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PART I—CHAPTER I.


                                     CHAPTER I.

           Line of conduct to be pursued by the Resident at Basrah with regard
                to the American vessels trading to the Gulf of Persia—-1803.
               The following opinion was recorded by Robert Percy Smith, Advocate
                                          General, Calcutta, in his letter dated 28th
           o{^8c»ret Vea°!i7Ca* Dcp,rlrnenl Diary k’0,158 November 1803, on the above point:—

               I have the honour to acknowledge the receipt of your letter requiring by the direc­
           tions of His Excellency the Most Noble the Governor-General in Council my opinion as to
           the line of conduct to be pursued by the Resident at Bussorah with regard to American
           vessels trading to the Gulf of Persia.
               It docs not appear by the extract from the despatch of the Resident at Bussorah what
           is the nature of the trade in which he supposes that the American vessels visiting the
           Gulf may be engaged.
              The mere act of trading to the Gulf of Persia by a Foreigner is no infringement of
           the rights of the British Government in India.
              The ports of that Gulf are not part of the British Territories, the Resident at Bus­
           sorah is no more than the Agent of the Company in the Dominions of the Foreign and
           altogether an independent State.
              The privileges of the Company beyond the limits of their own Territory are exclusive
           of the Trade of British subjects only, not of the trade of Foreigners.
              The American Treaty 1794 docs not seem to me to apply to the question put thus
           generally, by that Treaty the privilege of Trading directly to and from the British Terti-
           tories in India was conferred under certain restrictions upon the Americans, but their right
           of Trading to and from those Ports of the East which do not fall under the description of
           British Territories is independent of that treaty and not at all affected by it.
              It is not improbable however that the Trade of which the Resident speaks may be an
           export trade carried or. from the British Territories in India to the Gulf.
              Before the Treaty of 1794 an American conveying on such a Trade would have com­
           mitted an offence against the Navigation Laws of England. His ships and goods engaged in
           the Trade might have been confiscated in any British Po:t or seized at sea by any ships
           bearing the King's Commission.
              All trade of this sort is expressly excepted from the indulgences granted to Ameri­
           cans by that Treaty and that exception is noticed in the act of Parliament which was
           passed to sanction the Treaty.
              Reading the act and Treaty as a Lawyer I think they leave the trade in question
           subject as it was to the penalties of the Navigation acts: and that the future regulations to
           be adopted by the contracting powers were intended not as substitutes for those penalties
           but as additional preventives ot the trade.
              I cannot however say that it is impossible to understand them otherwise : how far
           where there is the least room for dispute, His Excellency in Council may think fit to pro­
           mote the strict execution cf the Law against the Americans is matter of the political dis­
           cretion.
              But supposing the right of confiscation still to exist, it is clear that seizures can only
           be made at sea by the King's ships and that they cannot be made at all in foreign ports
           without violating the territory of the sovereign to whom those Ports belong. I cannot
           therefore imagine any case in which the Resident at Bussorah would be called upon in the
           discharge of his ordinary duties to take any steps with regard to American vessels trading
           to the Gulf of Persia.
              By the act of 37 G. 3, the Court of Directors are empowered to regulate the trade of
           nations in amity with great Britain to and from the British territories in India. I have never
           understood that the Court has made any regulations under the authority of that act; if
           any such exist they may possibly bear on this question and as I may frequently have
          occasion in the discharge of my official duties to consider questions cf the nature, I beg
           leave respectfully to solicit His Excellency in Council that he will be pleased to direct that
           a copy of such Regulations (if any have been framed) may be communicated to me.
              I request, Sir, that you will do me the honour to report my opinion as above to His
           Excellency in Council.
              Copies of the above despatch were on the 25th instant ordered to be forward­
          ed to the Resident at Basrah and also to the Resident at Bushire for their respect­
          ive information and guidance.
              C163FD
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