Memorandum communicated to Mr. Garter, October 4, 1906.

No. 39.]

The proposals contained in Mr. Whitelaw Reid’s private letter for the suspension of the recruiting clause in section 1 of the act of 1905, if United States fishermen would refrain from using purse seines after the 1st November, have been considered by the Newfoundland government, but they find themselves quite unable to accept them.

In these circumstances His Majesty’s Government would be glad to be favored at the earliest possible moment with the views of the United States Government on the modus vivendi proposals contained in Sir E. Grey’s memorandum of the 25th September, in order that if they are accepted the colonial government and United States fishermen may both be made acquainted at once with the terms of the arrangement proposed, and the necessary instructions given for its observation.