Foreign Relations of the United States, 1952–1954, Western Europe and Canada, Volume VI, Part 2

611.42321 SL/7–954: Despatch

No. 995
The Ambassador in Canada (Stuart) to the Department of State

official use only
air priority
No. 24

Ottawa, July 9, 1954.

• Subject: St. Lawrence Seaway Discussions, Ottawa, July 5–6

United States and Canadian officials met in Ottawa July 5–6 to discuss a joint St. Lawrence Seaway. The 12-man American group was headed by Deputy Defense Secretary Anderson and included Livingston Merchant, Assistant Secretary of State; Lewis Castle, Administrator-designate of the St. Lawrence Seaway Development Corporation; and Lee Rankin, Assistant Attorney General. The Canadian group was headed by R. B. Bryce, Clerk of the Privy Council, and included Lionel Chevrier, recently-named president of the St. Lawrence Seaway Authority, and Max Wershof, Legal Advisor of the Department of External Affairs.

A complete list of American and Canadian participants is Enclosure No. 1.¹

Enclosure No. 2 is a digest of the record of the discussions.¹

The Canadians had repeatedly indicated prior to the discussions that they would be interested in any specific proposals which the United States might wish to advance. It was the friendly, generous attitude on the part of the Canadian chairman in presenting the Canadian points of concern first which made it possible for the discussions to get under way so easily, and this attitude was a clear indication that the Canadians had no obstructionist intentions.

The Canadian position is based on the exchange of notes of June 30, 1952,² under which we agreed that Canada should construct the Seaway on its side of the channel. Canada is not inclined to relinquish this position readily until it has received some satisfaction on a number of points. One major problem for the Canadians is the matter of navigation rights. If the United States constructs the international section of the seaway on its side, all Canadian shipping will be subject to United States limitations, and they are apprehensive of the possibility of rigid application of the McCarran Act to Canadian traffic or the possibility of future legislation of an even more restrictive nature. They wish some reassurance against such a possibility, which will be difficult for the United States to give in the light of our constitutional system. This problem will be explored by legal experts on both sides in detail.

Other problems which were examined concerned third party shipping, for Canada has special Commonwealth commitments; tolls, where the Canadians are inclined to favor separate tolls and the United States joint tolls; and some financial problems, i.e., (a) the possibility of replacement or compensation to Canada for the loss of its 14-foot waterway in the international section if we build a 27-foot channel there and (b) the matter of $15 million contribution by either Canada or the United States to the power entities for works which these entities will undertake in the international section and which would benefit both navigation and power. There will be detailed interim examination on many of the subjects on both sides and late July is set for the next meeting.

[Here follow a draft agenda for the next meeting, agreed upon by the participants, and a brief summary of the treatment of the St. Lawrence discussions by the Canadian press.]

For the Ambassador:

George S. Vest
Second Secretary of Embassy

1. Not printed.
1. Not printed.
2. For information concerning this exchange of notes, see Document 944.