Sir Julian Pauncefote to Mr. Olney.

Sir: I have the honor to acknowledge with thanks the receipt of your note, No. 257, of the 23d instant, in reference to the alleged discriminating tax of $1 levied upon American vessels entering or clearing from Canadian ports.

Before communicating further with you upon this subject I should be glad to be favored with the observations of the Secretary of the Treasury on the minute of the privy council of Canada, copy of which was inclosed in my note of the 21st instant, as, if the facts therein stated are not open to dispute, it would seem that they dispose of the complaint of your Government.

I have, etc.,

Julian Pauncefote.