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subject of inquiry and recommendation by the International Joint 

 Commission. In the turn which the proceeding actually took, the 

 United States Government became in effect the real party; the case 

 became in substance a United States Government matter. Such a 

 case might properly have been referred to the International Joint 

 Commission for inquiry and report under Article IX of the Treaty 

 of January 11, 1909; for it is under this Article that governmental 

 matters or projects should be submitted to and considered by the 

 Commission. It need only be added here that the Government of 

 Canada was prepared from the beginning to entertain such a course 

 and to assist in every possible way in carrying it out. 



3. As already intimated, the Canadian Government is not 

 unmindful of the considerations of urgency advanced in this matter 

 on behalf of the Government of the United States; it is not only 

 ready, but is very anxious to do everything in its power to promote 

 in every sphere of endeavour the most effective and harmonious 

 co-operation in the prosecution of the war, in which the two Govern- 

 ments are associated under common ideals against a common foe. 



4. For this great purpose the Canadian Government recognizes 

 that, in view of the near approach of the winter season, it is highly 

 desirable that a speedy conclusion should be reached upon the 

 question of the necessity for the construction of the proposed works 

 in the South Sault channel. To this end the Canadian Government 

 would suggest that the whole matter should be withdrawn from the 

 purview of the International Joint Commission and be made imme- 

 diately the subject of diplomatic negotiation between the two Govern- 

 ments. This suggestion is advanced in the belief not only that it 

 will, if accepted, conduce to a speedy conclusion of the matter, but 

 that it is more appropriate that all proposed measures of co-operation 

 in respect of the war should be discussed in this manner rather than 

 through the medium of the International Joint Commission. In the 

 view of the Canadian Government it was never contemplated that the 

 machinery of this Commission should be used for the settlement of 

 such unusual executive measures as present themselves to the two 

 Governments in the extraordinary emergency that confronts them 

 to-day; rather the Commission was designed to promote, for perman- 

 ent and comprehensive application, the establishment of a system 

 of principles under which a great natural highway, common to the 

 two countries, might be wisely and deliberately developed for the 

 common benefit. The circumstances in which the present matter 

 has been brought forward and heard need only be recalled to show 

 how little calculated they are to afford to the Commission the oppor- 

 tunity for careful and fully informed consideration that is so essential 

 to the fulfilment of the Commission's real purpose. 



5. If, therefore, the United States Government still considers 

 that the proposed works ought to be constructed as a war measure, 

 the Government of Canada is prepared to enter into immediate 

 discussion upon the matter, and to that end it would propose the 

 following as a basis: — 



(a) If the Government of the United States is satisfied 

 that, unless the proposed works are constructed in the South 



