I am at the same time to call your attention to the wording of ection 2 of Article IV of the Final Act, which provides that the Commission shall be assisted by an officer, to be styled "Natives' Advocate."

Lord Salisbury does not desire to express any conclusive view pon the subject until he shall have had an opportunity of conidering your observations upon it; but his Lordship is at present isposed to think that the general intention of the Act was that he "Natives' Advocate" should act as standing Counsel to the atives, and as a sort of Assessor to the Commissioners on quesions of the native language, learning, and customs, much in the ame way that expert Assessors assist other Tribunals in whose inal decisions they have no direct voice.

3. M. Haggard, Esq.

I am, &c.,

T. H. SANDERSON.

SIR,

No. 198.- Foreign Office to Chief Justice Cedercrantz.

Foreign Office, April 13, 1892. I AM directed by the Marquess of Salisbury to acknowledge the receipt of your letter of the 2nd ultimo, explaining the reasons for your absence from Samoa during the months of September and October last. I am, &c.,

C. Cedercrantz, Esq.

T. H. SANDERSON.

SIR,

No. 200.-The Marquess of Salisbury to Sir E. Malet.

Foreign Office, April 20, 1892. WITH regard to the currency question in Samoa, I have to state to your Excellency that I have been informed by the German Embassy in London that the United States' Government have not, as was previously supposed, absolutely fixed the rate of exchange for 20 German marks at 4 dol. 76 c., but have merely concurred in the opinion that the 20-mark gold-piece should be taken in exchange at that rate.

The United States' Consul at Apia has been instructed in this am, &c.,

sense.

Sir E. Malet.

I

SALISBURY.

No. 202.-Consul Cusack-Smith to the Marquess of Salisbury.(Received April 28.)

MY LORD,

Samoa, March 30, 189.. WITH reference to your Lordship's despatch of the 8th December, 1891, instructing me to act with my German colleague in urging the Samoan Government to adopt the suggestions for the settlement the currency question which were made by the Municipal Council of Apia on the 3rd June and 24th July, 1891, I have now the honour to report that owing to the United States' Government not having sent similar instructions to the American Consul, my Germa colleague and I have not been able to carry out our instruction: hitherto in this matter, beyond communicating them to the Muncipal President.

The American Consul has informed us that the views of his Government do not coincide with those expressed on the currency question by the Governments of Her Majesty and of Germany.

The inclosed Resolution was passed by the Municipal Council on the 17th June; and as it is practically identical with the Resolution referred to in your Lordship's instructions of the 8th December, 1891, I was prepared to accept it.

However, my American colleague would not consent, and so we unanimously decided to refer the Resolution to our respective Governments for instructions.

The Marquess of Salisbury.

I have, &c.,

T. B. CUSACK-SMITH.

(Inclosure.)—Extract from the " Samoa Times" of March 19, 1892.

Extract from Report of Proceedings of the Municipal Council of Apia, June 17, 1891.

THE President produced a paper, signed by three members of the Council, asking him to place on the notice paper of to-day a subject relating to the currency, which he had done. The sugges tions in the document were that the English sovereign and tɔ^ 20-mark gold piece be accepted as equal to the 5-dollar United States' gold piece, and that the English silver be accepted at the rate of 18. English to 25 cents United States' currency, and that after the 15th May next Chilean silver be not taken in the Customs at the rate of 1 dollar Chile to 75 cents United States' currency. The President said he approved of the suggestion. It was the same as he suggested to the King to regulate the Samoan Govern ment currency, and if the Consular Board approved of the Resolu tion, which he had no doubt it would, he would adopt the same as Samoan Government currency.

The Resolution to change the currency in accordance with the suggestion was put to the meeting, and carried unanimously. Mr. Moors did not vote.

No. 203.-Baron Senfft von Pilsach to the Marquess of Salisbury.— (Received April 28.)

MY LORD,

Apia, March 30, 1892. On the 28th instant I had the honour to forward the following cablegram to the Foreign Offices at London, Berlin, and Washington:

"I withdraw my Memoir dated the 29th February. Supreme Court has decided that, under the Berlin Treaty, the customs duties belong to the Government.-SENFFT."

I beg leave to inclose copy of that decision, showing that I have been misled through the wording of the respective provisions of the General Act of Berlin. Now it is no more the Government, but the Municipal Administration of Apia that an increase of revenue is required for. I suppose that suggestions for such purpose will be submitted to the Governments of the Treaty Powers at an early date. I have, &c.,

The Marquess of Salisbury.

FREIHERR SENFFT VON PILSACH.

(Inclosure.)

IN THE SUPREME COURT OF SAMOA.

In the matter of an application of the President of the Municipal Council of Apia, Freiherr Senfft von Pilsach, for decision: “As to whether, under the terms of the Berlin General Act, the export and import duties provided therein should be for the use of the Government, or should be held for the use of the Municipal Council of Apia."

On the 28th day of March, 1892.

WITH regard to the customs revenues in general, the nature of the case requires them to be used for the expenses of the general administration and government of the country in which they are levied, since that kind of revenue, although in the first hand paid by the importer, ultimately operates as a charge upon the whole national wealth of the country, I am not aware of any instance where the bulk of import and export duties of a country has been apportioned to a local Municipal Administration. Any arrange

ment to that effect must certainly be so expressed as to leave t doubt as to its intention.

The system of levying and collecting revenue by way of customs has been introduced into this country by the Berlin General Act of the 14th June, 1889. The stipulations relative to import and export duties now in force in Samoa are contained in Article VI of the sal Treaty.

Section 2 of the said Article provides that, to enable the Samoa Government to obtain the necessary revenue for the maintenance of government and good order in the islands, there may be levied certain duties, taxes, and charges which are in the same section arranged under five divisions, viz. :—

(a.) Import duties.

(b.) Export duties.

:

(c.) Taxes to be annually levied.

(d.) Occasional taxes.

(e.) Licence taxes.

Section 3 of the same Article provides :

"Of the revenues paid into the Treasury, the proceeds of the Samoan capitation tax, of the licence taxes paid by native Samoans, and of all other taxes which may be collected without the Municipal District, shall be for the use and paid out upon the order of the Samoan Government. The proceeds of the other taxes, which are collected in the Municipal District exclusively, shall be held for the use and paid out upon the order of the Municipal Council to meet the expenses of the Municipal Administration, as provided by this Act."

I understand that the interpretation hitherto followed, as mentioned in the application, and to test the correctness of which this question is now submitted to me for decision, has arisen from a general opinion that section 3 purports to comprise all kinds of revenue, and that, consequently, customs duties as collected within the Municipality-the port of Apia being the port of entry for all dutiable goods arriving in the Samoan Islands-should be held for the use of the Municipal Council of Apia. But it appears to me that neither the intention of the Conference, as expressed in the Protocols, nor the wording of the General Act, supports such an interpretation.

The first draft Budget submitted to the Conference on Samoan affairs held at Washington, 1887, contains an estimate of the different sources of revenue that could be raised for the Government of Samoa by taxation. There is no doubt that that draft Budget has been the basis of the calculations of the Berlin Conference respecting taxation and revenue in Samoa, and therefore inferences of considerable weight may be drawn from the said estimate, with a

view to a right understanding of the provisions in question finally adopted.

According to the above-mentioned estimate, showing a total less than 90,000 dollars for the use of the whole kingdom, the taxes corresponding to those enumerated under (c), (d), and (e) of section 2, Article VI, of the Berlin General Act, and which, under section 3, are to be held for the use of the Municipal Council of Apia, were calculated to amount to more than 12,000 dollars, and pilot dues and quarantine dues, as therein estimated, would give an additional sum of above 3,000 dollars. These sums seem to

me to afford a fair and reasonable portion for the use of the Municipality of Apia, even taking into consideration the first charge created by section 5, Article V.

The revenues of import and export duties as estimated in the above-mentioned draft exceeded 20,000 dollars, of which amount the ad valorem duty, therein kept down to 1 per cent., was calculated to exceed 5,000 dollars.

It cannot be presumed that the Berlin Conference, while leaving Samoa the character of a free-trade country, and limiting the prerogative of the Samoan Government of imposing import and export duties, should have intended the revenues accruing under such duties for the use of the Municipal Administration of Apia. This would be giving the whole advantage of the comparatively small duties allowed to be levied by the Samoan Government upon foreign goods, wares, and merchandize to the administration of a Municipality of foreign residents, which in fact would have been tantamount to subjecting all the outlying districts of Samoa to taxation for the benefit of this Municipality.

It ought at least to be expected that the Plenipotentiaries having at the time determined to continue a certain Municipal Administration for the town and district of Apia, should, in the course of their considerations and discussions of import and export duties, have let fall a word tending to explain that that vast portion of Samoan revenue should be held for the use of the Municipal Administration, if such had been their intention; still there is no trace of such word in the Protocols. This is the more striking as the ad valorem duty was raised to 2 per cent., and suggested to be raised to a still higher figure; surely not for the exclusive benefit of the Municipality, for the administration of which it must be considered to have been more than amply provided had the customs duties, even with an ad valorem duty of only 1 per cent., been available for this purpose, even setting aside all taxes stipulated in (c), (d), and (e) of section 2.

For a right interpretation of section 3, Article VI, it should be borne in mind that the Municipal Administration of the district