GERMANY IN THE PACIFIC.

New Zealand Herald, Volume XLII, Issue 12861, 9 May 1905, Page 6

GERMANY IN THE PACIFIC.

FEDERAL SENATOR'S VIEWS. The Sydney Daily Telegraph publishes the first of a series of articles on " Germany in the Pacific," by Senator Staniforth Smith— an authority upon island questions— has just returned from a four months' visit to the Solomon Islands, New Britain, and British New Guinea. The colonisation methods of the Germans aie contrasted with those of the British, and the story of the Hamburg firm of Goddefrey and Son, which at on© time- practically controlled the trade of many of the- island groups, is briefly narrated. The article concludes as follows: —"Since 1884 Germany has voted for the assistance of her colonists and the development of her possessions about £17,000,000, and a.s a result of this large expenditure she has diverted to her colonies a, German population of only 8800—more than half of whom are military men and officials. The total value of the exports and imports of her oversea possessions amount to £3,192,000 perhaps one-half of which is .secured by the Fatherland. But even if Germany monopolised the whole of this trade with her colonies, it would amount to less than one per cent, of her total exports and imports. It can, therefore, be seen that up to the present the hopes of colonisation have not been fulfilled, while the value of Germany's trade with her possessions barely exceeds the subventions annually voted by the Reichstag. But the expenditure of 17 million sterling does not by any means represent the expense to Germany of her colonial possessions. She recognises that colonies without colonists are, in time of war, a source of weakness instead of strength. A nation that cannot plant large industrial garrisons in her colonies, .capable of defending themselves in time of war, must know that directly she meets a nation with a stronger navy than herself, her oversea possessions are lost. It was the recognition of this, rather than for the purpose of protecting her trade and commerce, that has made Germany wring scores of millions of taxation from her subjects in the endeavour to constitute a navy equal to that of any other nation. This and her colonial wars and rebellions have, been the real cost of Empire to Germany. A nation that aspires to have the largest navy and the largest army in the world at one and the same time, imposes upon herself a financial strain which must soon become intolerable. Germany's subjects are taxed to the uttermost, and her budgets .show increasing annual deficits that have to be made up by loans. The marvellous industrial and commercial expansion of Germany has not been stimulated in any way by her colonial policy, the infinitesimal increase of trade obtained from this source is counterbalanced a. hundredfold by the stream of gold' necessary to maintain and protect her costly colonial experiments.

As far as Australia, is concerned, we need have no fear of a, largo German population in the Pacific. What we have to fear is that, as the territory Germany possesses in the Pacific affords excellent harbours, they may Tie used for coaling stations and strategic bases* from which her cruisers could issue in time of war and prey upon our intercolonial commerce, or shell cur coastal towns." ANOTHER DEVELOPMENT. MONOPOLY OF TRADE SECURED. Sydney, May 3. The news, which came as a thunderbolt to local shipping circles, that the Germans have succeeded in capturing the entire trade of German New Guinea, New Britain, and other islands in the German Archipelago for a long term of years, was received by the Nord-Deutscher Lloyd steamer Willehad, which arrived at Sydney yesterday. British shipping has been effectually driven out of the trade, and it. is a foregone conclusion that at an early date the long-established services between Australia and that part of the Pacific will be abandoned.

Briefly stated, the whole of the planters in the German possession of every nationality—British, Germans*, French, Scandinavians, etc. —have signed an agreement, by which they bind themselves to in future ship their copra and other products to Australia and Europe exclusively by the vessels of the Nord-Deutschei Lloyd" Hitherto the British planters, and, indeed, many of foreign extraction, have preferred, despite all obstacles placed in their road, to despatch their copra to Sydney by the Aus-tralian-owned steamers of Messrs.* Burns, Phil]), and Co., Limited, and the bulk of the trade from those possessions has up, to the present been carried in British bottoms'. It is, therefore, evident that the terms offered by the Nord-Deutscher Lloyd are of such a character as to outweigh sentiment, and that in the case at any rate of most of the leading planters the" trade has been handed over to a company with which they are not in sympathy. Benefiting by their experience in the Marshall.group, the German authorities have in this instance avoided the complications resulting from violation of treaty rights, and from the imposition of prohibitive export duties and restrictive trading license fees. A tactful policy has been pursued, and, assisted by subsidies from the German Government, the British have been outmanoeuvred by the Nord-Deutscher Lloyd. From the meagre details so far to hand, the agreement appears to be a perfecuy legitimate commercial bargain, and the arrangement has been conceived and carried out by masterly minds. "tHE TERM OF THE AGREEMENT. The new agreement, is to come into operation on October 1 next, and is to remain in force for a term of live years. The conditions of the contract have not been divulged, but from the fact that British subjects have gone over as a. body to the German company it. is evident that the rates are of a most, advantageous character, ami ate only possible owing to liberal Government assistance.

The scheme was the outcome of a visit to German New Guinea, ami New Britain, of Mr. C. Lege, a representative of the head office of the Nord-Deutseher Lloyd, who proceeded direct to the- islands from Bremen. While the negotiations with the British, German, French, and Scandinavian planters were in progress, nothing was allowed to transpire, and the first intimation received of the steps taken by the Germans to divert tho trade into their channels was brought to Brisbane by the Australian-owned steamer Moresby. The Willehad, however, brings further particulars, from which it is clear that the scheme was so skilfully thought out and executed that it is now too late to take any action to counteract the move made by Germany;. Mr. Lege, tipon the completion of his mission, came on to Sydney on the 23rd ulfc., as a,'passenger from Herbertshohe, by the German Government yacht Seestern, and he sailed from Sydney on Saturday last on his return to Bremen by tho N.D.L. steamer Seydlitz. INTER-ISLAND SERVICE. ! As a further illustration of tho progressive character of the German island policy, it may bo stated that the Nord-Deutscher Lloyd has resolved to establish at once an inter-island service, and two steamers have been selected lor the purpose. The proposal is to employ these vessels in collecting copra from all portions of the German, possessions and convey the trade to Simpson's Ha fen, for transhipment into the regular steamers for Sydney. The steamship Sumatra, o f 584 tons gross, and of 407 tons net, is the larger of the two vessels selected for this purpose. The second vessel appointed to be employed in inter-iski'ud work is the steel screw tug Langeoog, of 142 tons gross, and of 37 tons net. Just before the arrival of the Willehad at Hongkong a new crew for the Langeoog had been sent to Baingkok, and it is anticipated that the vessel is now on her way to New Guinea and New Britain to take up her new work. Simpson's Hafen will be the headquarters of both of these inter-island vessels, and a new slip is now in course of erection for the purpose of periodically docking the vessels for overhaul, thus avoiding visits to Sydney. The Langeoog is to be employed in Blanche Bay, and will cruise along the north coast of New Britain. On the other hand the Sumatra will visit New Ireland and the islands to the north. Practically all the plantations are on the seaboard, and the task of collecting the copra will be divided between the two vessels. Up to the present the planters have employed small craft of their own to forward their trade to Herbertshohe for transhipment, and it is understood that quila * fleet , of cutters, will now. bo disposed of,