To the Honourable the State Secretary, Pretoria.

HONOURABLE SIR,- We have the honour to acknowledge the receipt of your communication of the 8th April, 1899.

Certain of our statements being doubted and described as erroneous in your letter, we deem it advisable to go more fully into the facts which have preceded and led to this correspondence.

It may be that communications exchanged through an intermediary have been transmitted in a manner liable to convey a different impression from what was actually meant, and in order to clear any possible misunderstanding, we beg to enclose copies of all doc.u.ments supplied to us by Mr. Lippert, whom we, at all times, considered as your authorized agent.

From these it will be apparent that during the negotiations we acted in perfect good faith, communicating and discussing what we justly considered were the wishes and proposals of the Government, and it will also be clear to you that every one of our statements is based on doc.u.ments which we had every reason to believe were approved of by the Government.

On February 27th Mr. Lippert called together Messrs. E. Birkenruth, A. Brakhan, and G. Rouliot, to whom he stated that a settlement of certain pending questions could probably be arrived at. He said that he had ascertained the views of Dr. Leyds, Messrs. Reitz and s.m.u.ts, who had agreed to a certain programme, and he wanted to know whether we would be willing to open negotiations on that basis, in which case the three officials mentioned would see the State President and ascertain whether he would be prepared to adopt their views.

If the State President's approval could be obtained, Mr. Lippert suggested that a conference should be held to discuss the subjects mentioned in his memorandum.

This memorandum (Annexure 'A'), as explained to us by Mr. Lippert, enumerates under Clauses 1 to 5 inclusive the points which the Government expected us to concede, and the other clauses are what the Government proposed doing in return.

We were then informed that the programme must be considered as a whole, and either adopted or rejected as such, no question being considered separately, and that the matter must be kept absolutely secret.

Upon our statement that we personally would be willing to open negotiations on the basis suggested, Mr. Lippert went to Pretoria and informed the high officials above-named.

On March 1st Mr. Lippert informed us that the State President was viewing the matter favourably, and requested us to acquaint our friends by cable.

Our replies having been communicated to Mr. Lippert, a meeting was arranged on March 9th, as recited in our previous letter, at which, Mr. Lippert informed us, no new subject outside of those mentioned in his memorandum could be discussed.

Messrs. Pistorius and Pierce, being invited by Mr. Lippert to attend the meeting, were each supplied by him with a list of the questions to be discussed, forming part of the proposed settlement (Annexure 'B').

On March 12th Mr. Lippert communicated to us what he termed the definite proposals of the Government of the S.A.R., which were duly cabled to our friends in Europe (a copy of this cable has already been sent to you).

He also read to us the declaration, which he suggested we should sign on behalf of ourselves and our European friends (Annexure 'C').

A speedy reply to our cable was asked for, as Mr. Lippert had informed us that, if any settlement could be arrived at, the agreement had to be submitted to the Honourable the First Volksraad before the closing of the extraordinary session which was drawing near.

We beg to point out to you that by cabling these proposals to Europe, we could not possibly conceive that we were acting under a misconception, as the day on which they were made to us, the 12th of March, being a Sunday, the Telegraph Office was specially kept open for the purpose of dispatching the cables, which were duly received and forwarded upon production of an order from Mr. Lippert.

In our letter of March 17th to his Honour the State President, conveying the nature of our friends' reply, we mentioned the fact that the communication made to us by Mr. Lippert on behalf of the Government had been fully cabled; we stated that our friends no doubt based their suggestion to further discuss the whole of the proposals with Dr. Leyds upon the fact that the Government had stipulated that they should become parties to the proposed settlement.

In your reply of March 18th, no exception is taken to these statements; you tell us, on behalf of his Honour the State President, 'that the exchange of views can best take place direct with the Government, and here, within the Republic,' pointing out the fact 'that the session of the Volksraad was close at hand, and that therefore further delay is undesirable.'

You will thus see that we were perfectly justified in thinking that the communications made to our European friends, embodied the proposals of the Government of the South African Republic, were cabled with the knowledge and approval of the Government, and that we were requested to sign a declaration on behalf of ourselves and our friends, which declaration had to be made public.

Our letter of the 27th March conveyed to you our opinion and that of our friends, upon the subjects comprised in the programme which was submitted to us, and it is unnecessary to go over them in detail again. We beg only to offer a few remarks upon certain points raised in your letter of 8th April:-Bewaarplaatsen: We suggest a basis for the valuation of bewaarplaatsen, machine stands, and water-rights, which in our opinion ought to be adopted, in order to have a uniform and easy method of valuing these places.

Financier: Being fully aware of the complexity of financial problems and questions of taxation in this State, we are anxious that the financier appointed should be of such a standing as to command the confidence of all, so that his recommendations cannot raise any ulterior discussion. For that reason we expressed the opinion that, before making the appointment, the Government should be guided in its choice by someone belonging to a firm of well-known independent standing. We have no desire to see this Government base its future financial policy on any particular line, in the interest of, or directed against, any special section of the people. We only wish to see the financial policy established on sound recognized economic principles, with fair and equitable taxation calculated according to the proper requirements of the State.

Press Agitation-Political Organizations: We have already informed you, that so far as we know, there has been no organized press agitation, and that we should be willing at all times to deprecate the stirring up of strife between nationalities caused by any agency whatsoever. We consider it desirable to see that feeling more general, as we are convinced that exaggerated press campaigns conducted by newspapers generally reported to be influenced by the Government, and tending to create dissension amongst the various cla.s.ses of the community, are calculated to cause an infinite amount of harm to the vested interests of all sections of the population.

Dynamite: In your letter of the 8th April, you appear to have lost sight of the fact that the proposed settlement was submitted to us as a whole. Mr. Lippert made it clear that, in consideration of the Government granting the measures enumerated in his memorandum, it was expected that we should abandon our present contentions, and declare ourselves satisfied with the settlement proposed by the Government. Under ordinary circ.u.mstances this would be far from meeting our desires, but we intimated to you that we should be willing to recommend to the mining industry the adoption of the proposals made to us on this subject, if by so doing we could promote a permanent satisfactory solution of all pending questions.

In conclusion, we beg to refer to the publication of our previous letter to you. It took place here on the 6th inst., in the afternoon; we immediately inst.i.tuted an inquiry, and on the 8th inst., in the morning, we wrote that we were in a position to a.s.sure you that we could in no way be held responsible for the publication. We never for a moment doubted your good faith, nor that of the other gentlemen for whom the letter was meant, but thought that possibly the communication could have been made through one of your subordinates. However, not being certain of the fact, we merely repudiated any responsibility on our part, and regret that you should have publicly laid the blame on our side, without having communicated with us, asking for an explanation, if you had any suspicion.

We beg to a.s.sure you that we are as willing as ever to co-operate with you in arriving at a settlement of all pending differences in order to secure peace and prosperity in this country, and we shall be ready at all times to meet and discuss with you, or any other delegates of the Government, any matter likely to bring about a speedy and permanent solution of all questions, still bearing in mind what we mentioned in our previous correspondence, that we are not qualified to speak on behalf of the whole community.

As you have informed us that you have no objection to it, we shall give a copy of this letter to the press.

We have the honour to be, honourable Sir,

Your obedient servants, G. ROULIOT, JOHN M. PIERCE, A. BRAKHAN, E. BIRKENRUTH.

(Mr. Pistorius, being absent from town, could not sign this letter.)

ANNEXURE 'A'

MR. E. LIPPERT'S MEMORANDUM.

1. Cessation of press agitation here and in Europe.

2. Support on the coolie question.

3. Settlement of the dynamite question.

4. Loan (if required).

5. Severance from the S. A. League.

6. Appointment of State Financier and State Auditor, of European reputation, with a seat and vote on the Executive in all questions of finance.

7. No new taxation of mines until submitted by Minister of Finance.

8. Moderate valuation of bewaarplaatsen.

9. Burgher rights-five years-property test.

ANNEXURE 'B.'

Cessation of press agitation here and in Europe.

Support to the Government in its treatment of the coolie question.

Settlement of the dynamite question.

Deprecate the objects of the S.A. League.

Support the placing of a loan if Government wishes it.

Appointment of a financial adviser to the Government, of European reputation, and of an Auditor, both with seats and votes in the Executive Council on all financial matters. (This has been amended by the Government, so far as the Auditor is concerned, to retain the present Auditor, and to give him, re dismissal, the same status as a Judge, and to make him directly responsible to the Volksraad.)

No fresh taxation to be levied on the mines until the Financial Adviser has laid his proposals before the Government.

Sale of the undermining rights to the holders of surface rights (bewaarplaatsen, &c.), at a moderate valuation.

Extension of the franchise by granting burgher rights after ... years of registration, coupled with a property test.