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Exchange of Notes constituting an Agreement between the Government of Canada and the Government of the United States of America amending the Agreement concerning the Application of Tolls for the St-Lawrence Seaway [1989] CATSer 17 (1 August 1989)

E100476 - CTS 1989 No. 19

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA AMENDING THE AGREEMENT CONCERNING THE APPLICATION OF TOLLS FOR THE ST-LAWRENCE SEAWAY

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

CANADIAN EMBASSY

WASHINGTON, D.C., March 30, 1989

No. 125

The Honourable James Baker
Secretary of State
Washington, D.C. 20520

Mr. Secretary:

I have the honour to refer to the discussions which have taken place between officials of the Saint Lawrence Seaway Development Corporation of the United States and The St. Lawrence Seaway Authority of Canada 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, 1985, 1986, 1987 and 1988.

The discussions resulted, on December 15, 1988, at Washington, D.C., in the signature by the Administrator of the Saint Lawrence Seaway Development Corporation of the enclosed Memorandum of Agreement and on December 13, 1988, at Ottawa, in the signature of the President of The St. Lawrence Seaway Authority of the said enclosed Memorandum of Agreement. This Memorandum of Agreement sets forth amendments which deal with the schedule of tolls, the division of tolls between the Seaway entities and definitions found in the Tariff of Tolls.

I have the honour to propose that, for calendar years 1989 and 1990, the rates for the tolls collected pursuant to the St. Lawrence Seaway Tariff of Tolls be as indicated in the enclosed Memorandum of Agreement, that the tolls collected for the section between Montreal and Lake Ontario be paid 75 percent in Canadian dollars and 25 percent in United States dollars and that the definitions found in the Tariff of Tolls be revised as mentioned 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.

Yours sincerely,

Derek H. Burney

Ambassador

Enclosure
Memorandum of Agreement

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 years 1989 and 1990, be 75 percent in Canadian dollars, to the Authority and 25 percent in United States dollars, to the Corporation. Provided, however, that these percentages may be adjusted from time to time.

2. THAT paragraph 2(b)(vii) of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

(vii) lumber, pulpwood, poles and logs, loose or bundled;

3. 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 and grain screenings.

4. THAT the definition of “Government aid cargo” in paragraph 2 (j) of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

(j) “Government aid cargo” means processed food products which have been donated by or the purchase of which has been financed on concessional terms by the Federal Government of either the United States or Canada for the purposes of nutrition, economic development, emergency, or disaster relief programs and any food cargo that is owned or financed by a nonprofit organization or cooperative and that is certified by the Customs Service of the United States or Canada as intended for use in humanitarian or development assistance overseas;

5. THAT paragraph 3(1) of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

3.(1) The tolls shall be as set forth in the Schedule hereto.

6. THAT paragraph 3(3) of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

(3) The tolls for the section between Montreal and Lake Ontario shall be paid 75 percent in Canadian dollars and 25 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.

7. THAT the Schedule to the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

Schedule

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

William A. O'Neil, President

THE ST. LAWRENCE SEAWAY AUTHORITY

Executed at Ottawa this 13th day of December, 1988.

James L. Emery, Administrator

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Executed at Washington, DC this 15 day of December, 1988

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

WASHINGTON, August 1, 1989

His Excellency Derek Burney,
Ambassador of Canada

Excellency:

I have the honor to refer to your Note of March 30, 1989, which refers to the conclusion of discussions between officials of our two Governments concerning the rate of tolls, the division of toll revenue between the St. Lawrence Seaway Authority in Canada and the Saint Lawrence Seaway Development Corporation in the United States and revised Tariff definitions 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 the proposal in your Note is 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.

I wish to refer as well to the ongoing bilateral discussions concerning the long-term financial needs of the Seaway, the object of which discussions is eliminating or reducing tolls.

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

For the Secretary of State

Ralph R. Johnson