1008 CORRESPONDENCE, ETC. 



Without dwelling on minor points, on which we would certainly 

 make every effort to meet your views, I may briefly say that in our 

 opinion, sustained by the observations of those best qualified to judge, 

 the surrender of the right to hire local fishermen, who eagerly seek to 

 have us employ them, and the surrender at the same time of the use 

 of purse seines and of fishing on Sunday would, under existing circum- 

 stances, render the Treaty stipulation worthless to us. 



My Government holds this opinion so strongly that the task of 

 reconciling it with the positions maintained in your letter of June 20th 

 seems hopeless. 



In this conviction my Government authorises me, and I now have 

 the honour, to propose a reference of the pending questions under the 

 Treaty of 1818 to arbitration before the Hague Tribunal. 



We have the greater reason to hope that this solution may be agree- 

 able to you since your Ambassador to the United States recently sug- 

 gested some form of arbitration, with a temporary modus vivendi 

 pending the decision, as the best way of reaching a settlement. We 

 hope also that the reference of such a long-standing question between 

 two such nations at such a time to the Hague Tribunal might prove 

 an important step in promoting the spread of this peaceful and 

 friendly method or adjusting differences among all civilised countries 

 of the world. 



If this proposition should be agreeable to you we should trust that 

 the conclusion might be reached in so short a period that the con- 

 tinuation in force meantime of the modus vivendi I had the honour of 

 arranging with you last year could work no real hardship to any 

 British or Colonial interests. In its practical operation last year it 

 resulted in voluntary arrangements by which our fishermen gave up 

 purse seines. They did, however, employ Newfoundland fishermen. 

 We do not think the continued employment of men so eager for the 

 work, and the consequent influx of their wages into the Colony could, 

 for the short time involved, work the Colony any harm. But if for 

 any reason you should find it unsuitable or inconvenient to renew for 

 so short a time this feature of the modus vivendi, we should be com- 

 pelled to insist on the use of purse seines for the reason already stated. 

 To give that up too we should consider under existing circumstances 

 as giving up altogether our Treaty rights of fishing on that coast. 



Hoping that in these proposals we have made an offer not only indi- 

 cating our earnest desire to reach a mutually satisfactory arrange- 

 ment, but an honourable and agreeable means of doing so, 

 I have, &c., 



WHITELAW REID. 



Sir EDWARD GRAY, Bart., &c., &c., &c. 



Lord Elgin to Governor MacGregot 



DOWNING STREET, July 19, 1907. 



SIR: I have the honour to transmit to you, to be laid before your 

 Ministers, copy of a note addressed by the Secretary of State for 

 Foreign Affairs to the United States Ambassador at this Court pro- 

 posing a modus vivendi regarding the American fishery rights in New- 

 foundland waters for the season of 1907. 



