Confidential

With reference to my Confidential Despatch of 24th Inst. I transmit
to you Confidentially a Copy of a Despatch from the Governor of Canada
enclosing a Report of the Conference which took place at Washington
between Mr. Rose the Finance Minister of the Dominion, Mr. Thornton and
Mr. Fish on the part of the United States Government.

As Canada has in its Fisheries and Inland Navigation a valuable
equivalent to offer to the United States for any Commercial concessions,
which is not to the same extent the case with British Columbia, the
latter Colony would be materially benefitted by being treated as part
of Canada in respect of the negotiations on the subject.

This consideration may be usefully placed before the People of
British Columbia as one of the inducements to Union.