tation that they have abandoned that right. It is believed that the British Government may be made to comprehend, that the privilege of introducing the produce of Upper Canada, as proposed in your instructions, into the United States, and thereby securing the shorter and better route through the State of New York, will be an equivalent for that which we desire in the enjoyment of the markets of Montreal and Quebec. With respect to the right to the navigation of Lake Michigan, on which you suppose the British may insist, the President can see no legitimate purpose for which they should desire it. It cannot be wanted by them, either to reach their own dominions, or those of any foreign country, and stands, therefore, on other grounds than that on which we claim the right to navigate the St. Lawrence; and they are not allowed to trade with the Indians situated within our limits. same observations are applicable to Lake Champlain."

The

Extract of a letter from Mr. Gallatin to Mr. Člay, dated London, 21st September, 1827. "The British Plenipotentiaries will not entertain any proposition respecting the navigation of the St. Lawrence, founded on the right claimed by the United States to navigate that river to the

sea.

"Although it may prove hereafter expedient to make a temporary agreement, without reference to the right, (which I am not authorized to do,) I am satisfied that, for the present, at least, and whilst the intercourse with the

British West Indies remains interdicted, it is best to leave that by land or inland navigation with the North American British provinces, to be regulated by the laws of each country, respectively. The British Government will not, whilst the present state of things continues, throw any impediment in the way of that intercourse, if the United States will permit it to continue."

MR. GALLATIN TO MR. CLAY.

London, 1st October, 1827. Sir: I had, at an early stage of the negotiations, ascertained, not only that no arrangement, founded on a recognition of the right of the river St. Lawrence to the sea, was practicable, but that there was a sensibility on that subject which rendered it preferable not to approach it till all others, and particularly that of the Colonial Intercourse, had been disposed of. It was, therefore, only after it had been distinctly ascertained, at the interview of the 13th instant, [ultimo,] with Mr. Huskisson and Lord Dudley, that there was no chance left of the intercourse with the British West Indies being opened, and after the principles of the Convention respecting the Northeast boundary had been substantially agreed to, that I brought forward the question officially at our conferences. I did it without any hope of succeeding, but because this negotiation being the continuation of that of 1824, I apprehended that to admit altogether this subject, might be construed as an abandonment of the right of the United States.

To my first suggestion, the British Plenipotentiaries replied, that,

however well disposed Great Britain might be to treat with the United States respecting the free navigation of the river St. Lawrence, as a question of mutual convenience, yet the views of the British Government being the same now as they were in 1824, and they being prohibited by express instructions from entering into any discussion respecting the free navigation of that river, if claimed as heretofore, by the United States, on the ground of right, they could not entertain any proposition to that effect, if now made by me.

It is sufficiently obvious, that the determination of the British Plenipotentiaries, not to enter into any discussion of the subject, was applicable to themselves, and could not prevent my offering any proposition, or annexing to the Protocol any argument in the support of it, which I might think proper. But it appeared to me altogether unnecessary, if not injurious, to commit my Government, by presenting any specific proposal, with the certainty of its being rejected; or to make this Government commit itself still further, by reiterating its positive refusal to treat on the ground of a right on the part of the United States. I therefore made the entry which you will see in the Protocol of the 20th conference, and which is sufficient for the object I had in view. You had, by your despatch of Sth August, 1826, in conformity with my own wishes, so far enlarged my instructions as to authorize me to judge which method would be the most eligible for the purpose of obtaining, at all events, the admission of

American produce at Quebec or Montreal, free of duty; whether that by treaty, or that by acts of separate legislation. The alternative was not within my reach, as any provision reserving the right of the United States to the free navigation of the St. Lawrence, either expressly, or by implication, was, in the present temper of this Government, out of the question. But, had it been in my power to select the mode, I would have resorted to that suggested in the original instructions, being fully satisfied that we may, with confidence, rely on the obvious interest of Great Britain to remove every restriction on the exportation of American produce through Canada, and need not resort to any treaty stipulation short of at least a liberty, in perpetuity, to navigate the river, through its whole extent.

Whatever motives may have induced the measures which gave rise to the first complaints of our citizens, a different policy now prevails. In consequence of the extension of the warehousing system to the ports of Quebec, Montreal, and St. John's, places of deposite are, in fact, allowed for every species of American produce, free of duty, in case of exportation, which is all that, in that respect, we could ask as a matter of right. The navigation between Montreal and Quebec, either to the sea, or from the sea, has not been granted; and it is precisely what cannot now be obtained by a treaty stipulation, without what would be tantamount to a disclaimer of the right.

But I do not think that, in practice, this will be much longer

denied. There is certainly a disposition, not evinced on former occasions, to make the navigation free; provided it was not asked as a matter of right; and generally to encourage the intercourse between the United States and the adjacent British Provinces. This change of disposition is undoubtedly due, in part, to the wish of obtaining supplies for the West India Colonies, whilst the intercourse between these and the United States remains interdicted. But it also must be ascribed to more correct views of what is so clearly the interest, and ought to be the policy, of Great Britain, in that quarter. It is certainly an extraordinary circumstance, that the great importance of the American inland commerce to her own navigation, and to the prosperity of Canada, should not have been sooner strongly felt, and particularly attended to; that the obstacles to an intercourse, by which American produce is exported through Quebec, in preference to the ports of the United States, should have arisen on the part of Great Britain, and not of the United States.

It is, therefore, to that mode of attaining the object in view, that I have turned my attention. The considerations which recommend the policy of removing, by their own acts, the practical inconveniences which still embarrass the intercourse, have been stated, generally, to the British Plenipotentiaries, but with more force, and more in detail, to Lord Dudley, and to other members of the cabinet. In an interview I had to-day with his Lordship, after having expressed my regret that no arrangement could, at this

time, be made on that subject, and after having urged the other reasons which should induce Great Britain no longer to prevent the navigation of the American raft, boats, and vessels between Montreal and Quebec; that, if she persisted in denying it, although I had no authority to say such was the intention of my Government, yet it seemed a natural consequence, and ought not to be considered as giving offence, that the United States should adopt corresponding measures in regard to the navigation of the river St. Lawrence, within their own limits. Lord Dudley, who had appeared to acquiesce in my general remarks, made no observation on the last suggestion.

But, what is somewhat remarkable is, that he, and several of the other Ministers with whom I have conversed, have expressed a doubt whether I was not mistaken in asserting that the navigation of the river was interdicted to our boats between Montreal and Quebec.

Upon the whole, I have great hopes that, setting aside the abstract question of right, and though no arrangement, by treaty, should take place, our citizens will, ere long, and through the acts of Great Britain alone, enjoy all the benefits of the navigation which they could obtain, even if the right were recognized. Should this expectation be disappointed, it is probable that a sufficient remedy will be found in the power to retaliate above St. Regis.

I have the honour to be, &c.
ALBERT GALLATIN.
HON. HENRY CLAY,
Secretary of State, Washington.

a minister Plenipotentiary and Envoy Extraordinary from the United States of Central America, to regulate and adjust the limits of the two countries, and to negotiate and settle various interesting points,-Chili and Colombia have likwise sent their respective agents; in short, all the republics of this sphere are on terms of amity and friendship, which I trust no unforeseen accident will ever interrupt. We turn our eyes from these pleasing scenes to the miserable and abject condition of Spain, sunk as that country is in the lowest abyss of human misery, she wishes to gain advantages in a country which she has for ever lost by her tyranny.

They have reinforced considerably their marine in the island of Cuba and augmented their garrison; their threats are now well understood. The squadron of Laborde was in the middle of last year cruizing on the coast of Colombia, and a short time since two frigates were off the bar of Tampico. This squadron was dispersed by a storm in the West Indies, and it is probable much time will elapse before they are in a fit state for further operations.

The disturbances in the provinces of Guatemala call with an imperious voice on the patriotism of every lover of his country to sacrifice his private passions to the public good.

You must, gentlemen, together, at a time when all our foreign relations are in a peculiary flourishing situation, be judicious and circumspect with respect to the rights of other nations, and let sound and republican sentiments govern you in all your movements.

The state of the finance is flattering-the public revenue is double that of '23; the extraordinary expenses then incurred have been much diminished in the present year '27, the republic is provided with an effective marine, the army well clothed and fed, and our warehouses filled with every necessary of life: the receipts from the customs have much augmented in the ports of Vera Cruz; Tampica de Taumilipas, and Refugio in the north have contributed handsomely. The trade from India and Guayaquil to the ports of San Blas and Masathan in the Pacific have brought considerable revenue. The regulations of the custom houses and their various appurtenances have received the approbation of the houses.

I would recommend you taking some decided steps in regard to the tariff, that the speculations of the merchant may be founded on a fair and unchangeable basis.

A number of old outstanding debts which have been decided in favour of the nation, the legal steps are now taking to recover.

The public credit, both with respect to foreign nations and to those in the employ of the government, has been regularly and strictly observed.

The houses were informed of the state of the funds in London, on the 19th October last; the agency of this republic is now in the hands of the opulent house of Baring, Brothers & Co.

The executive have viewed with deep feeling the general commercial distresses in Europe the past year; and very sensibly those in the city of London, so much so, that houses of the greatest opu