Colonial Despatches

I have the honor to forward to Your Lordship, with the usual Report from the Attorney General, an authenticated copy and two others of an Act entitled: An Act to repeal the CustomsAmendment Amendment Ordinance 1870.

2. The circumstances relating to this Act are peculiar and require some explanation, having regard to the proposed Union with Canada.

3. The Customs Amendment Ordinance 1870, which I transmitted in my Despatch No 51 of 28th April1870 1870 made a special addition of Half a Dollar per Gallon to the duty on Spirits for the particular purpose of providing funds to reestablish the Telegraph to Cariboo. This was no part of the ordinary Tariff, and avowedly was only a temporary impost, for although the limitation was not expressed in the Act it was understoodthat that this extra duty should only be levied for a year.

3. In the event of the assent of the Canadian Government to the proposals made by the Legislative Council respecting a modification of the present British Columbian Tariff on entering the Union, which proposals I havecommunicated communicated to Your Lordship in my despatch No 12, of the 16th February, the Act which I now forward would be useless. But if these proposals are declined then British Columbia by the Terms of Union will enter the Dominion with "the existing Customs Tariff," which may be fairly considered as thepermanent permanent Tariff existing at the time when Terms were proposed by British Columbia, and of which the Legislature regard this extra temporary provision as forming no part. In legal strictness, however, there may be some doubt upon this point; as the temporary character of the additional dutydoes does not appear on the face of the Ordinance it is desired to repeal, although I acknowledge that there was an understanding between the Council and the Government that it should only be continued for a limited period.

4. This Act has therefore been passed in order to keep faith with the local Legislature but asuspending suspending clause has been added to do the same with the Canadian Government, and enable me to explain to Lord Lisgar as well as to your Lordship the circumstances of the case before the Act is allowed to take effect. I think the Canadian Government can not equitably object to theremoval removal of this extra duty, and I shall request Lord Lisgar if his advisers assent, to communicate that decision to Your Lordship.