No. 261.

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

Foreign Office, December 17, 1889.

Sir, I HAVE to inform you that the Secretary of State for the Colonies has had under his consideration, in consultation with Sir Charles Tupper, the views of the Canadian Government, communicated to you in my despatch of this day's date, respecting the proposed reopening of negotiations with the United States on the Behring's Sea question. Lord Knutsford is of opinion that those views express with sufficient completeness the concurrence of the Dominion Government in the bases which would render such negotiations possible.

They are willing to abandon their former demand that, before the opening of the negotiations, the United States' Government should make a declaration disclaiming any pretension to regard the Behring's Sea as a mare clausum.

The condition under which Canada is to be consulted before the final acceptance of any rules as to a close season would appear to present no difficulty, inasmuch as the discussions will be ad referendum.

Her Majesty's Government are not yet in possession of the text of the Resolution of the Canadian Privy Council, recommending that the close-season agreement should be terminable by both parties to the Treaty, but there would seem to be nothing unreasonable in such a stipulation.

Although the Canadian demand for a direct representative has been withdrawn, Lord Knutsford is of opinion that a Commission upon which Canada, but not Russia, should be represented, might consider the question of compensation for losses arising out of the action of the United States' authorities at the same time as the discussion on the closeseason agreement is being carried on.

Lord Knutsford will inform the Governor-General of Canada, by telegraph, that Her Majesty's Government are glad to learn that the Dominion Government consent to the reopening of negotiations in the form proposed; that the Dominion Government will be consulted at all stages of the discussion; and that no agreement as to a close season will be concluded without their approval.

Lord Knutsford will, at the same time, suggest that a Canadian representative should hold himself in readiness to proceed to Washington as soon as you have received your instructions in regard to the negotiations.

You are now authorized to make a formal communication to the United States' Government in conformity with the instructions contained in this despatch.

No. 262.

I am, &c.

Sir,

Foreign Office to Colonial Office.

Foreign Office, December 17, 1889.

IN reply to your letter of the 16th instant, I am directed by the Marquis of Salisbury to transmit herewith, for the information of Lord Knutsford, a copy of the instructions which have been addressed to Her Majesty's Minister at Washington,* directing him to make a formal proposal to the Government of the United States for the resumption of negotiations on the Behring's Sea question.

I am at the same time to say that Lord Salisbury concurs in the reply which Lord Knutsford proposes to return to the telegram from the Governor-General of Canada, a copy of which accompanied your letter of the 14th instant.

No. 263.

Sir J. Pauncefote to the Marquis of Salisbury.—(Received December 18.)

(Telegraphic.)

I HAVE received your telegram of yesterday.

Washington, December 18, 1889.

It would be desirable that proposed communication of Colonial Office to Canada as to her consent to close season agreement be deferred.

I think Mr. Blaine will agree to an arrangement for a fixed term, and afterwards terminable at will of either party; but I am sure he will not consent to Commission to assess compensation. I have suggested that we should agree to a lump sum before the negotiation. He is considering the proposal with the President of the United States.

May I defer sending in a note until your Lordship has received my private letter, and until Mr. Blaine's answer reaches me?

No. 264.

Sir,

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

Foreign Office, December 18, 1889.

I HAVE received your telegram of this day's date, respecting the proposed negotiations on the question of the seal fisheries in Behring's Sea.

With reference to the request in the last paragraph, I have to inform you that you are authorized to defer making a formal proposal to the United States' Government until you receive a reply from Mr. Blaine as to the possibility of agreeing upon a lump sum for the compensation of the owners of vessels seized by the United States' authorities.

I am, &c.

My Lord,

Sir J. Pauncefote to the Marquis of Salisbury.-(Received December 23.)

Washington, December 13, 1889. WITH reference to my despatch of the 12th instant, I have the honour to inclose herewith an extract from the Report of the Secretary of the Treasury for the year 1889 on the subject of the seal islands in Behring's Sea.

I have, &c.

Extract from the Report af the Secretary of the Treasury for the year 1889 on the subject of the Seal Islands in Behring's Sea.

THE lease now held by the Alaska Commercial Company, of the exclusive right to take fur-seals on the Islands of St. Paul and St. George, in Behring's Sea, expires on the 1st day of May next. By the provisions of sections 1963 to 1967, Revised Statutes, the Secretary of the Treasury is required to lease to proper and responsible parties, for the best advantage of the United States, having due regard for the interests of the Government, the native inhabitants, their comfort, maintenance, and education, the right of taking fur-seals on the islands named, and of sending vessels thereto for the skins so taken, for the term of twenty years, at an annual rental of not less than 50,000 dollars, and a revenue tax of 2 dollars upon each fur seal-skin taken during the continuance of the lease. These provisions impose a large measure of responsibility upon the Secretary, and the official record of legislative proceedings in the last preceding session of Congress indicates that it is the will of that body that such discretion should remain as originally provided in the Statute.

The present lessees of the seal islands pay an annual rental of 55,000 dollars and a combined revenue tax and royalty of 2 dol. 62 c. per skin, and an experience of twenty years has shown the capability of the leasing system, when faithfully administered, to

The Pribylov Islands are now the only important sources of supply for merchantable seal-skins. The herd which makes those islands its home is variously estimated to number from 4,000,000 to 6,000,000 seals, but the Treasury agents on duty at the islands have begun to note an apparent decrease in the number of seals resorting to the islands in the breeding season. It is much to be desired that any such decrease is but temporary, for should the Pribylov herd disappear, there is none to replace it. It is estimated that upwards of 300,000 seals were killed by unauthorized sealing-vessels during the breeding seasons of 1888 and 1889, and as the great majority of these were cows, there was an almost equal loss of pup seals. It is obvious that the herd must soon disappear under such a decimation of its productive members, even if the habitual use of fire-arms did not tend to drive the seals away from their haunts in advance of their extermination.

The Act of the 2nd March, 1889, confers all the needed authority upon the Executive to protect the seals within the waters of the United States, but an appropriation is necessary to provide effective means for exercising that authority. There are not enough Revenue-cutters at the disposal of the Department to properly police the sealing-grounds during the dense fogs that prevail throughout the breeding season, and the great number of petty vessels engaged in marauding would render it impossible for their captors to furnish prize crews to take them all to Sitka for condemnation. The present state and prospects of the industry seem to call for prompt and energetic measures to preserve the valuable Pribylov herd from destruction or dispersion. It is suggested that a sufficient force of cruizing-vessels should be chartered, equipped, and manned, as auxiliary to such Revenue-vessels as could be spared from stations, and a depôt for prisoners established at Ounalaska, whence they could be transferred to Sitka, and dealt with according to law It is believed that two or three seasons of energetic effort would break up the present destructive and threatening operations.

No. 266.

Sir J. Pauncefote to the Marquis of Salisbury.—(Received December 27.)

(Telegraphic.)

SEIZURES in Behring's Sea.

Washington, December 26, 1889.

Secretary of State has been at New York during past week. I renewed discussion as to compensation this morning. He stated that he had decided to reply to the protest of Her Majesty's Government of October last, in order to place on record before the world the precise grounds on which his Government justify the seizures of our vessels, so that any compensation given may not be construed as an admission of wrong. He begged me to assure your Lordship that his reply would be sent in a few days, would not in any way embarrass the negotiations, and I will telegraph substance to your Lordship, and suspend further action pending its receipt.

No. 267.

Sir J. Pauncefote to the Marquis of Salisbury.-(Received January 6, 1890.)

My Lord,

Washington, December 6, 1889.

I HAVE the honour to report that I called on Mr. Blaine this morning on his return from New York, where he has been during the past week, and renewed the discussion as to the question of compensation for the seizures in Behring's Sea.

In the course of the conversation he informed me that, on further consideration, he had decided to reply to my protest in order to place on record before the world the precise grounds on which the United States' Government justify the seizure of the Canadian vessels, so that any compensation which may be granted may not be interpreted as an admission of wrong.

He begged me, at the same time, to assure your Lordship that the proposed negotiations would not be embarrassed in any way by his reply, and that he would send it in a few days.

I will telegraph the substance of his note to your Lordship as soon as I shall have received it, and I propose to suspend further action pending its receipt. I have, &c. (Signed)

J. PAUNCEFOTE.

No. 268.

Sir J. Pauncefote to the Marquis of Salisbury.-(Received January 6, 1890.)

My Lord,

Washington, December 26, 1889.

I HAVE the honour to transmit herewith an extract from the "Washington Post,' on the subject of an advertisement which has just been issued by the Secretary of the Treasury, inviting proposals for the privilege of taking fur-seals upon the Islands of St. Paul and St. George, Alaska, for the term of twenty years from the 1st May next.

As your Lordship will observe, the number of seals to be taken during the year ending May 1891 will be limited to 60,000, and for the succeeding years the number will be determined by the Secretary of the Treasury.

I have, &c. (Signed)

J. PAUNCEFOTE.

Inclosure in No. 268.

Extract from the "Washington Post" of December 25, 1889.

THE SEAL ISLAND CONTRACT.-Secretary Windom yesterday afternoon issued the following advertisement, inviting proposals for the privilege of taking fur-seals upon the Islands of St Paul and St. George, Alaska :

"The Secretary of the Treasury will receive proposals until 12 o'clock, noon, on the 23rd day of January, 1890, for the exclusive right to take fur-seals upon the Islands of St. Paul and St. George, Alaska, for the term of twenty years from the 1st day of May, 1890, agreeably to the provisions of the Statutes of the United States.

"In addition to the specific requirements of the said Statutes the successful bidder will be required to provide a suitable building for a public school on each island and to pay the expense of maintaining schools therein during a period of not less than eight months in each year, as may be required by the Secretary of the Treasury.

"Also to pay to the inhabitants of said islands, for labour performed by them, such just and proper compensation as may be prescribed by the Secretary of the Treasury.

"The number of seals to be taken for their skins upon said islands during the year ending May 1891 will be limited to 60,000, and for the succeeding years the number will be determined by the Secretary of the Treasury in accordance with the provisious of law.

"The right is reserved to reject any and all proposals not deemed to be in accordance with the best interests of the United States, and of the inhabitants of said islands.

"As a guarantee of good faith, each proposal must be accompanied by a properly certified cheque drawn on a United States' national bank."

No. 269.

Colonial Office to Foreign Office.-(Received January 10.)

Downing Street, January 10, 1890.

Sir, WITH reference to the letter from this Department of the 12th ultimo, I am directed by Lord Knutsford to transmit to you, to be laid before the Marquis of Salisbury, copies of three despatches from the Governor-General of Canada, forwarding the claims for losses incurred by the seizure in Behring's Sea of the "Triumph," the "Lily," and the "Black Diamond."

The claim in the case of the "Minnie" has not yet been received.

I am, &c. (Signed)

ROBERT G. W. HERBERT.

Inclosure 1 in No. 269.

Lord Stanley of Preston to Lord Knutsford.

My Lord,

Government House, Ottawa, December 16, 1889. WITH reference to my despatch of the 26th August last,* in which I inclosed a copy of an approved Minute of the Privy Council detailing the circumstances attending the

warning-off from the Behring's Sea of the British sealing schooner "Triumph," I have the honour to forward herewith, for transmission to the United States' Government, a copy of an approved Report of a Committee of the Privy Council, submitting formal statements and claim to compensation, on behalf of the owners, for loss incurred by reason of the said vessel being interfered with in the legitimate pursuit of her calling,

Report of a Committee of the Honourable the Privy Council, approved by his Excellency the Governor-General in Council on November 16, 1889.

ON a Report, dated the 11th November, 1889, from the Minister of Marine and Fisheries, submitting, in connection with the warning-off from the Behring's Sea of the British sealing-schooner "Triumph," the circumstances attending which were detailed in the Minute of Council dated the 22nd August last, made upon a Report of the 13th August last of the Minister of Marine and Fisheries, formal statements and claim to compensation on behalf of the owners, for loss incurred by reason of the said vessel being interfered with in the legitimate pursuit of her calling.

The Minister states that this claim amounts to 19,674 dollars, and is advanced by Mr. E. Crow Baker, of Victoria, British Columbia, managing owner, on behalf of himself, Daniel McLean, Rosine Gibson, and John C. Blackett, as joint owners of the vessel in question.

The Committee advise, on the recommendation of the Minister of Marine and Fisheries, that your Excellency be moved to forward a copy of this Minute, together with the papers herewith annexed, to the Right Honourable the Secretary of State for the Colonies for transmission to the Government of the United States. All which is respectfully submitted for your Excellency's approval. JOHN J. McGEE, Clerk,

(Signed)

Inclosure 3 in No. 269.

Declaration of Edgar Crow Baker.

Privy Council.

City of Victoria, Province of British Columbia,

Dominion of Canada.

I, EDGAR CROW BAKER, of the city of Victoria, in the Province of British Columbia, Dominion of Canada, retired Navigating Lieutenant, Royal Navy, but at present (among various other businesses) following the occupation or calling of a Real Estate and Financial Broker in the city aforesaid, and the duly authorized managing owner of the British sealing-schooner "Triumph," do solemnly and sincerely declare as follows:

1. That said schooner was built in April 1887 in Shelburne, Nova Scotia, purchased by myself and others, as per original register, and brought to the port of Victoria by one Daniel McLean, master and part owner, for the express purpose of engaging in the business of seal-hunting in the North Pacific Ocean and Behring's Sea, and elsewhere.

2. That said vessel was duly registered at the port of Victoria, British Columbia, by the usual method of transfer of registry, on the 2nd December, 1887, with the port number 11, her registered tonnage being 87.51, and her official number, 90,681.

3. That said vessel arrived at the port of Victoria on or about the 25th April, 1888, and after undergoing usual refit and outfit for her sealing voyage, cleared from the port of Victoria on or about the 5th May, 1888, for Behring's Sea, and prosecuted that branch of the deep-sea fisheries known as seal-hunting, in said arm of the North Pacific Ocean, with a crew composed principally of Indian hunters, and returned to Victoria on or about the 12th September of said year with a catch of 2,491 sealskins, and the master reported no interference or molestation on the part of the United States' Revenue cruizers.

4. That said catch was sold in the market at Victoria for the price or sum of 14,219 dol. 75 c., and after reimbursing all expense of outfit for the hunting period, payment of hunters and crew, yielded a very handsome profit to the owners of said vessel for their season's venture.

5. That the price paid for skins during the season immediately above referred to