(c) crown copyright Catalogue Reference:CAB/129/61 Image Reference:0003 CONFIDENTIAL COPY NO C.(53) 153 11TH MAY, 1953 CA3INET ICELAND FISHERIES DISPUTE Memorandum by the Minister of State On ISth D e c e m b e r , 1952, the Cabinet agreed in principle to refer the dispute to the International Court of Justice (C.C.(52) 106th Conclusions, Minute 6), 2. Subsequently the Foreign S e c r e t a r y explained in his paper C. (53) 16 dated 13th January the reasons which made it undesirable to refer the whole dispute to the Court, arid recommended that the Iceland Government should be asked to agree to a- reference of the Faxa Bay i s s u e only. 3, The Cabinet agreed to this course on 14th January ( C . C . ( 5 3 ) 2nd Conclusions, Minute 3). 4. The Iceland Government in reply enquired whether, if the Faxa Bay issue were referred to the International Court, the British fishing industry would undertake to withdraw the ban on landings of Iceland fish when the Court had given judgment. As the Foreign S e c r e t a r y informed the Cabinet on 26th March ( C . C . ( 5 3 ) 23rd Conclusions, Minute 6), he and other Ministers were told on 25th March by representatives of the. Eritish fishing industry that they were not prepared to give such an undertaking. The Iceland Government thereupon refused in effect to a g r e e to a reference to the International Court, as is shown by the annexed copy of the exchange of letters between the Joint Parliamentary Under-Secretary for Foreign Affairs and the Iceland Minister. 5. In anticipation of the Iceland G o v e r n m e n t s refusal to a g r e e to a reference to the International Court without an undertaking that the ban would be r e m o v e d a s soon as'the Court had given judgment, Ministers agreed on 27th March to place the dispute on the agenda of the first meeting of the P e r m a n e n t Commission which has been s e t up under the Overfishing Convention. The C o m m i s s i o n agreed at its meeting on 8th May that the International Council for the Exploration of the Sea should be asked to arrange for the study of various conservation p r o b l e m s , among them that of conserving fish stocks in Northern w a t e r s , including waters in the neighbourhood of Iceland. The Council will be asked to advise the Commission of the results of its studies. Conclusion 6. A complete impasse has been reached. The latest information from Grimsby suggests that the British trawler owners and skippers are l i k e l y to be a s firm a s ever in their stand. They are deeply concerned not Only that Iceland has not shown h e r s e l f prepared to make the least c o n c e s s i o n , but also that British-landings from distant fishing grounds (including the grounds around . Iceland where fishing conditions a r e exceptionally favourable this year) are heavy and are associated with slack markets in this country, with the result that p r i c e s a r e low and, in general, unremunerative. They are a l s o concerned at the declared intention of Mr. George Dawson, a British financier, to s e l l Iceland fish on the British market in defiance of t h e b a n . According to a p r e s s report on 11th May, Mr. Dawson has now signed a contract with the Iceland Trawler Owners A s s o c i a t i o n , the President of which i s reported to have stated that Mr. Dawson has been granted a concession for a number of y e a r s . Mr. Dawson has already been to Grimsby to d i s c u s s arrangements with the docks authorities for landing fish t h e r e . . 7. On the other hand, there is no possibility of persuading the Iceland Government to modify their attitude until after the general election in June. There i s therefore nothing to be gained for the present in attempting to persuade either party to agree to a c o m p r o m i s e ; nor i s there any effective means of coercing either the Iceland Government or the British fishing industry. Re commendations 8. I accordingly recommend that a further communication should be made t o the Iceland Government, pointing out that Her Majesty*s Government have made repeated attempts to bring about a settlement pf the dispute and that each time the proposals have been rejected or frustrated by the Iceland Government. Her Majesty's Government have already made it clear to the Iceland Government that they cannot guarantee that the landings ban will be lifted when the International Court.has ruled and they do hot, for the present, propose to take any further initiative and that it i s for the Iceland Government to make some constructive proposal. The point of t h i s is that the record m u s t be completed before we can make a statement in Parliament; We can afford to wait on an initiative from the Iceland Government because the Icelanders do not normally s e l l their fish here in the summer. The communication to the Iceland Government would be followed by a statement in Parliament on similar lines in order to make clear the position of . Her Majesty's Government. . . Foreign Office, S . W . L 11TH MAY, 1953. ANNEX Foreign Office, S . W . 1 . 31st March, 1953 . When you called on m e yesterday, you asked me to confirm i n writing the proposal relating to the f i s h e r i e s dispute which I made to you on 20th January. This proposal was that, in order to s e c u r e an e a r l y d e c i s i o n on a c l e a r - c u t and straight-forward i s s u e , Her M a j e s t y ' s Government and the Icelandic Government should a g r e e to refer to the International Court of Justice the question whether the Icelandic Government are entitled under International Law t o use the line drawn a c r o s s the F a x a - F l o i by Article 1 of the Regulations i s s u e d by the Icelandic Minister of F i s h e r i e s on 19th March, 1952, namely the line Eldeyjardrangur (Point 39) Galuvikurtangi (Point 4 0 ) , a s a base line from which to m e a s u r e their exclusive fishery l i m i t s . In the course of our conversation I made it clear that Her Majesty's Government naturally retained their point of view with regard t o all the other l i m i t s , which was s e t out in the Notes which had been a d d r e s s e d to the Icelandic Government l a s t y e a r . . . ' If the Icelandic Government agree to the proposal of Her Majesty's Government, Her Majesty's Government will be happy to d i s c u s s with a representative of the Icelandic Government the form of the Special A g r e e ­ ment under which the i s s u e shall be submitted to the International Court. (Signed) ANTHONY NUTTING His'Excellency Monsieur Aghar Kl. Jons son. Icelandic Legation, 17, Buckingham Gate, London, S. W. 1. 24th A p r i l , 1853. Dear Mr. Nutting, I have the honour to inform you that I a m under instructions from my Government to give the following reply to your letter of 31st March, 1953. The Icelandic Government wish to repeat that they a r e prepared to refer to the International Court of Justice the dispute between our two Governments a r i s i n g from the Regulations of 19th March, 1952, and are prepared to enter into d i s c u s s i o n s with Her Majesty's Government a s to how the matter m a y be s o r e f e r r e d , provided that the landing ban be immediately lifted, when a g r e e m e n t has been reached in this r e s p e c t . Yours s i n c e r e l y , (Signed) AGNAR KL. JONSSON Anthony Nutting, E s q . u n d e r I n t e r n a t i o n a l L a w to u s e the line d r a w n a c r o s s the F a x a - F l o i by A r t i c l e 1 o f t h e R e g u l a t i o n s i s s u e d b y t h e I c e l a n d i c M i n i s t e r of F i s h e r i e s o n 19th M a r c h , 1 9 5 2 , n a m e l y t h e l i n e E l d e y j a r d r a n g u r ( P o i n t 3 9) Galuvikurtangi (Point 40), as a b a s e line f r o m which to m e a s u r e t h e i r exclusive fishery limits. I n t h e c o u r s e of o u r c o n v e r s a t i o n I m a d e i t c l e a r t h a t H e r M a j e s t y ' s G o v e r n m e n t n a t u r a l l y r e t a i n e d t h e i r p o i n t of v i e w w i t h r e g a r d t o a l l t h e o t h e r l i m i t s , which w a s set out in the Notes which had been a d d r e s s e d to the Icelandic Government last year. If t h e I c e l a n d i c G o v e r n m e n t a g r e e t o t h e p r o p o s a l of H e r M a j e s t y ' s G o v e r n m e n t , Her Majesty's G o v e r n m e n t will be happy to d i s c u s s with a r e p r e s e n t a t i v e of t h e I c e l a n d i c G o v e r n m e n t t h e f o r m of t h e S p e c i a l A g r e e ­ m e n t under which the issue shall be submitted to the International Court. (Signed) ANTHONY N U T T I N G His Excellency M o n s i e u r Agnar Kl. Jdnsson. Icelandic Legation, 17, B u c k i n g h a m G a t e , L o n d o n , S . W . 1. 24th A p r i l , 1853. Dear Mr. Nutting, I h a v e the h o n o u r to i n f o r m you t h a t I a m u n d e r i n s t r u c t i o n s f r o m m y G o v e r n m e n t t o g i v e t h e f o l l o w i n g r e p l y t o y o u r l e t t e r of 3 1 s t M a r c h , 1 9 5 3 . The Icelandic Government wish to repeat that they a r e p r e p a r e d t o r e f e r t o t h e I n t e r n a t i o n a l C o u r t of J u s t i c e t h e d i s p u t e b e t w e e n o u r t w o G o v e r n m e n t s a r i s i n g f r o m t h e R e g u l a t i o n s of 19th M a r c h , 1 9 5 2 , a n d a r e p r e p a r e d t o e n t e r into d i s c u s s i o n s with Her M a j e s t y ' s G o v e r n m e n t a s to how the m a t t e r m a y be so r e f e r r e d , p r o v i d e d that the landing ban be i m m e d i a t e l y lifted, when a g r e e m e n t h a s b e e n r e a c h e d in this r e s p e c t . Yours sincerely, (Signed) AGNAR K L . JONSSON Anthony Nutting, Esq.