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Exchange of Notes (April 9 and 11, 1986) 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 [1986] CATSer 13 (11 April 1986)

E103583 - CTS 1986 No. 35

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

I

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

WASHINGTON, April 9, 1986

Note No. 132

The Honourable George Shultz,
Secretary of State,
Washington

Mr. Secretary:

I have the honour 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 the annexed St. Lawrence Seaway Tariff of Tolls, which was annexed to the Exchange of Notes between our two Governments of March 9, 1959, and amended in 1964, 1967, 1972, 1978, 1980, 1982, 1984 and 1985.

The discussions resulted in the signature by the Administrator of the Saint Lawrence Seaway Development Corporation (February 21, 1986, at Washington) and the President of The St. Lawrence Seaway Authority (October 31, 1985 at Ottawa) of the enclosed Memorandum of Agreement. This Memorandum of Agreement sets forth an amendment which deals with the division of tolls between the Seaway entities and an adjustment of the commodity and vessel charges for the Welland Canal section of the St. Lawrence Seaway.

I have the honour to propose that, for calendar year 1986, the tolls collected pursuant to the St. Lawrence Seaway Tariff of Tolls, for the section between Montreal and Lake Ontario, continue to be paid 73 per cent in Canadian dollars and 27 per cent in United States dollars and that the commodity and vessel charges for the Welland Canal be modified as set forth in the enclosed Memorandum of Agreement.

I have the further honour to propose that this Note, which is authentic in English and French, 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.

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

Allan Gotlieb

Ambassador

MEMORANDUM OF AGREEMENT

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 financial requirements of the two entities, 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 1986, 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 Schedule to the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

3. THAT the terms and conditions of the Agreement as previously amended, except as herein modified, shall continue to remain in full force and effect.

II

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

WASHINGTON, April 11, 1986

His Excellency Allan E. Gotlieb,
Ambassador of Canada

Excellency:

I have the honor to refer to your Note 132, dated April 9, 1986, which refers to the conclusion of discussions between officials of our two Governments concerning 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 modification of the commodity and vessel charges for the Welland Canal, and further to the signature by the two Seaway entities of the Memorandum of Agreement enclosed with your Note.

I have the further honor to inform you that these proposals are acceptable to the Government of the United States and to confirm that your Note, together with the enclosed Memorandum of Agreement, and this reply shall constitute an Agreement between the two Governments which shall enter into force on the date of this Note.

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

James M. Medas

For the Secretary of State