No. 218.
Sir Edward Thornton to Mr. Seward.

Sir: With reference to Mr. Evarts’s note of the 31st of July last, a copy of which was transmitted to the governor-general of Canada, I have now the honor to inclose a copy of his excellency’s answer, and of a report of a committee of the privy council, from which you will perceive that the Canadian Government acquiesces in the amendments to the rules and regulations for the transportation of dutiable merchandise between the United States and Canada, as contained in the circulars of the Secretary of the Treasury of September 15, 1876, and November 27, 1876. I should, therefore, now be glad to be informed whether the Government of the United States is prepared to abide by the regulations as now amended, and by the Canadian regulations, forwarded to the Department of State in my note of November 13, 1874, it being always understood that a previous announcement should be made by each government to the other of the precise nature of any change in the regulations which may be contemplated.

I have, &c.,

EDWD. THORNTON.
[Page 356]
[Inclosure.]

Lord Dufferin to Sir Edward Thornton.

Sir: My government has had under consideration Mr. Drummond’s dispatch of the 6th August last and its inclosures, regarding the regulations governing the transportation of dutiable merchandise between the United States and Canada, and I have now the honor of communicating to you a report of a committee of the privy council recommending that the regulations contained in the circular of the Secretary of the United States Treasury of the 15th September and 27th November, 1876, be approved and confirmed.

I have, &c.,

DUFFERIN.
[Inclosure to inclosure.]

Copy of a report of a committee of the honorable the privy council, approved by his excellency the governor-general, on the 28 th September, 1878.

The committee have had under consideration the dispatch of Mr. Drummond, acting for Her Majesty’s minister at Washington, of 5th August, submitting certain amendments to the regulations governing the transportation of dutiable merchandise between Canada and the United States, for the consideration of this government.

The honorable the minister of customs reports that the regulations as contained in the circulars of the Secretary of the Treasury of September 15 and November 27, 1876, and the amendments, have proved satisfactory, in their practical operation, to this department, and he recommends that the same be approved and confirmed.

The committee advise that the regulations referred to be approved as recommended.

Certified.

W. A. HIMSWORTH.