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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 [1992] CATSer 18 (30 June 1992)

E100473 - CTS 1992 No. 20

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 for Canada to the Secretary of State for the United States of America

CANADIAN EMBASSY

WASHINGTON, D.C., June 15, 1992

No. 15

The Honourable James 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 on 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 the Tariff of Tolls set out therein, which were attached to the Exchange of Notes of March 9, 1959, between our two Governments, 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 Administrator of the Saint Lawrence Seaway Development Corporation at Washington, D.C. on January 28, 1992, and by the president of The St. Lawrence Seaway Authority at Ottawa on January 30, 1992. This Memorandum of Agreement sets forth amendments to the Memorandum of Agreement of January 1959, as amended, which deal with the tariff classification of materials for recycling and the extension of the incentive tolls program to passenger vessels.

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 H. 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 Tariffs 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 the St. Lawrence Seaway Tariff of Tolls be amended by adding thereto, immediately after paragraph 2(b)(ix) thereof, the fo1lowing paragraph:

(x) material for recycling, scrap material, refuse and waste.

2. THAT the St. Lawrence Seaway Tariff of Tolls be further amended by adding thereto, immediately after subsection 7(5) thereof, the following subsections:

(6) Notwithstanding anything contained in this Tariff, the charge per passenger per lock charged on new business shall be reduced by

(i) twenty-five percent for a transit beginning within the Seaway after the opening of navigation and prior to July 1 or beginning on or after October 1 in the years 1992 and 1993 and ending at the closing of navigation in the years 1992 and 1993; or

(ii) fifty percent for a transit beginning on or after Ju1y 1 and prior to October 1 in the years 1992 and 1993.

(7) The reduction mentioned in (6) above shall be granted at the end of the applicable navigation season after payment of the full toll specified in the Schedu1e under the Tariff if:

(a) a vessel carries 20 passengers or more during a transit qualifying as new business; and

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

(8) For the purposes of this section, "new business" means

(a) a passenger vessel that has not moved through a Seaway lock during the navigation seasons of 1988 and 1989 or the three navigation seasons immediately preceding the season in which a new business refund is submitted.

(9) When a passenger vessel's transit qualifies as new business, at any time during 1992 or 1993, it shall continue to qualify until the end of the 1993 navigation season as long as it carries a minimum of 20 passengers.

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 30th day of January 1992.

SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION

Stanford Parris, Administrator

Executed at Washington, DC this 28th day of January 1992.

II

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

DEPARTMENT OF STATE

WASHINGTON, June 30, 1992

His Excellency Derek H. Burney,
Ambassador of Canada

Excellency:

I have the honor to refer to your Note Number 105, dated June 15, 1992, 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 January 28 and January 30, 1992, by officials of the St. Lawrence Seaway Development Corporation of the United States and the St. 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 tariff classification of materials for recycling and the provision concerning the extension of the incentive tolls program to passenger vessels 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 renewed assurances of my highest consideration.

Robert H. Pines

For the Secretary of State


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