THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, JULY 30, 1924. NAURU ISLAND.

New Zealand Herald, Volume LXI, Issue 18774, 30 July 1924, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS. WEDNESDAY, JULY 30, 1924. NAURU ISLAND.

A remineeb has just been given of the unusual circumstances in which the British Empire Nauru Island. Britain is mandatory under the League of Nations. Britain, Australia and New Zealand, who purchased the rights of the old Pacific Phosphate Company, have agreed to be conjointly responsible for the administration, to act together in working the phosphate deposits, and to dispose of the output strictly in accordance with their undertaking. Nauru Island was much before the public in 1919. Since then, though phosphate rock has come steadily to both Australia and New Zealand, the conditions under which it is mined have been just as steadily forgotten. This is proved by the suggestion, mentioned in cable messages, that the tripartite agreement expires next year. It is very justly replied that the agreement between Britain, Australia and New Zealand is perpetual; at least the text contains no suggestion of termination. Certain xiridertakings are due for revision next year, when five years will have elapsed from j the commencement of the arrange-' I. ment. That, however, is all. Circumstances in which the agreement itself might terminate were evidently I never contemplated, for no provision was made to meet them. That the doubts and questions discussed in a cablegram published to-day, should ever have arisen shows that the manner in which Nauru phosphates were secured for the Empire is not fully remembered. It is instructive, therefore, to recall the incidents and agreements' leading to the position which obtains to-day.

When war broke out, Nauru Island was a German possession. The phosphates, however, were being worked by the Pacific Phosphate Company, a predominatingly British concern. The Germans speedily expelled the British staff, but Australian troops soon afterwards seized the island, garrisoning it until the end of the war. When Nauru came up for disposal at the Peace Conference, there was only one factor making it valuable, the phosphate deposits. It'has-no strategic importance, and no attractions for a colonising people. After some discussion Britain was made mandatory, but by a private and voluntary agreement allowed Australia and New Zealand certain rights. The aßsets-of the Pacific Phosphate Company were purchased by the three countries, the price being £3,666,500. Great Britain found 42 per cent, of the sum, Australia 42 per cent, and New Zealand the remaining 16 per cent. Hard things have been said about the mandatory power retaining exclusive right to exploit the only source of wealth in Nauru. The justification is that a heavy price was paid for a concession held by a private commercial orgs lisa Hon from the German Government. Failure to realise this was the cause of some advene comment passed by the Permanent Mandates Commission in 1922. The situation is now' generally understood, and the criticism has abated. The fulfilment of a : dual role by a section of the Empire may have excused misunderstanding. ' Once the position iis clearly appreciated there should Ibe no reason to suspect that the rights of a mandatory are being in any way abused. The natives* of Nauru are few in number. Their cultivated land is not affected by the mining of the phosphate rock. A royalty is paid them on the outpU^__which they would be quite incapable of handling themselves —and a further Slum is set aside in trust for educational and other social purposes. This is done voluntarily by the administrators.

The practical work of administration is in the hands of, Australia at present. < That position is due to terminate next year. Two sections of the agreement accepted by Britain, Australia and New Zealand are of first importance. It was arranged that the parties should, in turn, be responsible for the administrative work entailed by the mandate. Australia accepted the criarge for the first five years, but it was not decided which of the other two parties should succeed the Commonwealth. That question will have to be settled soon. A further agreement was that Britain, Australia and New Zealand should have first claim to the phosphate output, in the proportion of 42 per cent. each to the first two and 16 per cent. to New Zealand. If any one of the

7 >~.;■.:•.'■'■-;•— :—,': ...... . ... v . •■;.-,■:..;■,;.;■; three did not take the full allotment, between the other two proportionately to their original"percentage share. Surplus output beyondthe needs of the three was to be sold to outsiders at the best price obtainable. That clause also was given a currency of five years, with the stipulation that it was to be reviewed at the end of that

period. Here again is a question to be considered next year. In these two are comprehended the only variable portions of the agreement made by the three parties, and ratified by their respective Parliaments. It is not surprising, therefore, to find cable denials, that a deadlock threatened because the British Government did not agree with the arrangement. Even if Britain does not at present require the phosphates, the advantages of having them at call are apparent. Also there is more than £1,000,000 of British money concerned. The present Government may not agree with all details of the administration, especially, perhaps, the system of indentured labour. The remedy is simple. Britain can succeed Australia, and herself administer the island. That may happen.. What is unthinkable is any renunciation by Britain of the agreement under which Nauru Island is held and the phosphates are worked.