may have made a mistake. Nevertheless I feel it my duty to advise either to pursue the herring fisheries for the year 1906 with purse seines or to continue with the nets only with crews shipped in American ports or waters.

Very respectfully,

(Signed)

A. P. GARDNER.

No. 249.-1906, September 3: Letter from Sir Edward Grey to Mr. Whitelaw Reid.

FOREIGN OFFICE, September 3, 1906. YOUR EXCELLENCY, In my note of the 14th August I stated that His Majesty's Government hoped shortly to be able to submit to the Government of the United States proposals for a provisional Arrangement, which would secure the peaceable and orderly conduct of the forthcoming herring fishery on the coast of Newfoundland. I have now the honour, on the understanding mentioned in my note, viz., that the Arrangement would be in the nature of a modus vivendi to be applicable only to the ensuing season, and not in any way to affect the rights and claims of either party to the Convention of 1818, to submit the following proposals, viz.:

(1.) His Majesty's Government will not bring into force "The Newfoundland Foreign Fishing Vessels Act, 1906," which imposes on United States' fishing-vessels certain restrictions in addition to those imposed by the Act of 1905.

(2.) The provisions of the first part of section 1 of the Act of 1905 as to boarding and bringing into port, and the whole of section 3 of the same Act will not be regarded as applying to the United States' fishing-vessels.

(3.) The United States' Government will in return direct their fishermen to comply with the Colonial Fishery Regulations, as was in fact done last year, with the exception of certain breaches of the prohibition of Sunday fishing.

(4.) The demand for payment of light dues will be waived by His Majesty's Government.

(5.) The United States' Government will direct the masters of United States' fishing-vessels to comply with the provisions of the Colonial Customs Law as to reporting at a customs-house, on arrival in and departure from colonial waters.

2. As regards head (3) of this Arrangement, I would point out that of the three restrictions which the Colonial Fishery Regulations impose on the herring fishery in the waters open to United States' fishermen, the first, viz., the prohibition of "purse" seines, is in force in all the waters of the Colony. It is also in force in all the waters. of Canada. The second, the prohibition of herring traps, is also in force in Placentia. St. Mary's and Fortunes Bays, and in the district of Twillingate. The third, the prohibition of "herring" seines, is in force also subject to some reservations as to baiting purposes in the inner waters of Placentia Bay, and in certain waters on the northeast coast. The application of these three restrictions to the herring bays of the west coast is, of course, prior to and not in any way connected with the present policy of the Colonial Government, and His Majesty's Government have the testimony of the naval officers who have been employed on the Treaty Coast as to the destructive results

of the use of seines. His Majesty's Government therefore hope that the United States' Government will recognize that His Majesty's Government are, apart from any question of right, acting in the interests of the continuation of the common fishery in proposing as a part of the provisional Arrangement compliance with the three restrictions mentioned.

The fourth restriction, viz., the prohibition of Sunday fishing, is of general application throughout the Colony, and is also in force in Canada. Having regard to the duration of the fishing season and to other circumstances, His Majesty's Government do not feel that compliance with this prohibition involves any material inconvenience to United States' fishermen. On the other hand, in view of the strong feeling against Sunday fishing which prevails in the Colony, the disregard of it is fraught with possibilities of serious disorder. It is therefore hoped that the United States' Government will assist His Majesty's Government in the maintenance of peaceable relations between the two sets of fishermen by not countenancing any breach of the prohibition during the ensuing season.

3. As regards head (5), as explained in the Memorandum communicated to your Excellency on the 2nd February, a call at a customs-house, whether on entering or on leaving the waters of the Colony, need involve no interference with a vessel's fishing operations, and is in itself a requirement which may be reasonably made in the interests not only of the colonial revenue but of the United States' fishermen.

4. I trust that you will be able to inform me at an early date that the Arrangement outlined above is agreed to by your Government.

I have, &c.

504 No. 250.-1906, September 12: Memorandum communicated by Mr. Whitelaw Reid to His Majesty's Government.

My Government hears with the greatest concern and regret that in the opinion of His Majesty's Government there is so wide a divergence of views with regard to the Newfoundland Fisheries that an immediate settlement is hopeless.

But it is much gratified with His Majesty's Government's desire to reach a modus vivendi for this season, and appreciates the readiness to waive the Foreign Fishing Vessels Act of 1906. This and other restrictive legislation had compelled our fishermen to use purse seines or abandon their Treaty rights.

My Government sees in the offer not to apply Section 3, Act of 1905, and that part of Section 1 relating to boarding fishing-vessels and bring them into port fresh proof of a cordial disposition not to press unduly this kind of regulation.

Our fishermen will also gladly pay light dues, if not hindered in their right to fish. They are not unwilling either to comply with the regulation to report at Custom-houses when possible. It is sometimes physically impossible, however, to break through the ice for that purpose.

Most unfortunately the remaining proposals, those as to purseseining and Sunday fishing, present very grave difficulties.

We appreciate perfectly the desire of His Majesty's Government to prevent Sunday fishing. But if both this and purse-seine fishing are taken away, as things stand there might be no opportunity for profitable fishing left under our Treaty rights. We are convinced that purse seines are no more injurious to the common fishery than the gill nets commonly used-are not, in fact, so destructive and do not tend to change the migratory course of the herring as gill nets do, through the death of a large percentage of the catch and consequent pollution of the water.

The small amount of purse-seining this season could not of course materially affect the common fishery anyway. Besides many of our fishermen have already sailed, with purse seines as usual, and the others are already provided with them. This use of the purse seine was not the free choice of our fishermen. They have been driven to it by local Regulations, and the continued use of it at this late date this year seems vital.

But we will renounce Sunday fishing for this season if His Majesty's Government will consent to the use of purse seines, and we cannot too strongly urge an acceptance of this solution.

No. 251.-1906, September 20: Letter from Sir. Edward Grey to Sir. M. Durand.

FOREIGN OFFICE, September 20, 1906.

Sir, The American Ambassador called at this Office to-day, and requested an early reply to the Memorandum communicated by his Excellency on the 12th instant respecting the proposed modus vivendi in regard to the Newfoundland Fishery question.

His Excellency was informed that His Majesty's Government were doing all that they could do to expedite an early and satisfactory reply, that they were pressing the Newfoundland Government to authorize temporarily the use of purse seines, on the understanding that care would be taken not to interfere with other modes of fishing, and that they hoped that, if this were agreed to, the United States' Government would do all in their power to discourage and prevent the engagement of Newfoundland fishermen just outside the 3-mile

limit.

Mr. Whitelaw Reid said that he would telegraph in this sense to his Government.

I am, &c.

(Signed)

EDWARD GREY.

No. 252.-1906, September 25: Memorandum communicated by His Majesty's Government to Mr. Whitelaw Reid.

His Majesty's Government have considered, after consultation with the Government of New Foundland, the proposals put forward in the Memorandum communicated by the United States' Ambassador on the 12th instant respecting the suggested modus vivendi in regard to the Newfoundland fishery question.

They are glad to be able to state that they accept the arrangement set out in the above Memorandum, and consent accordingly to 505 the use of purse-seines by United States' fishermen during the

ensuing season, subject, of course, to due regard being paid, in the use of such implements, to other modes of fishery.

His Majesty's Government trust that the United States' Government will raise no objection to such a stipulation, which is only intended to secure that there shall be the same spirit of give and take and of respect for common rights between the users of purse-seines and the users of stationary nets, as would be expected to exist if both sets of fishermen employed the same gear.

They further hope that, in view of this temporary authorization of the purse-seine, the United States Government will see their way to arranging that the practice of engaging Newfoundland fishermen just outside the 3-mile limit, which to some extent prevailed last year, should not be resorted to this year.

An arrangement to this effect would save both His Majesty's Government and the Newfoundland Government from embarrassment, which it is conceived, having regard to the circumstances in which the modus vivendi is being settled, the United States' Government would not willingly impose upon them. Moreover, it is not in itself unreasonable, seeing that the unwillingness of the United States' Government to forego the use of purse-seines appears to be largely based upon the inability of their fishermen to engage local men to work the form of net recognized by the Colonial fishery regulations.

The United States' Government assured His Majesty's late Government in November last that they would not countenance a specified evasion of "The Newfoundland Foreign Fishing-vessels Act, 1905." and the proposed arrangement would appear to be in accordance with the spirit which prompted that assurance.

FOREIGN OFFICE, September 25, 1906.

No. 253.-1906, September 26: Letter from Sir Edward Grey to Sir M. Durand.

FOREIGN OFFICE, September 26, 1906. SIR, Your Excellency is already aware that I had communicated to the American Ambassador a Memorandum containing the views of His Majesty's Government on the proposed modus vivendi on the subject of the Newfoundland fisheries.

On receipt of this communication, of which a copy was inclosed in my despatch of the 14th September, Mr. Whitelaw Reid called yesterday and said he had every reason to hope that the terms therein proposed would be accepted by his Government. He was not, however, quite sure as to what was meant by interference of purse-seines with other modes of fishing.

As to that part of the Memorandum dealing with the enlistment of Newfoundlanders outside the 3-mile limit, he expressed his personal conviction that his Government would do all that lay in their power to prevent the exasperation and irritation which is naturally caused by such proceedings just outside the limit; but he wished to throw out

a suggestion, that the best way to avoid such irritation would be to waive temporarily that clause in the Act of 1905 which makes it illegal to enlist men within the 3-mile limit.

He pointed out that nothing could prevent the American captains from enlisting men outside the territorial waters of Newfoundland, and that to waive the application of the latter part of the first section of the Act would prevent disputes cropping up, and would promote peace and harmony on the coast of Newfoundland.

I am, &c.

No. 254.-1906, October 1: Letter from Sir Edward Grey to Sir M.

Durand.

FOREIGN OFFICE, October 1, 1906.

SIR, I told Mr. Carter to-day that the suggestion contained in Mr.Whitelaw Reid's private letter, to suspend the clause in Section 1 of the Act of 1905 which prevented American vessels from recruiting fishermen in Newfoundland waters, if the Americans in return would stop using purse-seines after the 1st November, had been telegraphed to the Colony by the Colonial Office. If the Colonial Government accepted the suggestion at once, there would be no difficulty about including it in the modus vivendi, but in view of the fact that the legislation of 1906 in the Colony had been suspended, and that this had been done with very great reluctance, I assumed that the point. now raised would have to depend entirely on the opinion of the Colony with regard to it.

Mr. Carter asked me whether he was to understand that we wished the modus vivendi to be absolutely concluded and put in force at once, without waiting for the new point to be settled.

I said I should like not to answer this question until I had consulted the Colonial Office as to whether they desired to wait for the reply of the Colony on the new point now raised or not, but I would send a reply in a day or two.

I am, &c.

(Signed)

EDWARD GREY.

506 No. 255.-1906, October 4: Memorandum communicated by Iis Majesty's Government to Mr. Carter.

The proposals contained in Mr. Whitelaw Reid's private letter for the suspension of the recruiting clause in section 1 of the Act of 1905, if United States' fishermen would refrain from using purse seines after the 1st November, have been considered by the Newfoundland Government, but they find themselves quite unable to accept them.

In these circumstances His Majesty's Government would be glad to be favoured, at the earliest possible moment, with the views of the United States' Government on the modus vivendi proposals contained in Sir E. Grey's Memorandum of the 25th September in order that, if they are accepted, the Colonial Government and United States'