DIPLOMATIC CORRESPONDENCE AND FOREIGN RELATIONS. 



259 



The American commissioners declined to 

 assent to a renewal of the former reciprocity 

 treaty. 



The British commissioners then suggested 

 that, if any considerable modification were 

 made in the tariff arrangements of that treaty, 

 the coasting-trade of the United States and of 

 her Britannic Majesty's possessions in North 

 America should be reciprocally thrown open, 

 and that the navigation of the river St. Law- 

 rence and of the Canadian canals should be 

 also thrown open to the citizens of the "United 

 States on terms of equality with British sub- 

 jects. 



The American commissioners declined this 

 proposal, and objected to a negotiation on the 

 basis of the reciprocity treaty. They said that 

 that treaty had proved unsatisfactory to the 

 people of the United States, and consequently 

 had been terminated by notice from the Gov- 

 ernment of the United States, in pursuance of 

 its provisions. Its renewal was not in their 

 interest, and would not be in accordance with 

 the sentiments of their people. They further 

 said that they were not at liberty to treat of 

 the opening of the coasting-trade of the United 

 States to the subjects of her Majesty residing 

 in her possessions in North America. It was 

 agreed that the questions relating to the navi- 

 gation of the river St. Lawrence, and of the 

 Canadian canals, and to other commercial ques- 

 tions affecting Canada, should be treated by 

 themselves. 



The subject of the fisheries was further dis- 

 cussed at the conferences on the 7th, 20th, 

 22d, and 25th of March. The American com- 

 missioners stated that, if the value of the in- 

 shore fisheries could be ascertained, the United 

 States might prefer to purchase, for a sum of 

 money, the right to enjoy, in perpetuity, the 

 use of these inshore fisheries in common with 

 British fishermen, and mentioned one million 

 dollars as the sum they were prepared to offer. 

 The British commissioners replied that this 

 offer was, they thought, wholly inadequate, 

 and that no arrangement would be acceptable 

 of which the admission into the United States, 

 free of duty, of fish, the produce of the Brit- 

 ish fisheries, did not form a part, adding that 

 any arrangement for the acquisition by pur- 

 chase of the inshore fisheries, in perpetuity, 

 was open to grave objection. 



The American commissioners inquired if it 

 would be necessary to refer any arrangement 

 for purchase to the colonial or provincial Par- 

 liaments. 



The British commissioners explained that 

 the fisheries within the limits of maritime ju- 

 risdiction were the property of the several 

 British colonies, and that it would be neces- 

 sary to refer any arrangement, which might 

 affect colonial property or rights, to the colo- 

 nial or provincial Parliaments ; and that legis- 

 lation would also be required on the part of 

 the Imperial Parliament. During these dis- 

 cussions the British commissioners contended 



that these inshore fisheries were of great value, 

 and that the most satisfactory arrangement 

 for their use would be a reciprocal tariff ar- 

 rangement, and reciprocity in the coasting- 

 trade ; and the American commissioners re- 

 plied that their value was overestimated ; that 

 the United States desired to secure their en- 

 joyment, not for their commercial or intrinsic 

 value, but for the purpose of removing a 

 source of irritation ; and that they could hold 

 out no hope that the Congress of the United 

 States would give its assent to such a tariff ar- 

 rangement as was proposed, or to any extend- 

 ed plan of reciprocal free admission of the 

 products of the two countries ; but that, inas- 

 much as one branch of Congress had recently, 

 more than once, expressed itself in favor of 

 the abolition of duties on coal and salt, they 

 would propose that coal, salt, and fish, be re- 

 ciprocally admitted free ; and that, inasmuch 

 as Congress had removed the duty from a por- 

 tion of the lumber heretofore subject to duty, 

 and as the tendency of legislation in the 

 United States was toward the reduction of 

 taxation and of duties in proportion to the re- 

 duction of the public debt and expenses, they 

 would further propose that lumber be admit- 

 ted free from duty from and after the first of 

 July, 1874, subject to the approval of Congress, 

 which was necessary on all questions affecting 

 import duties. 



The British commissioners, at the confer- 

 ence on the 17th of April, stated that they had 

 referred this offer to their Government, and 

 were instructed to inform the American com- 

 missioners that it was regarded as inadequate, 

 and that her Majesty's Government consid- 

 ered that free lumber should be granted at 

 once, and that the proposed tariff concessions 

 should be supplemented by a money payment. 



The American commissioners then stated 

 that they withdrew the proposal which they 

 had previously made of the reciprocal free ad- 

 mission of coal, salt, and fish, and of lumber 

 after July 1, 1874; that that proposal had been 

 made entirely in the interest of a peaceful set- 

 tlement, and for the purpose of removing a 

 source of irritation and of anxiety; that its 

 value had been beyond the commercial or in- 

 trinsic value of the rights to have been ac- 

 quired in return ; and that they could not 

 consent to an arrangement on the basis now 

 proposed by the British commissioners ; and 

 they renewed their proposal to pay a money 

 equivalent for the use of the inshore fisheries. 

 They further proposed that, in case the two 

 Governments should not be able to agree upon 

 the sum to be paid as such an equivalent, the 

 matter should be referred to an impartial com- 

 mission for determination. 



The British commissioners replied that this 

 proposal was one on which they had no in- 

 structions, and that it would not be possible 

 for them to come to any arrangement except 

 one for a term of years and involving the con- 

 cession of free fish and fish-oil by the Amen* 



