No. 177.
Mr. Pahenham to Mr. Fish.

Sir: I have the honor to inclose a copy of a letter from an American merchant residing at Charlottetown, Prince Edward Island, to the lieutenant governor of that colony, as also a copy of the governor’s reply, and from which it will be seen that Mr. Hall entertains doubts as to whether the refusal of Canada to assent to the provisional arrangement proposed by the United States, and assented to by the legislature of that colony, may not work adversely to the interests of those persons in Prince Edward Island who have this year made large investments in the fishery business, in the expectation of receiving back the duties collected in the United States on fish-oil and fish exported from that island into the United States during the present fishing season. Application has been made to Earl Granville, by the colonial office, on this subject, and I have been directed to endeavor to ascertain whether the proposal will be made to Congress on its meeting to refund those duties as regards Prince Edward Island and Newfoundland.

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I should feel obliged if you would cause me to be early informed on the subject, so that I may forward the reply of the United States Government to Earl Granville with as little delay as possible.

I have, &c,

F. J. PAKENHAM.
[Inclosure 1.]

Mr. Hall to Lieutenant-Governor Robinson.

Sir: After the action of your government giving effect to the treaty of Washington, so far as the fisheries are concerned, admitting fish from the United States as bait or otherwise free of duty into this colony, and giving to United States fishing-vessels free access to the shore-fisheries around this island, those persons here who are engaged in the fishing business had supposed that their right, on the meeting of Congress, to receive back the duties paid on all fish and fish-oils exported by them to the United States since the 1st day of July-could not be questioned.

Recent reports from the United States would, however, lead to the belief that the refusal of the Dominion of Canada to give effect to the treaty of Washington may work adversely to the interests of this island, and prejudice her claims to such return of duties.

As your honor is probably aware, large investments have this year been made in the fishing business, based upon the expectation of receiving the benefit of this treaty, and a heavy loss to this island must result if the duties are not returned.

I would, therefore, esteem it as a great favor if your honor can give me any information bearing upon this subject.

I have, &c,

ISAAC C. HALL.
[Inclosure 2.]

Mr. Robinson to Mr. Hall.

Sir: I am directed by the lieutenant-governor to acknowledge the receipt of your letter of the 26th instant, on the subject of the treaty of Washington.

2.
The Government of the United States requested Her Majesty’s government to urge the governments of Canada, Newfoundland, and Prince Edward Island to make for the present season, within their respective jurisdictions, such relaxations and regulations as it might be in their power to adopt, with a view to the provisional admission of American fishermen to the liberty which is proposed to be secured to them by the treaty of Washington, the Government of the United States in return to recommend and urge upon Congress at their next session to refund to the parties paying the same any duties collected in the United States on or after the 1st July, on fish-oil and fish, (with certain exceptions,) the produce of the fisheries of the above colonies, respectively, if a similar arrangement should be made with respect to the admission into the colonies as aforesaid of fish-oil and fish, (with like exceptions,) being the produce of the fisheries of the United States.
3.
Prince Edward Island assented to the proposed arrangement; Canada did not assent to it; and you are apprehensive that such refusal on the part of Canada may work adversely to the interests of those persons in Prince Edward Island who have this year made large investments, in the expectations of receiving back the duties paid by them on fish-oil and fish exported from this island into the United States during the present fishing season.
4.
The lieutenant-governor is of opinion that your apprehensions are unfounded. An arrangement sanctioned by Her Majesty’s government has been entered into between the Government of the United. States and Prince Edward Island, and the lieutenant-governor does not apprehend that the action of Canada in withholding her assent from a similar arrangement will be attended with the prejudicial result which you have recently been led to anticipate.

I have, &c,

KILDARE C. ROBINSON,
Private Secretary.