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That that second contract was apparently quite independent of the first, and under its terms it would seem that the Government of Cyprus bound itself, among other things, to purchase annually for six years, at a stipulated price, from 15,000 to 20,000 plants, to be reared for that purpose by Messrs. Mucci, and in the event of the sooner deter- mination of the contract to purchase the plants "at the disposal of the Government for the current year and year following."

That Sir Julian Pauncefote was to refer us to Mr. Bovill's report of the 22nd March (Enclosure 1), in which he raised a question on the construction of that contract as regarded the obligation of the Government to purchase the plants, and suggested that the opinion of the Law Officers of the Crown should be obtained on that point, and also on the measure of damages recoverable against the Cyprus Government for the non-fulfilment of the contract. That it was presumed that as the land was not actually ascertained and the title of land was not in dispute, no question arose as to the jurisdiction of the High Court of Justice in that case.

That on that point Sir Julian Pauncefote was to refer us to the Turkish Law of Real Property of the 18th June 1867, and the Protocol relating thereto ("Hertslet's Treaties of Trade with Turkey," pp. 73 and 75), and to the High Court of Justice Ordinance, § 10 and § 108.

That Sir Julian Pauncefote was to request that we would take all the papers into our consideration, and favour your Lordship with our opinion as to the advice and instructions which should be given to the High Commissioner on the subject of both the contracta above referred to.

In obedience to your Lordship's commands we have the honour to

Report

That in our opinion the facts placed before us appear to establish that Mesars. Mucci have failed to supply the 10,000 trees, and have therefore so far failed in performing their part of the first contract.

This opinion we form independently of the question of delay caused by quarantine regulations, since it appears that the 10,000 trees have never been imported, planted, or delivered. The Government, however, are liable for the trees which they have accepted.

How many they may have accepted, the age and condition of the trees or plants, and whether they were negligently planted and staked, are questions of evidence upon which we can give no opinion.

With reference to the second contract, the Vth Article of the Convention of the 4th June 1878 gave the English Government the right to purchase land compulsorily. and we therefore consider that the Government were bound under their contract to provide the required nursery-ground and cannot now repudiate the contract, but wili on action brought be liable in damages for the breach of the second contract.

We should further remark that the two contracts are distinct and separate, and that any supposed failure on the part of Messrs. Mucci under the first contract will not justify the English Government in refusing to perform their part of the second

contract.

On the construction of the second contract we differ from the views expressed by Mr. Bovill, and are of opinion that the Government are under an obligation to purchase the plants at the prices scheduled.

The measure of damages, it seems to us, will be the loss of the profits which Messrs. Mucci would have made under their contract.

We would suggest that an attempt should be made to bring all litigation in relation to the two contracts to a termination by paying Messrs. Mucci a fair sun for the trees retained by the Government under the first contract. If such sum cannot be agreed upon, it should be referred to an arbitrator to determine the amount to be paid. If any claim be made under the second contract, a small sum should be paid to Messrs. Mucci in satisfaction of such claim.

The Earl Granville, K.G.,

&c. &c.

&c.

We have, &c.,

(Signed)

HENRY JAMES.

FARRER HERSCHELL.

J. PARKER DEANE.

16,938.

No. 241.

(FIJI.)

LAW OFFICERS to COLONIAL OFFICE. Dated October 30th 1880,

A 12916.-319.

25.- 12. 84.

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PUBLIC RECORD OFFICE

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CO. 885

12 PUBLIC RECORD OFFICE, LONDON

| ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TOPage 511

PUBLIC RECORD OFFICE

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Reference :-

C.O.

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COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC. ALLY WITHOUT PERMISSION OF THE

12 PUBLIC RECORD OFFICE, LONDON

1881

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