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SIR,

No. 179.

(CENTRAL SOUTH AFRICAN RAILWAYS.)

TREASURY SOLICITOR to COLONIAL OFFICE.

[Selati Railway.]

Treasury, February 24, 1903. WITH reference to your letter of the 23rd December in the above matter', I beg to inform you that I laid the papers again before the Law Officers of the Crown and Mr. Parker.

A consultation was held on the 12th instant at which Mr. Cox was present, and I have now received the Opinion of the Law Officers and Mr. Parker, a copy of which, with a draft of the latter which they suggest should be written to the bondholders, is sent herewith.

I also submitted to the Law Officers the letter from Mr. Oyens forwarded to me with your letter of the 12th February, and send herewith a copy of their Opinion thereon, with the draft of a letter which it is suggested should be sent to Mr. Öyens.

I am, &c.,

DESART.

PUBLIC RECORD OFFICE

Reference :-

TPTTIC.O. 885

HU

Selati Railway—Opinion.

We agree that it would be in accordance with international usage that the obligations of the late Government of the South African Republic with respect to the bonds of the Northern Railway of the Transvaal should be assumed by His Majesty's Government, but we do not think that His Majesty's Government can be bound by any international usage to put the bondholders in any better position than they would have been in if the annexation of the Transvaal had not taken place. It is in the interest of the bondholders as well as of His Majesty's Government that the funds in question in the action should if possible be made available towards satisfaction of the bondholders' claims.

We understand that the position of His Majesty's Government with reference to the bondholders cannot be finally determined in the absence of Mr. Chamberlain. It is, however, in our opinion important that proceedings, to make the funds in question available to meet the claims of the bondholders, should not be longer delayed, and if, as we understand, there are difficulties which may prevent the bond- holders themselves from instituting such proceedings, we think that His Majesty's Government might be advised to institute such proceedings at the expense of the Treasury in the name of some bondholder to be selected for that purpose and who will sue on behalf of himself and all other bondholders having similar interests. In that case the necessary proceedings should, we think, be taken either through the Treasury Solicitor or under his control and supervision.

If this suggestion meets with the approval of the Colonial Office, we think the letter of the 23rd December, 1902, should be answered on the lines of the draft letter settled by Mr. Parker and annexed to this Opinion.

R. B. FINLAY. EDWARD CARSON. R. J. PARKER.

18th February, 1903.

(Draft proposed Letter.)

SIR,

by

WITH reference to your letter of the 23rd December, 1902, I am directed to inform you that no final decision can at present

be given as to the position of the bondholders of the Northern Railway of the Transvaal, but I am to state that, as His Majesty's Government cannot in any case be bound to put the bondholders in any better position than they

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