CO885-(15-16) — Page 51

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

15 PUBLIC RECORD OFFICE, LONDON

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

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Artioles XXV., XXVII., and XXVIII., by which the National Bank notes alone should be legal tender notes, and should be free from stamp duty, and Article XXX., by which the Government Mint was leased to the National Bank for twenty-five years. That by Article VIII. the Government was entitled to appoint two Directors and to approve half the rest of the Board. That this Concession was before the Law Officers in 1891 and 1892 in connection with the question whether the exemption from duty was not a breach of the London Convention.

That the Law Officers reported that they were of opinton that it was not so, the Bank having so much the character of a Government Institution that copies of these reports were attached to Enclosure 3. That Mr. Schreiner (who was then legal adviser to the High Commissioner) held a different opinion.

5. The Liquor Concession referred to in Sir A. Milner's present despatch, a brief summary of which was enclosed, translated from the Staats Almanak, which Almanak, however, as Sir A. Milner observed, omitted to mention that the Concession was a monopoly. That had Her Majesty's Government been aware at an earlier date that it was a monopoly, a protest might have been made against it as a breach of Article XIV. of the London Convention.

6. A number of Concessions under a scheme approved by Volksraad Resolution No. 1871 of November, 1896, for the encouragement of home industries.

That these Concessions (which were for the manufacture inter alia of matches, paper, chocolate, wool, soap, starch, mineral waters, oil and brushes) were intended to be protected by an import duty on the kind of goods which the concessionnaires produced. That many of them, however, it was believed, had never been actually put into operation. That although it was believed that more than one licence for the erection of a factory in any particular industry had never been given they were not monopolies in form. That they had therefore not been protested against as infringing the London Convention. That a specimen of these Concessions, together with the scheme and Volksraad Resolution under which they had been granted, were printed as enclosures in a petition from Mr. Humphreys, a copy of which was enclosed in Mr. Bertram Cox's letter.

That a schedule of the various enclosures referred to was annexed.

That Mr. Bertram Cox was to request that we would take the papers into our consideration, and furnish you with our opinion

(1.) Whether a general notice, such as was proposed by Sir A. Milner, might be at once issued declining to recognise as of right any Concession, pending further consideration of each Concession on its merits?

(2.) Whether, in view of the reservation of their rights to regard the explosives monopoly as illegal, contained in your despatch of 13th January, 1899, Her Majesty's Government would be justified in ignoring that Concession, and in imposing an import and excise duty on dynamite as suggested by Sir A. Milner?

(3.) Whether, as regarded the Netherlands South African Railway Company, which was registered in Holland, there was any means, by legal proceeding in the Netherlands or otherwise, either now or after annexation of the South African Republic, of preventing the Company from registering the transfer of the shares supposed to be held by the Government of the South African Republic?

(4.) Whether Her Majesty's Government might not decline to recognise certain privileges of the National Bank of the South African Republic, notably those relating to the legal tender of its notes, and to the lease of the Mint?

(5.) Whether Her Majesty's, Government would be justified in refusing to, recognise the liquor monopoly?

(6.) Generally, as to the position of Her Majesty's Government in regard to these Concessions in the event of the annexation of the South African Republic to Her Majesty's dominions.

In obedience to your commands we have taken the matter into our consideration and have the honour to

Report-

1. That we are of opinion that a notice may be issued to the effect that Her Majesty's Government will consider each Concession on the merits, and reserves the right to decline to recognise, or to modify, any Concession which may appear on exammation to have been outside the powers of the Government of the Transvaal having regard to the Convention, or which prejudicially affects the interests of the

public.

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2. We think Her Majesty's Government would be justified in ignoring the Explosives Monopoly Concession, and imposing an import and excise duty as suggested.

3. There are no means by legal proceedings by which such registration could be prevented. A notice should be publicly issued stating that Her Majesty's Govern- ment would not recognise any transfer of shares made by the Transvaal Government, and this should be served on the officials of the Company in the Netherlands. This will probably serve the purpose.

4. It will be necessary to modify the Concessions granted to the National Bank. This can be done by the promulgation of a law after annexation.

5. As this is a matter affecting the public interest, we are of opinion that Her Majesty's Government would be justified in enacting new laws upon the matter, even though the effect may be to destroy or interfere with the liquor monopoly. A claim for compensation may be made, and some caution should be exercised in dealing with this Concession.

6. We have nothing further to add except that before any particular Conces- sion is cancelled or materially modified, we think it would be well that the opinion of the Law Officers should be taken as to the way in which this should be done upon somewhat fuller instructions as to the Concession than are now before us.

We have, &c.,

The Right Honourable Joseph Chamberlain, M.P.,

&c..

&c..

&c., Colonial Office.

R. B. FINLAY. EDWARD CARSON.