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Governor MacGregor to Lord Elgin.

[Telegram.]

(Received 1.5 a. m., September 4, 1907.)

In reply to your telegrams of the 2nd September, my Ministers have requested me to transmit the following message to you:"Referring to your telegrams of 2nd instant, my Ministers cannot accept the modus vivendi. It must be apparent to His Majesty's Government that their proposal contained in my telegram of 1st instant, entirely obviates any necessity for the same as it permits Americans to purchase herring on Treaty Coast as they did prior to 1904. My Ministers find it difficult to conceive what more can be desired."

MACGREGOR.

Lord Elgin to Governor MacGregor.

[Telegram.]

(Sent 4 p. m., September 6, 1907.) His Majesty's Government have received with much regret the reply of your Ministers, contained in your telegram of 3rd September, to my telegrams of 2nd September. Whatever might be the objections which could be urged against the conclusion of a modus vivendi last year, they do not consider that such objections can be held valid with regard to a modus vivendi made expressly with the purpose of tiding over the time which must necessarily elapse before the decision of the Hague Tribunal is obtained. That the terms of the modus vivendi should not have been acceptable to your Ministers they much regret, but some concession to the United States Government was imperative, and by my telegram of 23rd July your Prime Minister was so informed, and expressly invited to advise as to whether he preferred to permit the United States fishermen to use purse seines or to employ Newfoundland fishermen. No reply was received to this express enquiry, and His Majesty's Government, in view of the language used by your Prime Minister during the discussion in London, and of the danger of conflicts between Newfoundland and American fishermen should the latter try to use purse seines, and thus interfere with the fishing of the former, therefore decided to forbid the use of purse seines, thus securing a much more favourable arrangement for your Government than was the case last year. Further, His Majesty's Government have obtained an undertaking from the United States Government to consider favourably any arrangement made by your Ministers with the American fishermen on arrival in modification of, or in supersession of, the modus vivendi, and they gather from your telegram of the 30th August that your Ministers contemplate an arrangement satisfactory to both parties.

His Majesty's Government, therefore, hope that the Newfoundland Government will loyally co-operate in making effective the modus vivendi, the conclusion of which can no longer be delayed in view of the representations of the United States Government. It should be clearly understood that the modus vivendi confers no immunity on Newfoundlanders who disobey the laws of the Colony, but merely

secures the American vessels unimpeded exercise of Treaty Rights pending the decision of the Arbitral Tribunal as to the extent of Colonial jurisdiction. I may add that His Majesty's Government will urge the United States Government to submit to arbitration any point on which your Government and the Government of Canada are agreed. They cannot, however, give a pledge as to any one point until the views of the Dominion Government are known.

I will send text of modus vivendi as soon as it is available.-ELGIN

Lord Elgin to Governor MacGregor.

[Telegram.]

(Sent 3.20 p. m., September 7, 1907.) Referring to my telegram of yesterday's date, following modus vivendi as embodied in Note from United States Ambassador has been concluded:

1. It is understood that His Majesty's Government will not bring into force the Newfoundland Foreign Fishing Vessels Act of 1906, which imposes on American fishing vessels certain restrictions in addition to those imposed by the Act of 1905, and also that the provisions of the first part of Section 1 of the Act of 1905, as to boarding and bringing into port, and also the whole of Section 3 of the same Act, will not be regarded as applying to American fishing vessels.

2. In consideration of the fact that the shipment of Newfoundlanders by American fishermen outside the three mile limit is not to be made the basis of interference nor to be penalised, my Government waives the use of purse seines by American fishermen during the term governed by this agreement, and also waives the right to fish on Sundays.

3. It is understood that American fishing vessels will make their shipments of Newfoundlanders as fishermen sufficiently far from the exact three mile limit to avoid reasonable doubt.

4. It is further understood that American fishermen will pay light dues when not deprived of their rights to fish, and will comply with the provisions of the Colonial Customs Law as to reporting at a Custom House when physically possible to do so.

But my Government has every desire to make the arrangement, pending arbitration, as agreeable as possible to the Newfoundland authorities, consistent with the due safeguarding of Treaty Rights which we have enjoyed for nearly a century. If, therefore, the proposals you have recently shown me from the Premier of Newfoundland or any other changes in the above modus vivendi should be proposed by mutual agreement between the Newfoundland authorities and our fishermen, having due regard to the losses that might be incurred by a change of plans so long after preparations for the season's fishing had been made, and the voyage begun, my Government will be ready to consider such changes with you in the most friendly spirit, and if found not to compromise our rights, to unite with you in ratifying them at once.

Please communicate at once to your Ministers, but do not publish till Monday. United States Ambassador has promised to delay publication till then.-ELGIN.

Lord Elgin to Governor MacGregor.

[Telegram.]

(Sent 2.40 p. m., September 9, 1907.) With reference to my telegram of 7th September, His Majesty's Government have had under their careful consideration the measures necessary to fulfil the undertaking given to the American Government in connection with modus vivendi that the shipping of Newfoundland fishermen by American vessels shall not be penalised. In doing so they are most anxious in no way to detract from your Government's control over Newfoundland fishermen, and they have, therefore, decided that it would be most satisfactory to pass an Order in Council under the Act 59, Geo. III., ch. 38, Section 1, which will forbid the serving of process on board any American vessel or arrest of any vessel or of its gear, &c. They consider that this Order, while ensuring to the Americans the undisturbed enjoyment of the fishery in accordance with the modus vivendi, will cause the least inconvenience to the Government of Newfoundland, as it merely gives legal sanction to the arrangement in force last year under which the fishery was conducted without serious disturbance or breach of the peace.

His Majesty's Government invite the co-operation of your Government in carrying out the Order and have instructed the Senior Naval Officer on the station to render them every assistance in maintaining the law of the Colony as modified by the Order. They will be prepared to revoke or modify its provisions immediately a satisfactory arrangement is made by the Colonial Government with the American fishermen as contemplated in the modus vivendi, or the modus vivendi is accepted by your Government.

His Majesty's Government feel compelled, however, to place on record their deep regret that they should have had no alternative in consequence of the action of your Ministers but to avail themselves of the legal powers conferred on them by the Act 59 Geo. III.

His Majesty's Government recognise to the full the inconvenience caused to the Government of Newfoundland by the treaty obligations binding upon it, but these obligations were not created by His Majesty's Government, and in 1904 this country made no inconsiderable sacrifice of territory and money in order to reduce the pressure of French treaty rights. I may remind your Ministers that in this case the Government of Canada have, in order to meet their wishes, consented to share in the arbitration, although they have already obtained a friendly understanding with the United States. His Majesty's Government consider, therefore, that they were entitled to expect your Government's co-operation in arranging a new temporary modus vivendi pending the decision of the Arbitral Tribunal to which, in deference to your Government's wishes, the whole question is shortly to be referred.

The Order in Council is being telegraphed separately.-ELGIN.

Lord Elgin to Governor MacGregor.

DOWNING STREET, September 11, 1907.

SIR: With reference to my telegram of the 9th of September, I have the honour to transmit to you, to be laid before your Ministers, copies of an Order in Council of the 9th instant, giving directions with regard to the taking, drying, and curing of fish by the inhabitants of the United States of America in common with British subjects on the coasts of Newfoundland.

I have, &c.,

Governor MacGregor to Lord Elgin.

[Telegram.]

ELGIN.

(Received 7.39 a. m., September 12, 1907.) My Ministers have handed in a lengthy minute dealing with your telegrams of the 6th and 9th September, which my Ministers have epitomized as follows:

They expected that His Majesty's Government would have recognised in their proposal an honourable compromise which, while upholding the sovereignty of the Colonial law, permitted the Americans to obtain herring precisely as they had ever done prior to 1904. They point out that while their proposal would have secured the harmonious conduct of the fishery, the forcing upon this Colony of an objectionable arrangement is calculated to engender feelings of illwill and resentment among His Majesty's subjects.

They also point out that a reply to your enquiry of 23rd July was sent on the 1st of August.

They enter a protest against the submission of this Colony's case being prejudiced by Canadian Government or subjected to its approval. They observe that while telegram of 9th September, which accompanied Order in Council, intimated the willingness of His Majesty's Government to revoke or modify its provisions provided that satisfactory arrangement is made by them with American fishermen or modus vivendi is accepted, the initiai paragraph of telegram embodying text of Order in Council directs its publication and transmission to Senior Naval Officer. They consider that they are at least entitled to reasonable time in which to consider this proposal before Order in Council is promulgated, and again point out that fishery will not commence before at least month from date and that if suggestion of His Majesty's Government is deemed practicable no negotiation could take place until arrival of American fishermen. They ask, therefore, that they be allowed reasonable time to consider what their course of action should be before publication of Order in Council in view of fact that they could not have foreseen infliction on this Colony of such humiliation, which is calculated to prejudice this Colony's case before the Hague Tribunal.

The full minute goes by the post of 12th September. I hope you may delay publication of the Order in Council and communication to the Senior Naval Officer till you have the full text.

His Majesty's ship "Brilliant" left 11th September for Halifax; it is not required at the present time here.-MACGREGOR.

Lord Elgin to Governor MacGregor.

[Telegram.]

(Sent 12.45 p. m., September 14, 1907.) Your telegram 11th September. His Majesty's Government regret that the résumé of your Ministers' Minute which they give affords no ground justifying the revocation of the Order in Council. I am anxious, in the difficult position which has arisen, to show your Ministers all possible courtesy and consideration, but I cannot encourage any hope that the Order in Council will be revoked without publication unless your Ministers accept without reserve the modus vivendi and undertake to carry it out in its entirety. I will delay publication as long as possible to enable your Ministers fully to consider the situation, but I cannot consent to run any risk of further complicating the difficult international position by allowing the possibility of His Majesty's Order in Council being questioned on the ground of non-publication: and while I authorize you to withhold publication for the present, it is only on the distinct understanding that you are instructed to publish the Order in Council immediately on the arrival of the American fishermen, unless before that date your Ministers have accepted the modus vivendi.

Acceptance of modus vivendi will not prejudice modification or supersession by agreement with American fishermen.-ELGIN.

Governor MacGregor to Lord Elgin.

[Telegram.]

(Received 5.22 p.m., September 15, 1907.) The "Gresham" arrived here on the 14th instant. Shall I publish the Order in Council or wait for the fishing vessels?-MACGREGOR.

Lord Elgin to Governor MacGregor.

[Telegram.]

(Sent 1.45 p.m., September 16, 1907.)

Your telegram 15th September. You should inform your Ministers arrival of "Gresham" renders it essential for you to publish Order in Council unless they are prepared to accept modus vivendi, and you should ask for an immediate reply, which you will at once send to me. Your Ministers should clearly understand that in the event of unfavourable reply His Majesty's Government will have no alternative but to at once publish Order in Council, a course which, though inevitable, is to be regretted, and the responsibility for which will, in the circumstances, rest on your Government.

If in the meantime fishing ships arrive you must, in order to avoid greater complications, publish without further instructions.-ELGIN.

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