Kingdom emergency textile requirements, provided that (a) replacements for wool so withdrawn are on the way to the United States and (b) at no time the total of the reserve in the United States is temporarily depleted by more than twenty per cent by such withdrawals. (3) At any time after the signing of a General Armistice between the United Kingdom and Germany, the Government of the United Kingdom shall be at liberty to dispose of the wool remaining in the reserve, but the United States Government and the Government of the United Kingdom shall consult together with a view to ensuring that the disposal of any such wool in the United States shall be effected under conditions which will avoid a dislocation of normal wool marketing there. (4) The wool for the reserve shall be made available by the Government of the United Kingdom f.o.b. at Australian ports, and the United States Government (directly or through an agency acting on its behalf) shall thereafter accept responsibility for the safe custody of the wool and shall pay transport, handling, storage, insurance including war risk, and other charges in connexion with the establishment and maintenance of the wool reserve. Payments shall be made between the United States Government and the Government of the United Kingdom on sale of wool from the reserve to offset any savings secured by the Government of the United Kingdom owing to the wool having been transported to and stored in the United States by the United States Government and any loss incurred by the Government of the United Kingdom by reason of depreciation in the value of the wool stored in the United States as a result of deterioration of the wool or by reason of the position in which the wool is stored in the United States, provided that (a) in the case of sales in the United States no payment shall be made which would reduce the receipts by the Government of the United Kingdom for the wool in question below the amount which would have been received on sale f.o.b. Australia at the same date, and (b) in the case of sales outside the United States any payments as between the two Governments shall not involve the Government of the United Kingdom in any net expenditure of United States dollars in respect thereof. (5) It is tentatively agreed that the 250,000,000 pounds of Australian wool which will be made available by the Government of the United Kingdom for the reserve shall be composed of the following: 270,000 bales of 58/60s of types normally imported into the United States and of good topmaking Bradford styles; 290,000 bales of 60s and finer of types normally imported into the United States and of good topmaking Bradford styles; 190,000 bales of 60s and finer of good to average Bradford styles; balance (to make up 250,000,000 pounds) of 60s and finer of average Bradford styles; two-thirds of all the 60s and finer wools to consist of 64/60s. The counts are as normally understood in the United States. Although this tentative agreement on grades and types is subject to modification following consultation between the two Governments after examination of samples of the wool by the United States authorities, it shall become definitive if the examination of samples indicates that the grades and types of wool included in the above mentioned general categories are such that they could be readily used in American mills without interruption of or delays in the production of the mills. It is understood that the Government of the United Kingdom in estimating the quantities available for the reserve have provided for the retention of sufficient supplies in Australia to ensure that the commercial demand can be met. It is also understood that both the total quantity estimated to be available for the reserve after providing for sales abroad and shipments to the United Kingdom, and the distribution by types and descriptions, have been based upon the results of the 1939-40 clip, and that should the results of the 1940-41 clip differ it may be necessary to vary the supply for the reserve. (6) Space on established British shipping lines running between Australia and the United States shall be used for the transport of the wool so far as available. The wool will be made available in Australia as rapidly as possible, provided that the sale of wool from Australia on commercial account or its shipment to the Wool Control in the United Kingdom or Canada shall not be prejudiced, and every endeavour shall be made to complete the allocations in Australia by the end of March 1941. 2. If the Government of the United States are prepared to accept the foregoing provisions, I have the honour to propose that the present note and your reply to that effect be regarded as constituting an agreement between the two Governments which shall come into force immediately. I have the honour to be, with high consideration, Sir, Your obedient Servant, Mr. HERSCHEL V. JOHNSON, etc., etc., etc. HALIFAX The American Chargé d'Affaires ad interim to the Secretary of State for Foreign Affairs EMBASSY OF THE UNITED STATES OF AMERICA No. 2662 London, December 9, 1940 MY LORD: I have the honor to acknowledge the receipt of your note No. W 11985/ 79/49 of December 9, 1940, in which Your Lordship is good enough to inform me that in order to enable the Government of the United States of America to establish in the United States a reserve of Australian wool against a possible emergency shortage of wool supplies in the United States the Government of the United Kingdom of Great Britain and Northern Ireland is prepared to enter into an agreement with the Government of the United States in the following terms: [For terms of agreement, see paragraphs 1-6 in British note, above.] In reply to numbered paragraph 2 of Your Lordship's note, I have the honor to confirm under instructions of my Government that Your Lordship's statement of our understanding as set forth above is agreed to by my Government and that the present exchange of notes is to be regarded as constituting an agreement between the two Governments which shall come into force immediately. I have the honor to be, with the highest consideration, My Lord, The Right Honorable Viscount HALIFAX, K.G., G.C.S.I., etc., etc., etc., Foreign Office, S.W.1. HERSCHEL V. JOHNSON Chargé d'Affaires ad interim LEASING OF NAVAL AND AIR BASES 1 Agreement, with annexes, exchanges of notes, and protocol relating to defense of Newfoundland, signed at London March 27, 1941, supplementing agreement of September 2, 1940 Entered into force March 27, 1941 Supplemented by agreements of January 18 and February 21, 1946,2 and September 19, 1949 3 Article I revised by agreement of August 13 and October 23, 1947;* articles IV and VI amended by agreement of July 19 and August 1, 1950 5 Superseded in part by agreement of February 10, 1961, with the Federation of the West Indies 55 Stat. 1560; Executive Agreement Series 235 AGREEMENT WHEREAS the Government of the United Kingdom of Great Britain and Northern Ireland, in consultation with the Government of Newfoundland, are desirous at this time of further effectuating the declarations made on their behalf by his Excellency the Most Honourable the Marquess of Lothian, C.H., His Majesty's Ambassador Extraordinary and Plenipotentiary, in his communication of the 2nd September, 1940, to the Secretary of State of the United States of America, a copy of which is set out in Annex I hereto and made a part hereof; AND WHEREAS it is agreed that leases in respect of the naval and air bases to be leased to the United States of America in Newfoundland, Bermuda, Jamaica, St. Lucia, Antigua, Trinidad and British Guiana, respectively, shall forthwith be executed substantially in the forms of the leases set out in Annex 1 For agreements concerning use of certain bases by civil aircraft, see agreements of Feb. 24, 1948 (TIAS 1717), post, p. 850, and Mar. 23 and Apr. 25, 1951 (2 UST 1311; TIAS 2282). II hereto, which are hereby approved, and that a similar lease in respect of a base in the Bahamas shall be executed as soon as possible; AND WHEREAS it is desired to determine by common agreement certain matters relating to the lease of the said bases, as provided in the communication of the 2nd September, 1940, and the reply thereto of the same date from the Honourable Cordell Hull, Secretary of State of the United States, set out in Annex I and made a part hereof; AND WHEREAS it is desired that this Agreement shall be fulfilled in a spirit of good neighbourliness between the Government of the United States of America and the Government of the United Kingdom, and that details of its practical application shall be arranged by friendly co-operation; The Undersigned, duly authorised to that effect, have agreed as follows: ARTICLE I 8 General Description of Rights (1) The United States shall have all the rights, power and authority within the Leased Areas which are necessary for the establishment, use, operation and defence thereof, or appropriate for their control, and all the rights, power and authority within the limits of territorial waters and air spaces adjacent to, or in the vicinity of, the Leased Areas, which are necessary to provide access to and defence of the Leased Areas, or appropriate for control thereof. (2) The said rights, power and authority shall include, inter alia, the right, power and authority: (a) to construct (including dredging and filling), maintain, operate, use, occupy and control the said Bases; (b) to improve and deepen the harbours, channels, entrances and anchorages, and generally to fit the premises for use as naval and air bases; (c) to control, so far as may be required for the efficient operation of the Bases, and within the limits of military necessity, anchorages, moorings and movements of ships and waterborne craft and the anchorages, moorings, landings, take-offs, movements and operations of aircraft; (d) to regulate and control within the Leased Areas all communications within, to and from the areas leased; (e) to install, maintain, use and operate under-sea and other defences, defence devices and controls, including detecting and other similar facilities. 9 (3) In the exercise of the above-mentioned rights, the United States agrees that the powers granted to it outside the Leased Areas will not be used unreasonably or, unless required by military necessity, so as to interfere with the For a revision relating to art. I, see agreement of Aug. 13 and Oct. 23, 1947 (TIAS 1809), post, p. 827. 'For an understanding relating to application of art. I (2)(e) to Bermuda, see annex III, para. (2), p. 591. |