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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 [1991] CATSer 3 (25 January 1991)

E100472 - CTS 1991 No. 6

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 (WITH MEMORANDUM OF AGREEMENT)

I

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

CANADIAN EMBASSY

WASHINGTON, January 17, 1991

Note No. 001

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

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 Memorandum of Agreement between the parties dated January 29, 1959, and the annexed St. Lawrence Seaway Tariff of Tolls, which were annexed to the Exchange of Notes constituting an Agreement between our two Governments of March 9, 1959, and amended in 1964, 1967, 1972, 1978, 1980, 1982, 1984, 1985, 1986, 1987, 1988 and 1989.

The discussions resulted, on June 13, 1990 at Cornwall, Ontario, 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. This Memorandum of Agreement sets forth amendments to the St. Lawrence Seaway Tariff of Tolls which introduces incentive tolls.

I have the honour to propose that the St. Lawrence Seaway Tariff of Tolls be amended, as mentioned in the enclosed Memorandum of Agreement, to provide for incentive tolls for the period from July 1, 1990 to September 30, 1990.

I have the further honour to propose that this Note, which is authentic in English and French, 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, further amending the Agreement of March 9, 1959, as subsequently amended, which shall enter into force on the date of your reply.

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

Derek H. Burney

Ambassador

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

DEPARTMENT OF STATE

WASHINGTON, January 25, 1991

His Excellency Derek H. Burney,
Ambassador of Canada

Excellency:

I have the honor to refer to your Note No. 001 of January 17, 1991, with the attached Memorandum of Agreement of June 13, 1990 regarding the Agreement of March 9, 1959 between the United States of America and Canada governing tolls on the St. Lawrence Seaway as amended.

I have the further honor to inform your Excellency that the proposal to further amend the Agreement of March 9, 1959 to provide for incentive tolls for the period from July 1, 1990 to September 30, 1990 is acceptable to the Government of the United States of America and that your Excellency's Note together with this Note in reply shall constitute an Agreement between our two Governments which shall enter into force on the date of this Note.

Accept Excellency, the assurances of my highest consideration.

Robert H. Pines

For the Secretary of State

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.

WHEREAS the Authority and the Corporation, recognizing the financial requirements of the two entities, have developed an incentive tolls policy;

AND WHEREAS Clause 4 of the 1959 Agreement respecting the said Tariff, between the Authority and the Corporation, provides that such changes as "will be compatible with the general terms of the Tariff" may be made by the Authority and the Corporation.

NOW THEREFORE, the Authority and the Corporation agree, subject to confirmation of their respective Governments, that a new section be added to the St. Lawrence Seaway Tariff of Tolls as follows:

"7. (1) Notwithstanding anything contained in this Tariff, the portion of the composite toll related to charges per metric ton of cargo charged on new downbound business shall be reduced by a fifty percent refund for the period beginning July 1, 1990 and ending September 30, 1990.

(2) The refund mentioned in (1) above shall be granted after payment of the full toll specified in the Schedule under the tariff if:

(a) a vessel enters a Seaway lock after leaving the port of origin in a downbound direction after 00:01 hour July 1, 1990 and leaves the Seaway prior to arriving at the port of destination by 23:59 hours September 30, 1990;

(b) a vessel described in (a) above carries, for each consignee, 1,000 metric tons or more of new downbound business; and

(c) an application for a new downbound business refund is submitted to the Authority or the Corporation for audit by the Authority or the Corporation.

(3) For the purposes of this section, "new down bound business" means

(a) downbound cargo that has not moved through a Seaway lock during the navigation seasons of 1987, 1988 and 1989, or

(b) downbound cargo that has moved through a Seaway lock in quantities representing less than five percent of the average of Seaway traffic to the particular destination during the navigation seasons of 1987, 1988 and 1989.

(4) Information concerning the navigation seasons of 1987, 1988 and 1989 can be obtained by contacting the Chief of Tolls and Statistics, The St. Lawrence Seaway Authority, 202 Pitt Street, Cornwall, Ontario, K6J 3P7, telephone: (613) 932-5170.

THE ST. LAWRENCE SEAWAY AUTHORITY

Glendon R. Stewart, President

Executed at Cornwall this 13^th day of June 1990.

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

James L. Emery, Administrator

Executed at Cornwall this 13^th day of June 1990.