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ipso facto debarred every individual connected with the limestone industry from obtaining a permit, as one and all had they quarried without licences, and asked him how he could expect outsiders to take up a business with which they previously were not acquainted, or, even if they did, how they could properly carry it on. I added that, to mark their sense of the offence committed, it was com- -petent for the authorities to punish offenders by fine or other- -wise, but that a flat refusal to issue any permits whatsoever, taken in conjunction with the Tutu's proclamation of April 26th. last prohibiting all export of stone, must give rise to the sup- -position that there was an intention indirectly to kill a long established flourishing British industry in order to foster that of the rival native company. I am induced to think that, owing to the not very efficient interpreting of Dr. Lo, this was not fully conveyed. In any case it did not elicit any satisfactory refuta- -tion. After a great deal of further inconclusive talk, in the course of which I touched on the economic loss, which the pro- -vince was incidentally sustaining by the non-sale of its produce, I left the subject with a final appeal to friendly feeling.
Yesterday I received from the Comissioner of Foreign Affairs a letter of which copy and translation, together with a copy of the reply thereto, are enclosed, and this forenoon Messrs. Shewa, Tomes and Company's local agent went in, as re- -quested, to talk matters over with Mr. Kuan, the Industrial Commissioner. A copy of his report of what took place is also enclosed, and you will therefrom see that, unless the Green Island. Company unconditionally withdraw their claim for damages, he refuses to discuss the sale to them of the stone confiscated, or to give guarantees with regard to supplies for the future. This fact I had the honour to report to you by telegraph, and to en- -quire whether or not a formal claim for damages should now be sent in, and, if not, what instructions you had to give.
The position as at present is an intolerable one,
in that, unless the claim is surrendered, one has no means of
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