belonged by right to Venezuela. But no question of adverse holding or prescription can arise except where one Power has occupied territory by right belonging to the other; and, 5 except in such cases, present possession, however recent, cannot be disturbed. Great Britain denies that her present occupation (extending to the Schomburgk line) does in fact include any greater extent of territory than was 10 occupied or politically controlled by the Dutch and by Great Britain since her succession to the Dutch title. The only change has been that in the last fifteen or twenty years her occupation of the outlying districts has been marked by more 15 complete political administration. But even if that were not so Her Majesty's Government would be entitled to retain the whole territory up to the Schomburgk line, on the simple ground that at the date of the Treaty of Arbitration they 20 were in possession, and that the territory in question cannot be shown to have ever belonged either to Spain or Venezuela. There is no ground for the contention (if it becomes material to consider it) that settlers 25 who have ventured into the disputed territory since 1880 in the interior, and 1884 on the coast, are entitled to no consideration, because they went there in the face of distinct warning from both Governments, and with open eyes assumed 30 all the risks involved. In 1863 and 1867, that is to say, while the Arrangement of 1850 was subsisting, the Colonial Government refused to grant land or to promise protection to certain prospectors in the Cuyuni. But if the instruc35 tions for the guidance of the Governor in the matter of this Arrangement are referred to, it will be seen that he was to act, on any occasion on which action might be necessary and could not be avoided, as if the territory within Sir 40 Robert Schomburgk's boundary were British, and he was further instructed to prevent any lodgment by the Venezuelans. Since the time. when Venezuela herself ceased to observe the Arrangement of 1850, the British Government has 45 given both landed title and protection to the settlers up to the Schomburgk line. The speech of the Lieutenant Governor in 1887, which is referred to in the Case for Venezuela, merely pointed out that, in the event of any 50 part of the territory on which grants were being made becoming Venezuelan, no claim for The Position of Settlers in Disputed Territory. Venezuelan App. III, pp. 339, 340. British CounterCase, App., p. 305. Venezuelan Case, Pp. 183 British Counter compensation by the grantees would be recognized by Her Majesty's Government or the Colony, but that Her Majesty's Government would endeavour to obtain the recognition of their titles by Venezuela. The position of the grantees, how- 5 ever, was made quite clear by a despatch from the Secretary of State to the Governor later in Case, App., p. 312. the same year, which laid it down that unconditional grants of land might be made within the Schomburgk line without any reservation and 10 on the understanding that the British title to the territory within that line could not thereafter be the subject of question. The Early Gold Discoveries. Venezuelan Case, Venezuelan Case, Development of the Coast Region. Venezuelan Case, British Case, p. 131. British App. VI, British App. VII, The narrative of the early gold discoveries, which occupies pp. 180 and 181 of the Venezuelan 15 Case, need only be noticed for the purpose of contradicting such misstatements as the allegation that the Venezuelans already had extensive settlements on the Yuruari in 1850, or that prohibitions by the Venezuelan Government prevented 20 attempts by the British Colony to open up the fields; or, again, that the Venezuelans were in possession of any part of the Cuyuni or Massaruni. The Case on behalf of Venezuela represents that the development since 1950 of British settle- 25 ment in the territory in dispute is entirely due to the gold discoveries, and is limited to the gold areas. This is not admitted. The facts are as follows: Between 1850 and 1884 the British Govern- 30 ment did not make grants of land for settlement in the country beyond the Moruka; but even during this period, some settlers from the British Colony cleared, drained, and planted land within this district. Mr. im Thurn 35 in the course of his journey into the district in 1883 found four settlements properly drained on which the far ners were residing. At no tine did the British Government abandon their claim to jurisdiction within this 40 district. In 1884 in consequence of the purported grant by Venezuela of the concessions to the Manoa Company, Great Britain held herself liberated from the Arrangement of 1850, and immediately, 45 that is to say three years before the discovery of gold in this region, resumed full control of the country up to the Amakuru. In 1885 a courthouse was erected on the right bank of that river by the acting Magistrate, Mr. McTurk. This 50 action of the Government at once led to further settlement, although no legal grants were as yet British App. VI, p. 241. P. 241. British App. VI, p. 241. In 1886 there were about thirty-two settlers counted by Mr. im Thurn, mostly upon the 5 Aruka and Morawhana. The plots cultivated varied from 30 to 100 acres in extent, were carefully and excellently drained, and, in short, British App. VI, corresponded in all respects in manner of cultivation and drainage with the agricultural grounds 10 in the Pomeroon. The produce of these plantations was so considerable that sloops were beginning to trade regularly between the Aruka (where one of them was owned) and the Pomeroon and even the Georgetown market. In 1887 15 and in 1888 Mr. im Thurn again drew attention. to the excellent character of the cultivation on these rivers. He reported that he had observed between thirty and forty coolies working at once on one farm; and a map which accompanied his 20 Report for 1888 showed that the farms extended not only throughout the whole course of the Morawhana and far up the Aruka, but that some of them existed at the mouth of the Barima and far up the Waini. 25 Meanwhile the Government were taking active measures to insure the good government of the district. In January 1887, the very year in which the gold discoveries were made, Mr. im Thurn reported that sites had been selected for 30 stations on the Aruka and at Barima Sand. The court-house at Amakuru continued to be used as a third station. In 1888 there were further in course of erection: (1) A station at Baramani for five constables with court-room, lock-up, and 35 accommodation for public officers travelling: (2) On the Waini a rest-house for the temporary accommodation of public officers and police travelling from Baramani to the Waini. There had also been erected at Morawhana a station 40 for seven constables with court-room, lock-up, and quarters for the inspector of police. The stations at Barima Sand and Amakuru were also being maintained. In 1889 preparations were made for the future 45 administration of the territory between the Moruka and the Amakuru as a separate district. Houses were built for the officer in charge of the district, for his clerk, and for a Commissary (Revenue Officer); also a cottage hospital. 50 Pending the rebuilding of the Amakuru station, a police schooner was kept always stationed in British App. VI, p. 243. North-Western District. British App. VII, British App. VII, p. 267. In 1890 the district between the Moruka and the Amakuru was separated from the Pomeroon 10 district, and constituted an independent area under the name of the North-Western District under the charge of Mr. im Thurn as Government Agent. In that capacity he held appointment as Deputy for the heads of all the principal 15 Government Departments in the Colony. He also held a commission as Special Magistrate, and exercised the power of a Government Officer under the Regulations issued under the Mining Ordinance of 1887. The other officials 20 of the district were a Magistrate, two Inspectors of Police (one at Morawhana, the other at Amakuru), a Commissary, a Government Officer, permanently stationed at Baramani, and a clerk to the Government Agent. A sergeant 25 and four constables of police were stationed at Amakuru, a corporal and three constables at Barima Sand, a corporal and six constables at Morawhana, and a sergeant and four constables at Baramani, in all two sergeants, 30 two corporals, and seventeen constables in the whole district. Courts were held once a month at Morawhana and at Baramani. British App. VII, permanently British App. VII, p. 268. British App. VII, British App. VII, p. 281. One of the earliest acts of the Government in the new agency was to legalize the existing settle- 35 ments by the issue of Government grants, and fifteen new allotments for agricultural purposes were also applied for and granted. Agricultural enterprise was, indeed, very active. Between the 31st March, 1890, and 31st March, 1891, 40 eighteen sloops and schooners carried cargoes, mostly of agricultural produce, from Morawhana to Georgetown, making between them, for this purpose, 141 journeys. From what has been said it is clear, that even in 45 1890, British settlement in the North-Western District was by no means a mere collection of camps of gold-diggers. Agricultural development and political administration preceded the gold industry. The first discovery of gold took place 50 in the Barama, a tributary of the Waini, in 1887. The industry fairly started there in 1888. In September 1889 the Waini basin was declared a gold district for the purposes of the colonial laws, and a Government Officer for the collection of 5 the royalty was stationed at the police-station at Baramani. It was not till 1890 that the industry commenced in the Barima, and then at a point 150 miles from the agricultural settlements. By that time the political organization of the 10 Barima and Amakuru, by means of the stations at Morawhana, Barima Sand, and Amakuru, had been established. The rapid progress of the North-Western District continued throughout the year 1890. In 15 August of that year a post-office was started at Morawhana, with a weekly mail to and from Georgetown. New buildings were added to the station at Baramani, including a new house for the Government Officer, with quarters for servants 20 and subordinate officers, and a convenient apartment for carrying out the searching of those returning from the Barama gold-field. A Similar additions were made to the buildings at the Morawhana station. The formation of a 25 new station was commenced at the mouth of the Barama so as to insure that all gold taken from the field should pass the station at Baramani. new station was built on the Amakuru to replace the temporary buildings erected in 1885. A 30 Magistrate, distinct from the officer in charge of the district, was appointed, and a house built for him at Morawhana. Licences for keeping shops, for the sale of exciseable articles, for dogs, guns, and revolvers were collected by the Commissary 35 residing at Morawhana. Hospitals were erected both at Morawhana and at Baramani. A steam-launch was acquired for the service of the Government officials on the rivers of the district, and arrangements made for coaling her at 40 Baramani. The whole of this administrative development took place during the twelve months ending in April 1891. During the same period gold had been continuously worked in Barama, and since 45 November 1890, in Barima also. The number of placer claims applied for in the Waini basin had increased from 87 in April 1890, to 204 a year later. In the Barima they had increased from 3 in October 1890 to 25 in March 1891. The 50 number of registered labourers who had passed on their way to the diggings during the year was, |