462 APPENDIX 



that it would be most advisable that American vessels should comply with the regula- 

 tion on the ground that unless the vessels enter at the Custom Houses, the British 

 authorities have no cognizance that they are in Newfoundland waters, and that, as 

 His Majesty's Government are responsible for keeping the peace, it is important that 

 they should know exactly what American vessels are on the fishing grounds. More- 

 over, the provision in question is clearly necessary for the prevention of smuggling, 

 and unless American vessels have made proper entry at a Custom House, there is 

 no means, short of searching the vessels, of ascertaining whether they are really fishing 

 vessels, and not smugglers. 



The next point in dispute is the prohibition of purse seines. His Majesty's Govern- 

 ment have the independent testimony of British naval officers who have been employed 

 on the Treaty Coast, as to the destructive results of their use; and they would, there- 

 fore, point out that there is complete justification for the Colonial regulation. 



I would, moreover, remind Your Excellency that the regulation is in 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, therefore, feel that they cannot interfere with the enforcement of the 

 regulation which prohibits purse seines in the waters of Newfoundland. 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 Ameri- 

 can vessel entering a port of the Colony clearly does not involve an unreasonable inter- 

 ference 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 it would be unfair to intro- 

 duce 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 outlined above will 

 be agreed to by the United States Government. 



I have, etc. 



E. Grey 

 • His Excellency the Honorable Whitelaw Reid, 

 etc., etc., etc. 



NOTE FROM MR. REID TO SIR EDWARD GREY, JULY 12, 19071 



American Embassy, London, July 12, 1907 

 Sir, — Referring to your letter of June 20th, in relation to the Newfoundland 

 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 reciprocate to the 

 full the kindly expressions you have been good enough to use as to the moderation 



1 Appendix, U. S. Case, p. 1007; Appendix, British Case, p. 509. 



