I'm translating a Gaelic Newspaper in date of May 28, 1892, and came across a little article on the aftermath of this dispute, that doesn't spell out the details about what it was about. I'm wanting to know more. (Article is on page 3 of that date's Mac-Talla from Cape Breton, for the scant handful here who might want to read it themselves.)
According to this, Newfoundland is acting more friendly now toward Canada (now being May 1892). They had made an agreement (possibly not an agreement--historical translation, the word used wouldn't mean that now, but it seems to make sense in context) with the United States [about what is the key missing information] that aggravated Canada. So Canada complained to Great Britain, which put a stop to it. Newfoundland was then angry at Canada and closed its ports to Canadian fishermen, while allowing access to American fishermen. Then something or other changed (again missing) and now they've reopened ports to Canadian fishermen and it's looking like a resolution is on the way.
So then, I'm wondering, what's the bigger context for this story, and how was the problem eventually resolved? I'm fairly certain this almost has to do with the cod fishery and the Grand Banks, but other than that, no clue.
The agreement you're alluding to is the Bond-Blaine Convention of 1890, which was a draft version of a trade treaty between the US and Newfoundland.
In a nutshell, fishermen from New England had for generations sailed to the west coast of Newfoundland either to catch or trade for herring, which were in turn used a bait for the Grand Banks cod fisheries. The right to fish on the northwest coast had been confirmed by an article of the Convention of 1818, which normalized relations between British North America and the US (including the establishment of the 49th parallel as a boundary).
As Britain moved toward a policy of free trade after 1846, removing imperial protections, the Canadian colonies became increasingly interested in a trade agreement with the US - culminating with the Elgin-Marcy Reciprocity Treaty of 1854, which was negotiated by the British government on behalf of the colonies of Canada, New Brunswick, Nova Scotia, PEI, and Newfoundland.
Newfoundland became party to another treaty in 1873, which allowed American fishermen access to the inshore fisheries while opening US markets to products from Newfoundland. This treaty was abrogated in 1885, leading the government of Newfoundland to seek a new treaty, which they would negotiate independently of the other British North American colonies.
The Canadian government opposed this move - they were worried that Canadian interests in negotiating a trade agreement with the US would be undermined and preferred that Newfoundland join Confederation - and it was not until 1890 that Robert Bond, a member of Sir William Whiteway's Liberal government, was able to travel to Washington and negotiate an agreement with the American Secretary of State, James Blaine.
When the Canadians learned of the ensuing agreement - which gave Americans access to the inshore fisheries and mining deposits in exchange for the opening of US markets - they were outraged and lodged a complaint with the Colonial Office. The British then nixed the agreement in order to please the Canadians - leading Newfoundland to retaliate by refusing to allow Canadian fishermen to purchase bait in Newfoundland ports. The Canadians responded by barring access to Labrador to fishermen from Newfoundland.
Finally, representatives of the two governments met in Nova Scotia in 1892 to resolve the issue - the "trade war" measures were removed, although the Canadians made it clear that they would not support the Bond-Blaine Convention and the Newfoundlanders were adamant that they would not join Confederation.
For a more detailed version of this story see: http://www.heritage.nf.ca/articles/politics/reciprocity-newfoundland-united-states.php