Colonial Despatches

I have the honor to acknowledge your communication of the 28th instant, written by direction of Earl Granville, transmitting copies of certain papers referring to the interests of British Columbia, as they may be affected by a Treaty for Commercial Reciprocity between the Dominion of Canada and the United States of America, and requesting me to make such observations for His Lordship's information, as may occur to me.

In reply, I have the honor to observe that from the tone of the Presidents message, as well asfrom from other indications, there would appear to be little prospect of continuing, through executive medium the negociations which were begun last Summer between Canada and the United States, and it would seem that any change having for object the promotion of freer commercial intercourse between these two Countries is more likely now to be effected by means of Reciprocal Legislation rather than by Treaty. There do not however seem any indications, at the present moment, that such legislation is in the contemplation of Congress, and it may therefore seem premature to trouble His Lordshipwith with any lengthy observations on the subject of the papers you have transmitted, which were obviously written under the impression that negociations were in actual progress. In view however, of the possible resumption of negociations & considering it important that all the Communities in British North America should have an understanding with reference to each others interests, as they may be affected by their future commercial relations with the United States, I would suggest that copies of the papers should be sent to the Governor General of Canada and that the propriety ofcommunicating communicating to the Government of British Columbia the proposals discussed at Washington in July last should be submitted for the consideration of the Dominion Government.

It will be seen that both the Legislative Council of British Columbia, and the Gentlemen on whose behalf Mr Hilmachen signs, concur in the propriety of free interchange as respects the most important classes of products enumerated in the former Reciprocity Treaty and which were lately proposed to be embraced in any future arrangements, as for example—lumber, coal, fish, wheat, maize, hides &c &c.

Mr Hilmachen and his associates however, would seem to take exception to the insertion of agricultural, dairy, and horticultural productions, among the articles to be freely exchanged.

Earl Granville is doubtless aware that considerable importance would be attached by Canada to the insertion of these articles. Under the operation of the former Treaty, the free admission of agricultural, and horticultural productions, & of animals & other products, to the Markets of the United States was found to be a very sensible advantage to the agricultural populations of Canada.

It would seem obvious thataccess access to markets so extensive as those of the United States could not be unattended with corresponding advantage to the same class in British Columbia, and I fail to see the soundness of the reasons on which Mr Hilmachen, & those who share his opinions, rest their special objections. Indeed I have little doubt that after a comparison of view and a full understanding of the beneficial results to Canada, in the past, from that portion of the Treaty, they will be disposed to consider their fears groundless & to coincide with the opinions expressed by the Council, not only in regard to the articles of grain, but withreference reference to all agricultural, horticultural and dairy productions. In almost every other respect, the view expressed by the several interests represented in these papers, would seem to be in accord with those entertained in Canada on the subject of Reciprocity.

The interval of time, which will probably elapse before negociations are in progress, may be usefully employed in a comparison of views between the Government of the Dominion & that of British Columbia.