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[Batoum.]

No. 615.-RUSSIAN UKASE, closing the Free Port of Batoum. 5th July, 1886.

(Translation.)

ON the union of the Batoum district with the Empire (No. 530), the town of Batoum was given the rights of a free port, in order to form in the south-eastern part of the Black Sea a depôt for foreign merchandize going to Persia and the Transcaucasian region, and to develop commercial and industrial activity in the Caucasus.

The circumstances under which this measure was taken have greatly changed. With the abolition of the free transit of foreign merchandize through the Caucasus, Batoum lost its importance as the chief mart on the transit route, while the existence of a Customs cordon round the town has proved exceedingly oppressive to the inhabitants of the Batoum district. Cut off, in an artificial manner, from their natural market, in which for ages they used to sell their produce, and to purchase articles of vital necessity, the inhabitants have continually been petitioning the Government for the removal of this abnormal state of things, which is inconsistent with the welfare of the district. Similar petitions have also been sent by the petroleum producers of Baku, whose interests have suffered by the competition of manufactories established within the limits of the free port.

Since we deem it expedient, in consideration of these petitions, now to remove the effect of the Ordinance of December 16, 1880, respecting the free port of Batoum, we order as follows::

§ 1. The existing free port in the town of Batoum will be closed from July 5 of this year.

§ 2. Foreign merchandize which may be within the prescribed limits of the free port and in the harbour of Batoum at this date will not be subject to the payment of Customs duties.

§ 3. Local merchants who have in their possession foreign goods, subject to the general orders as to stamping, must present

*See Treaty of Berlin, 13th July, 1878 (No. 530) Art. LIX.

[Batoum.]

the same to the Customs authorities before August 5 of this year, for the purpose of affixing the regulation stamps, seals, and bandrols.

§ 4. Goods not so presented for stamping before August 5 will be declared contraband.

§ 5. The Customs control hitherto exercised on the territorial limits of the free port will cease on the expiration of the period mentioned in § III of the present Ukase.

§ 6. It shall be competent for the Director of the Ministry of Finance, during the three months immediately succeeding the closing of the free port, to exempt from Customs duties foreign goods imported into Batoum, and to confer other immunities, in cases where, in his opinion, sufficient grounds exist.

ALEXANDER.

On board the yacht Zarevna, in the Archipelago of Finland, June 23 (July 5), 1886.

[The new port was officially declared to be opened, 10th December, 1889.]

22nd

[Batoum.]

No. 616.-BRITISH PROTEST against the Notification of the Russian Government of its intention to terminate the Arrangement, embodied in Art. LIX of the Treaty of Berlin (No. 530), constituting Batoum a Free Port. 13th July, 1886.

Sir,

The Earl of Rosebery to Sir R. Morier.

Foreign Office, July 13, 1886. ON the 3rd instant the Russian Ambassador read to me a Circular despatch from his Government, announcing the determination of the Emperor of Russia to abrogate the clause of the LIXth Article of the Treaty of Berlin (No. 530) which declares His Majesty's intention to constitute Batoum a free port. It is argued in the Circular and the Memorandum annexed to it that this step is no infraction of the Treaty, as the Article is not an ordinary one, but rests on a spontaneous declaration of the late Emperor.

The Circular further explains that the inconvenience arising from the status of Batoum under the Treaty renders an alteration of that status necessary.

And lastly, it announces that as Batoum would remain essentially a commercial port, the situation would not be changed.

As regards the last point, I need only say that Her Majesty's Government fully appreciate this declaration.

I took the opportunity of at once pointing out to M. de Staal some of the considerations which occurred to me at first sight. These observations I have already recorded in my despatch of the 3rd instant to your Excellency.

But it is necessary, without loss of time, to define the attitude of Her Majesty's Government in face of this proceediug.

In the first place, it must be understood that Her Majesty's Government cannot accept the view that this step on the part of Russia does not constitute an infraction of the Treaty of Berlin, of which, indeed, it obliterates a distinct stipulation. Granting the doctrine which, as far as Her Majesty's Government are aware, is an entirely novel one, that the

[Batoum.]

spontaneous declaration of His Majesty the late Emperor is not to be considered as binding because it was spontaneous, it cannot be denied that its embodiment in the Treaty placed it on the same footing as any other part of that instrument. If this be not so, for what reason was it inserted? Had it merely been desired to place an intention on record, the statements in the Protocol were more than sufficient. But there are further circumstances which are conclusive on this point.

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I have already cited both to your Excellency and M. de Staal the passages from the Protocols of the Congress of Berlin, which show that Prince Bismarck and Count Andrássy on the part of Germany and Austria-Hungary, and Count Schouvaloff on the part of Russia, recognized the action of Russia as constituting" Batoum a free port, not at the will and pleasure of the Russian Government, but as a definitive act, endorsed by Europe, and international in its character, while the British Plenipotentiaries stated that it was the condition on which they assented to the acquisition of Batoum by Russia. The declaration, accepted in this spirit and on this understanding, was embodied in an integral clause of the Treaty. It is, therefore, impossible to contend that this provision stands on a different footing from the other stipulations of that instrument. This being so, the terms of the Protocol of London of the 17th January, 1871 (No. 433), are applicable in all their force. I have already cited to your Excellency, and I need hardly repeat that the Great Powers on that occasion recognized by a solemn act "that it is an essential principle of the law of nations that no Power can liberate itself from the engagements of a Treaty, nor modify the stipulations thereof, unless with the consent of the Contracting Powers by means of an amicable arrangement." That consent Russia does not even scck on the present occasion. But it is scarcely possible that her Government should consider this international act as having become obsolete, for it was appealed to by the Russian Plenipotentiary in the recent Conference at Constantinople. In the seventh sitting of that Conference, on the 25th November last, M. de Nélidoff remarked: "A un point de vue plus général, le maintien du Traité du Berlin était en accord avec les termes du Protocole signé à Londres le 17 Janvier, 1871 (No. 433), Protocole qui établit comme un principe essentiel du droit des gens," &c.

"Ce principe nous paraissait particulièrement applicable à la

[Batoum.]

situation diplomatique produite par les récents engagements, et aucune Puissance n'ayant exprimé l'intention de s'écarter du Traité de Berlin, nous avions des raisons de croire à son maintien intégral."

To these observations the British Plenipotentiary replied: "Le fait de viser dans la Conference l'un des Articles du Traité ne peut conduire à cette conclusion qu'on désire toucher à la validité du Traité lui-même; bien au contraire, le Gouvernement Anglais y tient tout autant que les autres Puissances."

"Aucune modification au texte d'un Article du Traité de Berlin (No. 530) ne peut évidemment être faite que du consentement unanime des Puissances, et c'est justement le terrain sur lequel le Gouvernement Britannique s'est toujours placé, et sur lequel il se maintient aujourd'hui."

Under these circumstances, Her Majesty's Government cannot recognize any amount of commercial inconvenience as furnishing a justification for a peremptory declaration of the Russian Government, on its whole sole authority, that this portion of the Treaty is to be regarded as no longer valid. The question, from this point of view, is one which concerns all the Powers parties to the Declaration of the 17th January, 1871 (No. 433), and to the Treaty of Berlin (No. 530).

Apart from the position of Great Britain as one of those Powers, Her Majesty's Government have little or no material interest in the question. As a matter of commerce, it may be remarked that the trade of France with Batoum is much the most considerable, that of Turkey comes next, and that of Great Britain is relatively small. Nor are there any further interests involved which mainly concern this country. Other Powers are no doubt, directly or indirectly, affected by the alteration of the commercial status of Batoum, but Her Majesty's Government do not feel that this is sensibly the case so far as Great Britain is concerned.

One direct, supreme, and perpetual interest, however, is no doubt at stake in this transaction-that of the binding force and sanctity of international engagements. Great Britain is ready, at all times and in all seasons, to uphold that principle, and she cannot palter with it in the present instance.

Her Majesty's Government cannot, therefore, consent to recognize or associate themselves, in any shape or form, with this proceeding of the Russian Government. They are com

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