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Exchange of Notes (November 13 and 16, 1984) between the Government of Canada and the Government of the United States of America constituting an Agreement concerning the St. Lawrence Seaway Tariff of Tolls [1984] CATSer 35 (16 November 1984)

E103582 - CTS 1984 No. 44

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT CONCERNING THE ST-LAWRENCE SEAWAY TARIFF OF TOLLS (WITH MEMORANDUM OF AGREEMENT)

I

The Secretary of State of the United States to the Ambassador of Canada

DEPARTMENT OF STATE

WASHINGTON, November 13, 1984

His Excellency Allan E. Gotlieb,
Ambassador of Canada

Excellency:

I have the honor to refer to the discussions which have taken place between officials of the St. Lawrence Seaway Authority of Canada and the Saint Lawrence Seaway Development Corporation of the United States regarding the amendment of the Memorandum of Agreement between the parties dated January 29, 1959 and referred to as the St. Lawrence Seaway Tariff of Tolls.

These discussions resulted, on July 9, 1984, at Ottawa, Ontario, Canada, in the signature by the Administrator of the St. Lawrence Seaway Development Corporation and the President of the St. Lawrence Seaway Authority of the attached Memorandum of Agreement. The Memorandum of Agreement sets forth an amendment to be incorporated into the Tariff of Tolls of the St. Lawrence Seaway Memorandum of Agreement of January 29, 1959, which was annexed to the Exchange of Notes between our two Governments of March 9, 1959 and amended in 1964, 1967, 1972, 1978, 1980, and 1982. The amendment deals with the operational surcharges which are designed for use by the respective Seaway entities in order to encourage the orderly and timely exit of vessels prior to the close of the navigation season.

I have the honor to propose that the operational surcharges be described as maximum amounts under the Tariff in order to allow the respective Seaway entities to implement the surcharges gradually within periods of twenty-four hours in accordance with operational conditions.

I have the further honor to propose that this Note and the attached Memorandum of Agreement, if such meets with the approval of your Government, together with your Note in reply indicating such concurrence, shall constitute an Agreement between our two Governments effective on the date of your reply.

Upon entry into force, this Agreement shall amend and supplement the Agreement governing tolls on the St. Lawrence effected by the exchange of Notes of March 9, 1959, as previously amended.

For the Secretary of State:

Richard Burt

MEMORANDUM OF AGREEMENT between The St. Lawrence Seaway Authority, hereinafter referred to as “Authority” and the Saint Lawrence Seaway Development Corporation, hereinafter referred to as “Corporation”, respecting the Memorandum of Agreement between the parties dated January 29, 1959, as amended, hereinafter referred to as the “Agreement” and the St. Lawrence Seaway Tariff of Tolls.

The Authority and the Corporation, recognizing the importance of preventing vessel traffic congestion during the closing of the navigation season on the Montreal-Lake Ontario section of the Seaway and understanding the need for an equitable implementation of operational surcharges levied pursuant to the St. Lawrence Seaway Tariff of Tolls, have agreed to recommend to their respective governments that the said Tariff of Tolls be amended in order that the operational surcharges designed to encourage the timely and orderly exit of vessels prior to the close of navigation be described as maximum amounts payable under the existing Agreement and Tariff of Tolls, thus allowing the Authority and the Corporation to implement the said surcharges on a gradual basis within periods of twenty-four hours according to operational conditions.

This is to be accomplished by the addition of the following modification to the Agreement:

1. That paragraph 6 of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

Post-Clearance Date Operational Surcharges

6. If the Authority and the Corporation so determine, they may establish a clearance date for the transit of the Montreal-Lake Ontario section. Each vessel which does not comply with the conditions announced by the Authority and the Corporation in establishing the clearance date may be required to pay in dollars an amount not exceeding the operational Surcharge set forth below:

(a) Vessels reporting during the 24 hour period immediately following the clearance date: 20,000.00

(b) Vessels reporting more than 24 hours late, but less than 48 hours after the clearance date: 40,000.00

(b) Vessels reporting more than 48 hours late, but less than 72 hours after the clearance date: 60,000.00

(c) Vessels reporting more than 72 hours late, but less than 96 hours after the clearance date: 80,000.00

The, operational surcharge assessed vessels already at a port, dock or wharf within the St. Lambert-Iroquois Lock segment of the Montreal-Lake Ontario section at the clearance date shall be $20,000 less than the amount otherwise applicable.

Each vessel which reports more than 96 hours after the clearance date may transit only if a prior written agreement authorizing such transit has been entered into among the owner or agent of the vessel and the Authority and the Corporation. Such agree­ment may provide for additional operational surcharges.

Assessed operational surcharges will be prorated on a per lock basis. Surcharges representing transit through United States locks will be for the account of the Corporation and payable in United States funds and surcharges representing transit through Canadian locks will be for the account of the Authority and will be payable in Canadian funds.

2. That the terms and conditions of the Agreement, except as herein modified shall continue to remain in full force and effect.

William A. O'Neil, President

THE ST. LAWRENCE SEAWAY AUTHORITY

James L. Emery, Administrator

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Executed at the City of Ottawa This 9^th day of July, 1984.

II

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

CANADIAN EMBASSY

WASHINGTON, D.C. November 16, 1984

No. 645

The Honourable George P. Shultz
Secretary of State of the United States of America

Dear Mr. Secretary:

I have the honour to refer to your Note of November 13, 1984, which refers to the conclusion of discussions between officials of our two Governments concerning the amendment of the St. Lawrence Seaway Tariff of Tolls in connection with the gradual implementation of operational surcharges at the closing of the navigation season of the St. Lawrence Seaway, under the jurisdiction of the St. Lawrence Seaway Authority in Canada and the Saint Lawrence Seaway Development Corporation in the United States, and to the signature by the two Seaway entities of the Memorandum of Agreement attached to your Note.

I have the further honour to inform you that these proposals are acceptable to the Government of Canada and to confirm that your Note, together with the attached Memorandum of Agreement, and this reply, which is authentic in English and French, shall constitute an Agreement between our two Governments which shall enter into force on the date of this Note.

Accept, Mr. Secretary, the renewed assurances of my highest consideration.

Allan Gotlieb

Ambassador