Ambassador Reid to the Secretary of State.

No. 134.]

Sir: With reference to Mr. Carter’s dispatch of the 29th ultimoa on the subject of the Newfoundland fisheries question, I have the honor to inclose herewith a copy of a report of Inspector O’Reilly to the minister of justice in Newfoundland, dated the 21st ultimo, which has been sent to me by Sir Edward Grey, confirming and extending the report already communicated in the dispatch above mentioned, and is to the effect that the complaint of malicious damage to American fishing nets and fishing tackle by the Newfoundland fishermen was unfounded.

I have, etc.,

Whitelaw Reid.

Inspector O’Reilly to Minister of Justice.

Just in from Penguin Arm, where whole fleet are fishing. Have been at anchor there past ten days. No person came on board to make any complaints re loss or damage to nets or gear. There has been great loss of nets and gear, caused principally through the ignorance and carelessness of fishermen on board American vessels and through storms. Colonial, Shea, Gloucester, lost one night 56 nets. Some were afterwards creaped off the bottom. Fishermen brought here are unused to herring fishing and set their nets over other men’s gear and foul them, causing loss and damage to both. We have been amongst the fishermen continuously, and only two official complaints made, and those were by two of our people re herring taken from nets and loss and damage to a fleet of nets. No truth in statement that any malicious damage or injury has been done to gear. Things are very quiet and the most kindly feelings seemingly prevail amongst the fishermen of all classes. Herring are not plentiful.