ill
pending, a view which seems fully warranted since Portugal possessed no
right to treat any traffic as contraband before war had begun. A
petition was circulated at Pretoria advising the Government to
discontinue negotiations pending with England looking to a peaceful
settlement of the issues between the two Governments. Although this step
was not taken, the protestations made by the Transvaal seem to have had
their effect upon the Portuguese authorities, for upon the outbreak of
war the banks at Lorenzo Marques continued to accept Transvaal coin, and
after the first flurry caused by the transition from peace to war the
Transvaal notes were accepted at their face value.

By the middle of December the English Government had begun to view the
condition of affairs at the port of Delagoa Bay and the town of Lorenzo
Marques with grave dissatisfaction. It was publicly alleged that Lorenzo
Marques was nothing more nor less than a base from which the Transvaal
obtained everything that it needed. Further than this, it was declared
that the town was the headquarters of Transvaal agents of every
description who were in daily communication with their Government and
with Europe. The English authorities felt themselves helpless to prevent
the importation of machinery and other material required for the mines
which were worked by the Transvaal Government. Even explosives for the
government factory and actual ammunition reached the Transvaal by way of
Lorenzo Marques because of the inability of the English cruisers to make
a thorough search of foreign vessels bound for a neutral port and
professedly carrying foodstuffs. British shippers alleged that while
they were prohibited from trading with the enemy foreign shippers were
reaping the profits and materially aiding in the prolongation of the
war.

It later developed that the apparent neglect on the part of Portugal to
observe a strict watch over the character of goods allowed to pass
through to the Transvaal was not entirely due to the governmental
attitude at Lisbon. It seems that the Dutch consul at Lorenzo Marques
had taken over in the way of friendly offices the interests of the
Orange Free State as well as those of the Transvaal. It was also
ascertained that the consul of Holland was the manager of the local
agencies for a number of steamboat companies, among them the Castle
Packet Company, the African Boating Company, the British India, and the
British and Colonial Steam Na