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Exchange of Notes between the Government of Canada and the Government of the United States of America relating to the Agreement of March 9, 1959 concerning the Tariff of Tolls on the St. Lawrence Seaway [1964] CATSer 10 (1 July 1964)

E100432 - CTS 1964 No. 13

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA RELATING TO THE AGREEMENT OF MARCH 9, 1959 CONCERNING THE TARIFF OF TOLLS ON THE ST. LAWRENCE SEAWAY

I

The Secretary of State for External Affairs to the Ambassador of the United States of America to Canada

DEPARTMENT OF EXTERNAL AFFAIRS

No. 101

The Secretary of State for External Affairs presents his compliments to the Ambassador of the United States of America and has the honour to refer to an exchange of notes dated March 9, 1959, which made binding from April 1, 1959, a memorandum of agreement dated January 29, 1959, between the St. Lawrence Seaway Authority and the Saint Lawrence Seaway Development Corporation respecting the Saint Lawrence Seaway tariff of tolls. On May 28, 1964, the Authority and the Corporation signed a memorandum of agreement supplementary to their agreement of January, 1959. The Secretary of State for External Affairs has the honour to inform the Ambassador that the memorandum of supplementary agreement, a copy of which is attached and is incorporated in this note, has been confirmed by the Canadian Government.

Therefore, in accordance with the supplementary agreement, the Secretary of State for External Affairs has the honour to propose that Clause 7 of the agreement of January, 1959, be deleted and the following substituted therefor:

"7. That the Authority and the Corporation, having caused the tariff to be reviewed, shall, not later than July 1, 1966, report to their respective Governments as to the sufficiency of the authorized tolls to meet the statutory requirements, recommending a level of tolls related as realistically as possible to these requirements."

If the United States Government approves, it is suggested that this note and the Ambassador's reply shall constitute an agreement between the two Governments giving effect to the foregoing proposal from July 1, 1964.

P. M.

OTTAWA, 30 June, 1964

ANNEX

MEMORANDUM OF SUPPLEMENTARY AGREEMENT made this 28^th day of May, one thousand nine hundred and sixty-four. Between: the St. Lawrence Seaway Authority, (hereinafter referred to as "the Authority"), and the St. Lawrence Seaway Development Corporation, (hereinafter referred to as "the Corporation").

Whereas Clause 7 of the Memorandum of Agreement made on the 29th day of January, 1959, between the Authority and the Corporation respecting The St. Lawrence Seaway Tariff of Tolls provides "that the Authority and the Corporation shall, after five complete seasons of navigation have elapsed, and not later than July 1, 1964, report to their respective Governments as to the sufficiency of the authorized tolls to meet the statutory requirements, and to cause the Tariff to be reviewed accordingly";

And whereas the Authority and the Corporation in conducting a joint review of the sufficiency of the tolls are prepared to agree that:

(a) The report by the Entities will be deferred from July 1, 1964 to July 1, 1966, and the developmental period of the Seaway will thereby be extended by two years and shall be deemed to terminate at the end of the 1966 navigation season. Accordingly no change in tolls will be proposed at the present time.

(b) The joint review will be continued and at the conclusion of this two-year extension, tolls proposals will be related as realistically as possible to the financial requirements of the Seaway Entities.

Now therefore this Memorandum of Supplementary Agreement witnesseth that the parties hereto agree to recommend to their respective Governments that Clause 7 of the 1959 Agreement respecting tolls be deleted and the following substituted therefor:

7. That the Authority and the Corporation, having caused the Tariff to be reviewed, shall, not later than July 1, 1966, report to their respective Governments as to the sufficiency of the authorized tolls to meet the statutory requirements, recommending a level of tolls related as realistically as possible to these requirements.

R. J. Rankin, President

THE ST. LAWRENCE SEAWAY AUTHORITY

J. H. McCann, Administrator

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

II

The Ambassador of the United States of America to Canada to the Secretary of State for External Affairs

EMBASSY OF THE UNITED STATES OF AMERICA

No. 387

The Ambassador of the United States of America presents his compliments to the Secretary of State for External Affairs and has the honor to refer to his Note No. 101 of June 30, 1964, proposing that Clause 7 of the Agreement between the St. Lawrence Seaway Development Corporation and the St. Lawrence Seaway Authority dated January 29, 1959, be deleted and replaced with the provision contained in the Agreement of May 28, 1964 between the entities which is quoted to his note.

The terms and conditions set forth in the above-mentioned note and the attached Memorandum of Supplementary Agreement are acceptable to the Government of the United States, which concurs in the proposal that the note of the Secretary of State for External Affairs and this reply shall constitute an agreement between the United States and Canadian Governments giving effect to the joint proposal of the Corporation and the Authority from July 1, 1964.

W. W. B.

OTTAWA, 30 June, 1964