The Sun.
London, England, 1840-07-16 00:00:00

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the draft of a convention to regulate the proceedings of 1
the proposed commission. The preamble of that draft re-
cited texually the agr.ement that had been come to by
means of notes which had been exchanged between the
two Governments ; and the articles of the draft were
framed, as her Majesty's Government considered, in arid
conformity with that agreement.
But the Government of the United States did not think
proper to assent to the convention so proposed.
The United States Government did not indeed allege
that the proposed convention was at variance with the re-
sult of the previous correspondence between the two (3o-
vernruents ; but it thought that the convention would es-
tablish a commission of " mere exploration and survey ;"
and the President was of opinion that the step next to be
taken by the two Governments should be to contract stipu-
lations bearing upon the face of them the promise of a final
settlement, under some form or other, and within a reason-

able time.
The United States Government accordingly transmitted
to the undersigned, for communication to her Majesty's
Government, in the month of July last, a counter draft of
convention, varying considerably in some parts, as the Sc.
cretary of State of the United States admitted in his letter
to the undersigned of the •tl9th of July last, from the draft
proposed by Great Britain. But the Secretary of State
added, that the United States Government did not deem
it necessary to comment upon the alterations so made, as
the text itself of the counter draft would be found suffi-
ciently perspicuous.
Her Miesty's Government might certainly well have
expected that some reasons would have been given to ex-
plain why the United States Government declined to con-
firm an arrangement which was founded upon propositions
made by that Government itself, and upon mod►fications to
which that Government had agreed; or that if the Ame-
rican Government thought the draft of convection thus
proposed was not in conformity with the previons agree-
ment, it would have pointed out in what respect the two
were considered to differ.
Her Majesty's Government, considering the present
state of the boundary question, concur with the Govern-
ment of the United States in thinking that it is on every
account expedient that the next measure to be adopted by
the two Governments should contain arrangements which
will necessarily lead to a final settlement; and they think
that the convention which they proposed last year to the
President, instead of being framed so as to constitute a
mere commission of exploration and survey, did, on the
contrary, contain certain stipulations calculated to lead to
the final ascertainment of the boundary between the two
countries.
There was, however, undoubtedly one essential diffe-
rence between the British draft and the American counter
draft. The British draft contained no provision embody-
ing the principle of arbitration ; the American counter
draft did contain such a provision.
The British draft contained no provision for arbitration,
because the principle of arbitration had not been pi oposed
on either side during the negotiations upon which that
draft was founded ; and because, moreover, it was under-
stood at that time that the principle of arbitration would be
decidedly objected to by the United States.
But as the United States Government have now ex-
pressed a wish to embody the principle of arbitration in
the proposed convention, her Majesty's Government are
perfectly willingly to accede to that wish.

• • • •
• •
The undersigned is, however, instructed to add that
there are matters of detail in the American counter draft,
which her Majesty's Government cannot adopt. The un-
dersigned will be furnished from his Government, by an
early opportunity with an amended draft, in conformity
with the principles above stated, to be submitted-to the
consideration of the President. And the undersigned ex-
pects to be at the same time furnished with instructions
to propose to the Government of the United States a fresh
local and temporary convention, for the better prevention
of incidental border collisions within the disputed territory,
during the time that may be occupied in carrying through
the operations of survey or arbitration.
The undersigned avails himself of this occasion to renew
to the Secretary of State the assurance of his distinguished
consideration. H. S. FOX.
. _

Te the Hon. John Forsyth, &c.
,IR. FORSYTH TO MR. FOX.
Department of State,
Washington, 26th June, 1840.
The undersigned, Secretary of State of the United
States, has had the honour to receive a note, addressed to
him on the 22d instant, by Mr. Fox, Envoy Extraordinary
and Minister Plenipotentiary of Great Britain, enclosing
printed copies of the Report and Map laid before the Bri-
tish Government by the Commissioners employed during
the last season to survey the territory in dispute between
the two countries, and commanding her Britannic Majes-
ty's Government to adhere to the two principles which are
the main foundation, &c.

Mr. Fox states that his Government might have ex.
pected that, when the American counter draft was com-
municated to him, some reasons would have been given to
explain why the United States Government declined ac-
cepting the British draft of Convention, or that, if it
thought the draft was not in conformity with previous
agreement, it would have pointed out in what respect the
two were considered to differ.

In the note which the the undersigned addressed to Mr.
Foz on the 29th of July of last year, transmitting the
American counter draft. I stated that, in consequence of
the then recent events, &c.

JOHN FORSYTH

H. S. Fox, Esq., &c. &c.

The Great Western sails to-day at 1 o'clock, and carries 1
out to England and to Europe, a vast quantity of inter-
esting news on American affairs—some good—some bad
—and some neither the one thing nor the other. Our
double sheet to-day contains the best account of all the
movements that have taken place in politics, finance,
morals, or society, since the sailing of the British Queen.
Since the :ailing of the latter vessel, Congress has been
making considerable progress in legislation. According
to all appearances, that body will pass the Sub-Treasury
Bill, and adjourn sometime next month. A very import-
ant Bill has been passed by the Senate, and is now in the
House, on the subject of Bankruptcy--but it is very doubt•
ful whether it will pass at the present Session. If it
should pass it is calculated to produce as great a revolu- 1
tion in values as the famous Distribution Law and Specie
Circular. By throwing $200,000, the assets of voluntary
bankrupts, upon the markets, it would cause a fresh fall
in all values, and thus increase the number of failures.
But it is doubtful whether it will pass or not.
Oa the subject of politics, nothing certain is known.
Both parties are very ardent, and very confident—but
cool, calculating men look upon the result of the contest
between Van Buren and Harrison as doubtful. The friends
of General Harrison have been getting up splendid con-
ventions and celebrations.
The crops bid fair to be 15 or 20 per cent, more abun-
dant than last year—but the money affairs of the south are
as bad, and es much depressed as ever. Good crops and
economy, however, in progress of t;rne, will carry us over
our difficulties.
CANADA.—The administration of Governor Thomson,
so far as we can judge by the tone of the Press, is
gaining steadily upon the confidence of the people.
lie seems to appreciate the capabilities of the country,
as well as the wants of the inhabitants, and the vari•
ous enterprises for intern nal improvement arc fsstcrcd
and encouraged. The permanent works on the Wel-
land Canal are in a state of forwardness, and the
project of a railroad from the head of Lake Ontario
across too the St. Clair River, is under consideration.
The adoption of a liberal and enlightened policy GII this
a❑d other subjects, will greatly swell the busness of the
Upper Province, and enable the St. Lawrence to compete
with the Hudson River in the commerce of Lake Erie.
The number of emigrants who have arrived in the Pro-
vinces this year, has been very great, a large portion of
them are calculated to make useful citizens. All appre-
hansions of a rupture on account of the boundary question
appear to have subsided, and no fears are entertained at
present of any movement on the part of the patriots. The
release of M'Kenzie and the escape of Bill Johnson were
severely commented upon in some of the papers ; but on
the whole, the tone cf public feeling has softened down,
and the relations of the inhabitants on both sides of the
t!order are generally of an amicable nature. The villanous
attempt of Lett and his accomplice to burn the steamer
Great Britain at Oswego, produced some terrporary ex-
asperation of feeling, but it was soon quieted.
A regiment of 11,ghlanders was reviewed at Niagara
Falls, a short time since, at which a number of distin-
guished citizens from the United States, Great Britain,
and both Provinces were present. The appearance of the
troops was splendid, and the ' festivities of the occasion
were enlivened by a magnificent ball given by Lord Mul •

grave.
The arrival of the steamer Unicorn at Halifax gave oc-
casion for great manifestations of joy. By the establish-
of Cunard's line of steamers, the time required fur com-
munication between Liverpool and Halifax has been
diminished at least one-third, and the growth and pro.
.perity of Nova Scotia, and the other Provinces must be
greatly pror oted thereby.
The Western, as we said on Monday, goes crowded
with passengers, and there arc about fifty who have been
disappointed in securing berths in her. We understand
that there are now thirty-two names down on the pas-
senger list of the British Queen, to sail hence on the Ist
of August, and the probability is she will also sail full
to theme" brim." She can accommodate 160.
MENaco.—This unfortunate country is still torn to
pieces with internal convulsions. The struggle between
the rival factions of Centralists and Federalists, seems
drawing to a close in the eastern section of the country.
Campeachy has no doubt surrenncdeeorefdthbeeffuecathitasntiismien, rit3r(i)csl,.
in that event, the whole pros',
session of the Federalists. This is a very important de-
monstration, and may lead to an entire revolution in
Mexico. The country is unfitted to a [:publican for m
cf
Geaernment, and no political movement can promise the
degraded and debased inhabitants security to life or pro-
perty.
TEXAS.—The inhabitants of this young Republic are as
restless and mercurial as ever. They aro now determined
to compel a recognition of their independence by Mexico,
or to force that et:wintry into a war. At the last adviecs the
whole navy was a Galveston, ready for a hostile cruise
along the Me:tican coast, under Commodore Moore. It is,
of course, impossible to predict the result with any degree
of certainty, but Mexico has no efficient naval force, and it
is not impossible that she may acknowledge the independ-
ence of Texas, and thus get rid of an ugly customev. The
Indiana along the south-west border of Texas still continue
to be troublesome, aud their depredations about Sea An-
tonio are quite frequent.
President Lamar has lately visiteci several of the most
important points in the country, and he was uniformly re-
ceived with suitable respect.
Texas is a country of ineaanstible physical resources,
and great capability every way, and nothing hut intestine
divisions can stop her onward progress.

NEW YORK.,
INcnEasit CP EgICRATION.—There has been a great in.
crease in the living riches of this country this year com-
pared with last. Since the first day of April, no less than