Dispute
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The Treaty of Paris ended the conflict surrounding the American Revolutionary War. Article 2 of that treaty set the boundaries:
And that all disputes which might arise in future on the subject of the boundaries of the said United States may be prevented, it is hereby agreed and declared, that the following are and shall be their boundaries, from the northwest angle of Nova Scotia, that angle which is formed by a line drawn due north from the source of St. Croix River to the highlands ...
by a line to be drawn along the middle of the river Saint Croix, from its mouth in the Bay of Fundy to its source, and from its source directly north to the aforesaid highlands which divide the rivers that fall into the Atlantic Ocean from those which fall into the river Saint Lawrence; comprehending all islands within twenty leagues of any part of the shores of the United States, and lying between lines to be drawn due east from the points where the aforesaid boundaries between Nova Scotia on the one part and East Florida on the other shall, respectively, touch the Bay of Fundy and the Atlantic Ocean, excepting such islands as now are or heretofore have been within the limits of the said province of Nova Scotia.
The United States claims the island on the basis of its proximity to the American coast. Canada claims the island on the basis that territories already considered part of Nova Scotia ought to be continued as part of New Brunswick today. The "northwest angle" of Nova Scotia refers to what is today New Brunswick, and the Canada–U.S. border still follows today the St. Croix River and a line due north from its source. At the time of the treaty's writing, Grand Manan was considered to be farther North-Northeast from New England than it actually is. A line from the mouth of the St. Croix River to Brier Island and other parts of Nova Scotia across the Bay of Fundy would cross Grand Manan Island rather than contain the whole and its nearby islands.
Once the St. Croix River was unambiguously identified following a commission provided by Jay's Treaty of 1794, it became clear that Machias Seal Island, as well as Grand Manan Island, was within 20 leagues (60 nmi (110 km)) of the shores of the United States and south of the line drawn due east from the mouth of the St. Croix River, but it remained unclear whether the islands were within the defined limits of Nova Scotia and its 1621 founding. That charter specifies Islands within six leagues of the boundary are part of Nova Scotia. These limits are written in the original text of the land grant dated 1621 to Sir William Alexander (founder of Nova Scotia) in which all "... islands, or seas lying near to, or within six leagues of any part ... of the said coasts" are deemed part of Nova Scotia. Machias Seal Island as well as numerous islands in Maine are located within six leagues from the original boundary line, although Britain would later cease its claims on other islands in eastern Maine, notably, Moose Island.
The ambiguities resulted in both countries claiming several islands in Passamaquoddy Bay, including Grand Manan. During the War of 1812, the United Kingdom occupied coastal Maine extending from the border with New Brunswick (created from Nova Scotia in 1784) west to the Penobscot River valley. During this time, tolls were charged upon residents at various occupied harbors in the area. The UK withdrew their forces upon signing the Treaty of Ghent in 1814, with the stipulation being that the boundary should be better delineated in the area of the Grand Manan Channel. In 1817, the decision of a joint commission declared that Moose, Dudley, and Frederick Islands belong to the United States, while Grand Manan and all other islands of the Passamaquoddy Bay belong to Canada.
The Treaty of Ghent also failed to settle the dispute while stating in Article Four:
Whereas it was stipulated by the second Article in the Treaty of Peace of one thousand seven hundred and eighty three between His Britannic Majesty and the United States of America that the boundary of the United States should comprehend all Islands within twenty leagues of any part of the shores of the United States and lying between lines to be drawn due East from the points where the aforesaid boundaries between Nova Scotia on the one part and East Florida on the other shall respectively touch the Bay of Fundy and the Atlantic Ocean, excepting such Islands as now are or heretofore have been within the limits of Nova Scotia, and whereas the several Islands in the Bay of Passamaquoddy, which is part of the Bay of Fundy, and the Island of Grand Menan in the said Bay of Fundy, are claimed by the United States as being comprehended within their aforesaid boundaries, which said Islands are claimed as belonging to His Britannic Majesty as having been at the time of and previous to the aforesaid Treaty of one thousand seven hundred and eighty three within the limits of the Province of Nova Scotia: In order therefore finally to decide upon these claims it is agreed that they shall be referred to two Commissioners to be appointed in the following manner: viz: One Commissioner shall be appointed by His Britannic Majesty and one by the President of the United States, by and with the advice and consent of the Senate thereof, and the said two Commissioners so appointed shall be sworn impartially to examine and decide upon the said claims according to such evidence as shall be laid before them on the part of His Britannic Majesty and of the United States respectively.
Machias Seal Island is not directly mentioned, although Grand Manan is finally settled to be part of British-Canada, as are the coastal islands of Maine to be part of the US. Machias Seal Island was again not considered. Later boundary treaties and negotiations extended the seaward boundary in the Grand Manan Channel in 1908–1910 to its present terminus, roughly equidistant between Grand Manan Island and the coast of Maine, and several nautical miles northeast of Machias Seal Island.
The island has also been claimed by the descendants of "Tall Barney Beal", particularly Barna Norton, who ran boat tours to the island.