Form of the Lease

The draft takes the form of an Exchange of Notes to which is annexed an actual lease to be signed by the Minister of National Defence for Canada. I never could see the point of using such a form i.e., of having two documents for signature, one of which is drawn up along the lines of an ordinary commercial lease. The United States officials no doubt like this form. In the Leased Bases Agreement of 1941, there was a covering diplomatic agreement and also a number of leases in commer­cial form. My view is that the commercial form is not appropriate to transactions of this kind - it would be appropriate if the Canadian Government were simply leas­ing an ordinary building to the United States Government. The proposed lease is in no sense an ordinary property transaction; it is rather an agreement between the Governments relating to their joint defence.

Although no particular harm will result from the form followed in the draft, my recommendation would be to alter the form as follows:

(1) Delete the last sixteen words of the first paragraph of the Note and substitute the following - "the Government of Canada is prepared to and does hereby grant such a lease subject to the detailed terms set forth in the Annex hereto."

(2) Add a final clause in the following form-"This Note and your favourable reply will constitute an agreement, to come into force on (date to be inserted)."

(3) Strike out the first page of the draft lease and substitute something along the following lines:

"ANNEX"

"The Canadian Government (hereinafter called the Lessor) hereby leases to the United States of America (hereinafter called the Lessee) those certain parcels or tracts of lands and premises, (hereinafter ...",

and then carry on with the remaining pages of the draft lease. This kind of annex will not require any signature. The effective binding agreement would be the Exchange of Notes.

Detailed Reference to Privileges

On Page 3 of the draft Note, beginning'with the words "Subject to enactment of the necessary legislation", there is set forth in some detail the privileges to be given. It is not necessary to set these forth and, as this Exchange of Notes will presumably be published, it may stir up unnecessary criticism in Canada if the priv­ileges are spelt out in the Note. On the assumption that the Canadian Government will approve the recommendations of the P.J.B.D. on this subject, it is only neces­sary to say in the present Note that the question of Customs and Excise privileges, jurisdiction and postal privileges, will be governed by the recommendations of the P.J.B.D. which have been formally accepted by both Governments. When a recom-mendation of the P.J.B.D. is formally accepted by both Governments, it is just as binding as anything put in an Exchange of Notes and it is not really necessary to repeat the recommendation in an Exchange of Notes.¹⁶

Option for Renewal

The draft lease provides specifically that the United States may renew the lease for one further term of 20 years. This wording is obviously based on the language used at the P.J.B.D. meeting in March, 1950, when the Canadian members said that proposed lease would be for 20 years "with an option for renewal".¹⁷ If it is now desired to grant something less than a clear option for renewal, it would be neces­sary to delete the 8 lines dealing with renewal and substitute something along the following lines:

"The Lessee may, by notice in writing to the Lessor not less than six months prior to the expiration of the said term, request a renewal of the lease for a further period of not more than 20 years. If such a request is made, the Lessor undertakes to consider it sympathetically in the light of the mutual interest of Canada and the United States of America in the security of the North Atlantic area."

Storage of Explosives or Special Weapons

The draft contains no restriction other than the one relating to accepted safety standards. If nothing is to be in the lease on the subject of explosives or special weapons, the Canadian Government will not have under this document any control over the storage of explosives or special weapons at Goose Bay. I gather that such control may be guaranteed in some other document.¹⁸

M.H. WERSHOF

[PÈCE JOINTE 1/ENCLOSURE 1]

Projet d'échange de notes

Draft of Exchange of Notes

SECRET

PROPOSED EXCHANGE OF NOTES BETWEEN CANADA AND THE UNITED STATES
OF AMERICA RELATING TO GOOSE BAY, PROVINCE OF NEWFOUNDLAND¹⁹

I

The Secretary of State for External Affairs of Canada
to the United States Ambassador

Excellency,

I have the honor to refer to discussions which have recently taken place between representatives of our Governments on the Permanent Joint Board on Defense con­cerning a proposed lease to the United States of America of certain lands (hereinaf­ter referred to as Leased Areas) situated within Royal Canadian Air Force Station Goose Bay in the Province of Newfoundland for military purposes and to inform you that in view of the mutual interest of Canada and the United States of America in the security of the North Atlantic area the Government of Canada is prepared to execute such a lease in the form annexed hereto.

The Government of Canada proposes that the following arrangements shall be in effect at Goose Bay:

(1) The United States of America, without prejudice to the sovereignty of Can­ada, shall have quiet enjoyment of the Leased Areas, subject at all times to the right of free access by the Commanding Officer, Royal Canadian Air Force Station Goose Bay, to any part of the Leased Areas.

(2) United States military personnel outside the Leased Areas shall be under the exclusive control and command of United States authorities in military matters, but in all other matters shall be subject to the laws and regulations applicable to Cana­dian military personnel. The United States Air Force Commanding Officer at Goose Bay shall be responsible for the observance of Royal Canadian Air Force Station Standing Orders by all United States military personnel at Goose Bay outside the Leased Areas.

(3) The United States of America shall have the right to use the airfield at Goose Bay for the operation of United States military aircraft, subject to air traffic control by the Royal Canadian Air Force. Prior notification of all expected arrivals shall be given to the Royal Canadian Air Force at Goose Bay.

(4) The United States of America shall have free and uninterrupted use of all roadways at Goose Bay outside the Leased Areas, subject to any limitations that may be imposed by the Commanding Officer, Royal Canadian Air Force Station Goose Bay, in the interests of the efficient operation of the station.

(5) The United States of America may have the use, for the transportation of petroleum products, of all pipes, pipelines, pumps and valves installed at Goose Bay by the Government of Canada and fornung a part of the interconnected pipe­line system, provided that the United States of America shall be responsible for any damage or injury suffered by others in consequence of the negligence of the mem­bers of its armed forces or of its officers, employees, or agents in connection with such use.

From time to time the United States of America may be authorized to use addi­tional areas, sites and locations at Goose Bay and, in the absence of agreement to the contrary, such use shall be subject to the same terms and conditions as pertain to the Leased Areas. The United States may also be authorized to use such rights­of-way at Goose Bay and in the vicinity thereof as may hereafter be agreed upon, and may construct, maintain and operate thereon, as may be required for the sup­port of United States military operations at Goose Bay, wire and radio communica­tions facilities and transportation facilities.

The United States of America will not be required to pay any tax or fee in respect of registration or licensing of motor vehicles for use within Royal Canadian Air Force Station Goose Bay.

Subject to enactment of the necessary legislation by the Parliament of Canada, it is the intention of the Government of Canada that the following recommendations of the Permanent Joint Board on Defense shall be given effect at Goose Bay:

(1) Application of customs/excise privileges identical to those recommended for the Leased Bases on the Island of Newfoundland (that is, the same privileges as are operative in other provinces, together with a right to continue PX's and similar institutions);

(2) Application of the Visiting Forces (USA) Act and of the legislative amend­ments and administrative arrangements contemplated in Section G of Part I of the minutes of the special meeting of the Permanent Joint Board on Defense at Mon­treal, Quebec, March 28-30, 1950;

(3) Application of military postal privileges identical to those recommended for the Leased Bases on the Island of Newfoundland.

[PIÈCE JOINTE 2/ENCLOSURE 2]

Projet d'un bail

Draft Lease

SECRET January 11, 1951

LEASE

THIS INDENTURE made in duplicate this ______ day of January in the year of our Lord, one thousand nine hundred and fifty-one

BETWEEN:

HIS MAJESTY THE KING in right of Canada, represented herein by the Honourable the Minister of National Defence (hereinafter called the Lessor)

OF THE FIRST PART AND

THE UNITED STATES OF AMERICA (hereinafter called the Lessee)

OF THE SECOND PART WITNESSETH:

THAT WHEREAS by Notes exchanged on the ______ day of January, nineteen

hundred and fifty-one, between the Secretary of State for External Affairs of Can­ada and His Excellency the Ambassador of the United States of America at Ottawa,the Governments of Canada and the United States of America have expressed their mutual desire to give effect to the recommendations of the Permanent Joint Board on Defence relative to the leasing of certain lands within Royal Canadian Air Force Station Goose Bay, in the Province of Newfoundland, to the United States of America for military purposes;

NOW THEREFORE, in consideration of the premises, the Lessor hath demised and leased and by these presents doth demise and lease unto the Lessee ALL AND SINGULAR those certain parcels or tracts of land and premises (hereinafter referred to as Leased Areas) situate, lying and being within Royal Canadian Air Force Station Goose Bay, in the Province of Newfoundland, described as follows:

***

(Description of three or four major areas to be inserted)

***

TO HAVE AND TO HOLD the same for and during the term of twenty years to commence on the date hereof, free from the payment of all rent and charges; PROVIDED that the Lessee may at its option, without further consideration, by notice in writing to the Lessor not less than six months prior to the expiration of the said term, renew this lease for a further term of twenty years upon the same condi­tions as herein contained.

The Lessee shall have the right of free access to and egress from the Leased Areas and shall have within the Leased Areas, in accordance with the said Notes, all the rights which are necessary to support the operation of United States military aircraft at Goose Bay, including, inter alia, the right, power and authority:

(a) to occupy and control the Leased Areas and to undertake such internal secur­ity measures as may be deemed necessary by the Lessee;

(b) to construct, install, improve and maintain in the Leased Areas personnel housing, hangars, warehouses, shops, hardstands, parking aprons, storage and dis­tribution facilities for aviation gasoline and other petroleum supplies, communica­tions facilities and navigation aids (including meteorological systems), radio and radar apparatus and electronic devices of any desired power, type of emission and frequency, and any other type of building, facility or improvement deemed neces­sary by the Lessee, PROVIDED that all new major construction in the Leased Areas shall have the prior approval of the Commanding Officer, Royal Canadian Air Force Station Goose Bay.

All buildings, structures and improvements permanently affixed to the realty by the Lessee at Goose Bay shall remain the property of the Lessee for the duration of this lease. Any such buildings, structures, and improvements situated at Goose Bay upon the termination of the lease shall thereupon become the property of the Lessor without compensation to the Lessee. The ownership of all other property, including removable improvements, equipment, material, supplies and goods, brought into Canada by the Lessee in connection with its operations at Goose Bay shall remain in the Lessee during and after the termination of this lease, and the Lessee shall have the unrestricted right of removing or disposing of all such property.

The Lessee shall observe accepted safety standards at Goose Bay for the protec­tion of life and property.

The Lessee shall not install, maintain or operate at Goose Bay any lights or other visual aids to navigation of aircraft without the approval of the Commanding Officer, Royal Canadian Air Force Station Goose Bay.

The Lessee shall not at any time cause the waters of the Hamilton River to be polluted by disposal of sewage or otherwise.

The Commanding Officer, Royal Canadian Air Force Station Goose Bay, shall at all times have free access to any part of the Leased Areas.

The Lessee may not assign or sub-let nor may it part with the possession of the whole or any part of the Leased Areas.

IN WITNESS WHEREOF, etc.

¹⁶ Sur ce point, voir les documents 674 et 675./On this point, see Documents 674 and 675.

¹⁷Voir/See Volume 16, Document 826.

¹⁸ Note marginale :/Marginal note:
(Note: The above points were discussed by Canadian members of [the] PJBD at [an] agenda meeting Jan. 19) M.W[ershof]. ¹⁹ Note marginale :/Marginal note:
(Note-this draft was given us by US officials) M.W[ershof].