DESPATCHES, REPORTS, CORRESPONDENCE, ETC. 841 



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. 



(Signed) EDWARD GREY. 



No. 254. 1906) October 1: Letter from Sir Edward Grey to Sir M* 



Durand. 



FOREIGN OFFICE, October 7, 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 con- 

 sulted 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 His 

 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 

 nfter the 1st November, have been considered by the Newfound- 

 land 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 



