Sir Julian Pauncefote to Mr. Blaine.

Sir: I communicated by telegram to the Marquis of Salisbury the substance of your note of the 27th ultimo, respecting the two reservations which Her Majesty’s Government desire to make in relation to the sixth clause of the proposed Behring Sea arbitration agreement, as stated in my note of the 23d ultimo, and I have now the honor to inform you that I have received a reply from his lordship to the following effect:

As regards the first reservation, Lord Salisbury observes that the statement contained in your note that the clause leaves the arbitrators free to decide whether regulations are needed or not, assures the same end as the proposed reservation, which therefore becomes unnecessary and may be put aside.

With respect to the Second reservation, his lordship states that it was not the intention of Her Majesty’s Government to defer putting into practical execution any regulations which the arbitrators may prescribe. Its object is to prevent the fur-seal fishery in Behring Sea from being placed at the mercy of some third power. There is nothing to prevent such third power (Russia, for instance, as the most neighboring nation), if unpledged, from stepping in and securing the fishery at the very seasons and in the very places which may be closed to the sealers of Great Britain and the United States by the regulations.

Great circumspection is called for in this direction, as British and American sealers might recover their freedom and evade all regulations by simply hoisting the flag of a nonadhering power.

How is this difficulty to be met? Lord Salisbury suggests that if, after the lapse of one year from the date of the decree of regulations, it shall appear to either Government that serious injury is occasioned to the fishery from the causes above mentioned, the Government complaining may give notice of the suspension of the regulations during the ensuing year, and in such case the regulations shall be suspended until arrangements are made to remedy the complaint

Lord Salisbury further proposes that, in case of any dispute arising between the two Governments as to the gravity of the injury caused to the fishery or as to any other fact, the question in controversy shall be referred for decision to a British and an American admiral, who, if they should be unable to agree, may select an umpire.

Lord Salisbury desires me to ascertain whether some provision of the above nature would not meet the views of your Government.

I have, etc.,

Julian Pauncefote.