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Exchange of Notes between the Government of Canada and the Government of the United States of America constituting an Agreement amending the Agreement concerning the Application of Tolls on the St-Lawrence Seaway [1985] CATSer 10 (3 May 1985)

E100442 - CTS 1985 No. 24

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE UNITED STATES OF AMERICA CONSTITUTING AN AGREEMENT AMENDING THE AGREEMENT CONCERNING THE APPLICATION OF TOLLS FOR THE ST-LAWRENCE SEAWAY (with Memorandum of Agreement)

I

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

WASHINGTON, May 3, 1985

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.

The discussions resulted, on December 24, 1984, at Ottawa, in the signature by the Administrator of the Saint Lawrence Seaway Development Corporation and the President of the St. Lawrence Seaway Authority of the enclosed 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, l972, l978 , 1982 and 1984. The amendment deals with a revised division of the tolls between the Seaway entities in order to recognize their respective financial requirements. The amendment also brings about administrative changes in the implementation of the St. Lawrence Seaway Tariff of Tolls.

I have the honor to propose that, for calendar year 1985, the tolls collected pursuant to the St. Lawrence Seaway Tariff of Tolls, for the section between Montreal and Lake Ontario, be paid 73 percent in Canadian dollars and 27 percent in United States dollars and that the administrative changes to the St. Lawrence Seaway Tariff of Tolls contained in the enclosed Memorandum of Agreement to be implemented.

I have the further honor to propose that this Note and the enclosed 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, which shall enter into force on the date of your reply.

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

James N. Medas

For the Acting Secretary of State

II

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

WASHINGTON, 3 May 1985

No. 272

The Honourable George Shultz,
Secretary of State
Washington, D.C.

Mr. Secretary,

I have the honour to refer to your Note of May 3, 1985 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 division of toll revenue between the Saint Lawrence Seaway Development Corporation in the United States and the St. Lawrence Seaway Authority in Canada and the implementation of administrative changes in the St. Lawrence Seaway Tariff of Tolls, and further to the signature by the two Seaway entities of the Memorandum of Agreement enclosed with 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 enclosed 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.

Jacques S. Roy

For the Ambassador

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, in order to recognize the financial requirements of the two entities and to bring about administrative changes in the implementation of the St. Lawrence Seaway Tariff of Tolls, have agreed to recommend to their respective governments the following amendments to the Agreement:

1. That paragraph 2 of the Agreement, including the subsequent modifications of the division of tolls derived from the operation of that portion of the St. Lawrence Seaway situated between Montreal and Lake Ontario be deleted and the following be substituted therefor:

2. That the division of the tolls derived from the operation of that portion of the St. Lawrence Seaway situated between Montreal and Lake Ontario shall, for calendar year 1985, be 73 percent in Canadian dollars, to the Authority and 27 percent in United States dollars, to the Corporation. Provided, however, that these percentages may be adjusted from time to time.

2. That the definition of "Feed grains" in paragraph 2(g) of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

(g) "Feed grains" means barley, corn, oats, flaxseed, rapeseed, soybeans and other field crop seeds, grain screenings, and mill feed containing not more than 35% of ingredients other than grain or grain products.

3. That paragraph 3 of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

TOLLS

3. (1) The tolls shall be as set forth in the Schedule hereto, and the toll level reached in 1983 shall remain in effect thereafter until modified.

(2) The tolls under this tariff are due from the representative of each vessel as soon as they are incurred and payment shall be made within thirty days of the vessel's entry into the Seaway.

(3) The tolls for the section between Montreal and Lake Ontario shall be paid 73 percent in Canadian dollars and 27 percent in United States dollars. Payments for transit through locks in Canada only shall be in Canadian dollars, and payments for transit through locks in the United States only shall be in United States dollars.

(4) The tolls for transit of the Welland Canal shall be paid in Canadian dollars and shall accrue to the Authority.

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

EXECUTED at Ottawa this 24th day of December 1984.

President of The St. Lawrence Seaway Authority

Administrator of the Saint Lawrence Seaway Development Corporation