Memorandum.

Mr. Michael Herbert called upon me this morning to say that he had received from Ottawa the promised reply in regard to the discriminating tolls in the Welland and St. Lawrence River canals.

The Canadian commissioners on the occasion of their recent visit to Washington had promised immediately upon their return to Ottawa to consider the withdrawal of the objectionable rebate, and to make a proposal in regard to the terms of such withdrawal. They had kept their promise by sending the reply at once.

Mr. Herbert was not able to communicate the Canadian reply to this Government without Lord Salisbury’s sanction. This he had telegraphed for, and expected to be authorized to communicate it without delay.

Meanwhile, he might with propriety say to Mr. Adee that the Canadian proposal is silent as to the favor of navigating the Hudson River, which had been suggested to Mr. Blaine on their recent visit and been promptly declined by him. It, however, introduced a new proposition. Briefly, the Canadians proposed that the discriminating rebate should be abandoned, if the United States should agree to maintain the status quo as to the free and equal use of the Sault Ste. Marie Canal, and should, in addition, restore article 30 of the treaty of Washington.

Mr. Herbert suggested that the President be informed that the Canadian reply had been received.

Mr. Adee said that time was pressing and left scant room for delay in the communication of the Canadian reply, if it was to be considered by us. He would advise the President of the fact that the reply had reached the British legation, and only awaited Lord Salisbury’s sanction to be” communicated.

Alvey A. Adee.