Willing that the existing regulations should continue in
effect; but Canada is ready to enter into engagements with the view of
improving the means of access to the ocean, provided the assurance be
given that the trade of the Western States will not be diverted from
its natural channel by legislation; and if the United States are not
prepared at present to consider the general opening of their coasting
trade, it would appear desirable that, as regards the internal waters
of the Continent, no distinction should be made between the vessels of
the two countries.
"'If the foregoing points be satisfactorily arranged, Canada is willing
to adjust her excise duties upon spirits, beer and tobacco upon the
best revenue standard which may be mutually adopted after full
consideration of the subject; and if it be desired to treat any other
articles in the same way the disposition of the Canadian Government is
to give every facility in their power to prevent illicit trade.
"'With regard to the transit trade, it is suggested that the same
regulations should exist on both sides and be defined by law. Canada is
also prepared to make her patent laws similar to those of the United
States.
"'WASHINGTON, D.C.,
"'Feb. 2, 1866.'"
"'MEMORANDUM B.
"'In response to the Memorandum of the Hon.
