Appendix XVIII

Appendix XVIIIRegulations relative to taxes and imposts on natives and immigrants in Sulu68General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: andDeeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.Malcampo.General Government of the Philippines,Treasury Department,Manila,August 10, 1887.In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.Terrero.Office of the Governor-General of the Philippines.Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.Office of the Intendant-General of the Treasury Division of Direct ImpostsMost excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.2. That there be created at once the imposition of the poll-tax upon the Chinese.3. That the natives and the civilian population be exempt from the payment of poll-tax.Your most illustrious Lordship will, however, determine whatever he deems most expedient.Manila,August 6th, 1897.Marcelino Pacheco.Office of the Intendant-General of the Treasury Division of Indirect ImpostsMost excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.Your most illustrious Excellency will, however, order whatever he deems most expedient.Manila,September 10th, 1897.José Garcés de Marcilla.Office of the Intendant-General of the Treasury,Manila,December 28, 1897.Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.Dominguez.Appendix XIXThe Protocol of Sulu, of 1877, between Spain, Germany, and Great Britain, May 30, 187771General Government of the PhilippinesRoyal OrderColonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.Madrid,April 2, 1877.Martin de Herrera.TheGovernor-General of the Philippine Islands.Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.[Protocol referred to.]The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:The Secretary of State of Spain, in the name of his Government, says:Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:ICommerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:IIThe Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.IIIIn the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.IVThe three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.VIf the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.Manuel Silva,Secretary of State of His Majesty the King of Spain.Done at Madrid, the 11th of March, 1877.A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.Appendix XXThe Protocol of Sulu of 1885, between Spain, Germany, and Great Britain, March 7, 188572General Government of the PhilippinesRoyal OrderForeign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.Manila, June 17, 1885.—To be executed and published in the Official Gazette.Terrero.A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:IThe Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.IIAs expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.IIIThe Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”IVThe Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.VThe Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.Appendix XXIDecree of the General Government in regard to payment of tribute by Sulus, March 1, 189473Office of the Governor-General of the Philippines,Manila,March 1, 1894.In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.AllowancesTo the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.To be communicated.Blanco.Appendix XXIIRoyal communication relative to the rights of foreigners on the pearl fisheries of Sulu75Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.To what extent should Spain exercise this right?On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

Appendix XVIIIRegulations relative to taxes and imposts on natives and immigrants in Sulu68General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: andDeeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.Malcampo.General Government of the Philippines,Treasury Department,Manila,August 10, 1887.In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.Terrero.Office of the Governor-General of the Philippines.Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.Office of the Intendant-General of the Treasury Division of Direct ImpostsMost excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.2. That there be created at once the imposition of the poll-tax upon the Chinese.3. That the natives and the civilian population be exempt from the payment of poll-tax.Your most illustrious Lordship will, however, determine whatever he deems most expedient.Manila,August 6th, 1897.Marcelino Pacheco.Office of the Intendant-General of the Treasury Division of Indirect ImpostsMost excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.Your most illustrious Excellency will, however, order whatever he deems most expedient.Manila,September 10th, 1897.José Garcés de Marcilla.Office of the Intendant-General of the Treasury,Manila,December 28, 1897.Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.Dominguez.Appendix XIXThe Protocol of Sulu, of 1877, between Spain, Germany, and Great Britain, May 30, 187771General Government of the PhilippinesRoyal OrderColonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.Madrid,April 2, 1877.Martin de Herrera.TheGovernor-General of the Philippine Islands.Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.[Protocol referred to.]The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:The Secretary of State of Spain, in the name of his Government, says:Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:ICommerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:IIThe Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.IIIIn the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.IVThe three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.VIf the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.Manuel Silva,Secretary of State of His Majesty the King of Spain.Done at Madrid, the 11th of March, 1877.A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.Appendix XXThe Protocol of Sulu of 1885, between Spain, Germany, and Great Britain, March 7, 188572General Government of the PhilippinesRoyal OrderForeign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.Manila, June 17, 1885.—To be executed and published in the Official Gazette.Terrero.A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:IThe Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.IIAs expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.IIIThe Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”IVThe Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.VThe Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.Appendix XXIDecree of the General Government in regard to payment of tribute by Sulus, March 1, 189473Office of the Governor-General of the Philippines,Manila,March 1, 1894.In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.AllowancesTo the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.To be communicated.Blanco.Appendix XXIIRoyal communication relative to the rights of foreigners on the pearl fisheries of Sulu75Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.To what extent should Spain exercise this right?On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

Appendix XVIIIRegulations relative to taxes and imposts on natives and immigrants in Sulu68General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: andDeeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.Malcampo.General Government of the Philippines,Treasury Department,Manila,August 10, 1887.In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.Terrero.Office of the Governor-General of the Philippines.Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.Office of the Intendant-General of the Treasury Division of Direct ImpostsMost excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.2. That there be created at once the imposition of the poll-tax upon the Chinese.3. That the natives and the civilian population be exempt from the payment of poll-tax.Your most illustrious Lordship will, however, determine whatever he deems most expedient.Manila,August 6th, 1897.Marcelino Pacheco.Office of the Intendant-General of the Treasury Division of Indirect ImpostsMost excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.Your most illustrious Excellency will, however, order whatever he deems most expedient.Manila,September 10th, 1897.José Garcés de Marcilla.Office of the Intendant-General of the Treasury,Manila,December 28, 1897.Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.Dominguez.Appendix XIXThe Protocol of Sulu, of 1877, between Spain, Germany, and Great Britain, May 30, 187771General Government of the PhilippinesRoyal OrderColonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.Madrid,April 2, 1877.Martin de Herrera.TheGovernor-General of the Philippine Islands.Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.[Protocol referred to.]The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:The Secretary of State of Spain, in the name of his Government, says:Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:ICommerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:IIThe Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.IIIIn the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.IVThe three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.VIf the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.Manuel Silva,Secretary of State of His Majesty the King of Spain.Done at Madrid, the 11th of March, 1877.A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.Appendix XXThe Protocol of Sulu of 1885, between Spain, Germany, and Great Britain, March 7, 188572General Government of the PhilippinesRoyal OrderForeign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.Manila, June 17, 1885.—To be executed and published in the Official Gazette.Terrero.A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:IThe Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.IIAs expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.IIIThe Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”IVThe Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.VThe Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.Appendix XXIDecree of the General Government in regard to payment of tribute by Sulus, March 1, 189473Office of the Governor-General of the Philippines,Manila,March 1, 1894.In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.AllowancesTo the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.To be communicated.Blanco.Appendix XXIIRoyal communication relative to the rights of foreigners on the pearl fisheries of Sulu75Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.To what extent should Spain exercise this right?On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

Appendix XVIIIRegulations relative to taxes and imposts on natives and immigrants in Sulu68General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: andDeeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.Malcampo.General Government of the Philippines,Treasury Department,Manila,August 10, 1887.In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.Terrero.Office of the Governor-General of the Philippines.Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.Office of the Intendant-General of the Treasury Division of Direct ImpostsMost excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.2. That there be created at once the imposition of the poll-tax upon the Chinese.3. That the natives and the civilian population be exempt from the payment of poll-tax.Your most illustrious Lordship will, however, determine whatever he deems most expedient.Manila,August 6th, 1897.Marcelino Pacheco.Office of the Intendant-General of the Treasury Division of Indirect ImpostsMost excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.Your most illustrious Excellency will, however, order whatever he deems most expedient.Manila,September 10th, 1897.José Garcés de Marcilla.Office of the Intendant-General of the Treasury,Manila,December 28, 1897.Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.Dominguez.

Appendix XVIIIRegulations relative to taxes and imposts on natives and immigrants in Sulu68

General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: andDeeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.Malcampo.General Government of the Philippines,Treasury Department,Manila,August 10, 1887.In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.Terrero.Office of the Governor-General of the Philippines.Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.Office of the Intendant-General of the Treasury Division of Direct ImpostsMost excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.2. That there be created at once the imposition of the poll-tax upon the Chinese.3. That the natives and the civilian population be exempt from the payment of poll-tax.Your most illustrious Lordship will, however, determine whatever he deems most expedient.Manila,August 6th, 1897.Marcelino Pacheco.Office of the Intendant-General of the Treasury Division of Indirect ImpostsMost excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.Your most illustrious Excellency will, however, order whatever he deems most expedient.Manila,September 10th, 1897.José Garcés de Marcilla.Office of the Intendant-General of the Treasury,Manila,December 28, 1897.Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.Dominguez.

General Government of the Philippines,Treasury Department,Manila,February 24th, 1877.

In view of the communications of the politico-military governor of Sulu of October 6th of last year, in which he suggests to this general government the concession of various exemptions in favor of the natives of these islands and of any Chinamen who shall establish themselves in the said place, to the end that by this means there may be promoted the immigration which the interests of that island demand:

In view of the reports issued in the premises by the central administration of imposts, the office of the insular auditor,69and the insular departments of civil administration and the treasury: and

Deeming it expedient, for the realization of the high purposes that required the military occupation of Jolo and for the progressive and efficacious development of the moral and material interests of this young colony, that there should be granted certain exemptions for the encouragement of the immigration thereto of the greatest possible number of inhabitants: this office of the general government in conformity with the suggestions made by the treasury department, and in accordance with the statements made by the department of civil administration, disposes the following:

1. All immigrants to the island of Sulu, of whatever class, race, or nationality, who shall establish themselves definitively in the same, engaging in agricultural, industrial, or commercial pursuits, or in any art, trade, or occupation, shall be exempt during ten years from all the contributions or taxes imposed, or which in the future may be imposed, upon the inhabitants of the Philippine Archipelago.

2. The children of immigrants to Sulu, born in said island or who establish themselves there before becoming taxpayers in the pueblos of their birth, shall commence to pay taxes at the age of twenty-five years, but shall be exempt from military service so long as they reside in the said island.

This decree shall be published in the Official Gazette and communicated to the council of administration, the office of the captain-general, and the insular department of civil administration; and shall be returned to the treasury department for such further action as may be proper.

Malcampo.

General Government of the Philippines,Treasury Department,Manila,August 10, 1887.

In view of the investigation conducted by the intendant-general of the treasury with the object of determining whether it would be expedient to prolong the term of exemption from all kinds of taxes and imposts in favor of natives and of immigrants of whatever race or nationality who are established, or who shall establish themselves, in Sulu for the purpose of engaging in any kind of industry, commerce, profession, art, or trade, or in agriculture:

In view of the reports issued by the said directive bureau of the treasury and the politico-military governor of Sulu:

And considering that exemption from all burdens constitutes one of the most efficacious means of encouraging the immigration demanded by the interest of the archipelago in question; this general government, in conformity with the suggestions made by the office of the intendant of the treasury and the politico-military governor of Sulu, disposes that the term of exemption granted by superior decree of this general government of February 24th, 1877, shall be understood as extended for another term of ten years, the said extension to be reckoned from the day following that on which the first term expires, that is, from the 25th day of February of the current year.

This decree shall be published in the Official Gazette; the Government of his Majesty shall be informed thereof and a copy of the records transmitted; it shall be communicated to the council of administration, the tribunal of accounts, the office of the Captain-General, and the insular department of civil administration; and shall be returned to the office of the intendant of the treasury for any further action that may be proper.

Terrero.

Office of the Governor-General of the Philippines.

Most excellent and most illustrious Sir: The politico-military governor of Sulu, in a communication dated the 9th instant, states as follows:

Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.God preserve your most illustrious Excellency for many years.Manila,July 31st, 1896.Blanco.To the most excellent and most illustrious theIntendant-General of the Treasury.

Most excellent Sir: As the time expiration of the exemptions granted to Sulu and its port by decree of the general government under the able directionof your Excellency, dated February 24th, 1877, and extended by superior order issued from the same office for another term of ten years, on August 23rd, 1887, is drawing near, the person who has the honor to sign hereunder believes that the moment has come to call the attention of your Excellency to the matter, and he takes the liberty to set down some remarks in the premises, to the end that when your Excellency determines what is deemed most expedient, they may be taken under advisement.

In the exemptions granted to Sulu, it must be borne in mind that they affect two distinct elements, which constitute the life and favor the development of this locality. Some have reference to the exemption from all taxes, tributes, and gabels imposed, or to be imposed, in favor of natives or foreigners taking up their abode in the Sulu archipelago. Others refer exclusively to the declaration of a free port, with exemption from all taxes and customs formalities in favor of the capital of the island.

In treating this question and in considering what ought to be done in the future, when the moment arrives for determining whether a fresh extension is expedient, or whether, on the contrary, this territory must enter upon the normal administrative life general in other localities of the Philippine Archipelago, the subject must be dealt with under the two aspects above set forth. In regard to the declaration of freedom of the port granted to Jolo, it is undoubtedly expedient to continue it for the present without change. So long as the protocol entered into with the other nations who are parties thereto, continues in force—in which protocol our incontestable right of sovereignty over this archipelago, with the limitations therein stipulated, is declared—it would be highly impolitic to close the period of franchise granted to this port. Should there be established the embarrassing obstacles and difficulties to commerce entailed by the formalities of customs regulations, the English steamers which now carry on the trade with Singapore, would immediately cease to visit this port and would make their destination some other port of the island, where, under the provisions of the protocol above referred to, no one could lawfully obstruct them until after the effective occupation of the new port selected for trading operations, and until after having allowed to elapse the requisite time subsequent to publishing this resolution in the official papers of the Peninsula. The distinguished intelligence of your Excellency will perceive easily that after this had been repeated several times, we should find ourselves compelled either to occupy effectively all the islands of the Sulu archipelago where English steamers might attempt to establish their business, or, in the end, to allow them to carry on their commercial operations at any place that suited them, which, without doubt, would be much more prejudicial than what happens at the present time; for, at any rate, so long as steamers come exclusively to this port or to that of Siasi, as is the case at present, the trade can be watched easily and conveniently and without the commercial operations which are carried on giving rise to diplomatic questions; it is easy, also to prevent the traffic of arms and war supplies, which would not be the case if they touched at other points where our sphere of action is not so direct and effective. Furthermore, the advantages of the present situation must also be taken into account. So long as these steamers touch only at Jolo and Siasi, as happens now, these two points are the only markets, whither all the people of the archipelago must necessarily go to trade, not only to supply themselves with the effects which they import and are necessary to life, but also to sell all the products they gather in their fields and in the seas, which constitute the element of commerce that justifies English vessels in visiting these regions, making it possible to collect sufficient freight to maintain the two regular lines now established. It is obvious that, since we are mastersof the towns of Jolo and Siasi—the only points of distribution for effects necessary to the life of the natives here—we can, when we consider it expedient, prevent the sale of these effects to the villages hostile to the city, a most momentous advantage resulting therefrom and a means of government of inestimable value. So long as the Moros have to supply themselves from these markets, our importance is incontestable; all their outbreaks are easily checked without appeal to violent methods; and the civilizing effect which results from the constant intercourse which is necessitated by their coming to the occupied ports, is extended, thereby modifying the sanguinary and turbulent habits of this race. If the revenues from the duties which would be imposed were of sufficient importance to cover the expenses entailed by the occupation of Sulu, the arguments supporting the opinion above expressed could easily be set aside. But unfortunately there can not be expected from the custom house of Jolo, in the event of its establishment, even the expenses necessary to cover the salaries of the personnel engaged therein. For, the foreign steamers which now visit this port would immediately discontinue their voyages, and even though it were possible to prevent them from making port at some other place for the purpose of carrying on their mercantile operations—a thing which would not be easy so long as the treaty is in force—what would happen? Why, that the trade would be continued by means of smaller boats which would come from Borneo, and it would not be feasible to prevent this except by the posting of a very large number of coastguards along the shores of the innumerable islands of Sulu, a method which it would be altogether impossible to adopt. It is, therefore, unquestionably expedient to maintain the present status, whether the matter be considered under its economic aspect or under that of the policy it is necessary to develop in this territory. A very different course must, in the opinion of the undersigned, be followed in the matter of the exemption from taxation granted to the inhabitants of Sulu. These exists here a numerous Chinese colony, which is the element that really enjoys the benefit of the advantages flowing from the present free-port conditions, and it is neither just nor equitable that, while the Chinese find in us the support and protection which enable them to carry on and develop the trade in which they alone engage, they should not contribute in any way towards the expenses of the Government which furnishes them so many advantages. It is, therefore, expedient to impose upon all Chinaman residing in the Sulu territory the obligation to pay the same taxes as are paid by those of the same race in other parts of the Philippines. The establishment of this system promises not only the profit of the sums which would be collected as a consequence thereof, but also the desideratum of introducing order into the anarchical manner of life obtaining among the Chinese here. As soon as the obligation to pay taxes is imposed upon all and the lists of tax-payers are made up, individual interest will see to it that all persons living in the country are included therein; for it is unquestionable that, since each desires to be placed under the same conditions astheother, the Chinamen themselves will be of very great assistance in discovering those who now are not included in the incomplete and untrustworthy census lists existing in the offices of the Government of Sulu. It is believed, then, that it is expedient and just to discontinue the franchise now enjoyed by the Chinese here, and that they should begin to contribute at once towards defraying the expenses of the treasury, paying at least as much as is paid by their countrymen in other parts of the Philippines. It would appear also equitable that the Indians residing here should also begin to pay thecédulas70of theclass to which they respectively belong; but there must be borne in mind the limited number of individuals of this race residing here; the expediency of encouraging by this means the immigration of fresh residents; and, above all, the services they render in any case of alarm, whether caused byjuramentadosor by more serious aggressions attempted against the city; all of which circumstances make it proper that they should continue enjoying the exemption from the payment of poll-tax which they now enjoy, as also exemption from all the other taxes upon the insignificant industries from which they gain a subsistence. The treasury could not hope for any happy results in this direction; and, on the other hand, if such a tax were imposed, the place would, in a very short time, be left entirely without any civilian population; for only with difficulty, and thanks to the franchises, can persons be found who will face the constant danger in which residents in Jolo are placed—especially those who engage in the cultivation of the soil in the outskirts of the town; of which class the civilian population is, in a very large majority, composed.

It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch onlyat these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.

Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.

God preserve your most illustrious Excellency for many years.

Manila,July 31st, 1896.

Blanco.

To the most excellent and most illustrious theIntendant-General of the Treasury.

Office of the Intendant-General of the Treasury Division of Direct Imposts

Most excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.

The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.

Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and sincethese considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.

But if there are considerations in favor of this new concession, equity counsels that there be excluded therefrom the Chinese in so far as relates to the imposition of the poll-tax, since they control all the business and are the only persons who really exploit that region.

Consequently, the chief of the division of direct imposts has the honor to report to your most illustrious Lordship:

1. That it be recommended to his high Excellency the Governor-General of these Islands, that, to take the place of the present franchises, there be granted again, at the proper time, to the ports of Jolo and Siasi, the exemption from the payment of all urban and industrial taxes in favor of the natives and of the Chinese established at those points.

2. That there be created at once the imposition of the poll-tax upon the Chinese.

3. That the natives and the civilian population be exempt from the payment of poll-tax.

Your most illustrious Lordship will, however, determine whatever he deems most expedient.

Manila,August 6th, 1897.

Marcelino Pacheco.

Office of the Intendant-General of the Treasury Division of Indirect Imposts

Most excellent and most illustrious Sir: In compliance with the decree which, under date of August 10 of the current year, your most illustrious Excellency saw fit to issue, to the effect that, in the shortest possible space of time the divisions of imposts should report upon the matters concerning each one in the proceedings set on foot by the politico-military governor of Sulu in regard to the expediency or the inexpediency of the renewal of the exemption from taxation enjoyed by the natives in that place, I have to state to your illustrious Excellency that:

1. The undersigned chief, fully agreeing with the enlightened views set forth by the governor of Sulu, believes that the maintenance of thedeclaration of freedom of the port granted to Jolo is of the highest political moment and that the franchise should be extended to Siasi.

2. That in regard to indirect imposts which are of such a nature that, while they are a source of profit to the state, they bring also no small benefit to the tax-payer, these should be made applicable to the Sulu archipelago, as undoubtedly has been the case, as a matter of fact, up to the present time in regard to the stamp and lottery revenues.

3. Both for the reasons set forth by the governor of Sulu as well as for these given by his predecessor on June 11, 1893, in favor of a tax upon opium smokers, the undersigned chief believes that it is not only just but a matter of the greatest necessity to continue the imposition of this tax.

Your most illustrious Excellency will, however, order whatever he deems most expedient.

Manila,September 10th, 1897.

José Garcés de Marcilla.

Office of the Intendant-General of the Treasury,

Manila,December 28, 1897.

Let the report of the Chamber of Commerce and of the administration of customs of Manila be heard, within one and the same period of five days.

Dominguez.

Appendix XIXThe Protocol of Sulu, of 1877, between Spain, Germany, and Great Britain, May 30, 187771General Government of the PhilippinesRoyal OrderColonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.Madrid,April 2, 1877.Martin de Herrera.TheGovernor-General of the Philippine Islands.Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.[Protocol referred to.]The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:The Secretary of State of Spain, in the name of his Government, says:Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:ICommerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:IIThe Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.IIIIn the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.IVThe three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.VIf the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.Manuel Silva,Secretary of State of His Majesty the King of Spain.Done at Madrid, the 11th of March, 1877.A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.

Appendix XIXThe Protocol of Sulu, of 1877, between Spain, Germany, and Great Britain, May 30, 187771

General Government of the PhilippinesRoyal OrderColonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.Madrid,April 2, 1877.Martin de Herrera.TheGovernor-General of the Philippine Islands.Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.[Protocol referred to.]The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:The Secretary of State of Spain, in the name of his Government, says:Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:ICommerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:IIThe Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.IIIIn the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.IVThe three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.VIf the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.Manuel Silva,Secretary of State of His Majesty the King of Spain.Done at Madrid, the 11th of March, 1877.A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.

General Government of the Philippines

Royal Order

Colonial office.—No. 281.—Excellent Sir: The Secretary of State sent the following communication to this office on the 26th of March last: By Royal order communicated by the Secretary of State and for such action as is indicated therein I deliver herewith to your Excellency a copy of the protocol signed on the 11th inst. by Señor Manuel Silvela, Secretary of State, and by the representatives of Great Britain and Germany, for the purpose of establishing the liberty of trade and commerce in the Sulu seas; said protocol takes effect on this date, as specified in Article 5 of the same.—Referred to your Excellency by Royal order with a copy of the protocol, for its execution.—God keep your Excellency many years.

Madrid,April 2, 1877.

Martin de Herrera.TheGovernor-General of the Philippine Islands.

Manila,May 30, 1877.The above order shall be executed, communicated and published.Moriones.

[Protocol referred to.]

The Hon. Austin Henry Layard, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty; and Count Von Hatzfeldt, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, commissioned by their respective Governments to terminate the difficulties which have occurred in the Sulu seas and to establish for that purpose, in a final way, the liberty of commerce in those seas, acknowledged by the Secretary of State of Spain in the Notes which he sent on April 15, 1876, to the representatives of Great Britain and Germany;

After having examined with due attention the preliminaries of the question and especially the negotiations formerly carried on between the Governments of Great Britain and Germany and that of Spain, have agreed to draw up the following Protocol:

The Secretary of State of Spain, in the name of his Government, says:

Considering the preliminary fact that the German ships “Marie Louise” and “Gazelle” were returned and an indemnity paid for their cargoes in 1873 and 1874, and that the German ship “Minna” was returned twice in 1875 and 1874;

Duly appreciating the increasing requirements of navigation and commerce, and above all the legal status constituted by the Notes of the Spanish Secretary of State dated the 15th of April last and by the official publication of said Notes by the Governments of Great Britain and Germany, as also by the instructions given accordingly by said Governments to their consuls, agents and commanders of their naval forces;

Therefore the Government of his Majesty the King of Spain recognizes that the merchant ships going to the Sulu archipelago can no longer be required to call first at Zamboanga, to pay the harbor dues there and to provide themselves with a navigation permit delivered at said port. It furthermore believes that it must acknowledge, as provided in the Notes of the 15th of April last, the complete liberty of direct trade and commerce for ships and subjects of Great Britain, the German Empire and the other powers, with the Sulu archipelago.

Considering that the Governments of Great Britain and of Germany have maintained all their claims in regard to the liberty of navigation, commerce and direct trade with the Sulu archipelago and within the archipelago; that the Government of his Majesty the King of Spain admits that it cannot guarantee the security of commerce at unoccupied places of the archipelago in return for duties and dues paid, but will guarantee perfect security to the ships and subjects of Great Britain, Germany and the other powers at places occupied by said Government, and provide the establishments necessary for the protection of their trade, the Spanish Secretary of State remarks that there is no reason why said ships and subjects should be exempted, at places occupied by Spain, from the formalities, general regulations, and ordinary duties, whose nature will be explained in the present Protocol.

The undersigned representatives of Great Britain and of Germany refer, on their part, to the Notes and official communications sent by them on this matter to the Spanish Government, and requesting the latter to acknowledge the absolute liberty of commerce and trade in all parts of the Sulu archipelago, said acknowledgment having been mentioned by the Spanish Government in the Notes of April 15, 1876.

In consequence of what precedes and as the result of their conferences, the undersigned have agreed on the following declarations:

I

Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the Sulu archipelago and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations:

II

The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another within the Sulu waters, or from such a point to any other point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, which, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.

It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration III, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be liable to any tax, duty or payment whatsoever, or any sanitary or other regulation.

III

In the places occupied by Spain in the archipelago of Sulu the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part, to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, while it is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices andemployees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But, in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the official journals of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid. It remains agreed that no ship or subject of Great Britain, Germany and other powers shall be required to call at one of the occupied places, when going to or from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise shipped to an unoccupied place in the archipelago.

IV

The three Governments represented by the undersigned pledge themselves respectively to publish the present declarations and to have them strictly respected by their representatives, consular agents and commanders of the naval forces in the seas of the Orient.

V

If the Governments of Great Britain and Germany do not refuse their adhesion to the present Protocol within 15 days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present Declarations shall then come into force.

Manuel Silva,Secretary of State of His Majesty the King of Spain.

Done at Madrid, the 11th of March, 1877.

A true copy.—Madrid,April 2, 1877.—A true copy.—The Subsecretary,Francisco Rubio.

Appendix XXThe Protocol of Sulu of 1885, between Spain, Germany, and Great Britain, March 7, 188572General Government of the PhilippinesRoyal OrderForeign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.Manila, June 17, 1885.—To be executed and published in the Official Gazette.Terrero.A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:IThe Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.IIAs expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.IIIThe Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”IVThe Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.VThe Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.

Appendix XXThe Protocol of Sulu of 1885, between Spain, Germany, and Great Britain, March 7, 188572

General Government of the PhilippinesRoyal OrderForeign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.Manila, June 17, 1885.—To be executed and published in the Official Gazette.Terrero.A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:IThe Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.IIAs expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.IIIThe Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”IVThe Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.VThe Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.

General Government of the Philippines

Royal Order

Foreign Office.—No. 312.—Excellent Sir: The Secretary of State sends me the following communication on March 29th, 1885:—Excellent Sir: I have the honor to forward you a translated copy of the protocol between Spain, Germany and Great Britain, the latter two nations recognizing the sovereignty of the first over the archipelago of Sulu, signed in Madrid on the 7th of March, 1885.—I send you this communication by Royal order, and enclose a copy of the treaty referred to. God keep your Excellency many years.—Madrid, April 8, 1885.—Tejada.

Manila, June 17, 1885.—To be executed and published in the Official Gazette.

Terrero.

A seal which says: Office of the Minister of State.—Translation.—The undersigned, his Excellency Señor José Elduayen, Marquis of Pazo de la Merced, Minister of State of his Majesty the King of Spain; His Excellency Señor Count Solms Sonnerwalds, Envoy Extraordinary and Minister Plenipotentiary of his Majesty the Emperor of Germany, and His Excellency Sir Robert B. D. Morier, Envoy Extraordinary and Minister Plenipotentiary of her Britannic Majesty, authorized in due form to carry on the negotiations followed in London and Berlin during the years 1881 and 1882 by the representatives of his Majesty the King of Spain with the Governments of Great Britain and Germany, for the purpose of obtaining from these two powers the solemn recognition of the sovereignty of Spain over the archipelago of Sulu, have agreed on the following articles:

I

The Governments of Germany and Great Britain recognize the sovereignty of Spain over the parts which are effectively occupied as well as over those which are not yet occupied, of the archipelago of Sulu, whose limits are established in Article II.

II

As expressed in Article I of the treaty signed on September 23, 1836, between the Spanish Government and the Sultan of Sulu, thearchipelagoof Sulu includes all the islands between the western extremity of the island of Mindanao on one side and the mainland of Borneo and the island of Palawan on the other, except those mentioned in Article III. It is understood that the islands of Balabak and Kagayan Sulu belong to the archipelago.

III

The Spanish Government renounces, as far as regards the British Government, all claims of sovereignty over the territories of the mainland of Borneo which belong or may have belonged to the Sultan of Sulu, including the neighboring islands of Balambangan, Banguey, Malawati, and all those comprised within a zone of three maritime leagues from the coast, and which are part of the territories administered by the company known as “The British North Borneo Company.”

IV

The Spanish Government pledges itself to carry out in the archipelago of Sulu the stipulations contained in Articles I, II, and III of the protocol signed in Madrid on March 11, 1877, viz.: (1) Commerce and direct trading by ships and subjects of Great Britain, Germany and the other powers are declared to be and shall be absolutely free with the archipelago of Sulu and in all parts thereof, as well as the right of fishery, without prejudice to the rights recognized to Spain by the present Protocol, in conformity with the following declarations: (2) The Spanish authorities shall no longer require ships and subjects of Great Britain, Germany and the other powers, going freely to the archipelago of Sulu, or from one point to another point in the world, to touch, before or after, at any specified place in the archipelago or elsewhere, to pay any duties whatsoever, or to get a permit from said authorities, who, on their side, shall refrain from obstructing or interfering in any way with the above mentioned trade.

It is understood that the Spanish authorities shall in no way and under no pretense prevent the free importation and exportation of all sorts of goods, without exception, save at such places as are occupied, and in accordance with Declaration 3, and that in all places not occupied effectively by Spain, neither the ships and subjects above mentioned nor their goods shall be subject to any tax, duty or payment whatsoever, or any sanitary or other regulation. (3) In the places occupied by Spain in the archipelago of Sulu, the Spanish Government shall be empowered to establish taxes and sanitary and other regulations, while said places are effectively occupied; but Spain pledges herself, on her part,to provide in such places the offices and employees necessary to meet the requirements of commerce and the application of said regulations. It is however expressly understood that the Spanish Government, which is resolved to impose no restrictive regulations in the places occupied by it, pledges itself voluntarily not to establish in said places taxes or duties exceeding those provided in the Spanish tariffs or in the treaties or conventions between Spain and any other power. Neither shall it put into force in said places exceptional regulations applicable to the commerce and subjects of Great Britain, Germany and the other powers. In case Spain should occupy effectively other places in the archipelago of Sulu, and provide thereat the offices and employees necessary to meet the requirements of commerce, the Governments of Great Britain and Germany shall not object to the application of the rules already stipulated for places occupied at present. But in order to avoid the possibility of new claims due to the uncertainty of business men in regard to the places which are occupied and subject to regulations and tariffs, the Spanish Government shall, whenever a place is occupied in the Sulu archipelago, communicate the fact to the Governments of Great Britain and Germany, and inform commerce at large by means of a notification which shall be published in the Official Gazettes of Madrid and Manila. In regard to the tariffs and regulations stipulated for places which are occupied at the present time, they shall only be applicable to the places which may be subsequently occupied by Spain six months after the date of publication in the Official Gazette of Madrid.

It remains agreed that no ship or subject of Great Britain, Germany and the other powers shall be required to call at one of the occupied places, when going to or coming from a place not occupied by Spain, and that they shall not be liable to suffer prejudice on that account or on account of any class of merchandise addressed to an unoccupied place in the archipelago.

V

The Government of her Britannic Majesty pledges itself to see that there is entire freedom of commerce and navigation, without distinction of flags, in the territory of North Borneo administered by the “British North Borneo Company.”

If the Governments of Great Britain and Germany do not refuse their adhesion to the present protocol within fifteen days from this date, or if they notify their acceptance before the expiration of said period, through their undersigned representatives, the present declarations shall then come into force. Done at Madrid the 7th of March, 1885.—Seal.—(Signed) J. Elduayen.—Seal.—(Signed) C. Solms.—Seal.—(Signed) R. B. D. Morier.

Appendix XXIDecree of the General Government in regard to payment of tribute by Sulus, March 1, 189473Office of the Governor-General of the Philippines,Manila,March 1, 1894.In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.AllowancesTo the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.To be communicated.Blanco.

Appendix XXIDecree of the General Government in regard to payment of tribute by Sulus, March 1, 189473

Office of the Governor-General of the Philippines,Manila,March 1, 1894.In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.AllowancesTo the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.To be communicated.Blanco.

Office of the Governor-General of the Philippines,Manila,March 1, 1894.

In view of the obligation incurred by the Sultan of Sulu by virtue of which the Moros of all the Sulu archipelago have to pay from the first day of January of next year, onerealeach, as a tribute of vassalage; and since it is necessary to organize this service in a regular manner and in harmony with the customs of the races living there, I decree the following:

1. The Sultan of Sulu shall direct at once all the Datus and Chiefs of the Mororancherias74to make up lists of the names of the inhabitants composing each aggregation, giving therein, besides the names, the status of each individual.

2. These partial lists shall be fused in one single general census which the Sultan of Sulu shall deliver to the politico-military governor of that archipelago before October 1, of the current year.

3. The interpreters of Jolo, Siasi, Tata’an, and Bangao shall assist the Sultan in the work of making up these lists and shall translate them into Spanish; and for this extra work they shall receive the allowances designated below, the amounts being deducted from the total proceeds of the liege-money above referred to.

Allowances

To the interpreter of Jolo₱20per month.To the junior linguist of Jolo₱ 6Do.To the interpreter of Siasi₱ 8Do.To the interpreter of Tata’an₱ 8Do.To the interpreter of Bangao₱ 8Do.

4. As soon as the lists are completed and have been examined by the politico-military governor of Sulu, certified copies shall be sent to this office.

5. The collection of the tribute shall be made by means of certain specialcedulas, which in due time will be furnished to the Sultan for distribution, who will collect the amounts paid in and deliver them over in specie at the office of the politico-military governor of Sulu.

6. The total proceeds from the said tribute, after deducting the amount of the allowances to the interpreters, shall be devoted for the present to the development of the establishments of Jolo, and especially to the construction of roads.

To be communicated.

Blanco.

Appendix XXIIRoyal communication relative to the rights of foreigners on the pearl fisheries of Sulu75Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.To what extent should Spain exercise this right?On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

Appendix XXIIRoyal communication relative to the rights of foreigners on the pearl fisheries of Sulu75

Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.To what extent should Spain exercise this right?On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

Manila,December 25, 1895.His high Excellency theMinister of Colonial Affairs.

Excellent Sir: In compliance with the Royal order communicated under date of the 23rd of October last, I have the honor to send to your Excellency a copy of the previous record of investigations transmitted by the office of this General Government, together with the report of the office of the secretary, the remittance of which your Excellency requests.

The inquiry formulated by the politico-military governor of Sulu, arising out of a resolution of the fishery board of the naval station relative to the order prohibiting foreign subjects from engaging in the pearl fisheries in the waters of the Sulu archipelago, did not call for a speedy resolution nor a close study, it being sufficient to bring the matter to the knowledge of your Excellency without entering deeply into the question involved, in order not to prejudice the resolution of the same, leaving to the supreme judgment of his Majesty’s Government the entire appreciation of its reach and consequences, as the only authority acquainted with the demands of our international relations and the influence thereon of a decision in regard to a matter of such recognized importance as is that of the interpretation to be given to Declaration I of the Sulu Protocol of May 11th of 1877, contained in Article IV of the Protocol between Spain, Germany, and Great Britain, signed in Madrid on March 7th, 1885:—hence the brevity of the data contained in the communications above referred to and even the forbearance of this office from expressing a concrete opinion (in any case, not called for) in regard to a question as vital as it is complex. But circumstances, which are always superior to every will and every calculation, now make prompt action necessary, and not only forbid any delay, but impose upon this General Government the duty of emitting an opinion which shall complement the data furnished by the office of the secretary of the same, which data were less extensive and explicit than they would certainly have been had not a respect for the free initiative of the Supreme Government acted as a restraining influence. The incident arising out of the presence in the city of Jolo of the British subject Mr. H. W. Dalton,from Sandakan, awaiting the arrival of a fleet of boats of light tonnage belonging to the English concern, The Pearling and Trading Co. Ltd.,76of which he is the representative for the purpose of using the same in the mother-of-pearl shell fishery, which fact I communicated to your Excellency by cablegram on the 3rd of the current month, makes more urgent the sovereign decision in regard to the concrete point as to whether foreign subjects are allowed to engage in the pearl fishery in the archipelago of Sulu.

In the judgment of this office (which has, on various occasions, inspired only by a regard for the best interests of the nation, expressed the opinion that the Sulu Protocol is too prejudicial to the said interests to permit of the points of doubtful interpretation in the same being interpreted liberally), the point in regard to the right of fishery which foreigners lay claim to exercise freely in waters under the jurisdiction of our sovereignty, is not a doubtful one at all, but is entirely contrary to their pretensions. The claims are founded, according to the statements of those who agree with the views which they involve, in Declaration I of the said Protocol of 1877, reproduced in the Protocol of 1885 and in that signed in Rome in the same year, relating to the Caroline and Pelew Archipelagoes.

This declaration runs as follows—ratified by Article IV of the second of these important diplomatic documents:

The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.

The direct commerce and trade of boats and subjects of Great Britain, of Germany, and of the other powers, is declared, and shall be, absolutely free in the archipelago of Sulu and in all its parts, as also the right of fishery, without prejudice to the rights recognized as belonging to Spain in the present Protocol, in conformity with the following declarations * * *.

III. At points occupied by Spain in the archipelago of Sulu, the Spanish Government may establish imposts, and sanitary and other regulations of whatever kind, during the effective occupation of the said points * * *.

From the transcript it is evident that Spain may regulate the exercise of the right of traffic and commerce, not with the purpose of restricting, and much less of denying, the principle of commercial liberty recognized in Declaration I, but with that of conditioning the exercise of that right in such a way that her own rights as a sovereign nation shall not be infringed. And what she may do in regard to mercantile trade, with greater reason she may and should do in everything referring to the right of fishery, a right which is declared only in general terms, and one of which the protocol does not treat except in making the affirmation of the principle itself, whereas in regard to commerce, it descends to minute details.

And this could not be otherwise, for anything else would be equivalent to impairing the sovereignty of Spain; and this, in an agreement in which this sovereignty is openly recognized and proclaimed, would pre-supposea contradiction so palpable and absurd that it is not worth while even to discuss it.

Spain, as a sovereign and independent state, holds and exercises her sovereignty not only in her territories and on the coasts of the same, but in her jurisdictional waters, and can, therefore, regulate the exercise therein of any right granted to foreign subjects, and may, even, in the exercise of her sovereignty, prohibit the enjoyment of such right altogether; this is an indisputable principle of international law, though there is nothing to prevent a state from limiting the same in favor of another or other states; but it is asine qua noncondition to this that there shall be an express and clear declaration of her will on this point, and no one can reasonably affirm that Spain has made in the Sulu Protocols, neither in that of 1877, nor in that of 1885, a total or partial surrender of this right in regard to that of fishery; there is, it is true, a declaration in general terms that the fisheries are absolutely free in the archipelago of Sulu; but this absoluteness of the principle is immediately qualified by the condition that it shall be without prejudice to the rights recognized as belonging to Spain in the protocol, and it has already been pointed out that one of these rights—the principal one and that which contains all the others, the right of sovereignty—is proclaimed and recognized at the head of the agreement. Outside this declaration in general terms, there will not be found in all the protocol a provision or regulation referring to the exercise of the right of fishery and much less a concrete and express declaration on the part of Spain that she will permit the exercise thereof freely on her coasts and in her territorial waters. To permit of this a concrete, clear, and definite declaration would be necessary, such as is to be found in the Morocco Treaty, signed on November 30, 1861, Article 57 of which establishes qualifiedly “That Spanish subjects shall have a right to fish along the coasts of the Moroccan Empire;” and even so, in Article 60 of the same treaty, it is stipulated that, in order to facilitate the coral fishery, in which the Spaniards engage on the coast of Morocco, fishers shall pay the sum of 150 Spanish dollars for each coral fishing boat, and that through the representative of Spain they shall request permission from the minister of foreign affairs of His Majesty the Sultan who shall issue the necessary authorization.

From which it may be seen that even in the case of declarations in regard to the right of fishery which are concrete, clear and definite, there is needed, for the free exercise of the same, something more than a declaration in general terms, such as is that contained in the Sulu Protocol of 1877.

Furthermore, it is always customary in international agreements which refer to fishery rights to lay down regulations and provisions which shall regulate the exercise of such rights, as is proved by a multitude of agreements, among which are: that already cited of Morocco, that of February18th, 1886, between Spain and France regarding the fishery and navigation of the Bidasoa, in which the right of oyster fishing is restricted, its absolute prohibition being made possible; as also that of 1889 ratifying the preceding one, the Portuguese convention of March 27th of 1893 and the coast police and fishery regulations; as well as that of August 22nd of 1894, in regard to the fisheries in the waters of the Algarbes, etc.; all of which is well known by the illustrious Government of His Majesty, and attention is called to it here only in support of the opinion maintained, namely, that the right to authorize, condition, restrict, and even prohibit the engagement in fishery on its coast and in its jurisdictional waters is inherent in the sovereignty of an independent state; and if it has this right in regard to fisheries in general, with greater reason must it preserve and exercise the same in regard to oyster fisheries, by reason of the changes which may be produced in the sea bed, and even for the purpose of preserving the breeding grounds of the precious pearl-shell mollusk, theAvicula Margaritifera, the banks being the property of the nation, and like all its territory, inalienable and non-prescriptible; both so that they shall not be exhausted and that their exploitation may be reserved for the national industry.

From the preceding, written with less detail than would have been the case had the pressure of time permitted, it may easily be inferred that, in the opinion of this General Government, Spain in spite of Declaration I of the Sulu Protocol—perhaps it would be more correct to say, by virtue of that very declaration, the terms of which really determine the meaning of Declaration III and Article I of the Treaty—preserves intact her right as a sovereign nation to restrict, condition, and even prohibit engagement in the oyster fishery on her coasts and in her jurisdictional waters, without further limitations than those which she may deem expedient to self-impose.

Admitting her rights as a sovereign state, there arises a question of a political nature, which the circumstances above indicated convert into a problem demanding an early resolution.

To what extent should Spain exercise this right?

On this point, the views of the General Government will be expressed as concisely as possible and with the soberness demanded both by the respect due to the high prerogatives of the public authorities and by an ignorance of many of the elements which enter into the question, without a knowledge of which it is difficult to determine to what extent it is expedient to restrict the exercise of the right to engage in the oyster fisheries which foreign subjects claim to exercise freely in the Sulu archipelago, a pretension which this General Government regards as entirely opposed to the rights of Spain and her moral and material interests in the Far East. Our prestige with the Malay races here, our moral influence over these semi-civilized Mohammedan people, who recognizeno right or supremacy but that of might, demand that Spain, as a colonizing nation, shall maintain the integrity of her sovereignty and shall not seem to be subjugated to the will of other Powers, as would appear if, in her territories and on her coasts, with the knowledge and permission of her authorities and of her war ships, and without even heeding them, foreigners should perform acts which, like that of engaging in the mother-of-pearl fishery, being contrary to our material interests, cannot be carried out without paying tribute to the Moro sultans and chieftains themselves.

There is no doubt that the need for preserving cordial relations with Germany and England and for maintaining the most perfect understanding between the European powers in anticipation of some concerted action in regard to the Empires of China and of Japan, which will render necessary in the future the expansive policy of the latter towards the south, as well as the hegemony claimed by the latter in the Orient, counsel a circumspect international policy and a moderate exercise of our sovereign rights in the archipelago of Sulu; and for this reason, perhaps it would be inexpedient to forbid the right of fishery to foreign subjects, as such action would certainly give rise to diplomatic questions and remonstrances, which should be avoided at any cost; but this General Government deems it indispensable to condition and regulate the exercise of this fishery right, especially in so far as it relates to the pearl-producing oyster, the exploitation of which should be governed by considerations of our prestige and of the advantage and benefit of our material interests. Supported therefore by our right of sovereignty, by international practice, and by the terms of Declarations I and III of the Protocol of 1877 and of Articles I and IV of that of 1885, there should be issued certain coast police and fishery regulations for the Sulu archipelago, laying down clearly the relations which are to exist between the Spanish Government and foreign subjects engaging in the fishery industries along our coasts and in our jurisdictional waters; which industries should not be engaged in, especially in the case of the oyster, without the necessary authorization of the Spanish authorities, and after the payment of the corresponding industrial patent or license, or of the dues which it may be deemed expedient to exact.

Much more might be said in regard to this important question, as unexpectedly presented as it is urgent of resolution, given the conditions created by the claim of the British subject Mr. H. W. Dalton; and this General Government appreciates fully the deficiency of its suggestions, which will be advantageously supplemented by the great wisdom of his Majesty’s Government, its exalted patriotism, and the solicitous care that it gives to everything touching the high interests of the nation, by which elevated sentiments they are inspired.

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