it is not the desire of Her Majesty's Government, or of the Government of this Dominion, to either waive or enforce the more extensive but legal construction of the Article already cited in the foregoing respects, the policy of granting American subjects the liberty to fish within three miles of the Colonial shores, and the conditions upon which such liberty is to be permitted, became, on this branch of the subject, questions of very serious moment, and entitled to very serious and mature consideration. Upon the first of these points, I think I may assume that both the Imperial and Dominion authorities, entertain no other idea than that of insisting, under any circumstances, upon the absolute right to exclude American fishermen from any free participation in the inshore fisheries. Any other policy would, I conceive, under existing circumstances be unjust and suicidal, particularly in view of the impositions of the United States Government upon British caught fish, and would certainly eventuate in general dissatisfaction of the most aggravated kind. I trust therefore that

it is unnecessary to dwell upon this point. Upon the second, viz.: The conditions upon which, if permitted, the liberty to fish is to be enjoyed by the subjects of the United States, difference of opinion may no doubt exist, and the character and form of those conditions are of course subject to question. The experience of the past may, in this particular as in others, be a guide for the present. I shall therefore examine the operation of the licence system during the last three years, and present the results. In 1866, the tonnage duty

under that system was 50 cents per ton. In 1867 was $1.00 per 229 ton, and in 1868, $2.00 per ton. In 1866 about eight hundred

vessels were engaged in the fisheries of the Gulf and River St. Lawrence, of which number, 454 took out licences, the aggregate amount of tonnage dues paid by them being $13,016.85. In Nova Scotia there were 354 licences issued, the collections on which amounted to $9,368.50. In Prince Edward Island 89 licences were taken out, and dues paid to the amount of $3,339.35. Only 10 licences were taken out in the late Province of Canada, the payment on which was $296. But one was issued in New Brunswick, yielding $13, and none were granted in Newfoundland.

In 1867, in Canada and New Brunswick no licences were issued. In Nova Scotia the whole number issued was 269. The amount received therefor was $13,929. This amount is proportionably greater in consequence of the double rate or [of] $1 per ton, as against 50 cts per ton in the previous year. The actual diminution in the number of licences may be regarded as owing in some measure to the practice of giving three warnings to intruders, before enforcing acceptance of licence, or making seizure.

In 1868, 49 American fishermen took out licences in Nova Scotia, the tonnage dues on which at $2, per ton amounted to $4,691.50. The diminution in this year of the number of licences accepted, is attributed to the high rate of the tonnage duty. From personal observation and inquiry I am disposed to charge it to another but additional reason, and that is the exemption from all restrictions practically enjoyed by American fishing vessels at the several ports and on the shores of Prince Edward Island. In this connexion I would submit the very strange and startling fact that only five or six licences were issued by the Island authorities in the past year. Free fishing upon grounds within the most liberal interpretation of the

phrase "prohibited limits" was the rule and not the exception. This unquestionably passive toleration on the part of the Island authorities is certainly quite inconsistent with the arrangements entered into with regard to the mutual adoption of the licence system and the exaction of a similar rate of tonnage dues between the Government of the Island, and that of Canada.

On the assumption that the policy of exacting tonnage dues from the American fishermen for the privilege of fishing in British waters, will be continued for the present, the question naturally presents itself, at what amount such exaction should be placed. The statistics of the last three years show a decided diminution in the acceptance of licences by the Americans in proportion to the increase of duty payable thereon; and I am strongly of opinion that henceforth it will be extremely difficult, if not impossible, to induce them to accept licences, unless the dues be placed at the lowest rate yet exacted. I derive this view from personal intercourse with many of the parties concerned; and even in their submission to that rate, I might be disappointed, if the authorities of Prince Edward Island continue practically to encourage the refusal to take licences from the authorities of the Dominion, by permitting on the shores, within the jurisdiction of that Island, the free fishing to which I have already adverted. There is, I am aware, a considerable class of persons, who advocate a continuance of the present high, or even a higher rate of duty as the condition of licence. But it must be borne in mind that in the present state of this question a high rate of duty means efficient protection and its accompanying expense. Without that efficient protection, licences at any rate, exceeding a nominal amount, and I consider 50 cents per ton to be an amount of that character, will not be accepted. And this brings me to the consideration of the nature and character of such protection. I would be the last man to utter a word or write a line that could be construed as a matter of reproach towards the Imperial naval authorities, in respect of their services on this point, but the facts of the case compel me to say that I cannot regard with favour the present system of the protection of the fisheries. The inefficiency of the protection now afforded may be attributed to two causes. In the first place, Her Majesty's ships are sent on this service at too late a period in the fishing season. It is during the months preceding the fall of the year that their presence on the fishing grounds is most required. Later in the season the fish resort to deeper water, and are to be found outside of the prohibited limits. Protection therefore is not then necessary. As an illustration of the habits of the fish, as well as of the necessity of the vessels engaged in the protection of the fisheries being on the ground at an earlier period, I may mention that I was credibly informed, when at Georgetown, Prince Edward Island, by an eye witness of the fact, that in the month of August last an entire fleet of about 100 sail of American fishermen had actually and very successfully fished for several days, without interruption, in the land-wash near Rustico, on the North side of the Island, of course to the great insult and detriment of British subjects residing there. I was also given to understand that Her Majesty's ships Niger and Barracoutta, detailed as the protective force during the last season, did not reach the shores of Cape Breton and Prince Edward Island until the beginning of the month of October. In the

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second place, the vessels ordinarily employed on this service are of considerable size and being steamers, their approach is readily discerned by actual intruders and thus time is afforded for escape. It is a remarkable fact that not a single seizure has been made during the season.

The conclusions suggested by the foregoing state of facts are very intelligible. If the present high or any higher rate of tonnage dues is to be continued, and in view of the hostility which such exactions will undoubtedly induce, the water police to be provided, must be of corresponding power of control, and perfect good faith, material aid and activity on the part of the authorities of Prince Edward Island must be demanded. As I have already intimated, the force now provided seems of a character ill-calculated to answer the purpose for which it is designed. Upon a careful consideration of the subject, and having conferred with many persons whose opinions are entitled to weight, I am led to entertain the opinion that the aid of H. M. ships of the class now in use might to some extent be dispensed with. A single vessel of war discreetly stationed in the vicinity of the principal fishing grounds, say alternately at Port

Hood, Cape Breton, and Georgetown, Prince Edward Island, 230 and perhaps an additional port to the north-ward of the Island, from the first of July to the tenth of November, would be sufficient, if in connection with her and subject to proper communication with her Commander, four or five fast-sailing schooners of similar size and appearance to the ordinary class of American fishing vessels, with a commissioned officer, and sufficient crew, and duly armed, were appointed to cruise during the above mentioned period within the points embracing the fishery rights of the Dominion. The expense of such a force is easy of ascertainment, and it would no doubt be considerable. This however would be met to some fair extent by the revenue from dues, and possibly by a share of seizures. This suggestion is predicated upon the exaction of what may be termed a high rate of tonnage dues. If on the other hand the nominal rate of 50 cents per ton as hereinbefore stated, and which is more as an explicit acknowledgment of our right than as an equivalent for the privileges conceded, be sanctioned. I feel well assured that although the revenue derived would be of smaller amount, yet the force necessary to ensure its collection might be of a very inferior, and consequently less expensive description, while the national bitterness which this question is daily engendering, would be largely averted.

And here I may offer some observations as to what in my judgment would be the probable effects of dealing with the American fishermen in the more liberal spirit of cheap licences. In a former part of this communication I have referred to the active and advantageous business relations subsisting between them and the merchants, traders, and others, in the Eastern Counties of Nova Scotia, and particularly at the Strait of Canso, during the existence of the Reciprocity Treaty, and pointed out the very prosperous condition of our own people during that period. Much depression has prevailed since its abrogation, caused principally by the exaction of a higher rate of tonnage dues, which has induced the Americans to transfer their former business relations to Prince Edward Island, where the terms of the Convention of 1818 are practically permitted to be unrecognized. The

suggestion I have offered with regard to the imposition of a nominal duty of 50 cents, seems to me if adopted as well calculated to restore to the sections of Nova Scotia referred to, much of their former prosperity and consequent contentment. I firmly believe that licences at that rate will be generally if not universally accepted. The liberty to use our ports as a consequence of such acceptance of licences, will be again embraced. The transfer of their trade to Prince Edward Island will be checked, if not abandoned. The Americans will use the more convenients ports of the Strait of Canso. Their cargoes will be landed and stored there, while if they desire to ship the same to their own home markets, facility to do so by steamers which pass through the Strait of Canso weekly will be at hand. And I feel convinced that a marked improvement in our trade and business generally would be the immediate result.

There is another branch of the general subject on which I take the opportunity to remark, and that is the probability of a large amount of American caught fish being forwarded as British caught fish to ports in the United States by steamboats trading from British ports and particularly from ports in Prince Edward Island. There is an obvious difficulty in obtaining accurate information on this point. The records of the Custom Houses in the United States would be the only means of arriving at just conclusions in the matter. I may however give an extract of a letter received from a merchant of standing, residing at St. John, N. B., which throws some light upon the state of the case. It is dated 4th December, 1868. The writer says. "I fear the Bostonians are doing a large illicit trade in British caught mackerel in Prince Edward Island. There have been large quantities passing through here this season, principally Prince Edward Island brand. I learn that they are forwarded by an American, who is carrying on a shore fishery at the Island in small boats, and in addition, buys all he can get, and is allowed by the authorities at Washington, to enter his fish as American caught, he being an American citizen. The shipments have been from 200 to 300 barrels by each boat semiweekly since I came here, up to last week, and as I am told, was going on for some time before. I presume they will amount in the aggregate to some 4000 or 5000 barrels for the season by this route. They arrive here by railway from Shediac, and likely the same parties are shipping by the Charlottetown, Halifax and Boston line also. This may lessen your Bay fares, as many of that catch may be purchased by them, and entered free of duty at Boston."

The foregoing seems to embrace the principal points of inquiry suggested by your communication and instructions, and I trust that the same will be acceptable to the Department and the Government. I have the honour to be, Sir,

Your most obedient servant,
(Signed,)

Hon. P. MITCHELL,

Minister of Marine and Fisheries.

STEWART CAMPBELL,

No. 144.-1870, January 8: Report of Committee of Privy Council of Canada approved by Governor-General in Council.

The Committee having had under consideration the reports of the Minister of Marine and Fisheries, dated respectively the 15th and

20th ult., in connection with certain despatches from Lord Granville, on the subject of protecting the fisheries of Canada, beg to recommend:

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That the system of granting fishing licences to foreign vessels, under the Act 31 Vic., c. 61, be discontinued, and that henceforth, foreign fishermen be not permitted to fish in the waters of Canada.

Also, that six suitable sailing vessels, similar to La Canadienne, in addition to the two vessels at present employed, to be chartered and equipped for the service of protecting the Canadian inshore fisheries from illegal encroachments; the vessels to be connected with the Police Force of Canada, and to form a marine branch of the

same.

They further recommend that Her Majesty's Government be requested to maintain on the fishing stations of Canada, a sufficient naval force to prevent riotous combinations among foreign fishermen, and to protect the officers of the police in the execution of their duties.

With reference to Lord Granville's proposal to support the local force, by the presence of only one vessel of war, the Committee consider this measure of support would be inadequate, and hope that Her Majesty's Government may be induced to increase it. Certified.

W. H. LEE, Clerk Privy Council.

No. 145.-1870: Instructions from Vice-Admiral Wellesley to Officers employed in Protection of Fisheries.

INSTRUCTIONS FOR PROTECTION OF THE FISHERIES, 1870.

By George Greville Wellesley, Esquire, Companion of the Most Honourable Order of the Bath, Vice Admiral in Her Majesty's Fleet, and Commander-in-Chief of Her Majesty's Ships and Vessels employed, and to be employed, on the North American and West Indian Station.

To the respective Captains, Commanders and Commanding Officers of H. M. Ships employed in the protection of the Fisheries.

It being my intention to employ H. M. Ship under your command in the protection of the Fisheries, the following Instructions are furnished for your guidance in conducting that important duty, and they comprise what is necessary for your employment on any of the Stations to which you may be detached for that purpose.

1. The mode in which it is the decision of Her Majesty's Government that the United States fishermen are to be dealt with, is clearly set forth in the annexed letter (A) from the Colonial Secretary to the Lords Commissioners of the Admiralty, dated 12th April, 1866. In the margin of this letter are noted explanations for your guidance, which have received their Lordships sanction. (See also Article 7.)

2. The several Stations with their limits you will find described in the Appendix (B).