Lord Lyons to Mr. Seward.

Sir: I placed in your hands on the 17th March last a memorandum pointing out the serious losses which were entailed upon manufacturers in Canada by the prohibition of the exportation of anthracite coal from the United States. In a note which you did me the honor to address to me on the following day, you observed, with reference to this coal, that an element which had measurably influenced the policy of the United States government was the notorious fact that fuel of this character was, for obvious reasons, preferred by blockade runners, who before the restriction went into effect were in the habit of supplying themselves with it at British ports in the neighborhood of the United States.

The governor general of Canada has requested me again to bring under the notice of the government of the United States the very serious inconvenience to which the trade of Canada is subjected by the prohibition of the exportation [Page 642] from the United States of coal of this description, and to suggest that in the event of the prohibition being withdrawn so far as relates to exportation made along the interior line of frontier, the government of Canada would be prepared themselves to prohibit the exportation of anthracite coal from any port in the province.

By the adoption of this plan a valuable trade would be preserved both to the United States and to Canada, without any risk being incurred of the coal’s being used to the prejudice of the United States by their enemies. It appears to the governor general that the commercial interests both of citizens of the United States and of Canadians would be promoted; that the objects to obtain which the prohibition of exportation was originally ordered would not be imperilled; and that the peculiar situation of Canada, which would enable her strictly to carry into effect the conditions proposed, would prevent the concession from being drawn into an inconvenient precedent.

In recommending very earnestly the proposal of the Canadian government to the favorable consideration of the government of the United States, I will only add, that the wants of the province have become very urgent, and that the value of the boon solicited would be in no small degree enhanced by promptness in according it.

I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,

LYONS.

Hon. William H. Seward, &c., &c., &c.