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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 176

last spring, admitted that Ontario would need the power, particularly
when it was borne in mind that it would probably be close to seven
years after work was started before the power would be available.
(The Department will recollect that Dr. Skelton told me early last
spring that in talks with Mr. McQuesten, Minister of Roads and
Highways in Mr. Hepburn's Cabinet, and with Mr. Roebuck, formerly
Attorney General of Ontario, both of these officials had finally rallied
to the viewpoint that Ontario faced a power shortage and that the St.
Lawrence development would probably be the best way ultimately of
meeting it, particularly since, if the increase in demand for power
continued as at present, at the end of seven years even the reserve
powers available from the private companies would not prove sufficient
-to meet the needs of the Province.)
  In conclusion, Mr. King told me that he planned to see Dr. Skel-
ton as soon as possible and that he thought that it would be best to have
another talk with me after his talk with Dr. Skelton before taking up
the matter with Mr. Hepburn or the Ontario authorities.
  Respectfully yours,                           NORMAN ARMOUR
711.42157SA29/1484: Telegram
    The Mini&ter in Canada (Armour) to the Secretary of State
                               OTrAWA, November 27,1937-6 p. m.
                                            [Received 9: 34 p. m.]
  125. The Prime Minister informs me he received a letter this morn-
mg from Hepburn in which the latter reaffirms his opposition to the
St. Lawrence project. He bases his opposition on competition with the
railways whose earnings are already insufficient, and the fact that the
power from this source will not be required: that he has other sources
-from which to meet increasing demands. Hepburn said that in the
meantime, however, he had no objection to having the Dominion and
Provincial experts meet to talk over the power situation as suggested
by Mr. King. Hepburn is coming to Ottawa November 29 to see King
on other matters, and the latter informs me he may have something
more to report after this talk.
  The Prime Minister said Hepburn's letter also stated that he is in
negotiation with Beauharnois and hopes for a favorable settlement
shortly.'8 King said that while Hepburn may be over-optimistic, the
latter undoubtedly feels that if successful this will give him all the
power he requires to meet present or future efflux.
 s In telegram No. 128, December 11, 1937, noon, the Minister in Canada reported
 that a new contract between the Ontario Hydro Electric Power Commission
 the Beauharnois Co. had been signed (842.6463/258).

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