Foreign Relations of the United States Diplomatic Papers, 1935, The British Commonwealth; Europe, Volume II

842.801/118

The Chargé in Canada (Boal) to the Secretary of State

No. 1079

Ottawa, February 15, 1935.
[Received February 13.]

Sir: I have the honor to refer to the Legation’s despatch of April 19, 1934, regarding the Canada Shipping Act and the letter dated April 17, 1934, which was handed to the Prime Minister subsequent to the writing of the despatch under reference, copy of which was enclosed in that despatch. I have now received a reply from the Prime Minister, addressed to the Minister, of which I have the honor to enclose a copy.

While this subject is covered extensively in the Department’s instruction No. 103 of November 3, 1933, I have the honor to request instructions with regard to the reply to be made to the Prime Minister’s letter of February 12, 1935. I believe that in order to carry on the preliminary survey which the Canadian Government now desires it will be desirable to be instructed by the Department on the following points:

(1) It is understood that the ultimate agreement to be concluded should be in the form of a treaty. However, would it be desirable or practicable to conclude this arrangement in the form of an executive agreement or exchange of notes if it should develop that the Canadian Government should prefer such forms? Would any form other than the treaty form provide adequate assurance of the validity of the agreement in the face of existing law in the United States which might later be invoked?

(2) What should be the duration of the treaty?

(3) A draft of the specific provision which our Government could agree to, to permit Canadian vessels to operate between United States ports on the St. Lawrence and on the Great Lakes to carry cargo destined for exportation beyond the United States.

(4) A draft of the provision which the United States would desire to have incorporated covering a reciprocal right for American vessels to carry cargoes destined for exportation beyond Canada between Canadian ports on the St. Lawrence and on the Great Lakes.

(5) An indication as to whether there should be a provision as to the particular ports in these waters to be included in this agreement. (Department’s instruction No. 757 [157] of March 4, 1931.)⁴⁵

Respectfully yours,

Pierre de L. Boal

[Enclosure]

The Canadian Prime Minister and Secretary of State for External Affairs (Bennett) to the American Minister (Robbins)

Ottawa, 12 February, 1935.

My Dear Mr. Robbins: May I refer to Mr. Boal’s letter of April 17, 1934, regarding a provision in the Act to amend the Canada Shipping Act which would affect the movement of United States vessels on the Great Lakes and St. Lawrence River. As you are aware, the Act was amended to provide that certain of these provisions should not come into force until a date fixed by Proclamation. No such Proclamation has yet been issued.

I have noted with interest the summary in Mr. Boal’s letter of the interpretation which has been made, in an opinion of the Attorney General of the United States, of Section 27 of the United States Merchant Marine Act of 1920. It appears that under the present interpretation, Canadian vessels are permitted to transport between ports of the United States cargo which is not destined for ultimate delivery and consumption in the United States. It was indicated, however, that there was no definite assurance that the present construction of the United States law would be maintained, and that it was the view of your Government that it would be desirable to consider the conclusion of an ad hoc treaty with Canada whereby vessels of each country operating on the Great Lakes or the St. Lawrence River would be allowed to carry cargo destined for export between ports of the other country.

I believe it would be desirable to have the possibility of such an agreement examined. I would therefore suggest that if the proposal meets with your concurrence, a preliminary survey of the situation might be made at a convenient time next week by some member of your staff in conjunction with officials of the Department of External Affairs and other Canadian Departments interested. Following this survey, I should be glad, along with those of my colleagues who are particularly concerned, to discuss the question with you.

Yours sincerely,

R. B. Bennett

45. Foreign Relations, 1932, vol. ii, p. 111.