where he could not have expected me to hear it again in terms very highly complimentary.

I have done all I could respecting the railway matter and the fishing licences. The duke referred me to Mr. Elliot for their discussion, and he assures me that he is entirely satisfied and goes with me fully as to the sufficiency of the amount provided by Parliament in Canada for the railway, and also agrees as to the advisability of raising the licences to $2 per ton, and will represent both matters in this light strongly to the duke. I will have no difficulty with the duke, who treats me with the greatest unreserve in all questions and is very pliable; but the Chancellor of the Exchequer in the one case, and Lord Stanley in the other, who have to be brought to concur in the policy on both questions, had previously agreed upon them adversely to our wishes, and it is impossible to do anything that requires accord in two departments during the holidays. The mission was too long delayed. I ought to have been here a month earlier,

Mr. Cyrus Field called to see me, and after a conversation upon the Reciprocity Treaty, said it would be of immense value if I would send him a note which he could enclose to Seward and Morgan, which, to my surprise, I found in the morning papers. It will, however, do no harm. I send you the letter and leader of the Star

upon it.

I think I have ascertained Mr. Galt's difficulty in coming with me. General Doyle tells me that Howe and his friends confidently relied upon Galt effecting with them the overthrow of your

It is oppor

Government, and I assume Mr. Galt was too deeply committed to present himself in London with me to counteract Mr. Howe's efforts.

I have sent the duke the report of your speech touching the United States matters to show him the friendly disposition towards that country which animates the Canadian Government. tune, and will do much good. I need not tell you the more than anxiety which pervades all circles here to avoid difficulty with the States. I do not think the Government have any intention of going out of office at present. General Williams tells me that Lord Mayo assured him he had not the slightest intention of going to Canada.

I forgot to mention that Mr. Watkins corroborates exactly my account of what took place between us, and is prepared to deal fully with that point in Parliament if it is brought up there. I must also tell you that Howe suggested, although he said he could not propose it, that a commission of three English gentlemen should be appointed to report upon Confederation for the information of Parliament, etc. This could, I think, only be done without compromising the Dominion by being suggested, or, rather, challenged by the Canadian Government in answer to the attacks on it. The effect in case of a struggle, i.e. if nothing can be done with Howe, would be to gain time and let us in N.S. down easily. I told Howe that, of course, I could not suggest it, and said it was, besides, open to the great objection that it would keep up agitation, and prevent him and his friends availing themselves of the present favourable opportunity of acquiring a position and influence to

serve the province. Write me fully by return post and give me suggestions for every alternative.—Yours faithfully,


4 o'clock, Saturday, April 1ith.-Mr. Elliot, after an interview with Lord Stanley, thinks the Foreign Office will agree to do away with those warnings, but is very much opposed to raise the licence beyond one dollar. I will exhaust every means with the duke on Monday.

Enclosed is a copy of my letter to the duke re Fisheries this date and of the roth, on the Intercolonial Railway.

Westminster Palace Hotel.

April 9th, 1868. MY LORD DUKE,—I am requested, by a cable telegram received yesterday from Sir John A. Macdonald, to press upon your Grace the advisability of agreeing to the proposal of the Canadian Government to raise the licences for fishing in Canadian waters to two dollars per ton. I may be permitted to remind your Grace that out of deference to the wishes of Her Majesty's Government a licence of fifty cents a ton was adopted two years ago, with the expectation that a new Reciprocity Treaty would be made between the United States and British America during that year, but on the distinct understanding that the licences should be for one year only. Under that arrangement 365 American vessels, with a tonnage of 19,355 tons, took, during 1866, licences at that rate in Nova Scotia, New Brunswick and Canada, now


comprised within the Dominion of Canada. Last year the licence was raised in Nova Scotia to one dollar per ton, and 269 vessels, comprising 13,929 tons, paid in that province one dollar per ton.

. The duty imposed upon our fish since the abrogation of the Reciprocity Treaty is on: Mackerel

$2 per bl. Herring (pickled or salted) $1 per bl. Salmon

$3 per bl. All other fish pickled in barrels £c. per lb. Your Grace will thus at once perceive that independently of the bounties enjoyed by American fishermen, it is impossible for our fishermen to compete with them upon those terms, and that while the United States refuses to negotiate a new Reciprocity Treaty, they could not complain if their fishermen were, by their own act, excluded entirely from Canadian waters, and they cannot, with any show of reason, object to the payment of two dollars per ton.

Instead of this measure being productive of any difficulty, it will, I believe, lead to the adjustment of commercial intercourse between Canada and the United States upon fair and mutually advantageous terms. The people of Nova Scotia, as your Grace is well aware, were very hostile to the adoption of a system of licences at all, and they will feel deeply grieved if the Dominion Government fail to obtain this concession of their interests. I hope, therefore, with a view to the settlement of commercial relations on a permanent and satisfactory basis betwen the United States and Canada, and for the purpose of conciliating the

people of Nova Scotia who are so deeply interested in this question, as also upon the ground of substantial justice, Her Majesty's Government will not hesitate to sanction this proposal.—I have the honour to remain, your Grace's most obedient servant,



Westminster Palace Hotel,

April 18th, 1868. MY DEAR SIR JOHN,-Since I wrote you on the gth instant I have spent three days at Stowe, when I had an opportunity of discussing matters fully with the duke. I think I satisfied him on the railway question, and he told me that as soon as he could communicate with the Chancellor he hoped to be able to send a message to you which I think will meet the case fully, viz. “that the Imperial Government are satisfied with the provision made by Canada if any of the surveyed routes are adopted.” I think I also satisfied his Grace that assent ought to be immediately given to raising the fishing licences to two dollars, and doing away with the present arrangement as to notices; but this morning Mr. Elliot sent for me to tell me from the duke that Lord Stanley insists upon the licences not being more than a dollar, and making no alteration as to the notices. I stated so strongly the objections to this course that Mr. Elliot said that he would write to the duke, urging him to take no action until he had seen the Foreign Secretary, and proposing that I should see Lord Stanley with the duke. Mr. Elliot

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