58 STAT.] CANADA-DEFENSE INSTALLATIONS-JUNE 23, 27, 1944 1291 3. In note no. 643 of December 18, 1943, I informed you that the Canadian Government "will not accept payment from the United States Government for the construction of any permanent facilities or improvements made by the Canadian Government on United States Government account on airfields in Northwest Canada, and will make payment to the United States Government for all construction of a permanent nature carried out by the United States Government on air routes in this area." 4. It was subsequently agreed between the two Governments that, in addition, the Canadian Government should assume the cost of permanent air installations elsewhere in Canada and at Goose Bay (Labrador) built by or on the account of the United States Govern- ment, the cost of the telephone line from Edmonton to the Alaska boundary built by the United States Government, and the cost of the proposed improvement program on the Northwest Staging Route. 5. Discussions have recently taken place between representatives of the two Governments regarding the details of the decisions and arrangements referred to in the two preceding paragraphs, with a view to listing the installations involved and their costs, and to settling the exact amount of money to be paid by the Canadian Government to the United States Government. 6. It is my understanding that the following has been agreed as a result of these discussions. The Canadian Government will pay to the United States Government the following amounts in United States dollars for construction carried out by the United States Gov- ernment: Northwest Staging Route (including contracts not yet com- pleted) $31, 311,196 Flight strips along the Alaska Highway 3,262 ,687 Flight strips along the Mackenzie River 1, 264 ,150 Hudson Bay Air Route 27,460,330 Airfield at Mingan, P. Q . 3, 627, 980 Airfield at Goose Bay, Labrador 543,000 Telephone line from Edmonton to Alaska boundary 9,342,208 TOTWA 76,811, 551 7. The details of the costs of construction are shown in the attached appendices marked "I", "II" and "III", [1] which have been pre- pared by the United States War Department. The appendices show that costs of $90,683,571 were actually incurred by the United States Government in construction but $13,872,020 of this amount was for in- stallations which, although of value to joint defence during the war, have no permanent value. It has been agreed that the Canadian Gov- ernment should pay that part of United States construction costs which represents installations having a permanent value, namely $76,811,551. ' [Not printed.]
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