380 APPENDIX TO BRITISH CASE. 



ward Island and the exceptional position of that colony as regards the 

 other confederated colonies, must necessarily occasion new difficulties 

 in carrying out the desired policy; and that any system not under 

 uniform control would operate to the relative disadvantage of the 

 other provinces forming the Confederation. This was felt to be 

 the case not merely in a pecuniary but likewise in a political sense. 

 The proposal, however, that interchangeable licences should be issued 

 by the respective Governments was acquiesced in by Canada, as well 

 in deference to the proposed arrangement of a complicated and urgent 

 dispute, as in view of the expressly temporary nature of the system. 

 But this system has now extended over three years, instead of being 

 confined to the current season of 1866, as it was then stipulated should 

 be the limits of its duration. And owing to the practice of mutually 

 recognising licences issued, the chief political burden of such renewed 

 policy, and the whole provincial cost of applying and enforcing the 

 system, have devolved on the united provinces, while a very large 

 share of the licence fees collected has accrued to Prince Edward 

 Island. These results appear in some degree an aggravation of injury 

 borne by the Dominion from the continued admission of foreign fish- 

 ermen and vessels into Colonial waters on merely nominal terms, 

 whilst the produce of Canadian fisheries still competes in the United 

 States markets on most disadvantageous conditions with fish caught 

 by Americans on the same fishing grounds. 



The undersigned having already brought this particular subject 

 under notice, begs reference to the Minute of Council adopted thereon, 

 the 22nd of May last. 



Another anomaly arising out of the licensing system has developed 

 itself in the course of the fishing season of 1868, and forms the sub- 

 ject of a report on the loth of September last, to which the Minister 

 has now the honour to revert. 



It is therein stated that a very considerable trade, which formerly 

 existed among the crews of American fishing vessels and the mer- 

 chants at several of the ports of Nova Scotia, to which they resorted 

 in great numbers has latterly become diverted to Prince Edward 

 Island; and that such diversion occurs through facilities afforded by 

 the Island authorities to United States citizens, to fish and land and 

 trade there without first obtaining fishing licences, such as are re- 

 quired at Nova Scotian ports, in conformity with the laws and the 

 system adopted under the existing Treaty with Great Britain. 

 Although these vessels are prohibited by the Imperial and Pro- 

 vincial Statutes, and by the Convention of 1818, from entering Brit- 

 ish harbours for any other purposes than shelter, or to repair dam- 

 ages and to purchase wood and water, the masters are there allowed 

 to procure supplies, to store fish, and bait, buy salt, barrels and other 

 materials necessary for fishing operations, without any interference 

 on the part of the Island officials ; all of which is in violation of the 

 Customs laws, and at variance with the letter and spirit of the Treaty 

 by which they are equally bound with the officers and inhabitants 

 of the other provinces. In addition to which evasive privileges 

 227 United States vessels (unlicensed) are also permitted to trans- 

 fer their cargoes at Prince Edward Island to foreign steamers, 

 and to include quantities of fish captured by and purchased from the 

 Island fishermen, thus exempting them from duties levied on fish 



