PERIOD FROM 1905 TO 1909. 989 



dues will be waived; and, on the other, United States' vessels will 

 report at custom-house on entry and on clearance, and United States' 

 fishermen will comply with colonial fishery regulations. 



As regards call at custom-house, your Ministers are of course aware 

 that the negotiations which led up to the Convention of 1818 virtually 

 bind His Majesty not to exact customs duties in respect of goods on 

 board United States' vessels necessary for prosecution of fishery, 

 and support of fishermen during fishery, and during voyages to 

 and from fishing grounds. 



His Majesty's Government hope that United States' Government 

 will accept proposal outlined above, but wish to warn your Ministers 

 that some further concessions may be necessary if a modus vivendi 

 is to be arranged. In that event they trust that your Ministers will 

 assist the efforts of His Majesty's Government to reach some settle- 

 ment which will obviate the grave difficulties and dangers to be 

 apprehended in the course of the ensuing fishery. 



Lord Elgin to Governor MacGregor. 



[Telegraphic.] 



DOWNING STREET, September 8, 1906. 



Referring to my telegram of even date, please state whether your 

 Ministers, in the event of the negotiations for a modus vivendi break- 

 ing down, are prepared to indemnify His Majesty's Government 

 against any claims for compensation which may ~be preferred by 

 United States' Government, and which it may not be possible con- 

 sistently with a fair interpretation of Treaty rights to refuse; also 

 whether, in the event of a reference to arbitration becoming in the 

 opinion of His Majesty's Government necessary or desirable, your 

 Ministers will agree to such reference, and undertake to meet expenses 

 of arbitration and pay the award, if any. 



Sir Edward Grey to Mr. Reid. 



FOREIGN OFFICE, September S, 1906. 



YOUR EXCELLENCY : In my note of the 14th August I stated that His 

 Majesty's Government hoped shortly to be able to submit to the 

 Government of the United States proposals for a provisional Arrange- 

 ment, which would secure the peaceable and orderly conduct of the 

 forthcoming herring fishery on the coast of Newfoundland . I have 

 now the honour, on the understanding mentioned in my note, viz., 

 that the Arrangement would be in the nature of a -modus vivendi to be 

 applicable onh r to the ensuing season, and not hi any way to affect the 

 rights and claims of either party to the Convention of 1818, to submit 

 the following proposals, viz.: 



(1.) His Majesty's Government will not bring into force "The 

 Newfoundland Foreign Fishing Vessels Act, 1906/' which imposes on 

 United States' fishing- vessels certain restrictions in addition to those 

 imposed by the Act of 1905. 



