Hammond to Merivale (Permanent Under-Secretary)

I have laid before The Earl of Malmesbury the Letter from
Tradecoastalnegotiations sought with the US
Coastal trade.see Trade, coastal
Tradecoastalexclusive rights of the US to
United Statesrights to coastal trade
Commerceregulation of coastal trade
Tradecoastallegislation effecting
the Colonial Office of the 9th
Instant,

on the subject of the discouragement to the employment of British
Shipping in the Trade with British Columbia which is stated by the Board
of Trade, in a Letter to Secretary Sir Edward Lytton Bulwer
dated the 18th of September
last,

to be occasioned by the more advantageous position of American Merchants
in consequence of their exclusive right to the coasting Trade of the
Pacific seabo[a]rd of the United States.

With regard to the suggestion of the Board of Trade that Her
Majesty's Government should renew their negotiations with the United
States with a view to obtain a relaxation of the American Laws which
regulate the coasting Trade, Lord Malmesbury desires me to request that
you will state to Sir Edward Lytton that he will instruct Her Majesty's
Minister at Washington to ascertain from the Government of the United
States their feelings at the present time with regard to the opening of
their coasting Trade, without entering upon those questions of possible
retaliatory measures, the mention of which Sir Edward Lytton thinks would
be inexpedient.

Lord Malmesbury observes that the Board of Trade suggest that even
tho' the Government of the United States should be averse to throwing
open their coasting Trade universally, they might be induced partially to
relax the stringency of their present legislation. But when, in the year
1852, Her Majesty's Government endeavoured to prevail upon the United
States to make such a partial relaxation of their laws in regard to the
Coasting Trade, as would allow British Vessels to trade between American
Ports in the Atlantic and American Ports in the Pacific, Her Majesty's
Minister at Washington, in a Despatch of which a Copy was sent to the
Colonial Office on the 14th of January
1853,

stated that the American Government were unable to accede to such a
proposal; not on account of commercial considerations, nor from any
unwillingness to respond to the liberal measures of the British
Government, but because the concession desired would be inconsistent with
Commercelegislation effecting
a provision in the Constitution of the United States

that no preference shall be given by any regulations of Commerce or
Revenue to the Ports of one State over those of another, and that Vessels
bound to or from one State shall not be obliged to enter, clear, or pay
duties in another. The American Secretary of State stated that nothing
less than a revision of the Constitution would be required in order to
alter the provision above quoted, and this was out of the question.

Lord Malmesbury will also instruct Lord Napier to make
enquiry, as requested by Sir Edward Lytton, as to the Laws
of the United States in regard to the carrying of Passengers coastwise.