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Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est film6 d partir de I'angle sup6rieur gauche, de gauche d droite. et d^ haut en bes. en prenant le nombre d'imsges nicessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 ^|V br'iV. for«J<^x-u 0^|vu. © %V1 CORRESPONDENCE UKSPECTIXG TIIF. TERMINATION OF THE RECIPROCITY TREATY or JTJOT: 5, 1854, BETWEEN THE UNITED STATES AND GREAT BRITAIN. Presented to both Houses of Parliament by Command of Her Majesty. 1866. • iJ IX)NDOy, PBIMTRD BT HARRISON AND SONS. 3 <>' ? ^ »v LIST OF PAPERS. N*. 1. Mr. Adama to Earl Kuigell One IncliMure. 2. Earl Ruiacll to Mr. Adams .. 3. Earl Russell to Sir F. Bruce . . 4. Mr. Burnley to Earl Russell 6. Sir F. Bruce to Earl Russell . . 6. Earl KusscU to Sir F. Bruce . . 7. Sir F. Bruce to Earl Russell One Inclosure. 8. Sir F. Bruce to Earl Russell . . One Inclosure. 5. Sir F. Bruce to the Earl of Clarendon 10. The Earl of Clarendon to Sir F. Bruce 1 1. Sir F. Bruce to the Earl of Clarendon Four Inclosures. 12. Mr. Elliot to Mr. Hammond . . Two Inclosures. 13. Sir F. Bruce to the Earl of Clarendon Two Inclosures. 14. The Earl of Clarendon to Sir F. Bruce 15. The Earl of Clarendon to Sir F. Bruce 16. Sir F. Bruce to the Earl of Clarendon 17. Sir F. Bmee to the Earl of Clarendon .•;'! Page March 17, 186d 1 March 17, March 24, March 9, June 7, July 8, September 23, 2 2 4 4 4 a November 6, 6 December 4, -^— January 13, 1866 7 7 7 11 12 March 12, March 1'/, March 9, March 14, 13 13 16 17 ( X- «HS« ,1V nx,ixs'' i ■. .Jl.' Page 17, 1863 1 17, 24, 9, 7, 8, er as, — — Br 6, 2 2 4 4 4 3 6 er 4, 7 13, 1866 7 y 11. 7 6,' ^ 22,. 11 12 12, 13 1/. 13 9, 16 14, 17 Correspondence respecting the Termination of the Reciprocity Treaty of June 5, 1854, between the United Sutes and Great Britain. No. 1. Mr. Adams to Earl Rutsell. — {Received March 17.) My Lord, Legation of the United States, London, March 17, 18G5. '';;;:;rUNDER instructions from the Government of the United States, I have the honour to transmit to your Lordship a certified copy of a joint Resolution of the Conffress of the United States, approved by the President on the 18th of January, 1865, in regard to the termination of the Treaty concluded between the United States and Her Britannic Majesty on the 5th of June, 1854, commonly known as the Reciprocity Treaty. ■" 1 have the honour further to inform you that 1 am directed to notify Her Majesty's Government that, as it is consistent no longer for the interests of the United States to continue this Treaty in force, it will terminate and be of no further effect, as provided by the terms of the instrument, at the expiration of twelve months from the date of the reception by your Lordship of this notice. I pray, &ic. (Signed) CHARLES FRANCIS ADAMS. Inclosure in No. I. (Public Resolution No. 5.) Joint Resolution providing for the Termination of the Reciprocity Treaty of June 5, 1854, between the United States and Cheat Britain. WHEREAS it is provided in the Reciprocity Treaty concludal at Washington the 5th of June, 1854, between the United States, of the one part, and the United Kingdom of Great Britain and Ireland, of the other part, that this Treaty " shall remain in force for ten years from the date at which it may come into operation, and, further, until the expiration of twelve months after either of the High Con- tracting Parties shall give notice to the other of its wish to terminate the same ;" and whereas it appears by a Proclamation of the President of the United States, bearing date 16th March, 1855, that the Treaty came into operation on that day ; and whereas, further, it is no longer for the interests of the United States to continue the same in force ; therefore — Resolved by 1 le Senate and House of Representatives of the United States of America in Cong -ess assembled, that notice be given of the termination of the Reciprocity Treaty, according to the provision therein contained for the termination of the same ; and the President of the United States is hereby charged with, the communication of such notice to the Government of the United Kingdom of Great Britain and Ireland. Approved, January IS, 1865. ' . , . .- .V S^3 { ! :!! 1^ ^'^ ;ii ii No. 2. Earl Russell to Mr. Adams. Sir, Foreign Office, March 17, 1865, I HAVE the honour to acknosvledge the receipt of your letter of this day, containing a Resolution of the Congress of the United states, approved by the President, in regard to the termination of the Treaty of 1854, commonly known as the Reciprocity Treaty. Her Majesty will instruct Sir Frederick Bruce on his proceeding to Washington as Her Majesty's Envoy Extraordinary, upon this subject. 1 am, &ic. (Signed) RUSSELL. No. a Earl Russell to Sir F. Bruce. (Extract.) Foreign Office, March 24, 1865. THERE can be no doubt that the operation of the Reciprocity Treaty has been mutually beneficial to both the Contracting Parties. Consulting first the statistical returns, we find that the Secretary of the Treasury of the United States reports that the total imports into the British Pro- vinces from the United States were, in 1827, 445,118 dollars, and the exports from those provinces to the United States 2,830,674 dollars ; total trade, 3,275,792 dollars. It is stated by the Select Committee of the Chamber of Commerce of New York that the whole value of exports and imports between the United States and the British North American Provinces was m 1849, 6,000,000 dollars, and had grown slowly up to that amount. We find stated on the same authority- Imports into Canada Exports from Canada to the United States Imports . . Exports . , 1854. 1855. 1863. Imports Exports Dollars. 15,583,098 8,649,002 Dollars. 20,828,676 16,737,377 Dollan. 23,109,362 23,534,075 There cannot well be a greater proof of the benefits of this commerce to both parties. It is true that the Committee states that the balance of trade in regard to foods duty free was in ten years upwards of 42,000,000 dollars {gainst the United tates, and in regard to manufactured goods, upwards of 88,000,000 dollars in favour of the United States. But there is no necessity of discussing views founded on the theory of the balance of trade. If the United States took in ten years goods duty free to the value of 42,000,000 more than they sent to Canada, ii was that the inhabitants of the United States wanted these goods for their own use and enjoyment. So, likewise, if Canada took in ten years 88,000,000 dollars worth of duty-paying manufactures, &c., more than they exported to the United States, it was because the inhabitants of Canada wanted these goods for their own use and enjoyment, and were willing to pay the price demanded for them. Both countries have profited by this intercourse. But othsr very great advantages have been derived from the Reciprocity Treaty. Before tlie conclusion of that Treaty frequent disputes arose respecting the sea fisheries, and men-of-war, British and American, were employed to adjust those disputes. Those disputes will probably arise anew if the Treaty is abrogated. The free navigation of the St. Lawrence by the Americans, and the use of the American railroads by the Canadians during winter, are also consequences of the Reciprocity Treat}-. ■ V ^v 7, 1865. this day, ed by the known as ashington 3SELL. 4. 1865. 'reaty has ry of the 'itish Pro- torts from )2 dollars. !ifew York s and the ad grown rs. 098 002 rs* 676 277 362 D75 ze to both regard to le United oUars in ry of the ree to the )itants of ent. So, ty-paying because nent, and ofited by y Treaty. ; the sea jst those ted. e of the es of the % Upon the whole, the States immediately interested and bordering on the British frovinces have come to the conclusion that, an a Treat\ nf Friend8hi|> and of 'ommerce, the Reciprocity Treaty has ?)een emincntiv iH-nefici.il to Uiih countries. Thus, the New York Cninmitteo of the C'ham»»er of Comnjcrce say : "On the whole, then, the Committoc lias come to the conclusion that the lar^jc majority of the people of British North America, as well as of the States most interested in the subject, are in favour of a renewal and modification of the Reciprocity Trcatv, in order to retain its benefits." The Boston Report of a Special Committee of the Ikiston Board of Trade contains the followintj passages : — '• In the place of barred and bolted ports, the people of the United States and of the Colonies now. and under the Reciprocity Treaty, deal with one another at will, exchange without Customs even the 'wealth of se.is ' and the principal raw staples of the soil ; mingle as if of the same nation on all fishing grounds, and as if of the same nation, too, use the St. Lawrence and the canals which connect it with the most distant of the great lakes and with the ocean. True, in this happy condition of things there arc some grave evils to lament and to correct ; yet we are still to rejoice that the inhuman restrictions which existed for nearly half'a century have been removed. And now ! arc the misunderstandings of the moment to be cherished, and to terminate at last in utter alienation and hatred ? Is retaliatory legislation to be revived on both sides ? " • * » * * " Finally, we are amazed at the efforts to abrogate the Reciprocitv Treaty of June 5, 1854, without an overture for negotiation. We had sujiposed th.it in commercial freedom, and of consequence in the promotion of hunian hrotherlKKl, there is no recession. Is the case before us to stand in history as an exception ?" Next we find in the Report of a debate at Detroit the foll<)wing statements : — " Michigan. " Detroit Board of Trade, December 7, says : — The only action necessary on the part of our Government is to allow the present Treaty to sv-ind until Commissioners appointed by it and the British Colonies of North A; ■■ .•i?a agree on whatever alterations may ba deemed advisable, and mutually just and ceneficial." *♦ Illinois. " Chicago Board of Trade, February 10, 1862, states that the ' Treaty has been of great value to the producing interest of the whole north-west.' Says that ' we should not check the energy nor circumscribe the industry of our country ; but take a broad national view of the question, and firmly advocate the principle of the greatest good to the greatest number. Cannot recommend any measure that will in the least cripple the energies of our people, but cheerfully advocate the revision of the Treaty if any of its parts are unjust or oppressive.' ' What we desire is to make our trade still more reciprocal, still more free with our Canadian neigh- bours.'" " Wisconsin. "Chamber of Commerce at Milwaukie, January 13, 18G4, desires 'such action as shall result in securing a new Treaty, founded upon the true principles of reciprocity between the two Governments and the people of both countries, and which shall obviate the objections and inequalities existing in the present Treaty, and be upon a more liberal and enlarged basis.' " "Minnesota. " Memorial of the Chamber of Commerce at St. Paul, referred to the Committee on Commerce, February 5, 1862, invokes the ' sober second thought' of the country on the subject of our continental policy; reiterates the uniform utterance of the authorities and citizens of Minnesota ' in anticipating an adjustment of the relations of the United States and all the British provinces on this Continent on a basis of mutual interest and goodwill;" does 'not deny the expediency of a revision of existing stipulations, but always in the interest of further freedom, not additional restricuon of commercial intercourse.' . . . From these several expressions of sentiment touching our commercial relations with our neighbours, we look for an amended Treaty that shall correct any imperfections that time has shown to exist I ! 'i . f; m ■ a B>i' 1 j) K:l ; - w, 1 m^ tiflK >;, $BI|n ',;■ »ll i ■ £■ in tlio praacnt Treaty, and, at tlic Haniu time, secure and extend tlie real benefits that have already Hccrucd tu l)uth coiuitrirs under tlie existing Treaty." Her Majesty's Ciovernincnt arc (juite willing to reconsider the Reciprocity Treaty in conjunction with the (ioverntncnt of the United States, to negotiate for a renewal of it, and so to modify its Icrnis as to render it, if possible, even more beneficial to both countries than it has hitherto been. Hut Iwforc any incKlifiratioiis of that Treaty can be considered, Ilcr Majesty's Government must be inrornu'd whether the notice given by Mr. Adams, in terms so peremptory, is intended to put an end to the Treaty, or whether it leaves open the door to negotiation. In tiie former case Her Majesty's Government can only regret that relations which, by conciliatory ('()mmunication.s, might be rcndere(f more intimate, more friciKlly, and more beneficial, siiould be broken and interrupted by the Government of the United States. In the latter case you will ask .Mr. Seward to inform you in detail of the points upon which modification of tiie Treaty is desired. You will, in this case, communi- cate with the Governor-General of Canada, as well as report to Her Majesty's Government, before you express any <)|)inion to Mr. Seward upon the suggestions he may make. No. 4. Mr Burnlry to Earl Russell. — {Riceivcd March 25.) (Kxtract.) Washimjton, March 9, 1865. MR. SEWARD requested me to say to your Lordship that, with a view of still further inanjjurating a more fi-iendly policy with Her Majesty's Government, they were j)orf;tlly uiljiiig, is the season advanced, to enter into negotiations for a remodelling of the Reciprocity Treaty on terms which might prove, he hoped, advantageous antl beneficial to both parties. I communicated by to-day's mail with the Governor-General of Canada, on the subject. No. 5. Sir F. Bruce to Earl Russell. — (Received June 23.) (Extract.; Washington, June 7, 1865. THE illness of Mr. Seward and the pressure of business thrown upon this Government by the assassination of the President and the sudden collapse of the Confederate Government, have made it impossible to execute hitherto your Lord- ship's instructions to obtain a statement of the points in the Treaty which the United States wish to submit to fresh negotiation. m. No. 6. Earl Russell to Sir F. Bruce. Sir. Foreign Office, July 8, 1865. I HAVE to acquaint you that the Secretary of State for the Colonies has suggested, and I have expressed my concurrence in the suggestion, that the Governors of the Lower Provinces of British Nortli America should be placed in communication with you, in order that they may furnish you with such information as you may require when the negotiation for a renewal of the Reciprocity Treaty takes place. I am, &c. (Signed) RUSSELL. f } ii V^ NaT Sir F. Bruce to Earl Riufell.—{R,erivetl October 10.) wiu \i' T"" t"J"r'<^?:^«t"Py«>fa valual.lr Rr,K>rt fn.m Mr. Ponnul Wilkms on the proceedings of the Tra.fo Convrntion at Detroit, and on the c,x»»e, which have innucnccd this country in the course they have pursue.! wi'h refercncf to the Reciprocity Treaty. Your Lordship will see that they an- inainlv of a political character. I liave,'&r. (Signedl KUKDKRICK W. A. BRrCF. Indosure in No. 7. Con/tuI Wilkins In Sir F. Jlnirf. (Extract.) Si . Uui , Septtmhrr 1 , \>^i\^. I HAVh cndeavoircd to ascertain the proper vahic to he att.'uhed to the Convention which met at Detroit in Julv l;\st, an. I in whic: the ^ tion of Treaty arrangements with Canada baa been UHcd by politicianB for their own advancement. It will tliererore be perceived that whilst in the Detroit Convention the Chicago and WcHtcrn DclegateH went cither indifTcrent or unprc|>ared, those from New York State, made up uf politicians and mcrchantii, hud been well educated in the school of opposition. On bchair n( the hitter, it was argued that no Treaty should lie mode with unFriendly people, nml hints were thrown out that annexation ot Canada to the United 8tat<-s must follow the abrogation of the Treaty. I found also that the merchants of New York State urged on the Chicago Delegates that oven if the Treaty wore a benefit to the West, the injury it inflicted on their best ciiHtomers was of greater moment than the value it was to them. But it must l>e understood that whilst 1 do not consider the proceedings of this Convention, as reprcscntirig national views, are important, yet their value can scarcely be estimated as having had the eflcct of directing the public attention to the great importance of the question in the Western States. [ visited the Board of Trade several times and saw the merchants in the city. It was one general topic of discussion at that time, and although I was by no means surprised to iind a bitterness against Canada very general, I certainly was surprised to hear the abrogation of the Treaty defended on the ground that it was disadvantageous to the West. No. 8. Sir F. Bruce to Earl Russell. — (Received November 20.) My Lord. Washington, November 6, 1865. ON seeing the inclosed notification in the newspapers, I thought it advisable to ask Mr. Seward whether it was merely an administrative measure called for by the approaching expiration of the Reciprocity Treaty, or was intended to be a declaration of the Government against the renewal of the Treaty. Mr. Seward stated that he was glad I had asked him the question in order that the import of the notification might not be misapprehended. He said that the question of the Treaty remained exactly as it was, and that the notification was not based on any action of the Cabinet, but was issued by the Secretary of the Treasury as an administrative act which could not be legally deferred. I have, &c. (Signed) FREDERICK W. A. BRUCE. Inclosure in No. 8. Circular to Collectors of Customs and others. Treasury Department, October 20, 1865. I HAVE received information from the Secretary of State that official notice was delivered hy our [Minister at London, on the 17th of March, 1865, at 2 o'clock p.m., to the British Ciovernnient, of the termination of the Reciprocity Treaty between the United States of America and Her Britannic Majesty, concluded the oth of June, 1854, in conformity with the provisions of the said Treaty, and of the joint Resolution of Congress, approved January 18, 1865. You are hereby instructed that the operation of the Treaty will cease on the expiration of twelve months from the time at which the notice was given. , (Signed) HUGH McCULLOCH, ;r . . Secretary of the Treasury. Xv •tyr pn M No.n. -, ; . ^'iV F. Rruee to the EnrI of Clarfndon.—^R'^rnrtti D'tnnher Irt.") MM. liAL I arrivcil horr Irom Canadn, niid pass.d tlur, ,la\s «i WaslmiMon, for the imrpospor a.scortainin>; thr coiirhc it wnn l)e»(l lu niirsiic with nftrinre lo the HcfipriK-itv 'Prraty. It has htuii siif;fj»«st«'il, as this <|uc^tii)n would lie l•n.ll^hl liofopr tho Committro of Kii.aiic'c ill coiincrtinii with n-vtim • anaiiijrinciits. ihat ilio attiinpt -.liniild W made toohtaiii iTsoliilions m-onniu'ii(liiiy; tin- i-xtciit 'd tot'on-ress in a plcil, and lie will all.iid ;,| NVMshin-jion, if re(|iiested to do so by the Committee, in onicr to jrive expianatii.ii.t tondin_s? to prove the expedieney of delay before determining; the preseiil anansoinenfs. We further a<:;rrcd that "it would be inc\pcdiii;t to r.iake i\\\\ oiH( iai o\ertur« on the llecinroeity 'J'reaty until the experimciu of ol,|;iii,i|,o- an i sleiision has be-n tried, or until tliere is reason to believe that the I'tuteJ Slates' (if)\ernnuMit would profess, in reply, a readiness to negotiate. The S:eretary of the Treasury appears to be hoslil' to tiic e\c!upt;nn - from duty secured liy the Treaty. lie arijues that by mutual h;;islaiioii the refpiiremenls of the trade beween the United ^^tales and the pro\ineis enuld be met. ^ Mr. Clalt oliserves, that if time were alfordcd to earrv the Confeder.ilioii, perhaps it micfht be clfectcd ; but that it was impossible, as ioi!<; as the provineos had distinct Legislatures, to expect similarity of legislation. No. 10. The Earl of Clarendon to Sir F. Bruc. (Extract.) Foreigu Office. January 13, l«r.O. 1 IIAVP^ been in communication with the Secretary of State for theCohinial Department on the subject of your despatch of the 4th ultimo, reg;ardin<;- the course which it may be desirable for Her Majesty's Government to pursue in view of the termination of the Reciprocity Treaty of 1854 between this country and the United States. Mr. Cardwell has expressed an opinion, in which I concur, that it is not advisable that you should be instructed to propose to the (lovernmeut of the United States the Articles of a fresh Treaty al the |)resent moment ; but liial ii uduld be desirable that you should take any measures in your power to obtain the continuance for a time of the present Treaty; or, failing in that object, that you should receive, for the consideration of Her Majesty's Government, any i)ro])osals which the Government of the United States might wish to make. 1 have accordingly to instruct you to take such steps as may appear most expedient to you for procuring a prolongation of the Treaty; and you will commu- nicate with the Government of Canada on this subject, who will doubtless inform you of the nature of any suggestions which the Council apjiointed by the IJritish North American provinces may subn^it to Her Majesty's Government in regard to it. No. 11. Sir F. Bruce to the Earl of Clarendon. — [Received February 26 ) My Lord, Washingi j.., February \l, \S6G. YOUR Lordship is aware that in view of -the- opposition manifested in this counTrv to the renewal of the Reciprocity Treaty, it was decided that ai Mttempt [259] C I! 1 - M K t 4^ 8 . if should be made, by conferences with the Revenue Commissioners and the members of tlic Finance Committee of tlie House of Representatives, to come to an under- standinfj on tiio riseai and comnnrrial »]uestions that would arise on its abrojyation. By this course it was hoped that such a basis might be laid for reciprocal legisla- tion as would j)reveiit the commercial interests which have grown up under the 'I'roaty from material injury, and as the Legislatures of the different provinces might be inclined to accept. With this object Delegates from Canada, New Brunswick, and Nova Scotia proceeded to New Yorl', and put themselves in communication with the Revenue Commission. The subject was discussed at considerable length, the Chairman. Mv. Welles, heing in favour of the negotiation of a new Treaty, and of such equitable and mutual arrangements as would tend to discourage smuggling, and would place on an otpmlity the producers of the same articles on theoppositesidesof the frontier between the United States and the Provinces. On arriving at Washington tlie Delegates met with a friendly reception from Mr. McCullocli, the Secretary of the Treasury, and by him were placed in commu- nication with the Finance Committee, of which Mr. Morrill is Chairman. They were aMe to impart mucii valuable information on tlie magnitude of the commercial interests involved, and the impression produced by their statements led them to hope that the scale of duties to he imposed would be adopted with a view to revenue, and that the |)rotcction alfurded to the American producer would not exceed what was required in order to place him on an equality with his provincial competitors. They considered that these objects would be attained by a scale of duties calculated at 10 per cent. Tliese hopes luifortinately were not realised, as your Lordship will gather from the inclosures to this despatch, and as the Delegates were of opinion that there was no immediate prospect of such an arrangement being made as they could expect to carry through their Legislatures, they preferred leaving the question to be dealt with by the Committee without coming under pledge as to the course that would he taken in the provinces. , I am inclined to think that, independently of the strong party in Congress /which adopts tlie Protectioiiist theory, the desire to impose exorbitant duties may jiibe attributed in part to a feeling that the extent of the operation of the Internal Revenue Law on the industry of the country is very imperfectly understood. The / Report of the Kevenue Commission shows that even the present high tariff does not / place the American producer on a level with the foreign manufacturer. I judge / from conversations I have had with some of the leading financiers that they feel the I disadvaiitage under which their uncertainty on this point placed them, and I am I not without hopes that further investigation will be called for by the Committee, ! and more equitable arrangements adopted, if it turns out that the duties proposed will be prohibitory. / The exclusion of the Southern Representatives, however, throws an exceptional / power in such matters into the hands of the Protectionists of the north and centre ; of the country, and their ranks are swelled by the agriculturists of the North- I Western States, who dread the competition of the wheat and barley growers of Canada. I have, &c. (Signed) FREDERICK W. A. BRUCE. Inclosure 1 in No. 11. Tlie Provincial D«/<-"»/to» to Sir F. Bruce. Sir, Washington, February 7, 1866. WE have the honour to inform your Excellency that our negotiations for the renewal of a reciprocal trade with the United States have terminated unsuccess- fully. You have been informed from time to time of our proceedings, but we propose briefly to recapitulate them. On our arrival here, after consultation with your Excellency, we addressed ourselves, with your sanction, to the Secretary of the Treasury, and we were by him put in communication with the Coinmittee of Ways and Means of the House of Representatives. After repeated interviews with them, and on ascertaining that no renewal or extension of the existing Treaty would be made by the American autho- ■w \ latevcr was c which we dosire*! arraiij;i'nic'ii(s to be nia'lr, the incloscil pafHT, rities, but that whatever was done imisl l)e by legislaiion. we siibjinttfcJ, as the basis upon marked A. In reply, we received the Meiiior.uidiini IVom the ('oinniillee, <^f wliicli a ccijn' is inclosed (U). And lindini;;, alter discussion, that no iuiporlaiit moililications in tlieir views could be obtained, and that wc were rcipiired to consiiler llifir pmposition as a whole, we Iclt ourselves under the necessity of lieiliniiifj; it, which was dune by the Memorandum (also inclosed) C. It is proper for us to explain the grounds of our final action. It will l)e observed that the most important |)r()visions of tiie expiring; Treaty relating to the free interchange of the products of the two countries \ ere entirely set aside, and that the duties proposed to be levied were almost prohibitory in their character. The principal object for our entering; into neijotiations was tiierefore unattainable, and we had only to consider whetiier the minor jioints were such as to make it desirable for us to enter into specific engagements. These points are three in number. With regard to the lirst, the proposed mutual use of the waters of Lake Micliigan and the St. Lawrence, we considered that the present arrangements were suflicient, and that the common interests of both countries would prevent their disturbance. We were not prepared to yield the right of interference in the imposition of tolls upon our canals. W'c believed, moreover, that the privilege allowed the United States of navigating the waters of th«! St. Lawrence was very much more than an equivalent for our use of Lake Michigan. Upon the second point, providing for t'.ie free transit of goods under bond between the two countries, we believe tliat in this respect, as in the lorm'-r case, the interests of both countries would secure the maintenance of existiiu',' regnialions. Connected with this point was the ilcmand made I'or tlie abolition ot tie free ports existing in Canada, which we were not disposed to concede, csiK'cially in view of the extremely unsatisfactory position in which it was proposed to piavc ihv, trade between the two countries. On both the above points we do not desire to be understood as staling that the existing arrangements should not be extended and placed on a more permanent basis; but only that, taken apart from the more important interests involved, it did not appear to us at this time necessary to deal with them exceptionally. With reference to the third and last point, the concession of the right of fishing in provincial waters, we considered the equivalent proposed for so very valuable a right to be utterly inadequate. The admission of a lew unimportant articles free, with the establishment of a scale of high duties as proposed, would nor, in our opinion, have justified us in yielding this point. While weregret this unfavourable termination of the negotiations, we are not without hope that, at no distant day, they may be resumed with a better prospect of a satisfactory result. We have, &c. (Signed) W. GALT, Minister of Finance, Canada. W. P. IIOWLANI), Poslniaster-General, Canada. W. A. HENRY, Attorwy-Gcnrral, Xova Hcotia. A. J. SMITH, Attorney-General, New Brunswick. 1866. for the uccess- ut we Inclosure 2 in No. 1 1 . Memorandum A. THE trade between the United States and the Hrilish provinces sliould. it is believed, under ordinary circumstances, l>e free in rcrerence to tiieir nalural jucidiic- tions; but as ii:ternal taxes exceptionally exist in t!ie United States, it is now proposed that the articles embraced in the Free List of the Rccipiocity I n aty should continue to be exchanged, subject only to such duties as may be equivalent to that internal taxation. It is suggested that both parties may add certain articles to those now in the said list. With reference to the fisheries aud the navigation oi the internal waters ol the Continent, the British provinces are willing that the existing regulation should continue in efTect; but Canada is willing to enter into engagements with the view of improving the means of access to the ocean, provided the assurance be given ^'^ 10 that llic ti;(l • (>r llio Western Slates will not he diverted from its natural channel by lci;iJati()n : and iT the Unitcil States are not prcparcil at pres»;nt to consider the {>;cn(i;il opening;- oltlicir coasting trade, it wonid appear desirable tliat, as re;;ar(ls tiio iiitcriiai waters oC tl:e Contineiil. no distinction shonld be niaduIations should exist on both sides, and be defined by law. Canada is also prepared to nialie Iter i ateui laws similar ^n those of the United States. Iiielosure •'] in NO. I I. .\lr riiiuhiiu B. SI ilN respoi.se lo lit.- .■\bnioraiidiini of tiie Honourable .Mr. Gait and his associates, ionourable .Mr. Smitii, lloiiuuiuble Mr. Henry, and the Honourable .Mr. Howiand, i,e t'ommittce of Wa\s and Means, with the approval of the Secretary of tlic , rieasiirv , iwc pit pared to recommend to the House of Representatives, ibr their atioptioii, a law j)roviiiin^' I'or the continuance of some of the measures embraced in ti'.e Mecijiioiii V Tr. :ity, soon to expire, viz.: For the use and privilenes enjoyed / now luuier the .said Treaty in the waters of Lake Michifjan, provided that the same : rij^iits and privile^^xs are conceded to the citizens of the United States by Canada in tlie waters of Si. i^.iu rence and its canals as are enjoyed by British sui)jeets, without , tiiscriniiuation a:; to tolls, and charging rates proportional to canal (li.stancc ; also for tliC free transit ol' goods, wares, and merchandize in bond, under projjcr regula- tions, by railroad across the territory of the United States to and from Portland and the Canada line; provided equal jjrivilcges shall be conceded lo tiie United Slates iiom Windsor or Port Sarnia, or other Western points of departure toBuflalo or Ogdcnsburg, or tiiiv other points eastward, and that the free porlr, established in j the provinces shall be al)olished ; also that the bounties now given to American \ lishermeii shall be repealed, and duties not higher imposed upon lish than those mentioned in St licdiilo A, providing that all the right of fishing near the shores existing under the Treaty hereto"ore mentioned shall be granted and conceded by the United States to the jirovinces, and by the provinces to the United States. It is also further proposed that the following list of' articles shall be mutually free, viz.: Burr millstones, unwrought; cotton ana linen rags, firewood, grindstones rough or finished : gypsum, or plaster, unground. ScHEDLLK A. Fish — Mackerel, 1 dollar 50 cents per barrel ; herring, pickled or salted, 1 dollar per barrel; salmon, 2 dollars 50 cents per barrel; shad, 2 dollars per barrel ; all other fish, pickled, 1 dollar 50 cents per barrel ; provided that any fish in packages other than barrels shall pay in proportion to the rates charged upon similar lish in barrels. All other fish 4 cent per lb. As to the duties which will be proposed upon the other articles included in the Treaty, the following arc submitted, viz. : Animals living, of all sorts, 20 per cent. ' ad valorem; ajiples and garden fruit and vegetables, 10 per cent, ad valorem; barley, 15 cents jjcr bushel; beans, except vanilla and castor oil, 30 cents per bushel ; beef, 1 cent per lb.; buckwheat, 10 cents per bushel; butter, 4 cents per lb.; cheese, 4 cents per lb.; corn (Indian) and oats, 10 cents per bushel; cornmeal (Indian) and oatmeal, 15 cents per bushel; coal (bituminous), 50 cents per ton; all other coal. 25 cents per ton ; flour, 25 per cent, ad valorem ; hams, 2 cents per lb. ; hay, 1 dollar per ton; hides, 10 per cent, ad valorem; lard, 3 cents per lb.; lumber (pine), round or log, 1 dollar 50 cents per 1,000 feet; pine, sawn or hewn, 2 dollars 50 cents per 1,000 feet; planed, tongued, and grooved or finished, 25 per cent, ad valorem; spruce and hemlock, sawed or hewn, 1 dollar per 1,000 feet; spruce planed, finished, or partly finished, 2L per cent, ad valorem; shingle bolts, 10 per cent, ad calurem ; shingles, 20 per cent, ad valorem; all other lumber — of black walnut, chestnut, bass, white wood, ash, oak, round, hewn, or sawed, 20 per cent, ad valorem; if |)laned, tongued, and grooved, or finished, 25 per cent, ad valorem ; ores, 10 per cent, ad valorem ; peas, 25 cents per bushel ; pork, I cent per lb. ; seed (timothy and clover). / ^^'!i J in the Ir cent. *^ jarley, ; beef, ihcese. In) and \ coal, I dollar ] round Its per ppruce Jed, or l/o»'em ; 1 bass, taned, Int. ad lover), / I 11 20 j)er cent, ni ralorrm ; trees iplant ind shrnb), omatncntal and fruit, 15 per cent. ad valorem ; tallow, 2 cents per lb. ; >»lieat, "JO cents per bushel. Inclosurc 1 in No. II. Memorandum C. Washington, Fi-brnnri/ 0, IPGt). IN reference to the Memorandum received from the Committee of Ways an not such as they can recommend lor the adoption of the respective Ix-gislatures. 'i'he imposts which it is proposed to lay upon the productions of the Uritisii provinces ou tlicir entry into tiie markets of the United States, are such as, in tlieir opinion, will be in some cases prohibitory, and will certainly seriously interfere witii the natural course of trade. These inij)osts are so nuicli beyond wiiat the delegates conceive to bean equivalent for the internal taxation of the United States, that tlxy are reluctantly brought to the conclusion that the Committee no longer desire llie trade between the two countries to be carried on upon the principles of reciprocity. With the concurrence of the British .Minister at Washington, they arc th'-reforc obliged respectfully to decline to enter into the engagement suggested in the Memo- randimi; but the present views of the United States may soon be so modified as to permit of the interchange of the productions of the two countries upon a more lil)eral basis. No. 12. Mr. Elliol lo i[r. Hammnnd. — {Received March 7.^ Sir, Doirning Strrei. March 6, 1800. 1 AM directed bv Mr. Secretary Cardwell to transmit to you, for the considera- tion of the Earl of "Clarendon, the accompanying copy of a despatch from the Governor of Canada, inclosing a copy of a Proclamation warring all citizens of the United States that their right to fish in the insliorc waters of Canada will cea.se with the termination of the Reciin-ocity Treaty on the 17th of March. I am, &c. (Si gned) T. KRKDK. KLLIOT. Inclosure I in No. 12. Viscount Monck to Mr. Cardwell. Sir, Government House, Montreal, February I!), 18CG. I HAVE the honour to transmit, for your information, a copy of a Proclamation warning all citizens of the United States that their right to fish in the inshore waters of Canada will cease with the termination of the Reciprocity Treaty on the 17th of March. I nave, &c. (Signed) MONCK. Inclosurc 2 in No. 12. Proclamation. Province of Canada. . , .,. , o^ ^ u •*. :„ „„^ VICTORIA, by the grace of God, of the United Kmgdom of Great Britain and Ireland Queen, Defender of the Faitii, &c. To; all to whom these presents shall come, or whom the same may concern, ^'^"^ Whereas a certain Treaty was made between Her Majesty and the United States of America on the 5th ol' June, 1854, providing for reciprocal trade : 'I'i ^t>* ^ 12 And wliereas the United States of America have, in accordance with the terms of the saici Treaty, given notice for the termination thereof; and whereas in conse- queiice ofsiicli notice the -iaid Treaty will cxijire on the 17tli day of March, ISfiG : And whereas under the said Treaty many persons, citizens of the United States of America, ha\(' invested moneys and fitted out sliips for the purpose of carrying on tliu (inshore) fisheries within tlic territory of Canaila under tiie said Treaty : And wliereas they may be unaware that their righr to carry on such inshore fisheries will end on the said 17th day of March : We, therefore, \u our great desire to prevent injury or loss to our loving subjects, or to the citizens of a State with which we are happily in amity, do in this our Royal Proclamation caution and warn all persons not subjects of our realm, that after tiie said 17th day of March next no vessels owned and manned in the United States of America can pursue the insliore fisheries without rendering them- selves liable to the confiscation of their vessels, anti such other penalties, pecuniary and pcisonal, as are by law imposed. K<: i llj f No. 13. Sir F. Bruce to the Earl of Clarendon. — (Received March 9.) My Lord, Washluyton, February 22, 1866. I HAVE the honour to inclose copy of a note T addressed to Mr. Seward, stating the course Her jNIajesty's Government would be prepared to take if the Government of the United States were disposed to negotiate a fresh Reciprocity Treaty in the place of the one which expires on the 17tli of ne.\t March. Also a copy of Mr. Seward's reply, in which he dwells on the sentiment of Congress, and the constitutional objections to Treaties of this nature as the reasons which induce the United States' Government to decline negotiating, and to leave the Question of reciprocal trade with the provinces to be dealt with as Congress may ecide. I have informed Lord Monck of the result of my communications with this Government on the subject. I have, &ic. (Signed) FREDERFCK W. A. BRUCE. Inclosure 1 in No. 13. Sir F. Bruce to Mr. Seward. Sir, Wanhington, February 16, 1866. AS the Reciprocity Treaty is about to expire, I am anxious to report in a formal shape the disposition of the (xovernment of the United States with reference to the important question of its renewal, and I therefore submit for consideration the following proposals, which embody the views of Her Majesty's Government with resjicct to it. Her Majesty's Government have seen with much satisfaction the increase of the trading relations l)et\veen tiie United States and the British provinces which has grown up under tlie Treaty, and the beneficial results of the stipulations it contains, by virtue of which each Contracting- Party enjoys tiie uninterrupted use of the facilities of transpart to tiie seaboard possessed by the other, and participates side by side in the fisheries, witiiout restriction or interference. Her IMajesty's (lovcrniuent would be well content to renew the Treaty in its present form. At the same time they are reiidy to reconsidci the Treaty in conjunction with the Goveniuicnt of the United States, if such ix course would be agreeable to them, and so to modify its terms as to render it, if possible, more beneficial to both countries tiian it has hitherto been. If the Government of the United States should feel disposed to adopt the latter course, an arrangement of a provisional character might be entered into with a view to afford time for fresh negotiations, and I should take pleasure in submitting e only ease in which tiio E.xecutivc Department lias, by ne<2,()tiation, assumed a snper\ ision'ofanN (iiie.-lii)n of either commerce or finance. Kven in that case tin' Kxeculive Department did little more than to make a Treaty, the details of w.ieii had been virt'-.allv matured beforehand in the Congress of ti-.e United. States, and sanction was given to tin- Treaty afterwards by express legislation the question of continuing that Treaty involves mainlv subjects oi me spceii! character wiiich I have bel'ore described. Carctul inquiry made dnring tlie reees ; ( F Congress induced the I'resident to ' believe that there was tii n tio such harmony of public sentiment in 'avonr of the extension of the Treaty as would encourage him in directing negotiations to be opened. Inquiries made since the re-assembling of Congress conlinneil the belief then adopted that Congress prefers to treat the subject tak.' such steps as might appear most expedient for procuring a prolongation of the Treatv, and you were directed to cominunicaU' «)n the subject with the (Jovcrnor of Canada. Mr. Gait and Mr. I lowland, the Postmaster-CJenoral of the Province of Canada, proceeded to Washington for the purpose of conferring with you, and of urging through you on the (.lovernment of the United States the importance of postponing the termination of the Reciproiity Treatv. so as to afford time for negotiation. The delegates from the British North American Colonies, after repeated inter- views with the Committees of Ways and Means, of which Mr. Morrill was the chairman, in which they ascertained that no renewal or extension of the existing Treaty would be made by the American authorities, but that whatever was done must be done by legislation, subniittetl a Memorandum to the Committee as the basis upon which they desired arrangoments to be made. This Memorandum was not accepted by the Committee, which drafted a counter-Memorandum declaring its readiness to recommend to the House of Repre- sentatives for their adoption a law providing for the continuance of some of the measures embraced in the Treaty. The delegates considered that the proiMisals of the Committee were unacceptable : and iinding. after tliscussion, that no important mollifications in tiie views of the Committee could be ..btained, declined to accede to the counter-proposal, and the negotiations terminated. As yon considered, from tiie t(Mms of this counter-proposal, that the Committee desired to break off negotiations and not to eiitrrtain any proposal for the continua- tion of the Treaty, you deemed it advisable to addn'ss a note to Mr. Seward, expressing the readiness of Her Alajcsty's Covernmeiit to renew the existing Treaty or to reconsider the Treaty in conjunction with the Government of the United States, if such a course woulil be agreeable to them, and so to modify its terms as to render it, if possible, more beneficial to both countries than it had previously been. You suggested at the same time to Mr. Seward, that if the Clovcmment of the United States felt disposed to adopt the latter course an arrangement of a provisional character might be entered into with a view to afford time for fresh negotiations, and expressed your readiness to submit to the consideration of Her Majesty's Government any proposal to that effect which Mr. Seward might communicate to you. In reply, Mr. Seward stated that careful inquiry during the recess induced the President to believe that there was no such harmony of public interest in favour of the extension of the Treaty as would encourage him in directing negotiations to be opened, and that inquiries made since the re-assembling of Congress confirmed the belief that Congress preferred to treat the subject directly, and not to approach it through the forms of diplomatic agreement. All communications had accordingly been submitted to the consideration of the proper Committees of Congress, and the question of extending a system of reciprocal trade with the British provinces on the United States' frontier awaited their decision. The attempts thus made, whether to renew the Treaty, to conclude a new one, or to extend the time for its expiration, in order to admit of negotiations, having failed, and the Treaty having now expired, it becomes the duty of Her Majesty's Government to consider what course they should pursue. By the termination of the Treaty of 18.}4, two important and undoubted rights of this country, the enjoyment of which, through the operation of the Treaty, were temporarily ceded to citizens of the United States, revert absolutely to Uie British Crown. Those rights are. first, the exclusive right of fishing by its subjects on the sea-coasts and shores, and in the bays, harbours, and creeks, of the British posses- sions of North America, except in so much as certain restricted privileges may have been conceded by the Convention of 1818 to American citizens ; and, secondly, the exclusive right of navigation by its subjects of the River St. Lawrence, and the canals communicating between tne great lakes and the canals in Canada. With regard to the navigation of the St. Lawrence and the canals, it is not the intention of Her Majesty's Government to interfere for the present with the privileges which the citizens of the United States have enjoyed during thf; time the Treaty has been in operation. As regards the privileges of fishmg and of landing upon the shores and coasts of Her Majesty's possessions for the purpose of drying their nets and curing their fish, which have been enjoyed by citizens of the United States under the Treaty, Her Majesty's Government are very desirous to [269] ' D '4-^ 16 prevent the injury and lusu which may be inflicted upon the citizens or the United States by the sudden withdrawal of their privileges. They are, however mow that the Treaty has fomo to an end), bound by the Act C>9 (leorgc III, cap. 38, as well as by the Acts of the Lefjisl.-itures of New Brunswick ami Nova Scotia, which have obtained the Impori.il s.iiiction. By those Acts, which were only sus|)ended during the existence of the Treaty, severe penalties, extending to confiscation of their vessels, with the carj^oes, tackle, stores, &ic., are inilicted upon all persons, not British subjects, who siiail lie found iisliing or to have lioen fishing or |)rcparing to fish within the distance rovinccs to enforce the law, and until those Acts are modified or repealed, citizens of the United States will be prohibited from fishing in British waters, from landiiif;- on British territory for the purpose of drying their nets and curing their lisli, and will be subject to all the penalties which the violation of the law entails. I'nder these circumstances, it has been the duty of Lord Monck to issue a Proclamation infcn'ining all persons who may bo concerned of the state of the law, and warning them of the penalties that they incur by its violation. llcr Majesty's (iovernment are not insensible to the great inconvenience and losses to which the exclusion of .American citizens from privileges so long enjoyed by them, and in which capital to a considerable amount has been invested, and labour to a large extent hjis been employed, must unavoidably subject a great number of persons. They lear that so long an eujoymcnt of those privileges may induce those who have been engaged in fishing ventures on the coasts of the British possessions to defy the law and carry ou their operations, thus exposing their property to seizure and confiscation. A feeling of irritation may thus be engendered in the North- eastern States of America against the Braish Government and nation which Her Majesty's Government would deeply regret, and which might lead to serious ^misunderstandings between the two Governments. Her Majesty's Government have the satisfaction of feeling that they have done their utmost to prevent these consequences. They have declared their readiness, and they are still ])repai'cd, to come to any arrangement with the United States, either by a continuation or a renewal of the Reciprocity Treaty, or by entering into new engagements by which the privileges hitherto enjoyed by American citizens might be still secured to them. The Government of Washington has declined to accede to these proposals. Her Majesty's Government cannot therefore accept any responsibility for the results which they fear may arise from the termination of the Reciprocity Treaty by the act of the United States' Government themselves — results which they have done their utmost to avoid, and which, if they do occur, Her Majesty's Government will most sincerely deplore. No. 16. Sir F. Bruce to the Earl of Clarendon. — (Received March 28.) (Extract.) Washington, March 9, 1866. YOUR Lordship is aware that a Bill has been introduced into Congress by Mr. Morrill, the Chairman of the Ways and Means Committee, which aims at imposing an exceptional scale of duties on provincial productions, with provisoes making the duration of tiiis scale contingent on tho continuance of the privileges accorded by the Reciprocity Treaty to the inhabitants of the United States, and empowering the President, if enjoyment of them is withdrawn, to put an end to the special duties in whole or in part. There is a strong opposition to this Bill, on the ground, among others, that a power of this kind should not be confided to the Executive, and 1 think it will probably not pass in its present shape. |866. less by lims at jvisoes irileges 3S, and to the I that a lit will ^^ »7 No. 17. Sir F. Bniie to the Earl of Claiendon. — {Received Afyril \,) (Rxtrart.) Wnshiiuilun. M„rch \\. ISOfi. THK Bill introduced l)y Mr. Morrill into the llimsp ol' H«>pn'siM»tati\os for regulalii.g trade witli th<« Hritisli provinces lias been llirown o\it. The an\i'nilmeiits introduced into t while under under discussion sho\V((l llial the ("onunittee had proposed a lower scale of duties than the Mouses were willing- accept. The tone ol debate was in favour of protection to vverv branch of production, and opposed to any special tarifl" arrangements on th,' northern frontier. The failure of tliis Hill is not be rcgictlcd. The duties imposed on lisli ai\(l on the principal productions of Canada would not haveh(!'ii iMnsiden'd in tiie provinces as reasonal)le when coni|)are(l with tin' advantai^es secured to .\nu-rican interests. The proviso, moreover, which empowered the I'resiilcnt to suspend, in whole or in part, these exceptional duties, .•iiid to leave the articles to be dealt with under the provisions of the general Tariff, in the event of the provinces not contiiuiint; to the Americans the enjoyment of the ric^hts conl'errei! lis the Uceiproeitv Tre.ity, coupled \'. ith the I'ai't llial tlie arrais^cmciit. beiiiu' made by liill, is capa! Ic at any moment of being altered or put an end to, introduceil -.in element ilaii.ty which wouhl have 'jjjeratcd prejudicially on the couuiiercial interests allecled b) ii. I; 1 J » il I ^' III I^B 1^ ■ HH 1 wOB^m X '1 IHHij H 1 • 3 :? n SB a s. it i c« 5. u. 5 5= ^ 8 3 r s- S ^ IN 00 a - - ^ w a> • 3