No. 322.
Mr. Phelps to Mr. Bayard .

[Extract.]

Sir: I have the honor to acknowledge the receipt of your instruction of the 12th ultimo, inclosing two copies of your “proposal for an arrangement,” with the Canadian “observations” and your reply thereto printed in parallel columns, and to inform you that I have communicated a copy of the same to Lord Salisbury.

I have, etc.

E. J. Phelps.