remarks and comments as appear to be required to explain the several provisions of the treaty.

It contains nine articles :

Article 1 provides for the continuation of the existing friendship between the British and Burmese Governments.

My instructions contained no orders relative to such a provision being made in any treaty or other document which I might make with the Burmese Government. But this article was proposed by the king himself, and as I considered that it merely pledged his Excellency the Viceroy to maintain the same relations which have existed for 10 years with the Burmese Government, provided no provocation was given, I ventured to assent to it. Under instructions from the Most Noble the Marquis of Dalhousie I was formerly empowered to conclude such a treaty, whether the Burmese Government formally ceded Pegu to the British or not; and at the present time, when our rule is firmly established in Pegu, and our prestige extended over the whole country, I considered a formal cession of Pegu as valueless.

Article 2 provides for the protection of Burmese traders, and others who may proceed to British territory to trade.

Article 3 provides for similar protection to British subjects, traders and others, who may proceed to the Burmese territory.

I consider this Article, which was proposed by the Burmese, as being of great value to us. Had I proposed it, I think they would have professed to see great danger to themselves in it. As it stands, the British Government can always require justice to be done to British subjects in Burmah.

Article 4 provides for goods brought by sea to Rangoon being declared there for export by the Irrawaddy to Burmah, or through Burmah to other territories from Burma. Such goods will pay at Rangoon one per cent. on their value, and may be conveyed through the Burmese territory to other countries free of duty. A British custom-house officer may accompany the goods to the Burmese frontier town of Menhla. By the wording of the last sentence, the Burmese may still be at liberty to put an internal or municipal duty on goods sold in their cities. As this question was asked by them, I said we had no wish to interfere with such duties, as I found that, for the present at least, they were not prepared to agree to give up all tax on consumers.

The Burmese Government did not wish the words "Chinese territory to be mentioned; and as this article, in connexion with Article 7, provides for British merchants settling at Baman, or elsewhere, for purchasing Chinese produce, and fully attains the object of opening a way through Burmese territory to China, I did not insist on the words in question being inserted. With regard to the amount of duty on such goods, I finally agreed to one per cent. (instead of oneeighth the regular duty), because a similar provision in the following article simplified the adjustment of duty on goods imported into Burmah from China to be carried to Rangoon. The Burmese in this case, as in every other, looked for some equivalent being granted to them, or being expressed in the treaty, and this was done by making the import duty at Rangoon and at the Chinese frontier one per cent. I trust this will be approved.

Article 5. This article provides for goods imported into Burmah from the Chinese territory for export to Rangoon paying a duty of one per cent. to the Burmese Government, and then passing on. A Burmese custom-house officer may accompany such goods down the Irrawaddy, as far as Thayetmyo, the British frontier station. The last sentence of this article is as follows:-" If such goods are declared for export to other territories, and not for sale in British territory (meaning Pegu),* such goods shall be free according to the Customs Schedule, but goods liable to seaboard duty will pay the usual rate." This sentence at one time threatened to render the whole of the negotiation for a treaty null and void. At first the Burmese minister insisted on the concluding sentence of Article

*The general words "British territory" are fully understood by the Burmese to mean Pegu only. Indeed, the context renders it impossible that they should bear any other meaning. A. P. P., Chief Commissioner.

Article 5 being made the counterpart of Article 4, and that it should run thus:

"If such goods are declared for export to other territories, and not for sale in British territory, the British ruler shall, if he believes the manifest to be true, not cause bulk to be broken, and such goods shall be free of duty."

When this wording was proposed by the Burmese minister as containing rule for goods brought from China to Rangoon, I do not think he meant anything more than that such goods were not to pay a transit duty in Pegu. But I was apprehensive that the Burmese might afterwards apply the words "free of duty" to export or seaboard duty also. Although, therefore, I foresaw that difficulty would be likely to arise from mentioning the subject, I felt compelled to do so, and to inform the minister that we did not mean to give up our sea export duties. This immediately caused doubts to arise, and for three days discussions took place upon the point. The minister would not, for a long time, acknowledge that we had any peculiar right, as holding the seacoast, to levy this export duty. I argued that we bore the whole expenses of the ports, the lighthouses, and so on, of which they had the benefit, but the minister at last only gave a reluctant consent. Fortunately, he did not then think of what he afterwards proposed as an equivalent—that is, a small export duty at their north-east frontier, in consideration of their having to guard the Chinese border. Absurd as such a proposition is, had they thought of it sooner, I fear I should have been obliged to come away without any treaty; for I could not possibly hold out any prospect to them of such an arrangement being approved by his Excellency the Viceroy, and if they had once made the proposal during the discussions, it would have been tenaciously adhered to. After the minister's consent to the draft treaty had been given, I had an audience with the King, who, before numerous persons, approved the wording of the whole; and when the minister subsequently, but before signing the treaty, wished to reopen the discussion, I refused to do so. He seriously urged that they ought to be allowed to put a small export duty on goods brought up from Rangoon going to China, as we put an export duty on goods from China going to sea. The words as they stand mean that "goods imported into Burmah, and brought down the Irrawaddy to Rangoon, shall be free of export duty, according to Schedule B. of Act XI. of 1862, but goods liable to sea export duty shall pay the usual rate.”

I gave the minister a copy of the Schedule B. as far as No. 20 (Iron), pointing out how favourable it was as regards many articles of importance produced in Burmah, as cotton, tobacco, and teak-timber. This, no doubt, pledges us to keep those articles free of export duty. I trust his Excellency the Viceroy in Council will not consider that I have exceeded my instructions in doing this. As it was, I barely saved a disagreement on this point, which would have been fatal to any reasonable treaty, and what I have virtually guaranteed as regards our sea export duty is merely to retain as free the articles mentioned as such in Schedule B. of Act XI, of 1862. I trust this will be approved when the advantages of the treaty, taken as a whole, are considered. The wording "goods liable to seaboard duty will pay the usual rate," leave it open with Government to raise the existing export rate or not.

It will not be necessary for me to explain that the arrangement for the payment of one per cent. on goods, as for a transit duty, is necessarily restricted to the port of Rangoon and the Irrawaddy route to China, because we could not by any other route protect our own revenue on goods imported by sea and consumed in British territory.

Articles 6 and 7 provide for Burmese and British merchants proceeding into the territory of either Government. In the first draft I proposed that, in Article 7, the words "might travel in their own steamers," and "settle at Bamo,' should be introduced. The King said himself, personally, that he had no objection whatever to British steamers coming up the Irrawaddy, but that the mention of steamers might alarm the people. He had no objection, however, to the Article being so worded that steamers might come as a matter of right, and merchants settle at Bamo, or anywhere else. I have, therefore, worded the article accordingly. By it British merchants may proceed up the Irrawaddy "in such manner as they please without hindrance," and "may purchase whatever they may require" (fuel for instance), and "settle in any part of the Burmese territory." The king and ministers are fully prepared under this for the appearance of British steamers, and for our merchants to settle at Bamo. I trust, therefore, 300.

that his Excellency the Viceroy in Council will consider that the road to China is thereby fairly opened to our steamers as far as they can go, and that our merchants may now proceed by the Irrawaddy to Bamo, and deal direct there with the Chinese caravans.

Article 8 concerns the frontier duties. Here, also, I had great difficulty. I am satisfied that the state of the King's finances rendered it absolutely impossible for him to give up his frontier duties at once. He was unwilling to state positively when he would do so, but declared it should be done as soon as possible. Under these circumstances, I would not say positively whether the British frontier duties would be abolished or not, and the wording of the article leaves it optional with the British Government to do so within one year. But if we abolish the British duties, I have full confidence that the Burmese will abolish theirs within the time specified, namely, four years. At all events, should they not do so, there is nothing to prevent us from reimposing those on our side. But I beg respectfully to recommend, for the benefit of our own subjects, that the frontier duties be abolished, say, by the end of the official year 1862–63, and that I may be allowed to announce the fact at an early date to the Burmese Government. In the meantime the king and minister have promised not to increase the duties on their side. The king said his sole reason for objecting to insert this provision in the treaty was, that it would humiliate him in the eyes of his people, as appearing to act under compulsion. In their position, overshadowed by British power, I am not surprised at the existence of this feeling. I have received from them a list of their existing duties, which was satisfactory in every respect except as regards teak-timber. On that article they appear lately to have raised their rate of duty, and I declared I was not satisfied with the list in that respect. The King, the day I left Mandalay, assured me he would, before long, furnish me with a revised list in which the rate on timber should be rectified, and I have full confidence that his promise on this subject will be fulfilled. He is at present occupied in making arrangements for leasing out his forests, one of the best having been leased to a British merchant, Mr. W. Wallace.

Article 9, and the last, provides for people passing through the Burmese territory to British territory without hindrance. Should tea-planters in Assam, therefore, wish to import Chinese labourers, they have only to send an agent to Bamo, and no doubt they will be able to engage many.

I trust that his Excellency the Viceroy and Governor General in Council will consider that, on the whole, the treaty is highly favourable to British interests. The great object in view, I venture to state, was to remove obstacles existing to a direct trade between the Chinese territory and the seaboard. That has been done effectually. The frontier duties are, I submit, of secondary importance, and I feel convinced that the Burmese were not in a condition at once to abolish them on their side. But if we show them the example, I now feel confident that they will follow. Abolishing the duties on our side will afford the people of British Burmah considerable relief, and, as their direct taxes are very high, this act will be welcome to them. The Burmese Government, I feel satisfied, will not increase their frontier duties, and I only do not forward their list of existing rates for publication, because they have promised to ratify the tariff as regards teak-timber.

The treaty as it stands was first approved by the King addressing me, personally, in presence of his four ministers of state and several others. This was on the 8th instant. The next day being Sunday, we agreed to sign the treaty on the 10th. Early on that day I went to the Lhwot-dan, or great public hall of the kingdom, accompanied by Captain C. D. Newmarch, the chief engineer, and Mr. R. S. Edwards. There were already in the hall the four woongyees, or chief ministers of state. A subordinate of the Lhwot-dan appeared, and read aloud an order from the king to his ministers, authorising the chief of them, commonly called the Magway Mengyee, to sign the treaty which had been discussed, and had been approved by himself. I then signed first the two English copies, and the woongyee signed first the two Burmese copies. I informed the Burmese ministers that the ratification of his Excellency the Viceroy should be communicated to them within three months. After the public manner in which the personal consent and approval of the king to the treaty had been given at the time of signature, I did not consider it necessary to ask for a subsequent ratification from his majesty. It is understood that the whole treaty will take effect from the date of the ratification reaching the Burmese minister.

There

There is one subject which still requires to be mentioned. It is as regards opium. I had proposed that a separate article should provide for its being conveyed through the country, either Burmese or British, for sale in countries. beyond. The King has an objection on religious grounds to allow his subjects to consume opium, and was averse to admitting, by a special article, that the drug might be conveyed through his country, but said he would not object to its coming in, like other goods, under Article 4. As opium, we now know, is made in the States bordering on Yunan, if not in Yunan itself, it appears doubtful whether it could be carried there from Bengal and sold at a profit. However that may be, the Burmese will not object to opium being carried through their territory, and they fully understand that opium from China or the Shan States cannot be sold for consumption in our territory. I was not able to say anything to them on the subject of merchants being allowed to sell opium in Rangoon for export, as I have not yet received orders relative to the opium brought to Rangoon some time ago. The only persons who inquired on this subject were Chinese merchants at Mandalay.

During the negotiations, the Burmese minister did not mention the subject of arms and warlike stores. The fact is, there is a manufactory for small-arms at Mandalay, under the direction of a Frenchman, a good practical engineer and founder. I visited the place. He has turned out very fair rifles, makes percussion-caps, and manufactures gunpowder. The Burmese Government do not therefore feel anxious on the subject of warlike stores. After the treaty had been signed, the Myadoung Woongyee, who has the ordnance especially under his charge, asked me, as from the King, whether there would be any objection to their purchasing a thousand rifles and some guns. I replied that I would recommend to his Excellency the Viceroy that this should be allowed, and I shall have the honour to address to you a separate communication on the subject.

With regard to a mission to the Chinese Frontier, the health of the Right Reverend Bishop Bigandet, while we were at Mandalay, did not admit of his going, and I consider it better to leave it to Dr. Williams to proceed at leisure to Bamo, and make inquiries as to the present traffic, the existing difficulties, and the prospects of overcoming them. Bishop Bigandet will, if possible, proceed to join Dr. Williams at Bamo. I was, while at Mandalay, visited by numerous Chinese belonging to the Province of Yunan, who are settled there. Some had arrived within the last six months. They describe affairs as better in that province than they were, but that only small parties of merchants can come across at a time. The Chinese at Mandalay took a great interest in the progress of the negotiations, and said they were most anxious to have a free road down to Rangoon. One man has promised me that, before twelve months are over, he will appear at Rangoon with some Chinese men and women as settlers in Pegu. I need hardly say that this will be a very important step, and for the first party of these immigrants I promised that they should have employment as labourers for one year certain, and exemption from taxes for 10 years. This is somewhat above what is allowed under the existing revenue rules; but I trust that the promise will, under the circumstances, be approved by his Excellency the Governor General in Council.

The export of the precious metals from Burmah is not allowed, and I found that the prejudices of the ministers generally on that subject were too deeply rooted to be overcome. The prohibition no doubt interferes with trade, but it is hoped that, after some experience of the benefits which are likely to be derived from the present treaty, they will perceive that their restriction on the export of the precious metals simply cramps the industry of their people. The King is procuring a mint from France, and if, as it is stated, he intends to introduce coined silver of one standard, in lieu of the present ingots, having every possible variety of alloy, the export of silver cannot much longer be delayed. Under the treaty the precious metals may be brought from China to Rangoon.

TREATY with the King of Burmah, dated 10 November 1862.

ON the 10th day of November 1862, answering to the 5th day of the waning_moon Tatshoungmon 1,224, Lieutenant Colonel A. P. Phayre, Chief Commissioner of British Burmah, having been duly empowered by His Excellency the Right Honourable the Earl of Elgin and Kincardine, K. T. and G. C. B., Viceroy and Governor General of India, and Woongyee Thado Mengvee Maha Menghla-thee-ha-thoo having been duly empowered by His Majesty the King of Burmah, concluded the following treaty:

Article 1. The Burmese and British rulers have for a long time remained at peace and in friendship; peace shall now be extended to future generations, both parties being careful to observe the conditions of a firm and lasting friendship.

Art. 2. In accordance with the great friendship existing between the two countries, traders and other subjects of the Burmese Government who may travel and trade in the British territory shall, in conformity with the custom of great countries, be treated and protected in the same manner as if they were subjects of the British Government.

Art. 3. Traders and other subjects of the British Government who may travel and trade in the Burmese territory shall, in accordance with the custom of great countries, be treated and protected in the same manner as if they were subjects of the Burmese Government.

Art. 4. When goods are imported into Rangoon from any British or foreign territory, and declared to be for export by the Irrawaddy River to the Burmese territory, the English ruler shall, provided bulk is not broken and he believes the manifest to be true, charge one per cent. on their value, and, if he so desires, shall allow them to be conveyed under the charge of an officer until a rival at Maloon and Menhla. The tariff value of goods shall be forwarded yearly to the Burmese ruler. If such goods are declared for export to other territories, and not for sale in the Burmese territories, the Burmese ruler shall, if he believes the manifest to be true, not cause bulk to be broken, and such goods shall be free of duty.

Art. 5. When goods are imported into Burmah by persons residing in the Burmese or any foreign territory, and declared to be for export by the Irrawaddy River to Rangoon, the Burmese ruler shall, provided bulk is not broken and he believes the manifest to be true, charge one per cent. on their value, and, if he so desires, shall allow them to be conveyed under the charge of an officer to Thayet Myo, and the tariff value of such goods shall be forwarded yearly to the British ruler. If such goods are declared for export to other territories, and not for sale in British territory, such goods shall be free according to the Customs Schedule, but goods liable to seaboard duty will pay the usual rate.

Art. 6. Traders from the Burmese territory who may desire to travel in the British territory, either by land or by water, through the whole course of the Irrawaddy River, shall conform to the customs of the British territory, and shall be allowed to travel in such manner as they please, without hindrance from the British ruler, and to purchase whatever they may require. Burmese merchants will be allowed to settle and to have land for the erection of houses of business in any part of the British territory.

Art. 7. Traders from the British territory who may desire to travel in the Burmese territory, either by land or by water, through the whole extent of the Irrawaddy River, shall conform to the customs of the Burmese territory, and shall be allowed to travel, in such manner as they please, without hindrance by the Burmese ruler, and to purchase whatever they may require. British merchants will be allowed to settle and to have lands for the erection of houses of business in any part of the Burmese territory.

Art. 8. Should the British ruler, within one year after the conclusion of this treaty, abolish the duties now taken at Thayet Myo and Toungoo, the Burmese ruler, with a regard to the benefit of the people of his country, will, if so inclined, after one, two, three, or four years, abolish the duties now taken at Maloon and Toungoo (in the Burmese territory).

Art. 9. People, from whatever country or nation, who may wish to proceed to the British territory, the Burmese ruler shall allow to pass without hindrance. People, from whatever country, who may desire to proceed to the Burmese territory, the British ruler shall allow to pass without hindrance.

(L. s.)

(L. S.)

(signed)

Arthur Purves Phayre, Lieutenant Colonel,

Appointed by the Viceroy and Governor General. Woongyee Thado Mengyee Maha Menghla-thee-ha-thoo, Plenipotentiary to His Majesty the King of Burmah.