Lord Derby, Secretary of State for the Colonies, was aware of the possibility of Germany assuming jurisdiction over Angra Pequena in the absence of an assurance that the British Government was prepared to undertake the protection of German subjects; but the British Government shrank from the idea of annexing the territory, and endeavoured to saddle the Cape Government with the responsibility of giving the undertaking asked for by Germany.

The Cape Government was in no position to assume such a responsibility, though they did not hesitate to offer to do so as soon as a cabinet meeting could be called to decide on the matter—but when it was too late.

On the 30th January, 1884, the Cape Government, in a minute signed by John X. Merriman, recommended the annexation to the British Empire of the whole of Great Namaqualand and Damaraland from the Orange River to the Portuguese border, the interests of the Cape Colony being chiefly in the arming of natives by gun-running through the port at Angra Pequena.

Official and private notifications were sent to the British Foreign Offices of the intention of Germany to take over the suzerainty of South West Africa in defiance of Great Britain's claims; but our Government, fondly embracing the idea that Germany had no intention of acquiring the territory but was only solicitous for legal protection of private property, still declined to act until the Cape Government expressed their readiness to accept the responsibility and cost.

On the 24th April, 1884, the day which has recently been described in German publications as "the Birthday of the German Colonial Empire," Bismarck telegraphed to the German Consul at Cape Town as follows:

"According to statements of Mr Luderitz, Colonial authorities doubt as to his acquisitions north of Orange River being entitled to German protection. You will declare officially that he and his establishments are under protection of the Empire."

This meant the annexation to Germany of the whole territory; but communications continued between the Home and the Cape Colonial Governments.

In the Reichstag on the 23rd June, 1884, Bismarck showed his hand for the first time; and on the point of infringement of Great Britain's "legitimate rights," stated that no such infringement could be pleaded inasmuch as in English official documents the Orange River had repeatedly been declared to be the north-western border of the Cape Colony.

Bismarck further announced that it was the intention of the Government to afford the Empire's protection to any "settlements" similar to that of Luderitz which might be established by Germans. He added in his address to the Reichstag that "if the question were asked what means the Empire had to afford effective protection to German enterprises in distant parts, the first consideration would be the influence of the Empire and the wish and interests of other Powers to remain in friendly relations with it."