Ed M. answered 04/12/16
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If you're asking whether this statement is true or false, I believe it is not a true statement because the Rush-Bagot Pact was principally about limiting U.S. and British naval operations on the Great Lakes; see https://history.state.gov/milestones/1801-1829/rush-bagot.
Also, technically Canada did not yet exist as a separate nation when the pact was concluded in 1817; what is now Canada was still British territory at the time, but a mostly definite border already existed between a large portion of the British territory and that of the United States. That is, the wording established the border in your statement could imply that no border had previously existed before this agreement or that the border between the settled regions of both sides was largely in dispute, which would not have been the case at this time.