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290] FOEEIGN HISTOEY. [1899.

general tariff charges all telegrams received by it for and from German East Africa ; and the company has further declared its willingness to accord, in favour of all telegrams transmitted to or from German East Africa, any reductions of tariff which it may accord to third parties.

7. Detailed provisions have been incorporated in the agree- ment with a view to safeguarding German sovereign rights and the jurisdiction of the Governor of German East Africa with reference to the company and those in its employment. The Governor can at his own discretion grant the employees and workmen of the company a military escort, the expense of which shall be borne by the company in so far as it does not exceed 1,0002.

8. All difference? arising out of the interpretation of the treaty shall be settled by a court of arbitration. In the first instance one of the two arbitrators shall be chosen by each of the two parties. In the case of non-agreement on the part of the arbitrators, a third arbitrator may be appointed by the President of the German Imperial Court of Justice on the application of both the parties.

A special agreement binds the company not to continue its railway to the West Coast of Africa from the territories of Ehodesia or Bechuanaland south of the 14th degree of lati- tude, save from a point on the Anglo-German frontier to be determined by special agreement with the German Govern- ment. Further, the British South Africa Company is bound not to construct a railway north of the 14th degree of latitude from the above-mentioned territories to the West African Coast until a railway line has been constructed south of that degree of latitude through German South- West Africa.

Although England had repeatedly shown her desire to maintain the most friendly relations with Germany, and the Emperor when the Boer war broke out took every opportunity of asserting his neutrality in the conflict, and visited the Queen at Windsor in November, the German press showed a strong bias on the side of the Boers, exaggerating their successes and rejoicing over the English reverses, and publishing disgraceful caricatures of her Majesty.

In June there was an important debate in the Eeichstag on a bill for the prolongation of the provisional extension of the most-favoured-nation treatment to the commerce of the British Empire, with the exception of Canada, pending the conclusion of a new commercial treaty. The Agrarian party advocated reprisals against Great Britain on account of the policy adopted by Canada in establishing an exceptionally favourable tariff for the mother country, and demanded a general increase of the tariff on goods imported from the British Empire.

Count Posadowsky, Secretary of State for the Interior, who spoke on behalf of the Government, warned the extreme pro- tectionists against the danger of the "vigorous policy" they