NOT CONSULTED.

Auckland Star, Volume L, Issue 209, 3 September 1919, Page 9

NOT CONSULTED.

NAURU ISLAND MANDATE.

SIR JOSEPH'S PROTEST.

INTERLUDE IN DEBATE,

(Special to "Star.") WELLINGTON, Tuesday. The House pricked up its ears when the Prime Minister mentioned Nauru Island in the course of his Treaty ratification speech to-night. He informed members what he has already informed the country about his anxiety to secure, if possible, this island and its valuable phosphate deposits for New Zealand, and explained how the occupation of the island by Australian troops altered our prospects. He went on to say that when Mr. Hughes endeavoured to get sole control of the island for Australia he strongly objected, and first suggested that New Zealand and Australia should hold tho island jointly. Afterwards he suggested that the mandate should be held by Great Britain. "I TAKE ALL RESPONSIBILITY." While Mr. Massey was explaining the terms of the mandate, Mr. Wilford interjected: "Was Sir Joseph Ward consulted."

Sir Joseph Ward: I want to say I know nothing of this matter. I was not consulted.

Mr. Massey: I take all the responsibility.

Sir Joseph Ward: But I have responsi. bility, too.

Mr. Massey: Does the lion., gentleman want mc to say what took place at the first meeting, when it was discussed?

Sir Joseph Ward: Yes; I should like it to be fully'publislied.

Mr. Massey: Well, I am not going to take part in any school-boy quarrel. Sir Joseph Ward: I think any reference to myself should be fully stated.

Mr. Massey: Well, the lion, gentleman was present when the matter was discussed, and Mr. Lloyd George refused to take any responsibility, and handed the matter over to Lord Milner. DONT KNOW THE CONDITIONS. Sir Joseph Ward: I was present at tho meeting. It was an informal meeting. I am not disputing that Mr. Massey was doing his best for New Zealand, but I was not at the meeting when the Nauru agreement was reached. I don't know the conditions of the Nauru agreement now. Directly or indirectly I was not consulted. Until I know what it is, naturally I cannot take any responsibility.

Mr. Massey: The hon. gentleman was not in Paris at the time.

Sir Joseph Ward: It was long before I went away from Paris, and the hon. gentleman knows it. TO PREVENT EXPLOITATION. Mr. Massey proceeded to explain that Mr. Lloyd George handed over negotiations to Lord Milner, who suggested that the only way to prevent exploitation was by buying out the company, and working the island. The Germanowned shares had been sold during the war, realising .£575,000, and it was claimed by tlie British company 1 that they should receive three millions.

Mr. Holland: £3,000,000 for £000,000?

Mr. Massey: Lord Milner suggested that we should join in buying out the company, and, after negotiations, both Mr. Hughes and I agreed. It all depends, of course, on the Government and parliament of each country to complete or repudiate the agreement. Mr. Wilford: Have we power to settle it? Mr. Massey: Yes. VALUE TO NEW ZEALAND. At a later stage in his speech, Mr. Massey returned to the question of declaring his emphatic belief that the importance of Nauru to Ne* Zealand was tremendous. He had ascertained when in London that it would be impossible to obtain supplies of basic slag for New Zealand, so that we had to turn to Nauru phosphates. Therefore ihe paid special attention to securing an interest for New Zealand in these deposits. The agreement provided for the United Kingdom, Australia, and New Zealand sharing in the deposits in the proportion of 42 per cent to the United Kingdom and Australia, and lfi per cent to New Zealand, while liability would be fixed in the same proportion. He believed that when the works were got fairly going it would be possible to export 500,000 tons, of phosphate from Nauru annually. Mr. Myers: What is the estimate of the probable cost? Mr. Massey: Nobody knows. I can't I tell, but the company estimates that their interest is worth three millions.

Mr. Holland: They paid £000,000, ani« want three millions.

Mr. Massey: You arc thinking of the proportion of the German •shareholders', interests, which realised £575,000. Mr. (Holland: No, the amount they •paid in. { Mr. Massey repeated that the company valued "its interests at three millions, but he didn't agree. When the island was taken over competent valuers would he appointed, and not one shilling more than the deposits were worth would be paid.

Mr. Myers: Has a probable estimate of coet per ton been submitted?

Mr. Massey Tepl cd that the company 1 was paying'2s per cent, dividend; It esti-| mated the cost of production at £2 a 1 ton free on hoard. At the expiration of five years, and every subsequent five yeans, there would be a readjustment of supplies to each interested country on the basis of its actual requirementi" of phosphate. He wanted a triennial adjustment, but failed to secure this. He provided that the agreement should be subject to ratification by the New Zealand Government. Sir John Findlay: What will happen if we refuse? Mr. Mas?ey: We will be out of it. The Premier added that there was not the slightest chance of Great Britain requiring anything like half its propor-' tion of 42 per cent, of the Xaurt - "out-; put. It was estimated that deposits; there totalled 48* million tons. j What is the cost? 'Mr. "Witty Is there any truth in the 1 statement that our share'is £600,000?" ! Mr. Massey: That is based on the company's suggestion. They simply said their interests were worth three millions, and an enterprising pressman worked out our proportion at £GOO,OOO. He added that it was estimated in five years' time New Zealand would Tequire 100,000 tons of phosphate annually. "Sew Zealand's proportion, in accordance with requirements, would at the end of five years be determined by three commissioners, one representing each interested country. Nauru was exporting (12.000 tons annually, but once it was developed there would be a tremendous advance |Oft-i__,h output, ___ ~., —____._. .