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This is the exhibit marked "C" referred to in the declaration of William Munsie, made before me the 18th day of October, 1889.

(Signed)

A. L. BELYEA, Notary Public.

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Landing charges, telegrams, &c.
Housing and striking, 565, at 3s. 9d. per 100
Piling away to sorter, 565, at 1s. 10 d. per 100
Weighing for average, 150, at 2s. 6d. per 100
Cessing for assortment, 565, at 2s. 6d. per 120
Counting at delivery, 565, at 1s. 3d. per 100
Rent on 565, at 6 p. 120 p. wk., 5 wks.
Showing for public sale, lotting, &c.

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Allowance, 20 per cent. on £4 1s. 10d.

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(Signed)

This is the exhibit marked "B" referred to in the declaration of William Munsie, made before me the 18th day of October, 1889.

A. L. BELYEA, Notary Public.

Messrs. Carne and Munsie,

We have this day sold for your account at public auction the undermentioned goods in conformity with the sale conditions.

Prompt, the 4th December, 1888. Discount, 2 per cent.

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There was again a good demand for this important article at the sales held on the 1st instant, and all classes sold readily at the advanced prices established at the November auctions. The skins were chiefly purchased by the English, French, and American buyers. There is every indication of prices being maintained.

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Special Result of Sales of Salted Fur-Seal Skins, November 9, 1888.

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There was a large attendance of buyers at these sales, and throughout active competition prevailed, and on all classes an important advance was established. In the Alaska collection the smaller sizes realized relatively the highest prices. We quote

middlings, smalls, and large pups, 28 per cent. to 26 per cent. dearer, and middlings and smalls, middling pups, small pups, and extra small pups, 43 per cent. to 48 per cent. higher.

The 9,003 North-west Coast contained one fine parcel which realized extreme rates, and on other parcels an average advance of 20 per cent. to 30 per cent was established.

The 13,333 Lobos Islands skins contained one good parcel of 2,000 skins, which realized 40 per cent higher rates. The other assortments were not of a desirable description, but 20 per cent. higher rates were paid.

The few Alaska skins dressed in their natural state by a well-known English firm, sold as follows:

Middlings and smalls, 130s. each; small, 118s., 119s.; large pups, 93s., 94s.; middling pups, 78s.; small pups, 66s., 67s.; extra small pups, 63s. each. These prices include the cost of dressing.

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I AM directed by Lord Knutsford to transmit to you, for the information of the Marquis of Salisbury, a copy of a telegram which he has addressed to the GovernorGeneral of Canada respecting the proposed negotiations at Washington on the subject of a close time for seals in Behring's Sea.

I am, &c.

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(Telegraphic.)

Inclosure in No. 256.

Lord Knutsford to Lord Stanley of Preston.

Downing Street, December 11, 1889, 9 P.M.

IN reply to your telegram of 6th instant. Sir J. Pauncefote telegraphs: Mr. Blaine says that his Government have never asserted mare clausum doctrine, and will make no disclaimer, but that the question will be disposed of by international agreement for close time.

Únited States' Government do not agree to Canadian representation in negotiation as to close time. Proceedings would not be in the form of a Commission, but a Diplomatic Conference. British Minister would be advised by Canadian Assistant; and as conclusions would not be binding unless accepted by Governments, it would seem unnecessary to press for direct representation of Canada. Russia would not intervene in negotiations as to compensation to British subjects.

No. 257.

Colonial Office to Foreign Office.-(Received December 14.)

Sir, Downing Street, December 14, 1889. WITH reference to the letter from this Department of the 13th instant, inclosing copy of a telegram which had been addressed to the Governor-General of Canada, relating to the proposed negotiations at Washington on the subject of the establishment of a close time for seals in the Behring's Sea, I am directed by Lord Knutsford to transmit to you, to be laid before the Marquis of Salisbury, a copy of a telegram received from the Governor-General, in reply, communicating the views of his Government on points connected with this matter.

I am, &c.

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(Telegraphic.)

Inclosure in No. 257.

Lord Stanley of Preston to Lord Knutsford.

(Received December 14, 1889.)

SUBSTANCE of Resolutions passed at meeting of Council yesterday :Mare clausum doctrine has been asserted by United States of America, by instructing its officers to seize vessels in mid-ocean, by setting up that doctrine in the Courts, by obtaining condemnation of ships on that doctrine, and by selling the property of Canadians under such condemnation. Canada expects British Government not to conclude arrangement unless Behring's Sea declared in it to be free. She adheres to opinion that agreement as to close season and preservation of seals should be subject to her approval as one of the parties chiefly interested in the question.

Agreement as to close season should be terminable by each of the Parties to the Treaty. Canada fails to understand objection of the United States of America to a Canadian being direct Representative of Her Majesty's Government; but to avoid delay, will defer without further protest to course decided on by Her Majesty's Government.

No. 258.

Sir,

Colonial Office to Foreign Office.-(Received December 16.)

Downing Street, December 16, 1889. I AM directed by the Secretary of State for the Colonies to request that you will inform the Marquis of Salisbury, with reference to the telegram from Lord Stanley of Preston on the proposal to resume negotiations respecting the Behring's Sea (a copy of which was transmitted to you in my letter of the 14th instant), that his Lordship, after conferring with Sir Charles Tupper, is of opinion that the concurrence of the Canadian Government in that proposal is now sufficiently complete, and that Her Majesty's Minister at Washington may be instructed to make a formal communication to the United States' Government on the subject.

Lord Knutsford observes with satisfaction that the Dominion Governinent, although strongly impressed with the necessity arising out of the acts which it recapitulates in the first sentence of the telegram under consideration of concluding no arrangement which does not either comprise or rest upon a definitive assurance as to the freedom of the Behring's Sea, is now willing to waive the requirement that a declaration by the United States' Government to that effect shall precede the resumption of the negotiations, and to leave for future consideration at what time and in what manner this assurance shall be obtained.

On the second point raised in the telegram, Lord Knutsford thinks there can be no question as to complying in some form or other with the desire of Canada that no rules as to a close season shall be finally adopted unless she concurs in them. As the negotiations between the Representatives of the three Powers will be a diplomatic discussion ad referendum, and as Great Britain has no special interest in the Behring's Sea except on behalf of the Canadian fishery, this country could have no object in assenting to any conclusions unacceptable to the Canadian Government.

The telegram does not state the reason for which the Dominion Government proposes

that any one party to the Agreement shall have the power of terminating it, and, on this point, it will be desirable to consider the text of the Resolutions of the Privy Council when received; but Lord Knutsford apprehends that, as the Dominion Government considers it demonstrable that no close time is needed for the preservation of the seals, à fortiori it holds that any close time which may be prescribed in the first instance may possibly, after trial, be found needlessly injurious to the fishery, and should be practically subject to revision.

As the Dominion Government withdraws its stipulation for the direct representation of Canada in the negotiations, it will not be necessary to discuss this point further at the present time, and Lord Knutsford concludes that simultaneously with the discussion as to the close time, a Commission, comprising a Canadian Representative, but upon which Russia will not be represented, will consider the compersation to be paid in respect of the seizures of British vessels, and other losses arising out of past interference with them.

Lord Knutsford would therefore propose, with Lord Salisbury's concurrence, to reply to this telegram that Her Majesty's Government is glad to find that the Dominion Government consents to the negotiation in the form proposed, and will consult that Government at stages, and conclude no agreement as to a close time without their approval, and requests that a Representative of the Dominion Government may be ready to proceed to Washington as soon as Sir J. Pauncefote has received his instructions.

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Foreign Office, December 16, 1889.

I HAVE laid before the Marquis of Salisbury your letter of the 10th instant, in which you inclose copies of two despatches from the Deputy Governor of Canada, forwarding claims for compensation for losses sustained by the owners of the British schooners "Juanita" and "Pathfinder," in consequence of the seizure of those vessels by the United States' authorities in Behring's Sea.

His Lordship directs me to request you to inform Lord Knutsford, in reply, that these claims will be considered, together with those of other owners of vessels which have been seized, in the negotiations which it is proposed to conduct with the United States, and the commencement of which is waiting for the consent of the Canadian Government.

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The Marquis of Salisbury to Sir J. Pauncefote.-(Substance telegraphed.)

Foreign Office, December 17, 1889.

Sir,
I COMMUNICATED to the Secretary of State for the Colonies your telegram
of the 9th instant in regard to the question of reopening negotiations with the United
States' Government on the subject of the seal fisheries in Behring's Sea.

The Governor-General of Canada was made acquainted with the views of the United States' Government, as expressed in that telegram, and a reply has been received from him to the following effect :

"The Government of Canada expects that no arrangement will be concluded with the United States by Her Majesty's Government in which it is not expressly declared that the Behring's Sea is free.

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They adhere to their view that any agreement as to a close season and the preservation of seals should be made subject to the approval of Canada, as one of the parties whose interests are primarily involved; and they consider that each of the parties to the Treaty should have the power of terminating the close season Agreement.

"The Dominion Government are unable to understand why the United States should object to Her Majesty's Government being directly represented by a Canadian Delegate, but, in order to avoid delay, they are willing to defer without further protest to the course decided on by Her Majesty's Government."

I am,

&c.

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