Like most attempts to define boundaries running through unexplored territories, the treaty terms admitted of two interpretations.

The boundary line from Portland Channel to Mount St.Elias was stipulated to run everywhere a distance of ten marine leagues from the coast and to follow its sinuosities.

This particular coast, however, is bitten into by long fiords stretching far into the country.

Great Britain held that these were not part of the sea in the sense of the treaty and that the line should cut across them ten marine leagues from the outer coast line.

On the other hand, the United States held that the line should be drawn ten marine leagues from the heads of these inlets.
The discovery of gold on the Yukon in 1897 made this boundary question of practical moment.