At the end of the American Revolutionary War there was an attempt to solve the issue once and for all by redefining the French Shore in the Treaty of Versailles ( 1783 ). The shore now stretched from Cape St.John to Cape Ray, which left Bonavista and Notre Dame bays to the English, but offered the French on the west coast compensation. As well, there was a clause added that prevented the English from interfering with the French fishery. The French assumed this meant the British now recognized their
exclusive right to fish on the shore.
Despite the decline in fishing operations, the French held onto their rights to the shore because they knew that they possessed a valuable bargaining chip when dealing with the British and knew they should hold out until adequate compensation could be offered by the British. The government in Newfoundland had to be actively involved in the negotiation process after 1857 and they did not want, in any way, to give the French any advantage into the North Atlantic Fishery. This included rights to bait and eliminating all French fishing subsidies.