Sir Julian Pauncefote to Mr. Gresham.

Sir: With reference to previous correspondence in relation to reciprocal privileges as to wrecking in the Welland Canal, and more particularly to your note of the 24th of March last on that subject. I have the honor to inclose a certified copy of an approved minute of the Privy Council of Canada, which I have received from His Excellency the Administrator of the Dominion for communication to your Government.

The minister of trade and commerce in his report which is embodied in the minute, points out that the privileges conferred by the Canadian act of 1893 are expressly exempted from the restrictions of the coasting laws of Canada, certain provisions of which are quoted in your note above referred to, and he expresses the opinion that pending a consideration of the broader question of a general reciprocity in coasting and towing, it is not necessary to modify existing regulations in accordance with your suggestion.

I am requested by His Excellency the Administrator to convey to your Government an assurance of the willingness of the Canadian Government to enter into negotiations with, or to receive proposals from, the Government of the United States with a view to coming to an understanding on the general question.

I have, etc.,

Julian Pauncefote.
[Inclosure 1.]

Certified copy of a Report of a Committee of the Honorable the Privy Council, approved by His Excellency the Governor-General in Council, on the 15th of August, 1893.

The Committee of the Privy Council have had under consideration a dispatch, hereto attached, dated 27th March, 1893, from Sir Julian Pauncefote, inclosing copy of a note from the honorable the Secretary of State for the United States on the subject of “reciprocal wrecking privileges.”

The minister of trade and commerce, to whom the matter was referred, states that the question of “reciprocal wrecking privileges,” which has for a considerable length of time engaged the attention of the Governments of the Dominion and of the United States, having been disposed of in a manner it is to be hoped satisfactory to and in the interest of both countries, Canada having on her part passed the necessary legislative enactment and issued the requisite proclamation putting the law in force from the 1st of June, 1893, and the United States statutes having been so amended that with the departmental regulations which that country has given assurance will be issued to the effect that nothing in the customs or coasting laws of that country shall restrict the salving operations of Canadian vessels in the waters contiguous thereto, such regulations being in accord with the Canadian laws, there remains in his (the minister’s) opinion no further action on the part of Canada necessary in order to give effect to the agreement.

The minister observes that sections 5 and 6 of Chapter 21 of the Consolidated Orders in Council, to which attention is drawn by the honorable the Secretary of State for the United States, read as follows:

“Foreign vessels may tow other vessels or things from a foreign port to a Canadian port; but if they drop or part from any such vessel or thing in Canada waters they shall not again take such vessel or thing in tow for the purpose of moving the same further in Canadian waters.”

“Foreign vessels may tow other vessels or things from a Canadian port to a foreign port, but having parted from such vessel or things, or any of them, in Canadian waters, they can not again take such vessels or things in tow to move them further in Canadian waters; but this and the preceding rule are not to apply to an accidental parting of such vessel by breaking hawser or other temporary damages.”

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The minister states that these sections have more especial reference, it will be observed, to the privileges accorded to foreign vessels trading on the coast and entering the harbors of Canada from sea or inland waters, and are based upon the provisions of law respecting the coasting trade of Canada, Chapter 83, Revised Statutes, a subject not dealt with in the agreement entered into except in so far as it is provided that nothing in the customs or coasting laws of either country shall restrict the salving operations of vessels or wrecking appliances engaged in salving wrecked property or when rendering assistance to vessels wrecked or in distress in the waters contiguous to Canada and the United States.

The minister suggests that sections 5 and 6 hereinbefore referred to do not in his opinion, in any way, conflict with the provisions of the Act 55–56 Yict. Chapter 4, intituled “An act respecting aid by United States wreckers in Canadian waters,” the third clause of which provides, as above stated, that nothing in the customs or coasting laws of Canada shall restrict the salving operations of such vessels or wrecking appliances, and the second clause declares that “aid and assistance includes all necessary towing incident thereto.”

The minister further states that at the conference between the representatives of the two governments at which the agreement respecting “reciprocal wrecking privileges” was arrived at, as well as in the course of previous negotiations, the broader subject of reciprocal coasting and towing was brought to the attention of the United States Government, and the advisability of a better understanding between the two countries was pointed out by the Canadian representatives, the United States representatives being given to understand that Canada was prepared to grant the privilege of coasting in Canadian waters whenever a similar privilege might be granted by the United States as respects Canadian vessels in United States waters, which proposition the United States representatives at the time declined to entertain except in so far as it related to vessels wrecked or in distress in waters conterminous to the United States and Canada.

The minister, in view of the foregoing, is of the opinion that it is not necessary to modify existing Canadian regulations in the manner suggested by the honorable the United States Secretary of State, unless assurance of reciprocal modifications of the coasting laws and regulations of the United States may be given.

The minister at the same time recommends that the United States Government be assured that Canada is willing to renew negotiations with or receive proposals from the United States Government with a view to such a desirable understanding.

The committee concur in the recommendations made by the minister of trade and commerce, and advise that your excellency be moved to forward a certified copy of this minute to Her Majesty’s ambassador at Washington for transmission to the United States Government.

All of which is respectfully submitted for your excellency’s approval.

John J. McGee,
Clerk of the Privy Council.
[Inclosure 2.]

Sir Julian Pauncefote to Lord Stanley of Preston.

Sir: With reference to my dispatch, No. 2, of the 3d of January last, respecting wrecking privileges in the Welland Canal, I have the honor to inclose copy of a note which I have received from Mr. Gresham containing further proposals by the United States Government on the subject.

I have, etc.,

Julian Pauncefote.