NAURU ISLAND,

Star (Christchurch), Issue 12735, 3 September 1919, Page 10

NAURU ISLAND,

| | PREMIERS EXPLANATION, j | DEBATE IN THE HOUSE. [Ft! CM Our CoERESPO.NUEKT.j WELLING'iON, September 2. 1 he House packed up its, curs when t-he I’rifflc .Minister mentioned Nauru Island in the course of his speech on th© ratification of the i’eatv, j reuty tomghit. He informed the House What he has already iniormed the conn trv about his anxiety to secure, it' possible, this island and its valuable phosphate deposits ior New Zealand, and explained how the occupation of the island by Australian troops altered our prospects. Ho went on to say how, when Mr •Hughes endeavoured to get sole control, of tire island for Australia, he stromny objected, and first suggested that New Zealand and Australia should hold the island jointly. Afterwards ho suggested that tne mandate should be held bv Britain. While -Mr Massey was explaining trie terms of the mandate, Mr Wilford interjected; “ "Was. Sir Joseph Ward sulted?”Sir Joseph Ward: 1 want to say I know nothing of this matter. 1 was not consulted. Air Massey; I take all responsibility, Bir Joseph Ward; Hut I have te~ sponsibiliry, too. -Mr Massey; Does, the Right Honourable gentleman want me to say what took place at the first meeting it was. discussed? Sir Joseph Ward ; Yes. I should like, it to be fully published, A! Massey; ■ Well, I am not going to rate part in any schoolboy quarrel* Sur Joseph Ward: I think any reference to myself should bo fully* stated. Air Alassey: Well, the Right Honourable gentleman was present when the matter was discussed, and Air Lloyd George refused to take responsibility and handed the matter over to Lord Milner. Sir Joseph Ward: T was present at the meeting. It was an informal meeting. lam not disputing that Air Massey was doing his best for New Zealand, but 1 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. i Air Massey: The Right Honourable gentleman, was not in Paris at the time. Sir Joseph Ward: It was tong before I went away from Paris, and tile Right Honourable gentleman knows it. Air Massey proceeded to explain that Air Lloyd George handed over the negotiations to Lord Milner, who suggested that the only way to prevent exploitation was by bpying out the company working the island. The Gennan-ownecl shares had been sold during the war, realising £570,0Q0, and it was claimed by the British company that they should receive three millions. Mr Holland; £3,000,000 for £000,000! Mr Alassey; Lord. Milner suggested that we should join in buying out the company, and after negotiations both Air Hughes and I agreed. It all depends, ,■ of course, on the Government and Parliament of each country to complete or repudiate the agreement. Air Wilford: Hnrs we power to settle? Mr Alassey: Yes. VALUE TO NEW ZEALAND. At a later stage of his speech Air Alassey returned to the question, declaring the emphatic belief that the importance of Nauru to New Zealand was tremendous. He had ascertained when in London that it would, be impossible to obtain supplies of basic siag for New Zealand, so that wo had to turn to Nauru phosphates. Thus ho 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 each to the United Kingdom and Australia, and 16 per cent to New Zealand, while, the liability would be fixed in the same proportion. He believed when the works got fairly going, it would be possible to export 500,tKJ0 tons of phosphate from Nauru annually. Air Aiyers: What is the estimate of the probable cost? Air Massey; Nobody knows. I can’t tell; but the company estimated that its interest is worth three millions. Air Holland : They paid £600.000, and want three millions. Mr Alassey: tliinkiug of the proportion of German shareholders’ interests, which realised £575,C00. Mr Holland: No; the amount thev paid in. . Mr Alassey repeated that the company valued its interests at three millions, but he did not agree. When the island was taken over, competent valuers would be appointed and not ono shilling more than the deposits were worth would b© paid. Air Atyera; Has a probable estimate of the cost per ton beeii submitted ? • Air Alassey replied that the company was paying 25 per cent dividend on an : estimated cost of production of £2 per ton free on board. At the expiration of five years, and ©very subsequent five years, there would be a readjust- ■ ment of supplies to each interested country on the basis of the actual requirements of phosphate- Ho wanted a triennial adjustment, but failed to secure tliis. Ho provided that the agreement should bo subject, to the ratification of the New Zealand Government. Sir John Findlay: AYhat will happen if we refuse?

M r Ab&seyj \\c will lx? out, of it. Ho | arJ<Je<i that there not tho i elm no 3 o.t Britain requiring anything ! hku. half it.-, proportion of 42 r>er ceet- i of the Nauru output. .If, lifts estimated i t.iat the deposits there totalled forty-} two and a half million lons. * | AVILAT IS THE COST? ! Mr Witty: Is there anv truth in the ’ statement that our shard*is £000,000? j M.r Massey; That is based on the I company s suggestion. ’Phey suivoiv i said that their interests were worth I three millions, an<l an enterprising I Prossiuau worked out our proportion ait j £61)0.000. lie, acl fieri that, if was <\st.i- 1 mated that in five yours 1 time Non- Zea- J land would require 100.0UU tons of phos- I phate annually. New Zealand’s two- i portion, in accArdaicc with require- 1 mente, would at the cmljof live years i be determined by three commissioners, I ouo representing each interested conn- ! try. Nauru was exporting 63,000 tons i annually, but mice, it was develoimd there would lie a. tremendous advance on that output. Mr Holland, one of the later speakers, declared that it was remark able ' thing that n, little island twelve miles! in circumference should overshadow the Prime Minister’s speech on the most important document ever formulated.