PERIOD FROM 1905 TO 1909. 995 



and while I regret that the proposals made to the United States' 

 Government do not commend themselves to your Ministers, I cannot 

 but feel that in the circumstances no blame can fairly be imputed 

 to His Majesty's Government. 



I have, &c. (Signed) ELGIN. 



Governor MacGregor to Lord Elgin. 



[Telegraphic.] 



[Received September 21, 1906.] 



My responsible advisers request me to transmit following message : 

 " With reference to your telegram of the 19th instant. For the 

 reasons that have been fully set forth in previous Minutes, Ministers 

 regret they are unable to become consenting parties to modus vivendi 

 with the United States' Government. They entirely dissent from the 

 views expressed by United States' Government in respect to usage of 

 purse seines and their effect upon the herring fishery, but as stated in 

 despatch from his Excellency the Governor to the Secretary of State 

 for Colonies of date 7th instant, in which Ministers fully concurred, 

 if His Majesty's Government consent to their use by American fisher- 

 men, then, while fully recognizing the evils likely to result, this 

 Government will be obliged, in justice to the people of this Colony, to 

 pass a Regulation removing the prohibition or the usage of purse 

 seines so that competiton with Americans may be possible for local 

 fishermen." 



Sir Edward Grey to Sir M. Durand. 



FOREIGN OFFICE, September 26, 1906. 



SIR: Your Excellency is already aware that I had communicated 

 to the American Ambassador a Memorandum containing the views of 

 His Majesty's Government on the proposed modus vivendi on the sub- 

 ject of the Newfoundland fisheries. 



On receipt of this communication, of which a copy was inclosed in 

 my despatch of the 14th September, Mr. Whitelaw Reid called yester- 

 day and said he had every reason to hope that the terms therein pro- 

 posed would be accepted by his Government. He was not, however, 

 quite sure as to what was meant by interference of purse seines with 

 other modes of fishing. 



As to that part of the Memorandum dealing with the enlistment of 

 Newfoundlanders outside the 3-mile limit, he expressed his personal 

 conviction that his Government would do all that lay in their power 

 to prevent the exasperation and irritation which is naturally caused by 

 such proceedings just outside the limit; but he wished to throw out 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 



