No. 327.
Sir Edward
Thornton to Mr. Fish.
Sir: With reference to Mr. Bancroft Davis’s note of the 4th of April last, and to yours of the 24th of that month, I have the honor to inform you that I have made inquiries from the governor-general of Canada relative to the right of American vessels to transport goods and passengers between Canadian ports, and that I find the case to be as follows:
With respect to the coasting-trade generally, Canadian vessels in the United States and United States vessels in Canada are at present placed in precisely the same position; and the vessels of each country are prohibited from engaging in the coasting trade of the other country, the only difference being that, under the laws of Canada, United States vessels can at any time participate in the coasting trade of Canada when it is shown to the governor in council that Canadian vessels have been admitted to the coasting-trade of the United States. It is understood that no provision exists in the laws of the United States for extending the privileges of the coasting-trade to foreign vessels.
With regard, however, to the practical working of the coasting laws and regulations of the Dominion, it has been customary so to interpret them as to permit foreign vessels, including those of the United States, having cargoes taken on board at a foreign port, and destined for several Canadian ports, to remove from one such port to another for the purpose of discharging her said original cargo, care being taken that no goods, other than those taken on board at the foreign port of departure, are received on board or discharged.
The same rule has been applied to vessels having passengers onboard, the spirit of the law being interpreted so as to preclude foreign vessels from taking in goods or passengers at one Canadian port to be discharged or landed at another Canadian port.
It has also been customary for ail foreign vessels arriving in Canadian ports in ballast, to remove when necessary to another Canadian port for the purpose of taking in cargo destined for a foreign port.
In all such cases the vessels are required to report their whole contents at the first port of entry, and file copies of the same at each succeeding port which they enter, with the certificate of the collectors as to the packages landed and remaining on board until the whole is discharged.
I have, &c.,