6 The King of Great Britain cedes the islands of St Pierre and Miquelon, in full right, to his most Christian majesty, to serve as a shelter to the French fishermen : and his said most Christian majesty engages not to fortify the said islands; to erect no buildings upon them, but merely for the convenience of the fishery, and to keep upon them a guard of fifty men only for the police.

" In 1763, the coast of Labrador was an- nexed to the government of Newfoundland Whales and seals were at that time the chief objects of pursuit on the coast; the trade was carried on by sloops and schooners from British America, and yielded a very valuable produce.

In 1764, captain, afterwards Sir Hugh Palliser, was sent out as governor, and a collector and comptroller of customs, established at St Johns, and in the follow- ing year the navigation laws were extended to Newfoundland, notwithstanding the op- position made by the merchants and fishing adventurers Sir Hugh, by his energy and love of justice, did much for the colony, and greatly ameliorated the condition of the poor fishermen, whose rights he strenuously main- tained By his advice an act was passed, commonly called " Sir Hugh Pallisers Act," by which the masters of vessels are compelled, under a heavy penalty, to secure the return of the seamen to England, and to pay them in money instead of in articles of supply.

Newfoundland was increasing in population and importance, when it received a severe check from the revolt of the American colonies, who having renounced all commer- Cial intercourse itli the mother country, were, after Home disrn-sion, excluded Iron i the lishrrirs These colonies tlien Ilirnishcd omidlaiid with produce to the amount of.

".