the Governments 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.

SIR,-I have been in communication with the Secretary of State for Foreign Affairs on the subject of your Despatch, No. 72, of the 30th September, in which you enclosed copies of correspondence between yourself and Mr. I. C. Hall, respecting the question of the refund of the duties collected in the United States on fish oil and fish exported from Prince Edward Island during the Fishing season.

Enquiry has been made of the United States Government on the subject of the introduction of a Bill into Congress to provide for the refunding of duties paid upon fish and fish oil, the produce of the Fisheries of Prince Edward Island and Newfoundland, but Her Majesty's Government regrets that the United States Government have replied that the proposal made in May last contemplated the united action of all the British North American Colonies, and that it would not be practicable to separate them or carry into effect for one what the President was willing to recommend for all those Colonies.