A.—B

3

" commercial intercourse between the North American Provinces." Nearly seven years afterwards, on the occasion of a similar Act being again passed, the Duke of Buckingham and Chandos sent out another remonstrance from the Lords of the Committee of Privy Council for Trade, to which another rejoinder was made ; and no further objection appears to have been offered. A similar controversy was proceeding during the same period, concerning the principle of reciprocal arrangements between the Provinces and the United States. In this case, also, theoretical objections were from time to time stated —it could be hardly said they were urged ; but, on the other hand, the warmest aid was given towards effecting such arrangements. The Colonial Treasurer appends a Eeport of Sir John Eose, Minister of Finance of the Dominion, which, although marked confidential, has already elsewhere been published, in which that gentleman traces the history of the question as between the Imperial and Provincial Governments. It appears by that document, that so long ago as 1849, Lord Palmerston instructed Sir Henry Bulwer, " that Her Majesty's Government regard it as of the very highest importance, both com- " mercially and politically, that free admission to the market of the United States should be obtained " for those articles which are enumerated in an Act passed in the last Session of the Canadian Parlia- " ment, of which I enclose a copy for your information." The anxiety of the Imperial Government to arrange the Eeciprocity Treaty with America is a matter of history, as is also the regret which was felt at its abrogation. When it became known that the Eeciprocity Treaty was to be abrogated, the Confederate Council of Trade held a meeting at Quebec, in September, 1865, at which the following resolution was passed : —" That, in the opinion of this Council, it would be highly desirable that application " be made to Her Majesty's Imperial Government, requesting that steps be taken to enable the British " North American Provinces to open communications with the West India Islands, with Spain and her " Colonies, and with Brazil and Mexico, for the purpose of ascertaining in what manner the traffic of the " Provinces with these countries could be extended, and placed on a more advantageous footing." The Secretary of State for the Colonies, Mr. Cardwell, cordially approved the suggestion, and promised that Her Majesty's Government would " support it by all the means in their power." Even the Lords of the Committee of Privy Council for Trade expressed their approval of the proposed step, although, as was to be anticipated, they drew attention to possible difficulties that might arise from it. The Commissioners appointed had every facility granted to them by Her Majesty's Government; a man-of-war was placed at the command of some of their number. The offers these gentlemen made —under instructions received from the Minister of Finance of Canada, and approved by Her Majesty's Government —in the various parts of the world to which they extended their travels, were in the direction of reciprocal arrangements for the remission of Customs duties. These proposals were made not only to the British West Indian Colonies, but to the Spanish West Indian Dependencies, and to the Imperial Government of Brazil. That the Commissioners were not disinclined to make exceptional and specific arrangements, may be gathered from the following proposal, made in Cuba to the Intendente, the Count De Toledo : —"I venture to suggest to your Excellency, that it would be an important step in " this direction, if the Spanish Government would sanction some considerable reduction in the rates of " duty—say ou grain, flour, meal, provisions, fish, lumber, and other productions —provided they be im- " ported from British North America, in vessels sailing under the flag of Spain." It is surely unnecessary further to urge that the Imperial Government have shown as much alacrity to aid the British American Provinces to form reciprocal alliances, as they have shown a contrary disposition in respect to the Australasian Colonies. Yet there are many records of opinion that these reciprocal arrangements were vastly beneficial to the North American Provinces; and it is in point to add, that those Imperial officers in the Australasian Colonies whose opinions are recorded, strongly recommend that the Colonies should have conceded to them the powers for which they ask. Thus the Earl of Belmore epigrammatically diposed of the objections which had been raised, when he wrote, " I am sure the true policy with regard to Australia, so far as the law permits of it, is to do everything to bring its various divisions closer together, even at the expense of a certain amount of economic theory." Governor Dv Cane has personally supported iv cogent terms the representations of his Eesponsible Advisers on the subject. Of late, some of the Australian Colonies have narrowed their demands to a power to make reciprocal arrangements amongst themselves. But in October, 1868, the then Premier of New Zealand, Mr. Stafford, invited the Australian Colonies to agree to a Conference, to consider, amongst other subjects, a resolution of the House of Bepresentatives, moved by the present writer, recommending that steps should be taken to ascertain the position of the Colony in relation to Commercial Treaties between Great Britain and Foreign Powers, and especially that authority should be sought to enable New Zealand, in connection with the Australian Colonies, to negotiate with the United States for the free admission into that country of wool, the product of the several Colonies. That invitation was favourably received by all the Colonies, although the Conference was not held, owing to an agreement not being arrived at as to the time of meeting. Eesolutions were, however, in January 1870, agreed to by the Bepresentatives of New South Wales and New Zealand, one of which was to the effect that the respective Governments should " address an earnest representation to the Secretary of State for the " Colonies, respecting the disadvantages under which the Australasian Colonies labour, in regard to the " doubts which exist as to their power to make mutual arrangements for the interchange, duty free, of " their several products and manufactures, as also in respect of the doubts which exist as to their powers " to enter into Conventions with foreign countries ; to point out that Canada for a lengthened period has " been placed on a more favourable footing; to urge that all doubts as to tbe right to exercise such " powers be removed ; and that, in entering into arrangements with foreign countries, the Imperial " Government should aid the Colonies. That such aid should be immediately granted in respect to " endeavouring to negotiate with the United States for the introduction into that country, duty free, " of wool, the product of the Australasian Colonies." The Colonial Treasurer does not urge that arrangements between the Colonies and foreign countries should necessarily be made by the Colonies. It would be more in consonance with an Imperial policy that such Treaties should be made for the Colonies at their desire, by the Imperial Government. Mr. Hammond, of the Foreign Office, in a letter dated November, 1865, to the Under Secretary of the Colonies, laid down an apparently very convenient mode by which such Treaties might