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III. — The advantage of a Free Market for Fish and F^sh Oil in Newfoundland. 



It might at first sight appear, from tlie return of lish exports from the United 

 States to NcwfouiKJlanci, that this privilege was of little or no value ; indeed, the 

 duties when collected on this article were of insignificant amount. There is, 

 however, an important benefit conferred by it on United States' fishermen engaged 

 in the Bank Fisheries. In fishing on the banks and deep-sea, heretofore large 

 quantities of small iish were thrown overboard as comparatively useless, when large 

 fish, suitable for the United States' market, could be obtained in abundance ; this 

 practice was highly prejudicial to the fishing grounds. 



Under the Washington Treaty, two objects are attained ; first, a market for the 

 small tisii at renuinerative prices in Newfoundland ; and secondly, the preservation 

 of the fishing grounds. 



It is evident that, although at the present time United States' fishermen have 

 been in enjoyment of the privileges conferred by the Treaty of Washington only lor 

 a short |)criod, and i y not have availed themselves to the full extent of this privi- 

 lege, the actual pro^ d derived thereby, and which, in certain instances, will be sub- 

 stantiated before the Commissioners by the evidence of competent witnesses, will be 

 more fully appreciated during the remaining years of the existence of the right, and 

 this item must form a part of the claim of Newfoundland against the United 

 States. 



Chapter III. — Advantages derived by British Subjects. 



Having now staled the advantages derived by United States' fishermen under 

 the operation of the Treaty of Washington, it remains to estimate the value of the 

 privileges granted thereby in return to the people of Newfoundland. 



In the first place, the value of the right of fishing on the United States' coast 

 conceded to them must be considered. This consists in the liberty of fishing opera- 

 tions, with certain exceptions already set forth, on that part of the Uhited States' 

 coast north of the 39th parallel of north latitude. 



The arguments on this head contained in section 1 of chapter 3, in the " Case " 

 of Canada, will, it is believed, have satisfied the Commissioners that no possible 

 benefit can be derived by the fishermen of Newfoundland in this respect. Indeed, 

 all that has been said with regard to Canada applies with even greater force to the 

 more distant Colony of Newfoundland. Evidence has, however, been collected, and 

 will be laid before tiic Commissioners, if required, to prove that no fishermen from 

 Newfoundland resort to United States' waters for fishing operations. 



Secondly, and finally, the remission of the duty by the United States on New- 

 foundland exports of fish and fish oil, must be taken into account, and this, no 

 doubt, will be viewed as the most important item of set-olf to the privileges conferred 

 on United States' citizens. 



This privilege is, however, reciprocal, and enables the people of the United 

 States to dispose of tiieir fish in Newfoundland markets. When the comparatively 

 small export of Newfoundland fish and fish-oil to the United States is taken into 

 consideration, the amount ot duly remitted thereon is so insignificant that it could 

 not, under any circumstances, be entertained as an oHset for a participation in the 

 privileges accorded under Article XVIll of the Treaty of Washington. 



The Tables annexed (Annex D) will show not only the small amount of 

 exports of this article from Newfoundland to the United States, but also the large 

 and increasing trade with other countries. Even if a prohibitory duty were imposed 

 in the United States on exports of fish from Newfoundland, it would be a matter of 

 small moment to that Colony, which would readily find a profitable market for the 

 small (juantitics offish which would otherwise be exported in that direction. 



Again, upon an article so largely consumed as fish is in the United States, a 

 remission of duty must be admitted to be a benefit to the community remitting the 

 duty, as in reality it relieves the consumer, while it affords no additional remunera- 

 tion to the shipper; and this, as a matter of fact, has been particularly the case as 

 regards Newfoundland fish shipments to tlie United States. 



The opening up of the fishing grounds in Newfoundland, and their bait supply 

 to United States' enterprise, enables the people of that country to meet the demand 

 for fish food in their markets; already an appreciable falling off has taken place in 

 the exports to that country of Newfoundland caught fish (which has always been 

 very limited), and which, it may not unreasonably be supposed, will soon cease, 

 owing to the extension of United States' fishing enterorise. 



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