Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / Notices 4265 

1The six hormones at issue are estradiol 17–b, 

testosterone, progesterone, zeranol, trenbolone 

acetate (‘‘TBA’’) and melengestrol acetate (‘‘MGA’’). 

President under Sections 301 and 302 of 

the Trade Agreements Act of 1979 (‘‘the 

Trade Agreements Act’’) (19 U.S.C. 

2511, 2512) to the United States Trade 

Representative. 

Now, therefore, I, Susan C. Schwab, 

United States Trade Representative, in 

conformity with the provisions of 

sections 301 and 302 of the Trade 

Agreements Act, and Executive Order 

12260, and in order to carry out U.S. 

obligations under Chapter Nine of the 

Peru TPA, do hereby determine that: 

1. Peru is a country, other than a 

major industrialized country, which, 

pursuant to the Peru TPA, will provide 

appropriate reciprocal competitive 

government procurement opportunities 

to United States products and suppliers 

of such products. In accordance with 

section 301(b)(3) of the Trade 

Agreements Act, Peru is so designated 

for purposes of section 301(a) of the 

Trade Agreements Act. 

2. With respect to eligible products of 

Peru (i.e., goods and services covered by 

the Schedules of the United States in 

Annex 9.1 of the Peru TPA) and 

suppliers of such products, the 

application of any law, regulation, 

procedure, or practice regarding 

government procurement that would, if 

applied to such products and suppliers, 

result in treatment less favorable than 

accorded— 

(A) To United States products and 

suppliers of such products; or 

(B) To eligible products of another 

foreign country or instrumentality 

which is a party to the Agreement on 

Government Procurement referred to in 

section 101(d)(17) of the Uruguay 

Round Agreements Act (19 U.S.C. 

3511(d)(17)) and suppliers of such 

products, shall be waived. 

With respect to Peru, this waiver shall 

be applied by all entities listed in the 

Schedules of the United States in 

Section A and in List A of Section C of 

Annex 9.1 of the Peru TPA. 

3. The designation in paragraph 1 and 

the waiver in paragraph 2 are subject to 

modification or withdrawal by the 

United States Trade Representative. 

Susan C. Schwab, 

United States Trade Representative. 

[FR Doc. E9–1451 Filed 1–22–09; 8:45 am] 

BILLING CODE 3190–W9–P 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket No. USTR–2008–0036] 

Modification of Action Taken in 

Connection With WTO Dispute 

Settlement Proceedings on the 

European Communities’ Ban on 

Imports of U.S. Beef and Beef Products 

AGENCY: Office of the United States 

Trade Representative. 

ACTION: Notice and modification of 

action. 

SUMMARY: The United States Trade 

Representative (‘‘Trade Representative’’) 

has decided to modify the action taken 

in July 1999 in connection with the 

World Trade Organization (‘‘WTO’’) 

authorization to the United States in the 

EC-Beef Hormones dispute to suspend 

concessions and related obligations with 

respect to the European Communities 

(‘‘EC’’). In particular, as described in 

this notice and its annex, the Trade 

Representative has decided: (1) To 

remove some products from the list of 

products currently subject to 100 

percent ad valorem duties; (2) to impose 

100 percent ad valorem duties on some 

new products from certain EC member 

States; (3) to modify the coverage with 

respect to particular EC member States; 

and (4) to raise the level of duties on 

one of the products that is being 

maintained on the product list. The 

trade value of the products subject to 

the modified action continues not to 

exceed the $116.8 million per year level 

authorized by the WTO in July 1999. 

DATES: Effective Date: The modifications 

described in the Annex to this notice 

shall be effective with respect to 

products that are entered, or withdrawn 

from warehouse, for consumption on or 

after March 23, 2009. Any merchandise 

subject to increased duties under this 

determination that is admitted to U.S. 

foreign-trade zones on or after March 23, 

2009 must be admitted as ‘‘privileged 

foreign status’’ as defined in 19 CFR 

146.41. 

FOR FURTHER INFORMATION CONTACT: 

Roger Wentzel, Director, Agricultural 

Affairs, (202) 395–6127 or David 

Weiner, Director for the European 

Union, (202) 395–4620 for questions 

concerning the EC-Beef Hormones 

dispute; or William Busis, Associate 

General Counsel and Chair of the 

Section 301 Committee, (202) 395–3150, 

for questions concerning procedures 

under Section 301. 

SUPPLEMENTARY INFORMATION: 

A. The EC-Beef Hormones Case 

The EC bans the import of beef and 

beef products produced from animals to 

which any of six hormones 1 have been 

administered for growth promotion 

purposes. The effect of the EC ban is to 

prohibit the import of substantially all 

U.S.-produced beef and beef products. 

In February 1998, the WTO Dispute 

Settlement Body (‘‘DSB’’) found that the 

EC ban was inconsistent with EC 

obligations under the WTO Agreement. 

In July 1999, a WTO arbitrator 

determined that the EC import ban on 

U.S. beef and beef products has 

nullified or impaired U.S. benefits 

under the WTO Agreement in the 

amount of $116.8 million each year. On 

July 26, 1999, the DSB authorized the 

United States to suspend the application 

to the EC, and member States thereof, of 

WTO tariff concessions and related 

obligations covering trade in an amount 

of $116.8 million per year. Pursuant to 

that authorization, the Office of the 

United States Trade Representative 

(‘‘USTR’’) announced a list of EC 

products that would be subject to a 100 

percent rate of duty effective with 

respect to products entered, or 

withdrawn from warehouse, for 

consumption on or after July 29, 1999. 

See 64 FR 40638. 

Since that time, the United States and 

the EC have continued to consult in an 

effort to resolve this dispute. Those 

discussions include the possibility of an 

interim agreement that would provide 

meaningful market access for U.S. beef 

products produced without growthpromoting hormones, in return for a 

suspension of the increased duties on 

EC products. 

The EC argues that EC legislation of 

2003 amending the import ban on beef 

and beef products produced from 

animals treated with certain hormones 

brought the EC into compliance with its 

WTO obligations. In January 2005, the 

EC requested the establishment of a 

WTO dispute settlement panel to 

consider the EC claim that the United 

States was no longer authorized to 

suspend concessions as a result of the 

EC’s adoption of the new legislation 

amending the import ban. (See 70 FR 

8655 for a description of this dispute 

brought by the EC.) 

On October 16, 2008, the WTO 

Appellate Body issued a report rejecting 

the EC claim and confirming that the 

July 1999 DSB authorization to suspend 

concessions remains in effect unless and 

until the DSB rules that the EC has 

brought its measures into compliance 

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4266 Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / Notices 

with its WTO obligations. The DSB 

adopted its recommendations and 

rulings on November 14, 2008. On 

December 22, 2008, the EC took steps 

towards initiating another WTO 

proceeding by requesting consultations 

with the United States regarding the EC 

view that it has brought its measures 

into compliance with the 1998 WTO 

recommendations and rulings. 

The decision by the Trade 

Representative to modify the July 1999 

action should not be construed as a 

determination with respect to whether 

or not the EC legislation of 2003 

amending the import ban on beef and 

beef products is consistent with WTO 

rules. Rather, the purpose of modifying 

the action is to increase its effectiveness 

in terms of promoting a resolution of 

this dispute, including through the 

possible conclusion of an interim 

agreement that would provide 

meaningful market access for U.S. beef 

producers, taking into account the 

economic impact of the action on the 

United States. 

B. Section 307 of the Trade Act of 1974, 

as Amended 

Section 307 of the Trade Act of 1974, 

as amended, provides for a review of 

actions taken under Section 301, 

including actions taken in connection 

with a WTO dispute settlement 

proceeding. In particular, Section 307 

provides for the Trade Representative to 

conduct a review of— 

(A) the effectiveness in achieving the 

objectives of section 301 of— 

(i) such action, and 

(ii) other actions that could be taken 

(including actions against other 

products or services), and 

(B) the effects of such actions on the 

U.S. economy, including consumers. 

C. Section 306 of the Trade Act of 1974, 

as Amended 

Section 306(b)(2)(B) of the Trade Act 

provides for the periodic review and 

revision of Section 301 actions taken in 

the course of a WTO dispute settlement 

proceeding. Section 306(b)(2)(B)(ii) 

provides exceptions in the event that (1) 

the USTR and the Section 301 petitioner 

(or, if USTR self-initiated the Section 

301 investigation, the affected U.S. 

industry) agree that changing the action 

under Section 301 is unnecessary, or (2) 

resolution of the case is imminent. 

Section 306 provides that the standard 

for revising actions is to select changes 

that are most likely to result in 

implementation of the DSB 

recommendations, or in achieving some 

other satisfactory resolution of the 

dispute. The provision also requires that 

lists of products subject to increased 

duties—both initially and after each of 

the periodic changes—include 

reciprocal goods of the U.S. industries 

affected by the measure at issue in the 

WTO dispute. 

The USTR and the affected U.S. 

industry had agreed that changes in the 

action taken under Section 301 in 

connection with the EC-Beef Hormones 

dispute have been unnecessary; 

accordingly, the exception under 

Section 306(b)(2)(B) has been in effect. 

In response to the November 6, 2008 

request for public comments (see 

below), the affected industry expressed 

the view that a different approach may 

be needed in order to obtain a resolution 

of this dispute. 

D. Prior Notice and Comment 

In order to assist in a possible 

modification to the action in accordance 

with Section 306 of the Trade Act, and 

to provide information in connection 

with a review under Section 307 of the 

Trade Act, USTR published a notice on 

behalf of the Section 301 Committee 

seeking public comments regarding a 

possible modification to the July 1999 

action. See 73 FR 66,066 (November 6, 

2008). The notice requested that 

comments be submitted by December 8, 

2008. 

The Section 301 Committee sought 

comments with respect to: (i) Whether 

maintaining or imposing increased 

duties on particular products would be 

practicable or effective in terms of 

encouraging a favorable resolution of 

the dispute, and (ii) whether 

maintaining or imposing increased 

duties on particular products would 

cause disproportionate economic harm 

to U.S. interests, including small- or 

medium-size businesses and consumers. 

In addition, the Section 301 Committee 

requested comments on whether actions 

with respect to particular products 

should be taken with respect to 

products of all member States of the 

European Communities, or whether 

action should be taken with respect to 

products of one or more particular 

member States of the European 

Communities. 

Approximately 600 public comments 

were received in response to the 

November 6, 2008 notice. Taking 

account of the public comments, the 

Section 301 Committee—considering 

the effects on the U.S. economy, 

including consumers—prepared a 

recommendation for a modified action 

that would be more effective in terms of 

achieving the objectives of Section 301. 

E. Determination and Action 

The Trade Representative, taking 

account of the effects of such action on 

the U.S. economy, including consumers, 

has accepted the recommendation of the 

Section 301 Committee to modify the 

July 1999 action so as to increase its 

effectiveness. The modified action 

further implements the authorization 

granted by the DSB to the United States 

under Article 22 of the DSU, and is 

taken pursuant to the authority granted 

to the Trade Representative under 

sections 306 and 307 of the Trade Act. 

The trade value of the products subject 

to the modified action remains at or 

below the $116.8 million per year level 

authorized by the WTO in July 1999. 

The Trade Representative has 

decided: (1) To remove some products 

from the list of products currently 

subject to 100 percent ad valorem duties 

(specifically, the articles provided for in 

HTS subheadings 9903.02.31, 

9903.02.33, 9903.02.35, 9903.02.37, 

9903.02.38, 9903.02.39, 9903.02.40, 

9903.02.41, 9903.02.42 and 9903.02.47); 

(2) to impose 100 percent ad valorem 

duties on some new products from 

certain EC member States; (3) to modify 

the coverage with respect to particular 

EC member States; and (4) to raise the 

level of duties on one of the products 

that is being maintained on the product 

list. The modified action pursuant to the 

Trade Representative’s determination is 

set out in Annex A to this notice. Annex 

B to this notice deletes the chapter 99 

subheadings established in July 1999 for 

the purpose of implementing the prior 

action. 

The Trade Representative’s 

determination shall be effective with 

respect to articles that are entered, or 

withdrawn from warehouse, for 

consumption on or after March 23, 

2009. Any merchandise that is subject to 

increased duties under part A of the 

Annex that is admitted to a U.S. foreign 

trade zone (U.S. FTZ) on or after March 

23, 2009 must be admitted with 

‘‘privileged foreign status,’’ as defined 

in 19 CFR 146.41. In addition, any 

merchandise that is no longer subject to 

increased duties as a result of the Trade 

Representative’s determination to 

modify the July 1999 action is no longer 

subject to the requirement that it must 

be admitted to a U.S. FTZ with 

‘‘privileged foreign status.’’ 

William L. Busis, 

Chair, Section 301 Committee. 

Annex 

A. Effective with respect to articles 

entered, or withdrawn from warehouse for 

consumption, on or after March 23, 2009, the 

Harmonized Tariff Schedule of the United 

States (HTS) is modified by adding in 

numerical sequence the following superior 

text and subheadings to subchapter III of 

chapter 99 to the HTS. The superior text and 

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Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / Notices 4267 

subheadings are set forth in columnar format, 

and material in such columns is inserted in 

the columns of the HTS designated 

‘‘Heading/Subheading,’’ ‘‘Article 

Description,’’ and ‘‘Rates of Duty 1— 

General,’’ respectively: 

‘‘ARTICLES THE PRODUCT OF AUSTRIA, BELGIUM, BULGARIA, CYPRUS, CZECH REPUBLIC, DENMARK, ESTONIA, FINLAND, 

FRANCE, GERMANY, GREECE, HUNGARY, IRELAND, ITALY, LATVIA, LITHUANIA, LUXEMBOURG, MALTA, THE NETHERLANDS, POLAND, PORTUGAL, ROMANIA, SLOVAKIA, SLOVENIA, SPAIN OR SWEDEN: 

Meat of bovine animals, fresh or chilled (provided for in heading 0201): 

9903.02.48 .................. Articles of subheading 0201.10.05, 0201.10.10, 0201.20.02, 0201.20.04, 0201.20.06, 0201.20.10, 

0201.20.30, 0201.20.50, 0201.30.02, 0201.30.04, 0201.30.06, 0201.30.10, 0201.30.30 or 0201.30.50.

100% 

9903.02.49 .................. Articles of subheading 0201.10.50, 0201.20.80 or 0201.30.80 ........................................................................... 100% 

Meat of bovine animals, frozen (provided for in heading 0202): 

9903.02.50 .................. Articles of subheading 0202.10.05, 0202.10.10, 0202.20.02, 0202.20.04, 0202.20.06, 0202.20.10, 

0202.20.30, 0202.20.50, 0202.30.02, 0202.30.04, 0202.30.06, 0202.30.10, 0202.30.30 or 0202.30.50.

100% 

9903.02.51 .................. Articles of subheading 0202.10.50, 0202.20.80 or 0202.30.80 ........................................................................... 100% 

9903.02.52 .................. Meat of swine, fresh or chilled (provided for in subheading 0203.11, 0203.12 or 0203.19) ........................... 100% 

9903.02.53 .................. Carcasses and half-carcasses of swine, frozen (provided for in subheading 0203.21) ...................................... 100% 

9903.02.54 .................. Hams, shoulders, and cuts thereof, with bone in, of swine, frozen (provided for in subheading 0203.22) ... 100% 

9903.02.55 .................. Processed meat of swine, frozen, other than carcasses and half-carcasses of swine and other than hams, 

shoulders, and cuts thereof, with bone in (provided for in subheading 0203.29.20).

100% 

9903.02.56 .................. Edible offal of bovine animals, fresh or chilled (provided for in subheading 0206.10) ................................... 100% 

9903.02.57 .................. Edible offal of bovine animals, frozen (provided for in subheading 0206.21, 0206.22 or 0206.29) ................ 100% 

9903.02.58 .................. Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen (provided for in heading 

0207).

100% 

9903.02.59 .................. Hams, shoulders, and cuts thereof, with bone in, of swine, salted, in brine, dried or smoked (provided for 

in subheading 0210.11).

100% 

9903.02.60 .................. Meat of bovine animals, salted, in brine, dried or smoked (provided for in subheading 0210.20) ................. 100% 

9903.02.61 .................. Meat of poultry of heading 0105, salted, in brine, dried or smoked (provided for in subheading 

0210.99.20).

100% 

9903.02.62 .................. Roquefort cheese (provided for in subheading 0406.40.20 and 0406.40.40) ..................................................... 300% 

9903.02.63 .................. Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, being goods of a 

kind suitable for bouquets or for ornamental purposes, fresh, dried or bleached (provided for in subheading 0604.91 or 0604.99.30).

100% 

9903.02.64 .................. Truffles, fresh or chilled (provided for in subheading 0709.59.10) ................................................................... 100% 

9903.02.65 .................. Rolled or flaked grains of oats (provided for in subheading 1104.12) .............................................................. 100% 

9903.02.66 .................. Grains of oats, hulled, pearled, sliced, kibbled or otherwise worked, not elsewhere specified or included 

(provided for in subheading 1104.22).

100% 

9903.02.67 .................. Sausages and similar products of beef, and food preparations based on these products, in airtight containers (provided for in subheading 1601.00.40).100% 

9903.02.68 .................. Other prepared or preserved meat, meat offal or blood, of liver of any animal (provided for in subheading 

1602.20).

100% 

9903.02.69 .................. Other prepared or preserved meat, meat offal or blood, of poultry of heading 0105 (provided for in subheading 1602.31, 1602.32, 1602.39).100% 

9903.02.70 .................. Other prepared or preserved meat, meat offal or blood, of bovine animals (provided for in subheading 

1602.50).

100% 

9903.02.71 .................. Chewing gum, whether or not sugar-coated, not containing cocoa (provided for in subheading 1704.10) .... 100% 

9903.02.72 .................. Chocolate and other food preparations containing cocoa, in blocks, slabs or bars, filled, weighing 2 kg or 

less each (provided for in subheading 1806.31).

100% 

9903.02.73 .................. Lingonberry and raspberry jams (provided for in subheading 2007.99.05) ...................................................... 100% 

9903.02.74 .................. Pears, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included (provided for in subheading 2008.40).100% 

9903.02.75 .................. Peaches, excluding nectarines, otherwise prepared or preserved, whether or not containing added sugar 

or other sweetening matter or spirit, not elsewhere specified or included (provided for in subheading 

2008.70.20).

100% 

Articles the product of Finland, France, Ireland, the Netherlands or Sweden: 

9903.02.76 .................. Meat of swine, frozen, not processed, other than carcasses and half-carcasses of swine and other than 

hams, shoulders, and cuts thereof, with bone in (provided for in subheading 0203.29.40).

100% 

Articles the product of France: 

9903.02.77 .................. Chestnuts (Castanea spp.), fresh or dried, whether or not shelled or peeled (provided for in subheading 

0802.40).

100% 

9903.02.78 .................. Wool grease (other than crude wool grease) and fatty substances derived from wool grease (including lanolin) (provided for in subheading 1505.00.90).100% 

Articles the product of Austria, Cyprus, France or Poland: 

9903.02.79 .................. Grape juice (including grape must), not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter (provided for in 

subheading 2009.61 or 2009.69).

100% 

9903.02.80 .................. Juice of any other single fruit, not elsewhere specified or included, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other 

sweetening matter (provided for in subheading 2009.80.60).

100% 

9903.02.81 .................. Mixtures of juices, other than mixtures of vegetable juices, not fortified with vitamins or minerals, 

unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter (provided for in subheading 2009.90.40).

100% 

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4268 Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / Notices 

‘‘ARTICLES THE PRODUCT OF AUSTRIA, BELGIUM, BULGARIA, CYPRUS, CZECH REPUBLIC, DENMARK, ESTONIA, FINLAND, 

FRANCE, GERMANY, GREECE, HUNGARY, IRELAND, ITALY, LATVIA, LITHUANIA, LUXEMBOURG, MALTA, THE NETHERLANDS, POLAND, PORTUGAL, ROMANIA, SLOVAKIA, SLOVENIA, SPAIN OR SWEDEN:—Continued 

Articles the product of Italy: 

9903.02.82 .................. Mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavored 

(provided for in subheading 2201.10).

100% 

B. Effective with respect to articles entered, 

or withdrawn from warehouse for 

consumption, on or after March 23, 2009, 

subchapter III of chapter 99 of the 

Harmonized Tariff Schedule of the United 

States (HTS) is modified by deleting the 

following HTS subheadings: 9903.02.21, 

9903.02.22, 9903.02.23, 9903.02.24, 

9903.02.25, 9903.02.26, 9903.02.27, 

9903.02.28, 9903.02.29, 9903.02.30, 

9903.02.31, 9903.02.32, 9903.02.33, 

9903.02.34, 9903.02.35, 9903.02.36, 

9903.02.37, 9903.02.38, 9903.02.39, 

9903.02.40, 9903.02.41, 9903.02.42, 

9903.02.43, 9903.02.44, 9903.02.45, 

9903.02.46 and 9903.02.47. 

[FR Doc. E9–1257 Filed 1–22–09; 8:45 am] 

BILLING CODE 3190–W9–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. IC–28603; 812–13552] 

Calamos Convertible Opportunities 

and Income Fund, et al.; Notice of 

Application 

January 14, 2009. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of application for an 

order under section 6(c) of the 

Investment Company Act of 1940 

(‘‘Act’’) for an exemption from sections 

18(a)(1)(A) and (B) of the Act. 

APPLICANTS: Calamos Convertible 

Opportunities and Income Fund 

(‘‘CHI’’), Calamos Convertible and High 

Income Fund (‘‘CHY’’), Calamos 

Strategic Total Return Fund (‘‘CSQ’’), 

and Calamos Global Dynamic Income 

Fund (‘‘CHW’’) (each, a ‘‘Fund’’ and 

collectively, ‘‘Funds’’). 

SUMMARY OF APPLICATION: Applicants 

request an order (‘‘Order’’) granting an 

exemption from sections 18(a)(1)(A) and 

(B) of the Act for a period from the date 

of the Order until October 31, 2010. The 

Order would permit each Fund to issue 

or incur debt subject to asset coverage 

of 200% that would be used to refinance 

all of the Fund’s auction rate preferred 

shares (‘‘ARPS’’) issued prior to 

February 1, 2008 that are outstanding at 

the time of the Order. The Order also 

would permit each Fund to declare 

dividends or any other distributions on, 

or purchase, capital stock during the 

term of the Order, provided that any 

such debt has asset coverage of at least 

200% after deducting the amount of 

such transaction. 

FILING DATES: The application was filed 

on July 24, 2008, and amended on 

October 14, 2008, December 18, 2008, 

January 12, and January 14, 2009. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on February 9, 2009, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, Securities and 

Exchange Commission, 100 F Street, 

NE., Washington, DC 20549–1090. 

Applicants: c/o James J. Boyne, Calamos 

Advisors LLC, 2020 Calamos Court, 

Naperville, IL 60563. 

FOR FURTHER INFORMATION CONTACT: 

Courtney S. Thornton, Senior Counsel, 

at (202) 551–6812, or Janet M. 

Grossnickle, Assistant Director, at (202) 

551–6821 (Division of Investment 

Management, Office of Investment 

Company Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained for a fee at the SEC’s 

Public Reference Room, 100 F Street, 

NE., Washington, DC 20549–1520 (tel. 

202–551–5850). 

Applicants’ Representations 

1. Each of the Funds is organized as 

a Delaware statutory trust and is 

registered under the Act as a diversified, 

closed-end management investment 

company. Each Fund is advised by 

Calamos Advisors LLC (‘‘Calamos’’) and 

has issued and outstanding a class of 

common shares and several series of 

ARPS. 

2. Applicants state that the Funds 

issued their outstanding ARPS for 

purposes of investment leverage to 

augment the amount of investment 

capital available for use in the pursuit 

of their investment objectives. 

Applicants state that, through the use of 

leverage, the Funds seek to enhance the 

investment return available to the 

holders of their common shares by 

earning a rate of portfolio return (which 

includes the return related to 

investments made with proceeds from 

leverage) that exceeds the leverage costs, 

which have been the amount of 

dividends that the Funds paid to 

holders of the ARPS. Applicants 

represent that ARPS shareholders are 

entitled to receive a stated liquidation 

preference amount of $25,000 per share 

(plus any accumulated but unpaid 

dividends) in any liquidation, 

dissolution, or winding up of the 

relevant Fund before any distribution or 

payment to holders of the Fund’s 

common shares. They state that 

dividends declared and payable on 

ARPS have a similar priority over 

dividends declared and payable on the 

Fund’s common shares. In addition, 

applicants state that ARPS are 

‘‘perpetual’’ securities and are not 

subject to mandatory redemption by a 

Fund so long as certain asset coverage 

tests are met. Further, applicants state 

that ARPS are redeemable at each 

Fund’s option. 

3. Applicants state that prior to 

February 2008, dividend rates on the 

ARPS for each dividend period were set 

at the market clearing rate determined 

through an auction process that brought 

together bidders, who sought to buy 

ARPS, and holders of ARPS, who sought 

to sell their ARPS. Applicants explain 

that if an auction failed to clear (because 

of an imbalance of sell orders over bids), 

the dividend payment rate over the next 

dividend period was set at a specified 

maximum applicable rate (the 

‘‘Maximum Rate’’) determined by 

reference to a short-term market interest 

rate (either the LIBOR or ‘‘AA’’ 

commercial paper rate for an equivalent 

period). Applicants state that an 

unsuccessful auction is not a default; 

the relevant Fund continues to pay 

dividends to all holders of ARPS, but at 

the specified Maximum Rate rather than 

a market clearing rate. Prior to February 

2008, the Maximum Rate had never 

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