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214 STATE PAPEES— TEANSVAAL. [1899.

Kruger apparently more hostile to the proposal for a grant of a munici- pality to Johannesburg and the goldfields than to that for an extension of the franchise to the Outlanders. The only argument which he has used to their knowledge is a refusal to create what he calls an imperium in imperio. But this objection will not bear examination. The universal experience of English-speaking communities shows that the grant of municipal privileges to the inhabitants of great centres of population has no tendency to create a rival power to the central authority of the State.

It is needless now to discuss in detail the proposals made by the President at the conference. They are fully set forth and their defects are demonstrated in your despatch of June 14 and its enclosures.

Since the termination of the conference new proposals were laid before the Volksraad in a draft law which was officially communicated to the British Agent on July 12. In two important respects this draft was an advance on the President's earlier proposals, but after the most careful examination of its very complicated provisions her Majesty's Government reluctantly came to the conclusion that they could not regard the new scheme as affording any basis for a settlement of the question, or as one that would give to the Outlanders an immediate and reasonable share of political representation.

It is, however, a matter of satisfaction to her Majesty's Government to learn, from your telegram of July 19, that the Government of the South African Republic have still further amended their proposals, and that the Volksraad has now agreed to a measure intended to give the franchise immediately to those who have been resident in the country for seven years, as well as to those who may in future complete this period of residence. This proposal is an advance on previous con- cessions, and leaves only a difference of two years between yourself and President Kruger so far as the franchise is concerned.

It is obvious, however, that, as you pointed out at the Conference, no practical result could follow from any franchise, however liberal, unless the conditions attached to its acceptance and exercise are reasonable, and unless it is accompanied by the addition of such a number of representatives to the constituencies chiefly composed of Outlanders as will enable the newly-enfranchised burghers to obtain a fair share of representation in the First Volksraad.

The object of her Majesty's Government, which they are led to believe is fully appreciated by the President, has been to secure for the Outlanders the immediate enjoyment of such a share of political power as will enable them by the election of members from their own body to exercise a real influence on legislation and administration, without, however, giving them the proportion of representation to which their numbers, taken alone, might entitle them, and which the President objected would enable them immediately to swamp the influence of the old burghers.

They observe, however, that in the new draft law, as in the proposals which it has superseded, there are still a number of conditions which might be so interpreted as to preclude those who would otherwise be qualified from acquiring the franchise, and might therefore be used