Mr. Herbert to Mr. Foster.

Sir: I have the honor to inform you that after an interview on the 1st instant I telegraphed to the governor-general of Canada, in accordance with your request, that, in view of the passage of the Curtis act in regard to the canal tolls, the President would be obliged to take the action authorized by Congress without delay, but that before the proclamation was issued you were anxious to know whether there was a possibility of any reconsideration being given by the Canadian Government to the representations of the United States Government in regard to the Welland Canal tolls. I further informed his excellency that you had stated to me that, if you could receive an assurance within a reasonable time, say a week or ten days, that the question would be reconsidered, the proclamation would be withheld.

On the 6th instant I had the honor to give you the necessary assurance that a further consideration would be given to the question by the Canadian Government; but, as I have already explained to you verbally and by letter, their decision has been unavoidably delayed, owing to the absence of the Governor-General and the Canadian ministers from Ottawa, and I have only just received Lord Stanley’s reply.

The Canadian government have carefully considered my communication, and they desire to point out that the United States Government may be unaware that the tolls for the Welland and St. Lawrence canals are of a temporary nature only, and that it is not intended to reëstablish them in their present form after the expiration of the season of 1892.

I have accordingly the honor to inform you that the features of the present tariff, giving preferential treatment to certain routes and ports and providing for transshipment at Canadian ports only, will not be readopted after the present season.

This undertaking, however, would not be binding on the Canadian government if the President of the United States should, in the meanwhile, proclaim and enforce the imposition of tolls on the Sault Ste. Marie Canal, as authorized by the recent act of Congress.

The Canadian government state that grave difficulties present themselves to an alteration of the tariff of tolls during the present season. Contracts and engagements have been entered into in various parts of this country and in Great Britain, based on the continuance of this tariff during the whole of the present season. The rights which have been established under these contracts and engagements can not be interfered with without great confusion and detriment and apparent breach of faith. They believe, therefore, that the United States Government [Page 301] will recognize the importance of the difficulties which stand in the way of an immediate repeal of the present tariff and that the assurance of its termination at the end of the present season will be regarded as satisfactory evidence of the desire of the government of the Dominion to remove any ground which has a tendency to disturb the friendly interchange of trade between the two countries.

I have, etc.,

Michael H. Herbert.