S02 APPENDIX 



Britain upon its own territory was in any way affected; nor can words be found in 

 the treaty transferring any part of that sovereignty to the United States. Great 

 Britain assumed only duties with regard to the exercise of its sovereignty. The 

 sovereignty of Great Britain over the coastal waters and territory of Newfoundland 

 remains after the Treaty as unimpaired as it was before. But from the Treaty results 

 an obligatory relation whereby the right of Great Britain to exercise its right of sover- 

 eignty by making regulations is limited to such regulations as are made in good faith, 

 and are not in violation of the Treaty; 



(/) Finally to hold that the United States, the grantee of the fishing right, has a 

 voice in the preparation of fishery legislation involves the recognition of a right in 

 that country to participate in the internal legislation of Great Britain and her Colonies, 

 and to that extent would reduce these countries to a state of dependence. 



While therefore unable to concede the claim of the United States as based on the 

 Treaty, this Tribunal considers that such claim has been and is to some extent, con- 

 ceded in the relations now existing between the two Parties. Whatever may have 

 been the situation under the Treaty of 1818 standing alone, the exercise of the right 

 of regulation inherent in Great Britain has been, and is, limited by the repeated recog- 

 nition of the obligations already referred to, by the limitations and liabilities accepted 

 in the Special Agreement, by the unequivocal position assumed by Great Britain in 

 the presentation of its case before this Tribunal, and by the consequent view of this 

 Tribunal that it would be consistent with all the circumstances, as revealed by this 

 record, as to the duty of Great Britain, that she should submit the reasonableness of 

 any future regulation to such an impartial arbitral test, affording full opportunity 

 therefor, as is hereafter recommended under the authority of Article IV of the Special 

 Agreement, whenever the reasonableness of any regulation is objected to or challenged 

 by the United States in the manner, and within the time hereinafter specified in the 

 said recommendation. 



Now therefore this Tribunal decides and awards as follows: 



The right of Great Britain to make .regulations without the consent of the United 

 States, as to the exercise of the liberty to take fish referred to in Article I of the 

 Treaty of October 20th, 1818, in the form of municipal laws, ordinances or rules 

 of Great Britain, Canada or Newfoundland is inherent to the sovereignty of 

 Great Britain. 



The exercise of that right by Great Britain is, however, limited by the said Treaty 

 in respect of the said liberties therein granted to the inhabitants of the United 

 States in that such regulations must be made bona fide and must not be in vio- 

 lation of the said Treaty. 



Regulations which are (i) appropriate or necessary for the protection and preserva- 

 tion of such fisheries, or (2) desirable or necessary on grounds of public order 

 and morals without unnecessarily interfering with the fishery itself, and in both 

 cases equitable and fair as between local and American fishermen, and not so 

 framed as to give unfairly an advantage to the former over the latter class, are 

 not inconsistent with the obligation to execute the Treaty in good faith, and 

 are therefore reasonable and not in violation of the Treaty. 



For the decision of the question whether a regulation is or is not reasonable, as being 

 or not in accordance with the dispositions of the Treaty and not in violation 

 thereof, the Treaty of 1818 contains no special provision. The settlement of 

 differences in this respect that might arise thereafter was left to the ordinary 

 means of diplomatic intercourse. By reason, however, of the form in which 

 Question I is put, and by further reason of the admission of Great Britain by her 

 counsel before this Tribunal that it is not now for either of the Parties to the 

 Treaty to determine the reasonableness of any regulation made by Great 

 Britain, Canada or Newfoundland, the reasonableness of any such regulation,^ if 

 contested, must be decided not by either of the Parties, but by an impartial 



