PERIOD FROM 1905 TO 1909. 1003 



gram of 8th August, which stated His Majesty's Government were 

 informing United States Government that His Majesty's Govern- 

 ment were prepared to negotiate for provisional arrangement, and 

 would shortly submit proposals, from which Responsible Ministers 

 infer that engagement to enter into modus vivendi was actually made 

 without reference to opinion of this Government. Responsible 

 Ministers saw they could not prevent the arrangement, but set forth 

 their views and pointed out that modus vivendi not necessary, and 

 guaranteed to maintain peace if His Majesty's Government did not 

 interfere with enforcement of statute law against local fishermen. 

 Under the circumstances Responsible Ministers find it impossible to 

 admit any responsibility for modus vivendi. 



(2) Policy of this Government same for twenty years; to enforce 

 Bait Act against foreigners using bounties or prohibitive duties. In 

 the years 1890 and 1892 American Government undertook to cancel 

 duty on Newfoundland fish, and Newfoundland for fifteen years 

 gratuitously allowed Americans privileges to be conveyed [? continued] 

 under conventions mentioned. United States Government accepted 

 concessions of Newfoundland in the 1890 and 1892' Conventions as 

 quid pro quo for remission of duties, which shows United States Govern- 

 ment did not think that they had right to purchase bait fishes or 

 employ local fishermen under Treaty of 1818. 



(3) Responsible Ministers hold opinion that it is their duty to this 

 people to test validity of an arrangement apparently intended to 

 render nugatory law of Colony, and set aside its constitutional rights. 

 In reply to your telegram 8th August, Responsible Ministers 10th 

 August, referred His Majesty's Government to despatch 26th March, 

 1857, which declares consent of Newfoundland essential preliminary 

 to any modification of territorial rights or maritime rights, and five 

 days later Responsible Ministers dealt fully with situation and sug- 

 gested alternative to proposed modus vivendi. 



(4) Object of Responsible Ministers in instituting legal proceedings 

 under Bait Act as custodians of rights and privileges of public is to test 

 validity of arrangement which, in their opinion, is infringement of 

 constitutional rights of this Colony. 



Responsible Ministers are very grateful for assurance that His 

 Majesty's Government will defend claims of Newfoundland under 

 Treaty of 1818, and they assure His Majesty's Government that no 

 unlawful act on their part shall arise to increase difficulties of His 

 Majesty's Government in carrying out this intention. (Summary 

 Minute of Council ends.) 



Full text of Minute of Council been posted to-day's post by "Glas- 

 gow." MACGREGOR. 



Sir Edward Grey to Mr. Reid. 



FOREIGN OFFICE, June 20, 1907. 



SIR: On the 20th of July last, Your Excellency communicated to 

 me a letter addressed to you by Mr. Root in which he gave reasons 

 which prevented his agreement with the views of His Majesty's Gov- 

 ernment as to the rights of American fishing vessels in the waters of 

 Newfoundland under the Convention of 1818. 



