No. 178.
Mr. Fish to Mr. Pakenham.

Sir: I have the honor to acknowledge the receipt of your note of the 14th instant, inclosing a copy of a letter from Isaac C. Hall, esq., an American merchant residing at Charlottetown, Prince Edward Island, to the lieutenant-governor of that colony, and also a copy of the lieutenant-governor’s reply, relating to the anticipated effects of the refusal of Canada to assent to the provisional arrangement proposed by this Government, and assented to by the legislature of that colony, contained in my note of May 8, 1871, to Sir Edward Thornton, upon the interests of the persons in Prince Edward Island who have this year made large investments in the fishery business, in expectation of receiving back the duties collected in the United States on fish-oil and fish exported from that island into the United States during the present fishing season.

In reply, I have the honor to state that the United States deals on the subject with Great Britain, and the proposal made in May last contemplated the united action of all the British colonies. The Dominion of Canada did not assent, and has greatly annoyed American fishermen. It was not contemplated, nor would it be practicable, to separate them, or carry into effect for one what the President was willing to recommend for all of those colonies.

I have, &c,

HAMILTON FISH.