61 STAT.] CANADA-CANOL PROJECT Nov. 7, Dec. 30, 1946 Mar. 5, 6, 1947 Arrangement between the United States of America and Canada respect- ing disposal of crude oil facilities of the Canol Project. Effected by exchange of notes signed at Ottawa November 7 and December 30, 1946; entered into force December 30, 1946. And exchange of notes signed March 5 and 6, 1947. The American Ambassador to the CanadianSecretary of State for External Affairs November 7, December 30,1946, March 5, 6, 1947 [T. I. A. S. 1697 EMBASSY OF THE UNIrED STATES OF AMErICA Ottawa, CanadaNovember 7,1946 No. 598 SIR: I have the honor to refer to your note No. 83, dated August 81, 1945, and to my note No. 366, dated September 6, 1945, in regard to the crude oil pipeline from Norman Wells, Northwest Territories, to Whitehorse, Yukon Territory, and the refinery at Whitehorse, which, together with equipment pertaining thereto, have been re- ferred to as the crude oil facilities of the Canol Project. My reply of September 6 confirmed the understanding that the United States would at a later date submit to the Canadian Government plans for the dis- position of these facilities. In accordance with the understanding referred to, there are set forth in this note proposed plans for disposal which, it is hoped, will prove acceptable to your Government. These proposals have been drawn up to give effect to the underlying principle, that, as military considerations are no longer paramount, disposal should be accom- plished in a manner designed to recover the fair monetary value of facilities. It will be recalled that in the exchange of notes of June 27-29, 1942, the two Governments agreed that if neither the Canadian Government nor any private company desired to purchase the crude oil pipeline and refinery, the disposition of both facilities should be referred to the Permanent Joint Board on Defense for consideration and rec- ommendation. It was further agreed in the same exchange of notes that the two Governments would not themselves order or allow the dismantling of either the pipeline or the refinery unless and until approval for dismantlement should be recommended by the Perma- nent Joint Board on Defense. In the foregoing connection I understand that it is the view of the competent military authorities of our two countries that the crude oil facilities of the Canol Project no longer have defense value. Accordingly, it seems apparent that the above referred to provisions relating to the Permanent Joint Board are now unnecessary and should be annulled in order that the disposal authorities may have maximum freedom of action. My Government hopes that the Cana- dian Government will concur in this view and will agree to the Ante, pp. 3679,3680. 57 Stat. 1418. 3681
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