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Exchange of Notes between the Government of Canada and the Government of the United States of America concerning Tolls on the St. Lawrence Seaway and the Application of a Lockage Fee on the Welland Canal [1967] CATSer 1 (31 March 1967)

E100440 - CTS 1967 No. 2

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONCERNING TOLLS ON THE ST. LAWRENCE SEAWAY AND THE APPLICATION OF A LOCKAGE FEE ON THE WELLAND CANAL

I

The Secretary of State for External Affairs to the Chargé d’Affaires a.i. of the United States Embassy in Canada

DEPARTMENT OF EXTERNAL AFFAIRS

OTTAWA, March 31, 1967

No. X - 124

Chargé d’Affaires, a.i.
Embassy of the United States of America
Ottawa

Sir:

I have the honour to refer to the Agreement between the Government of the United States of America and the Government of Canada dated March 9, 1959 which incorporated the Memorandum of Agreement and Tariff of Tolls respecting the St. Lawrence Seaway as amended by the Agreement of June 30, 1964.

Pursuant to these Agreements, consultations have taken place between the Government of the United States and the Government of Canada respecting the arrangement governing tolls for the St. Lawrence Seaway. As a result of these consultations, the Canadian Government understands that the United States Government is not prepared to accept at the present time an increase in the level of tolls for the Montreal / Lake Ontario section of the Seaway. The Canadian Government is therefore prepared to agree (a) to the continuance of the existing schedule of tolls for the Montreal / Lake Ontario section; (b) that the division of tolls derived from the operation of the Montreal / Lake Ontario section shall be seventy-three percent in Canadian dollars to the Authority and twenty-seven percent in United States dollars to the Corporation; (c) that the sufficiency and division of tolls may, at the request of the Seaway Authority or the Seaway Development Corporation, be reviewed with a view to any necessary adjustment at the expiry of the 1970 navigation season, in accordance with the provisions of the 1959 Agreement, as amended, and (d) that all vessels shall have the option to calculate gross registered tons according to the prescribed rules for measurement in either Canada or the United States.

I would also refer to a decision of the Canadian Government to impose a lockage fee on the Welland Canal. As a result of the consultations referred to in the immediately preceding paragraph, the Canadian Government understands that although the United States Government does not concur with that decision, it is prepared to agree that the Tariff of Tolls annexed to the Agreement of March 9, 1959 be amended to include the lockage fee described in the appendix to this Note. It is understood that the suspension of the toll levy on the Welland Canal provided for in the Agreement of July 13, l962 and continued by the Agreement of March, 31, 1964 will continue through the 1971 navigation season.

If the United States Government concurs, it is proposed that this Note and your reply shall constitute an Agreement between the two Governments, amending the Agreement of March 9, 1959, as amended.

Accept, Sir, the assurances of my highest consideration.

Robert H. Winters

for Secretary of State for External Affairs

APPENDIX

For transit Lake Ontario to or from Lake Erie:

(a) Complete Transit

A lockage charge, per lock, which may be shared by cargo or passenger vessels in tandem and is subject to a fifty percent reduction for cargo vessels in ballast:

(b) Partial Transit

Between Lake Ontario and Lake Erie, in either direction, fifty percent of the net lockage charge, per lock, calculated in accordance with subsection (a), for cargo or passenger vessels which take on or discharge their entire load of cargo or passengers between Locks 1 and 8 of the Welland Canal, with a charge of $3.00 per lock for pleasure craft transits and $5.00 per lock for the transit of other vessels.

(c) Minimum Charges

Fifty percent reductions for cargo or passenger vessels in tandem in ballast and making partial transits apply to amount otherwise remaining due. Minimum payment for cargo or passenger vessels would be twelve and one half percent, per lock, which would apply to a vessel making a partial transit in ballast and in tandem.

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The Chargé d’Affaires, a.i. of the United States Embassy in Canada to the Secretary of State for External Affairs

EMBASSY OF THE UNITED STATES OF AMERICA

OTTAWA, March 31, 1967

No. 240

The Honorable Paul Martin
Secretary of State for External Affairs
Ottawa

Sir:

I have the honor to refer to your Note No. X-124 of March 31, 1967, proposing an agreement on certain arrangements concerning the St. Lawrence Seaway.

The terms and arrangements set forth in that Note are acceptable to the Government of the United States, which concurs in the proposal that your Note and this reply shall constitute an agreement between the Canadian and United States Governments amending the Agreement of March 9, 1959, as amended.

Accept, Sir, the renewed assurances of my highest consideration.

Joseph W. Scott

Charge d’Affaires ad interim