DEAR SIRS,

I have the honour to acknowledge receipt of your letter dated 27th March last, referring to certain proposals to the Government from representatives of the mining industry.

In order to understand the natural position it is necessary to state the facts more extensively than given in your letter.

It is wrong to say, as you do in the first paragraph of your communication, that Mr. Lippert came to you with certain proposals from the Government.

It appears also from the second paragraph of the same that Mr. Lippert came to you suo motu with the object, as he informed me afterwards, to see 'if it was not possible to obtain a better understanding between the Government on the one side and the mining industry on the other.' He acted in no wise as the agent of the Government, or in the name of the Government, to make any proposals to you, but only as a friendly mediator to see how far unnecessary differences and misunderstandings could be removed.

When Mr. Lippert came to Dr. Leyds and myself, and informed us that you and other gentlemen were agreeable to his mediation, we at once agreed with his plan, being aware that there was a warm desire and continued struggle on the part of this Government to remove out of the way all friction and trouble, and that in this case especially it was our object to leave no stone unturned to get all differences settled. We were the more anxious to meet you, because his Honour the State President had decided to lay before the Volksraad certain proposals of law, which are of great importance not only for the people of the Republic, but especially for the mining population and industry. We gave Mr. Lippert to understand that should the leaders of the mining industry have no objection to his mediation, we would not be unwilling to make use of his good services in this matter.

Mr. Lippert then went to Johannesburg, and returned to us with the assurance that there was no objection to his acting as mediator, and gave us some of the subjects on which it appeared to him that it was possible to arrive at a friendly understanding.

In consequence of this, and acting on our own initiative, and not as representatives of the Government, Dr. Leyds, Mr. Smuts, and myself, met some of your leading men, as set forth in your letter.

At this meeting we informed you of the intention of the President to alter certain laws for the general good. Only with reference to the franchise we gave you no definite proposal, the matter being then still under consideration. From your side we requested only a more friendly attitude from the Press, as we were convinced that the excessive Press campaign carried on by the newspapers, which are generally considered to be owned by you, or influenced by you, however much they may forward certain interests, still, in the end, did infinite harm to the existing interests of all sections of the population. Through the continual and incessant agitation and creation of suspicion on the part of the papers, the public mind was constantly in a state of insecurity, and the fanning of the race hatred made it impossible for the Government as well as the legislature to improve the relations between the so-called Uitlanders and the old population.

We requested your friendly assistance also in the settlement of the coolie question, not because we wanted to cause friction between you and other foreign governments, but only because the policy which refers to the native and coloured questions is of the utmost importance to South Africa.