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Exchange of Notes between the Government of Canada and the Government of the United States of America constituting an Agreement further amending the Agreement concerning the Application of Tolls on the St. Lawrence Seaway [1991] CATSer 33 (20 December 1991)

E100478 - CTS 1991 No. 38

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

I

The Minister and Deputy Head of Mission of Canada to the Secretary of State of the United States of America

CANADIAN EMBASSY

WASHINGTON, December 12, 1991

No. 151

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

Mr. Secretary,

I have the honour to refer to the discussions which took place recently between officials of The St. Lawrence Seaway Authority of Canada and the Saint Lawrence Seaway Development Corporation of the United States regarding the Memorandum of Agreement between those agencies, dated January 29, 1959, and Tariff of Tolls set out therein, which were attached to the Exchange of notes of March 9, 1959, between our two Government and amended in 1964, 1967, 1972, 1978, 1980, 1982, 1984, 1985, 1986, 1987, 1988, 1989 and 1991.

The discussions resulted in the signature of the enclosed Memorandum of Agreement by the President of The St. Lawrence Seaway Authority at Ottawa on August 28, 1991, and by the Administrator of the Saint Lawrence Seaway Development Corporation at Washington, D.C. on September 3, 1991. This Memorandum of Agreement sets forth amendments to the Memorandum of Agreement of January 1959, as amended, which deals with the definition of "feed grains" and the implementation of volume discounts.

I have the further honour to propose that this Note and the enclosed Memorandum of Agreement, which are both authentic in English and French, 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 the St. Lawrence Seaway Tariff of Tolls effected by the exchange of Notes of March 1959, as previously amended.

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

Marc Brault

Minister and Deputy Head of Mission

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.

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 have agreed to recommend to their respective Governments the following amendments to the St. Lawrence Seaway Tariff of Tolls:

1. THAT subsection 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, field crop seeds, grain screenings and meal from these grains for animal consumption.

2. THAT section 8 of the St. Lawrence Seaway Tariff of Tolls be revoked and the following substituted therefor:

8. (1) A volume discount shall be granted to carriers at the end of the 1991, 1992 and 1993 navigation seasons after payment of the full toll specified in the Schedule under the tariff if shipments of a commodity from a particular origin exceed the average amount of shipments from that origin for that commodity in the Seaway during the five navigation seasons immediately preceding the season in which a volume discount is applied by an amount of at least 100,000 tonnes. The volume discount shall be equal to a 20% reduction of the portion of the composite toll related to charges per metric ton of cargo paid for the shipments that surpass the average for the preceding five seasons. The volume discount shall be applied on a pro rata basis to all carriers of the particular commodity from that origin within one navigation season.

(2) For the purposes of this section "origin" means the country in which the cargo is loaded, except if the cargo is loaded in North America, "origin" then means the port at which the cargo is loaded.

(3) If the condition in subsections (1) and (2) of this section are met, a volume discount shall be granted with respect to the following commodities:

(a) grain
(b) other agricultural products
(c) iron ore
(d) other mine products
(e) coal
(f) coke
(g) petroleum products
(h) chemicals
(i) stone
(j) salt
(k) other bulk cargo
(l) iron and steel
(m) other general cargo
(n) containers

(4) Cargoes having been the subject of a new downbound or new upbound business refund shall be excluded from the statistics used for the calculation of volume discounts.

(5) Notwithstanding anything above, a carrier shall not obtain, at the end of a navigation season, both a volume discount and a new downbound or new upbound business refund with respect to the same shipment but a carrier shall obtain the greater of the said discount or refund.

3. AND THAT the terms of the Agreement and the St. Lawrence Seaway Tariff of Tolls as previously amended, except as herein modified, shall continue to remain in full force and effect.

THE ST. LAWRENCE SEAWAY AUTHORITY

Glendon R. Stewart, President

Executed at Ottawa this 28^th day of August, 1991.

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Stanford Parris, Administrator

Executed at Washington, D.C. this 3^rd day of September, 1991.

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

DEPARTMENT OF STATE

WASHINGTON, December 20, 1991

His Excellency Derek H. Burney,
Ambassador of Canada

Excellency,

I have the honor to refer to your Note Number 151, dated December 12, 1991, which refers to the Agreement between our two Governments governing tolls on the St. Lawrence Seaway, effected by exchange of notes March 9, 1959, with the annexed Memorandum of Agreement of January 29, 1959, as amended, and to the Memorandum of Agreement signed August 28 and September 3, 1991 by officials of the Saint Lawrence Seaway Development Corporation of the United States and the Saint Lawrence Seaway Authority of Canada, which was enclosed with your Note, and which sets forth amendments to the Memorandum of Agreement of January 29, 1959.

I have the further honor to inform your Excellency that the proposals to amend the definition of feed grains and the provision concerning the implementation of volume discounts are acceptable to the Government of the United States of America and that your Excellency's Note, with the enclosed Memorandum of Agreement, together with this Note in reply shall constitute an Agreement between our Governments to further amend the Agreement governing tolls on the St. Lawrence Seaway, and which shall enter into force on the date of this note.

Accept Excellency, the assurances of my highest consideration.

Robert H. Pines

For the Acting Secretary of State