CO885-(15-16) — Page 50

R

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

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

15 PUBLIC RECORD OFFICE, LONDON

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2. The interference of the Civil tribunala can only be prevented, (1) by passing such an Act confirming the action of the Courts Martial; (2) by refusing to comply with the Orders or Judgments of the Civil tribunals so far as they interfere with the sentences passer by Courts Martial. The latter course should be adopted only when it is imperatively necessary for the public safety, us in a district where war is still raging.

3. See the answer to Question 1.

4. We do not think any appeal advisable.

5. We think that an Act of Indemnity and Confirmation should be passed as soon as possible by the Colonial Legislature.

;

The Right Honourable Joseph Chamberlain, M.P.,

&c.,

&c.,

&c.

We have, &c.,

R. B. FINLAY. EDWARD CARSON.

23290/S.

SIR,

No. 44.

(SOUTH AFRICA.)

LAW OFFICERS to COLONIAL OFFICE.

[Treatment to be accorded to the Explosives Monopoly and other Concessions in the Transvaal.]

Royal Courts of Justice,

July 18, 1900. We were honoured with your commands, signified in Mr. Bertram Cox's letter of the 7th instant, stating that he was directed to transmit to us a despatch from the High Commissioner for South Africa, in which he asked for instructions with regard to the treatment to be accorded to the Explosives Monopoly and other Con- cessions in the Transvaal, and suggested the issue of a general notice declining to recognize, as of right, any Concession.

That so far as you could judge from the information before you the Concessions granted by the Government of the South African Republic had not generally been in the interests of the public alone. That there was reason to believe that in some cases the interests of private individuals had been considered, and in others that the object of the Concession was to exclude British trade and industry.

That the following brief account of the principal Concessions would show generally the nature and amount of the interests involved.

1. The Explosives Concession, the treatment of which as a breach of Article XIV. of the London Convention had formed the subject of former reference to the Law Officers. That the history of this Concession was contained in your despatch of the 13th January, 1899 [C. 9317], No. 1, and the subsequent corre- spondence. That this was the only Concession which Her Majesty's Government had protested against as a breach of the London Convention. That Her Majesty's Government, in your despatch of the 13th January, 1899, expressly Feserved their rights to regard this Concession as illegal. That a copy of the latest Law Officers' Opinion connected with this Concession was attached to Enclosure C.

2. The Netherlands Railway Concession, a copy of which was printed at pp. 546-555 of the volume (enclosed) containing the Report and Proceedings of the Industrial Commission appointed by the Government of the South African Republic. That for present purposes the most important provisions in this Con- cession appeared to be those in Article 17, which gave to the Railway Company the right to collect the Customs duties on goods passing over its line to or from Delagoa Bay, and those in Articles 32-34, by which the South African Republic Government guaranteed interest to the shareholders and interest and redemption to the debenture holders, while taking 85 per cent. of the surplus profits of the railway. That the Company was registered in Holland. That its share capital was £1,666,666, of which the Government was understood to have held nearly half, and its debenture capital was £7,029,500. That it was generally believed that the railway company had by various means favoured foreigners to the disadvantage. of British producers and shippers, and the Delagoa Bay route to the disadvantage of the Cape and Natal routes. That indeed President Krüger had given as a reason against expropriating the railway that the acquisition of the railway by the Government would have brought such differentiation within Article XIII. of the London Convention.

3. The Pretoria-Pietersburg Railway Concession (copy enclosed). That the Company holding this Concession was registered in London and Pretoria. That its share capital was £500,000, of which £300,000 was held by the Government, on which Her Majesty's Government had lodged a distringas, and its debenture capital was approximately £1,000,000. That the Government guaranteed 4 per cent. interest on the shares as well as on the debentures, taking on the other hand half the surplus profits (if any).

That it was understood that there were other Railway Concessions, particulars of which were not at present available, notably the Selati Railway Concession which was now the subject of legal proceedings at Brussels.

4. The National Bank Concession (copy of which was enclosed). That for present purposes its most important provisions appeared to be those in

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We 416 11/04 D & S 6 19867