AWARD OF THE FISHERY COMMISSION. 1633 



to give in return for the fishing privileges, and which Great Britain, having regard 

 both to the imperial and colonial interest, could properly accept. Her Majesty's 

 Government are well aware that the arrangement which would have been most agreeable 

 to Canada was the conclusion of a treaty similar to the Reciprocity Treaty of 1854, and 

 a proposal to this effect was pressed upon the United States Commissioners, as you will 

 find in the 36th protocol of the conferences. This proposal was, however, declined, 

 the United States Commissioners stating that they could hold out no hope that the 

 Congress of the United States would give its consent to such a tariff amendment as 

 was proposed, or to any extended plan of reciprocal free admission of the products of 

 the two countries. The United States Commissioners did, indeed, propose that coal, 

 salt, and fish should be reciprocally admitted free, and lumber after the 1st of July, 

 1874 ; but it is evident that, looked at as a tariff arrangement, this was a most inade- 

 quate offer, as will be seen at once when it is compared with the long list of articles 

 admitted free under the Reciprocity Treaty. Moreover, it is obvious, from the frank 

 avowal of the United States Commissioners, that they only made this offer because one 

 branch of Congress bad recently more than once expressed itself in favor of the abo- 

 lition of duties on coal and salt, and because Congress had partially removed the duty 

 from lumber, and the tendency of legislation in the United States was toward the re- 

 daction of taxation and of duties", so that to have ceded the fishery rights in return 

 for these concessions, would have been to exchange them for commercial arrangements 

 which, there is every reason to believe, may before long be made without any such 

 cession, to the mutual advantage of both the Dominion and the United States; and 

 Her Majesty's Government are bound to add that while, in deference to obtain a re- 

 newal in principle of the Reciprocity Treaty, they are convinced the establishment of 

 free trade between the Dominion and the United States is not likely to be promoted 

 by making admission to the fisheries dependent upon the conclusion of such a treaty ; 

 And that the repeal by Congress of duties upon Canadian produce, on the ground that 

 a protective tariff is injurious to the countries which imposes it, would place the com- 

 mercial relations of the two countries on a far more secure and lasting basis than the 

 stipulations of a convention framed upon a system of reciprocity. Looking, therefore, 

 to all the circumstances, Her Majesty's Government found it their duty to deal sepa- 

 rately with the fisheries, and to endeavor to find some other equivalent ; and the recip- 

 rocal concession of free fishery, with free import of fi-m and fish-oil, together with the 

 payment of such a sum of money as may fairly represent the excess of value of the 

 Colonial over the American concession, seems to them to be an equitable solution of 

 the difficulty. 



It is perfectly true that the right of fishing on the United States coasts, conceded 

 nnder Article XIX, is far less valuable than the right of fishing in colonial waters, con- 

 ceded under Article XVIII to the United States ; but, on the other baud, it cannot be 

 denied that it is most important to the colonial fishermen to obtain free access to the 

 American market for their fish and for fish-oil ; and the balance of advantage on the side 

 of the United States will be duly redressed by the Arbitrators under Article XXII. 

 In some respects a d rect money-payment is perhaps a more distinct recognition of the 

 rights of the colonies than a tarift' concession, and there does not seem to be any differ- 

 ence in principle between the admission of American fishermen for a term of years, in 

 cvnsideration of the payment of a sum of money in gross, and their admission under 

 the system of licenses, calculated at so many dollars per ton, which was adopted by 

 the colonial government for several years after the termination of the Reciprocity 

 Treaty. In the latter case, it must be observed, the use of the fisheries was granted 

 without any tariff concessions whatever on the part of the United States, even as to the 

 importation of fish. 



Canada could not reasonably expect that this country should, for an indefinite period, 

 incur the constant risk of serious misunderstanding with the United States, imperiling, 

 perhaps, the peace of the whole Empire, in order to endeavor to force the American 

 Government to change its commercial policy ; and Her Majesty's Government are con- 

 fident that when the treaty is considered as a whole the Canadian people will see that 

 their interests have been carefully borne in mind, and that the advantages which they 

 will derive from its provisions are commensurate with the concessions which they are 

 called upon to make. There cannot be a question as to the great importance to Canada 

 of the right to convey goods in bond through the United States, which has beeu secured 

 to her by Article XXIX; and the free navigation of Lake Michigan, under Article 

 XXVIII, and the power of transshipping goods, under Article XXX, are valuable privi- 

 leges which must not be overlooked in forming an estimate of the advantages which 

 Canada will obtain. Her Majesty's Government have no doubt that the Canadian 

 Government will readily secure to the citizens of the United States, in accordance with 

 Article XXVII, the use of the Canadian canals, as by the liberal policy of the Domini >n 

 these canals are already opened to them on equal terms with British subjects ; and 

 they would urge upon the Dominion Parliament and the legislature of New Brunswick 

 that it will be most advisable to make arrangement as to duty on lumber float**! down 

 the St. John River, upon which the execution of Article XXX, as to the transshipment 

 of goods, is made contingent. 

 103 F 



