation the prineiple that the operation of works in the In- ternational Section must be such as will control fluctuations of the outflow from Lake Ontario in such manner as to safeguard all inter- ests on the purely Canadian sections of the river, including especially the Port of Montreal, It regards as acceptable the proposal that the design and operation of works in the International Section of the river be under joint technical eon- trol and assumes that the design of all works on the waterway will comply in general with the plans agreed upon hy the Joint Engineer- ing Board as embodying the best principles. "The United States is fully in accord with the view that the ad- visability of undertaking the im- provement at the present time de- pends on the solution of the finan- cial and economic problems involv- ed, It shares the hope expressed that a solution will be found which will fully safeguard the interests of the two countries and will af- ford an equitable basis for a divi- sion of the cost. It is confident that when these economic prinicples are determined, the solution of the en- gineering problems required for their fulfillment will be speedily realized, "I have the honor to suggest, therefore, that the two countries proceed with the appointment of commissioners to discuss jointly the problems presented in your note, and those which I haye presented ; herein with a view to the formu- lation of a convention appropriate to this subject, "The Government of the United States will be glad to pave this dis- cussion extended to the further consideration of any outstanding problems affecting the Great Lakes and the St. Lawrence as suggest- ed in your note. # Accept, Sir, the renewed assur- ance of my highest consideration. FRANK B. KELLOGG. Note of April 5, 1928, from Mr. Laurent Beaudry, First Secretary of the Canadian Le- gation, to the Secretary of State, "Sir: "I have the honour to refer to your note of March 12, 1928, on the St. Lawrence Waterway pro- ject. "The Secretary of State for Exterpal Affairs has noted that while the United States is not in complete agreement with the repre- sentations contained in my rote Number 30 of January 31st, 1928, as to the relative benefits and ml- timate costs to the two countries of the proposed improvement -and the division of expenses to be borne by each country, it is fin- as an acceptable n the sugges- tions of the National Advisory Committee summarized in my mote as to the division between Canada and the United States of the tasks involved in the completion of the Deep St. Lawrence Waterway. "The Secretary of State for Ex- ternal Affairs has also moted that the United States agrees that a channel of twenty-seven feet mini- mum depth would be adrwisable, accepts the principle that the works in the international section must be so operated as to control fluctations of the outflow from Lake Ontario in such manner as to safeguard all interests on the purely Canadian sections, includ- ing the port of Montreal, and a- grees that the design and opera- tion of the works in the interna- tional section should be under joint technical comtrol. It is moted also that the United States would be to have the discussion extended to the consideration of any outstanding problems affect- ing the Great Lakes and the St. THE OSHAWA DAILY TIMES, TUESDAY, APRIL 17, 1928 in my previous note, "In your mote under reference you raise some question as to the relative advantage of the waterway to each country and as to the val- idity of some of the items included on the Canadian side of the bal- ance sheet presented for fillustra- tive purposes by the National Ad- visory Committee, and refer also to the problems involved in the allocation of costs as between na- vigation and power. At the pres- ent stage it does not appear nec- essary to discuss these points in detail, "It is further noted that you do not favour the recommendation of the National Advisory Committee, which was an integral feature of its plan and of the division of tasks which it proposed, that the works on the national section should be given priority over the works on the international section fn order to permit an agreed so- lution of the engineerig difficul- ties in this area, and to ensure reasonable absorption of the pow- er developed on the Canadian side, In view of the fact that the mark- et for hydro-electric power in Can- ada, though large and rapidly expanding, has definite limlita- tions, and that export of power is considered contrary to public pel- fey, it is an essential factor in any plan economically. feasible fran the Canadian standpoint that, whether through the priority procedure set out by the National Advisory Committee or by some al- ternative method, the development of power to be utilized in Canada should not outrun the capacity of the Canadian market to absorb and thus to meet the proportion of the costs of the waterway fair. ly chargeable to power, "The National Advisory Commit- tee laid emphasis on another phase of the situation--the necessity of reconciling the divergent views of the two sections of the Joint Board of Engineers as to the best method of development in the in- ternational section of the St, Law- rence, Definite and agreed engin- eering proposals for the develop- ment of this section would appear to be a necessary preliminary to any computation of costs or decl- sion as to the order of construc tion or division of tasks. His Maj- esty's Government in Canada has previously referred to the view of the National Advisory Committee, which it shares, that a conference adian section of the Joint Board and engineers representing the Province of Ontario. It would ap- ence should he followed hy recons lems in the interatioal section by the whole Joint Board. ous note te certain constitutional questions affecting the Canadian situation, and to the intention of da in accordance with the wishes of the Governments of Ontario and Quebec, to seek a resolution will come before the Court of Canada at an early date. "It was further indicated in my stitutional question in process of solution, His Majesty's Govern sition, upon learning whether the gested by the National Advisory Committee formed an acceptable basis of negotiation, to consult Quebee upon the aspects of the problem with which they may be concerned, While the acceptance by the United States of this basis of negotiation is attended with im- portant qualifications yet the posi- tion of the Government of the nits ed States has been made sufficient ly clear and definite to permit the Government of Canada to take the necessary step thus contempiared and discuss with the provinces the aspects in question, Following this conszuitation, His Majesty's Government in Canada will be in a position to inform the Gevern- ment of the United States further of its views on the proposals con- tained in your note of March 12th, i have the honour to be, with the highest consideration, Sir, Your most obedient, humble servant, LAURENT BEAUDRY. (For the Minister) " Note of April 7, 1928, from the Secretary of State to the Canadian Minister, "Sir: "I have the honor lo receive your mote of April 5, 1928, with reference to the negotiations be- tween the Canadian Government and the United Stats looking to the construction of the deep St. Lawr- ence waterway. I mote your sug: gestion that the position of the United States has been made suf- ficiently clear and definite to per- mit the Government of Canada to take the mecessary steps contem- plated and to discuss with the prov. inces of Ontario and Quebec the as- pects in question. I entirely agree with you that there is no reasom why at this time the Government of Canada should not take up such discussion with the provinces. "I noted also that His Majesty's Government of Canada suggests that it would be advisable that definite and agreed engineering proposals for the development of the International Section would appear to be necessary prelimin- ary to any computation of costs or decision as to the order of com- striction or division of tasks and that a conference should be held between the Canadian section of the Joint Board and engineers rep- resenting the province of Ontario. Further that it would be advis- able that such a conference should he followed by reconsideration of the engineering problems in the should be held between the Can- pear advisable that such a confers sideration of the engineering prob= Reference was made in my previ- His Majesty's Government in Cana- by reference to the Courts, Steps have since been taken to this end, and it is anticipated that the reference Supreme previous note that, with the con- ment in Canada would be in a po- Government of the United States considered that the procedure sug- with the Provinces of Ontario and Joint Board. Of course, the Gov- ernment 9 the United States fully tion with the provinces and witn the Canadian section of the Joimt Board of Engineers. The United States section of the Joint Board will be prepared at any time to take up with the full Board and discuss and reconsider engineering problems with the construction of the International Section. I have the honor to suggest, however, that it would seem as though the entire subject of treaty mnegotia- tion need not be postponed until the termination of these discus- sions and of the reconsideration by the Joint Board of Engineers and that it might be desirable for the negotiations to go on concurrently with the examination of such eng- ineers as their advice and assist- ance would be necessary. The United States will be prepared to cooperate to the fullest extent with the Canadian Government at any time for the purpose of accom- plishing the improvement comntem- plated. "Accept, Sir, the renewed assur- ance of my highest consideration. Frank B, Kellogg" SOMETHING WRONG (Chicago Dally News) There is something wrong with the man who doesn't secretly love praise, Oshawa Luggage YOUR (INITIAL "REE On Suit Case or Club Bag Saywell & Son APPEAL TO HOLY SEE T0 BE PUSHED Editor of La Sentinelle to Fight Decree of Minor Excommunication Rome, April 16.--Appeal to the Holy See, from the decree of mrin- or excommunication against a num- ber of French-Canadian Roman Catholics in Rhode Island, will be nushed to the limit, said Elphege Daignault to the Associated Press. M. Daignault, who is editor of the paper La Sentinelle, which was placed on the Index and who also is among those against whom the decree of minor excommuiaication was issued said that ha would nat think of questioning the compet- ence of the Council of Congrega- tions in Doctrinal matters, but, he could not refrain from expressing surprise that it would take the doubly rigorous measures of ex- communication and indexing of the paper before it had heard explana- tions, which it had itself demanded of him and his followers. He found it astonishing that the Congregation's doors should be "closed to petitioners, particularly those who have come here upon advice of eminent authorities." 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