Hon. C. G. POWER (Minister of National Defence for Air):
Mr. Speaker, I desire to table copies in English and French of a memorandum of agreement between His Majesty's Government in the United Kingdom and His Majesty's Government in Canada as to the financial arrangements applicable to personnel of the Royal Canadian Air Force serving with or in conjunction with the Royal Air Force, and to make a short summary and statement of the provisions of this agreement, which was signed in London this morning by the Hon. Vincent Massey on behalf of Canada and Sir Archibald Sinclair, the Secretary of State for Air, on behalf of the United Kingdom.
The provisions of this agreement provide for the termination of certain appendices of the memorandum of agreement dated June 5, 1942, between the governments of the United Kingdom, Canada, Australia and New Zealand, about the training of air crews in Canada and their subsequent service, and the present agreement shall be regarded as becoming effective from April 1, 1943. These matters were referred to in the speech from the throne and also in the announcement made by the Minister of Finance (Mr. Ilsley) on February 8.
Royal Canadian Air Force
The following is a summary of the agreement supplementing the Ottawa agreement of 1942:
1. Under the new agreement, Canada assumes financial responsibility for the following:
(a) Full cost of the 35 Canadian squadrons formed under the 1942 agreement. In addition Canada, will bear the cost, as formerly, of the 3 original Canadian squadrons, which were not related to the air training agreements.
(b) Full cost of certain ancillary units overseas, formed for the control, administration and maintenance of the Canadian squadrons.
(c) R.C.A.F. pay and dependents' allowances and cost of clothing for R.C.A.F. personnel attached to the R.A.F. and not serving in R.C.A.F. units.
(d) Pension benefits to the extent of the difference between R.C.A.F. and R.A.F. rates in respect of the personnel referred to at (c).
(e) The cost of transportation for all R.C.A.F. personnel to the United Kingdom and upon repatriation to Canada.
2. The new commitments entered into by Canada, by reason of the supplementary agreement, which previously were the responsibility of the United Kingdom government, are:
(a) In respect of the 35 squadrons and formations referred to at 1 (b) above
(i) R.A.F. rates of pay.
(ii) R.A.F. rates of pensions and noneffective benefits.
(iii) All other operating costs.
(iv) Capital costs.
(b) In respect of R.C.A.F. personnel serving in R.A.F. units and formations
(i) R.A.F. rates of pay.
(ii) Clothing of personnel.
(c) In respect of all R.C.A.F. personnel proceeding for duty with or in conjunction with the R.A.F.
(i) The costs of transportation to the United Kingdom and on repatriation.
Locations and Areas of Responsibility of R.C.A.F.
Base Accounts Offices and Liaison Accountant Officers Overseas 1. Base Accounts Offices
Office-Location Area of Responsibility
(a) United Kingdom Base Accounts Unit- London, England
(b) Middle East Base Accounts Office-Cairo, Egypt
(c) Far East Base Accounts Office-Bombay, India
J : i ' M
United Kingdom, Iceland, The Faroes, Gibralter, Australia and New Zealand.
Middle East, Malta, Aden, Iraq, The Levant, West Africa, North Africa, South Africa and Southern Rhodesia.
India, Ceylon, Burma and China.
2. Accountant Liaison Officers
British West Africa-Freetown, Sierra Leone. North West Africa-Algiers, Algeria.
The total cost to Canada for the current fiscal year is estimated at $341,000,000.
Subtopic: FINANCIAL ARRANGEMENTS APPLICABLE TO PERSONNEL SERVING IN OR WITH THE R.A.F.