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(Inclosure 1.)- Treaty between Great Britain and Portugal, signed

at Lisbon, June 11, 1891.

[See page 27.]

(Inclosure 2.)–Count de Valbom to Sir G. Petre.

(Translation.)
Your EXCELLENCY,

Lisbon, June 11, 1891. The Undersigned, His Most Faithful Majesty's Minister for Foreign Affairs, formally declares, with reference to the wish erpressed by Her Britannic Majesty's Government, that he will lease for the term of ninety-nine years, to persons named by the British Government, land at the Chinde mouth of the Zambezi, to be used under special regulations, for the landing, storage, and transhipment of goods. Sites, price, and regulations will be arranged by three Commissioners, to be named one by each of the two Governments, and the third by a neutral Power to be selected by them.

In case of difference of opinion among the Commissioners, the decision of the majority to be final.

The Portuguese Government trust that the British Government will have no hesitation in granting, whenever an application to that effect may be addressed to it, to persons named by the Portuguese Government, land under identic conditions, and for an identic pur pose, at a point on the south-west shore of Lake Nyasa, which may, by agreement between the two Governments, be deemed adequate for that object.

I avail, &c., Sir G. Petre.

COUNT DE VALBOM.

(Inclosure 3.)- Sir G. Petre to Count de Valbom.

M. LE MINISTRE,

Lisbon, June 11, 1891. I Am instructed by Her Majesty's Principal Secretary of State for Foreign Affairs to inform your Excellency that Her Majesty's Government, in conformity with the desire expressed by the Portuguese Government, undertake on their demand to lease for ninety-nine years, to persons named by them, land in some spot on the south-western coast of Lake Nyasa, to be agreed upon between the two Governments, on similar conditions and for similar | urposes as the land which the Portuguese Government undertake to lease for ninety nine years to persons named by Her Majesty's Government at the Chinde mouth of the Zambezi, to be used under regulations for the landing, storage, and tranship.reut of goods. The sites, price, and regulations to be arranged by three Commis.

sioners, to be named one by each of the two Governments, and the third by a neutral Power to be selected by them.

I avail, &c., Count de Valbom.

GEORGE G. PETRE.

(Inclosure 4.).--Sir G. Petre to the Count de Valbom.

M. LE MINISTRE,

Lisbon, June 11, 1891. In view of the great importance, in the interests of British and Portuguese commerce, of an easy and economical means of transport between the sphere of influence reserved to Great Britain on the south of the Zambezi and the sea-coast, I am instructed to state that it would be satisfactory to Her Majesty's Government if you could give me an assurance that the traffic rates to be charged on the railway to be constructed under Article XIV of this Convention shall not be unreasonably in excess of the proportionate rates per mile charged on other railway systems in South Africa.

I avail, &c., Count de Valbom.

GEORGE G. PETRE.

(Inclosure 5.)–Count de Valbom to Sir G. Petre.

(Translation.)
Your EXCELLENCY,

Lisbon, June 11, 1891. THE Undersigned, His Most Faithful Majesty's Minister for Foreign Affairs, formally declares, with reference to the wish expressed by the British Government, that the tariff' rates of the railway to be constructed in compliance with Article XIV of the Treaty signed to-day should not be excessive, that it is the intention of the Portuguese Government that the tariff rates on the railway in question should be moderate, and on a par with those of other African railways, without prejudice to the capital employed, and to certain other circumstances which must be had in consideration.

I avail, &c., Sir G. Petre.

COUNT DE VALBOM.

(Inclosure 6.)–Count de Valbom to Sir G. Petre.

(Translation.)
Your EXCELLENCY,

Lisbon, June 11, 1891. The Undersigned, His Most Faithful Majesty's Minister for Foreign Affairs, agrees, with reference to the wish expressed by Her Britannic Majesty's Government, that the importation of ardent spirits to either bank of the Zambezi and Sbiré, by those rivers, whether on the Portuguese or British sphere of influence, shall be

interdicted, and that the authorities of the two States shall agree upon the arrangements necessary to prevent or punish any infractions of these provisions.

I avail, &c., Sir G. Petre.

COUNT DE VALBOM.

(Inclosure 7.) - Sir G. Petre to the Count de Valbom. M. LE MINISTRE,

Lisbon, June 11, 1891. With reference to the understanding between Her Britannic Majesty's Government and the Government of His Most Faithful Majesty on the subject of the importation of ardent spirits to either bank of the Zambezi and the Shiré, I have the honour to inforin your Excellency that Her Majesty's Government agree that the said importation by those rivers, whether in the British or Portuguese sphere, sball be interdicted, and that the authorities of the two States shall agree upon the arrangements to prevent and punish infractions of this provision.

I avail, &c., Count de Valbom.

GEORGE G. PETRE

No. 234.—The Marquess of Salisbury to Mr. W. E. Goschen. Sir,

Foreign Office, June 19, 1891 Witi reference to Sir G. Petre's despatch of the 24th February last relative to the case of the James Stevenson, 1. desire to make the following observations :

His Excellency's refusal to admit the claim for compensation advanced by Her Majesty's Government was based on the assumption that the vessel was proved to be guilty of a contempt for the sovereignty of Portugal in Portuguese waters, shown by her wilfully passing their station on the south bank of the Ruo without stopping to be visited by the officials, in spite of three shots being fired as a warning to her to bring-to.

The statements upon which the Portuguese Government rely, and upon which they seek to justify the action of their authorities, are made by Portuguese officers and local officials, who are admittedly worthy of credit. On the other hand, Her Majesty's Government rely ou the evidence of the British subjects on board the steamer, including several thoroughly reliable and independent witnesses, whose testimony is equally to be trusted.

The Portuguese Government, in stating that the case is proved against the vessel, treat the evidence of their own officers as conclusive; Her Majesty's Governinent, on their part, think that the evidence on both sides gives correctly the impression of the witnesses, but that it shows an irreconcilable conflict as to what actually occurred.

It is easy to understand that persons on board and on shore may have differed as to the position of the vessel when the alleged shots were fired; but Her Majesty's Government cannot admit that it is proved that the Portuguese version is correct in spite of the contradiction of the British crew and passengers.

Apart from this controverted point, there are two distinct grounds upon which Her Majesty's Government found the claim for compensation :

In the first place, it is clearly proved, both by the evidence of the Portuguese and British witnesses, that the James Stevenson was boarded by a Portuguese naval officer (the Midshipman Senhor Manuel Barba de Menezes) after she had anchored within the waters of the British Protectorate. This violation of British territorial waters constitutes an undoubted breach of international law. It was an act which cannot be justified, and for which reparation is clearly due.

Secondly, even if the vessel had been in fault, as is contended by Portugal, the Portuguese authorities exceeded the limits of action warranted by the alleged offence. Senhor du Bocage states that if she had stopped she would merely have been subjected to an examination of the cargo; the default of which she was supposed to be guilty was, therefore, a breach of Customs Regulations. It would have been a strong reasure, under these circumstances, to bave seized the vessel on her return voyage, and it would be difficult to adduce sufficient justification for the seizure; but there was absolutely no justification for the arrest and prolonged imprisonment of the captain and officers, who were practically treated as criminals. The Portuguese officers dealt with the case, not in a judicial but in a hostile spirit, and treated the subjects of a friendly Power in a manner altogether incommensurate with the alleged offence.

I have to request you to address a note to the Minister for Foreign Affairs as a formal reply to Senhor du Bocage's communications of the 5th and 16th February, embodying these observations, and stating that, in making the moderate demand of 1,4501. as compensation for the injured officers, Her Majesty's Government consider that they are reducing within the most moderate limits a claim based on a palpable violation of British territorial waters, and on the almost vindictive treatment of British subjects for an unproved offence.

I am, &c., W. E. Goschen, Esq.

SALISBURY,

No. 241.The Marquess of Salisbury to Sir G. Petre. SIR,

Foreign Office, June 22, 1891. I transmit herewith copy of a despatch from the High Commissioner for South Africa respecting the case of the Countess of Carnarvon.

I am, &c., Sir G. Petre.

SALISBURY.

(Inclosure 1. Governor Sir H. Loch to Vice-Consul

Smith. De la Cour. (Telegraphic.)

Cape Town, May 22, 1891. IF Countess of Carnarvon is released at once, British South Africa Company bind themselves to abide by any decision that may be arranged by the London and Lisbon Cabinets with reference to the whole transaction, and to pay whatever amount may be decided on by the two Governments.

(Inclosure 2.)-Vice-Consul Smith-De la Cour to Governor Sir H.

Loch.

(Telegraphic.)

Lourenço Marques, May 23, 1891. “ COUNTESS OF CARNARVON” banded over to me to-day.

No. 244.The Marquess of Salisbury to Sir G. Petre. SIR,

Foreign Office, June 23, 1891. I HAVE pleasure in expressing to you my approval of your exertions in connection with African affairs, and of the tact and conciliatory spirit which you have shown during the long and difficult negotiations wbich have resulted in the conclusion of the recent Convention with Portugal.

&c., Sir G. Petre.

SALISBURY.

I am,

PORTUGUESE DECREE, making Alterations in certain

Customs Duties in the Province of Mozambique.-Lisbon, January 29, 1891.

(Translation.)

WHEREAS it has been represented to me by the GovernorGeneral of the Province of Mozambique that it is imperative that certain customs duties in force in the Custom-houses at Lourenço Marques and Inhambane should be increased, while others should be

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