CAPE COLONY AND SOUTH AFRICA. 



117 



and therefore the Volksraad allowed two and a 

 half years more in which to extend the works 

 so as to supply the whole demand of the coun- 

 try. A technical commission appointed by the 

 Government of the South African Republic came 

 to the same conclusions as the commission of 

 the Volksraad. The materials for the manufac- 

 ture of dynamite could not be produced on a 

 commercial scale, and the profit of 100 per cent, 

 or more over the market price went to enrich 

 individuals without bringing any benefit to the 

 state, Mr. Chamberlain in his letter admitted 

 that a monopoly in favor of the state, even if 

 carried out by a concessionaire, would not be 

 inconsistent with the London convention if in- 

 tended in good faith to benefit the state gener- 

 ally, and not simply to favor the concessionaire. 

 The Volksraad by resolution had left it discre- 

 tionary with the Executive to proceed to the 

 cancellation of the contract with the company 

 if the latter had failed to fulfill its obligations, 

 or to take steps to supply the mines with cheaper 

 dynamite by allowing importations subject to 

 the payment of ordinary duties or otherwise. 

 The Government of the South African Republic 

 was advised by the State Attorney that it could 

 not legally annul the concession. Instead of 

 attempting to do so, the Government of the 

 South African Republic proposed to the Volks- 

 raad to extend the concession another fifteen 

 years, subject to a further reduction of 5s. per 

 case in the price of dynamite. Against such ex- 

 tension the British Government protested. F. 

 W. Reitz, the State Secretary of the South Afri- 

 can Republic, in replying on March 9 to the let- 

 ter of Mr. Chamberlain, said that the monopoly 

 did not deprive foreigners residing in the Trans- 

 vaal of the same trading rights and obligations 

 as burghers, which was all that the London con- 

 vention secured to them. He claimed for the 

 republic the exclusive right to fix on what con- 

 ditions the manufacture of explosives should 

 take place; refused to admit that it depends on 

 whether the concession is intended in good faith 

 to benefit the state generally, though if it did 

 the republic itself must judge what is best for 

 it, and must take not only financial considera- 

 tions into account, but all the circumstances that 

 are of interest to the country; did not admit, 

 however, that the monopoly was not financially 

 profitable to the state, equally with the con- 

 tractor, nor that the present to the mining in- 

 dustry of 5s. a case made it less a state monop- 

 oly; declared that the abrogation of the contract 

 would be a breach of established rights, and 

 therefore prejudicial to the good name and wel- 

 fare of the republic; and on these grounds con- 

 sidered that the British Government was not 

 justified in protesting. Previous to the sending 

 of this dispatch Mr. Lippert, in behalf of the 

 Government of the South African Republic, sub- 

 mitted to leading representatives of the mining 

 industry a programme for the settlement of the 

 gravest differences between the Government on 

 the one part and the whole Uitlander population 

 and the mining industry on the other. He ob- 

 tained, on Feb. 27, the consent of E. Birkenruth, 

 A. Brakan, and G. Rouliot, representing the 

 Chamber of Mines, to a conference, and President 

 Kriiger, Dr. Leyds, the State Attorney, and the 

 State Secretary consented to open negotiations 

 on the suggested basis. London capitalists in- 

 terested in the mines gave their approval in ad- 

 vance to any arrangement that would produce 

 harmony and secure administrative and financial 

 reform. The mining representatives did not con- 

 sider themselves qualified to speak for the gen- 



eral body of the Uitlanders, and, since the 

 programme was to be adopted or rejected as a 

 whole, they declined to commit themselves until 

 these had given an expression of opinion.' The 

 Government offered to throw open to the mining 

 industry all its reserved mineral territory, the 

 bewaarplaatseri, water rights, and machine stands 

 at a valuation to be fixed by competent en- 

 gineers, giving to surface holders the preferential 

 right to acquire the undermining rights; also to 

 appoint a state financier and auditor acceptable 

 to the mining community, who should have a 

 seat in the Executive Council and approve any 

 new scheme of taxation; to obtain a reduction 

 in the price of dynamite to 3 10s.; and to grant 

 full burgher rights, excepting the right to vote 

 for President, to Uitlanders seven years from the 

 date of their becoming qualified to vote for the 

 Second Raad and taking the oath of allegiance. 

 The Government of the South African Republic 

 asked in return for these concessions that the 



FALLS IN ORANGE RIVER. 



hostile press agitation should cease and the po- 

 litical organization having for its object the stir- 

 ring up of strife and promoting of dissension 

 between the nationalities should be discouraged 

 and repudiated; also, that the Uitlanders should 

 support the Government in seeking the sanction 

 of the British Government for restrictive meas- 

 ures designed to control the immigration of In- 

 dian coolies, Cape boys, and British subjects 

 belonging to other colored races. The representa- 

 tives of the business houses declined to accept 

 the proposed settlement of the dynamite question 

 except on condition that the Government should 

 receive again its royalty of 5s. and that the con- 

 cession should not be extended, but at the end 

 of the fifteen years the factory should be turned 

 over to the Government at a valuation not in- 

 cluding good will or future profits. With regard 



