Sir Julian Pauncefote to Mr. Olney.

Sir: With reference to my note of the 21st February last, and to previous correspondence respecting the alleged discrimination against United States vessels in Canadian ports on the Great Lakes, I have the honor to inform you that the Governor-General of Canada has approved a minute of his privy council, recommending the revocation of the regulations complained of and the abolition of all fees hitherto exacted from vessels navigating inland waters when entering or clearing above Montreal.

The Dominion Government are unable entirely to concur in the views expressed in your note to me of the 18th February in regard to the question of reciprocity in maritime charges, and they maintain their former contention that certain charges now exacted in United States ports from Canadian vessels constitute a discrimination in favor of United States ships. In order, however, that no cause should exist for friction with the United States authorities in regard to this matter, the minute in council recommends that the regulations which gave rise to the complaints of the United States Government should be canceled.

I have not as yet received copies of the order in council giving effect to the decision arrived at by the Canadian Government, but I shall have the honor to furnish you with a copy as soon as I am in a position to do so.

I have, etc.,

Julian Pauncefote.