Order In Council PC2508-1941 : Lease arrangement with Alberta

2313

TO HIS EXCELLENCY

Major-General the Right Honourable the Earl of Athlone, Knight of the Most Noble Order of the Garter, a Member of His Majesty’s Most Honourable Privy Council, Knight Grand Cross of the Most Honourable Order of the Bath, Grand Master of the Most Distinguished Order of Saint Michael and Saint George, Knight Grand Cross of the Royal Victorian Order, Companion of the Distinguished Service Order, one of His Majesty’s Personal Aides-de-Camp.

GOVERNOR GENERAL AND COMMANDER IN CHIEF OF THE DOMINION OF CANADA

——————

Report of a Committee of the Privy Council ON MATTERS OF STATE.

PRESENT

The HONOURABLE

T. A. CRERAR

THE RIGHT HONOURABLE

E. LAPOINTE

THE HONOURABLE

J. L. RALSTON

C. G. POWER

J. L. ILSLEY

C. D. HOWE

A. L. MACDONALD

May it please Your Excellency

The Committee of the Privy Council have had before them a report, dated 4th April, 1941, from the Minister of National Defence, submitting as follows:—

A formal request was recently received from the United Kingdom Government with regard to the establishment in Canada of a full-scale Experimental Station for defensive measures against Gas and Chemical Warfare, to be financed and operated jointly by Canada and the United Kingdom on the basis that both capital and maintenance costs would be shared equally by the two Governments.

A survey of possible sites for such a station has been carried out in Western Canada, and a satisfactory area has been found in the vicinity of Medicine Hat, Alberta, known as the Tilley East Area.

This area comprises about 700,000 acres, of which 600,000 acres is Provincial Crown Land and 100,000 acres is patented lands, partly settled. The Province has also granted grazing and cultivation leases on about 158,000 acres of the Provincial lands.

To make the area available for use as an Experimental Station, it will be necessary to remove all the present settlers and to cancel all existing leases.

The Province of Alberta has offered to acquire all the patented lands, to remove all settlers to new locations, to cancel all leases, and to carry out all necessary negotiations, surveys and other legal procedures, and to give to the Government of Canada a 99-year lease on the entire area of about 700,000 acres, in consideration of a payment by the Dominion to the Province of $600,000.00 which is the actual cost, as estimated by the Province, of carrying out the above procedure. The Province undertakes to make the whole area available in a period of three months.

This proposal has been carefully examined by the Quartermaster-General and by the Real Estate Adviser of the Department of National Defence, who have compared it with the alternative of direct acquisition of the patented lands by the Dominion, involving arrangements for rehabilitation of settlers, cancellation of Provincial leases, surveys and other legal procedures all to be carried out by agents of the Dominion Government. They are of the opinion that the cost of these operations would certainly be more than $600,000.00, and would require a minimum of six months to complete. They have therefore, after consultation with Mr. E. L. Davies, a representative of the Director of Scientific Research under the Ministry of Supply of United Kingdom Government, reported in favour of acceptance of the offer of the Province of Alberta. While it is not yet possible to make any accurate estimates of the total cost of the project, it has been roughly calculated that approximately $800,000.00 will be required, in addition to the cost of acquisition of the land, for the provision of buildings and services. To this will have to be added the cost of a landing field for aircraft, if it should be decided that this is necessary.

Although the details as to the financial arrangements between the Canadian and United Kingdom Governments have not yet been fully worked out, the intention is that the Base should be in operation, if at all possible, during the coming Summer. To this end, it is necessary that the property should be made available at the earliest possible date.

The Minister, on the advice of the Acting Deputy Minister of National Defence (Army) therefore recommends that authority be granted for the payment to the Province of Alberta of a sum of $600,000.00 for which the Province will grant to the Department of National Defence a 99 year lease, at an annual rental of one dollar, of the lands known as the Tilley East Area, comprising about 700,000 acres; funds for the above purpose to be made available for the time being from Army and Air Service appropriations, in proportions to be decided between the Ministers of the two services; this provision to be subject however to readjustment in the light of experience which may be gained regarding the relative degrees of use and benefit which the respective Defence Services may receive from the Establishment hereby authorized.

The Committee concur in the foregoing recommendation and submit the same for approval.

DEPUTY GOVERNOR GENERAL
9.IV.41

All of which is respectfully submitted,

President.

PRIVY COUNCIL CHAMBER

Ottawa, 9th April 1941

MINUTES PAGE
2508 1.

CLERK OF THE PRIVY COUNCIL APR 10 1941