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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Canada,   pp. 160-199 PDF (14.9 MB)

Page 171

isters of Transport, Public Works and possibly Finance. There will
also probably have to be a representative of the French-Canadian
group. (Mr. Cardin, the Minister of Public Works, is a French-
Canadian and would, it would seem, presumably meet this
  Dr. Skelton told me that they had been very much interested in
studying the draft treaty which I had brought up with me from Wash-
ington.'s He said that they were all "full of admiration for the fine
piece of drafting represented by the new treaty". In general, he felt
that it offered a very good basis for discussion. There were, it was
true, certain points with which they were not quite in agreement,
notably with regard to the powers of the Commission, but he felt that
the question had been dealt with very fairly and repeated that he felt
the draft constituted an excellent beginning. I shall not fail to re-
port to the Department any further developments, but I felt it im-
portant that this despatch should be in the Department's hands, if
possible, before the arrival of the Prime Minister. In this connection
I wish to call the Department's attention to a despatch from the Con-
sulate General in Toronto dated February 24th last, on the subject
of "The Ontario Government and the Hydro Electric Power Issue:
Attitude on St. Lawrence Project", two copies of which I note were
forwarded to the Departmentlsa one for the files of the Commercial
Office and the other for the Division of Western European Affairs.
  This despatch is of particular interest not only as bringing out cer-
tain new facts but as confirming points discussed during the recent
conversations in Washington between officials of the Department, the
Federal Power Commission and the New York Power Authority, at
which I was present. I have in mind particularly a conversation
which an official of our Federal Power Commission had on February
19th last with Dr. T. H. Hogg, Chief Hydraulic Engineer of the
Hydro Electric Power Commission of Ontario, at the office of the
Power Authority in New York, as well as the conversations that took
place on January 30th in New York between offlicials of the New York
State Authority and the Ontario Government. The Toronto despatch
also bears out certain remarks Dr. Skelton made to me some days ago
regarding Mr. Hepburn's change in attitude, which he attributed
perhaps more to Mr. Hepburn's desire to be independent of the Beau-
harnois Company than prompted by the more constructive and states-
manlike motive to place the Province of Ontario in a position to meet
the power shortage which those competent to judge felt was bound
to come unless measures were taken along the lines of the St. Lawrence
" Not printed.
'Not found in Department files.

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