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No. 7.-ECCLESIASTICAL STATE OF CANADA.-CATHOLIC AND
PROTESTANT.

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NOTE C.

VERMONT NEGOTIATIONS.

No. 1.-GOVERNOR SIMCOE TO MR. DUNDAS.

(Archives, series Q, 278 p. 259.)

AUGUST the 2nd 1791.

SIR, AS I understand from Mr. Levi Allen of Vermont that He is in expectation of being admitted to an interview with you, I conceive that it will not be disagreeable to you if I take the Liberty of communicating to you those circumstances with which I have been acquainted relative to his former transactions with Lord Grenville; and some few observations which I flatter myself may give you some insight into his views, preparatory to such conversation as you shall think proper to hold with him.

Mr. Allen as commissioned under the great Seal of Vermont presented a Memorial to the Committee of Privy Council on the 13th June 1789, Stating the wishes of Vermont to form a commercial intercourse with this country, a Similar Memorial having been presented to the Secretary of State, upon Ld. Grenville's Requisition. The Lords of the Committee of the Privy Council for trade made a report upon it, full of information on the 17th of April 1790: a twelvemonth having nearly elapsed since the original Report had been presented. In the first conversation that I had the honor to hold with Ld. Grenville on Canadian matters, I took the Liberty of pressing upon his Lordship the necessity of cultivating the good disposi-tion of Vermont, of whose importance his Lordship seemed to have formed a just value by having already transmitted Allens Letter for the Opinion of the Privy Council; & I then told his Lordship that totally unapprized of the goodness He had to think of me for the Government of Upper Canada, & unconnected with his Majesty's Ministers, I had come to town with the determination to do my utmost in support of an Object which seemed to have been hitherto unattended to (insomuch that Allen was about to depart) but which I had always considered of the greatest consequence to this Country. The appearance of the Spanish War added to the propriety of forming this mutual connection, and I waited on Ld. Grenville with Mr. Allen, his Lordship gave him a hundred pounds, which Allen received as his annual compensation for Losses as a Loyalist which He affirms himself uniformly to have been, & in consequence to have suffered a long Imprisonment to the destruction of his property.

The Misfortunes of the British Army to the Southward prevented Vermont from joining Great Britain as is evident from the correspondence in your office between the Allens Gen'l. Haldimand & Sir H. Clinton.

This province has now two separate Interests: That part which borders on the North River naturally wishes for a connection with New York; Robinson the late Governor is the Chief of this description of men: the other, by far the Larger Division, & what is of more importance, unlimited in its Lands, & therefore hourly encreasing in its population, from the circumstance of their waters flowing into the St. Lawrence is naturally disposed to a connection with Canada; of this Party are the Allens & Chittenden, at this moment (as L. Allen believes) The Governor; and who the Past year excepted has been the Governor of this powerful State from its commencement. Levi Allen's first mission was to Lord Dorchester; his Lordship opened the Trade to Vermont, except in some few particulars, at the same time he did so, to all the Inhabitants without distinction who lived upon the shores

of the Lakes.

Levi Allen came to London; He wished the Trade to be further enlarged, & some inconveniences under which it laboured to be done away.

He told me that Commerce was the "opening wedge" by which G. Britain could work upon & command Vermont; & in the Spirit of the expression, & with undissembled Intentions, fully as ambitious in the point of honor, as they were self interested in that of Commerce. He was anxious to return to Vermont directly, unconnected with the Canada Merchants, & independant of them, with a cargo suited to the market, that He might make a display of his services, & of the Commercial advantages that He had obtained & might strengthen by these means his family interest & connections & prevent Vermont from listening to the overtures of Congress.

Among others, I gave him some credit & procured him more, but his voyage was delayed by his hands being pressed, & other mishaps; so that he could not reach the Sorrel; but bore away for Georgia. He is returned with a sufficient cargo to pay his debts, but unfortunately, at present there being little vent for that commodity, He has been obliged, to warehouse it at Liverpool.

I think it proper to submit this succinct account to you; to which I add that I have an opinion of his Honesty; & that I have no doubt, but that his Brother Ira Allen (Ethan being dead) is of the same sentiments that I believed him to have been of during the War. "That a neutrality was the proper policy of Vermont, but that if she could not preserve it her interest lead her to join Canada."

Since Levi Allen's absence an alteration has taken place in the affairs of Vermont, Chittenden suddenly lost his election, & Robinson was chosen Governor; &it is affirmed that Vermont has joined Congress. Allen says, that it was by surprize and accident, that Robinson obtained the Government that Chittenden is now rechosen, & that He believes Congress has resolved to admit Vermont into the Confederation, but that Vermont has not yet decisively resolved to join Congress. This seems to be matter of conjecture tho' not without probability; perhaps Government may have better information on this head. Allen states, That the meeting of the Assembly of Vermont is in October. That he wishes to be present at it, altho' he should fail in what seems to be the great object of his ambition, He being able by a Cargo, directly imported from this Country to exemplify the advantages of a Commercial Intercourse.

By the admission of Vermont & Kentucky, there are now fifteen States in the Alliance, & I beg leave to offer a few remarks why in my opinion a connection with each of these new States, is more necessary & profitable to G. Britain than with any other separate State of the whole Confederacy. The original United States passed the Tzeniths of their power, almost, at the moment of their Existence. This was effected partly by the British Acts of Parliament which restricted their West India Trade, but chiefly by the immense Emigration which took place to the Southward, wasting their Strengths at the present, & offering at no very distant period natural Allies to those who shall command the Mouth of the Mississippi, or be in possession of the Chain of Lakes which stretch themselves out parallel to the Line of Emigrations.

Vermont has grown and is daily growing into great strength, her position in the Neighbourhood of Quebec leaves that province absolutely at her mercy. She can strike at the ill fortified Capital, or cut off all the Communications of the St. Lawrence as she pleases, on the other Hand, in Alliance with Canada, she presents a formidable Barrier of Mountains, which are impregnable fences against the United States.

Kentucky has not so many advantages in a military view for offence or defence, but in case of a rupture with Spain her alliance would be of the utmost importance, The Committee of the Privy Council in their Report of April the 17th 1790 state, that the Eastern States of America wish to admit Vermont, & the Southern States, Kentucky into the Confederation as reciprocal Ballances.

The United States are certainly divided in Interest, & the British connection with them stands upon that footing, which requires great circumspection. The Commerce of the Southern States is an immediate advantage; The Power of the Eastern an Object of future apprehension & caution. Vermont & Kentucky have certainly separate & distinct interests from either; with the Southern States; they

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