PERIOD FROM 1905 TO 1909. 1007 



naval officers who have been employed on the Treaty Coast as to the 

 destructive results of their use; and they would, therefore, point out 

 that there is complete justification for the Colonial regulation. 



I would, moreover, remind Your Excellency that the regulation is 

 is force in all the waters of the Colony of Newfoundland and of the 

 Dominion of Canada, and applies equally to all fishermen whether 

 they be Newfoundlanders or not. His Majesty's Government, there- 

 fore, feel that they cannot interfere with the enforcement of the 

 regulation which prohibits purse seines in the waters of Newfound- 

 land. They would also point out that fishing on Sundays is always 

 liable to lead to regrettable breaches of the peace, and they would 

 propose that the American fishermen should agree to abstain from 

 this practice. 



Finally, His Majesty's Government feel that the payment of light 

 dues by an American vessel entering a port of the Colony clearly 

 does not involve an unreasonable interference with the exercise of 

 the treaty rights of the American fishermen on board. These dues 

 are payable by all vessels of whatever description and nationality, 

 other than coasting and fishing vessels owned and registered in the 

 Colony. As, however, vessels of the latter class are under certain 

 conditions exempt either wholly or in part from payment, His 

 Majesty's Government consider that i't would be unfair to introduce 

 any discrimination against American vessels in this respect, and it is 

 proposed that the demand for light dues should be waived under the 

 same conditions as in the case of the Newfoundland vessels. 



I venture to express the hope that the temporary arrangement out- 

 lined above will be agreed to by the United States Government. 

 I have, &c., 



E. GREY. 

 His Excellency the Honourable WHITELAW REID, &c., &c., &c. 



Mr. Reid to Sir Edward Grey. 



AMERICAN EMBASSY, LONDON, July 12, 1907. 



SIR: Referring to your letter of June 20th, in relation to the New- 

 foundland Fisheries, I beg to say that while its propositions seemed 

 so much in conflict with our views on the subject that my previous 

 instructions would have enabled me to make an immediate reply, I 

 hastened to lay them before my Government. 



Before communicating the result I desire to acknowledge and recip- 

 rocate to the full the kindly expressions you have been good enough 

 to use as to the moderation and fairness with which Mr. Root has 

 stated the American side of the case. We have had the same appre- 

 ciation of your conduct of the discussion, and we share your wish to 

 bring the long-standing controversy on the subject to a satisfactory 

 conclusion without having added anything tending in the slightest 

 degree to embitter it. 



But with the utmost desire to find in your last letter some practical 

 basis for an agreement, we are unable to perceive it. Acquiescence 

 in your present proposals would seem to us equivalent to yielding all 

 the vital questions in dispute, and abandoning our fishing rights on 

 the coast of Newfoundland under the Treaty of 1818. 



