Sir Julian Pauncefote to Mr. Olney.

Sir: With reference to Mr. Gresham’s note, No. 35, of the 21st February last, inclosing copy of an act of Congress approved February 8, 1895, entitled “An act to regulate navigation on the Great Lakes and their connecting and tributary waters,” and expressing a hope that the Dominion of Canada may be disposed to adopt like regulations for the government of Canadian vessels on the Great Lakes and their connecting and tributary waters, I have the honor to state that Her Majesty’s Government are informed that the Dominion Government are not at present prepared to concur in the rules recently adopted by the United States Government.

In view, however, of the necessity of arriving at an agreement on this point, Her Majesty’s Government are of opinion that an effort should be made both by the United States Government and the Government of the Dominion to sink minor differences.

I have, therefore, the honor to suggest that the difficulty might be settled by direct intercommunication between the United States Government and the Canadian Government, and that if necessary a representative should be appointed on either side to discuss the matter.

A similar suggestion will be made to the Governor-General of Canada by the secretary of state for the colonies.

I have, etc.,

Julian Pauncefote.