640 COBRESPONDENCE, ETC. 



perpetual irritation and danger to the relations of this country and 

 the Dominion with the United States. 



The Canadian Government itself took the initiative in suggesting 

 that a Joint British and American Commission should be appointed, 

 with a view to settle the disputes which had arisen as to the interpre- 

 tation of the Treaty of 1818, but it was certain that however desir- 

 able it might be, in default of any complete settlement, to appoint 

 such a Commission, the causes of the difficulty lay deeper than any 

 question of interpretation, and the mere discussion of such points as 

 tne correct definition of baj r s could not lead to a really friendly 

 agreement with the United States. It was necessary, therefore, to 

 endeavor to find an equivalent which the United States might be 

 willing to give in return for the fishery privileges, and which Great 

 Britain, having regard both to Imperial and Colonial interests, could 

 properly accept. Her Majesty's Government are well aware that 

 the arrangement which would have been most agreeable to Canada 

 was the conclusion of a Treatv similar to the Reciprocity Treaty of 

 1854, and a proposal to this effect was pressed upon the United States 

 Commissioners, as you will find in the 36th Protocol of the Confer- 

 ences. This proposal was, however, declined, the United States Com- 

 missioners stating " that they could hold out no hope that the Con- 

 gress of the United States would give its consent to such a tariff ar- 

 rangement as was proposed, or to any extended plan of reciprocal free 

 admission of the products of the two countries." The United States 

 Commissioners did indeed propose that coal, salt and fish, should be 

 reciprocally admitted free, and lumber after the 1st of July 18T4; 

 but it is evident that looked at as a tariff arrangement this was a most 

 inadequate offer, as will be seen at once when it is compared with the 

 long list of articles admitted free under the Reciprocity Treaty. 

 Moreover, it is obvious from the frank avowal of the United States 

 Commissioners, that they only made this offer because one branch of 

 Congress had recently more than once expressed itself in favor of 

 the abolition of duties on coal and salt, and because Congress had par- 

 tially removed the duty from lumber, and the tendency of legislation 

 in the United States was towards the reduction of taxation and of 

 duties, so that to have ceded the Fishery rights in return for these 

 concessions would have been to exchange them for commercial ar- 

 rangements, which there is reason to believe may before long be made 

 without any such cession, to the mutual advantage of both the 

 Dominion and the United States ; and Her Majesty's Government are 

 bound to add that whilst in deference to the strong wishes of the 

 Dominion Government they used their best efforts to obtain a renewal 

 in principle of the Reciprocity Treaty, they are convinced that the 

 establishment of free trade between the Dominion and the United 

 States is not likely to be promoted by making admission to the fish- 

 eries dependent upon the conclusion of such a Treaty; and that the 

 repeal by Congress of duties upon Canadian produce on the ground 

 that a Protective Tariff is injurious to the country which imposes it, 

 would place the commercial relations of the two countries on a far 

 more secure and lasting basis than the stipulations of a Convention 

 framed upon a system of reciprocity. Looking, therefore, to all the 

 circumstances, Her Majesty's Government found it their duty to deal 



