of the Act would prevent disputes cropping up, and would promote peace and harmony on the coast of Newfoundland. I am, &c. (Signed) EDWARD GREY. Lord Elgin to Governor MacGregor. [Telegraphic.] DOWNING STREET, September 29, 1906. His Majesty's Government were much disappointed by your telegram of 21st September, but felt that, under the circumstances, there was no alternative to course indicated in my telegram of 19th September. United States' Ambassador was informed accordingly on 25th September that His Majesty's Government consent to use of purse seines on the condition stated, and at same time His Majesty's Government expressed hope that recruiting just outside territorial waters will not be resorted to this year. Copy of communication will be sent by next mail. Governor MacGregor to Lord Elgin. [Telegraphic.] [Received, September 29, 1906.] My responsible advisers request me to transmit follwing message:"Minister of Finance has received information to-day by telegraph from the Sub-Collector of Customs at Bonne Bay, stating that an American schooner has arrived equipped with purse seines and declines to pay light dues, and desiring to be advised whether the laws are to be enforced. Ministers are placed in a most embarrassing position, not knowing whether agreement has been arrived at between His Majesty's Government and that of the United States by which Americans may use such seines and are exempt from payment of light dues. They desire to be advised promptly as to the exact position of affairs, and whether they are free to enforce the customs and fisheries laws of this Colony against American fishermen." Lord Elgin to Governor MacGregor. [Telegraphic.] DOWNING STREET, October 1, 1906. Will answer your telegram of 29th September as soon as possible. In meantime, please inform your Ministers that United States Ambassador has suggested privately, but not as on behalf of his Government, that in order to minimize inconveniences and discontent arising from use of purse seines by United States' fishermen and the shipping of Newfoundland fishermen outside 3-mile limit, following arrangement might be adopted-viz., Newfoundland Government to suspend for this season prohibition to engage crews in territorial waters, in return for which United States' vessels would stop using purse seines after 1st November, by which time they would have engaged enough men to work with nets only. Would your Ministers be prepared to entertain such an arrangement? Sir Edward Grey to Sir M. Durand. FOREIGN OFFICE, October 1, 1906. SIR: I told Mr. Carter to-day that the suggestion contained in Mr. Whitelaw Reid's private letter, to suspend the clause in Section 1 of the Act of 1905 which prevented American vessels from recruiting fishermen in Newfoundland waters, if the Americans in return would stop using purse seines after the 1st November, had been telegraphed to the Colony by the Colonial Office. If the Colonial Government accepted the suggestion at once, there would be no difficulty about including it in the modus vivendi, but in view of the fact that the legislation of 1906 in the Colony had been suspended, and that this had been done with very great reluctance, I assumed that the point now raised would have to depend entirely on the opinion of the Colony with regard to it. Mr. Carter asked me whether he was to understand that we wished the modus vivendi to be absolutely concluded and put in force at once, without waiting for the new point to be settled. I said I should like not to answer this question until I had consulted the Colonial Office as to whether they desired to wait for the reply of the Colony on the new point now raised or not, but I would send a reply in a day or two. I am, &c. (Signed) Governor MacGregor to Lord Elgin. [Telegraphic.] EDWARD GREY. [Received October 4, 1906.] I have been asked by my responsible advisers to transmit following Minute: Referring to your telegram of 1st October, my responsible advisers anxiously await a reply to their Minute of the 28th ultimo, in which they desired to be advised promptly as to the exact position of affairs, and whether they are free to enforce the Customs and Fisheries Laws of this Colony against American fishermen. They would most strongly deprecate any arrangement consenting to the use of purse-seines by American fishermen and to shipping of Newfoundland fishermen, and they are not prepared to consent to local fishermen being engaged to work for Americans in the conduct of fisheries of this Colony. By such a concession the policy of this Government in respect to herring fishery, which received such marked indorsement at the polls in 1904, and is rightly considered by mercantile body as of vital interest to the trade of the Colony, would be completely thwarted. A telegram received from the Sub-Collector of Customs at Port Saunders to-day states that American schooners 'Norma' and 'Annie M. Parker' from Gloucester arrived that morning and were preparing to seine and net herring for export, and had refused to pay light dues. In another communication from the Sub-Collector of Customs at Bay of Islands, it is stated that Captain Bonia of Gloucester, special agent for Gloucester firms, arrived there by railway on the 28th ultimo, and is engaging men and hiring boats for the full fishery. My responsible advisers again earnestly pray that His Majesty's Government will permit the proclaiming of sections 6 and 7 of "The Foreign Fishing-Vessels Act, 1906,' so as to enable them to deal with local fisheries, for it is entirely evident that disorder cannot be avoided and the peaceable conduct of the fisheries maintained in any other way." I have asked my responsible advisers [to] tell me, for your information, from what quarter, at what places, and under what circumstances disorder is expected, and what measures to preserve peace are being taken. Memorandum communicated by the Foreign Office to Mr. Carter, October 4, 1906. The proposals contained in Mr. Whitelaw Reid's private letter for the suspension of the recruiting clause in section 1 of the Act of 1905, if United States' fishermen would refrain from using purse seines after the 1st November, have been considered by the Newfoundland Government, but they find themselves quite unable to accept them. In these circumstances His Majesty's Government would be glad to be favoured, at the earliest possible moment, with the views of the United States' Government on the modus vivendi proposals contained in Sir E. Grey's Memorandum of the 25th September in order that, if they are accepted, the Colonial Government and United States' fishermen may both be made acquainted at once with the terms of the arrangement proposed, and the necessary instructions given for its observation. FOREIGN OFFICE, October 4, 1906. Governor MacGregor to Lord Elgin. [Telegraphic.] [Received October 5, 1906.] With reference to the last part of my telegram of the 3rd instant, my responsible advisers inform me that they have been apprized that the people of Bay St. George and Bay of Islands regard the usage of purse seines with great disfavour and alarm, and as destructive to their means of livelihood, and threats to destroy them have been expressed. They hold that if number of Newfoundland fishermen engage (to) Americans, the majority will resent this. The Sub-Collector at the Bay of Íslands writes that armed force will be wanted, as certain naturalized resident American subjects advise the people to defy and ignore law. My responsible advisers have sent Inspector of Fisheries to examine position and report, so that proper steps to preserve peace may be taken. Governor MacGregor to Lord Elgin. [Telegram.] (Received 8 a. m., October 13, 1906.) I am desired by my Responsible Advisers to transmit following message: Begins: The Committee of Council have had under consideration a telegram received by His Excellency the Governor from the Right Honourable the Secretary of State for the Colonies announcing the conclusion of a Modus Vivendi with the Government of the United States. They desire to record their profound regret that His Majesty's Government have seen fit to ignore their representations and entreaties, and to conclude an arrangement which is, they submit, subversive of the Colony's constitutional rights and calculated to work severe injury to the fisheries of the Colony. The Committee also regard with alarm the Cabinet's consent to an arrangement which is apparently intended to over-ride statutes that have received the Royal Assent. They earnestly hope that the arrangement is not beyond reconsideration by His Majesty's Government, and that by annulling the arrangement the Colony may be saved from the humiliation and danger that threatens it. Minute ends.-MACGREGOR. Lord Elgin to Governor MacGregor. [Telegram.] (Sent 11.40 a. m., October 23, 1906.) Your telegram of the 12th October." His Majesty's Government deeply regret that modus vivendi which has been concluded with the United States Government is not acceptable to your Ministers, but they do not understand grounds on which they base their complaint of subversion of constitutional rights and over-riding of statutes, and they submit that in the circumstances the correctness of their action cannot reasonably be called into question. In any case it is now too late for them to attempt to withdraw from the arrangement and they trust that your Ministers will do what lies in their power to see that it is properly observed.-ELGIN. a Received 13th October. Governor MacGregor to Lord Elgin. [Telegram.] (Received 10.25 p. m., October 26, 1906.) I am requested by Ministers' minute transmit the following mes sage: With reference to your telegram of 23rd instant, my responsible advisers desire to say that in the opinion which they have expressed respecting the subversion of constitutional rights and over-riding of colonial statutes they are supported by the opinion of the Minister of Justice and of learned counsel of high standing in England, and they propose, in accordance with the advice of said counsel, to test the question as to whether the modus vivendi can over-ride existing legislation of the Colony by taking legal proceedings against colonial fishermen who have engaged themselves and proceeded in violation of the law to prosecute the herring fishery. I have endeavoured to ascertain reference to law under which it is intended to proceed, and shall inform you.-MACGREGOR. Lord Elgin to Governor MacGregor. [Telegram.] (Sent 7.40 p. m., October 27, 1906.) Your telegram of 26th October. I shall be glad to have information promised as soon as possible; also to learn substance of opinions referred to, and data on which they were based. In the meantime please report to what extent provisions of Bait Act making it illegal to haul, catch or take bait fishes for exportation without licence are actually enforced on Colonial fishermen, how many such licences have been granted to Colonial fishermen this year, and whether there have been any prosecutions this year of Colonial fishermen for taking bait fishes for exportation without licence, and if so, how many?-ELGIN. Governor MacGregor to Lord Elgin. [Telegram.] (Received 7.20 a. m., November 1, 1906.) Referring to your telegram of 27th October, Ministers request me to send you following message: Bait Act has been rigidly carried out throughout Colony. No licences have been issued this year to local fishermen to allow them furnish foreigners with bait, nor have any such licences issued in case of the French since 1887 or in case of Americans since 1904, but last year, in deference to desire of His Majesty's Government that this Government should abstain during last season from any action likely to cause friction between the United States fishermen and British subjects no prosecutions were instituted against those who violated |