996 CORRESPONDENCE, ETC. 



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. 



Lord Elgin to Governor MacGregor. 



[Telegraphic.] 



DOWNING STREET, September 29, 1906. 



His Majesty's Government were much disappointed by your tele- 

 gram of 21st September, but felt that, under the circumstances, there 

 was no alternative to course indicated in my telegram of 19th Septem- 

 ber. United States' Ambassador was informed accordingly on 25th 

 September that His Majesty's Government consent to use of purse 

 semes on the condition stated, and at same time His Majesty's 

 Government expressed hope that recruiting just outside territorial 

 waters will not be resorted to this year. Copy of communication 

 will be sent by next mail. 



Governor MacGregor to Lord Elgin. 



[Telegraphic.] 



[Received, September 29, 1906.] 



My responsible advisers request me to transmit f ollwing message : 

 "Minister of Finance has received information to-day by telegraph 

 from the Sub-Collector of Customs at Bonne Bay, stating that an 

 American schooner has arrived equipped with purse seines and declines 

 to pay light dues, and desiring to be advised whether the laws are to 

 be enforced. Ministers are placed in a most embarrassing position, 

 not knowing whether agreement has been arrived at between His 

 Majesty's Government and that of the United States by which 

 Americans may use such seines and are exempt from payment of 

 light dues. They desire to be advised promptly as to the exact posi- 

 tion of affairs, and whether they are free to enforce the customs and 

 fisheries laws of this Colony against American fishermen." 



Lord Elgin to Governor MacGregor. 



[Telegraphic.] 



DOWNING STREET, October 1, 1906. 



Will answer your telegram of 29th September as soon as possible. 

 In meantime, please inform your Ministers that United States 

 Ambassador has suggested privately, but not as on behalf of his 

 Government, that in order to minimize inconveniences and discontent 

 arising from use of purse seines by United States' fishermen and the 

 shipping of Newfoundland fishermen outside 3-mile limit, following 

 arrangement might be adopted viz., Newfoundland Government to 



