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ordingly communicated, for the consideration of Her 
Majesty’s Government, the sketch of the basis on which such 
an arrangement might be made. I telegraphed to you the 
‘substance of the sketch on the 28th January. The proposal 
“ was to the following effect, viz.:—That it should be agreed as 
Th modus vivendi for next season only that there should be no 
‘alteration in the position of British lobster factories or grounds 
a Ss existing on the 1st of July last year, the French Govern- 
_“ment undertaking that no new lobster fishing concessions 
‘should be granted this year on fishing grounds occupied by 
‘British subjects on or before Ist July last. In case of any 
I espotition in the same locality the naval commanders on the 
_ * station should jointly arrange provisional delimitation of fishing 
[cht grounds and all questions of right were reserved by both 
ies. You telegraphed to me in reply on the 30th January, 
inquiring whether you were correct in assuming that by the 
| Re cosed agreement British subjects were not to establish any 
‘new factories this year, but that the French might do so pro- 
_ “vided that the ground they selected was not occupied by the 
_ “ British prior to the lst of July, 1889. 
_ TJ informed you in reply, by my telegram of the 8th of 
ie “ February, that the modus vivendi would recognise factories of 
“both nations for this season only as existing on the lst July, 
* 1889, but that transfers would be permitted to other localities 
3 if approved by the naval officers of both nations; that no new 
i ‘eoncession of lobster fishery should be accorded by either 
_ “Government this year; and I informed you that the proposed 
3 agreement be strictly provisional for only this season. 
__ You replied, by your telegram of the 13th February, to the 
* effect that your Ministers contested strongly the rights of the 
« French to the lobster fishery, but that they were anxious to 
@ meet the wishes of the Imperial Government for a modus 
« vivendi for this season only. You informed me that they 
wished the date to be extended to the Ist January, 1890, as 
_ “otherwise hardships would be inflicted, as considerable money 
_ “had been invested in new factories. Your subsequent tele- 
“grams of the 13th and 15th February supplied further infor- 
he “ mation in regard to the number of British factories believed to 
«“ be under construction or to be contemplated. 
. : “With a view to meet the difficulty thus pointed out, an 
