Port Aux Basque, Nfld

LORAN Stations in Newfoundland

1. The United States Coast Guard now operates three Loran stations in Newfound­land at Bona Vista, Battle Harbour and Port aux Basques. They are linked with other Loran stations in Nova Scotia operated by the Department of Transport and with Loran stations in the United States.

2. In April, 1945, the United States, through the Permanent Joint Board on Defence, first suggested the transfer of the Newfoundland stations to the appropriate Canadian authorities. In view of the fact that the United Kingdom was then actively considering an alternative to Loran, and since Newfoundland was not then part of Canada, the Canadian Government decided not to take over the stations at that time. The United States continued to express a desire to give up its responsibil­ities, and in September, 1950, raised the question again through diplomatic chan­nels. In the absence of a Canadian reply, the US authorities placed the subject on the agenda of the PJBD in January, 1951, and sent a further note in February, 1951. No direct reply has been given by the Canadian Government, although the Canadian Section of the PJBD said that it would see whether the Department of Trans­port would be in a position to assume responsibility for the operation of the stations by the end of 1951.

3. The United States had offered to turn over the stations to Canada free of charge, but Canada would be obliged to pay the maintenance costs, which are estimated at $165,000.00 a year. Should the Canadian Government decide at any time to discontinue operation of the stations, the United States has requested the right to resume operations. No accurate record of the value of the buildings and capital equipment is available, but a rough estimate of $1,000,000 has been made. The stations are believed to be in good condition, but housing is of the barrack type. The Department of Transport estimates that approximately $100,000 would be needed to provide further accommodation and alterations. The chief use of the sta­tions is as an aid to civil air and marine navigation; they are of military importance mainly in wartime. The Royal Canadian Navy anticipates that Loran will continue to be used for an indefinite period, but the RCAF is of the opinion that within a few years Loran will be superseded for military air navigation.

4. The possible transfer of the Loran stations has been discussed by officials of the Departments of Transport, National Defence and External Affairs, and differing opinions have emerged. The Department of Transport has pointed out that these stations are not military installations and therefore do not fall within the general Canadian policy regarding the assumption of responsibility for defence installations on Canadian soil. In the event of a decision to take over the stations from the US Coast Guard, the Department of Transport anticipates difficulties in securing per­sonnel. For this reason it would not be possible to take over the stations by the end of 1951, and probably a full year would be required from the time the decision was taken.

5. The Department of Transport has also suggested that owing to Canada's geo­graphic position, the air navigation facilities which Canada operates as aids to trans-Atlantic flying are disproportionately extensive in relation to the number of Canadian aircraft making use of them. In addition, Canada contributes through the International Civil Aviation Organization about $114,000 a year for the support of Loran stations in Iceland and the Faroes as well as for other facilities. Cabinet accepted this assessment in April, 1949, on a temporary basis on condition that a survey should be made by ICAO of the total contribution of each country, includ­ing the facilities operated by each. The present financial support is arranged through a separate multilateral agreement in respect of each particular facility. The Department of Transport has pointed out that the prospects of securing reimburse­ment through ICAO for the three Newfoundland Loran stations would be much better if they were not taken over until the proposed survey had been carried out. The present agreements contain no provision for payments to Canada even if the survey should indicate a credit balance in favour of Canada.

6. The Department of National Defence and the Department of External Affairs, on the other hand, believe that, although Loran stations are not military in a strict sense, the continued presence of US installations of this nature on Canadian soil does not accord with Government policy. In practice the Canadian authorities have little control over the activities of the US employees operating the stations in these relatively unsettled areas. Canadian refusal to accept responsibility for the three installations which the United States wishes to turn over might prejudice the Cana­dian position in future cases when Canada might be pressing the United States to relinquish an installation on Canadian soil.

7. Although Canadian contributions to navigational aids under ICAO may be excessive, in the view of the Departments of National Defence and External Affairs it is necessary to give an answer to the US Government without awaiting the com­pletion of the survey of navigational aids in the Atlantic.

8. It is therefore requested that Cabinet decide whether or not the Canadian Gov­ernment accedes to the US request concerning transfer of the Loran stations in Newfoundland.