ANOTHER INQUIRY ON NEW GUINEA TIMBER LEASE CASE

Grey River Argus, 23 February 1949, Page 5

ANOTHER INQUIRY ON NEW GUINEA TIMBER LEASE CASE

Allegations Against Federal Minister (Rec. 8.10). SYDNEY, February 21. The Royal Commission appointed to inquire into allegations that the Minister of External Territories, Hon. Mr E. J. Ward, received part of monies paid by a Brisbane timber firm, Hancock and Gore, for a timber lease in Bulolo Valley, New Guinea, to-day heard evidence by Edward Farrell, mining engineer, aged 60. Witness said that he stopped Mr Ward outside the latter’s office and said he was dealing with John Smith Garden in the Bulolo Valley timber deal. He alleged that Mr Ward replied: “I know all about it. Garden has full power to deal with the matter. You follow out any instructions he gives you very carefully”. Farrell said that the head of the Army Investions Directorate had offered the assistance of his department in any action that might be taken to obtain timber for Australia from New Guinea, and placed an office at the disposal of members of the syndicate and representatives of Hancock and Gore for discussions on the deal. Questioned by the Royal Commissioner, Mr Justice Ligertwood, Farrell said that he had wanted a concession for himself, but Garden told him that the Minister would not grant it to him, but that he could grant it to Raymond Parer for services rendered in New Guinea. Farrell said that during a police court case last year he (Farrell) heard the allegation for the first time that Harcourt Garden (son of J*. S. Garden) was acting as a dummy for Mr Ward in the syndicate. J. S. Garden had confirmed this, and had added that Mrs Ward was a fifth party in the syndicate.

Witness said that he (Farrell) later said to Garden: “I don’t believe that Ward got anything! I don’t believe that your son is ‘dummying’ for anyone. It seems to me that, if you and Ward are trying to put it over Hancock and Gore, you have only put it over Ward”. Witness said that the company was to buy Ray Parer’s concession for £lOO,OO0 —£12,500 to be in cash on the signing of an agreement, and the rest over a period. Later, this was altered, with consent to a further payment of £37,000. The Commissioner: “What were yot» selling”?—Witness.: “A concession which, we believed, Garden could, and would obtain for Parer”.. The Commissioner:. “That is what you sold—Garden’s promise”’—Witness: “He made it clear that he was acting with full power and authority of the Minister”. Mr W. J. Shand, K.C., who is assisting the Commission, questioned witness, who said that he believed that Garden had told him that if Hancock gnd Gore paid £37,000, the Minister would give a concession to them free of royalties, but he (witness) would not swear to this..