PUBLIC RECORD OFFICE
༄། ༄། །
Reference:
CO.
885
12 PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
governed Sarawak (see map annexed to Statement) under the same title as that under which Mr. Dent and his Association proposed to administer the territory ceded to them.
That, assuming that no exception could be taken in point of international law to the government of the territories in question being vested in a private Association under the suzerainty of the Sultans of Sulu and Brunei, it appeared to your Lordship that it was desirable that the Association should be incorporated under a Charter, which would recognise the validity of the grants made by the Sultans, and contain provisions enabling Her Majesty's Government to exercise a control over the operations of the Association, especially in regard to its relations towards foreign States and their subjects.
That, on that point, Sir Julian Pauncefote was to refer us to Articles 35, 36, and 37 of Mr. Dent's printed Statement (pp. 11-13), which set out concisely the nature of the support and facilities which the Association solicited from Her Majesty's Government, and also the conditions to which it offered to submit in consideration of the grant of a Charter.
That, as regarded Article 35 (b), your Lordship was not disposed to pledge Her Majesty's Government to afford any greater amount of protection or support to the Association than would be extended to it, according to circumstances, if it were simply incorporated under the Joint Stock Companies Acts.
That, as regarded Article 35 (c); your Lordship proposed the insertion in the Charter of a proviso similar to that contained in the Charter granted in 1847 to the "Eastern Archipelago Company" (of which a copy was annexed), whereby the Association would be bound to obey the directions of the Secretary of State in all matters concerning their relations with foreign States.
That, as regarded the general frame of the Charter, your Lordship presumed that it should be substantially in conformity with ordinary commercial Charters, Her Majesty's Government having no special powers to confer on the Association, and the object of its incorporation by Charter being really to declare the recognition by Her Majesty's Government of the validity of the cessions made to it by the Sultans, and to secure a power of control over its proceedings.
That Sir Julian Pauncefote was to request that we would take the accompanying papers into our consideration, and that we would favour your Lordship, at our earliest convenience, with our opinion as to whether there was any objection, in point of law, to the grant of a Charter to the Association on the terms generally indicated in his letter, and subject to such other clauses and conditions as Her Majesty's Government might be advised to have inserted therein respecting the treatment of the native inhabitants or any other matters.
That Sir Julian Pauncefote was to add, in conclusion, that Baron Overbeck, whose name frequently appeared in the correspondence, had retired from the undertaking, which was now entirely in the hands of British subjects.
We were also honoured with Sir Julian Pauncefote's letter of the 4th September instant, stating that he was directed by your Lordship to transmit to us the accom- panying further papers, as marked in the margin, from which it appeared that the Dutch authorities in Borneo contemplated claiming a boundary which would conflict with the claims of the projected Association.
In obedience to your Lordship's commands we have the honour to
Report
That we see no objection in point of law to the grant of a Charter to the Associa- tion on the terms generally indicated in Sir Julian Pauncefote's letter, and subject to such other clauses and conditions as Her Majesty's Government may be advised to have inserted therein respecting the treatment of the native inhabitants or any other
matters.
We would submit, however, for consideration whether it would be expedient to insert, as suggested, a clause similar to that contained in the Charter of the "Eastern Archipelago Company," whereby the Association would be bound to obey the direc tions of the Secretary of State in all matters concerning their relation with foreign States. It would be hardly possible, if such a term were contained in the Charter, for Her Majesty's Government to avoid responsibility to foreign Powers for the acts of the agents of the Association, and, having regard to the questions that have already arisen,
* Mr. Lees, No. 10, Consular, June 16; ditto, No. 12, July 9; Mr. E. Dent, August 25, 1880.
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we conceive it probable, if the Company act under the directions of the Government, serious conflicts would result.
We suggest that the clause as existing in the Eastern Archipelago Charter should be modified, and that, in the present instance, the Charter should contain a term that, if at any time the Secretary of State should think it necessary to dissent from, or object to, any of the dealings of the Company with any foreign State or Power, and should make any suggestion to the Company founded on such dissent or objection, the Company would at all times act in accordance with such suggestions, and that in default of compliance the Charter should be avoided.
The Earl Granville, K.G., &c. &c. &c.
We have, &c., (Signed)
HENRY JAMES.
FARRER HERSCHELL. J. PARKER DEANE.