BRITISH, COLONIAL AND OTHER CORRESPONDENCE, ETC. 315 



faint expectation that the Arangement will be confirmed in entirety 

 this Session. 



11. If complete confirmation should prove to be out of the question, 

 I propose to use every effort to obtain the approval of all the other 

 Articles of the Arrangement, the Bait Clause being reserved for 

 future consideration ; and at the worst I can scarcely doubt of secur- 

 ing postponement of the whole question, which, however undesirable, 

 would be better than absolute rejection of the Arrangement. 



12. If the Government of France would consent to accept the un- 

 dertaking of the British Government that sanction would never be 

 given to any local bait sale prohibition measure, it appears to me, 

 and in this Mr. Pennell agrees, that the Bait Clause might with 

 advantage be omitted. 



In that case I should have good hope of the confirmation of the Ar- 

 rangement by the Legislature, and I should have no doubt on the 

 point if, at the time the decision of the Members was asked, I was able 

 to announce that Her Majesty's Government had obtained, or was 

 certainly about to obtain, from the Spanish Government, the conces- 

 sion of most-favoured-nation treatment to British imports, thus re- 

 lieving the products of this Colony from the very serious disadvan- 

 tage under which they are now placed as compared to the French. 



May 1, 1886. 



13. Since the above was written Mr. Pennell has had two inter- 

 views with the Committee, and though he, I understand, made able 

 use of all the arguments which his unsurpassed knowledge of the sub- 

 ject places at his disposal, they were, I fear, unavailing, as the minds 

 of Members are evidently quite fixed in opposition to the Arrange- 

 ment. 



14. While I deeply regret this result, I cannot say, my Lord, now 

 that I know all the circumstances, that I am altogether surprised 

 at it. 



15. The colonists believe that they are being; ruined by the French, 

 and they regard a measure of bait sale prohibition as the only means 

 of escape. They recognize the probability of its disallowance bv Her 

 Majesty's Government, but say in fact that while their destruction is 

 perhaps inevitable in any case, they must decline to commit suicide. 

 If the market price of the colonial products were to rise, or if some 

 substantial modification were to take place in respect of the advan- 

 tages now possessed by the French, this rigid attitude would prob- 

 ably be modified ; but in the absence of any such change in the situa- 

 tion, I fear that the attempt would be hopeless to obtain the consent 

 of the Colony to any arrangement such as that proposed. 



I have, &c. 



(Signed) G. WILLIAM DES VCEUX. 



Colonial Office to Foreign Office (Received July 7.) 



DOWNING STREET, July 6, 1886. 



SIR : With reference to my letter of this day's date on matters re- 

 lating to the Newfoundland Fishery question, I am directed by Earl 

 Granville to submit to you, to be laid before the Earl of Rosebery, a 



