Her Majesty's Principal Secretary of State, for the Colonies to His IIonor Lieutenant Governor Robinson, together with copies of the Treaty signed at Washington, on the 8th day of May, aud of Protocols of Conferences held by the Commission, of two notes which have passed between Sir Edward Thornton and Mr. Secretary Fish, and of a despatch addressed to the Governor General of Canada, stating the views of Her Majesty's Government on these important documents. Her Majesty's Government in the despatch first referred to, strongly urge upon the Government of this Island that, for reasons stated in the despatch from Earl Kimberley to Lord Lisgar, the same course should be pursued as in 1854, and the application made by the United States Government acceded to by Prince Edward Island, so that American Fishermen may be at once allowed, during the present season, the provisional use of the privileges granted to them by the Treaty.

I have respectfully to submit that Prince Edward Island is the most fertile and productive Province in British North America, in proportion to its extent that the natural market for its principal productions is to be found in the United States, as was very satisfactorily proved during the continuation of the Reciprocity Treaty of 1854-that the fisheries of this Island are the best and most valuable in America, and are much appreciated by the fishermen of the United States-that the different Governments and Legislatures of this Colony have always hoped that these fisheries would have done much to secure the advantages of another Reciprocity Treaty, or of some Tarriff Concessions authorizing the free admission of the products of our Agriculturists, who form the majority of our population, and which would have resulted in promoting the prosperity of the Colony— that by the Treaty now under consideration, the inhabitants of this Island are asked to surrender to the citizens of the United States, these invaluable fisheries, without receiving in return any just or fair equivalent, such as was hoped to be obtained-Earl Kimberley, in his despatch to Lord Lisgar, alludes 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 29, and the free navigation of Lake Michigan, under Article 28, and the power of transhipping goods under Article 30, as valuable privileges which must not be "overlooked in framing an estimate of the advantages which Canada will obtain."

Valuable to Canada as may be these privileges, the Committee submit that they do not at all affect Prince Edward Island-that the chief benefit to this Island would be the admission of fish and fish oil into the Markets of the United States, and this would not be generally felt by the people inasmuch as this trade is now principally in the hands of a few American Citizens-that the surrender by the United States of the right of fishing down to the 39th degree of latitude is comparatively worthless to the people of this Island, and as the United States Government assert that the privileges accorded to the citizens of the United States under Article 18, of this Treaty, are of no greater value than those accorded by Articles 19, and 21, to the subjects of Her Britannic Majesty, the amount of any money compensation that would be given to this Island would be insig

nificant.

Earl Kimberley in his despatch to Lord Lisgar, says, "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 pay"ment of a sum of money in gross, and their admission under the system of licenses cal"culated 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 tariff concession "whatever on the part of the United States, even as to the importation of fish."

The Committee submit that a Commercial arrangement with the United States, in consideration of the use of the fisheries, would have been most acceptable, but as the Royal High Commissioners were unable to induce the American Government to change its Commercial policy the people of this Island being extremely loyal, and devotedly attached to British Institutions, would be most unwilling to throw any obstacle in the way of an amicable settlement of all causes of difference between Great Britain and the United

States, and would therefore willingly accept any reasonable money compensation in addition to the privileges granted as an equivalent, but under the Treaty nothing of the kind is guaranteed them.

The Committee deem it to be their duty further to state that the system referred to of granting licences to American fishermen, for a money consideration, was never approved of by the Government of this Island, but merely sanctioned in deference to the strongly expressed wish of the British Government in the matter, and for the same reason the Committee now recommend that the application made by the United States Government be acceded to, so that American fishermen may be at once allowed during the present season the provisional use of the privileges granted to them by the Treaty, without any pledge, however, on the part of the Government, that the Legislature will pass the Acts to give effect to the Treaty, in which they feel that the interests of Prince Edward Island have not been fairly considered.

Adopted in Council,
July, 24th, 1871.

The Earl of Kimberley to Lieutenant Governor Robinson.

(Copy-Prince Edward Island-No. 32.)

DOWNING STREET,

3rd September, 1871.

SIR,I have the honor to acknowledge the receipt of your Despatch, No. 59, of the 25th of July, communicating to me the consent of your Government to the provisional admission of United States Fishermen during the present season to the privileges granted by the Treaty of Washington so far as concerns the Colony under your Government.

Her Majesty's Government have learnt with much satisfaction that the Prince Edward Island Government have so willingly acceded to their wishes in this respect.

With regard to the observations contained in the Minutes of Council, which you have forwarded, to the effect that the Prince Edward Island Government would readily accept any reasonable money compensation in addition to the privileges granted as an equivalent, but that under the Treaty nothing of the kind is guaranteed, I do not understand why the Prince Edward Island Government should object to the reference of the question of the money compensation to arbitration which seems to be the fairest way of determining such a point, more especially as the fact stated in the Minute that the rights of fishing conceded by the United States are comparatively worthless, is, it must be presumed, capable of distinct proof.

I will communicate with Lord Granville as to the wish of your Government, in the event of the Act necessary to give effect to the Treaty being passed, to appoint a Representative to give information to the Commission which is to meet at Halifax.

I have &c.,
(Signed,)

Lieutenant Governor Robinson, &c., &c., &c.

KIMBERLEY.

The Secretary of State for the Colonies to the Governor General. (Copy-Canada-No. 504.)

DOWNING STREET,

5th September, 1871.

MY LORD,-With reference to my Despatch of the 3rd inst., forwarding copies of a correspondence between the Governor of Newfoundland and the Lieutenant-Gevernor of

Prince Edward Island, and myself, relating to the Treaty of Washington and to the Fisheries, I have the honor to transmit to you, for your information, a copy of a letter from the Foreign Office, on certain points raised in that

31 August, 1871. correspondence.

I have communicated a copy of the Foreign Office letter to the Governor of Newfoundland and to the Lieutenant-Governor of Prince Edward Island.

I have. &c..
(Signed,)

Governor General The Right Honorable

Lord Lisgar, G.C.B., &c., &c., &c.

KIMBERLEY.

(Copy.)

Mr. Russell to the Under Secretary of State, Colonial Office.

FOREIGN OFFICE,

August, 31st, 1871.

SIR,—I have laid before Earl Granville, your letter of the 21st instant, enclosing copies of correspondence with the Governor of Newfoundland and the LieutenantGovernor of Prince Edward's Island, respecting the provisional admission of American fishermen to the inshore fisheries of those Islands, and I am, in reply, to request that you will state to the Earl of Kimberley that Lord Granville has no doubt that the Government of Newfoundland is right in assuming that the omission of the mention of Newfoundland in the passage in Mr. Fish's note to Sir E. Thornton, referred to, was unintentional.

Her Majesty's Chargé d'Affaires at Washington will, however, be instructed to call Mr. Fish's attention to the omission as being understood to be by inadvertence.

His Lordship wishes the Government of Newfoundland to be informed that the intention of the two notes was that pending reciprocal legislation, in return for the immediate provisional admission of American Fishermen to the inshore Fisheries, drawbacks should be granted on the Import Duties taken in the United States on the fish oil and fish which are to be hereafter admitted free for a term of years under the 21st Article of the Treaty.

I am to add that as regards the desire expressed by the Government of Prince Edward Island that some person should be appointed to attend the Commission at Halifax, it appears to Lord Granville that it would not only be permissible but highly desirable that Prince Edward Island and the other Provinces should furnish the fullest information before the Commission as to the value of the inshore Fisheries on their Coasts. The 24th Article of the Treaty provides that the Commissioners shall be bound to receive such oral or written testimony as either Government may present, and it will consequently be competent for the Government of Prince Edward Island to send to Halifax any person who may be selected as best capable of giving evidence on its behalf.

The Under Secretary of State,

I am &c.,

(Signed,)

ODO RUSSELL.

Colonial Office, &c., &c., &c.

The Secretary of State for the Colonies to the Governor General.

(Copy-Canada-No. 585.)

DOWNING STREET,

30th November, 1871,

MY LORD, With reference to my Despatch, No. 444, of the 17th June, 1871, I have the honor to transmit to you, for your information, and for that Lt.-Gov. P. B. 1.-No. 72-Sep. 30 '71. of your Government, copies of a correspondence between the LieuS. of S. to Lt. Gov. tenant-Governor of Prince Edward Island and myself, on the question of the refund of duties collected in the United States, on fish and fish oil, the produce of the Fisheries of Prince Edward Island and Newfoundland.

I have, &c.,
(Signed,)

Governor General The Right Honorable

Lord Lisgar, G.C.B.

KIMBERLEY.

Lieutenant-Governor Robinson to the Earl of Kinberley.

(Copy-Prince Edward Island-No. 72.)

GOVERNMENT HOUSE,

30th September, 1871.

MY LORD,-I have the honor to submit a copy of a letter addressed to me by Mr. I. C. Hall, an American merchant, largely engaged in the exportation of fish from Prince Edward Island to the United States, together with a copy of my reply thereto.

2. Mr. Hall is apprehensive that the refusal of Canada to assent to the provisional arrangement proposed by the United States and assented to by this Colony, as reported in my despatch No. 59, of the 25th July, may work adversely to the interests of those persons in Prince Edward Island, who have this year made large investments in the fishing business, in the expectation of receiving back the duties collected in the United States, on fish oil and fish exported from this Island into that country, during the present fishing season.

3. I do not in the least apprehend that the action of Canada withholding assent from an arrangement in respect of which it was necessary that each Colony concerned should decide for itself, will in any way prejudice the interests of Prince Edward Island, or that the Government of the United States will be hereby deterred from recommending and urging upon Congress to refund the duties collected during the stipulated period on fish oil and fish from this Colony, and I felt justified in informing Mr. Hall, that I considered his apprehensions unfounded.

4. An assurance to this effect from your Lordship, if one could be procured in time from the United States Government, and your Lordship should think proper to ask for it, would be most satisfactory and re-assuring to that section of the mercantile community to which Mr. Hall belongs, and would serve to counteract the depressing influence which the apprehension now entertained may otherwise have on the late autumn trade of the Colony.

17, 1871.

S. of S. to Lt.-Gov. 5. For previous correspondence on the subject of the provisional
-No. 22, of June arrangement mentioned in this communication, I beg to refer your
Lt. Gov. to S. of S. Lordship to the Despatches of the number and dates noted in the
-No. 59, of July margin.
25, 1871.

The Right Honorable

I have, &c.,
(Signed,)

The Earl of Kimberley.

WILLIAM ROBINSON.

Lieutenant-Governor.

(Copy.)

Mr. I. C. Hall to Lieutenant-Governor Robinson.

CHARLOTTETOWN, P. E. I,,
26th September, 1871.

SIR,-After the action of your Government giving effect to the Treaty of Washington, so far as the fisheries are concerned, admitting fish from the United States, as bait or otherwise, free of duty into this Colony, and giving to United States fishing vessels free access to the shore fisheries around this Island, those persons here who are engaged in the fishing business had supposed that their right, on the meeting of Congress, to receive back the duties paid on all fish and fish oils exported by them to the United States since the 1st day of July, could not be questioned.

Recent reports from the United States would, however, lead to the belief that the refusal of the Dominion of Canada, to give effect to the Treaty of Washington, may work adversely to the interests of this Island, and prejudice her claim to such return of duties.

As your Honor is probably aware, large investments have this year been made in the fishing business, based on the expectation of receiving the benefit of this Treaty, and a heavy loss to this Island must result if the duties are not returned.

I would therefore esteem it as a great favor if your Honor can give me any infor mation bearing upon this subject.

I have, &c.,
(Signed,)

I. C. HALL.

Mr. Robinson to Mr. Hall.

(Copy-No. 102.)

GOVERNMENT HOUSE,

29th September, 1871.

SIR,-I am directed by the Lieutenant Governor to acknowledge the receipt of your letter of the 26th instant, on the subject of the Treaty of Washington.

2. The Government of the United States requested Her Majesty's Government to urge the Government of Canada, Newfoundland, and Prince Edward Island, to make for the present season within their present jurisdiction, such relaxations and regulations as it might be in their power to adopt, with a view to the provisional admission of American Fishermen the liberty which is proposed to be secured to them by the Treaty of Washington; the Government of the United States undertaking in return to recommend and urge upon Congress, at their next Session, to refund to the parties paying the same, any duties collected in the United States on and after the 1st July, on fish oil and fish (with certain exceptions) the produce of the fisheries of the above Colonies respectively, if a similar arrangement should be made with respect to the admission into the above Colonies as aforesaid, of fish oil and fish (with like exceptions) being the produce of the fisheries of the United States.

3. Prince Edward Island assented to the proposed arrangement, Canada did not assent to it, and you are apprehensive that such refusal on the part of Canada may work adversely to the interests of those persons in Prince Edward Island who have this year made large investments in the Fishing business in the expectation of receiving back the duties paid by them on fish oil and fish exported from this Island into the United States during the present fishing season.

4. The Lieutenant Governor is of opinion that your apprehensions are unfounded,— an arrangement sanctioned by Her Majesty's Government has been entered into between