miliarity of each country's defense establishment with that of the 

 other country. 



2. General cooperation and exchange of observers in connection 

 with exercises and with the development and tests of materiel of 

 common interest. 



3. Encouragement of common designs and standards in arms, 

 equipment, organization, methods of training, and new develop- 

 ments. As certain United Kingdom standards have long been in 

 use in Canada, no radical change is contemplated or practicable, 

 and the application of this principle will be gradual. 



4. Mutual and reciprocal availability of military, naval, and air 

 facilities in each country; this principle to be applied as may be 

 agreed in specific instances. Reciprocally each country will con- 

 tinue to provide with a minimum of formality for the transit 

 through its territory and its territorial waters of military aircraft 

 and public vessels of the other country. 



5. As an underlying principle all cooperative arrangements will 

 be without impairment of the control of either country over all 

 activities in its territory. 



While in this, as in many other matters of mutual concern, there 

 is an identity of view and interest between the two countries, the 

 decision of each has been taken independently, in continuation of 

 the practice developed since the establishment of the Joint Defense 

 Board in 1940. No treaty, executive agreement, or contractual 

 obligations has been entered into. Each country will determine 

 the extent of its practical collaboration in respect of each and all 

 of the foregoing principles. Either country may at any time dis- 

 continue collaboration on any or all of them. Neither country will 

 take any action inconsistent with the Charter of the United Na- 

 tions. The Charter remains the cornerstone of the foreign policy 

 of each. 



AGREEMENT WITH ICELAND 



On 11 July 1941, the United States entered into an agreement 

 with Iceland to station American troops on the island. These 

 troops were withdrawn after the defense agreement was termin- 

 ated in October, 1946. 



A new agreement was signed on 7 October 1946, under which 

 provision was made for interim use of Keflavik airport. The 

 agreement "shall continue in effect until the obligation of the 

 Government of the United States to maintain control of agencies 



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