Fisheries, and to endeavour to find some other equivalent; and the reciprocal concession of free fishery with free import of fish and fish oil, together with the payment of such a sum of money as may fairly represent the excess of value of the Colonial over the American concession, seems to them to be an equitable solution of the difficulty. It is perfectly true that the right of fishery on the United States coasts, conceded under Article XIX, is far less valuable than the right of fishery in Colonial waters, conceded under Article XVIII, to the United States, but on the other hand, it cannot be denied that it is most important to the Colonial fishermen to obtain free access to the American market for their fish and for fish oil, and the balance of advantage on the side of the United States will be duly redressed by the Arbitrators ur der Article XXII. In some respects a direct money payment is perhaps a more distinct recognition of the rights of the Colonies than a tariff concession, and there does not seem to be any difference in principle between the admission of American fishermen for a term of years in consideration of the payment of a sum of money in gross, and their adınission under the system of Licenses, calculated at so many dollars per ton, which was adopted by the Colonial Government for several years after the termination of the Reciprocity Treaty. In the latter case, it must be observed, the use of the Fisheries was granted without any tarift concession whatever on the part of the United States, even as to the importation of fish.

Canada could not reasonably expect that this country should, for an indefinite period, incur the constant risk of serious misunderstanding with the United States; imperilling, perhaps, the peace of the whole Empire, in order to endeavour to force the American Government to change its commercial policy; and Her Majesty's Government are confident that, when the Treaty is considered as a whole, the Canadian people will see that their interests have been carefully borne in mind, and the advantages, which they will derive from its provisions, are commensurate with the concessions which they are called upon to make. There cannot be a question as to the great importance to Canada of the right to convey goods in bond through the United States, which has been secured to her by Article XXIX; and the free navigation of Lake Michigan, under Article XXVIII; and the power of transhipping goods, under Article XXX, are valuable privileges which must not be overlooked in forming an estimate of the advantages which Canada will obtain. Her Majesty's Government have no doubt that the Canadian Government will readily secure to the citizens of the United States, in accordance with Article XXVII, the use of the Canadian Canals, as, by the liberal policy of the Dominion, those Canals are already opened to them on equal terms with British subjects; and they would urge upon the Dominion Parliament and the Legislature of New Brunswick, that it will be most advisable to make the arrangement as to duties on lumber floated down the St. John River, upon which the execution of Article XXX. as to the transhipment of goods, is made contingent.

The freedom to navigate the St. Lawrence, which is assured to the United States by Article XXVI., has long existed in fact, and its recognition by Treaty cannot be preju dicial to the Dominion, which moreover, obtains in return, the free use of certain rivers on the Pacific side of the Continent.

I must not omit to notice that, by Article XXXIV., the dispute as to the Island of St. Juan, is to be submitted to arbitration; and provision has thus happily been made for the amicable termination of a long-standing and difficult controversy at a time when, in consequence of the union of British Columbia with the Dominion, this boundary question has become matter of interest to the whole Confederation of British Provinces.

I have thus gone through those parts of the Treaty which immediately touch the Dominion; but a question of much moment remains as to the course which should be taken during the present fishing season, pending the enactment by the respective Legislatures of the Laws necessary to bring the Fishery Articles into operation.

I find that, on the conclusion of the Reciprocity Treaty, in June. 1851, and previous to its ratification, the then American Secretary of State (Mr. Marcy) expressed the hops of his Governant that American Fishermen would not be molested if they should at

once attempt to use the privileges granted by that Treaty. A despatch was therefore addressed to the Governor of the North American Colonies recommending that the wish of the United States Government should be acceded to, and that the American fishermen should be immediately admitted to the Colonial fisheries. The result was that the various Colonial Governments at once admitted the American fishermen to the fisheries, although the Legislative Acts necessary to give effect to the Treaty were not passed till late in the autumn. It is evidently most desirable that a similar course should be pursued on the present occasion; and you will perceive from the notes which have passed between Sir E. Thornton and Mr. Fish, copies of which I enclose, that the United States Government have made an application similar to that which they made in 1854; and that Her Majesty's Government have engaged to recommend to the Colonial Governments that it should be acceded to. Her Majesty's Government are of course aware that the Colonial Governments have no power to set aside the fishery statutes by their own authority; but it is entirely within. their power to take no active steps to enforce those statutes and to suspend the instructions to the Colonial Cruisers to exclude American citizens from the fisheries, just as it is in the power of Her Majesty's Government to suspend the action of Her Majesty's Cruisers, although the Imperial Fishery Statute is still in force.

Her Majesty's Government have no desire whatever to attempt to interfere with the entire right of the Colonial Legislatures to refuse to pass the acts necessary to give effect to the Treaty, though they would deeply deplore that a course which they believe would be most impolitic should be taken; but, on the other hand, they have too much confidence in the wisdom of those free Assemblies, to anticipate any such result; and they are confident that the Canadian Government would be as desirous as Her Majesty's Government that no untoward collision should occur during the present season which might prejudice the fair consideration of the Treaty, both by the American Congress and the Colonial Parliaments; and that, on a full consideration of the circumstances, they will see that the responsibility of incurring the risk of such a collision would be far heavier than that of removing, so far as they have the power, the obstacles to the provisional enjoyment by American citizens of the privileges which it is intended by the Treaty to secure to them for a longer time.

I cannot conclude this Despatch without expressing the gratification which it has given Her Majesty's Government to have had the valuable assistance of Sir J. Macdonald, in the negotiation of this Treaty. Whatever view may be taken in Canada of the merits of the Treaty, it must be an unqualified cause of satisfaction to the Canandians to know that they were represented by a Statesman holding so distinguished a position in the Canadian Government, and so well able, from his knowledge and experience, to put for ward with the greatest force and authority the arguments best suited to promote the claims and interests of the Dominion.

Governor-General

The Right-Honorable Lord Lisgar,

I have, &c.,

(Signed)

G.C.B, &c., &c., &c.

KIMBERLEY.

INSTRUCTIONS TO HER MAJESTY'S HIGH COMMISSIONERS, AND PRÓTOCOLS OF CONFERENCES HELD AT WASHINGTON BETWEEN FEBRUARY 27 AND MAY 6, 1871.

No. 1.

Earl Granville to Her Majesty's High Commissioners.

FOREIGN OFFICE, February, 9, 1871.

My LORD AND GENTLEMEN,-The Queen having been graciously pleased to appoint you to be Her Majesty's High Commisioners to proceed to Washington for the purpose of of discussing in a friendly spirit with Commissioners to be appointed by the Government of the United States the various questions on which differences have arisen between Great Britain and that country, and of treating for an agreement as to the mode of their amicable settlement, I inclose the necessary full powers, and have the honour to convey to you the following instructions for your guidance.

It is the earnest desire of Her Majesty's Government that the important negociation with which you are entrusted should be conducted in a mutually conciliatory disposition, and with unreserved frankness in your communications with the High Commissioners or Members of the Government of the United States with whom you may be placed in communication, and they believe that this object cannot be better attained than by leaving you full discretion as to the manner in which the subjects which may engage your attention should be discussed.

The principal subjects will probably be :--

1. The Fisheries.

2. The free navigation of the River St. Lawrence and privilege of passage through the Canadian Canals.

3. The transit of goods through Maine, and lumber trade down the River St. John. 4. The Manitoba boundary.

5. The claims on account of the "Alabama," "Shenandoah," and certain other cruizers of the so-styled Confederate States.

6. The San Juan water boundary.

7. The claims of British subjects arising out of the Civil War.

8. The claims of the people of Canada on account of the Fenian raids.

9. The revision of the rules of Marine Neutrality.

Copies of all the correspondence which has been presented to Parliament respecting the questions will be forwarded for your use.

1. The Fisheries.

On the termination of the Reciprocity Treaty of the 5th of June, 1854, by the United States' Government, the discussions respecting the rights of Americain fishermen under Article I of the Convention of the 20th of October, 1818, which had been set at rest by the Reciprocity Treaty, were revived, and, although temporary measures were taken to avoid pressing with severity upon Americain fishermen by the adoption of a system of licenses, it has been found impraticable to continue that system indefinitely, and, on its withdrawal, much excitement has been occasioned among the coast population of the Eastern States of the Union by the capture of boats engaged in illegal fishing, contrary to the Convention of 1818.

The correspondence will put you in possession of the facts of the several captures,

and enable you to judge, and explain if necessary, how far the pretentions of the American fishermen are exaggerated, and the leniency with which they have been treated under the directions of Her Majesty's Government and of the Government of the Dominion by the officers charged with the protection of the British Fisheries.

Irrespective, however, of the captures and confiscations of boats during the recent fishing season, there are. and have been for many years, differences of interpretation put upon the Convention of 1818 by the respective Governments, which might, at any time, rise into serious importance.

The two chief questions are: As to whether the expression "three marine miles of any of the coasts, bays, creeks, or harbours of His Britannic Majesty's dominions" should be taken to mean a limit of three miles from the coast line or a limit of three miles from a line drawn from headland to headland; and whether the proviso that "the American fishermen shall be admitted to enter such bays or harbours for the purpose of shelter, and of repairing damages therein, of purchasing wood, and of obtaining water, and for no other purpose whatever," is intended to exclude Americain vessels from coming inshore to traffic, tranship fish, purchase stores, hire seamen, &c.

Her Majesty's Government would be glad to learn that you were able to arrive at a conclusive understanding with the Commissioners of the United States upon the disputed interpretation of the Convention of 1818; but they fear that you will find it expedient that a settlement should be arrived at by some other means, in which case they will be prepared for the whole question of the relations between the United States and the British Possessions in North America, as regards the Fisheries, being referred for consideration and inquiry to an International Commission, cn which two Commissioners to he hereafter appointed, in consultation with the Government of the Dominion, should be the British Representatives.

Should the Government of the United States concur in this, it would be advisable that no time should be lost in appointing Commissioners on their side, and in the Commission commencing its labours; and, as it is scarcely probable that the Commissioners will be able to report, and a Treaty bo framed, before the commencement of the next fishing season, it would be also desirabie that you should agree upon some means, by license or otherwise, by which disputes may be avoided in the meanwhile.

2. Free Navigation of the River St. Lawrence, and Privilege of Passage through the Canadian Canals.

The President of the United States, in his Message at the opening of Congress in December last, referred to the claim of free navigation of the River St. Lawrence as being an occasion of difference between the two countries.

The IVth Article of the Reciprocity Treaty provided that the citizens and inhabitants of the United States should be allowed to navigate the River St. Lawrence and the canals of Canada; and Her Majesty's Government are not aware that any practical difficulty as to the free navigation of the St. Lawrence has arisen since the abrogation of that Treaty.

The exclusive right to the navigation of the St. Lawrence was maintained by this country throughout the discassions between the two Governments on the subject in 1824-27, and has been acknowledged as existing by this Article of the Reciprocity Treaty, under which the British Goverment retained the right of suspending the privilege.

Her Majesty's Government are, nevertheless, now willing to admit the principle of the navigation of the St. Lawrence being free to the citizens of the United States, subject to such tolls and regulations as may be imposed equally on British subjects.

This, however, cannot extend, except as a special privilege, to the passage through the canals constructed by Canadian enterprize through British territory, without which, from the strength of the current and dangerous rapids, the navigation of the St. Lawrence cannot be profitably conducted; and the best course will probably be found to be to refer

these questions for detailed examination and mutual arrangement in relation to the transit of goods in bond through Maine, St. John River lumber trade, navigation of Lake Michigan, passage through the canals in United States' territory, and other similar matters, to the Commission to be appointed to consider and report upon the Fisheries,

4. The Manitoba boundary.

The President has already intimated to Congress that he is of opinion that the survey of the boundary along the 49th parallel, which has only been carried out across the Rocky Mountains to the Gulf of Georgia, should be completed from the Lake of the Woods to the foot of the Rocky Mountains.

In this Her Majesty's Government concur, and will be ready to appoint a Commission for the purpose whenever the United States' Government think fit.

6.

5. The Alabama," "Shenandoah," &c., claims.

Under this head are comprised the claims against Great Britain for damages sustained by the depredations of the "Alabama," "Shenandoah," and "Georgia," the vessels which were furnished on account of the so-styled Confederate States and armed outside of British jurisdiction, and of the "Florida" which, though built in England, was armed and equipped in the port of Mobile.

The history of these vessels is so fully explained in the long correspondence which has taken place with regard to them, that it is unnecessary for me now to do more than point out that the claims which have been preferred on account of the "Alabama" stand on a different footing to those arising from the captures made by the other cruizers; in so far as the "Alabama" escaped from Liverpool after evidence had been supplied by the United States' Minister of the service for which she was intended.

Her Majesty's Government adhere to the principle of arbitration for the settlement of these claims, which was recognized and adopted in the Convention signed by Lord Clarendon and Mr. Reverdy Johnson as being, in their opinion, the most appropriate mode of settling this question; and, should arbitration be adopted, Her Majesty's Gov ernment would concur, if the United States' Government proposed it, in Jurists properly selected being made the Arbitrators instead of a Sovereign or State, as provided in the late Convention.

Although, however, Her Majesty's Government are of opinion that arbitration is the most appropriate mode of settlement, you are at liberty to transmit for their consideration any other proposal which may be suggested for determining and closing the question of these claims.

For the escape of the "Alabama" and consequent injury to the commerce of the United States, Her Majesty's Government authorize you to express their regret in such terms as would be agreeable to the Government of the United States and not inconsistent with the position hitherto maintained by Her Majesty's Government as to the international obligations of neutral nations.

6. The Sun Juan Water Boundary.

The line of water boundary under the 1st Article of the Treaty of June 15th 1846, upon which the British and American Commissioners appointed for its demarcation differed, was proposed by Lord Russell as a fit subject for arbitration in 1859; but, owing to the Civil War, the negotiations then instituted were not brought to a conclusion, and it was not until the 14th of January, 1869, that a Convention was signed between Lord Clarendon and Mr. Reverdy Johnson for referring the matter to an Arbitrator ;