CO885-(15-16) — Page 348

R

43544

No. 238.

(INTER-COLONIAL COUNCIL; TRANSVAAL AND ORANGE RIVER COLONY; Central SOUTH AFRICAN RAILWAYS.)

LAW OFFICERS to COLONIAL OFFICE.

[Machadodorp-Ermelo Railway Agreement; construction of Article XV. of the Inter-Colonial Council South Africa Order in Council, 1903.]

SIR,

Royal Courts of Justice,

December 27, 1904.

WE were honoured with your commands, signified in Mr. F. Graham's letter of the 5th instant, stating that he was directed by you to request the favour of our report upon a question which had arisen in connection with the Inter-Colonial Council South Africa Order in Council, 1903.

That, under the powers conferred by Article XV. of the Order in Council, an Agreement was made on the 21st August, 1903, with a Company called the Ermelo Railway Company, Limited, registered in the Transvaal and having its head office in Johannesburg, for the construction and working of a railway from Machadodorp to Ermelo.

That the Agreement contained, among the conditions of the Contract in accord- ance with which the line was to be constructed, a provision giving a guarantee on behalf of the Inter-Colonial Council pledging the funds of the Transvaal and Orange River Colony.

That before making a final decision as to carrying out the terms of that Agreement, you would be glad to have our report upon the construction of Article XV. of the Order in Council.

That Mr. Graham was therefore to request us to take the papers into our consideration and advise :-

1. Whether under Article XV. of the Order in Council, the Inter-Colonial Council had power to give a guarantee pledging the revenues and assets of the Transvaal and Orange River Colony.

2. If the answer to the first question was in the affirmative, whether the pledge could be given or made operative without the consent of the Legislative Councils of the two Colonies, having regard to Article IV. (d) of the Order in Council.

We have taken the matter into our consideration and, in obedience to your commands, have the honour to

Report-

That the first question must, in our opinion, be answered in the negative. The second question does not arise.

The Right Honourable

Alfred Lyttelton, M.P.,

&c.,

&c.,

&c.

25 Wt 416 103

D & B b 20091

We have, &c.,

R. B. FINLAY. EDWARD CARSON.

PUBLIC

RECORD OFFICE

19

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