To the House of Representatives of the United States:

I herewith transmit to the House of Representatives copies of a correspondence between the Department of State and the British legation in this city, relative to the reciprocal admission of the natural products of the United States and Canada free of duty into the territories of both countries. It will be seen by the accompanying documents that the late Secretary of the Treasury recommended, in his correspondence with the Committee on Commerce in the House of Representatives, reciprocal free trade in the natural products of the United States and Canada; that in March and June, 1849, a correspondence was opened between the British charge' d'affaires then residing in Washington and the Secretary of State upon the subject of a commercial convention or treaty to carry out the views of Her Majesty's Government in relation thereto, and that the proposition for such a convention or treaty was declined on the part of the American Government for reasons which are fully set forth in the note of the Secretary of State to Mr. Crampton of the 26th of June last. During the negotiations connected with this correspondence, not considering the markets of Canada as an equivalent for those of the United States, I directed the Secretary of State to inquire what other benefits of trade and commerce would be yielded by the British authorities in connection with such a measure, and particularly whether the free navigation of the St. Lawrence would be conceded to us. That subject has accordingly been presented to the British Government, and the result was communicated by Her Majesty's minister in Washington on the 27th of March last in reply to a note from the Secretary of State of the 26th of that month. From these papers it will be perceived that the navigation of the St. Lawrence and of the canals connecting it with the Western lakes will be opened to the citizens of the United States in the event that the bill referred to in the correspondence, providing for the admission of their natural products, should become a law. The whole subject is now submitted to the consideration of Congress, and especially whether the concession proposed by Great Britain is an equivalent for the reciprocity desired by her.

Z. TAYLOR.