"'It Will Be Observed That The Most Important Provisions Of The Expiring Treaty, Relating To The Free Interchange Of The Products Of The Two Countries, Were Entirely Set Aside, And That The Duties Proposed To Be Levied Were Almost Prohibitory In Their Character.

The principal object for our entering into negociations was therefore unattainable, and we had only to consider whether the minor points were such as to make it desirable for us to enter into specific engagements.

"'These points are three in number.

"'With regard to the first - the proposed mutual use of the waters of Lake Michigan and the St. Lawrence - we considered that the present arrangements were sufficient, and that the common interests of both countries would prevent their disturbance. We were not prepared to yield the right of interference in the imposition of tolls upon our canals. We believed, moreover, that the privilege allowed the United States of navigating the waters of the St. Lawrence was very much more than an equivalent for our use of Lake Michigan.

"'Upon the second point - providing for the free transit of goods under bond between the two countries - we believed that in this respect, as in the former case, the interests of both countries would secure the maintenance of existing regulations. Connected with this point was the demand made for the abolition of the free ports existing in Canada, which we were not disposed to concede, especially in view of the extremely unsatisfactory position in which it was proposed to place the trade between the two countries.

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