"'On both the above points, we do not desire to be understood as
stating 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 this time
necessary to deal with them exceptionally.
"'With reference to the third and last point - the concessions 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 few unimportant articles free, with the establishment of
a scale of high duties as proposed, would not, in our opinion, have
justified us in yielding this point.
"'While we regret this unfavourable termination of the negociations, we
are not without hope that, at no distant day, they may be resumed with
a better prospect of a satisfactory result.
"'We have the honour to be,
"'Your Excellency's most obedient Servants,
"'A. T. GALT, Minister of Finance, Canada.
"'W. P. HOWLAND, Postmaster General, Canada.
"'W. A. HENRY, Attorney General, Nova Scotia,
"'A. J. SMITH, Attorney General, New Brunswick.
"'To His Excellency, SIR FREDERICK BRUCE, K.C.B., &c., &c., &c.'"
"'MEMORANDUM A.
"'The trade between the United States and the British Provinces should,
it is believed, under ordinary circumstances, be free in reference to
their natural productions; but as internal taxes exceptionally exist in
the United States, it is now proposed that the articles embraced in the
free list of the Reciprocity Treaty 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 and the
navigation of the internal waters of the continent, the British
Provinces are willing that the existing regulations should continue in
effect; but Canada is ready to enter into engagements with the view of
improving the means of access to the ocean, provided the assurance be
given that the trade of the Western States will not be diverted from
its natural channel by legislation; and if the United States are not
prepared at present to consider the general opening of their coasting
trade, it would appear desirable that, as regards the internal waters
of the Continent, no distinction should be made between the vessels of
the two countries.
"'If the foregoing points be satisfactorily arranged, Canada is willing
to adjust her excise duties upon spirits, beer and tobacco upon the
best revenue standard which may be mutually adopted after full
consideration of the subject; and if it be desired to treat any other
articles in the same way the disposition of the Canadian Government is
to give every facility in their power to prevent illicit trade.
