Tariff Retaliation

The Canadian Government, as a retaliatory measure against the heavy duties imposed upon fish by the Fordney Tariff, advised the U. S. State Department that after Dec. 31 no more privileges under the modus vivendi licenses-- would be granted to U. S. fishing vessels in Canadian ports. Hereafter, the privileges of these vessels will be governed by the treaty of 1818, under which U. S. fishing vessels can enter Canadian ports only for the purpose of shelter, repair, purchase of food and for obtaining water. The A.B.C. of the situation is: Canadian fishing is dependent on the U. S. market; could not compete with U. S. fishers who used Canadian ports as a base and who could ship fish into their country free of duty while Canadian fish were subject to the tariff regulations.

-- The history of the modus vivendi licenses is that in 1888 a fishing treaty was negotiated between the two countries. The U. S. Senate refused _ to ratify it. Anticipating ultimate ratification the British Government, as treaty-making power for -Canada, entered into a modus vivendi agreement with the U. S. for two years. Under this agreement licenses were issued to U. S. fishers giving them special privileges in Canadian ports. The modus vivendi agreement has been extended from time to time by Orders-in-Council to the present date.