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            the requirements of Act XXX of 1852. The Bombay Government still desired
            to recommend the course suggested in 1S88 (paragraph 17 above), and said
            that " the principle that the sea-board Native States of India in subordinate
            alliance with Her Majesty should for the purposes of maritime police and external
            relations be treated as a part of Her Majesty’s Indian empire appears worthy of
            consideration.”
                21.  Attention was invited by the Bombay Government to the correspondence
                                          received from the India OlTice regarding a
             Secret E., October 1890, N«s. 1*14 (N01.1-4).
                                          desire expressed by the German Govern­
            ment to extend their protection and jurisdiction over such subjects of Indian
            Native States as were not registered at the British Consulate at Zanzibar and
            were to be found in the German protected territories in East Africa. In this
            correspondence Kutch subjects were taken as an instance. Lord Cross's view
            was that the subjects of any British Indian protected State were under the pro­
            tection of the British Government when out of India 1 The Bombay Govern­
            ment were of opinion that the provisions of General Act rendered an alteration of
            Act X of 1841 necessary ; they pointed out that the resemblance of the Kutch
                                          flag* to the Turkish, Egyptian and Arab
                  • Red with sun and moon.
                                          ensigns would especially invite visitation of
            Kutch vessels, and that “in order to obtain fair consideration, Kutch vessels must
            hoist the British ensign, and consequently the removal of legal difficulties to that
            course is the first step to be taken.”
                22.  In letter No. 3144, dated the 14th May 1892, the Bombay Government
  1         enquired whether, apart from legislation, sanction could not be given to a form
            of license to carry the British flag. And with their No. 3372, dated the 23rd
            May 1S92, Bombay Government forwarded a letter (with enclosure) from the
            Political Agent, Kutch, regarding proposals by the Kutch Darbar in respect to—
                    (i)  the alteration of the Kutch flag ;
                    (ii)  amendations of, or additions to, the forms previously used by ship­
                         owners.
                Further reports from Kutch were forwarded with the Bombay Government
            letter No. 3634, dated the 4th June 1892, explaining that it was only intended to
            alter the Kutch flag so as to prevent its being mistaken for the Turkish.
                23.  The views of the Government of India were expressed in Foreign De­
  i                                       partment letter No. 2053-E., dated 7th
                 Secret E., March 1893, Nos. 217*245.
                                          November 1892 :—
               Two distinct questions appear to arise for decision, via. :—
                   (i)  whether subjects of a Native State in India are “ proteges " of the protecting
                       power within the meaning of Article XXXII of the General Act ol the
                       Brussels Conference, in which case permission to fly the British flag can,
                       under that article, be granted to vessels of such Native States ; and
                   (ii)  whether our own Municipal Law, as it at present stands, enables us to grant
                       this permission, and if not, what alteration of it is required for the purpose.
               On the first of these points I am to say that the Government of India are advised that
            subjects of Native States in India can be held to be protected persons for the purposes of
            the General Act.”
               As regards the second question, I am to remark that there does not appear to be any
            statutory authority enabling the Government of India to grant permission to fly the British
            flag in ships, which are not British ships or by persons who are not British subjects, except
            under the provisions of Act X of 1841, as amended by subsequent enactments, but neither
            does there appear to be any authoritative prohibition of such grants ; and I am to add that
            the question of regulating such grants by the introduction of a clause in the pending
            Merchaut Shipping Bill will be taken into consideration. Meantime there does not seem
            to be any objection to the grant of such permission in the case of vessels owned by subjects
            of Native State to which the privileges of a British ship have been, or may hereafter be,
            granted under the provisions of the Act above mentioned.
               There is no objection to the proposed alteration of the Kutch flag ; but it should be
            pointed out to the Darbar that the benefits of the General Act can only be claimed by vessels
            which not only a.re authorised to fly the British flag, but also comply strictly with the provi­
            sions of the Act, and that the suggested modifications ot those provisions are consequently
            inadmissible.
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