CORRESPONDENCE 463 



and fairness with which Mr. Root has stated the American side of the case. We have 

 had the same appreciation 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 abandon- 

 ing our fishing rights on the coast of Newfoundland under the Treaty of 1818. 



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 observa- 

 tions 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 circumstances, 

 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 authorizes me, and I now have the honour, 

 to propose a reference of the pending questions under the Treaty of 1818 to arbitra- 

 tion before the Hague Tribunal. 



We have the greater reason to hope that this solution may be agreeable to you 

 since your Ambassador to the United States recently suggested some form of arbitra- 

 tion, with a temporary modus vivendi pending the decision, as the best way of reach- 

 ing 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 im- 

 portant step in promoting the spread of this peaceful and friendly method of adjust- 

 ing differences among all civiUzed 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 continuation in force meantime of the 

 modus vivendi I had the honor 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 con- 

 tinued emplojTnent 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 compelled to insist on the 

 use of purse seines for the reason already stated. To give that up too we should con- 

 sider 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 indicating our 

 earnest desire to reach a mutually satisfactory arrangement, but an honourable and 

 agreeable means of doing so, 



I have, etc. 



Whitelaw Reid 



Sir Edward Grey, Bart. 

 etc., etc., etc. 



