836

THE HONGKONG GOVERNMENT GAZETTE, 9TH OCTOBER, 1897.

The general stipulations of the Treaty in question, being based on the principle of most favoured nation treatment, are in accordance with the present views of Her Majesty's Government, but Article VII. is in the following terms :--

Article VII.

"The stipulations of the preceding Articles shall also be applied to the Colonies and Foreign "Possessions of Her Britannic Majesty.

"In those Colonies and Possessions the produce of the State of the Zollverein shall not be subject "to any higher or other import duties than the produce of the United Kingdom of Great Britain and Ireland, or of any other Country of the like kind; nor shall the exportation from those Colonies or "Possessions to the Zollverein be subject to any other or higher duties than the exportation to the "United Kingdom of Great Britain and Ireland."

Stipulations to this effect are entirely unusual in Commercial Treaties. No record exists in the archives of this. Department of the circumstances under which this Article was adopted, or of the reasons which induced Her Majesty's Government at the time to enter into an engagement of such a nature, and it would appear probable that the insertion of these words must have been due to over- sight, or to a want of adequate consideration of the exact consequences which would flow from them. The German Government are aware that for many years past the British self-governing Colonies have enjoyed complete Tariff autonomy, and that in all recent Commercial Treaties concluded by Great Britain it has been customary to insert an Article empowering the self-governing Colonies to adhere- or not-at will. No such Article is contained in the Treaty of 1865 between Great Britain and the Zollverein, and the consequence is that certain of the British Colonies, which are all comprised within its operation, find themselves committed by Treaty to a Commercial Policy which is not in accordance with the views of the responsible Colonial Ministers, nor adequate to the requirements of the people.

Beyond this the provisions of Article VII. of the Treaty of 1865, quoted above, constitute a barrier against the internal fiscal arrangements of the British Empire, which is inconsistent with the close ties of commercial intercourse which subsist and should be consolidated between the Mother Country and the Colonies.

Under these circumstances Her Majesty's Government find themselves compelled to terminate a Treaty which is no longer compatible with the general interests of the British Empire. They are, however, anxious at once to commence negotiations for the conclusion of a new Treaty, from which the stipulations of Article VII. shall be omitted, and which, whilst containing a clause providing for the facultative adhesion of the British self-governing Colonies, shall in other respects be similar to the Treaty now denounced.

Her Majesty's Government feel confident that the Imperial German Government will share their wish for the conclusion of a new and mutually satisfactory Treaty, in the negotiation of which Her Majesty's Government will be happy to consider any suggestions for improved stipulations which may be suggested by the experience gained during the period of over thirty years for which the Treaty of 1865 has subsisted.

I am, &c.,

His Excellency

The Right Honourable

Sir F. LASCELLES, G.C.B., G.C.M.G.,

No. 43. Commercial.

SIR,

&c.,

&c.,

&c.

SALISBURY,

FOREIGN OFFICE,

July 28th, 1897.

I have to request that you will at once give notice of the intention of Her Majesty's Government to terminate the Treaty of Commerce and Navigation between Great Britain and Belgium signed on the 23rd July, 1862.

upon

In virtue of the stipulations contained in Article XXV. the Treaty will accordingly terminate

the expiration of a year dating from the day upon which you give the notice.

The Honourable

Sir F. PLUNKETT, G.C.M.G.,

&c.,

&c.,

&c.

I am, &c.,

SALISBURY,

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