On April 16, 1953, the United States requested permission of Canada to build a Loran station at Cape Christian, a point on the northeast coast of Baffin Island approximately nine miles from the settlement at River Clyde. The request was motivated by the need for further Long-Range Aid to Navigation facilities for the use of ships and aircraft operating out of Thule in Greenland. These facilities would also of course be available to Canadian ships and aircraft. Because the building season at Cape Christian is only approximately six weeks long, the United States wished to do preliminary work on the site during the summer of 1953 in order to undertake the construction of the station in the summer of 1954.

2. The Cabinet Defence Committee at its 94th Meeting, on May 15, 1953, agreed "that the Department of External Affairs should inform the United States that the Canadian Government approved the preliminary construction work on the Loran station at Cape Christian on the understanding that the detailed terms and conditions would be negotiated at a later date." This was done on May 21, 1953, and preliminary construction work was carried out last summer.

3. At a meeting in Ottawa on March 9, 1954, officials of interested departments and the two governments discussed possible terms and conditions under which the Canadian Government might be prepared to authorize the erection and operation of the proposed Loran station. On the basis of this discussion and subsequent correspondence with the members of the Advisory Committee on Northern Development, the Department of External Affairs prepared a draft of terms and conditions. These have been incorporated in the annex to a draft note to the United States Embassy? which is attached to this memorandum. It will be noted that the conditions with regard to the right of Canada to assume operation, Paragraph 5(a), and the period of operation of the station, Paragraph 5(b), are in conformity with the tenure formula approved by Cabinet on February 25, 1954, in connection with the proposed establishment by the U.S. Air Force of additional radar stations in Canada. The United States is prepared to accept the draft terms and conditions including that contained in Paragraph 5(a) concerning the sharing of costs should Canada assume the operating of the station, it being understood that the arrangement is subject to the usual qualification with respect to the availability of appropriated funds.

4. The Acting Secretary of State for External Affairs and Minister of National Defence recommends that he be authorized to send to the United States Ambassador a note in terms of the attached draft. ⁷³

BROOKE CLAXTON