You inform me that without commenting on the fact that his Lordship assumes the waters surrounding the Pribyloff Islands to be the high seas, the President instructs you to say that it would satisfy your Government if Lord Salisbury would, by public Proclamation, simply request that vessels sailing under the British flag should abstain from entering the Behring's Sea for the present season. You add, if this request shall be complied with, there will be full time for impartial negotiations, and, as the President hopes, for a friendly conclusion of the differences between the two Governments.

I have telegraphed the above communication to Lord Salisbury, and I await his Lordship's instructions thereon. In the meanwhile, I take this opportunity of informing you that I reported to his Lordship by telegraph that at the same interview I again pressed you for an assurance that British sealing-vessels would not be interfered with in the Behring's Sea by United States' Revenue cruizers while the negotiations continued, but you replied that you could not give such assurance.

I trust this is not a final decision, and that, in the course of the next few days, while there is yet time to communicate with the Commanders, instructions will be sent to them to abstain from such interference.

It is in this hope that I have delayed delivering the formal protest of Her Majesty's Government announced in my note of the 23rd May.

Foreign Office, June 11, 1890.

IN reply to your telegram of yesterday, you may present the Protest.

No. 358.

Sir J. Pauncefote to the Marquis of Salisbury.-(Received June 12.)

(Telegraphic.) Washington, June 11, 1890. REFERRING to my previous telegram of to-day, I presume that Her Majesty's Government have no objection to refer to arbitration the question of the legal right of the United States' Government to exclude British sealing-vessels from Behring's Sea.

If this be so, I should be glad to know whether they would consent that the proposed Proclamation should be issued on the express conditions that the United States' Government shall not interfere with our flag this season, and, if the award be against them, shall at once pay damages for past interference, and compensate British sealers for losses sustained by them in complying with the Proclamation.

No. 359.

The Marquis of Salisbury to Sir J. Pauncefote.

(Telegraphic.) Foreign Office, June 12, 1890. IN reply to your telegram of yesterday, I have to state that there are serious constitutional difficulties in the way of your proposal.

But it might save time if, without prejudice to either side, you could ask the Government of the United States whether, supposing Her Majesty's Government were to agree to issue a Proclamation, and as to its terms, the United States' Government will agree to the three conditions formulated by you, namely, to refer the legality of their proceedings to arbitration, to abstain from any interference with the British flag, and, in case of an adverse award, to pay for damages resulting from the Proclamation.

(Telegraphic.)

No. 360.

The Marquis of Salisbury to Sir J. Pauncefote.

Foreign Office, June 12, 1890. REFERRING to my previous telegram of to-day's date, if we could come to terms on this proposal we would suggest some such kind of Proclamation as the following:

"Whereas, the United States and Her Majesty's Government have agreed to refer to arbitration the legality of the action of the United States in making certain captures of British vessels in the Behring's Sea; and whereas the United States have engaged if the award should be adverse to them to pay compensation not only for past interference, but for any loss arising from abstention from sealing consequent on this Proclamation. Captains are hereby requested not to seal in Behring's Sea during the present season."

My Lord,

No. 361.

Sir J. Pauncefote to the Marquis of Salisbury.-(Received June 13.)

Washington, June 3, 1890.

I HAVE the honour to inform your Lordship that, since the receipt of Mr. Blaine's note of the 29th ultimo, informing me of the rejection of the draft Convention by his Government, I have been in constant communication with him, with the view of coming to some possible settlement of the Behring's Sea question.

On the 30th ultimo Mr. Blaine informed me that he was to have an interview with the President, the result of which he promised to communicate to me as soon as possible.

I accordingly received a note from him last night, a copy of which is inclosed herewith, in which he states that the President is of opinion that an arbitration could not be concluded in time for this season, but he is anxious to know "whether Lord Salisbury, in order to promote a friendly solution of the question, will make for a single season the Regulation which in 1888 he offered to make permanent."

Your Lordship will observe that the above proposal is identical with that contained at the conclusion of Mr. Blaine's note of the 29th ultimo.

In view of the receipt of your Lordship's telegram of the 31st ultimo, and in order to save time, I at once wrote a note, a copy of which is also inclosed, to Mr. Blaine in reply, in which I informed him that Her Majesty's Government were not prepared to agree to such a Regulation as was suggested by Mr. Blaine.

I have, &c. (Signed)

Inclosure 1 in No. 361.

JULIAN PAUNCEFOTE.

Mr. Blaine to Sir J. Pauncefote.

My dear Sir Julian,

Department of State, Washington, June 2, 1890. I HAVE had a prolonged interview with the President on the matters upon which we are endeavouring to come to an agreement touching the fur-seal question.

The President expresses the opinion that an arbitration could not be concluded in time for this season. Arbitration is of little value unless it is conducted with the most careful deliberation. What the President most anxiously desires to know is whether Lord Salisbury, in order to promote a friendly solution of the question, will make for a single season the Regulation which in 1888 he offered to make permanent. The President regards that as the step which will lead most certainly and most promptly to a friendly agreement between the two Governments. I have, &c. (Signed)

JAMES G. BLAINE.

Dear Mr. Blaine,

Inclosure 2 in No. 361.

Sir J. Pauncefote to Mr. Blaine.

Washington, June 3, 1890. IN reply to your letter of yesterday evening touching the fur-seal question, I beg to state that I am in a position to answer at once the inquiry "whether Lord Salisbury, in order to promote a friendly solution of the question, will make for a single season the Regulation which in 1888 he offered to make permanent."

The words which I quote from your letter have reference, no doubt, to the proposal of the United States that British sealing-vessels should be entirely excluded from the Behring's Sea during the seal fishery season. I shall not attempt to discuss here whether what took place in the course of the abortive negotiations of 1888 amounted to an offer on the part of Lord Salisbury "to make such a regulation permanent.

Her

It will suffice for the present purpose to state that the further examination of the question which has taken place has satisfied his Lordship that such an extreme measure as that proposed in 1888 goes far beyond the requirements of the case. Majesty's Government are quite willing to adopt all measures which shall be satisfactorily proved to be necessary for the preservation of the fur seal species, and to enforce such measures on British subjects by proper legislation.

But they are not prepared to agree to such a regulation as is suggested in your letter, for the present fishery season, as, apart from other considerations, there would be no legal power to enforce its observance on British subjects and British vessels. I have, &c.

Colonial Office to Foreign Office.—(Received June 14.)

Sir, Downing Street, June 13, 1890. I AM directed by Lord Knutsford to transmit to you, for the information of the Marquis of Salisbury, a copy of a despatch from the Governor-General of Canada, forwarding a claim from the owners of the "Pathfinder" for the detention of that vessel at Neagh Bay in March last.

I am, &c. (Signed)

EDWARD WINGFIELD,

Inclosure 1 in No. 362.

My Lord,

Lord Stanley of Preston to Lord Knutsford.

Government House, Ottawa, May 20, 1890. I HAVE the honour to forward herewith, for transmission to the United States' authorities, a copy of an approved Minute of the Privy Council of Canada, to which is attached a formal declaration of the managing owner of the British schooner "Pathfinder," setting forth the particulars of the seizure of that vessel in Neagh Bay, in the State of Washington, by the United States' Revenue cutter "Corwin," and preferring a claim for damages to the amount of 3,000 dollars against the United States' Government in consequence of the said seizure.

Your Lordship has already been informed in the Deputy Governor's despatch of the 23rd October last of the circumstances of the former seizure of this vessel in Behring's Sea on the 27th August last by the same United States' cruizer.

Inclosure 2 in No. 362.

Report of a Committee of the Honourable the Privy Council, approved by his Excellency the Governor-General in Council on the 12th May, 1890.

ON a Report dated the 23rd April, 1890, from the Minister of Marine and Fisheries, submitting, in connection with previous Reports on the subject of seizures of British fishing-vessels in the Behring's Sea, and more particularly with reference to the Minute of Council approved by your Excellency on the 14th September, 1889, detailing the circumstances of the seizure of the schooner "Pathfinder," a formal declaration of the managing owner of the "Pathfinder," in which are set forth particulars of the subsequent seizure of the vessel in Neagh Bay, in the State of Washington, United States of America, on the evening of the 27th March, 1890, by the United States' Revenue cutter "Thomas D. Corwin ; "the Commander having recognized the "Pathfinder" as a vessel which had been seized in Behring's Sea during the previous year.

The "Pathfinder" sought Neagh Bay through stress of weather, and was undergoing repairs at the time of the second seizure. The vessel was towed to Port Townsend and placed in charge of officers from the Revenue cutter, until released on the afternoon of the 29th March.

The Minister further submits a claim advanced by Mr. William Munsie, of Victoria, British Columbia, merchant, as managing owner of the vessel in question, amounting to 3,000 dollars for loss resulting and expenses by reason of the seizure.

The Committee on the recommendation of the Minister of Marine and Fisheries, advise that your Excellency be moved to forward a copy of this Minute, together with the paper herewith, 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.

(Signed)

JOHN J. MCGEE,

Clerk, Privy Council.

Inclosure 3 in No. 362.

Declaration of Mr. W. Munsie.

Dominion of Canada, Province of British Columbia,

City of Victoria.

I, WILLIAM MUNSIE, of the city of Victoria, in the Province of British Columbia, merchant, solemnly and sincerely declare as follows:

1. I am the managing owner of the hereinafter mentioned schooner "Pathfinder," duly registered at the port of Victoria aforesaid.

2. The said schooner is employed exclusively in the sealing business, and left the port of Victoria on or about the 17th January last on a sealing voyage along the Pacific coast, south of Vancouver Island.

3. On or about the 8th February last the "Pathfinder" returned to Victoria for repairs, and sailed again for the same purpose on or about the 12th February last.

4. On or about the 23rd day of March last, when off Cape Flattery, the "Pathfinder" encountered a storm and became disabled by the breaking of the tiller-band, and was forced to find shelter in the nearest harbour, Neagh Bay, in the State of Washington, United States of America, lying about 9 miles from Cape Flattery. The "Pathfinder anchored in Neagh Bay on the 26th March last. On the evening of the 27th March, while still lying in said bay, undergoing repairs, an officer from the United States' Revenue cutter "Thomas D. Corwin," boarded the "Pathfinder" and asked for the ship's papers. These were banded to him, inspected by him, and in reply to a question by the captain of the "Pathfinder" as to whether they were all right, he replied that he would report to the Captain of the cutter. Next morning the Captain of the cutter sent an officer on board the "Pathfinder" with a request that her captain would go on board the cutter and take his papers with him. The captain did so, and after looking over the papers the Captain of the cutter said he recognized the "Pathfinder" as a vessel which had been seized last year, and that he must detain her, as the law must be maintained. He then ordered the captain of the "Pathfinder" to heave his anchor, and said he would take the "Pathfinder" to the nearest telegraph station, which was Port Angeles. The captain of the "Pathfinder" protested against being removed, and declined to hoist anchor. The

Captain of the cutter replied that if he did not hoist anchor men would be sent from the cutter to do so. Upon this the captain of the "Pathfinder" went back to his vessel and ordered his men to heave the anchor up.

The "Pathfinder" was then taken in tow by the cutter, and taken to Port Townsend. At that place two officers from the cutter were placed on board the "Pathfinder," and remained in charge until the "Pathfinder" was released. The captain of the "Pathfinder" entered a protest from the office of the Collector of Customs, Port Townsend, and also filed a protest with the Captain of the cutter. After doing so he was persuaded to withdraw both protests until reply had been received from Washington as to what disposition would be made of the "Pathfinder."

5. The "Pathfinder" was released on the afternoon of the 29th March last, and arrived at Victoria aforesaid on the morning of the 31st March last.

6. By reason of the said seizure or detention of the "Pathfinder," her owners have lost at least a week of the best period of the spring seasons for sealing. In consequence, also, of the seizure and detention, a number of the crew of the "Pathfinder" have deserted, causing inconvenience and loss in filling their places.

7. In respect of the said seizure and detention, and of the losses thereby resulting, and for the expenses incurred by reason of such seizure or detention, I, as managing owner of the "Pathfinder," claim of and from the Government of the United States as damages the sum 3,000 dollars.

And I, William Munsie, make this solemn declaration, conscientiously believing the same to be true, and by virtue of the Acts respecting extra-judicial oaths.

(L.S.)

(Signed)

WM. MUNSIE.

Declared at the city of Victoria, British Columbia, this 3rd day of April, A.D. 1890,

Before me,

Sir J. Pauncefote to the Marquis of Salisbury.-(Received June 16.)

My Lord, Washington, June 6, 1890. WITH reference to my despatch of the 3rd instant, I have the honour to inclose copy of a further note which I have received from Mr. Blaine on the subject of the proposed exclusion of British sealers from Behring's Sea during the present season, together with the reply which I have sent thereto.

Sir,

Department of State, Washington, June 4, 1890.

I HAVE your favour of the 2nd instant. The President sincerely regrets that his considerate and most friendly proposal for adjustment of all troubles connected with the Behring's Sea should be so promptly rejected.

The paragraph in your note in which you refer to Lord Salisbury's position needs explanation. I quote it in full:

"It will suffice for the present purpose to state that the further examination of the question which has taken place has satisfied his Lordship that such an extreme measure as that proposed in 1888 goes far beyond the requirements of the case."

I do not know what may have been the "examination of the question" that "has satisfied Lord Salisbury that such an extreme measure as that proposed in 1888 goes far beyond the requirements of the case." I only know that the most extreme measure proposed came from Lord Salisbury himself, in suggesting a close season as far south as the 47th parallel of latitude, to last from the 15th April to the 1st October in each year.