1880, communicating my great gratification at the friendly disposition of the British Cabinet, and saying that," the President would be quite ready to entertain any consideration which may be presented to the Secretary of State to relieve the question of the fisheries from its present difficulties."

On Ocober 27, 1880, Lord Granville addressed you the communication which is the subject of this despatch. I regret to find in this communication a disposition to restrict a liberal compensation for an acknowledged wrong by limitations of the fishing rights accorded by the Treaty to which this Government cannot consent. The use of the strand, not as a basis of independent fishing, but as auxiliary to the use of the seine in these waters where seine-fishing is the only possible mode of taking herring, has been maintained by this Gover ment in my former despatches, and would seem to be justified by the explicit declaration of Her Majesty's Government in the "case" submitted by them to the Halifax Commission, in which, referring to the use of the shores, it is affirmed "without such permission the

practical use of the inshore fisheries was impossible." But as 292 Lord Granville distinctly refers the propriety and justice of

these limitations to further negotiations I will not now discuss them, reserving what I deem it right to say for a future despatch in reference to the second of his Lordship's suggestions.

I have recalled to your attention the history of the Fortune Bay outrage, in order that you may express to Her Britannic Majesty's Government the great disappointment which this long delay in its settlement has occasioned. The circumstances under which it occurred were such as to induce this Government to anticipate prompt satisfaction, and it is impossible not to feel that the course which the British Government has thought fit to pursue has seriously affected public opinion as to the worth of the Treaty which it was hoped by both countries had promoted an amicable solution of longstanding difficulties.

The United States Government cannot feel that justice has been done its citizens in the protracted discussion which this occurrence has provoked, and while perfectly willing to endeavour in concert with Her Britannic Majesty's Government to find some practical and friendly solution of the differences of construction as to the Treaty provisions which their application seems to have developed, this Government cannot consent that, pending such discussion, its citizens shall be exposed to the indignity and loss which have been imposed upon them by these and like occurrences.

You will intimate courteously but firmly to Lord Granville that in accepting what we understand to be the proposition of Mer Majesty's Government it is understood as carrying the idea that the settlement suggested will be put in course of immediate execution, and that the determination of the amount of compensation will not be formally confined by any limitation arising from any construction of the Treaty which may be matter of difference between the two Govern

ments.

So useful to the great interests involved do I regard the prompt settlement of this incident in our fishery relations, that I would be glad to hear by telegraph that Lord Granville concurs in the simple form of award which I have proposed.

In imparting to the British Government these views, you may in your discretion read this despatch to Lord Granville and, if he desires. it, leave him a copy.

I am, sir, your obedient servant

(Signed)

WM. M. EVARTS.

No. 175.-1881, February 26: Letter from Earl Granville to the Lords Commissioners of the Treasury.

FOREIGN OFFICE, February 26, 1881.

MY LORDS, Your Lordships are aware that a correspondence has taken place with the Government of the United States with regard to certain claims of American fishermen on account of the interruption of their fishing on the coasts of Newfoundland, amounting to about 120,000 dollars, including interest.

The Government of the United States suggested that these claims. should be referred for assessment to the United States' Secretary of State and Her Majesty's Minister at Washington, or to delegates named by them, but it appeared to Her Majesty's Government that it was, for many reasons, desirable to avoid so dilatory a process of investigation, and I was accordingly authorized by the Cabinet to offer a sum of 15,0007 or 75.000 dollars, in full settlement of the claims. The United States' Minister has informed me to-day that this offer is accepted, and I have stated to him in reply that Her Majesty's Government are ready to hold this sum of 15,000 at the disposal of the Government of the United States on receiving his assurance that it is accepted in full of all claims arising out of any interruption of American fishermen on the coasts of Newfoundland and its depend· encies up to the present time, and without prejudice to any question of the rights of either Government under the Treaty of Washington. I have now therefore to request that your Lordships will be good enough to give the necessary directions for this amount to be held in readiness.

I have forwarded a copy of this letter to Her Majesty's Secretary of State for the Colonies, with whom it will rest to make application to the Governor of Newfoundland for the ultimate refund of this payment.

I am, &c.,

(Signed)

GRANVILLE,

No. 176.-1881, March 2: Letter from Mr. Lowell to Earl Granville.

LEGATION OF THE UNITED STATES,

London, March 2nd, 1881.

MY LORD, I have the honour to acquaint your Lordship that, having inquired of Mr. Evarts by telegraph of the nature of the as

surance that I might give your Lordship upon the receipt of 293 the proposed indemnity in the Newfoundland fishery transactions, I received from him an answer by cable late last evening to the following effect:

The assurance I may give is this: that the sum paid is accepted in full of all claims arising out of any interruption of American

fi-hermen on the coasts of Newfoundland and its dependencies up to this time presented to either Government and without prejudice to any question of the rights of either Government under the Treaty of Washington.

I am also permitted to say to your Lordship in giving this assur ance, that as a matter of fact no other claims than those embraced in the Fortune Bay list and those named in Mr. Evarts' despatch Number one hundred and nine, which I have shown to your Lordship, are within the knowledge of my Government for presentation or for its own consideration.

I have already communicated to your Lordship orally the substance of this cable message, at the interview which I had the honour of having with you this morning. I understood your Lordship to say in answer to this communication that Her Majesty's Government adhered to the terms they had finally offered: that is to say: that the sum of fifteen thousand pounds should be considered as received in full of all demands arising out of the interruptions of American fishermen on the coasts of Newfoundland up to date: otherwise that you would prefer to fall back upon the plan of a reference already suggested.

I sent a telegram to Mr. Evarts this morning informing him of your views.

I have the honour to me with the highest consideration my Lord Your most obedient humble servant,

The Right Honourable EARL GRANVILLE

J. R. LOWELL.

&c &c &c

No. 177.-1882, July 15: Despatch from Earl Granville to Mr. West (United States' Minister at London).

(No. 212.)

FOREIGN OFFICE, July 15, 1882. SIR, I have to acknowledge the receipt of your despatch No. 207 of the 9th May last, transmitting a Memorandum drawn up by the State Department of the United States' Government upon certain Acts of the Legislature of Newfoundland for the regulation of the fisheries in the waters of the Colony.

This Memorandum was communicated to you by Mr. Frelinghuysen in answer to the request of Her Majesty's Government to be favoured with any suggestions which the United States' Government might be prepared to offer with a view to the friendly consideration by the two Governments of such amendments of the Fishery Regulations as might be reasonably called for in the interests of both countries.

Her Majesty's Government regret to find that the Memorandum contains no suggestion of any kind tending to that object, but that it reopens a discussion on the construction of the Treaty of Washington which it was hoped had been exhausted in the previous correspondence.

The Memorandum cites the following extract from a despatch written by Mr. Evarts in 1878, as representing the views of the United States' Government:

This Government conceives that the fishery rights of the United States conceded by the Treaty of Washington are to be exercised wholly free from the

restraints and regulations of the Statutes of Newfoundland, now set up as authority over our fishermen, and from every other regulation now in force, or that may hereafter be enacted by that Government.

Her Majesty's Government, however, have never accepted that construction of the Treaty, and on this point I have nothing to add to the views expressed in the note which I had the honour to address to Mr. Lowell on the 27th October, 1880.

In that note I used the following language:

Without entering into any lengthy discussion on this point, I feel bound to state that, in the opinion of Her Majesty's Government, the clause in the Treaty of Washington which provides that the citizens of the United States shall be entitled, "in common with British subjects," to fish in Newfoundland waters within the limits of British sovereignty means that the American and the British fishermen shall fish in these water upon terms of equality, and not that there shall be an exemption of American fishermen from any reasonable regulations to which British fishermen are subject.

294

Her Majesty's Government entirely concur in Mr. Marcy's Circular of the 28th March, 1856. The principle therein laid down appears to them perfectly sound, and as applicable to the fishery provisions of the Treaty of Washington as to those of the Treaty which Mr. Marcy had in view; they cannot, therefore, admit the accuracy of the opinion expressed in Mr. Evarts' letter to Mr. Welsh of the 28th September, 1878, "that the fishery rights of the United States conceded by the Treaty of Washington are to be exercised wholly free from the restraints and regulations of the Statutes of Newfoundland," if by that opinion anything inconsistent with Mr. Marcy's principle is really intended. Her Majesty's Government, however, fully admit that, if any such local Statutes could be shown to be inconsistent with the express stipulations, or even with the spirit of the Treaty, they would not be within the category of those reasonable regulations by which American (in common with British) fishermen ought to be bound; and they observe, on the other hand, with much satisfaction, that Mr. Evarts, at the close of his letter to Mr. Welsh of the 1st August, 1879, after expressing regret at "the conflict of interests which the exercise of the Treaty privileges enjoyed by the United States appears to have developed," expressed himself as follows:

"There is no intention on the part of this [the United States'] Government that these privileges should be abused, and no desire that their full and free enjoyment should harm the colonial fishermen.

"While the differing interests and methods of the shore fishery and the vessel fishery make it impossible that the regulation of the one should be entirely given to the other, yet if the mutual obligations of the Treaty of 1871 are to be maintained, the United States' Government would gladly co-operate with the Government of Her Britannic Majesty in any effort to make those regulations a matter of reciprocal convenience and right, a means of preserving the fisheries at their highest point of production, and of conciliating a community of interest by a just proportion of advantages and profits."

I expressed the satisfaction with which Her Majesty's Government not only recognized in Mr. Evarts' proposal above referred to an indication that their desire to arrive at a friendly and speedy settlement of the controversy was fully reciprocated by the Government of the United States, but also discerned in it the basis of a practical solution of the difficulty; and I assured Mr. Lowell of the readiness of Her Majesty's Government to confer with the Government of the United States respecting the establishment of Regulations under which the subjects of both parties to the Treaty of Washington should have the full and equal enjoyment of any fishery which, under the Treaty, is to be used in common.

The Memorandum of the United States' Government, after reviewing certain provisions of the Newfoundland Acts, complains of partiality in their enforcement by the magistrates and other officials of the Colony (a complaint which Her Majesty's Government can not admit to be well-founded, and in support of which no facts are

adduced), and concludes with a suggestion that if the Legislature of Newfoundland can not dispense with those provisions altogether, it should pass an Act expressly declaring that they shall have no application to the citizens of the United States.

I can only renew the expression of the regret and disappointment which is felt by Her Majesty's Government at the apparent disinclination on the part of the Government of the United States to carry out Mr. Evarts' proposal; and I have to instruct you to read this des patch to Mr. Frelinghuysen, and to leave a copy of it with him should he desire it, conveying to him at the same time the hope of Her Majesty's Government that, upon further consideration, the Government of the United States will agree to let the disputed question of Treaty rights remain in abeyance, and will unite with Her Majesty's Government in carrying out the revision of the Fishery Regulations in the spirit and with the object indicated by Mr. Evarts.

I am, &c.

No. 178.-1883, March 3: Termination of the Treaty of Washington.

JOINT RESOLUTION providing for the termination of Articles numbered eighteen to twenty-five, inclusive, and Article numbered thirty of the Treaty between the United States of America and Her Britannic Majesty, concluded at Wash ington, May eighth, eighteen hundred and seventy-one.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled: That in the judgment of Congress the provi sions of Articles numbered eighteen to twenty-five, inclusive, and of Article thirty of the Treaty between the United States and Her Britannic Majesty, for an amicable settlement of all causes of difference between the two countries, concluded at Washington on the eighth day of May, anno Domini eighteen hundred and seventy-one, ought to be terminated at the earliest possible time. and be no longer in force: and to this end the President be, and he hereby is directed to give notice to the Government of Her Britannic Majesty that the provisions of each and every of the articles aforesaid, will terminate and be of no force on the expiration of two years next after the time of giving such notice. Sec. 2. That the President be, and he hereby is, directed to give and communicate to the Government of Her Britannic Majesty such notice of such termination on the first day of July, anno Domini eighteen hundred and eighty-three or as soon thereafter as may be. 295

Sec. 3. That on and after the expiration of the two years' time required by said Treaty, each and every of said articles shall be deemed and held to have expired and be of no force and effect, and that every Department of the Government of the United States shall execute the laws of the United States (in the premises) in the same manner and to the same effect as if said articles had never been in force; and the Act of Congress approved 1st March, anno Domini eighteen hundred and seventy three, intituled: An Act to carry into effect the provisions of the treaty between the United States and Great Britain, signed in the City of Washington the eighth day of May, eighteen hundred and seventy-one, relating to the fisheries," so far as it relates to the articles of said treaty so to be terminated, shall be and stand repealed and be of no force on and after the time of the expiration of the said two years.

Approved 3rd March, 1883.