711.4215 Air Pollution/75

The Minister in Canada (Phillips) to the Secretary of State

No. 516

Sir: With reference to my telegrams No. 151 of July 11, 7 p.m. and No. 153 of July 12, 1 p.m., in regard to the complaints of property owners in the State of Washington as to damages by fumes from the Trail plant of the Consolidated Smelting and Mining Company of Canada, I have the honor to enclose herewith a copy of the Canadian Government’s note of July 11th.

I have had many conferences with the Under-Secretary of State for External Affairs and with the Prime Minister himself, and have lost no opportunity to urge the immediate submission of the complaint to the Joint High [sic] Commission. Confidentially, I may point out that there has been a decided reluctance on the part of the authorities here to agree to anything which might appear to endanger the existence of the Consolidated Smelting and Mining Company plant at Trail. As the Department is no doubt aware, the majority of the stock of this important company is owned by the Canadian Pacific Railway, which is the most powerful commercial activity in the Dominion. The Government’s reluctance, therefore, to accept completely the Department’s point of view in the submission of the matter to the Commission may be accepted, I think, as an indication of the attitude of the Canadian Pacific Railway itself.

The Canadian reply of yesterday’s date concludes with the statement that the Canadian Government considers that the situation will be fully met by a joint reference to the International Joint Commission, under Article IX of the Boundary Waters Treaty, providing for inquiry and report upon the facts as to the present effect of the fumes upon property in the State of Washington and the probable [Page 91] effect in the future under such plant extensions or modifications in process as are contemplated, and as to the extent of damages so caused and methods of providing adequate compensation.

I have [etc.]

William Phillips
[Enclosure]

The Canadian Secretary of State for External Affairs (Mackenzie King) to the American Minister (Phillips)

Sir: I have the honour to acknowledge your note of July 5th and previous communications, with reference to complaints of property owners in the State of Washington as to damages by fumes from the Trail plant of the Consolidated Smelting and Mining Company of Canada.

I note that the Government of the United States is inclined to the view that any inquiry into the situation should include provision for measures involving restrictions on the operation of the smelter, to check the emission of the fumes of which some part at times drifts across the boundary into the State of Washington. Under present conditions such action, we are advised, would involve disaster for a Canadian industry of predominant importance, and obviously the adoption of such a drastic course could be warranted only if its necessity were established beyond question.

The proposal of this remedy by the Government of the United States appears to rest upon the view that the fumes in question are causing or threatening to cause vast and irreparable damage to plant, animal and even human life in the State of Washington, and to involve the removal of entire communities, and also upon the understanding that the property owners have endeavoured in vain to obtain from the Company indemnity for damages suffered. The Government of Canada is not aware of the evidence upon which these views are based, aside from the affidavits by property owners made in May and June of 1927, of which copies were furnished. Information in its possession, including a detailed report of a responsible officer of the Province of British Columbia, and reports by United States scientists of standing, copies of which were duly forwarded or referred to in my note of the 24th February, 1928, indicate first, that it is held that any damage inflicted in the State of Washington has been slight, second, that the Company has made repeated offers of indemnity and has in fact effected compensation in a number of instances, and third, that a chief difficulty in the way of effecting such indemnity lies in the laws of the State of Washington, which are said to make it impossible for an alien corporation to acquire lands [Page 92] or easements. In view of this conflict of information, the Canadian Government agrees with the view of the Government of the United States as to the necessity of establishing the actual facts of the situation by thorough enquiry by an impartial authority; it is not able to see that the findings of such an authority should be prejudged by acceptance of a course of policy based upon one interpretation of the facts which are in dispute.

It may be observed that the Province of British Columbia itself has not found it necessary to adopt such a course for the protection of the interests of property owners in the neighbourhood of the smelter. Provision has been made for compensation when damage is established, by direct agreement between the parties, or if this is not possible, by reference to a County Court under the Arbitration Act. While desirous of furthering in the fullest measure within its power the observance of neighbourly policies, the Canadian Government is not aware of any grounds of international comity which would require granting to the inhabitants of a neighbouring country a remedy not accorded to the inhabitants of Canada itself.

The proposal in question is also based upon information conveyed to the Government of the United States to the effect that the Company is planning to enlarge its smelter, from which the inference is apparently drawn that the fumes will be intensified in the future. Inquiry has accordingly been made of the Company. The Canadian Government is informed that the exact contrary is the case. The extension contemplated is stated to be for treatment of residues which are practically sulphurized now, and will not increase the emission of sulphur. The construction now under way consists of an experimental plant to be built at a cost of five hundred thousand dollars for the express purpose of ascertaining whether it is technically and economically feasible to dispose of the deleterious gases in question. It is recognized that the most desirable solution would be a reduction of the emission of any fumes harmful to vegetation if this could be effected with due regard to all the interests involved. The experiments now being carried on, as to which full information would presumably be available in any inquiry, appear to furnish an effective and fully adequate method of seeking such a solution.

In view of these considerations, the Canadian Government considers that the situation would be fully met by a joint reference to the International Joint Commission, under Article IX of the Boundary Waters Treaty, providing for inquiry and report upon the facts as to the present effect of the fumes upon property in the State of Washington and the probable effect in the future under such plant extensions or modifications in process as are contemplated, and as to the extent of damages so caused and methods of providing adequate compensation.

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The Canadian Government would be prepared to facilitate in every way an early reference to the Commission, and is not aware of any reason why such an investigation could not be initiated during the summer season. Whether a reference should be framed in detail by scientists nominated by the two Governments, or drawn in more general terms leaving it to the Commission to provide for the scientific and other expert inquiries called for, is a matter which might be considered. The Canadian Government is inclined to believe that the latter course would be more expeditious.

Accept [etc.]

W. L. Mackenzie King