Sir Julian Pauncefote to Mr. Gresham .

Sir: With reference to your notes, Nos. 31 and 34, of the 16th and 20th of February respectively, relative to the customs duties levied on boom logs, I have the honor to forward herewith, for the information of your Government, copy of an approved minute of the Canadian privy council, submitting copy of an order in council of the 2d instant granting free entry to booms imported into Canada from the United States, for the purpose of towing logs of Canadian growth to the United States, from the 28th of August last, for such time as the United States Government permit the free entry of Canadian-made booms.

I have, etc.,

Julian Pauncefote.
[Inclosure.]

Extract from a report of the committee of the honorable the privy council, approved by his excellency on the 25th of March, 1895.

The committee of the privy council have had under consideration a dispatch, hereto attached, dated February 21, 1895, from Sir Julian Pauncefote, in reference to the question submitted through him to the United States authorities, asking for information in regard to customs duties levied by them upon booms.

The minister of trade and commerce, to whom the question was referred, observes that the answer given to the inquiry, as contained in the dispatch in question, while ruling such booms to be free, bases the ruling upon entirely different grounds from those contended as applicable by the parties who have been seeking for a decision from the Canadian Government, under which such booms and fastenings might be admitted free into Canada.

The minister further observes that Canada has already taken action by authorizing free admission of such booms so long as the United States Government permits the free entry of Canadian-made booms, sticks, and chains, as per order in council of March 2, 1895, hereto attached.

The committee, on the recommendation of the minister of trade and commerce, advise that your excellency be moved to forward a certified copy of this minute and its appendices to Her Majesty’s ambassador at Washington, with the request that he will advise the United States Government of the action taken by the Canadian Government in connection with this matter.

All which is respectfully submitted for your excellency’s approval.

John J. McGee,
Clerk of the Privy Council.
[Page 702]
[Subinclosure 1.]

Order in council.

Present, His Excellency, the Governor-General in council.

His Excellency, under the authority conferred upon him by section 78 of the consolidated audit and revenue act, and by and with the advice of the Queen’s privy council for Canada, is pleased to order that booms, consisting of sticks and chains, when imported into Canada from the United States for the purpose of inclosing, confining, or towing to the United States logs or timber of Canadian growth, be so imported free of customs duty, such exemption to date from the 28th day of August, 1894, and to continue in force so long as the United States Government permit the free entry of Canadian-made booms (sticks and chains).

John J. McGee,
Clerk of the Privy Council.
[Subinclosure 2.]

Sir Julian Pauncefote to the Earl of Aberdeen .

My Lord: With reference to your excellency’s dispatch, No. 3, of the 23d ultimo, asking for information in regard to the customs duties levied by the United States authorities upon booms of rough timber used for the purpose of confining logs while being towed into the harbors of this country, I have the honor to state that I have received a communication from Mr. Gresham informing me that the Secretary of the Treasury, to whom your excellency’s inquiry was referred, has sent a reply to the following effect:

“Booms constructed from rough timber or logs flattened at the ends, through which holes are bored for the iron or steel chains or other fastenings to pass which hold them together and which form a part thereof, are entitled to free entry as analogous to vessels containing cargoes; and the chains and fastenings are regarded by similar analogy as part of the necessary equipment.

“Should, however, such chains or fastenings be landed they would be classified as merchandise subject to duty.”

I have, etc.,

Julian Pauncefote.

P. S.—Since writing the above I-have received further information on this subject, which I hope to have the honor of transmitting to your excellency shortly.

J. P.