The Alaska boundary dispute was a territorial dispute between the United States and the United Kingdom, which then controlled Canada's foreign relations. It was resolved by arbitration in 1903. The dispute had been going on between the Russian and British Empires since 1821, and was inherited by the United States as a consequence of the Alaska Purchase in 1867. The final resolution favored the American position, and Canada did not get an all-Canada outlet from the Yukon gold fields to the sea. The disappointment and anger in Canada was directed less at the United States, and more at the British government for betraying Canadian interests in favour of healthier Anglo-American relations.
In 1825 Russia and Britain signed a treaty to define the borders of their respective colonial possessions, the Anglo-Russian Convention of 1825. Part of the wording of the treaty was that:
the said line shall ascend to the north along the channel called Portland Channel as far as the point of the continent where it strikes the 56th degree of north latitude; from this last-mentioned point, the line of demarcation shall follow the summit of the mountains situated parallel to the coast as far as the point of intersection of the 141st degree of west longitude
The vague phrase "the mountains parallel to the coast" was further qualified thus:
Whenever the summit of the mountains... shall prove to be at the distance of more than ten marine leagues from the ocean, the limit... shall be formed by a line parallel to the winding of the coast, and which shall never exceed the distance of ten marine leagues therefrom.
This part of the treaty language was an agreement on general principles for establishing a boundary in the area in the future, rather than any exact demarcated line.
Signed in 1839, the RAC-HBC Agreement created an understanding between the Russian-American Company and the Hudson's Bay Company. Typically referred to as the lisière, a stretch of the Alaskan Panhandle from Cross Sound to 54-40 was given to the HBC as a fur trade monopoly in exchange for the agricultural and pastoral products produced by its subsidiary, the Puget Sound Agricultural Company, along with an annual amount of furs given to the Russian company. The lease was renewed until the end of Russian America. This lease was later brought up by the Province of British Columbia as bearing upon its own territorial interests in the region, but was ignored by Ottawa and London.