Right Hon. W. L. MACKENZIE KING (Prime Minister):
Mr. Speaker, I should like to table an exchange of notes between the United States of America and Canada constituting an agreement on the subject of war surpluses and related matters. In relation thereto I should like to make the following statement.
Both the United States government and our own have found it advantageous to simplify the procedure followed hitherto in disposing of defence facilities and equipment provided in Canada by the United States. They have therefore agreed that Canada shall pay the United States $12,000,000 (U.S.) in return for which there is transferred to the Canadian government a long list of defence facilities and equipment, the original cost of which was approximately $59,000,000 (U.S.).
These installations and materials include items related to the Alaska highway and the northwest staging route, to weather stations in northeastern Canada, movable property reported to War Assets Corporation under an earlier agreement, but not sold, and certain naval and air equipment which had been provided by the United States to the United Kingdom under lend-lease and which, when returned to United States account, remained in Canada. The price paid is a reasonable one, in view of the usefulness of many of these installations and materials to the armed forces and other agencies of government, and the agreement is regarded by both governments as a satisfactory settlement of a property disposal problem which otherwise might have been long drawn out and complicated.
There is an additional aspect of the exchange of notes which is important.
In order to provide equipment necessary for the training programmes of the Canadian armed forces, the United States government will endeavour to make available, surplus military type equipment up to a maximum value of $7,000,000 (U.S.). The agreement calls for negotiation between the two governments as to quantities and prices and will enable the Canadian armed forces to obtain much of the training equipment that they will require at figures considerably less than would be the case if orders had to be placed with manufacturers for new equipment.
Subtopic: UNITED STATES-CANADA-AGREEMENT RESPECTING DEFENCE FACILITIES AND EQUIPMENT