were not approached by the Boers with the object of misleading, of distorting the real question at issue, of disparaging the power of England, and of courting them to the Republican side by means of threats and seductive promises. I could hold no public meeting without scores of native spies sent by the Boers being present to make mischief; every effort on our part to check border traffic and avoid complications was undermined by the Free Staters encouraging the natives to defy our orders; tokens were sent to the chiefs which would pass their messengers freely into Boer camps; and, finally, Republican proclamations, of which I attach a sample, with garbled stories of British reverses printed in Sesuto, were circulated by authority of President Steyn and disseminated discreetly in this territory. Both the Paramount Chief and Jonathan Molapo confided to me that they had received from Free State officials messages in the name of the President to the effect that the Basuto chiefs must quickly choose their side; delay would be disastrous; if they took the English side it would be fatal to them.

It would be idle to doubt that the mass of perverted intelligence and intrigue held influence upon the minds of the natives, who were at the same time not altogether proof against the alluring enjoyment of seeing the European races at each other's throats. The black populations, though fortunately lacking in power of combination, are capable of taking a shrewd and comprehensive view of affairs relating to themselves, and, whilst thinking slowly, hold a good deal of unseen communion with each other. It is probable that the Basuto, who are the only unbroken tribe, were sounded by disaffected clans for a lead, which, if given, might have clouded South Africa with a black terror and tended to deflect the course of the war between the whites. In this contingency may be read a meaning into President Kruger's celebrated expression about the "staggering of humanity."

In my opinion nothing contributed more to steady the natives than the conflicting accounts of the fighting and the contradictory features that were manifest. The Boer reports overreached themselves by exaggeration and untruth. On the other hand, the early series of British reverses were conspicuous, whilst thousands of soldiers were seen and known to have been marched as prisoners to Pretoria. counteract this again there was the patent fact, vouched for by persons of undoubted veracity, that each day brought its stream of troops to the shores of the Cape. At last the Basuto began to discredit all reports and became bewildered by the magnitude and varying conditions of the

war.

To

The policy to be observed in Basutoland, as indicated to me by Your Excellency, was clearly enunciated and consistently

adhered to. Happily for us, my urgent appeal for leave to erect a telegraph line through the territory met with instant approval. The material for its construction had barely scraped over the border before the war broke out. It was rapidly put up, and through its agency, together with the addition of those most useful instruments called Phonopores, I was able to hold hourly conversation with the District Magistrates and they with each other. We were then in a position to deal promptly with all momentous questions as they arose and in daily converse to grapple collectively with difficulties and problems in a manner that no amount of letter writing and horse expresses could ever have accomplished.

The High Commissioner's instructions to me were:

That the chiefs be informed that this was a white man's war in which natives were not to take part;

That if Basutoland were invaded by the Boers the natives were entitled to defend themselves and hold the country for the Queen;

That the border was not to be violated by the Basuto.

Tracing the attitude and characteristics of certain chiefs in their relation to the struggle, Sir Godfrey Lagden shows that on more than one occasion the situation was one of much delicacy and uncertainty. Some of the chiefs almost succumbed to the wiles of the enemy. But the Paramount stood firm :

Of the Paramount Chief I can only speak as of a man who had to face a trying ordeal and braced himself up to endure it. He was threatened and cajoled by Boer emissaries, was tempted by his own people to throw off the yoke of Government, and generally taunted by all those who saw a favourable opportunity for gaining points out of the white man's struggle. But in word and deed he never stirred from his allegiance to the Queen, deciding to stand or fall by his choice. Yielding more to guidance than to pressure he lent himself to stern and loyal duty, cheerfully accepting all orders necessary to the governing policy and religiously carrying them out. He made use of the occasion when much latitude was allowed to him to gain certain tribal advantages for the benefit of his immediate family. But they were small human errors compared with the service he rendered to the Queen by obedience and sympathy. This sympathy was manifested in many ways. As instances, it may be mentioned that several thousand labourers were required and provided rapidly for the military authorities in repairing broken railways. Though the possession of horses by the individual is a feudal condition imposed by the chiefs

for national defence, no bar was practically placed upon free sale for Imperial purposes, and it is probable that not much less than ten thousand remounts went to the army.

When Wepener was besieged and its communications severed, our roads were requisitioned for carriage of Imperial supplies and munitions. There was not wanting at that time those who sedulously revived a previous canard that soldiers were being introduced to fight the Basuto. Nevertheless, a stream of military waggons and ambulances took their unmolested course, being piloted and helped by messengers appointed by the Paramount Chief with that object.

To sum up the general attitude of the Basuto, I may venture the remark that, though loyalty per se is a magnificent virtue, it is usually rendered by untutored people to those who have the power to coerce and enforce it. The incidence of events in South Africa for many years had generated in the native mind a great question as to which Cæsar they should render tribute. This thought was paramount throughout a considerable period of the war, and so long as the success of British arms was in doubt the natives as a mass were alternately ready to be controlled or to jib according to the turn of events. For this fluctuation they cannot be altogether blamed. For their wise comprehension in being finally on the winning side without having compromised themselves they may be praised to the

full.

of

Trade has increased (amounting in the total to £250,000), the revenue has been augmented, and has considerably exceeded the amount which was estimated; the value of imports has increased 50 per cent., exports have been doubled, and the production of coffee is three times what it was last year. Health of Europeans has been fair, malarial fevers having been, as usual, the chief complaint. A satisfactory advance since my last report has been the development of new exports, namely, tobacco-the cultivation which, although as yet small, has been extended-and chillies, which appear likely to become a staple export. Additions have been made to the fleet of transport steamers on the Zambesi and Shire Rivers. The new Government steamer Guendolen, on Lake Nyassa, 350 tons displacement, has been constantly running during the year, and has done good service. She has proved to be a comfortable and useful vessel; the electric light with which she was fitted has not been found to be a great success in practice, as, the engine being worked from the

main boilers, the light can only be used when the vessel is steaming. The amount of money received in hut taxes shows an increase over the amount realised last year. From all districts it is reported that this tax was being paid cheerfully; in fact it has been nowhere pressed, but has been quietly extended. The year has been a peaceful one, no troubles having taken place necessitating the despatch of any expeditions within the limits of the protectorate. In July and August a large Protectorate force combined with the Portuguese expedition against the Yao chief, Mataka (whose headquarters are situated east of the Protectorate), and rendered services for which the thanks of the Portuguese Government have been given. In September, owing to slight disturbances in the British South Africa Chartered Company's territory, the Protectorate was called upon to send a force to Lake Mweru to deal with the chief, Kazembe. The necessary operations were satisfactorily carried out, and a distance of 1,800 miles travelled by the force within two and a-half months, 800 miles being by steamer.

The

Telegraphs.-The African Transcontinental Telegraph Company has steadily extended its line to the north; it is now in course of construction up the east side of Tanganyika. The Company has also run a branch line from Lake Nyassa to Fort Jameson, the present headquarters of the Chartered Company in NorthEastern Rhodesia. This branch was completed in October, 1899, and has been satisfactorily working since then. company continues to employ native operators. New roads have been opened in various directions. One from Domira Bay through the new Protectorate station, Dowa, and on to Fort Jameson, will give ready access from Lake Nyassa to the Chartered Company's headquarters, and will constitute an alternative and rather shorter route than that from Kota-Kota. The question of a Shire Highland trunk road, commencing at Chiromo and running through the Cholo district to Blantyre, is now under consideration. Such a road would be used entirely for wheeled traffic, and not by carriers. So long as the Shire River keeps up its present high level, it is improbable that the proposed road would be much used; but the experience gained some years ago of really bad seasons, when navigation beyond Chiromo was rendered quite impossible, suggests the desirability of taking this route in hand in good time.

The resident European population is returned as 394.

East Africa Protectorate [2536.]—Mr. Vice-Consul Marsden's Report for the year ending March 31st, 1900, shows that the revenue of the Protectorate was Rs. 482,000.

Although not large, it represents an increase of 7 per cent., and marks the progress which the country is making, being the highest amount derived from Customs duties hitherto recorded. At the official rate of exchange, i.e., 1s. 3d., the sterling equivalent is £30,650, but at the rate of exchange which has been current during the year the amount is £32,000. Importations on behalf of the Administration, and for the construction and maintenance of the Uganda Railway, which have been on a larger scale than hitherto, are not treated of in these returns. The trade of Mombasa, the principal port in the territory and the terminus of the Uganda Railway, now under construction, has been stationary as regards imports, but has doubled in volume in exports, due in a large measure to the increase in shipments in ivory and hides, the trade in which has been materially assisted by railway transport as against the old porterage system. Lamu, the second largest town in the territory, has also benefited by the increase of ivory shipments, and there has been a corresponding increase in importations of rice. The country, as a whole, is slowly recovering from the severe distress into which it was plunged by the drought two years ago, which brought in its train famine and small-pox. The export of rubber has increased by 40 per cent., and is capable of unlimited extension.

Egypt and the Soudan [Cd. 95].-The Report of Viscount Cromer, Agent and Consul-General, on the Finances, Administrations, and condition of Egypt and the Soudan in 1899 shows that the revenue of Egypt (Soudan affairs are treated separately) was £E.11,415,000, and expenditure £E.11,013,000-a surplus of £E.402,000. The revenue reached the highest figure yet recorded since the British occupation. Included in the expenditure is a sum of £E.1,024,000 for conversion of the Debt, economies, and payments to the general reserve fund. Lord Cromer says:

Many instances may be cited of Governments whose finances are, or have been, in a prosperous, and others of Governments whose finances are, or have been, in an embarrassed, condition. Egypt, so far as I know, is an unique example of a country the financial position of which is extremely prosperous, but which is debarred by International Agreement from benefiting to the full extent possible from its own prosperity. Year by year, as the large sums now accumulating in the hands of the Commissioners of the

Debt grow in amount, the anomalies-to use no stronger term-of the present system become more and more striking, and more and more injurious to those in whose interests it was, in the first instance, presumably created. It is difficult to believe that such a system will be allowed to continue for an indefinite period.

The following is a Summary of the Financial Situation :

The main facts of the financial situation may be thus summarised:

1. The accounts for 1899, after paying £E.1,024,000 to the "Caisse de la Dette" on account of the Conversion Economies and General Reserve Fund, and after meeting an expenditure, civil and military, for the Soudan, amounting to £E.422,000, show a surplus of £E.402,000.

2. At the commencement of the current year, £E.3,523,000 stood to the credit of the General Reserve Fund, of which £E.2,182,000 was pledged to expenditure of various descriptions, leaving an unpledged balance of £E.1,341,000.

3. The accumulated Conversion Economies amount to £E.3,565,000.

4. The Special Reserve Fund, after deducting £E.57,000 for expenditure authorised, but not yet incurred, shows a credit balance of £E.243,000.

5. Deducting a sum of £7,494,000, which is held by the Commissioners of the Public Debt, the outstanding capital of the Funded Debt of Egypt amounts to £E.95,555,000. There is no floating debt.

6. After making allowance to the extent of £E.350,000 for loss of revenue by reason of the low Nile, the estimates of revenue and expenditure for 1900 balance, the figures on either side of the account being £E.10,380,000. The facts and figures stated above are sufficient to show that the Egyptian Treasury is in a strong enough position to meet any further temporary loss which may, with any degree of probability, arise from the

same cause.

In the course of an elaborate detailed Report on the various subjects arising out of the administration of the country Lord Cromer deals with the question of Slavery:

Captain McMurdo, who directs the Slavery Department, writes to me :

"I am pleased to be able to report satisfactorily on the work done by the Slavery Department in bringing slavedealers and kidnappers to justice in 1899. There have been more prosecutions and convictions in that year than there have been for the last five years. This is greatly due to the vigilance exercised by provincial officials and private individuals, who have many times brought to the notice of this Department cases which

which would be unquestionably valid in law, in respect to any proposal which they might submit to the "Caisse de la Dette." It is obviously far more easy to attain this end if a majority decision is legalised than would have been the case if, as heretofore, doubts were allowed to exist as to the extent to which any one or more members of the Caisse might exercise a liberum veto on any proposal laid before the whole body of Commissioners.

As regards the exception made in the case of military expenditure, it is to be observed that the settlement now made does not in any way impugn the grounds on which the judgment of the Court of Appeal was based. Neither does it connote assent to those grounds. It merely recognises the fact, of which there can be no doubt whatever, that the decision of the Court of Appeal was legally valid, and therefore has to be respected.

For the rest, all I need say is, that for various reasons the reserve made as regards military expenditure is not likely to cause much practical inconvenience in the future.

After setting forth the effect of the changes, Lord Cromer makes some remarks of a general character:

Now that the recent negotiations have been brought to a close, it is greatly to be hoped that, for some time to come, no occasion will arise for discussing any organic changes in the constitution or jurisdiction of the Mixed Tribunals. The Judges will thus be able to perform their judicial functions free from apprehension that the existence of the institution to which they belong is threatened, whilst the public will gain that confidence in the stability of the Law Courts which is essential to the orderly conduct of civil and commercial affairs. I see no reason why irritating discussions of the nature to which I have alluded above should not be avoided, but the risk of raising them will be greatly enhanced if two conditions are not fulfilled. The first of these conditions is that the Judges should adhere strictly, not merely to the text, but to the spirit of the law which regulates their attributes. So long ago as 1880, Baron de Ring, who was then French ConsulGeneral in Egypt, said: "On ne saurait, je crois, nier que la Cour se soit montrée animée d'un esprit trop envahissant," and it can scarcely be doubted that the tendency to enlarge the sphere of action of the Mixed Courts has been steadily on the increase since these words spoken. It is natural that the Egyptian Government should resent encroachments of this nature. I trust that I shall not be thought wanting in respect to the Judges in alluding briefly and in no unfriendly spirit to this point.

were

The second condition is that everything that is possible should be done to avoid political law-suits. Looking to the constitution of the Courts, and to the somewhat heated political atmosphere of Egypt, it is obvious that the Mixed Tribunals are very far from being a suitable body to decide a question such as that which was brought before them in 1896. These political law-suits place the Judges themselves in a very difficult and invidious position. They are asked to decide questions which are wholly foreign to the issues usually submitted to a Court of Justice. Whatever their decisions may be, they can scarcely fail to excite criticism of a nature calculated to impair that authority which the most important Tribunals of the country should possess.

The conclusions Lord Cromer draws from the facts are:

On the whole, it may be said that the Egyptian history of the past year was marked by some features of a specially favourable nature.

In the first place, the last vestige of Dervish power in the Soudan disappeared. Thus the dead-weight which has for so long oppressed the Egyptian situation was removed.

In the second place, the skill and energy of the officials of the Sanitary Department averted the danger from plague with which the country was at one time threatened.

In the third place and I dwell on this point with special pleasure-during no previous period of recent years has the cordial co-operation of the Egyptian elements of the Administration, as represented by His Highness the Khedive and' his Ministers, and the European elements, as represented mainly by the superior British officials attached to the various Departments of the State, been more marked.

It is the intention of the Khedive to visit England in the course of next summer. I feel sure that His Highness will receive a welcome which will afford to him convincing proof that all classes of the British public are inspired by feelings of the utmost good-will towards his country and his dynasty.

The unfavourable side of the Egyptian situation for the moment is that the Nile flood, on which the prosperity of the country so largely depends, has failed beyond all former_precedent. For the present, however, I see no reason for supposing that the probable consequences of this failure need be characterised in any stronger terms than those of temporary inconvenience.

The Soudan.-Sir Reginald Wingate, who succeeded Lord Kitchener as GovernorGeneral of the Soudan on the departure of the latter for South Africa, found his hands