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[Enclosure]
The Canadian Secretary of State for External
Affairs (Mackenzie
King) to the American
Minister (Phillips)
The Secretary of State for External Affairs presents his compliments
to the Minister of the United States and, with reference to his Note Verbale of the 15th May, 1929,55 regarding the proposed power development in
Passamaquoddy Bay by the Canadian Dexter P. Cooper Company, has the
honour to request him to convey to his Government the following
views taken on this subject by the Government of the Dominion of
Canada.
The Act of the Canadian Parliament incorporating the Canadian Dexter
P. Cooper Company, which was assented to on the 15th June, 1926,
provided as follows in Section 14:
The construction of the works of the company shall be
commenced within three years and completed within six years
after the passing of this Act, otherwise the powers hereby
granted shall cease as respects so much of the said works as
then remains uncompleted.
It was further provided that the powers conferred
upon the Company by the Act in question should not be exercisable
until the plans of the Company had received the approval of the
Ministers of Public Works, of Marine and Fisheries and of the
Interior, and until certain undertakings had been given and
approved.
During the current session of Parliament the promoters of the project
secured the introduction by a private member of a Bill extending for
two years the period in which construction might be begun. The Bill
was referred to the Private Bills Committee, which held extensive
hearings and reported against the proposed extension by a vote of
twenty-two to ten. The action of the Committee was based largely on
evidence presented of the serious effect of the proposed works on
the fisheries in the Bay of Fundy. In this connection it may be
noted that the Sub-Committee of the North American Committee on
Fisheries Investigation, after, as has been indicated in the Note Verbale under reference, stating its
opinion that if the proposed construction was carried out the Weir
Fisheries for Herring inside the dams would be almost wholly
eliminated,
[Page 87]
reported that
while it recognized that the effects on the fisheries outside the
dams predicted in the report on the subject presented by Dr. A. G.
Huntsman, a member of the Sub-Committee, might follow, it was not
prepared as a whole to forecast whether these results would or would
not follow, believing that a fuller investigation was needed.
The suggestion in the Note Verbale from the
Minister of the United States that before adjournment the Canadian
Parliament might reconsider the application of the Company for
extension of time has received careful consideration. It is
regretted that after a careful review of all the circumstances it
does not appear that this procedure would be feasible. It may be
pointed out, however, that while a failure to commence construction
of the works within three years involves cessation of the powers
conferred by Chapter 23 of 16–17 George V as respects so much of the
works as remains uncompleted, the corporate existence of the company
is untouched by the provisions of the Section. The Company continues
to be an actual and existing corporation, capable of carrying out
all its corporate powers save the power of proceeding with the
construction of the works. The powers as to construction conferred
by the Act may be revived by Parliament should such a course appear
to be warranted in the light of subsequent information.
In view of the importance of the fisheries aspect of the question,
which is recognized in the Note Verbale from
the Minister, the Canadian Government would be prepared to authorize
the Department of Marine and Fisheries to continue the consideration
of the effect of the proposed works on the fisheries, and to
cooperate for this purpose with the United States authorities
through the Sub-Committee of the North American Committee on
Fisheries Investigation or such other agency as may be found most
suitable. In the event of such further consideration indicating that
the objections based on these grounds had not been substantiated, it
would be open to any member of the House of Commons to introduce at
a subsequent session a Bill to revive the powers granted to the
Company.
