29646
No. 43..
(INTER-COLONIAL COUNCIL (TRANSVAAL AND ORANGE RIVER COLONY); CENTRAL SOUTH AFRICAN RAILWAYS; PORTUGUESE EAST AFRICA.)
LAW OFFICERS to COLONIAL OFFICE.
[Interpretation of Article IV. of the Modus Vivendi between the Transvaal and
MY LORD,
Mozambique.]
Royal Courts of Justice,
August 11, 1906. WE were honoured by your Lordship's commands signified to us by Mr. Ber- tram Cox in his letter of the 20th July last, stating that he was directed by your Lordship to transmit, for our consideration, a despatch from the High Commissioner for South Africa asking that our opinion might be obtained on two questions which had arisen as to the interpretation of Article IV. of the Modus Vivendi between the Transvaal and Mozambique, viz. :—
(i.) Did the terms of the Modus Vivendi as to rates, and particularly Article IV. thereof, apply only to Johannesburg and stations east thereof along the Lourenço Marques-Johannesburg Line, or could they be said equally to apply to all stations in the Transvaal?
(ii.) In the event of a reduction in railway rates being effected from other ports, has the Central South African Railway Administration to give, under the terms of the Modus Vivendi, such a reduction to Delagoa Bay as would maintain the actual difference to be proportionate only?
That, in our opinion, of the 12th of July, we dealt inter alia with the question of the applicability of the Modus Vivendi to lines constructed since it was nego- tiated.
That your Lordship would be glad if we would supplement that opinion by reporting on the two points now raised by Lord Selborne.
We have taken the matter into our consideration, and in obedience to your Lordship's commands, have the honour to
Report-
That, in our opinion, the terms of the Modus Vivendi as to rates apply only to stations between Johannesburg and Lourenço Marques on the line referred to in Article IV. and not to stations on any other line. No other line is mentioned in that article, and we can see no reason for extending the obligations of the Modus Vivendi to other lines.
We think that the difference to be maintained between the rates from Delagoa Bay and those from other ports is the proportionate and not the actual difference now existing between those rates. Any other construction of the Modus Vivendi might give rise to a discrimination much more in favour of one line by the other than appears to have been contemplated by the parties to the Modus Vivendi.
We have, &c.,
JOHN L. WALTON. W. S. ROBSON.
The Right Honourable
The Earl of Elgin, K.G.,
&c., &c.,
&c.
• No. 37.
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