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Show COLUMBIA RIVER TREATY 433 entities relating to joint activities under the provisions of Article XIV and Annexes A and B of the Treaty; nor shall it apply to deter- mination of compensation provided for in paragraph A.l(c) and paragraph B.2 of this attachment. "5. If necessary to accomplish the sale of Canada's entitlement to downstream power benefits in accordance with this attachment, the United States entity shall assure unconditionally the delivery to or for the account of the Purchaser, 'by appropriate exchange contracts, of an amount of power agreed between the United States entity and the Purchaser to be the equivalent of the entitlement during the period of the sale. "C. Canada shall designate the British Columbia Hydro and Power Authority as the Canadian entity for the purposes of Article XIV (1) of the Treaty." On September 16,1964, there was an exchange of notes between the Canadian Secretary of State for External Affairs and the United States Ambassador in Ottawa in which certain proposals and under- standings with respect to the disposition of the Canadian entitlement to downstream power benefits in the United States were made and agreed to. As already indicated, the Canadian Government designated the British Columbia Hydro and Power Authority as the Canadian Entity under Article XIV(1) of the Treaty; the United States now designated the Administrator of the Bonneville Power Administra- tion and the Division Engineer, North Pacific Division, Corps of En- gineers, as its Entity.1 The two governments also agreed that the "Cana- dian Entitlement Purchase Agreement," set out below, be authorized "for the purposes of Article VIII (1) of the Treaty as a disposal of the Canadian Entitlement in the United States of America for the period and in accordance with the other terms and provisions" of the agree- ment. In addition, the United States agreed that- "(1) So long as the Canadian Entitlement Exchange Agreements remain in force, the United States Entity will perform all the obliga- tions of the Columbia Storage Power Exchange under the Canadian Entitlement Purchase Agreement other than the obligation to pay the purchase price specified in Section 3 of the Canadian Entitlement Pur- chase Agreement; "(2) In the event the Canadian Entitlement is reduced as a result of a failure on the part of the Canadian Entity to comply with Section 4 of the Canadian Entitlement Purchase Agreement and if the failure results other than from wilful omission by the Canadian Entity to ful- fill its obligations under that agreement, the United States Entity will, without compensation, offset the effect of that failure by adjusting the operation of the portion of the System described in Step I of para- graph 7 of Annex B of the Treaty which is in the United States of America to the extent that the United States Entity can do so without loss of energy or capacity to that portion of the System; and "(3) If the procedure described in paragraph (2) above does not fully offset the effect of the failure, then to the extent the entities 1 This designation was made by the President In Executive Order No. 11177, dated Sep- tember 16, 1964 (29 F.R. 13097). In this same order the President also provided for the designation by the Secretary of the Interior and the Secretary of the Army of one person each as a member of the Permanent Engineering Board established by Article XV of the Treaty, andi, additionally, for the appointment of two alternate United, States members of the Board. These members and alternates compose the United States section, Permanent Engineering Board. |