FEDERATION AND ANNEXATION: NEW GUINEA PROTECTORATE (FURTHER CORRESPONDENCE RELATING TO THE). [In continuation of A.-4, 1887, Session I.]

Appendix to the Journals of the House of Representatives, 1888 Session I, A-05

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1888. NEW ZEALAND.

FEDERATION AND ANNEXATION: NEW GUINEA PROTECTORATE (FURTHER CORRESPONDENCE RELATING TO THE). [In continuation of A.-4, 1887, Session I.]

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. The Special Commissionee, British New Guinea, to Sir W. F. D. Jebvois. Sic, — Brisbane, 7th March, 1887. In reference to my letter of the 15th January, enclosing copy marked " Confidential " of my report for the year 1886, I now enclose copy, which, not being marked " Confidential," may be used, if desired, for presentation to Parliament, or for publication. I have, &c, John Douglas. His Excellency Sir W. F. Drummond Jervois, G.C.M.G., C.8., &c.

Enclosure. BEITISH NEW GUINEA. Gbnebal Sib Peteb Scbatchley died on the 2nd December, 1885. Mr. Deputy-Commissioner Eomilly, in virtue of the provisions of the Commission appointing General Scratchley, assumed office, and administered it until the 27th February, when I received a Commission from Her Majesty appointing me Special Commissioner for the protected territory of British New Guinea. Mr. Eomilly left on sick leave for England. It became necessary for me to proceed to Brisbane, Sydney, and Melbourne, in order to wind up affairs in connection with the administration of Sir Peter Scratchley, and to confer with the Australasian Governments contributing to the maintenance of the Protectorate. After communicating by telegram with Her Majesty's Secretary of State for the Colonies, I terminated the charter of the steamship "Governor Blackall" from the Australasian Steam Navigation Company, and received some of the contributions of the Australasian Colonies for the year ending the Ist June, 1886, in accordance with the conditions laid down in Lord Derby's despatch of the 9th May, 1884. Me. Fobt's Eepobt. General Scratchley's papers were soon after his death collated by Mr. G. S. Fort, his Private Secretary, and a report was published which contains a large amount of most valuable information connected with the Protectorate. My experience on the coast of British New Guinea during the last six months entitles me to say that I can confirm the general tenor of Mr. Fort's report, which may be accepted as a faithful account of conclusions arrived at after the cruise of the " Governor Blackall." I regard it as, on the whole, a safe guide for those who have to consult for the future of British New Guinea. Mail and Tbading Seevioes. While in Sydney I arranged the terms of a contract with Messrs. Burns, Philp, and Co. for a service along the coast of New Guinea, from Thursday Island to Port Moresby and Dinner Island. A copy of this contract (Appendix A) is herewith attached. The s.s. "Victory," 80 tons burden, has been placed on this line, and has kept up her monthly trips regularly since the commencement of the contract. She will soon be replaced, I hope, by a larger and more suitable vessel. lam at present in communication with Messrs. Burns, Philp, and Co. on this subject. I—A. 5.

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Chaktee of the Steamer " Goveenoe Caiens." On my return to Brisbane on the 19th April I arranged with the Government of Queensland for the charter of the "Governor Cairns," schooner, of 68 tons (Appendix B). She has answered her purpose well. From the Bth May, when she left Brisbane, until the 6th December, she has been under weigh eighty-three days, has sailed 6,053 miles, and has conveyed me and my staff to many of the principal points on the southern shores of British New Guinea. She is now laid up at Cooktown, and will be available for service next year on the same terms, after the north-west season has passed over. On the 17th of September she grounded on a reef in surveyed waters, and sustained some damages, which were made good at Cooktown, involving some considerable expenditure and a detention in port of five weeks. Steamee " Albatross." The Queensland Government, having lately purchased the s.s. " Albatross," 84 tons burden, for service in Torres Straits, have considerately placed her at my disposal for the purpose of visiting the adjacent coasts of New Guinea. I have authorised Mr. Milman, the Eesident Magistrate at Thursday Island, to act on my behalf in this respect, and he has permission from his Government to do so. When engaged in duties connected with the Protectorate his expenses will be paid by me. The "Coeal Sea." It was necessary to make some temporary provision for the service of the Protectorate in China Straits. For this purpose I chartered the lugger " Cora] Sea," 18 tons burden, engaging with her master, Colin Thompson, that he was to sail her and find her for a monthly payment of £40. She has been at the disposal of Mr. H. 0. Forbes at Samarai (Dinner Island), and is still there. She is manned by Malays, and has done good service. South Cape, China' Steaits, and Samaeai. On my first visit to the eastern portion of the Protectorate I was accompanied by Mr. and Mrs. H. 0. Forbes, Dr. Clarkson, the Medical Superintendent of the Polynesian Hospital at Mackay, and by General Mclver. I had made an arrangement with Mr. Forbes, after his return from Sogari, that he should represent me in China Straits, at any rate until the end of the year, leaving it to be an open question whether or not he should then enter on the resumption of his exploration work. I rented the mission premises at Samarai, and I placed at Mr. Forbes's disposal the " Coral Sea." Dr. Clarkson, who had obtained leave of absence from the Government of Queensland, was attached to my staff in his professional capacity, and I was also accompanied by Brigadier-General Mclver, who had "placed his sword at my disposal." This happily was not required. He had taken a considerable interest in the proclamation of the Protectorate, and, though I did not feel justified in granting him permission to reside in New Guinea, I was able to afford him an opportunity of visiting many points on the coast between Samarai and Thursday Island. My generous consideration for him was, however, insufficiently appreciated, I fear. The prevailing character of the mainland at South Cape, and of the islands in China Straits, is that of a mountainous region covered with dense tropical vegetation. The climate is exceedingly humid, and, though the scenery is very beautiful, it is not a country which is likely to attract European settlement. I should not regard it as an exceptionally unhealthy region if reasonable precautions are taken to avoid living under insanitary conditions. Its capacity for the growth of cocoanuts and the manufacture of copra is practically unlimited; but the supply of cocoanuts is not large at present, and does not much exceed the requirements of the native population. As a central point from which to direct administration, I prefer Samarai (Dinner Island) to South Cape. lam not, however, satisfied with the sanitary conditions of Samarai. There is a swamp in the centre of the island, and there is an exposed reef to windward. The former may be got rid of ; the latter cannot. As a site for a settlement I should prefer either Stanley Harbour, on Zareba (Heath Island), or the neck of an isthmus on Logia (Heath Island), opposite to Stanley Harbour. At both of these places there is good anchorage and an abundant supply of running water. As an anchorage, however, Her Majesty's ships of war prefer Samarai, and this consideration dominates at present. I think, however, that on better acquaintance the anchorage at Stanley Harbour might be found to be quite as good as at Samarai, and as a site for a settlement it is, in my opinion, superior to any I examined in China Straits. Zareba (Hayter Island) is a large island, abounding in rich soil, fine forest, and running water. The natives also are perfectly friendly, and, being tolerably numerous, could soon be made to influence the neighbouring tribes on Basilisk and Moresby Island, who at present have rather an evil reputation. Mr. H. 0. Forbes has in the meantime consented to remain at Samarai until the end of March. He proposes then to visit Australia in order to ascertain if he is likely to receive support in his explorations in the vicinity of Mount Owen Stanley and the Great Dividing Eange. Mr. Kissack has, with my permission, established a store and trading-station at Samarai. It will be necessary, when authority is fully constituted, to appoint some one permanently to represent the Government of the Protectorate in China Straits. The Eesident there should have under his orders a sufficient force to make his authority respected. He should have a smart lugger, and a force of not less then ten men. Eight Fijian policemen, under the command of a European officer who could handle a sailing craft, would suffice, I think, for the purpose of maintaining and protecting both the natives and the Europeans in China Straits and the neighbouring islands. Her Majesty's ships of war will occasionally visit the group, as they do at present; but they cannot be expected to undertake police duties, and should not be asked to do so.

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Poet Moresby and the Valley op the Laloki. Port Moresby, as the head-quarters of the London Missionary Society, is the best-known and the most important point on the coast of British New Guinea. It is a magnificent harbour, though a good deal cut up by coral patches, and it will require to be well buoyed and beaconed before it can take rank as a first-class port. The inner or Fairfax Harbour is completely landlocked, with very fairly even soundings, giving four and five fathoms. The surrounding hills do not leave much level ground on the shores of the harbour, and the country has often been spoken of by visitors as dry and comparatively barren. The past season has been an exceptionally moist one, and I have only known it under this favourable aspect; but in the valleys and on the slopes of the hills there are many fine specimens of forest trees, and the enclosed plantations of the natives lead me to conclude that the climatic conditions of Port Moresby are not so unfavourable to cultivation as they have sometimes been represented to be. The native village of Hanuapata, built in the shallow water between the Island of Elevara and the rising ground on which the mission premises are situated, is a collection of somewhat fragile tenements built on piles. The native population numbers about eight hundred men, women, and children, the children being pretty numerous. There are some small villages at the head of the harbour and on the hills lying to the north-west of the Mission-station. The native population thus indicated, including those occupying the littoral of the bay, and the detached villages on the hill-sides, does not exceed 1,200. A road passing up a valley at the back of the Mission-station crosses the surrounding range of hills at a summit of about 400 ft., and thence decends to level country, which it traverses for some eight miles, until the Laloki Eiver is reached. The whole of this country, and indeed almost the whole valley of the Laloki, is unoccupied by the natives, and is only used occasionally by them as hunting-ground, which they beat for wallaby and kangaroo. It is well grassed and abundantly watered. Port Moresby, I think, must be regarded as the future centre of British administration in New Guinea. It is true that there are other equally fine harbours on the coast, and there are districts more fertile and populous, but it is there that the influences which now prevail have taken most deep root, and I regard it as the present seat of such Government as has been established. Sueveys at Poet Moeesby. The late Special Commissioner authorised Mr. Assistant Deputy-Commissioner Musgrave to purchase certain portions of land from the natives. These instructions were somewhat enlarged by me, and have resulted in the acquisition of a continuous block of land, amounting to some nine hundred acres, which will be quite sufficient at present for purposes of immediate settlement, whenever it is deemed expedient to authorise it. It seemed to me to be very desirable that the land thus acquired should be defined by survey, and for this purpose I secured the services of Mr. Cuthbertson, a gentleman who had carried out similar work in British North Borneo, and in Northern Australia, at Port Darwin. The surveys have been carried out by an efficient party of six Europeans, at a cost of £787. Mr. Cuthbertson has now completed the plans, which are well executed, and include a feature-survey of the country for eight miles out of Port Moresby on the road to the Laloki crossing. Mr. Cuthbertson's report is attached (Appendix C), as also a paper by Mr. Musgrave on this subject. In connection with the survey of the new township of Granville I have arranged that Mr. Goldie shall receive, in exchange for the site he at present occupies near the Mission-station, certain allotments in lieu of those surrendered by him for the use of the natives. I have purchased his store, which I propose to convert into a school for the natives, and he is now erecting a new store on the new site, which is more healthily situated. Native Policy of Poet Moeesby. I am able to report that the officers of the Protectorate resident at Port Moresby have acquired a very considerable influence over the neighbouring native population, and that this has been exercised with very beneficial results in repressing the intertribal atrocities which are the normal incidents of New Guinea life in its savage state. During the short period of little more than twelve months since Mr. Assistant Deputy-Commissioner Musgrave has resided at Port Moresby, he has extended his controlling influence to the Hula district eastward, and to the Manumanu and Kabadi districts westward. He has been faithfully and intelligently aided in this policy by the Messrs. George and Robert Hunter, who were appointed as Native Protectors by the late Special Commissioner. They are both of them familiar with the native language, and have been constantly employed in moving about, both along the coast and inland, acting in every case under the instructions of Mr. Musgrave, who has certainly acquired a decided ascendancy over the native tribes within the area described. In order to further their work I thought it desirable to purchase a small cutter of ten tons, which is now constantly employed on the coast. This influence has now extended even as far as Aroma and Kerefunu, which places I have myself visited several times. On the last occasion of my visit I arranged terms of pacification between these powerful tribes, and I had the satisfaction of ascertaining that they were anxious to extend this compact to the Anamarupu tribe, with which they have been constantly at variance. I am anxious, however, to consolidate our influence over the area we already command, without extending it too rapidly. I attach Mr. Musgrave's report on native affairs (Appendix D). It is of considerable importance as indicating his method, and in this matter he has displayed a zeal which deserves the success which has already attended his efforts in his most useful work. The present force at the disposal of Mr. Musgrave at Port Moresby consists of Messrs. George and Eobert Hunter, who are acting as Government Agents and Native Protectors ; Maka ; three South Sea Islanders; and a scratch lot of young natives who act as the crew of the whaleboat in Port Moresby. In addition to these I have appointed Mr. George Kerr master of the " Maino " cutter, and he has two Malays under him. In the event of any exceptional circumstance arising requiring an increased force, volunteers for the

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purpose can generally be found. It will be desirable, I think, to obtain some trained men from Fiji, and, with a force of twelve men, six afloat and six ashore, I can guarantee that order shall be maintained and intertribal atrocities prevented for at least sixty miles along the coast. Land Policy. The land question is no doubt the cardinal one upon which almost everything connected with British policy within the Protectorate will turn. It is the primary consideration, both as regards the present native inhabitants and those schemes of colonisation which have at various times been suggested. Even so far back as 1875 Lord Carnarvon was approached by solicitations from a proposed association of persons styled " The New Guinea Colonising Association." The reply which was then addressed by the Secretary of State to the applicants seems to me to be so apposite that I think it well to reproduce it now (Appendix E). It lays down a standard of policy which is equally applicable at the present moment. On the other hand, a charter has of late years been granted to an association in British North Borneo, where the conditions of settlement must be somewhat similar to those in British New Guinea, and were so regarded by the late Special Commissioner, who appears to have been not unfavourably disposed to some much similar concessions. (Vide Mr. Fort's report.) For my own part, I think that the true interests of the natives and their advancement in the scale of life are not inconsistent with some encouragement being given to European settlement. In further illustration of this subject I beg to attach a correspondence (Appendix F), which throws some light upon this complex subject. MISSIONABY EnTEBPBISE. In Mr. Fort's report a sufficiently ample statement has been made of the facts of the case to render it unnecessary for me to recapitulate them. A great and noble enterprise has been conducted by a set of most self-sacrificing men, who have carried the message of Christ to a savage race of inhuman murderers. The first stages of this transmutation have been effected at the cost of a great sacrifice of life among the devoted South Sea Island teachers, who have, under the guidance of the London Missionary Society, been the chief instruments in the partial conversion of these interesting though bloodthirsty savages. I regret to say that I cannot regard the work of the Society as progressive. The brave and earnest men who devoted the best years of their lives to the work of evangelization on an unknown coast cannot renew their youth, as we might wish that they could. They are not succeeded by men competent to follow up the task they commenced, and the work of the Mission languishes just now from the lack of new men who are prepared to devote their lives to an efficient attack upon the deep incrustation of barbarism which still prevails. Mr. McFarlane has retired permanently, I understand, from the Mission. Mr. Chalmers is now in England, and Mr. Lawes is left almost alone. I hope that new and efficient workers will be found, for a work so well commenced should be carried on to a successful completion. The French Catholic missionaries of the Order of the Sacred Heart have commenced work at Yule Island. I trust that the humanising influences which they will doubtless bring to bear on the natives will be productive of much benefit to the Protectorate. Under British administration, I have no dread of any seriously prejudicial rivalry between missions acting under different directions, but animated, I hope, by the same spirit. A correspondence I have had with the Eev. W. Lawes on this subject (Appendix G) will serve to indicate the course of events in connection with the French mission. As a matter of ecclesiastical discipline the brothers of the Sacred Heart will probably affirm their right to establish missions where they choose. As a matter of practical administration, I have no doubt that they will find it most convenient to occupy unappropriated ground. The field of operations is so large that there ought to be no difficulty in establishing a fair understanding on this point. It is not improbable that an Anglo-Australian mission may be established in the Louisiade group. The South Sea Island teachers require sometimes to be controlled. I found it necessary to administer a severe caution in the case of a native lad who was killed by being pushed from the platform of the teacher's house at Kappakappa. In another case, that of the teachers at Eigo and Sarowa, they had offered rather serious obstruction to Dr. Clarkson and to Mr. Hunter while on a journey to the head of the Kemp-Welsh. One of them had also spoken very disrespectfully of me and my officers. I felt it necessary to send for those teachers, and the result of the lengthy investigation which took place was a suspension of their residence in their respective districts for three months. Explobation. Mr. H. 0. Forbes conducted, during the latter months of 1885, an exploratory expedition in the direction of the summits of the Mount Owen Stanley Eange. He established a camp at Sogari, and, besides making an extensive botanical collection, he effected a good deal of valuable triangulation. The wet season, however, having set in, and the funds at his disposal being exhausted, he was obliged to abandon his enterprise at that time. On meeting Mr. Forbes at Cooktown in May last, I ascertained from him that he would require £2,000 in order to follow up his explorations over a period of six months from June to December. I offered for this purpose to appropriate £500 from the funds of the Protectorate, if the rest of the amount required could be subscribed from the Australian Governments. It did not, however, at the time appear tj> be probable that this amount would be forthcoming, and Mr. Forbes in the meantime undertook to reside in China Straits, where he has been most useful. I attach to this report one of Mr. Forbes's letters to me, in order to show the sort of work he has had to do in China Straits (Appendix IV.).

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He hopes still to resume his scientific exploratory work in the vicinity of Mount Owen Stanley, and, if the Australian Colonies should be willing to find £1,500 for this purpose, I should feel justified in recommending a grant of £500 from the funds of the Protectorate towards his expenses. I have lately received, an offer from some experienced Queensland colonists to conduct an exploration party by way of the heads of the Kemp-Welsh Eiver across the Dividing Range to Dyke Ackland Bay, and, if Mr. Eorbes's proposed expedition is not carried out, I may be able to avail myself of their offer. Teade and Be venue. I find it difficult to speak with any certainty on these points. Everything depends upon the land policy adopted. If settlement, even in a modified and restricted form, is authorised, trade will grow and revenue will come in. The limitations which have resulted from the system of permits established since the proclamation of the Protectorate have caused trade, small as it even then was, to diminish rather than to increase. During the period I have held office about 400,000 ft. of timber has been exported. There is plenty of beche-de-mer, on the coast, and there are valuable pearlshell beds; bub the repeated massacres of the men engaged in these occupations have acted as a great discouragement to enterprise of this kind, and it practically does not exist at the present time. Nor have I felt justified, under present circumstances, in giving any encouragement to the development of these industries when it was not in my power to afford the people engaged in them any protection, or to place them under any satisfactory regulated system. As regards the collection of revenue, I have not thought it desirable, with my present inchoate legislative powers, to attempt to levy any duties on imported goods. I have issued a regulation under which I propose to collect a royalty of Is. per 100 ft. on all cedar exported from the Protectorate, and I propose to collect this at the ports of entry, with the assistance of the Customs authorities in Australia. In the event of any refusal to pay this duty I should withhold the permit (Appendix H) or passport which is at present issued to those who are employed in this industry. Financial. I -entered- upon the duties of administration in entire ignorance of the requirements of the situation and with an overdraft at the bank of £2,349 2s. lOd. I have endeavoured to shape my expenditure in accordance with immediate necessities. It was necessary to maintain the establishment at Port Moresby, and to carry out some improvements there. Houses had to be built for the accommodation of the officers of the Government. It was necessary to provide a lockup. (Appendix V.) Surveys had to be made, water was laid on, and a variety of improvements incidental to first settlement had to be carried out. A list of these improvements will be found attached to this report (Appendix II.). They are really the assets of the administration, and are not inconsiderable. It was necessary also to provide for my own locomotion along the coast, and some provision had to be made for supervision, both at Thursday Island and in China Straits. A statement is attached of receipts and expenditure for the half-years ending, respectively, the Ist June and the Ist November (Appendices la. and Ib.). The date of the first financial year— the year ending the Ist Juno, 1885—was fixed by Lord Derby in his despatch of the 9th May, 1884. It would be convenient, I think, if an alteration could be made in this respect, and that the financial year should be made to terminate on the 30th June. I have had some difficulty in coming to an understanding with the Government of New Zealand as to the period on account of which their payments have been made. Two payments respectively of £2,668 18s. 9d. have been made by that Government: the first was for the year ending the Ist June, 1885, and the second, according to intimation, was for the year commencing the Ist June, 1886. This leaves an interval for the year ending the Ist June, 1886. I trust, however, that this may be regarded merely as a difference as to dates, and that an arrangement may be arrived at. Estimates fob the Yeab ending Ist June, 1888. I shall be prepared shortly to submit an estimate of expenditure for the year ending the Ist June, 1888, though I trust that in the meantime some arrangement for a permanent provision may be arrived at by Her Majesty's Government, acting in concert with the Governments of the Australasian Colonies. Eequisition foe Conteibutions on Account of the Yeae ending Ist June, 1887. I have requisitioned the contributing Governments for the current financial year ending the Ist June, 1887. On account of that year I have as yet received no payments, except from New Zealand. It would be more convenient, and a more equitable arrangement, I think, if, in future, payments were made in advance. The difficulties of administration in British New Guinea are sufficiently great without adding to these the difficulties of possible financial embarrassment. The Necessity foe a Steamee. I wish, in conclusion, to say that it is exceedingly desirable, for the purpose of maintaining order along the coast, and for the purpose of protecting life and property, both native and European, that the Commissioner or Administrator should, without further delay, be provided with a steamvessel. Her Majesty's Government have offered to do so, and I trust that this proposal will soon be carried into effect. H.M.S. " Dart " has been spoken of as the type of a vessel suitable for this purpose. She was, I believe, a steam-yacht which was originally owned by Lord Eglinton. Some similar vessel could probably be purchased in England for a sum of money well within the £18,000 which has been spoken of for this purpose. She ought to have good sailing qualities, combined with steaming capacity worked at a minimum of expenditure. Captain Cyprian Bridge, E.N.,

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supplied General Scratchley with an estimate of expenditure suitable for such a vessel (Appendix III.), and I have no doubt that this probable expenditure is one which will serve as a useful guide. John Douglas, Her Majesty's Special Commissioner for British New Guinea. Brisbane, 31st December, 1886.

APPENDIX A. Memoeandum of Agbeement entered into this thirtieth day of April, eighteen hundred and eightysix, between the Honourable John Douglas, C.M.G., Her Majesty's Special Commissioner for the Protected Territory in New Guinea, and Messrs. Buens, Philp, and Co., Limited, of Brisbane, Townsville, &c. (Queensland), and Sydney (New South Wales). It being essential to the proper development of New Guinea that steam communication should be established between Thursday Island and Port Moresby, and whereas Messrs. Burns, Philp, and Co., Limited, are already engaged in trading between and with these ports, the following arrangements are herewith agreed upon between the Honourable John Douglas, C.M.G., and the said firm. Messrs. Burns, Philp, and Co., Limited, agree to run a monthly steam service between Thursday Island and Port Moresby (and to extend the service if required by the development of trade from Port Moresby along the south-east coast to Bast Cape), carrying the public mails and despatches for the Honourable John Douglas without charge other than hereafter specified. Messrs. Burns, Philp, and Co., Limited, undertake to gradually establish trading-stations along the coast at various points, under the management of good and reliable men, who shall be approved by Her Majesty's Commissioner. These stations shall be formed for the purposes of collecting copra, beche-de-mer, and other products, and offering inducements to the natives to engage in industry and! in the development of the natural resources of the country. The sites for such stations shall be selected or, if not selected, approved by Her Majesty's Special Commissioner, or public officer appointed by him. It is understood that the land upon which the stations are built, and any water-frontages upon which wharves are erected or other improvements made, will be held by Her Majesty's Special Commissioner for the sole use" of Messrs. Burns, Philp, and Co., Limited, unless and when required for public purposes; and should such lands or water-frontages, in consequence of being so required, be resumed or sold by Her Majesty's Special Commissioner, then the improvements shall be valued at the time of resumption or sale, and the amount of such valuation shall be paid to Messrs. Burns, Philp, and Co., Limited. Her Majesty's Special Commissioner shall allow Messrs. Burns, Philp, and Co., Limited, to take passengers (within limits as to number, to be specified by himself from time to time) from Australia to New Guinea, always provided that the said firm guarantee that such passengers shall not become a burden upon the Government, and that they comply with the regulations and sign the usual "Memorandum of Conditions" required from approved travellers or immigrants, copy of which is hereunto annexed. In the event of the steamship employed breaking down, or requiring to proceed to Townsville or elsewhere for repairs, then Messrs. Burns, Philp, and Co., Limited, shall be allowed to substitute a sailing vessel until repairs are effected, and thus obviate the necessity of keeping a second steamship ready for emergencies. In consideration of the due fulfilment of the terms of the steam service named, Her Majesty's Special Commissioner agrees to pay to Messrs. Burns, Philp, and Co., Limited, and Messrs. Burns, Philp, and Co., Limited, agree to accept in full settlement, the sum of fifty pounds sterling per month. The said steam service will date from the Ist day of July next, and terminate on the 30th day of June, eighteen hundred and eighty-nine. Should the steamer be detained for repairs longer than two months in one year, then the payment for such excess of time shall be only at one-half the rate per month stated. It is finally understood that this agreement may be terminated on either side subject to six months' notice being given from one side to the other, in so far as the mail service and subsidy are concerned, and that the provisions of this agreement are subject to confirmation by Her Majesty's Secretary of State for the Colonies, although acted upon by Her Majesty's Special Commissioner. John Douglas, Special Commissioner. Buens, Philp, and Co., Limited, (Per James Buens, Managing Director.)

Telegram from Her Majesty's Special Commissionee, Brisbane, to Messrs. Bubns, Philp, and Co., Sydney. 26th April, 1883. I peopose to insert in agreement re tenure of station-sites a few words stating that actual tenure shall be similar to that of the pearl-fishing stations at Thursday Island. Do you agree ? This will not interfere with valuation clause. Contract to date from Ist July. John Douglas.

* " Sole use" to be interpreted in accordance with the telegrams interchanged on this point—John Douglas.

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Tblegeam from Messrs. Buens, Philp, and Co., Sydney, to Her Majesty'-s Special Commissionee, Brisbane. 28th April, 1886. Ageee alteration re tenure trading-stations; also commencing Ist July unless you think dates should assimilate with Australian Company fortnightly service. Make alterations and return corrected copy signed. Bubns, Philp, and Co.

APPENDIX B. CHARTER " GOVERNOR CAIRNS." The following are the conditions of charter of the schooner " Governor Cairns," now lying at the Port Office Wharf, Brisbane, between the Honourable the Colonial Treasurer of Queensland on the one part and Her Majesty's Special Commissioner for New Guinea on the other hand. The Honourable the Colonial Treasurer of Queensland undertakes to put the said schooner in good and seaworthy condition, to fit her out with sufficient sails and standing and running gear, anchors, chains, awnings, and two boats, to deliver her at Brisbane to whomsoever the said Special Commissioner may appoint for that purpose. Her Majesty's Special Commissioner for New Guinea undertakes on his part to take every reasonable care of the said vessel and equipments, to keep the vessel insured against total loss for the sum of £2,000 in the name of the Honourable the Colonial Treasurer of Queensland, in any respectable marine insurance office in Brisbane, and to do nothing that will vitiate that insurance. He further undertakes at the expiration of this charter-party to give the vessel up, with all her equipments, in Brisbane, to the Queensland Government, or such officer as the Honourable the Colonial Treasurer may appoint, in as good condition as when received, fair wear and tear excepted ; that, in order to ascertain if any injury has been received, he undertakes to dock her for survey, and any injury she may be found to have received to make good, before being taken over by the Queensland Government. The said Special Commissioner undertakes to pay to the said Honourable the Colonial Treasurer, at the expiration of each calendar month, the sum of £25 as rent for the said schooner. The said Special Commissioner further undertakes to pay all wages and expenses of crew, stores, and supplies of all kinds, and to make good and replace everything that may be lost or injured, and to keep the vessel clean, thoroughly painted, and protected as far as possible from the weather; to have the spars and blocks regularly attended to, the former kept greased or varnished, and the pins of the latter taken out and their position shifted, and the sheaves blackleaded at proper intervals. The chains are also to be got on deck and overhauled at least every two months. This charter-party is to continue in force from the Ist May, 1886, to the Ist January, 1887, from which first-mentioned date the rent as aforesaid is to accrue. It is also agreed that the said Special Commissioner has the option of purchasing the said schooner " Governor Cairns " at any time during the currency of this charter for the sum of £2,000, to be paid by the said Commissioner to the Honourable the Colonial Treasurer of Queensland, and, upon such purchase being made and completed, the conditions of this charter-party to cease and determine. Signed on the Ist day of May, 1886,\ John Douglas, by Her Majesty's Special Com- Special Commissioner for New Guinea. missioner for New Guinea, and L James E. Dickson, by the Colonial Treasurer of Colonial Treasurer. Queensland, in the presence of j E. B. Cullen.

APPENDIX C. No. 1. Sib,— Survey Camp, Port Moresby, 21st September, 1886. I have the honour to make the following report in connection with the surveys that I have completed —namely, the Townships of Granville East and West, public reserves, native and mission reserves, cemetery, &c. Firstly, I would state that I have carried out the whole work as nearly as I can according to the instructions in the Queensland Survey Eegulations, which differ considerably from those I have always been used to—namely, South Australia; Queensland work being all carried on from magnetic north, that of South Australia from true meridian. The first work in connection with a survey such as I have just completed in a new country under Queensland Eegulations is to lay down a true meridian line, and then ascertain the variation of the compass and carry on the work on whole degrees of magnetic bearings, no odd minutes. However, the nights were so very cloudy for some four to five weeks after my arrival that I was unable to obtain sufficiently good observations to start my survey from ; so, in order to lose no more time than possible, I commenced the work as I should have done under similar circumstances in South Australia, and ran my beach traverse and other work on contained and subtended angles. From one of these lines I eventually fixed my true meridian and variation, and have calculated the magnetic bearings as shown on my plans throughout the work. In my field-book, besides the bearings, will be found the contained and subtended angles, for reference if necessary. The grass and rough nature of the hills, and the swarms of green ants and hornets which infest the scrubs, I

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have found a very great drawback to the progress of my work. My party have also suffered considerably from sickness, owing, I should think, to the exceptionally wet season we have had during my residence here. The Township of Granville West, situated near Paga Point, or, I should say, between Paga Hill and Goldie Law, and extending from the Port Moresby Beach to Ila Beach, comprises about fifty acres of land. There are, including the beach roads, seven streets, the inner ones being 2 chains wide, the beach frontages averaging about 3 chains. The blocks are all cut up into quarteracre allotments and classed in sections according to Queensland Regulations—namely, Sections I. to Vl.—and contain 107 lots, numbered as per plan. All corners, &c, are marked with hardwood pegs, and numbers cut on sides, and mostly trenched with good stone trenches indicating direction of lines. When the ground would allow trenches are cut in the soil. The most part of the town consists of rough flint boulders, excepting in the Gap, where the soil is a blue clay. I should think a gang of coolies would soon make a good clearance of these boulders, which, if placed on the main roads and broken up, would serve well for metal, but would require good blinding. Water is at present scarce, but I feel satisfied that with suitable appliances there would be no great difficulty in obtaining a good well. The most suitable way of connecting the two townships, in my opinion, will be by a road running along the beach, skirting Goldie Law on the northern side, by quarrying out that hill along the foot. The road at the back, along Ila Beach and across the Gap, would, I think, cut up considerably with any heavy traffic, and is much longer, and its approach to the Gap would require considerable amount of metal before it could be much used. The Township of Granville Bast lies about 80 chains north-easterly from Granville West, and is, so far, cut up into eight sections. The outside roads are 2 chains, the inner ones being 1 chain. The allotments are quarter-acre and are marked with hard pegs, the ground being mostly of a blue-clay character; the trenches are cut in the soil. Here there are only two sections—Nos. 111. and IV.— cut up into allotments. The others can easily be done with the chain should they be required and no surveyor here. The two-chain road named Lawes Street, on the western boundary of the town, will be the main thoroughfare until such time as a road can be made facing the beach as surveyed through the mangroves, where there is a firm bottom, and will eventually make a firstclass road, but at a considerable expense. This town is Well supplied with water, there being beautiful springs at the north-eastern corner, where I have surveyed a considerable road-deviation which takes in the springs and allows a good roadway on either side of them. The hills on this side are mostly of limestone formation, whilst at Granville West they are mostly flintstone. Granville Bast to the northward is bounded by the reserve for public purposes, botanic gardens, &c, and for the latter I consider an admirable site is chosen. This public reserve extends northerly for about 31 chains, and average depth about 16 chains. It comes down to the beach traverse on the western side, and is bounded on the eastern side by a two-chain road skirting the hills at the back of Government bungalow, connecting the north-east corner of Granville East with the Laloki Eoad. This road also bounds the native reserve on the eastern side, which lies immediately north of the public reserve and runs in that direction for 27 chains, where the Laloki Eoad, which separates it from the mission block, joins the beach traverse; the two-chain road bounding it on the east joins the Laloki Eoad 10 chains 35 links from this point easterly. The native village immediately faces it to seaward. In the south-eastern corner of the block there are also some valuable springs. Northerly from here is the mission block, which takes in all their dwellings, huts, and church, situated on a good rise and facing the coast traverse. For 21 chains north-westerly and westerly from this point it leaves the hill and runs along the coast traverse for 17 chains 50 links, thence easterly for about 20 chains to a bend in the Laloki Eoad. About 20 chains from its intersection with the beach traverse the most part of this land is of a swampy nature, and covered with long reeds and jungles. It would, I think, if cleared, be suitable for the growth of rice. This block contains an area of rather more than thirty-one acres. At 8 chains from this junction with the Laloki Eoad easterly is a one-chain road running in a north-north-westerly direction for 13 chains about to the cemetery, which contains three acres of land ; it is also approached by a road skirting the hills to the northward of the mission. The timber on all this portion contained in these surveys is a stunted bastard gum of no use. There are a few acacia, likewise useless. The grass is spear-grass, and is very abundant. The Laloki Eoad is run to the Gap, when it reaches the hills; I considered it unnecessary to offset it on the hillside, as they are useless for anything but for road purposes ; and it will, I think, be many years before the full width of 2 chains will be required on the hillsides. There will be considerable cutting necessary to make this road owing to the steep side of the hills, but the grade is very little, and when made will be found to be an easy approach. I have always avoided doing more damage to bananas or garden fences than actually necessary for the work, and in every case have avoided cutting down cocoanuts and sago palms, &c. I have laid out townships, roads, &c, as nearly as possible according to instructions received from either yourself or Mr. Douglas. In some cases I have deviated a little where, in my opinion, there has been a more suitable course. The difference in length of the two roads connecting the two townships from centre of Granville West to junction with main road is round Goldie Law to northward about 90 chains, round Ila Beach about 120 chains. Plans of the two townships and a general plan of the whole survey completed I forward herewith, which I trust will meet with satisfaction. My field-book, which will take in the road to junction of the Goldie and Laloki, together with plans, and report on same, I will send in as soon as possible after its completion. I have, &c, Walter E. Cuthbebtson, To the Deputy-Commissioner, Port Moresby. Surveyor.

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No. 2. Sib, — Survey Camp, Granville, 27th October, 1886. I have the honour to furnish the following report on the road recently surveyed by me to the Laloki Eiver. I found that the present native track was as good a road as it was possible to find, so that I have almost followed that the whole course, straightening it up as much as possible. The distances are as follow : From traverse at beach near native village to gap in range, 91 chains 30 links ; to first water, 225 chains ; to Vaigana Creek, 439 chains ; to Laloki Eiver, 632 chains ; along riverbank to crossing, 56 chains : making a total of 688 chains from beach traverse to Laloki Eiver crossing, or 8-J miles. The road is offset as a two-chain road; the whole distance excepting crossing the range, where I considered an offset unnecessary, being only suitable for road purposes. After striking the river I have surveyed a road of an average width of 3 chains along the river-bank as far as the crossing. This is, I think, necessary as a travelling-stock reserve and approach to water for all public purposes. This should, I think, be continued along the river as the survey of the country progresses ; my two-chain road, of course, runs into this. It is useless surveying a road immediately down to a crossing, as that continually changes in a river subject to any freshes : for instance, where the water is shoal this season it may probably be deep next, and so on. The three-chain road along the river-bank, therefore, gives access to a crossing, wherever it may be, at any particular season. The same should be done on the opposite bank, and the two-chain road commenced cutting out from it wherever the country may prove most suitable for the purpose. During the whole time I was working on this road we had heavy rains daily, which caused floods in the river. I was therefore unable to give any opinion on the crossing itself, as I could not get up to it; but from Mr. George Hunter's report, who has crossed there, I should think it would easily be made a convenient ford. The country for about two miles on either side of the road I have sketched with prismatic compass, and my plan will, I think, have given a very good idea of the surrounding country. I would not have it .taken that this sketching is even supposed to be precisely accurate, but quite sufficiently so for the guidance of any one either travelling the country or to take up selections from. Of course, before any accurate fixing of hills, &c, can be made trig, stations must be built on their highest points, and tops cleared so as to get reliable bearings to the same point. This would entail considerable time and expense. However, with the short time at my command, and the very unfavourable state of the weather, I have managed to map in a good portion of the country behind the range, which I trust will prove serviceable until such time as a more minute and accurate survey can be made. During the whole of the distance of road-line surveyed by me there was not more than 5,000 [links ?] of burnt country; the remainder was covered with grass between 4ft. and sft. high, which would not burn, being too green, and if started there was no wind to carry the fire any distance. This grass I had to cut down the whole distance, which very much lengthened my work. The country throughout is of a limestone formation, and I came across no signs of any mineral. For the most part it is a pastoral country, if not wholly so ; in the flats there is some good soil, but of no great extent, suitable for growth of maize and suchlike produce. The timber is mostly stunted gum (poor), excepting on the banks of watercourses and surrounding the lakes at Vaigana, or what in Northern Australia we should term "tea-tree swamps." Here is found abundance of Leichardtpine, a very useful timber in all countries where the white-ant is to be found (it will not touch this pine) ; and from it splendid flooring-boards and so forth can be cut. It is a timber easy to work, and very pretty; it is a yellow colour, well adapted for tables, chairs, &c, in these countries. On the country surrounding these lakes horses and cattle should, I think, thrive well, if not too much molested by leeches and alligators. The latter are numerous in a deep waterhole leading into these lakes, and would, I fancy, be capable of doing considerable destruction to young stock. During my camping term in the vicinity, the absence of game on these lakes makes me think they would most probably be plentiful in them as well as in the waterholes where we saw them ourselves. The country northward of these lakes, as far as the eye can span, is low-lying, apparently swampy lands, timbered with low scrub. To the westward for about a mile low ranges are passed over, all well grassed, which would give good high feeding-ground for stock in the wet when the flats are boggy. I should, have liked to have run a line from the junction of the two native tracks this side of Vaigana to the junction of the Goldie and Laloki, which it was my intention to have done ; but, owing to the heavy rains which fall daily, and with the amount of sickness in my camp, I did not think I should be doing my duty either to my party or myself by staying out to complete that work, so, at your suggestion, struck camp. I myself suffered considerably with scrub-itch, which, together with the worry of my men being sick, and long hours in the sun during the day in a stifling atmosphere with no wind, and heavy rains, and no sleep at nights, completely knocked me up. I used quarts of kerosene to destroy this itch, but without effect; the best remedy I found was to rub myself all over with Holloway's ointment. Painkiller and St. Jacob's oil had no effect, and for more than a week I could not get a wink of sleep, so spent most nights walking about keeping the mosquitoes company, which also were somewhat numerous night and. day. The water in the creek at Vaigana Ido not consider fit for drinking purposes, but by sinking in a gravelly bed can secure first-class water, the holes being choked with decomposing vegetable matter. There was nothing that I met with in any way differing much from this surrounding country on which to write a lengthy report, more than to say it is all evidently a good pastoral country; and trusting this, together with the plan I shall send in as soon as completed, may prove serviceable, I have, &c, Walter E. Cuthbeetson, To the Assistant Deputy-Commissioner. Surveyor. 2—A. 5.

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No. 3. Mbmoeandum by Assistant-Deputy Commissioner Musgbavb respecting Acquisition of certain Government Lands. Government Bungalow, Granville, British New Guinea, 9th November, 1886. In compliance with your Excellency's verbally-expressed wish, I have the honour to report upon the acquisition of Government lands in British New Guinea up to this date. 2. The first acquisitions on the part of Protectorate officers were the sites of the Government bungalow, comprising about an acre, and a strip extending in a southerly direction from the Argus Villa for about 20 chains along the harbour and about 4 chains in width. These plots were secured from the Motu and Koitapu people of the villages adjacent to the London Mission-station, in the same manner that the representatives of that Mission originally obtained sites for their buildings and gardens. This is by giving to the claimants of the ground desired certain articles in barter, such as hatchets, gaudy cloth, tobacco, &c. I beg to enclose copies of the authority I received from the late Special Commissioner (Sir Peter H. Scratchley) for making this and other land-purchases for the Government. He also intimated to me verbally his desire to take over other lands wherever it was practicable and convenient. His Excellency was not an eye-witness of this first transaction, as his plans obliged him to leave for Eedscar Bay on the same day, the Bth September, 1885. A copy of some notes which I made at the time of this purchase is also annexed. No form of " memorandum of land-purchase " has ever been supplied to me, nor did I receive any written instructions other than the authority mentioned. While referring to this first Government purchase, it will doubtless interest your Excellency to see the accompanying copy of probably the first record of a land transaction in Port Moresby, if not in British New Guinea. This paper was placed in my keeping by the Eev. Mr. Lawes about a year ago. The strip of land along the harbour was secured in order to assign positions for stations to certain traders who had applied for them. The late Special Commissioner was, however, in a doubtful and difficult position with regard to his powers either to acquire or alienate lands. According to' a regulation in force on his arrival, and which has never been formally rescinded, Commodore Erskine, at the date of the Protectorate, had enacted that " No settlement or acquisition of land is on any account to be permitted." On the other hand, clause 9 of the Special Commissioner's Instructions seems distinctly to imply that land-purchases may be made, and apparently at the discretion of the Special Commissioner. He is also given instructions as to his responsibilities and duties, as the clause states, "in the event of any such purchases being made." Further, in clause 10 he is directed to "give all proper encouragement to peaceful and legitimate trade between the natives and persons who may visit the Protectorate." It was so obvious that one of the first essential requisites for trading is a site upon which to put buildings, that I understand the late Special Commissioner held that his commission and instructions gave him sufficient discretionary power to act for the general good, and upon well-approved principles of settlement, and in this sense to relax Eegulation No. 4. He therefore determined that Government officers should first treat with the natives in all cases for the acquisition of lands the latter wished to sell, and that a subsequent grant of a provisional right of occupation might be allowed to the foreign settler. This was the course followed in the cases of Mr. Theodore Bevan and Messrs. Davis and Anderson, who both began business here last year, but have since abandoned the settlement. A register-book of such licenses for provisional occupation was opened, as I have previously mentioned to your Excellency. No fees were charged, as no power seemed to be conferred for their collection, and on account of the insecurity of tenure allowed. 3. On the following day (sth September, 1885) a narrow strip of land was purchased to connect the bungalow site already described in my despatch to Her Majesty's Secretary of State of the , 1885, with the beach purchases. 4. On the 14th September Sir Peter Scratchley settled with Mr. Andrew Goldie for the purchase of the Argus Camp building, and relinquishment of any rights to the site of about an acre of ground, for £30. The purchase of the land from Mr. Goldie was expressly repudiated, as that would have implied a right to sell, and therefore a right of possession on his part. Any such admission would have created a precedent with regard to other land he occupied, and other claimants of the same class. 5. On the 7th day of October it would appear that Sir Peter Scratchley bought a piece of ground at Suau (South Cape). A copy of the memorandum of this purchase is to be found on page 50 (No. 31) of Mr. G. S. Fort's report on the cruise of the " Governor Blackall." The amount paid for this position was about £3 7s. 6d. in trade, but the approximate area is not stated. 6. On the 14th and 15th of October Mr. Eobert Hunter and Euatoka the Mission teacher bought from the Koitapuan natives of the village of Verentu or Badili certain lands now known in the local surveys as the Badili lands. I did not perambulate the boundaries myself, but I was present, and the Eev. Mr. Lawes also kindly attended at the payment of the claimants. We were assured of their being satisfied with the completion of their sale. One hundred and twenty-eight vendors had to be paid for 333 acres of land. These are the contents of the block as fixed by a recent theodolite survey, of which your Excellency has inspected the plan. The main object in securing this block was to be able, in the event of Port Moresby natives proper being reluctant to sell, or making excessive demands for lands urgently needed for settlement, to substitute other holdings equally suited for cultivation, but not equally monopolizing wharf frontages, &c. There was risk of these positions being taken by the natives on the advice of certain Malays and South Sea Islanders who have taken Motu women as "wives," and who use some influence over the aboriginal villagers. The Badili lands lie well within three miles of the Government bungalow, cost less than £30 in trade, and are estimated by some persons of Australian experience to be worth £10 per acre, or

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£3,250. I consider them myself to be in a very important and valuable position as settlement extends. There are numerous fine villa sites upon them, giving fine views along the south coast. 7. The next purchase was also a valuable one to the Government. It consisted of a large block of land on the Vei Mauri and other rivers about thirty miles west of Port Moresby in the subdistrict of Dora. The Doran tribe have been nearly exterminated by their neighbours, and were willing to sell with the understanding that the Government should grant them such a measure of protection as was possible. The presence of Mr. C. H. Page's timber-getting party on the Vei Mauri Eiver has been, and will continue to be, a sufficient safeguard against hostilities while timber is being obtained. Should the party abandon the spot, however, it will be desirable for many reasons that a Government station be placed in the district, which is very fertile and well watered, and in a very accessible position south of the foot-hills of Mount Owen Stanley. The surrounding tribes are on friendly terms with foreigners. The area is difficult to compute, but may be about forty square miles. This land-purchase was the last made during the late Special Commissioner's term and during last year. 8. In January two more small plots of uncultivated land were bought at Port Moresby— namely, about half an acre to the south of and adjoining the bungalow site, and a piece of about the same size for a boatman's cottage site. This last was a continuation of the beach lands. The price paid was £4 2s. lOd. for these plots. 9. No further purchases of land were made until after your Excellency's arrival here in June last. Acting upon your memorandum of instructions with regard to the acquisition of lands in conjunction with the surveys at Port Moresby, which it was most important to have effected, Mr. Eobert Hunter, as an agent for the Government, accompanied by the Government interpreter and the present chief of the local village, Ah-00-doo, made purchases from time to time, as other duties permitted, to the extent of about 222 acres. All the cultivated grounds that interrupted the road reserves have been bought at a full price, but the natives have had it explained to them that in future, when the Government make roads for their benefit as well as for the foreigners' convenience, they ought to grant land free for that and other public purposes. Mr.. Hunter began purchasing on the Bth July, and ceased by my direction on the Bth October, having secured all the lands required within the surveyed portion of the settlement, newly entitled " Granville." The recent acquisitions may therefore be summarised as follow: — Purchased Lands. Acres. Government domain, and bungalow site, &c, of 9 acres... ... 52 Granville Bast, township ... ... ... ... ... 95 Ila Beach, suburban lands ... ... ... ... ... 22 Granville West, township ... ... ... ... ... 50 Badili lands ... ... ... ... ... ... 333 552 Unpurchased Lands. Paga Hill Eeserve... ... ... ... ... ... 50 Goldie Law Eeserve ... ... ... ... ... 236f Cemetery (assumed for public purposes, within Native Eeserve) ... Government Station (late Mr. A. Goldie's holding) ... ... 2| Total acreage ... ... ... ... 844 The purchased lands have cost £339 19s. Id., from the first transaction in 1885 to date, at Port Moresby, and inclusive of the block at Badili. The country lands in Dora and Suau cost £7 os. lOd. With reference to the unpurchased portions, Goldie Law and Paga Hill, the natives themselves ridiculed the idea of the Britain's buying " rocks and stones," as they said. The elevations are very rugged and somewhat steep, and are not cultivated by the natives. They are in fact practically useless to the latter, and it seemed unnecessary (at any rate at present) to buy them. Your Excellency was an interested eye-witness of the purchase of a portion of garden ground, and is fully aware of the exceptionally troublesome and tedious nature of acquiring land by the present method. The lands purchased at Port Moresby, already stated at 552 acres, involved twenty-seven different transactions on as many different days, and compelled negotiation with and payment of 1,258 different vendors, or rather more than half an acre from each native. It seems evident, therefore, that any such process as has been adopted during this season would be too expensive and cumbrous to continue, and it is most desirable that another .and more convenient mode of adjusting the relative positions of foreigners and aborigines in respect of land may be settled shortly.

No. 4. Memoeandum by Assistant Deputy-Commissioneb on the First Purchase of Government Lands in British New Guinea. Government Bungalow, Granville, British New Guinea, Bth September, 1885. Mb. Geoege Huntek, Government Assistant, with the co-operation of the London Missionary Society's teacher, Euatoka, whose services were kindly allowed by the Eev. Messrs. Lawes and Chalmers, negotiated for the purchase of certain instalments of land in the proposed Government and commercial divisions of the settlement with twenty-eight Motu and Koitapu natives.

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2. The teacher, Euatoka, having been here since 1873 (twelve years), and being thoroughly conversant with the local natives and their customs (especially in their dealings with foreigners for the sale of land), was a most valuable agent. Mr. G. Hunter also possessed considerable experience of natives. 3. The portions of land bought from each individual varied in size, but were all small. For each portion, 1 tomahawk, 1 handkerchief, and -J-lb. tobacco were given. This appears an almost unfairly low price. The total area bought, however, is not more than eight acres, and the value of the trade expended amounted to £18 2s. 4d. Thus, an acre is worth about £2 ss. None of this land was in cultivation, the natives declining then to sell even a small plantation which intervened between the Government bungalow and the sea. Nor is any of the land at Port Moresby of a fertile character, although several gardens exist. Although it also seems unfair that an individual should receive as much for one square perch as another does for two or three, they are accustomed to this settlement (since they have no areal measure), and the gain to the community is the same as if the total were exactly subdivided amongst the vendors. i. At 2 p.m. the native vendors gathered at the teacher's house, and, their names having been called over and noted carefully, the Eev. Mr. Lawes addressed them at my request. He informed them that I was an officer of the Beretani Government, was allowed to buy land, and had been directed to do so by the Kavana, or great chief. He said, at my request, that " I would buy both the bad land and the good land when they were inclined to sell, and that I intended to try and lead the water into their village by-and-by, and save them trouble in the dry season." Each landowner then received his payment and left quite satisfied, and with the intention of selling more land to Mr. Hunter for the Government. 5. In the afternoon fifty-four more natives sold land and were paid in my presence, departing quite satisfied. The chief Boi Vagi was present throughout the proceedings, from the perambulation of the boundaries to the final payments.

, ; .. New Guinea Minute Paper. [Eeceived 3rd September, 1885—Answered 9th September, 1885.] To Captain Anthony Musg-bave, Acting Deputy-Commissioner. Subject—Sundry matters to be reported on. 1. Herewith a memorandum of certain matters I wish you to inquire into and consider.— 1. Received. 2. Eeports to be sent when convenient. Some of the points are not ripe for settlement.— 2. Noted. 3. I authorise you.to incur necessary expenditure in connection with them should you deem it advisable not to wait for my authority.—3. Noted. 4. If there are any other matters you wish to bring up to my notice, please do so. I shall be glad at all times to hear from you.—4. Noted. Port Moresby, 3rd September, 1885. P. H. Scratchley.

Poet Moeesby.—Mattebs to be inquired into and considered bt Captain Musgrave, Assistant Deputy-Commissioneb. 1. Tidal-gauge, automatic. Communicate Captain Pullen's letter herewith to Professor Eussell at Sydney, and make preliminary inquiries as to cost, &c.— Letter drafted for ensuing mail. 2. Cleaning boat-channel.— Suggest postponement. 3. Purchase of land ; all desirable sites to be purchased at a moderate cost; if any reluctance shown, defer.— Several bought; continue to do so gradually. 4. Site for official quarters to be purchased, together with garden, &c, road leading to, and paths.— Done. 5. Site for Government farm.— Suggest postponement. 6. Erection of official quarters. The materials and carpenter may be here on 10th or 11th September. We have to unload vessel. Steam-launch will help, and ship's boats. — Site purchased. Being cleared. Quarters and hoard fixed for carpenter, Shed and store ready for materials. Canoes engaged, and Hunter specially to attend to unloading vessel. 7. Accommodation for carpenter on shore—see contract with Aplin, Brown, and Co., herewith. — (See above.) 8. Water-supply generally : — a. For farm. — Postponed. b. For quarters') c. For village [Settled for present. d. For shippingj 9. Boatshed. 10. Jetty. 11. Site for native boatmen's quarters—married men; gardens.— Sites provisionally selected.

(Memorandum.) Port Moresby, New Guinea, 11th January, 1875. The Eev. W. G. Lawes, of the London Missionary Society, and resident at Point Moresby, having bought the undermentioned plots of ground Nos. 1, 2, 3, 4, and 5, the former owners in our presence declared the purchase effected, and the land transferred to said W. G. Lawes and his heirs absolutely, which was also ratified by the chiefs Ila, Kupa, Iko, Poe, and Heni. The owners and chiefs expressed themselves perfectly satisfied with the payment.

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Plot No. 1. —Ground on which dwelling-house stands, extending in front about 12 yards, at the back about 16 yards, and bounded at each end by road. Purchased from Mavaraiko for shirt, hatchet, knife, and pocket-handkerchief. Plot No. 2. —Ground in front of house extending down to the sea. Bounded by road on eastern side, by Plot No. 3 on western. Purchased from Rupatele for hatchet, shirt, knife, and handkerchief. Plot No. 3. —Ground on western side of Rupatele's. Bounded on west side by Elivara Eoad, extending to the sea at the bottom and to dwelling-house at top. Bought of Putaitai for a woman's dress, a hatchet, and a knife. Plot No. 4. —Ground on which Niue's (teacher's) house stands, extending to the sea at bottom, to house and about yards beyond at back, extending as far as cocoanuts on east side and to road on west side. Bought of Touakavera for two shirts, two hatchets, and four pocket-hand-kerchiefs. Plot No. s. —Ground on west side of dwelling-house, extending nearly to top of hill, forward as far as Elivara Eoad, and inland as far as boundary-mark. Bought of Huakonia for a shirt, woman's dress, hatchet, and knife. Thos. Suckling, Lieutenant Commander, H.M.S. " Eenard." Leslie C. Stewabt, Sub-Lieutenant, H.M.S. "Eenard." S. McFaelane. J. Thukston, Master s.s. " Ellengowan." Heney Smithhubst, Engineer s.s. " Ellengowan." Euatoka, Earotongan Teacher.

APPENDIX D. Memorandum on Native Policy in Hee Majesty's Peotected Tebbitoky op New Guinea. In compliance with your Excellency's wish, I have the honour to state as follows respecting the native policy and events in this Protectorate from June of last year to this date (October, 1886). In the above period of sixteen months (for three of which—March, April, and May last—l was engaged on official duty with your Excellency in Australia) the late Special Commissioner spent three months (31st August to 29th November, 1885) in cruising in these waters, visiting various points, and collecting information as to the existing state of the country. His untimely illness and death on the 2nd December prevented him writing a general report, as he had intended, and the compilation and printing of his notes and memoranda were subsequently effected by his Private Secretary, Mr. G-. Seymour Eort. This account of the cruise of the s.s. " Governor Blackall " was published by the courtesy of the Governor of Victoria in March last, and it has been read with interest, as lam aware, by your Excellency. It describes the villages visited, and other native matters with which Sir Peter Scratchley dealt. There is no occasion for me to comment especially on the views expressed in the above report. The late Special Commissioner's opinions and projects regarding British New Guinea were avowedly of a tentative character, and some of those referring to a future native policy and control would, I believe, have been widely modified, if not abandoned, had he lived to gain a closer and larger experience of our aboriginal population. To endeavour to frame and pursue such a policy, for instance, as that signified in the statement, " New Guinea must be governed for the natives and by the natives," would, I consider, be a costly and chimerical experiment in colonial organization, inevitably resulting in failure. It could not retard indefinitely the natural and progressive influences of civilisation. Our aborigines are savages in the first stages of barbarism, swayed by intense and degrading superstitions which involve them in ceaseless intertribal feuds and bloodshed, and the first really important protection that the natives require in British New Guinea is from each other. From one end of our territory to the other a chronic state of intertribal hostility prevails, and I much doubt if a day passes in the year without a murder or massacre (often of women and children) taking place in some district. No real tribal discipline or organization exists, and to "govern by the natives" is a sheer impossibility; but I propose to treat this point more fully hereafter. I regret that there are also some other points in Mr. Fort's compilation with which my own views do not agree. 2. Mr. Deputy-Commissioner Eomilly visited this coast in the s.s. "Victoria" (17th June to 12th July, 1885), when the Queensland Government returned the islanders held to be kidnapped from our Eastern Archipelago. He returned to Queensland on the latter date, and accompanied the late Special Commissioner on the arrival of the latter here on the 28th August last. Compelled to leave again for the Australian coast in the middle of October owing to severe fever, he has not since been in these waters. Neither from the late Special Commissioner nor from Mr. Eomilly (while Acting Special Commissioner for three months) did I receive any instructions or suggestions whatever as to a native policy, or my own position in relation to the natives. Such measures as I was constrained in the interests of peace and security to life and property to adopt were undertaken with the gravest sense of responsibility for want of proper authority. It was so important for future administrative control, however, that the natives should at once begin to look towards a central authority for advice and friendly dictation, that I felt bound to interest myself and take action in several matters not, strictly speaking, within my powers. I was fortunate, nevertheless, in receiving the full approval of Sir Peter Scratchley for the opinions and actions which I brought to his notice. 3. On my arrival here on the 17th June last year, in the s.s. " Victoria," I held a commission as Assistant Deputy-Commissioner. The powers it conferred were limited to action upon instruc-

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tions to-be given from time to time by the late Special Commissioner. No discretionary legal or administrative authority was thus allowed, and the only instructions furnished to me were to stay at Port Moresby and make a local collection for the Indian and Colonial Exhibition. These facts I did not think it expedient to make generally known, as I was the only British official representing to a certain extent Her Majesty's authority in the Protectorate. Without embarking on any important or questionable step, however, I guided myself by the spirit and intention of the General Instructions from Her Majesty's Secretary of State for the Colonies to the late Special Commissioner himself. They were similar to those of a later date received by your Excellency, and served in some measure to direct my relations with the Natives. Certain previous experience of barbarous tribes in Canada and South Africa, likewise, I felt would enable me to begin the introduction of a native policy after acquiring proper local knowledge. Two and a half months of this position passed, and then Sir Peter Scratchley arrived at the end of August. He expressed himself fully satisfied and pleased with what little had been done, and agreed in some suggestions for future measures. These were comparatively few and merely verbal on my part, as I did not then feel assured on several points under my observation. In addition to seeing what I could for myself, I gathered all the information obtainable from persons of any local experience, such as beche-de-mer fishers, collectors, &c. ; and I must express my obligation to all classes alike for the ready and courteous way in which numerous inquiries were met with, the access also kindly afforded to printed and other matter accumulated for more than ten years at the Mission, and similar facilities from Mr. A. Goldie, collector, explorer, resident, and trader of ten years' experience, who placed his notes, extracts, and time, &c, freely at my disposal. I gained a great deal of useful material for framing a future policy. With the Eev. Mr. Lawes, the representative of this branch of the London Missionary Society, I was in close communication, as I have stated, for four and a half months, and learnt much of his local experience and views with regard to the natives. For his considerate help on many points of interest and value I owe him sincere acknowledgments. In September, a few days after the arrival of the " Governor Blackall," a further commission was handed to me by Sir Peter Scratchley, creating me a Deputy-Commissioner for the portion of the Western Pacific included in the Protectorate and the Solomon Islands. This commission was subsequently recalled, owing to a presumable informality in its preparation. That sent in substitution only takes effect in this Protectorate, the Solomon Islands being excluded. As your Excellency is aware, these commissions are limited to British subjects, and give no authority for dealing with cases in which foreigners— i.e., Germans, Chinese, French, escapees, &c, and alien natives, Malays, Polynesians, &c. —are included ; yet all these are found on this coast. Had I adhered, therefore, strictly to my increased but still utterly inadequate legal powers under the Western Pacific commission much valuable time would have been lost in creating proper impressions of discipline and control in the minds of the natives and those most intimately associated with them by marriage, beche-de-mer fishing, &c. According to John Stuart Mill, the " true criteria of good government are order and progress." To effect these objects will doubtless take some little time and trouble in this territory, but they are not impossible with firm and consistent management, and could not possibly be promoted by a policy of " masterly inactivity." Confusion would have arisen in the native mind also, since they were led to expect at the date of the protectorate (two years ago) a more decided influence over their conduct and affairs. After several conversations with him, I received an assurance privately from the late Special Commissioner that I could count upon his support in the case of action I considered it desirable to take. Where I could do so conveniently, therefore, I encouraged the so-called chiefs to appeal to Government authority, and to regard the Eesident here as the proper adviser and arbitrator in all difficulties and disputes. On the departure of the late Special Commissioner from these waters on the 29th November last year, I received a special warrant or supplementary commission from him, empowering me " to administer the affairs of British New Guinea" during his absence. I regarded this as conferring the fullest authority which he could delegate to act for the maintenance of law and order and the promotion of civilisation and improvement in respect of all classes. This warrant is dated only four days before Sir P. H. Scratchley's death, after I had been for six months in the local service under his supervision, and I held it conveyed increased confidence in my conduct and views. Such were the powers with which I was intrusted. I will now state as briefly as I can tha chief events in which natives were concerned since my association with the Protectorate. 4. One of the first most valuable steps towards adjusting Government relations with our natives was the return by the Queensland Government of more than four hundred obtained from the Eastern Archipelago and mainland in 1883 and 1884 for the labour trade in that colony. At the time it was decided to return these men Mr. Deputy Commissioner Eomilly suffered from ill-health, and it seemed doubtful whether he could superintend, as an officer of the Protectorate, their return, and the compensation provided for relatives who had died in Queensland. It was held important that such an officer should be identified with the duty in order to increase confidence in local authority and its influence amongst the natives. Sir Peter Scratchley therefore proposed to send me in the s.s. "Victoria" to represent the Protectorate. Your Excellency has seen the late Special Commissioner's despatch and instructions to me on this subject, and, as they were subsequently overruled, I do not annex copies. Mr. Eomilly, having improved in health by the date of the departure of the " Victoria," undertook to accompany her, and reported upon her cruise on his return to Queensland in July. All papers relative to this voyage were printed, and, I believe, are in your possession. I have already had the honour to draw your Excellency's attention to the fact that there are

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several New Guinea natives in Queensland whose term of service expires shortly, and that there are probably a large number of cases of non-compensation for deceased natives. As this principle of compensation was not only admitted, but put in practice to a great extent, it is likely that aboriginals who have gone without a present, besides losing a relative, will be doubly incensed, and prove a dangerous element in the future, unless they realise that a firm and undeviating control is intended. From records at command I find that 648 natives have been recruited for the Queensland labour trade, and 404 returned on the voyage of the "Victoria." Not more than thirty of those remaining will probably be returned finally; thus 194 relatives of deceased islanders became entitled to compensation. The Queensland allowance for this object was exceedingly liberal, from a native point of view, and included the following articles and values, viz. : — £ s. d. 1 axe ... ... ... ... ... 0 4 7 1 double blanket ... ... ... ... 0 9 0 12 yards turkey-red ... ... ... ...054 12H.K.F.S ... ... ... ... ... 0 3 3 2 hatchets ... ... ... ... ... 0 6 0 Hong knife ... ... ... ... ... 0 2 0 1 short knife ... ... ... ... ... 0 1 6 2 Ib. tobacco ... ... ... ... ... 0 3 0 1 waterproof bag ... ... ... ...030 £1 17 8 I am unaware of the exact number of the above " bundles of trade," as they were called, which were given away on the cruise ; but I feel morally sure, from reading the printed reports, that not half of 194 were so presented. It was, I venture to think, an unfortunate omission that all our natives were not returned here at the same time. The Queensland Government had strictly prohibited further "recruiting" in New Guinea and adjacent islands. All recruits from New Guinea were understood to have been irregularly obtained in the first instance, and, consistently with a fair and humane policy, it was decided to replace them in their homes. The mortality, according to the report of the Commissioners, had already been great, and it was likely that considerable further loss by death would occur amongst those left behind. Nor would survivors finally be returned under the same favourable conditions. To return four-fifths of the number and leave one-fifth therefore looks like a failure to complete a public action otherwise most salutary to the native impressions in the Protectorate. I accompanied the s.s. " Victoria " to this place, landing at Port Moresby on the 17th June last year. 5. A few days after my arrival the Eev. Mr. Lawes called my notice to a case of dispute and assault upon a native of Tatana, a village situated in the upper part of the harbour. The assault was by a Malay, a beche-de-mer fisher. The latter urged theft of a piece of his boat-fittings, and that the native resisted its return when claimed. The native explained that he found the piece of wood floating about and took possession, or it might have been lost by the tide. The Malay had been living for some time at the village, being married to one of the women, and he owned the only boat at the village. There was no doubt, therefore, that the native knew thoroughly well that he was appropriating the Malay's property. I cautioned the native against interfering with anything which he had not bought or which had not been given to him ; and I warned the Malay against taking the law into his own hands for the future, but to refer to Government authority. This is a trifling incident in itself, but it illustrates a class of cases likely to become numerous on the coast. Hitherto petty thefts have been dealt with rather summarily by the wronged individual. Shooting pigs and pulling down native cottages have been the means resorted to by missionary teachers as well as small traders on the coast, while there are also instances of the rifle being used in this district of Moresby for the same reasons. 6. From the 17th June to the 31st October I was a guest at the mission head-quarters here, and received great kindness and hospitality from the Eev. W. G. Lawes and Mrs. Lawes, and I thus had ample opportunities for studying the relations of this branch of the London Missionary Society with the natives, the class of South Sea Island teachers employed by them, and of forming an estimate of the civilising and evangelising results alleged to have been achieved at their centre of influence and effort. I also visited villages within a day's ride of the Mission-station, was present at some of the large hunting parties, and interested myself generally in the habits and customs of our aboriginal population. At the end of July I accompanied the Eev. J. Chalmers on a trip in a whaleboat with a native crew to the subdistricts of Dora and Kabadi, touching at all the principal intermediate coast villages. I received a distinct impression from this journey—namely, that the influence of the mission in checking intertribal robberies and feuds even in their oldest sphere of action, Eedscar Bay, has been greatly exaggerated, and that Government intervention was indispensable to effect any real and permanent reform. The village of Manumanu, in Eedscar Bay, at the mouth of Galley Eeach, occupies a somewhat important, although most unhealthy, position. It was the first point at which a London Missionary Society teacher (of this branch of the mission) was placed in 1872, or fourteen years ago. Its people formerly owned and occupied another village, gardens, and a cocoanut grove four or five miles further to the west. A blood-feud with the neighbouring Kabadians compelled flight, and they squatted on the foul and miserable sandbank where they live, nearly surrounded by dense and pestilential mangroves. The advantage in the present position is the water-boundary of

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Galley Beach, which, as the Kabadians have no large canoes, affords security. Separated from their garden ground, which they are afraid to cultivate, they have led a wretched existence for some time past, eked out by thefts from the remnant of the Dora tribe next to them inland. The latter are reduced to a few survivors, chiefly women and children, after a joint massacre a few years ago by the Manumanu people and a number of Koitapuans who tenant a strip of the shores to the eastward along Caution Bay. We took one of the so-called chiefs, Daira, from Manumanu to Kabadi with us, and Mr. Chalmers did his best to " patch up a peace." Although, however, the Kabadians professed themselves quite ready for the restoration of the former good understanding, the Manumanuans have never to this date felt enough confidence in them to return to their original position at Morabi. I spent a day in walking through the Kabadi country, visiting the different villages and making acquaintance with their leading men or chiefs. Their gardens are fertile, and the soil very easily tilled, being a rich friable brown loam. Amongst their banana plantations they seem to cultivate crotons and coleuses, &c. They possess a large breed of pigs which seemed numerous, but are an inert group of natives. Complaints are made that they are too lazy to reap or sell the surplus produce from their prolific gardens, and from the number I saw lounging in hammocks hung below their huts I have no doubt the statements are true. In the subdistrict of Dora the people complained of the rifling of their gardens by Koitapuans of a coast village of Lealea, and we promised to touch there and make inquiries on our return journey. This was accordingly done a few days later, and a vigorous speech made to the Lealeans by Mr. Chalmers, who speaks the Motuan language (understood for some distance on both sides of Port Moresby) with considerable fluency. It was explained to them that I was a Britani chief sent here to protect their rights, but not to allow thefts and murders, and that they would be punished if they continued to molest the Dorans. These unfortunates would have been exterminated within the last three or four years were it not that Mr. C. H. Page and his timber-cutting party of South Sea Islanders have insured them protection. On this expedition I made presents to the chiefs I met, and visited all the villages I could in the time at disposal. On the 19th August, after my return to Port Moresby, the old chief Gaeta, from Lealea, came to me to explain away the complaints as to his people by the Sisikao, the chief of the Dorans. I promised, therefore, if Sisikao would forget what had passed I would do the same on this occasion. On the 24th August Daniel Eowan appeared before me to complain of an audacious robbery by natives of Coutance Island, about seventy-six miles east of Port Moresby, where he had been collecting beche-de-mer. A dispute arose as to the payment for a few fish brought by them for sale, and they then pinioned him and robbed him of a considerable quantity of "trade" on the spot. It is not unlikely that he would have been killed as well, but a Kerepuna woman who was associated with him vociferously warned them of " Man-o'-war." I took a written statement from the two witnesses, and referred them to the late Special Commissioner, as I had no means at my command of dealing with the case. 28th August. —His Excellency the late Special Commissioner arrived in Port Moresby. On the Ist September Sir P. H. Scratchley received chiefs and leading men of local villages, made them each a small present, and advised them to refer to himself or myself in case of any difficulty. The Eev. Mr. Lawes acted as interpreter. Bth September.—Agreeably to directions from the late Special Commissioner, conveyed in a minute of the 3rd instant, I accompanied Mr. George Hunter and Eualoka, the London Missionary Society's teacher —who has resided here since 1873, and is thoroughly familiar with the native language and customs —to settle the purchase of a site for a Government residence. As I have lately reported separately and fully on the acquisition of lands by the Government to date, it is not necessary to enlarge on this subject. 20th September.' —The local Motuan chief, Boi Vagi, waited on the Special Commissioner with Mr. E. Hunter, and described to him the state of hostility existing between the coast village of Kaile and the hill village of Garia. Kaile Village is built on piles on the fringing reef, and is thus tolerably well defended from attack by inland tribes unprovided with canoes, except at " low-water springs." The Kaile women, however, are obliged to resort to the mainland daily for supplies of fresh water and vegetables from gardens on the banks of a creek. In consequence of a former massacre in which Kaile was much, if not entirely, to blame, the Garia people had been stirred up to revenge, and were known to lurk about in the bush to kill any weak party or stragglers. Accordingly, about the 18th or 19th of August three women of Kaile were surprised and speared in their gardens by Garia men. This, together with threats from Garia chiefs, received through an intermediate friendly village, Mangawarra, created great alarm, and the women would not visit their gardens without a large party of men or the London Missionary Society's teacher stationed at Kaile accompanying them with his gun. The mission teacher resides in Garia Village. The latter is on a commanding and rugged eminence, partly covered by forest-growth, and difficult of access. This harassing attitude continued, and during September the Garia men again surprised a party from Kaile; but the latter, with the assistance of a friendly village, Vaboori, turned on the attacking party and killed them —six in all. The successful natives savagely mutilated the bodies, and the Garians were more incensed than ever. Their object has been, for months past—according to New Guinea custom —to " get even," i.e., to obtain as many lives as have been taken by the Kaileans. It does not matter whose they are, and women and children are preferred because they are less able to defend themselves. A more cowardly, mean, and treacherous rascal than a local native intent on revenge it would be hard, I believe, to find. The danger to the weaker villages of Kaile and Vaboori claimed Sir Peter Scratchley's atten-

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tion. The Garians had declared through Mangawarra that they would descend to the coast in strong force, kill every one in Kaile, and burn down the village. His Excellency then sent a cutter, with Mr. E. Hunter and the local chief Boi Vagi on board, and left himself for Kaile on the 21st September. On the 23rd the cutter returned with Mr. Hunter, but Sir Peter continued his voyage to the eastward. He stopped at Kappakappa, and through mission-teachers of Kappakappa and Eigo endeavoured to impress upon the Garians the necessity for avoiding further bloodshed. They were very sullen, however. Only one minor chief came to the "palaver," and they took a peaceoffering, or "maino," virtually under protest. By an unfortunate omission on this occasion, the Garians, although warned off Kaile, were not cautioned as to Vaboori. On this flimsy pretext, therefore, a few days after Sir Peter had left Kappakappa, the Vaboorians were attacked, and, according to Mr. Hunter's subsequent report, " I found the village completely deserted, but the women, boys, and girls lately massacred were laid out on platforms about 4ft. or sft. high. I counted them—two middle-aged women, six young girls, and two boys between six and seven years old. I also saw the remains of twenty houses burned down." On the 20th October the news of this massacre reached me, and on the following day I despatched Mr. Eobert Hunter to the village of Tupuselei, near to Vaboori, to make inquiries and exercise any useful influence he could in restraining further bloodshed. From his inquiries it seemed likely that Mr. George Hunter, who had had more experience among the inland people, might produce an effect by visiting the large hill-village of Eigo, and he accordingly received instructions from me to proceed there on the 25th October. The efforts of the Messrs. Hunter at this time were, on the whole, satisfactory ; but in December the Garia people recommenced threats, and I was compelled to send Mr. E. Hunter again to Kaile. The Garians at this time wished to wipe out the rest of the Vaboori villagers, and were making preparations to do so. Mr. Hunter once more succeeded in quieting the hostile feeling for the time, and frequently visited Kaile and the neighbouring villages, by my direction, afterwards. The Garia people still menaced Kaile, however. The latter almost ceased to cultivate their gardens, and were on the verge of starvation. On the 14th of June I had a deputation of chiefs and natives from Kaile asking for protection in cultivating their plantations, as they were all very hungry. I told them I would once more warn the Garia people, and that they could go on making their gardens. If they were interfered with they were to let me know directly. The party then left me quite satisfied. Matters went on without any interruption to mention, until Mr. G. Hunter reported on the 14th October that the Garia people had been down to the Kaile limits and returned to their village for a large feast. After this, they intended to descend in force, rob the gardens, kill the villagers, and burn down the village. [Mr. Musgrave handed this unfinished report to me at Port Moresby on the 2nd December. Up to date I have not received the concluding portion.—J.D. 31st December, 1886.]

APPENDIX E. The Colonial Office to Edwaed Schubekt, Esq. Sib,— Downing Street, 30th October, 1875. 1 am directed by the Earl of Carnarvon to acknowledge the receipt of your letter of the 9th instant, transmitting the prospectus of a proposed association to be styled "The New Guinea Colonising Association," with a draft of proposed rules and regulations for the guidance of an expeditionary force, and requesting that this project may receive the moral support of Her Majesty's Government, and such legal recognition as the promoters conceive could be given to it by the enrolment of the expeditionary force under the Volunteer Act, and the appointment of certain members of it as Justices of the Peace for the Island of New Guinea. 2. His Lordship has attentively examined the scheme laid before him by you, and regrets that he is obliged to consider it one to which he can in no way give the approval which you seek. Even if the information at present possessed by any persons in this country were such as to afford any assurance, or even any confident expectation, that an expedition such as is projected would not result in commercial failure, in loss of health and life to its members, and in serious disturbances among the native tribes of the island (the probability of any of which consequences would impose a heavy responsibility on a Government which would lend it the weight of an official recommendation), it would be Lord Carnarvon's imperative duty to object very strongly to the leading features of the proposal, on public and constitutional grounds. 3. Even if New Guinea were a part of the Queen's dominions, it would be impossible to entertain the suggestion that a number of persons brought together by the love of adventure or the desire of profit should indiscriminately, and without a searching scrutiny into the personal fitness of each, be enrolled or commissioned as members of a military or quasi-military force, whose services within this island could be accepted by, and whose proceedings would be invested with the high sanction of, Her Majesty. For service in an unknown country, abounding, as far as has been ascertained, in the gravest physical difficulties, and inhabited by a numerous, powerful, and warlike population, a force would need to be very differently constituted. 4. So, also, with regard to the appointment of Magistrates, Her Majesty's Government could on no account accept, as suitable persons to discharge the duties of Magistrate in any part of the Queen's dominions, the unknown conditions of which demand experience and special attainments, such persons as a company might select as its leaders, chaplains, or medical officers. 5. His Lordship directs me to add that he would be glad if, consistently with his duty, he 3—A. 5.

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could conclude with this expression of his inability to give to the association that support and recognition which are desired, and leave the members of it to undertake, on their own responsibility, the risks of an enterprise which they appear to think likely to prove remunerative. The position, however, in which Her Majesty's Government now stand with regard to New Guinea is not such as to leave them free to sanction, even tacitly, the acquisition of land within the island by British subjects. 6. As you are no doubt aware, the Governments of the Australian Colonies have addressed to Her Majesty's Government strong and formal representations in favour of the annexation of New Guinea by this country. Those representations are now being carefully considered, and, pending such consideration, it is not open to any unauthorised and independent association of Englishmen to take possession of, or to purport to acquire from the savages of the island, that land with respect to the acquisition of which, on behalf of her subjects generally, the Queen is now being advised. 7. In the prospectus it is suggested that the association should purchase land from the natives, but in the rules and regulations there is no mention of purchase; the not unreasonable inference from which seems to be that it is now proposed to take by force the very large tracts of land required in order to make a grant of four (or in some cases five) square miles to each person joining the expedition. There is no evidence whatever respecting the power of the natives to enter into contracts which would be intelligible to them or binding upon them, or of their willingness to allow private settlers to occupy their country. But if there were no objections from the native point of view to so extensive an appropriation of territory, it would be impossible that any such acquisitions, or ostensible acquisitions, of land could be sanctioned and confirmed in the event of the territory hereafter becoming British. It is clear that, without the funds arising from the sale and lease of lands, it would be impossible to provide for the government of the country ; and any persons who may now settle in the country, knowing that Her Majesty's Government is considering the question of annexing it, must distinctly understand that no acquisitions of land made previous to a decision on this subject can be recognised to the prejudice of the Crown. 8.. With reference to the concluding paragraph of your letter, I am desired by Lord Carnarvon to point out to you that, although, as has already been observed, Her Majesty's Government could not permit the exercise of magisterial functions by persons connected with the expedition, there exists, under the provisions of " The Pacific Islanders Protection Act, 1876," a sufficient means of preventing and punishing abuses or outrages committed by British subjects upon the natives of New Guinea. I am, &c, W. E. Malcolm.

APPENDIX J l. No. 1. Deae Mb. Lawes, — Eesidency, Port Moresby, 7th July, 1886. It is desirable, I think, that I should state to you in writing some of the points of our conversation yesterday afternoon, in order that we may the more clearly understand the aspects in which we mutually regard the acquisition of land from the New Guinea natives. 2. Finding it necessary to set apart a portion of ground for the interment of the dead, I proceeded, in the company of yourself, Mr. Musgrave, and Dr. Clarkson, to select a suitable site. We chose an area, estimated at about four acres, in a valley a short distance from the Mission-station. The next step will be to ascertain the owners of the ground. We shall have no difficulty, I presume, in doing this. I propose then to offer them a fair price in accordance with prices previously given. It is possible that the owners may refuse to sell, as has been done in the case of some portions of land in the vicinity of the Government buildings. In that event, the land being required for public purposes, I propose to nominate yourself and Mr. Goldie as assessors of its value ; to pay that value, when adjudicated, to the owners; and to occupy the ground by enclosing it with a substantial fence. Begulations will then be issued for the interment of the dead. The practice of the natives in this respect is so defective, and so pregnant with danger to all who live in the vicinity of the village, that I am anxious as soon as possible to effect a change in this respect. 3. In reference to the further acquisition of land for the purpose of settlement, and in accordance with my instructions, it will be necessary that I should, on behalf of Her Majesty's Government in this Protectorate, acquire land from time to time from the natives, and in doing so I shall hope to make the most careful provision for their interests in the future. I feel bound, however, to add. that, having due regard to the interests of Her Majesty's subjects who may settle in New Guinea when the contemplated sovereignty is proclaimed, it will be necessary to survey and set apart considerable areas of land, the acquisition of such land from the natives being made a matter either of treaty or purchase, or by such other means as may be approved of by the representatives of Her Majesty's authority. 4. It is the more necessary that I should make this statement to you, because, if I am not mistaken, I gather from the expressions of your opinion to me yesterday that you would regard any attempt made in the form of a settlement by the survey and sale of land as the first step towards an infraction of the Proclamation made by Commodore Erskine on the 6th November, 1884. I cannot regard it as such, and it is my duty to inform you accordingly. I am, &c, John Douglas.

No. 2. Deae Me. Douglas,— Mission-house, 7th July, 1886. I beg to acknowledge the receipt of your letter of this morning re land purchases, and thank you for so kindly stating to me your views on the subject. The accompanying letter I had

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written previous to the receipt of yours, and as it treats only on the subject at issue I take the liberty of sending it, accompanied by a few words of more direct reply to your courteous letter. The purchase of the land selected for a cemetery would, I think, be justified even if the owners object, because it is directly for the benefit of the natives, and not to be transferred to any one else. I do, however, think that to compel a native to sell land which he objects to part with would be a direct contravention of the terms on which the Protectorate was proclaimed and accepted by the people on the 6th November, 1884. I was the translator of the documents into the language, and the interpreter in this and several other dialects. Every line was gone over by the Commodore and myself with Mr. Chalmers, that we might explain it thoroughly to the people. No intimation was given either that Her Majesty would require them to part with large tracts of land to the Government, nor yet that a large influx of white men was likely to spread over the land. On the contrary, they were led to expect that the Protectorate would save them from these. If the case had been put to them as it now appears, Ido not think the natives would have accepted the Protectorate. You will remember, Sir, the chiefs this morning said the people were afraid of a number of white men coming. lam sorry that we should differ in our views on this subject. Practically, Ido not think we are far apart. I need not assure your Excellency that Ido not wish to see the white man excluded, even if it were possible. lam only anxious that the confidence of the natives should not be shaken, and that the inevitable contact of the races should be for their mutual advantage. In this I know we are at one. I am, &c, W. G. Lawes.

No. 3. Sir, — Mission-house, Port Moresby, 7th July, 1886. In the conversation which I had with your Excellency yesterday on the land question I fear I may not have made sufficiently clear to you one or two points to which I attach great importance. The scheme, as I understand it, for the acquisition of land sufficient for the demands -of the large number expected, implies compulsory purchase where it may be thought necessary, always reserving a certain area for the indigenes of the soil; for if the acquisition of the land is so essential I cannot suppose that the plans of the Government would be thwarted by the unwillingness of a few natives to sell their lands. If the proclamation of sovereignty will involve such acquisition of land, then it seems to me that the Government will begin by breaking faith with the people, and the assurances of Her Majesty will be of no more value than the word of a " beachcomber." The natives were solemnly told, with all the emphasis which a grand naval demonstration could give to the assurance, " Your lands will be secured to you." The whole tenor, again, of both Proclamation and address was to impress upon the natives the belief that no large influx of foreigners would be permitted, and only those allowed to reside in the country for whose personal good behaviour Her Majesty would be responsible. If thousands or even hundreds come to New Guinea, what test can any Government employ to distinguish between the evil- and well-disposed ? " Evil-disposed men will not be allowed to occupy your land" (Commodore's address). If it was the intention of the Imperial Government to throw open the country for settlement, I think the people should have been told of that intention, that they might have had the opportunity of protesting and objecting. ANew Guinean may, in our children's time, complain of deceit and treachery, and say, " The first official document printed in our language bore the Queen's name, and assured us that our lands would be secured to us, and before the paper had rotted Her Majesty's Government acquired our lands from us." I fail to see how the Australian Colonies can utter one word of complaint, when combined Australia, from the Convention in Sydney, advised the Imperial Government that no acquisition of land should be permitted except through the Crown : then only for missionary or trading purposes. I go no further, Sir, than the Australian Convention went, and only recommend that the resolution be adhered to. I had the honour of submitting a letter expressing my views on this subject to the late Sir Peter Scratchley, who expressed his cordial approval, but feared they would be very unpalatable to Australia. The letter appeared in the Times of the 12th February last. If your Excellency has not seen it, and would like to do so, I shall be happy to send it up for your perusal. In conclusion, may I say that I quite believe the commingling of the two races to be possible, and for their mutual advantage; but it must be gradual and by degrees : a stream will fertilise, but a flood will devastate. I have, &c, To the Hon. John Douglas, C.M.G., W. G. Lawes. Special Commissioner for British New Guinea.

No. 4. Dear Me. Lawes, — Eesidency, Port Moresby, Bth July, 1886. I have received your letters of the 7th instant, and have to thank you for so clearly stating your case. The matter is one of such importance that I shall certainly submit the correspondence to Her Majesty's Secretary of State for the Colonies. I have, &c, John Douglas.

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No. 5. The Special Commissioner to Mr. Assistant Deputy-Commissioner Musgeave. Bth July, 1886. Me. Musgeave will please to state his views on Mr. Lawes's letters, especially in connection with the existing tribal relationships in which he has lately acquired some experience. J. Douglas.

No. 6. Memoeandum respecting Letters from Eev. W. G. Lawes, of 7th July, 1886. Government Bungalow, 10th July, 1886. I have the honour to state that I have read the above-mentioned letters with close attention, and now return them to your Excellency. It is quite impossible for me, however, to accept the interpretation of Mr. Lawes of the views or position assumed by the Imperial Government, or of the pledges given by its representatives at the time of the proclamation of the Protectorate in 1884. All official documents relative to the occasion are, so far as I am aware, published in the parliamentary papers noted in the margin,* and I can find no remarks recorded from Commodore Erskine or his deputies which even implied that this country (i.e., British New Guinea) should not become a field for settlement in the future ; nor can I discover any hint, on the part of the Imperial Government or its representatives, of the idea that the territory should be held as an almost unbroken native reserve upon which only missionaries and traders are to be allowed a footing—this state of things apparently to last for an indefinite period. The Imperial Government alone had power in regard to the affairs of British New Guinea, and I cannot find any trace of such a policy, either implied or expressed, before the date of the Proclamation or afterwards. If Mr. Lawes or Mr. Chalmers conveyed such an impression to the coast natives of the S.E. Peninsulaf of British New Guinea, it seems to me, on existing evidence, that they were neither officially authorised to do so nor in any way justified in so doing. Whatever personal reluctance to settlement of the Protectorate may be felt by Mr. Lawes and Mr. Chalmers, they had no right, if they have done so, to use their position of trust as interpreters to give a stamp of official approval to their individual views, however intense these may be and are believed to be. Mr. Lawes writes that "no intimation was given either that Her Majesty would require them [the natives] to part with large tracts of land to the Government, nor yet that a large influx of white men was likely to spread over the land." This, although negative evidence, is very likely to be correct. On the other hand, I cannot detect that any intimation was given by the Commodore or his deputies that lands might not be so wanted, nor that a large influx of white men might not be attracted hither by gold or other objects. No such promises could have been reasonably given by any Government. They appear also in direct opposition to the original line of policy laid, down in a letter from the Colonial Office! *0 which I have previously had occasion to invite your Excellency's attention. There can be no doubt, from this important document, of the original views of Her Majesty's Government, which contemplate the acquisition from the natives and the sale and lease of local lands by the local Administration. The paragraph to which I refer is as follows : —■ "There is no evidence whatever of the power of the natives to enter into contracts which would be intelligible to them or binding upon them, or of their willingness to allow private settlers to occupy their country. But, if there were no objections from the native point of view to so extensive an appropriation of territory, it would be impossible that any acquisitions, or ostensible acquisitions, of land could be sanctioned and confirmed in the event of the territory hereafter becoming British. It is clear that without the funds arising from the sale and lease of lands it would be impossible to provide for the government of the country; and any persons who may now settle in the country, knowing that Her Majesty's Government is considering the question of annexing it, must distinctly understand that no acquisition of land made previous to a decision on this subject can be recognised to the prejudice of the Crown." I am unaware of any departure from the policy proposed in the despatch to Mr. Schubert, while recent communications sanction the belief that the inevitable course of settlement which has begun to take place here is expected by Her Majesty's Government, and is about to be arranged for accordingly on a judicious and humane basis for all classes. As to the pledge quoted by Mr. Lawes —"Your lands shall be secured to you"—unless it be meaningless it must involve the adoption of some system by which quiet possession shall be insured to the natives under authority. This in turn necessarily involves the exercise of discretionary power on the part of that authority in organizing such a mode, and in dealing generally with territorial questions. I need not dwell on the insecurity of land-tenure and of the products of the soil among the aborigines themselves of this territory : constantly recurring intertribal feuds disturb the limits of districts, in some cases depopulating them altogether. Besides such lawless acquisitions of the land by native tribes, there is an intermediate harassing state of affairs where a considerable proportion of growing crops are stolen from time to time by stronger neighbours. Thefts of this kind are far from infrequent even here in Port Moresby, among the Motuan people, within the longest-settled sphere of mission influence, and under the wing of the mission head-quarters. There are known to be large tracts and spaces of country also unoccupied, and apparently unclaimed by any indigenous population. Under these circumstances it is plain that the phrase, " Your lands will be secured to you," cannot possibly imply the rigid preservation of agrarian

* Parliamentary Papers, C. 4273, Feb., 1885. f No notification at all, I believe, was made to the natives of the N.B. coast, in the S.E. islands, or west of the Aird River, as to the protectorate, or directly to any inland tribes. I Parliamentary Papers, C. 1566, No. 24, 1, 56; also Appendix E.

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discord and pillage in one part of the territory, and the exclusion of settlers from waste portions of the other. The local Government will therefore have to interfere, as in all colonies and communities under British rule, subject to the approval of the Colonial Office, to determine and adjust the territorial relations existing between various tribes, in order that certain lands and their products maybe secured to them in their true sense. And it is equally impossible to believe that a paternal Government could suffer the plans for the general good to be thwarted through the prejudice and obstinacy of a tribe or some of its members, influenced very possibly by a " beach-comber " who has married one of their women, or by any other equally obstructive person who has gained undue ascendancy over them. The fact is that all the public actions and expressions of those charged with establishing the Protectorate show that they simply and solely intended to guard the aborigines against unscrupulous adventurers. In this connection Commodore Brskine left the Eegulation 4 —" No settlement or acquisition of land is on any account to be permitted." Why does Mr. Lawes not quote this statement ? Purely, I believe, because he is aware that it could not possibly be construed as applying to a local Government in any literal sense. If he wishes, however, to treat Eegulation No. 4 in this inflexible spirit, it would be satisfactory to know whether the Mission have been, careful, in obtaining their stores since November, 1884, to abide by the stringent Eegulations Nos. 2 and 3, in respect of the landing of spirituous liquors, firearms, gunpowder, &c. It is noteworthy that the Eev. Mr. McFarlane holds diametrically opposite views on the subject of settlement to those of Mr. Lawes ; and his opinion is entitled to more weight. He founded the mission in British New Guinea, and has resided here considerably longer. His knowledge of the portions of Eastern New Guinea and the islands is co-extensive with that of Mr. Lawes, while he has travelled much in the western division, with which part of the territory Mr. Lawes is unfamiliar. In a lecture given in Brisbane in January last, prior to his final retirement from mission work, he summarises his experience gained during fifteen years, and encourages strongly the idea of settlement and the development of local natural resources. I append copies of some interesting extracts from the lecture as reported in the Brisbane Courier of the 30th January last. The expression, "He would like to.see the.country thrown open to-morrow," is remarkable, as signifying the abolition of all checks upon the indiscriminate intercourse between aliens and indigenes, and appears to discredit the system of permits to aliens which the late Special Commissioner introduced as a wise temporary measure of precaution in the interests of both foreigners and aborigines. Finally, in respect of the acquisition of lands in the district of Port Moresby to which this correspondence more particularly applies. As the friendly dictation or compulsion of a paternal Government towards its " wards of the Crown" ought not easily to be confounded with the callous and selfish greed and action of the " evil-disposed persons " mentioned in the Queen's Proclamation, I cannot see the fairness or the force of the objections of Mr. Lawes to what he defines as " compulsory sale," more especially as he knows that other lands of equal value are in the hands of the local Government for substitution, in lieu of a usual payment in "trade," should the native landowners whose property is in question express a preference in the matter. What Mr. Lawes describes as a " compulsory sale " is precisely what it is now proposed to do in Ireland in order to set agrarian matters on a stable and equitable basis. Sacrifice of individual interests on a reasonably assessed value for public purposes and the general good is an admitted principle, as I understand it, in all forms of administration, and I see no hardship in applying it to British New Guinea, either in the case of European immigrants or a barbarous population who could not understand or forecast the advantages they must necessarily derive from contact with higher grades of civilisation and various public improvements. Mr. Lawes indeed admits the principle in the case of land urgently required for a cemetery, nor would he probably urge a serious protest against a road being provided to that point, whether or not the natives suffered some temporary dissatisfaction on the subject. I have dealt thus at length with the subject because I desire that your Excellency should not think I have avoided any difficulty which presents itself. This Protectorate, I need hardly say, is no exceptional point of the globe worthy to be jealously guarded in its primitive state. It is no scene where an innocent and united people dwell in conditions of Arcadian simplicity and peace and plenty, which should be sympathized with and respected. I believe the natives to be susceptible of improvement; but they have all the vices and customs of savages, and will require an extraordinary union of firmness and consideration in their management. Perpetual murders a.nd intertribal butcheries of the most revolting nature, arising from frivolous or superstitious pretexts, are of almost daily occurrence within the Protectorate. Were Mr. Lawes and his teachers all disarmed tomorrow, and Her Majesty's ships withdrawn from the coast for a year or two, it is hardly doubtful, to my mind, what the fate of the Mission would be, even after its fifteen years of association with the coast tribes at various points. A. Musgrave, Jun., Assistant Deputy-Commissioner.

Bxteacts from Lectuee by the Eev. S. McFablane, 29th January, 1886. * * * * * * * " He would tell them something that they did not write about at the time, and that was that the missionaries discovered gold there* in 1875. He was not such a fool as to write about the matter, or there would have been a rush of people there, many of whom would probably have lost their lives, and the goldfield might have been 500 miles distant. He knew a place where a nugget had been picked up on the beach, but he did not know where it came from. Gold was the most widely distributed of all metals, and the fact of their finding grains of gold did not prove that the. field from which it came was within hundreds of miles

* On the Maioassa Eiver.

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" If they wanted land they would have to arrange with the natives for it, and in the vicinity of Port Moresby they would frequently find as many as twenty different natives laying claim to one piece of land. He predicted that, as far as the Peninsula itself was concerned, the landquestion would in the future prove to be a difficult one. In the interior, however, they might take up as much land as they liked. Speaking of the question of the government of New Guinea, he said it could even now be made self-supporting. They had for products pearl-shell, beche-de-mer, and cedar, and a royalty on these would recoup the cost of governing the island "As for produce, there was such land as he had described. They had about fifty teachers all along the coast, and these had informed him of the large quantities of cedar grown in that portion of the island. He would not be much surprised to find that if gold was ever discovered in New Guinea it would be on the Gulf. There was in that vicinity a spot, about two days' journey from Katou, which had never yet been visited by white men, in which it was possible there might be gold. There was, no doubt, plenty of mineral wealth in New Guinea, but apart from that there was no doubt the Government could be supported by revenue in the manner mentioned " Mr. McFarlane, in returning thanks, said there was only one thing he could add. There was a feeling abroad that the missionaries would like to keep the island and its belongings to themselves : but such was not the case. He would like to see New Guinea thrown open to-morrow, but he would make it hot for the murderers, black or white, if he were Governor of the country." — From Brisbane Courier, 30th January, 1886.

APPENDIX G. .No. 1. Deak Mr. Lawes, — " Governor Cairns," Hall Sound, 3rd August, 1886. We picked up Father Verjus on board a small lugger, on his way to Yule Island to Port Moresby, to see me. He returned with me to Yule Island, which I visited yesterday, and his intention is to go on to Port Moresby in order to see you, and in order to come to some understanding with, you as to the respective spheres of work which it may be found convenient to adopt as regards himself and yourself as representing, respectively, the Mission of the Order of the Sacred Heart and the London Missionary Society. In this I hope that he will be successful, as it is manifestly undesirable that you should both occupy the same ground, and thus come into unnecessary rivalry where there is such a wide scope for usefulness in humanising and christianising the natives. A wholesome rule to adopt would be that the Catholic and Protestant missions should occupy stations not too closely approximate to one another. As regards Yule Island, I understand the case to stand thus: The London Missionary Society undoubtedly occupied Yule Island first; they, however, abandoned it, and formed stations on the mainland. There was no station on the island, and there had been no station on it for some years —four at least, I am informed—when, it was occupied on behalf of the Catholic Mission in June, 1885, by Father Verjus and two lay brothers. They were stricken with fever, and in August following they returned to Thursday Island in order to recruit. They handed over the buildings they had erected to the natives, telling them to take care of them during their temporary absence. They returned in January of this year, and they then found that a teacher of the London Missionary Society had been placed on the island. Since then they have erected some buildings, and a house is in course of erection for your teacher, though I understand that he is still resident on the mainland. This, in broad outline, is the present state of affairs. There can be no doubt that there was, and that there is, a bond fide intention to occupy the island for mission purposes by the Catholic order, and I cannot but think that it had, for such purposes, been abandoned by the London Missionary Society. Under such circumstances it seems to me to be a matter of regret that it should now be occupied by the London Missionary Society. Could you not come to some understanding with one another that you should not occupy stations in too close proximity to one another ? And could not I help you to arrive at such a conclusion ? Where there is such a wide field there certainly ought not to be any great difficulty in coming to some friendly conclusion so as to avoid the possible contingency of unprofitable rivalry in the winning-over of these wild creatures of nature to the gracious influences which you both seek to impart. I have no more doubt of the genuine desire of the Catholic Mission to do this than I have that it is equally the aim of your great society. You are both equally engaged in the same noble endeavour, and I should be loth indeed to suppose that there should, be any unworthy rivalry, or indeed any waste of strength in bringing to bear the principles of Christianity on the benighted race which occupies this magnificent country. Protestants and Catholics alike are fighting under the same banner—they are both of them willing to lay down their lives in the same cause ; and lam extremely anxious that, so far as my influence is concerned, it should be exercised in the direction of securing a good understanding between yourself as representing the London Missionary Society, and Father Verjus as representing the Mission of the Order of the Sacred Heart. The shores of New Guinea ought, I feel, to be as open to them as they are to you. There have sometimes, in matters of this kind, been contentions, as we know, which did not redound to the credit of those most intimately concerned. It will be my duty, in the position which I at present occupy, to see that no occasion for unnecessary differences should arise, and it is in this hope that I now address you. I have requested Mr. Musgrave to call on you, and to advance by every means in his power the friendly understanding which I hope will be arrived at. I am, &c, The Eev. W. G. Lawes. John Douglas.

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No. 2. Dear Mb. Douglas,— Port Moresby, 6th August, 1886. I thank you for your letter of the 3rd, brought by the Eev. Father Verjus, and delivered to me yesterday by Mr. Musgrave. It is a very clear expression of the views which I and my colleagues hold respecting the relations of the missions. There is not a sentiment in it at variance with my own ideas on the subject. The rule you suggest I accept cordially without any hesitation; it is wise and just, and the only one that will prevent complications and waste of strength. But a rule of this kind, to be effective, must be accepted by both parties. In the very friendly conference I had to-day with Father Verjus, I found that their orders from Eome override every rule. I contended that their occupation of Yule Island was a thorough infringement of the rule you suggest for our guidance; that it was much too close to our station at Delena; that, the people being one and the same, speaking the same language, coming and going constantly, living sometimes at Delena and sometimes at Yule Island, it was like occupying part of the same village ; and that, wherever such close proximity exists, there is a danger of the evils you deprecate. To this the Father replied that their orders from Eome to occupy Yule Island were definite and explicit, and that they must, under any circumstances, obey them. That being the case, discussion is useless, and no rule, however good and wise, can be binding. lam sure no one who is acquainted with the history of the case can question the fact that the Eoman Catholic station, just opposite Henere's house at Delena, is far too close for peace and comfort. But, while they state the impossibility of even considering the question of removal from Yule, they ask us to remove our teacher from Yule Island. I think you are aware, Sir, that the directors of our society leave the details of work and the entire management of the mission to the resident missionaries, who form a committee. The directors do not impose upon us any orders or instructions that may fetter us in the slightest degree. But at the present time I am quite alone, and I could not take upon myself the responsibility of such an important step without first consulting my colleague, who is in England, and the directors of our society. At the same time the request seems to me unfair and unreasonable. We do not consider that Yule Island has been abandoned by our Mission. The information you have received respecting the history of our connection with Yule Island is quite correct, but not quite complete. Will you allow me, Sir, to supply the missing link ? After the removal of our teachers in 1876, we had no means of reoccupying it until 1882. In 1881 my colleague, Mr. Chalmers, visited the whole of that district to select sites for houses for teachers who were expected early in 1882. He found Yule Island was deserted by the people ; that the chief, Lavao, and many of the people had gone to live at Delena. He put up the teacher's house there; and a few months later Mr. Chalmers, Mrs. Lawes, and myself went to Delena and stayed some time. We visited Yule Island, but with the exception of one old man named Eabiei and his family it was uninhabited. In 1882 Henere came, and we placed him at Delena. He was the Yule Island teacher, and would have been placed there if there had been any people left to work among. Eabiei was hurt that they should be neglected. He had been very kind to the first teachers. We promised him that when the people came back to Yule he should have a teacher. I have never been to Delena since, but the old man has come across to know when he was to have a teacher. The island remained uninhabited until the end of 1884 or early in 1885, when the people began to come back to the island. In March, 1885,1 wrote, on behalf of the Mission, for the teacher who is now appointed to Yule, and some time in the course of that year the wood was cut for the teacher's house. It was in fulfilment of an oft-repeated bond fide promise. The people gladly built the house, and when I took Eatu the other day they received him most cordially. They told me that they had not quite finished the house, because they were afraid we should deceive them and not keep our promise. We look upon Yule Island and Delena as being most intimately connected. The chief and owner of the island, whose name it bears, is one of our people, a baptized Christian. The majority of the people at Delena may return to Yule Island at any time. The connection is much closer than between Jane Island, here in Fairfax Harbour, and the village of Port Moresby. Our Eoman Catholic friends at Yule are building their house on our piles; they owe the safety and peacefulness of their lives to our Mission, which Father Verjus frankly admitted. I can but think that if Father Navarre had been acquainted with all the facts of the case his sense of honour would have prevented his occupying Yule Island until he had represented the matter to the authorities at Eome. I expressed to Father Verjus my regret that the interview which he has sought now was not held before they occupied Yule Island. We recognise fully the right of the Eoman Catholic brethren to reside on Yule Island if they deem it honourable and right, and should not think, Sir, of appealing to you on the subject, or making any complaint whatever. Pending an answer from England on the subject, I do not think there is any fear of complications. I have given the strictest injunctions to the teachers to avoid everything that may be a cause of offence, and the relations between myself and Father Verjus are quite friendly. Thanking you for the interest you have taken in the matter, and for the suggestions so kindly given, I am, &c, The Hon. J. Douglas, C.M.G., Thursday Island. W. G. Lawes.

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APPENDIX H. no. I.—foem of conditions. Beitish New Guinea. Memobandum of Conditions under which permission is granted to to proceed to New Guinea for the purpose of 1. I undertake faithfully to inform Her Majesty's Special Commissioner, or such public officer as may be specified by him, as to my proceedings at all times within the limits of British New Guinea ; to conduct my operations entirely at my own risk, and on the understanding that neither Her Majesty's Special Commissioner nor any public officer of British New Guinea assumes any responsibility whatever, except in the case of official intervention which may be considered necessary. 2. I agree to abide by the Arms Eegulations Act of 1884, and all other regulations now in force in the Protected Territory of British New Guinea, as well as all such regulations as may be passed from time to time, and to pay to Her Majesty's Special Commissioner such license-fees, duties, &c, as may hereafter be levied, from time to time within the limits of British New Guinea. This permission is only to apply to the above-stated object, namely, and subject to the fair treatment and payment of the natives in respect to the same.

No. 2.—FORM OF PERMIT. Beitish New Guinea. Peemission is herewith granted to to in the District of , in British New Guinea, in accordance with the conditions agreed to by him. Her Majesty's Special Commissioner reserves to himself the right to cancel this permission, and to call upon the said to leave the territory, should he or his agents at any time perform any act which the Special Commissioner may consider detrimental to the maintenance of good order and government within the limits thereof. Special Commissioner.

APPENDIX la. PEOTECTOEATE OF BEITISH NEW GUINEA. Statement showing the Total Eeceipts and Expendituee from the Ist March, 1886, to the Ist June, 1886. Db. £ s. d. I Ob. £ s. d. To Grants in aid for twelve months I By Balance from last statement .. 2,349 210 ending the 31st May, 1886, viz.— Establishments— Western Australia .. .. (a) 323 13 6 Salaries, fixed — New South Wales .. .. 4,084 14 i\ Special Commissioner .. .. 625 0 0 Victoria .. .. .. 4,693 88J Deputy-Commissioner.. .. 16 13 4 South Australia .. .. 1,524 11 7 Assistant Deputy-Commissioner 175 0 0 Queensland .. .. .. (6) 826 7 6 Accountant .. .. .. 50 0 0 Tasmania .. .. .. (c) 632 5 0 Allowances— Proceeds of sale of stores— Travelling expenses of CommisSale of boat, stores, &c. .. .. 159 18 9 sioner, and staff, &c. .. .. 275 17 0 Services (exclusive of establishments) — Steamer " Governor Blackall"— Charter-money .. .. 175 0 0 Eestoration .. .. 500 0 0 Schooner " Governor Cairns " — Stores .. .. .. 315 1 0 Clothing .. .. .. 23 18 10 Wages of master and crew .. 34 5 0 Incidentals .. .. .. 4 10 10 Contingent expenditure—■ Clerical assistance .. .. 10 0 0 Arms and ammunition .. .. 84 6 2 Cablegrams, &c... .. .. 46 11 8 Gratuity to G. S. Fort .. .. 30 11 5 Incidental expenses .. .. 73 16 6 4,789 14 7 Balance .. .. .. .. 7,455 4 9 £12,244 19 4 £12,244 19 i (a) Two years' contribution. (6) After allowing for an over-payment of £336165. 3d. in 1885. (c) Allowing for a further contribution of £30 6s. 2d. received in June, Tasmania has actually over-contributed the sum of £1 18s. lOd. JOHN DOUGLAS, Cooktown, 29th September, 1886. Special Commissioner.

Ceetificate of Audit. I hereby certify that I have examined the accounts of the Protectorate of British New Guinea for the period between the Ist March and the 31st May, 1886—amounting on the credit side (including the sum of £2,349 2s. 10d., balance brought forward) to £4,789 14s. 7d., and on the debit side to £12,244 19s. 4d.; and find— 1. That all sums received have been duly brought to account; and that the several payments made have been correctly computed, and are supported by proper vouchers. 2. That, assuming the population, as ascertained by the census of 1881, to be the basis of assessment, each of the several colonies (with the exception of Fiji) has contributed its full quota. The contribution of New Zealand, however —viz., £2,G68 18s. 9d.—and a balance of £30 6s. 2d. paid by Tasmania, did not reach the bank until July and June

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last, respectively, and are therefore not included in the present account. Fiji has not contributed; Tasmania has overpaid £1 18s. lOd. 3. That, in order to enable the Assistant Deputy-Commissioner at Port Moresby to make payments in New Guinea without unnecessary delay, a cash credit has been established in his favour with the Queensland National Bank at Brisbane. Accounts and vouchers in support of cheques drawn against this credit should be rendered at least once a month, so as to enable the necessary adjustment entries to be regularly and promptly made in the Commissioner's books. No such entries are, however, included in the three months' accounts now under examination, whilst the bank pass-book shows that considerable sums have been drawn by the Assistant Deputy-Commissioner. 4. That, in order to comply with the terms of a despatch from Lord Derby, dated the 9th May, 1884, the financial year of New Guinea has been recently altered, and made to terminate on the Ist instead of the 30th June. The 30th June is, I think, a more convenient period for the termination of the financial year, and, as the majority of the colonies consider that the payments made by them are to the 30th June, 1886, complications are likely to arise if the recent change of date is adhered to. W. L. G. Drew, Department of Audit, Queensland, Auditor-General. Brisbane, 16th November, 1886.

APPENDIX Ib. PROTECTORATE OF BEITISH NEW GUINEA. Statement showing the Total Eeoeipts and Expenditure from the Ist June to the 30th November, 1886. Dk. £ s. d. £ s. d. To Balance brought forward from 31st May, 1886 — .. .. .. .. .. 7,455 4 9 Grants in Aid — New Zealand Government .. .. .. .. .. 2,668 18 9 Tasmanian Government, balance due for year ended Ist June, 1885 .. .. 30 6 2 Other Receipts — Export duty on 36,000 ft. cedar .. .. .. .. .. 18 0 0 — 2,717 4 11 £10,172 9 8 • • ' Ob. By Establishments — By Port Moresby —continued. Salaries fixed— £ s. d. an( j saddlery, £114 145.; freight £ s. d. Special Commissioner from Ist June an( j insurance, £97 4s. Id. ; incito 30th November, 1886, £1,250; dentals, £67 4s. lOd. ; erection of Assistant Deputy - Commissioner gao^ £g 75 . surV eys, £787 ; plans, from Ist June to 30th November, £33 125.; cottage for gaoler, £40 ; 1886, £350; Accountant from Ist men's quarters, £134 6s. Bd. ; surJune to 30th November, 1886, £150 1,750 0 0 veying instruments, £37; chief's Allowances— house, £15 ; Government store, £73 Travelling expenses, Special Commis- 3 S , g^. p Urc hase of cutter "Daisy," sioner and staff 213 13 0 £300; wages of master of ditto, £38; Services (exclusive of Establishments)— stores, &c, for ditto, £73 12s. ; Schooner "Governor Cairns " — In- charter of cutter "Ada," £8 95.; surance, £190 12s. 6d.; stores and pro- charter of schooner "Retriever," visions, £252 12s. 5d.; clothing, £15 £75 . boatmen's quarters, £26 ; Is. 3d. ; wages of master and crew, well-sinking, £7 10s.; moorings and £711 6s. Bd.; stationery, &c, £10 Bs. buoys, £20 3,435 19 1 3d; medicine, £5 17s 6d.; fittings. Dinner Island Establishment— £63 7s. sd. ; marine stores, £120 9s. Salarieslid.; incidentals £39 7s. Bd. ; re- Government Agent, from Ist July to pairs, £174 13s. 8d .. ••1' 583 17 9 30th November, 188G .. .. 250 0 0 Q.G.S. "Albatross"—General expenses 17114 0 ContingenciesMail service - Burns, Philp, and Co. Rent of house from Ist July to 31st (three months'contract .. .. 150 0 0 December, 1886, £10 ; charter of Port Moresby Establishment— lugger " Coral Sea," £160.. .. 170 0 0 Ist March to General Contingent Expenditure30th November, 1886, £137 4s. 6d.; Provisions and trade £886 Is Id. , Government assistants from Ist audit foe, £50 ; medical attendance, March to 30th November, 1886, f,t r^i iMA dSntal *&"&&?' £360; general wages from Ist March £W 6s. 2d.; cablegrams, &c, £35 15s. to 30th November, 1886, £582 3s. 2d. salary from Is No- ,-,, "L 079 3 1 vember, 1885, to Ist February, 1886, AllnwannAall £30 '• insurance on cargo, &c, £45 Lodgmg allowance to clerical assis- 10s.; purchase of cattle, £15; agency taut to 30th November, 1886, £40 ; £ccs> &0- £15 17s 1 290 2 5 travelling expenses, £22 14s. 62 14 0 Miscellaneous expenditure— lv, 0/ a Fencing, £36 7s. 2d.; building mate- Balance 15 1 i. rials, £327 13s. 6d. ; water-supply, „ £94 18s. 3d. ; forge and tools, £32 &IU,IU y_V 05.7 d.; hardware,£223s.6d.; horse ~ Brisbane, 11th January, 1887. Special Commissioner.

Cebtificatb oi? Audit. I hereby certify that the accounts of the Protectorate of British New Guinea for the six months ended the 30th November, 1886—amounting on the credit side to £10,157 Bs. 4d.., and on the debit side to £2,717 4s. lid. (which includes a'sum of £18 collected as export duty on cedar)— have been audited ; and I find,— 1. All sums received have been duly brought to account; the several payments made have been correctly computed, and are supported by proper and duly certified vouchers. 2. The operations by the Assistant Deputy-Commissioner at Port Moresby upon the cash credit granted him for the purpose of making necessary payments in New Guinea are included in these accounts, the vouchers necessary to enable the Accountant to make the required adjustments in the books of the Special Commissioner having been duly rendered by Captain Musgrave. 4—A. 5.

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3. Accounts representing in the aggregate a considerable sum expended at Port Moresby prior to the Ist June last not having reached the Special Commissioner in time to enable him to embody them in the previous statement, the effect has been to correspondingly swell the apparent expenditure for the six months now under review. 4. I am glad to be able to certify that the several books submitted for examination, and the vouchers in support o£ the entries therein, exhibit considerable care on the part of the Accountant. W. L. G. Dbew, Audit Department, Brisbane, 14th January, 1887. Auditor-General.

APPENDIX 11. BEITISH NEW GUINEA PROTECTORATE. Assets and Peopeety of the Goveenment at Poet Moeesby. £ s. a. Government bungalow (total cost) ... ... ... 1,083 16 0 Furniture ... ... ... ... ... 230 4 4 Government store ... ... ... ... ... 73 3 6 Gaol ... ... ... ... ... ... 975 0 0 Surveys ... ... ... ... ... 787 0 0 Fencing (cemetery, &c.) ... ... ... ... 100 0 0 Stockyard ... ' ... ... ... ... 35 0 0 Men's quarters ... ... ... ... ... 174 6 8 Seven horses, £10 per head ... ... ... ... 70 0 0 Six calves, £2 10s. per head ... ... ... ... 15 0 0 Whaleboat and fittings ... ... ... ... 100 0 0 Cutter " Maino," nee "Daisy" ... ... ... 300 0 0 Fifty tons of coal, £2 15s. per ton ... ... ... 137 10 0 Various tools and forge ... ... ... ... 60 0 0 Saddlery and tackling ... ... ... ... 44 14 0 Chiefs house ... ... ... ... ... 15 0 0 ■ Survey instruments ... ... ... ... 3700 Meteorological instruments ... ... ... ... 40 2 0 Dingy ... ... ... ... ... ... 20 0 0 Gaoler's cottage ... ... ... ... ... 40 0 0 Moorings and buoys ... ... ... ... 20 0 0 Water-tanks and piping ... ... ... ... 94183 Various rifles and revolvers ... ... ... 80 0 0 Roads, clearing mangroves, &c. ... ... ... 200 0 0 Purchase of land ... ... ... ... ... 347 0 0 Argus Villa and improvements ... ... ... 100 0 0 Gatling gun and ammunition ... ... ... ... 350 0 0 Thompson's deep-sounding apparatus ... ... ... 70 0 0 Photographic apparatus ... ... ... ... 50 0 0 Piping, additional ... ... ... ... ... 160 0 0 Wells at Granville West ... ... ... ... 100 0 0 Stores and trade on hand, about ... ... ... 300 0 0 Total ... ... ... ... £6,209 14 9

APPENDIX 111. Estimated Annual Expenses fob the Maintenance of a Steameb foe Use on the New Guinea Coast. & Captain ... ... ... ... ... ... 360 First officer ... ... ... ... ... ... 200 Second officer... ... ... ... ••■ ... 160 Third officer ... ... ... ... ... ... 140 Chief engineer ... ... ... ... ... 240 Second engineer ... ... ... ... ... 200 Third engineer ... ... ... ... ... 160 Pour quartermasters, at £9 per month ... ... ... 432 Four leading firemen ... ... ... ... ... 432 One carpenter, at £10 per month ... ... ... ... 120 One steward, at £9 per month ... ... ... ... 108 One cook, at £9 per month ... ... ... ... 108 Eight native deck hands, at 10s. per month ... ... ... 48 Six native firemen, at 12s. per month Four native servants, at 10s. per month ... ... ... 24 Rations for eighteen white men, at £3 per month ... ... 648 Eations for eighteen natives ... ... ... ... 100 Coal for 8,000 miles, 250 tons at 50s. ... ... ... 650 Insurance or sinking fund, 7 per cent. ... ... ... 840 Repairs and refits (average) ... ... ... ... 300 Stores (average) ... ... ... ... ... 300 Extra coal, incidentals, clothing, &c... ... ... ... 500 Total ... ... ... ... ... £6,114

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APPENDIX IV. Sm, — Samarai (Dinner) Island, S.E., New Guinea, 10th September, 1886. I have the honour to report to your Excellency the progress of events in the district under my jurisdiction. Following my intention indicated in my letter of the 6th August last, I proceeded next day on board the s.s. "Victory" to Giligili, Milne Gulf, where I inspected Messrs. Kissack and Co.'s thriving copra-station. I then investigated the question of threatened hostilities on the part of the natives referred to in my last letter. I found that Messrs. Kissack and Co.'s Maltese in charge had been guilty of acts offensive to the natives. After some discussion the matter was arranged between all parties in an amicable manner. I could not help, however, observing that the natives from the surrounding districts, who had come in as spectators of what was going on, exhibited only a very latent friendliness. On my return from this malarious district I was laid up for several days by a severe attack of fever. I have to report to your Excellency a breach of the regulations in force regarding the importation of spirituous liquors. Eurey Augustin, a Mauritius half-caste (at one time my servant, but dismissed for bad conduct), imported from the " Victory" spirituous liquors on her arrival. I warned him that it was illegal so to do without a permit, but he repeated the act on the return of the vessel here both from Teste Island and from Milne Gulf. During my absence in Milne Gulf he appears to have had an attack of delirium tremens, in which his conduct was so violent that the teacher's family, in whose house he was living, were compelled to take refuge in the bush. Owing to my own illness it was some days before I could investigate the matter. He fully admitted his offence, but, as it is difficult to enforce here any punishment I may desire or find necessary to inflict, I considered it best to take his retribution ad avizandum ! Meanwhile I offered him a chance of retrieving his character by good conduct in employment about my house, promising him a fair wage. Only a few days did he conduct himself creditably. He not only refused to recognise, but even tried to resist, before the natives, my authority. lat once held an inquiry on his previous conduct, and took down in his presence the evidence of those who actually saw him with spirituous liquors ashore, drunk, or misconducting himself, and placed him in arrest on board the " Coral Sea," away from intercourse with the natives, till further orders. At the moment of writing it is my intention to send him to Cooktown by H.M.S. " Harrier " about the 15th instant, if this can be done. This will get rid of an objectionable character out of the Protectorate. On the 16th August last the " Coral Sea " arrived after a rough passage from Port Moresby. On the 18th I considered it my duty to despatch her to examine {via Teste Island owing to the wind) the islands to leeward of the probable route taken by Dick's missing boat. On her arrival at Teste Island, however (where she landed a Earotongan missionary of the London Missionary Society, who is to labour there), she found that canoes from the islands intended to be visited had recently arrived at Teste Island, and reported that none of the missing men had reached their islands. It is now beyond doubt, I fear, that all have perished. ' Until the 24th August the " Coral Sea " was occupied in transferring surplus stores on shore, fixing new sails, and getting thoroughly cleaned out (of which she was very much in need). I employed, meanwhile, a couple of the men for two or three days in sinking shafts in search of fresh water. The flat-land bore has produced only brackish water; the higher one will, I hope, yet afford us a better supply, but from a depth of lift. Meantime rain-water is more abundant than desired. On the 20th August a large canoe-load of Milne Gulf natives—relatives of one of the lads drowned in Dick's boat—arrived in Dinner Island (the place of the boat's starting) to wail. They were mostly armed, and their movements about the island were so suspicious that it was considered advisable to keep a very sharp night-watch on them, lest they should secure some one's head in payment, according to their custom, for the death of their relative. On Sunday, the 22nd, they intimated that they would be satisfied with an exchange of gifts in token of friendship. This was arranged at my request by Dick and other residents on the island, when they quietly took their departure. On the 21st August Mr. Kissack arrived from Teste Island to select, on behalf of his firm, a site for his house and store, agreeably to your Excellency's permission and terms. Enclosed are copies of the documents relating to this transaction, which I trust may meet with your Excellency's approval. Enclosed also is my own bank draft for £5, the annual license-fee paid me by Mr. Kissack in notes. As the firm is anxious for the completion of the buildings before the arrival of the s.s. "Victory" in October next, operations were begun at once, and are progressing rapidly. On the 25th August H.M.S. " Dart " arrived from Townsville after a stormy passage, bringing the mail. The weather experienced by her and the " Coral Sea" supervened here, and continued, accompanied by heavy squalls of wind and rain (detaining the " Dart " at the anchorage here), till the 30th, since when calms and uncertain winds have prevailed. On the 30th I proceeded to Heath Island to examine it, in accordance with your Excellency's instructions, for a site for a Government residence (which will be absolutely necessary for your Excellency's representative during the heavy winds and rains of next monsoon, as the edifice of the London Missionary Society is everywhere leaky, and in an insecure condition). I shall make a report on my visit on a future occasion when I have seen all the other likely localities. On the 2nd September I proceeded to Killerton Islands in consequence of the unfriendly relations between the people of Milne Gulf and Dien, the London Missionary Society's teacher there, and their threats and attack on him. After a long conversation with Dien—whose statements at different times were much at variance and unconfirmable, owing to my having no interpreter through whom to examine the natives—l found it very difficult to discover where the blame lay. I imagine both sides are at fault. I have warned Dien to keep strictly to his missionary duties (he admits he has been hunting " by his boys " for paradise-birds in the lands of the tribes of the Gulf, and that he has been making gardens—very probably not illegally—there also), and that if, on further

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trouble arising, it should be found that he has been encroaching on their rights, he will have to bear the consequences. I warned the natives, also, that, if they molest Dien without cause, Government will protect him and punish them. Having on our return journey been becalmed for a whole day under a fierce sun, I was, on arrival, laid down with a relapse of fever, which prostrated me till the Bth instant. On the 9th I proceeded to Blanchard Island to examine it for a probable site for a Government residence, and I shall, on a future opportunity, report on its suitability. The following extracts from my diary since date of last writing will afford your Excellency some idea of the rather disaffected attitude of our neighbours, and will probably give good ground for drawing the attention of the Admiral commanding the Australian station to the desirability of there being—now that a considerable colony of whites is establishing itself, whose commercial prospects depend on some degree, at least, of security—a man-of-war, other than a surveying ship, more constantly here. Moreover, Messrs. Kissack have (unofficially) drawn my attention to the increased difficulties now to be encountered in Milne Gulf—one of their stations is at Maivara—since the occurrences related below. " September 4th.—Captain Mullens, of Kissack and Co., called here and reported as follows : ' I have just returned from the Louisiades. Visited Pig Island on the 13th July, and found that the native lad whom I had left there in charge of our station had been murdered, about (as near as I could discover) the 4th of July last, by the Low Woody Islanders. These people had asked me recently to make a station on their island. As the reefs are not productive enough in that vicinity, I told them I would not make one at present. This had evidently offended the Low Woody Island natives. They, about the 4th July, therefore, had proceeded to Pig Island (Low Woody Island is to the north of Joannet Island, and Pig Island is to the south-east of it) in two canoes with twelve to fifteen men, beheading the lad, taking away the head and all the trade belonging to Messrs. Kissack and Co. The head they traded to the St. Aignan people (who attacked Lieut.-Commander Marx). My boys, who were working on Wooded Islet Eeef, about twenty-five miles to the northwest, when they learned of the outrage—they are Senard Island natives—at once set out for Low Woody Island. I accompanied them in the schoones. I neither prevented nor persuaded them in the matter further than warning them that they should kill nobody. I anchored at Low Woody Island in my usual place. The Eenard natives went on shore—where one half of the people, who number in all about a hundred, are at war with the other half—and burnt two houses, and destroyed two canoes.' " I told Captain Mullens that I would report the whole matter to His Excellency, the Special Commissioner, for instructions. " Captain Mullens further reports : ' I visited Conde Point, Sud-est Island ; I found the natives very disaffected, dangerous, and threatening, because a lad belonging to one of the villages there who had been taken away by the "Elsea," a vessel belonging to Messrs. Burns, Philp, and Co. (Hovell, master), in the month of January last, under promise of being returned in a month, has not yet been .sent back, and he is supposed to be dead. I passed what I believe to have been the "Elsea " near South Cape, about the 18th (the exact date I am not quite certain of) of January. She was, I believe, on a voyage from Thursday Island to Brisbane.' " The ancient custom of the natives is absolute and inexorable—a head for every death; so that actions such as this, and Minister's taking away Bari—they are mourning his death now, I hear— have been the cause of too many of the murders in this region. I hope by the end of the following week Bari's people will be rejoicing over his return. Captain Colin Thomson, " Coral Sea," tells me he saw the boy taken by the " Elsea "in March, in Townsville. Hovell meant, he says, to take him to Sydney. " September 4th, evening.—Ah Pow, a Chinaman in the employ of Ah Gim, schooner ' Pride of the Logan,' came and reported that while lying at anchor off Samoma Village, Moresby Island, on Friday night last, the 3rd, with Ah Gim's schooner, the South Cape boys whom they had employed on board stole the dingy in the night and made away. These boys had warned Ah Pow that the natives were hostile. They evidently left under fear of the natives." On Moresby Island (Ploop-iron Bay), Captain Fryer and his mate were murdered. Mr. Kissack tells me that the murderer—such by common repute as well as by his own confession— often visits Teste Island and has boasted to him, as well as to the Teste Islanders, that he killed Fryer, and " he no afraid man-a-war." " Monday, 6th August. —Charles Berlin (whom I had repeatedly warned against going to Milne Gulf) came to me and reported: ' I have just returned from Maivara, at the top of Milne Gulf, and have had a narrow escape of my life. I reached Maivara on Monday morning, about 5 a.m. Six canoes came off with about fifteen men. I saw they had no spears or weapons on board, so I allowed two old men to come aboard my boat. I was sitting on the hatch with my feet dangling into hold. One of the old men slipped down into the hold and caught hold of my legs before I was aware ; the other caught me by the chest and threw me overboard. I, however, managed to catch hold again of part of the rigging, and slung myself on board. These men and others from the canoes again seized me, struck me with spars and oars found in the boat, but could not get at my head for the mast, about which I dodged, nor could they get me to loose my hold of the ropes, which I held for my life. Getting one hand free for a moment I knocked one man down with my fist, but could not get at my revolver, which was in its case at my side, because of the men holding me behind. With a kick out behind I knocked first one and then a second over the side into the water. I then got hold of my revolver. I then shot one man through the heart, and he fell overboard and sank. I fired at two others, but missed, my hand shaking from the contusions from the strokes dealt on it by the natives. I kept two remaining shots for extremities. One old man still continued in the hold trying to get out the tobacco-box, every now and then stopping to throw spears at me. I fired one more shot at him, but missed. At last those in the canoes alongside called out, " Come away ; there is a man killed." The old man then got over the side. I got out my Snider and fired several

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shots after them. I gave the gun then to one of my boys, who also fired, while I got up sail and got away.' " " Wednesday, Bth September.—Dick, the London Missionary Society teacher here, came to me and reported: ' Last night I received word from the old chief on Basilisk Island, near Goodman Point, who is a true friend of the white man, that there is some talk of doing something to Whitten, of the cutter " Albatross," and his fellows, but that he, the chief, is keeping a good look-out. My son was last week on the " Dart "as interpreter. Captain Field landed about this same place to take the sun. My boy overheard them, as he believes, talking about " doing something "to Captain Field. Then the old man —the chief referred to above—said, " Why, what you going to do that for? Don't you see son of missionary in boat ? " The other men then ashamed, and all ran away.' Dick further tells me : ' I hear the natives of Milne Gulf, Basilaki, and other islands who come here talking among themselves, "No more frightened man-of-war; man-of-war never pay; Fryer no pay; Fryer's mate, he no pay ; St. Aignan, he cut man-of-war captain; he no pay ; man-of-war, he no pay no more." They think, Mr. Forbes, the man-of-war no come no more : and round about them islands it now no more safe.' " How far these statements of the teacher may be imaginative or exaggerated it is difficult to tell, but there is not a little truth at bottom, and, taken with what I have recorded above, I believe they are not unworthy of serious consideration. From this state of unquiet and hostility in the Louisiades it will be evident that your Excellency's representative can but imperfectly profit by the opportunities at his command. Landing from a vessel like the "Coral Sea," without a protecting company, can be accomplished at very few of these interesting and little-known islands, and no exploration or examination of the ultra-shore land can be even attempted at any of them. I hear of what appear to be valuable mineral veins in St. Aignan, and of gums from other islands, which I am most anxious to examine, but it can be done, under present circumstances, only in the face of your Excellency's fatherly caution, for the risks are undeniably great. The dangers would be vastly minimised by the presence of a vessel of war on the station. On the arrival of H.M.S. " Harrier" on the 14th, I intend, unless I hear of your Excellency's, or of a man-of-war's, early arrival, to proceed to the Louisiades about the 18th instant, and may probably be absent about a month or six weeks. I have, etc., Hbnet 0. Forbes. PS. October 12th, 1886.—Since writing the above a great delay has taken place in obtaining an opportunity for despatch of our mails. Messrs. Kissack and Thompson have this morning announced their intention of sending the "Pioneer" to Cooktown to-morrow morning; so I have hastily to add this postscript. H.M.S. " Harrier " did not arrive with the mail until the 24th of September, and only then en roicte for the Solomon Islands. Before her arrival Dinner Island became nightly infested with natives from the surrounding islands fully armed, prowling about in quest of some of the people here. As yet none of the moonlighters have been captured or killed, though they have been both fired upon and attacked at close quarters : and none of the Dinner Islanders have been harmed. A guard has had to be kept nightly for several weeks now. Immediately on the departure of the "Harrier," and just as I was ready to leave for the Louisiades, a report was brought me from Teste Island of a plot to murder the London Missionary Society teacher there. (Later intelligence shows that they have not carried out their intentions, if really formed.) As, after Lydia Island, Teste Island was one of the islands I specially intended to examine, I desired, considering the disaffection existing all round, to defer my visit to the Louisiades till the arrival of H.M.S. " Diamond," which will arrive here, as I am informed by the " Harrier," about the end of this month. Even had the state of the natives not caused me to change my plans, it became impossible for me to leave owing to an attack of dysentery and fever, accompanied by an aggravated relapse of inflammation of the ear, from which I am only now just recovering. I have to report to your Excellency the sad news brought to-day from the Louisiades (whither the " Coral Sea" proceeded a week ago to return the native Bari, sent by your Excellency to me, to his home at Low Woody Island, close to Joannet Island) by Captain Mullens, of the " Alice Meade," of the murder of J. A. Craig, master of the ketch " Emily," together with the three Europeans and the five Malays composing his crew. Full particulars are wanting, but it would appear that they were fallen upon at the critical moment of one of the divers emerging from the water, when no one was prepared. The vessel was entirely looted of goods, stores, and weapons, and then completely burned. One boat has been brought here by Mullens, who visited the scene of the murder a few days since—namely, Joannet Island. The 14th September last appears to be about the date of the murders. This news only serves to confirm more fully the reports and suspicions of native disaffection which I have recorded in the earlier part of this letter. I have to report to your Excellency that almost all the vessels coming to this portion of New Guinea commit a breach of the regulations which declare Port Moresby the sole port of entry and clearance for the Protectorate waters, as they not only refrain from going to Port Moresby, but they fail to call here. Their calling at one or the other port is the only protection the Queensland Government has against the stores shipped out of bond being distributed illegally to ships along the Barrier Eeef, and the Protectorate of checking the illicit landing of prohibited articles and of preventing the in-bringing of infectious diseases. I have to report that a Chinaman, Ah Gim, a beche-de-mer collector, who held a Protectorate permit from Sir Peter Scratchley, has lost that document : I have refused to give him a new one till after referring the matter to your Excellency, under the following circumstances : Being known to the Customs authorities at Cooktown as the holder of a permit, and having a Queensland master's certificate, he cleared as master in the schooner " Pride of the Logan," from Cooktown, for Dinner Island. He arrived here with his bonded stores broached, and declared that the portion not on

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board was landed at South Cape. He further, after giving me false information, deserted his vessel, which proceeded to the Engineer Group without her having any one of the crew (who are all Chinese) with a certificate of any description. Ah Gim has declared that he is nominal master, but that he has nothing to do with the vessel besides to bring her from and to take her back to Cooktown. H.M.S. " Harrier," when on her voyage to the Solomon Islands, encountered and boarded this schooner, and ordered her to Dinner Island. I ordered that the vessel could not be in the Protectorate waters without a master onboard. As Ah Gim promised to remain on board in future, I gave permission to remove the vessel to prosecute her trade. I consider the offence of acting as nurse-master so serious that I have not considered it right to grant a new permit without reference to your Excellency. I beg to suggest to your Excellency that Dinner Island should be constituted a port of entry and clearance for the Protectorate, as it is evidently a hardship for vessels from Queensland to have to proceed to Port Moresby only to enter, and then to have to beat up against the monsoon to the Louisiades. H. 0. F. To His Excellency the Hon. John Douglas, C.M.G., H.M. Special Commissioner for British New Guinea. [I only received this letter on the 6th December. In the meantime I have seen Mr. Forbes at Samarai, and had concerted with him to take action in connection with the Craig massacre.—J. D.]

APPENDIX V. GENEEAL ORDER AS TO PLACES OP IMPRISONMENT WITHIN THE WESTERN PACIFIC. By His Excellency John Bates Thueston, Companion of the Most Distinguished Order of Saint Michael and Saint George, Her Britannic Majesty's Assistant High Commissioner for the Western Pacific, &c, &c, &c. [l.s.] John B. Thueston. Whereas by the Western Pacific Order in Council of 1877 it is provided that Her Britannic Majesty's High Commissioner for the Western Pacific may, from time to time, by general order under his hand and official seal, prescribe the places within the Western Pacific Islands at which sentences of imprisonment of Her Britannic Majesty's High Commission Court for the Western Pacific are to be carried into execution : Now, I, John Bates Thurston, Her Britannic Majesty's Assistant High Commissioner aforesaid, under and by virtue of the power conferred upon me by the said Order in Council and all other power and authority in me vested, do hereby prescribe and appoint Port Moresby, in British New Guinea, to be a place at which sentences of imprisonment of the said Court are to be carried into execution, subject and according to the provisions of the said Order in Council. Given at Suva, Fiji, this fifth day of February, in the year of our Lord one thousand eight hundred and eighty-six. By His Excellency's command. Wilfeed Collet, Secretary to the High Commissioner.

APPENDIX VI. Mr. H. 0. Foebes's Bepobt. Sic, — Dinner Island, South-eastern New Guinea, December, 1886. I have the honour to forward to your Excellency the following resume of the chief events that have occurred in this district during the period I have had the honour of acting as DeputyCommissioner, with some observations and suggestions thereon. Accompanied by Mrs. Forbes, I arrived here by H.M.S. " Swinger " from Suao on the 21st June last, and took up my quarters in the Mission-house rented by the Government from the London Missionary Society. Samarai or Dinner Island occupies a charming situation within a circle of high wooded islands and a bay of the mainland whose elevated blue peaks shut in the view northward. The Rev. S. McFarlane had planted a large number of cocoanut palms, and laid out a long avenue which affords a shady promenade, while numerous handsome-leaved crotons and scarlet hibiscus are planted everywhere about, giving quite a garden aspect to what would otherwise have been a rather barren shingly foreshore. A short examination of the island, however, revealed several serious defects. The water-supply was in a most unsatisfactory condition. There is no running water in the island ; and the whole of the drinking-water had to be obtained from one hole of a filthy description. Then, a large swamp was found to occupy several acres of the north-west portion, which at the close of the wet season cannot but be very detrimental to the salubrity of the island. The mission buildings were in a very dilapidated state, and required many additions and repairs to render them habitable; nor are they situated on the best site, being all on low flats and not exposed enough to the sea winds, which here ought to be fully courted. When it was announced to the natives that I had been sent to Dinner Island to represent the Government, I was looked upon by them with the greatest suspicion. They declared that they would have nothing to do with " the Government," and that they did not want " the Government " among them at all. For some time they gave myself and my residence a wide berth. They placed the Government in the same category as the man-of-war, of which, though they visit every vessel with perfect freedom when anchored here, they have an undercurrent of wholesome dread. It was many weeks before they could be persuaded to undertake any work for us. A few days after our arrival Lieutenant Commander Marx kindly permitted a few of his men

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to aid in cutting a trench through the sand from the swamp to the sea, to try how far it might be possible to drain off the water. A large quantity was thus removed, but not nearly all, as there was evidently percolation through the coral floor. It continued to discharge a vigorous stream till the next spring-tide, which silted up the mouth completely, as well as flowed into the swamp in abundance. It became evident that it was impossible to effect our purpose by draining. A greater probability of success, as I have already proposed to your Excellency, lies in filling it up by degrees with shingle from the shore and with earth from the surrounding hills. When once accomplished, almost the only objection to Dinner Island as a residence would be removed. On the 17th August, the " Coral Sea," the schooner under Captain Colin Thompson, placed at my disposal, arrived at Dinner Island; and she has been employed by me in visiting the safer portions of the region under my jurisdiction. Following your Excellency's instructions, I visited Doini (Blanehard), Eogea (Heath), Sariba (Hayter), Middle, and Coast Islands, with a view to selecting the best site for the Government residency. Doini presents good positions, as far as regards outlook, at its south-western end; but there is a deal of swampy ground in the vicinity, while there is no good water near enough to the site best suited for a residence. Eogea offers a good site for a house on its narrow isthmus, near a fine tumbling stream of water; there is a general absence of swampy ground, while there could be obtained a beautiful outlook Dinner-Island-wards, with a fine sandy beach on the other side convenient and accessible. In Stanley Bay, in Sariba, a grassy shoulder of a hill—between 200 ft. and 300 ft. above the sea-level'—offers a delightful spot for a dwelling. No swamp land is close enough to interfere with the health of the locality. There is (at some distance) plenty of running water. Coast and Middle Islands are both unsuitable for the desired purpose. The objection, however, to all these islands is that the anchorage they afford for men-of-war or for large vessels is either too small (as in Stanley Bay) for more than one vessel, or in all of them too exposed in certain winds. The Dinner Island anchorage is commodious enough for all purposes, and, according to the testimony of the officers of the various ships of war that have been stationed in these waters, is in all seasons the safest one in the China Straits. As this anchorage has been chosen by, the .Admiralty for its head-quarters in South-eastern New Guinea, it is advisable that Dinner Island should be retained as the head-quarters also of the New Guinea Government. It is centrally situated in the Straits; while there are several eminences, about 190 ft. above sea-level, suitable for a residency site, commanding a beautiful and cheerful outlook, and open to the sea-breeze from all sides. A small portion of a reef on the south-west corner is uncovered at low spring tides, but, as it is chiefly a rocky spit without much live coral on it, little or no harm can come from it. The temperature of Dinner Island has been throughout the past six months too high to make a zinc-roofed house a healthy or agreeable abode; a house of native materials, palm-leaf- or grassthatched, with plank floors and sides if desired, a structure on wood piles 7ft. to Bft. feet high, surrounded by a wide verandah, would be by far the most salubrious dwelling here, even for a permanent Government residence. The thatch would require renewing not oftener than once in two or three years; and it can be changed in a few days' time. The collecting of rain-water will always be a necessity in whatever island the residency is placed, as even where there is perennial water the streams in the height of the dry season are always very low. The outbuildings, such as the store-room, &c, could be all zinc-roofed, and could without difficulty, with the necessary size of tanks, supply the season to season's water. Soon after the arrival of the " Coral Sea " I employed her crew to sink a couple of wells, one of which now, I am glad to say, affords a moderately abundant supply of fairly good water. The chief centres from which the trade of the district is worked are South Cape, Dinner Island, Teste Island, Killerton Island, Milne Gulf, and Nuakata (Lydia) Island, stations now or formerly occupied by missionary teachers, where safe contact with the natives can be more depended on than elsewhere. On the 23rd August, Kissack and Co. (a firm comprising three European partners) removed their head-quarters from Teste Island to Dinner Island, and established, on a portion of land leased to them on this island, the nucleus I hope of a future colony. With the exception of one Chinaman, who has a residence at South Cape, the rest of the traders in these waters have no residential quarters, but peregrinate the Archipelago, living on their vessels and bartering therefrom with the natives for such products as they are in quest of. The commercially valuable products of the region are at present few in number. The chief are beche-de-mer, copra, tortoise-shell, and pearl-shell of several sorts, of which the white shells are large and valuable, averaging about four pounds each, and obtained mostly below sixteen fathoms of water. Two kinds of dammar, not of the best sorts, but of some value, which are found in Sariba, St. Aignan, and on the mainland in abundance, have not been much collected. Possible products in the future are sago, pine, ebony, and various minerals reported from some of the islands, but as yet without sufficient evidence to warrant one in describing them more definitely. The past six months shows a sadly dark catalogue of crimes perpetrated by the natives of this region on white men, as I have communicated to your Excellency from time to time. Now, reporting as an unbiassed witness, I feel convinced from my own observations that a great deal of this hostility has been inaugurated by the white man himself. The accounts given to me by natives who have been labouring in Australia, wherever I have met them—in the Louisiades, in Lydia Island, and along the north-east coast—have been the same, a tale of hardship and injustice bitterly expressed. Erom information given to myself, it is evident that nearly every native taken from the Louisiades was either kidnapped or entrapped into consent by false statements. Apart from this, the infamous crimes and injustices committed by one such man—and there have been others since —as MacCort (or MacCortie), who was murdered in the Louisiades, are enough to inflame the natives of the Archipelago against any white man for a whole generation. Many who have deserved only well of their murderers have fallen victims to the crimes of such predecessors. Nor can it be denied that several traders have lost their lives by natives actuated by the desire of loot. When

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once this terrible duel has been commenced in which every forfeit of a life on the native side at the hands of a white man, or through his direct or indirect instrumentality, demands, at whatever length of time after, from his nearest relative or his heirs, the head of a murdered white man in satisfaction, it is difficult to foresee in what crowd or on what shore, distant perhaps from the scene of any former outrage, the avenger may find a victim whose death concludes his feud and inaugurates another; nor is it easy to suggest how it may be stayed. The natives of the Louisiades and of the neighbouring islands are a very intelligent people, capable, I believe, of being made friends of. They appear to be quite as amenable and capable of instruction as the Malays. See them in management of a European vessel for instance : they have mastered all the details, can furl sails, steer, or obey an order with all the precision and competency of a Malay crew. They have taken appreciatively to such new products as have been given them; pineapples are becoming every year more common; tomatoes and different sorts of melons that have been given to them have been cultivated by them; and under proper direction they would soon, I am sure, by raising crops of maize and rice larger than they could consume, be able to offer them in barter for other necessaries. The island belt stretching eastward from Milne Gulf and China Straits may be roughly divided into three portions: the first, comprising the islands nearly adjoining the mainland as far east as Teste Island, are well populated; all are high and composed of stratified or volcanic rocks, covered with cultivated patches. In the second portion, from Teste Island eastward to the Loumard entrance to the Sunken Barrier (including the Conflict group), the islands are quite low and flat, and are entirely of coral formation. They are covered with little or no soil for the sustenance of any vegetable products of much value except cocoanuts. The third portion is the Calvados chain (including the extra-reef groups of St. Aignan, Eedlich, and Deboyne), commencing with Eeal Island (where the land again attains a considerable elevation), and terminating with Eossel Island. These islands are composed of stratified or metamorphic rock, and many of them are of value. The larger of them are inhabited. Of the larger islands of the first group, such as Moresby, and especially Fergusson Island (Goschen Straits), few have been explored owing to the supposed hostility of the inhabitants; but judged from the shore they appear to be capable of being largely cultivated if the natives were once shown how to cultivate such remunerative products as maize and hill rice. Along the shores of the islands of the second group abundance of most excellent kinds of edible fishes are to be had, which might be profitably cured by beche-de-mer fishers and copra collectors, in addition to their usual work. Cocoanut-planting might be largely resorted to on these islands, with great future advantage to leaseholders. The third group contains many islands, such as St. Aignan, which ought yet to yield a large revenue. The large island of Sud-est has most favourably impressed me.. It contains many grassy plains and large patches of gently undulating land, and much less steep country than New Guinea territory generally : maize and rice, and if it were nearer civilisation sugarcane also, might be largely grown. Portions of Joannet Island, and Kaluma— which is also sparsely wooded—are capable of producing crops of the same cereals. But, with only the 'long-shore acquaintance which has yet alone been possible to obtain, it is not safe to give any decided opinions for the guidance of the general public. On the 13th November H.M.S. " Dart" (Lieutenant Commander Field), which had been engaged for fully six mouths in the triangulation of the area between South Cape, Teste Island, and East Cape, left for Australia, having completed the survey. When the charts are published these intricate waters will be one of the easiest and safest ocean by-ways to navigate, owing to the extreme care and minuteness with which all the operations have been conducted. On the 10th November H.M.S. "Diamond" arrived at Dinner Island, and, after a few days' stay, proceeded to St. Aignan, where such punishment as was possible was inflicted on the natives there for the attempted assassination of Lieutenant Commander Marx. Thence she proceeded to Joannet Island ; but Captain Clayton, finding it impossible to accomplish any retribution by a white force, returned to Dinner Island, where he met and reported the circumstances to your Excellency. Very little of the work which your Excellency's representative ought to have been able to do has been possible to be accomplished, owing chiefly to the very disturbed state of native feeling in the Archipelago. A much more comprehensive account might be given by him six or eight months hence as to the mineral wealth and likely productions of the Louisiades and of a good wide margin of the mainland, if an armed guard of seven or eight trusty South Sea Islanders were given him. Such force would be sufficient to enable him to penetrate anywhere with absolute safety. Until his duties have increased so as to occupy his whole time—which is far from being the case at present — at head-quarters at Dinner Island, he can be employed in no service more beneficial to the Protectorate than constantly moving round—one subordinate European, competent to look after the Residency and to clear and otherwise adjust matters with vessels calling at the port, being sufficient, for some time yet to come, to act in his absence—his district with such a force, slowly accustoming the natives everywhere to the presence among them of a representative of the Government fearlessly able to penetrate where he wishes, exercising authority over all classes wherever he arrives, punishing petty cases summarily and removing for trial more serious offenders; gradually and patiently subverting by his influence while suggesting and commending the reverse of their obnoxious customs (which are, it is too often forgotten, perfectly moral and right in their eyes, and imperative on them as sanctified by generations of unbroken use and wont); distributing seeds, and introducing the knowledge among them of the cultivation of such products as tobacco, maize, and rice, all of which could be most remuneratively cultivated in the islands of the eastern portion of the Louisiade Group and on the shores and back-lands north of Milne Gulf. The " Coral Sea " is far from a suitable vessel for doing any efficient work in these seas. Without comfort, and having no accommodation, it offers no refuge from the tropical sun, one twelve hours' exposure to which renders any work of brain or hand out of the question for days. I should

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recommend to your Excellency that the vessel placed at the disposal of the Deputy-Commissioner here should be fitted with accommodation which will enable him to utilise the many hours of his voyages, otherwise wasted during calms and contrary winds, in accomplishing the clerical work which inevitably accumulates during these journeys. There should be room also for the guard proposed above. The movements throughout the district of your Excellency's representative have not been|without a beneficial effect on the natives. At first repudiating the Government as anything but beneficial to them, they are begining to recognise that it is not " all gammon," that Government " all same father belong New Guinea man," and also that it has more power, and they less ability to evade that power, than they first believed. Eor this reason alone, I would submit that it would be very disadvantageous to the interests of the Protectorate here, especially at the present juncture, if the representative of the Government at Dinner Island were permanently removed. The east end of New Guinea is daily becoming of more importance ; the number of vessels making Dinner Island their port of entry is largely on the increase, and the continued accession of Europeans to our numbers, whose doings require official supervision and between whom questions constantly arise for settlement, make it almost imperative that there should henceforth be a representative of the Government here. Considering that one of the causes assigned for the recent Joannet massacres was a quarrel re a rifle, it might be well for your Excellency to draw renewed attention in the Gazette to the laws in force with regard to the carriage and introduction cf firearms into the Protectorate waters; those also with reference to spirituous liquors—which I have some reason to believe are often given to the natives : and I should recommend that opium be included in the list of proscribed articles, as Chinamen are now frequenting the region. At the change of the monsoons the natives seem to suffer greatly. Numbers of sufferers have applied to me for medicine, without my being able always to supply them. I would suggest to your Excellency that a fairly-stocked medicine-chest and some nutritive medical comforts should be placed in charge of the Deputy-Commissioners on the coast. On the 31st December died here Dick Kiake, the London Missionary Society teacher, who has exerted a'powerful and beneficial influence on the natives over a wide area, and to whom not only every man-of-war, vessel, and trader visiting these waters for many years has been indebted in varying degree for good services, but also the Government, which has oftener than once publicly acknowledged his courageous and worthy conduct. I have, &c, Henry 0. Forbes, His Excellency the Hon. John Douglas, C.M.G., Acting Deputy-Commissioner. H.M. Special Commissioner for New Guinea.

No. 2. The Special Commissioner, British New Guinea, to Sir W. E. D. Jebvois, G.C.M.G., C.B. Sib,— Thursday Island (Torres Straits), 19th March, 1887. His Excellency the Governor of South Australia having intimated to me that no contribution will be made by that colony towards the expenses of the British Protectorate in New Guinea for the current financial year ending the Ist June next, it became my duty to consider in what way the deficit thus arising in the amount of £15,000 guaranteed to Her Majesty's Government is to be met. 2. On reference to the official correspondence on this subject it appeared to me to be not unreasonable to conclude that the Governments of Victoria and Queensland would, in virtue of their telegrams to Her Majesty's Government bearing date respectively the 4th and Ist July, 1884, accept this responsibility. 3. It is held, however, by the Government of Victoria that the guarantee thus given only referred to the first year of contribution ; and the Act of Parliament passed in Queensland which rules the action of that Government only authorises a payment in proportion to the population of the colony as compared with the population of the other contributing colonies. The Government of Queensland is willing to recognise its obligations in this respect. 4. I propose, accordingly, that the deficit of £1,524 11s. 7d. thus accruing should be met by the several contributing colonies in the proportions shown in the accompanying statement, and I have to request your Excellency to submit the adjustment to your Advisers, for their approval. 5. I shall hope to be advised by your Excellency that this arrangement will be accepted as satisfactory, and that the sum of £303 11s. Bd. will be remitted to me in accordance therewith. 6. I regret extremely that this application should be rendered necessary, but I am bound, on behalf of Her Majesty's Government, to secure the annual payment which has been promised. I cannot venture to make a further request to the Government of South Australia for a payment which has been categorically refused, and I am impelled most reluctantly to have recourse to the proposal I now make, in order to secure a settlement. I have, &c, John Douglas, His Excellency the Governor of New Zealand, &c. Special Commissioner.

5—A. 5.

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New Guinea Pbotectoeate. The amounts to be contributed by the several colonies on the basis of population (census of 1881)* to make good the contribution of the Colony of South Australia are as follow : — £ s. d. Victoria ... ... ... ... 533 18 10 New South Wales ... ...' ... 464 13 7 New Zealand ... ... ... ... 303 11 8 Queensland ... ... ... ... 132 6 1 Tasmania ... ... ... ... 71 13 4 Western Australia ... ... ... 18 8 1 £1,524 11 7 W. L. G. Deew, Audit Office, Brisbane, 10th March, 1887. Auditor-General.

No. 3. Memoeandum for His Excellency. The Premier has the honour to return the letter from the Special Commissioner of British New Guinea, dated 19th March last, on the subject of the deficiency in the amount of £15,000, the colonial contribution towards the expenses of the Protectorate, consequent on South Australia having declined to continue contributing after the 30th June, 1886. Ministers respectfully submit that this colony cannot fairly be held liable for the default of a neighbouring colony, as submitted by the Special Commissioner. On the contrary, it was a condition attached to New Zealand's undertaking to pay its share, as stated in the Premier's memorandum of the 7th July, 1885, that the other colonies of Australia should join in the contribution! Notwithstanding that condition, this Government has made a first payment in terms of the memorandum referred to, and is prepared to further fulfil its obligation; but Ministers must decline to recommend Parliament to increase New Zealand's liability to the extent suggested by Mr. Douglas. Eobeet Stout. Premier's Office, Wellington, 21st April, 1887.

No. 4. The Agent-Genebal to the Peemiee. Sic, — 7, "Westminster Chambers, London, S.W., 9th May, 1887. I had not time by last mail, when reporting upon the questions that had come before the Colonial Conference relating to the Pacific islands, to send you any particulars respecting New Guinea. I now beg to enclose the minute of last March, which had been prepared by the Colonial Office for the Conference, together with a paper containing the correspondence, extending from February, 1885, on the subject of the New Guinea Protectorate. On 'Sir Samuel Griffith's arrival in this country, the proposals of Her Majesty's Government, and his own scheme for the administration of the country, formed the subject of repeated communications with the Colonial Office ; and at last the scheme was matured in the form of a Bill, copy of which I enclose, whereby Queensland undertakes to provide £15,000 a year for ten years, the Colonies of New South Wales and Victoria also agreeing to pay their proportions, and to pass permanent appropriations for the same; while Her Majesty's Government undertakes to give a steam-vessel costing £18,500, and to bear the cost of its maintenance for three years at £3,500 a year, making a total contribution by the Imperial Government of about £29,000. Upon the Appropriation Acts being passed Her Majesty will assume sovereignty over New Guinea ; and the scheme defines the first steps that will have to be taken in administering the Government of the island. ■ I have, &c.,' The Hon. the Premier, Wellington. F. D. Bell.

A.-4c, 1885; A.-4c 1886; and A.-4, 1887, Sess. I.

No. 6,

Enclosure. New Guinea. [Printed for the Use of the Colonial Conference.'] Afteb full consideration of the annexed correspondence respecting New Guinea, Her Majesty's Government have decided to propose to Parliament, in the event of satisfactory arrangements being concluded with the colonies concerned in regard to financial and administrative details, a grant in aid of the first establishment of British sovereignty and protection. Adhering to the offer made in 1885, they propose that the Imperial contribution should represent the cost of a suitable steamship, with provision for its maintenance during the first two or three years. Estimating the cost of the vessel at a sum not exceeding £18,500, and the cost of maintenance to be about £3,500 per annum, the grant to be proposed would be about £29,000.

* The population of 1881 is the basis upon which the former appointment was made. There has been no genera census since then. —W.L.G-.D.

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There are two principal conditions as to which it would be necessary for Her Majesty's Government to be in a position to give satisfactory assurances to Parliament when the vote is asked for, namely, — 1. That the colonies interested, or some or one of them, secure by enactment, in terms to be approved by Her Majesty's Government, the annual sum of £15,000 in aid of the expenses of the New Guinea administration and protectorate ; such portion only of that sum to be drawn and expended in each year as Her Majesty's Government may decide to be necessary. 2. That due provision is made for the protection of the natives in the occupation of their lands, no alienation of native lands being permitted except upon the express recommendation of the Administrator. Sir S. Griffith's scheme for the administration of the country appears to Her Majesty's Government to be generally well considered, and to afford a good basis of settlement. Colonial Office, March, 1887.

No. 5. [Extract from the Times, Saturday, 14th May, 1887.] House op Commons.—British New Guinea. Sir G. Campbell asked the Secretary of State for the Colonies whether Her Majesty's Govern" ment proposed to transfer the administration of the part of New Guinea claimed by this country to the Australian Colonies, or to Queensland in particular; and, if so, whether, considering the magnitude of the question and. its effect on the native races, an opportunity would be given to Parliament to express an opinion before such a measure was carried out; and whether, in any case, the proposed scheme would be submitted for the sanction of the British Legislature in the same way that it was to be submitted for the sanction of the colonial Legislatures. Sir H. Holland.—The Government of New Guinea will be administered by an officer appointed by and responsible to Her Majesty's Government, and he will be guided by the instructions of the Governor of Queensland. The Governor of Queensland will be directed to consult his Government upon all matters relating to British New Guinea, but will not be absolutely bound by their opinions. The scheme will have to be approved by the colonial Governments, and legislation will be necessary in Queensland. The details of the scheme will shortly be placed before Parliament, so that an opinion may be expressed upon it before it is carried out; but the formal sanction of Parliament is not required. A vote will have to be taken in due course of time.

[Extract from the Times, Friday, 19th August, 1887.1 Mr. J. Coebett asked the Secretary of State for the Colonies whether any provision or stipulation was made, when the settlement of the New Guinea question was discussed at the late Conference, for throwing New Guinea (British) open to British trade; whether, on the proclamation of Her Majesty's sovereignty, encouragement and protection would be given to pioneers willing to invest capital in promoting trade and in developing the natural resources of the country ; had Her Majesty's Government received any proposals or applications from responsible persons desirous of promoting settlements in New Guinea; and had any feasible schemes for New Guinea development been submitted for the consideration of Her Majestj^'s Government by persons of local knowledge and well accredited from the colonies, and with what result ? Sir H. Holland. —This subject was not discussed at the Colonial Conference ; and the extent to which pioneer settlers can be encouraged will depend upon local considerations, the principal of which is the necessity of protecting the natives from undue interference with their lands. Her Majesty's Government have received, through the Special Commissioner for New Guinea and otherwise, proposals from persons acquainted with the country who desire to promote trade and settlement. It is not proposed to deal with these applications until Her Majesty's sovereignty has been proclaimed, when they will be referred to the Administrator of New Guinea for careful consideration and report; and until then the Government cannot pronounce an opinion upon their feasibility. Sir G. Campbell asked the Secretary of State for the Colonies whether an opportunity would be given to Parliament of expressing an opinion before Her Majesty was ' advised to assume sovereignty in New Guinea, and to hand the control over the administration of the portion of New Guinea thus appropriated to the Government of Queensland, subject to certain reservations. Sir H. Holland. —Her Majesty's Government have agreed that upon the passing of a Bill by the Queensland Legislature, the terms of which will be found at pages 209 and 210 of the Appendix to the Colonial Conference, Her Majesty will be advised to assume sovereignty over the present Protectorate. It is believed that the Bill will shortly be passed, but the date is not known. It is considered important in the interest of the natives that there should be no delay in declaring sovereignty after the Bill has passed. Although no special day can be given for a discussion upon this subject, there are, as the honourable member knows, opportunities upon which he can raise the question before Parliament rises. No formal sanction of Parliament is required before sovereignty is proclaimed, but a vote will have to be taken in due course of time for the steam-vessel and its maintenance.

No. 6. The Pkemiee, Queensland, to the Pkemiee, New Zealand. Sic, — Chief Secretary's Office, Brisbane, 12th November, 1887. I have the honour to forward to you the enclosed copies of the British New Guinea (Queensland) Act of 1887, which has just been passed by the Legislature of this colony, and to

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direct your attention to the alterations which have been made in the preamble from the draft as agreed to at the Colonial Conference. These alterations have been rendered necessary in consequence of the continued omission of the Government of New South Wales to signify its concurrence in the amended proposals. I have, &c, The Hon. the Premier of New Zealand, Wellington. S. W. Griffith.

Enclosure. Queensland. — Anno Quinqnagesimo Primo Victoria! Begince. — No. 9. An Act to make Provision for the Indemnification by the Colony of Queensland of Her Majesty's Imperial Government against the Expenses of the Government of British New Guinea. [Assented to 4th November, 1887.] Most Gbacious Soveeeign,—Whereas the Governments of your Majesty's Australasian Colonies some time since requested your Majesty to assume sovereignty over the territory comprising those portions of New Guinea and the adjacent islands which are now under your Majesty's Eoyal protection, and to make provision for the administration of the Government of that territory : And whereas certain proposals were lately made to your Majesty's Imperial Government by the Governments of the Colonies of New South Wales, Victoria, and Queensland with respect to such administration, which proposals are set forth in the First Schedule to this Act: And whereas the said proposals were afterwards agreed to by your Majesty's Imperial Government with certain amendments and modifications thereof, and the said proposals, as so amended, are set forth in the Second Schedule to this Act: And whereas the said amended proposals were agreed to by the representatives of the Governments of your Majesty's said Australasian Colonies assembled at a Conference held in London in the month of April, one thousand eight hundred and eighty-seven : And whereas your Majesty's Australasian Colonies cheerfully recognise and acknowledge the obligation to indemnify your Majesty's Imperial Government against the necessary cost of the administration of the Government of the said territory, in accordance with the conditions of the said amended proposals, or such other conditions as may be mutually agreed to by your Majesty's Imperial Government and the Governments of the said colonies, and it has been agreed that the Colony of Queensland on their behalf shall formally recognise and give effect to such obligation : And whereas your Majesty's Imperial Government have agreed with the Governments of the said Colonies of New South Wales, Victoria, and Queensland that, upon satisfactory provision being made to give effect to the aforesaid obligation, they will advise your Majesty to assume sovereignty over the said territory : And whereas, in order to give effect to the said amended proposals, and to make provision for defraying the necessary cost of the administration of the Government of the said territory upon such assumption of sovereignty, we, your Majesty's dutiful and loyal subjects, the members of the Legislative Assembly of Queensland, have resolved to grant to your Majesty the sums hereinafter stated and for the purposes hereinafter expressed : Be it therefore enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows :— 1. This Act shall commence and take effect so soon as Her Majesty shall have assumed sovereignty over the territory aforesaid, and such assumption of sovereignty shall have been proclaimed in the Colony of Queensland. 2. There shall be issued and paid to Her Majesty, out of the consolidated revenue of Queensland, in each of the ten years next succeeding the commencement of this Act, a sum not exceeding £15,000, for and in respect of the necessary expenses of the administration of the Government of the said territory in accordance with the conditions of the aforesaid amended proposals, or such other conditions as may be mutually agreed to by your Majesty's Imperial Government and the Government of the Colony of Queensland. 3. The Colonial Treasurer shall issue and pay the amount of such contribution to such person and in such manner as the Governor by any warrant or order under his hand shall direct. 4. The Colonial Treasurer shall, in his accounts, from time to time be allowed credit for any sum or sums of money paid by him in pursuance of any such warrant or order, and the receipt or receipts of the person to whom the same shall be so paid shall be a full and valid discharge to him in passing his accounts for any such sum or sums as shall be therein mentioned, and he shall receive credit for the same accordingly. 5. The New Guinea and Pacific Jurisdiction Contribution Act of 1884 is hereby repealed, except as to any obligations already incurred under that Act. 6. This Act may be cited as " the British New Guinea (Queensland) Act of 1887."

SCHEDULES. Fiest Schedule. Dbaft Pboposals for the future Administration of British New Guinea agreed to hy the Governments of the Colonies of New South Wales, Queensland, and Victoria, at Sydney, on the 28th of April, 1886. I. The Colony of Queensland to undertake by a permanent Appropriation Act to defray the cost of the administration of the Government of British New Guinea to an extent not exceeding £15,000 per annum for the term of five years, subject to the following conditions : — 11. The Colonies of New South Wales and Victoria to undertake by similar permanent Appropriation Acts to bear equally with Queensland any amount which the latter colony may be called upon to pay under Article 1., so that each colony shall be liable for one-third of the whole expenditure to an extent not exceeding £5,000.

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111. Any contributions made by the Governments of any of the other Australasian Colonies to be applied in reduction of the amount which the colonies may be called upon to pay under Articles I. and 11. IV. Any revenue raised by the Government of New Guinea to be similarly applied in reduction of the amount which the colonies may be called upon to pay under Articles I. and 11., unless in the event of a larger annual expenditure than £15,000 being agreed to, as provided in Article XVI., in which case the excess is to be provided from the revenue. V. The Imperial Government to make a reasonable contribution (by way of loan or otherwise) towards the cost of efficiently starting the Government, and the necessary Government buildings, &c. VI. Upon the proposed guarantee being given by Queensland, Her Majesty to assume sovereignty over the Protectorate. VII. An Administrator of the Government to be appointed with that title, to whom, with two or more other persons, legislative powers are to be delegated under the Imperial Acts 6 and 7 Victorias, cc. 13 and 23, and 24 Victorise, c. 121. VIII. The colonies, recognising the necessity for a small Civil List, propose the following as probably sufficient for the first initiation of the Government: — £ Administrator ... ... ... ... ... 1,500 Private Secretary ... ... ... ... ... 300 Judicial Officer ' ... ... ... ... ... 1,000 Secretary to Government ... ... ... ... 500 IX. No purchase of land to be allowed to be made by private persons, except from the Government or purchasers from it. X. No deportation of natives to be allowed either from one part of the colony to another, or to places beyond the colony, except under ordinances reserved for Her Majesty's assent and assented to by Her Majesty. XL Trading with the natives in arms, ammunition, explosives, and intoxicants to be prohibited, except under ordinances reserved and assented to in like manner. XII. No differential duties to be imposed in favour of any of the guaranteeing colonies, or any other colony or country. XIII. The foregoing four articles to be made part of the Constitution of the colony; preferably by Orders in Council made contemporaneously with the assumption of sovereignty, or else by ordinances to be passed immediately afterwards under instructions to the Administrator from Her Majesty's Imperial Government. Standing instructions to be given to the Governor of Queensland and to the Administrator of British New Guinea to observe the conditions of these articles. XIV. An appeal to lie to the Supreme Court of Queensland, at Brisbane, in all civil cases involving an amount of over £100, and in all criminal cases involving a punishment greater than three months' imprisonment. • XV. An estimate of revenue and expenditure to be submitted by the Administrator to the Governor of Queensland, and approved by him, before the passing of any Appropriation Ordinance. The Governor of Queensland to have power to disallow any item of proposed expenditure. XVI. Any appropriation beyond the amount of £15,000 for any one year to be agreed to by each of the three guaranteeing colonies. XVII. All accounts of receipts and expenditure to be audited by officers of the Queensland Government. XVIII. The Administrator, in the exercise of his legislative and administrative functions, to be subject to the instructions of the Governor of Queensland (subject, of course, to Her Majesty's power of disallowance of proposed laws). XIX. The Governor of Queensland to be directed to consult his Executive Council upon all matters relating to British New Guinea. XX. The Government of Queensland to consult the Governments of the other contributing colonies in all matters other than those of ordinary administration, and to report to them all action taken. XXI. An annual report to be furnished by the Administrator to the Governor of Queensland of the proceedings of the Government (legislative and administrative); and copies of such report, together with any observations which the Governor of Queensland may think fit to make thereon, to be forwarded to the Secretary of State, and to each of the contributing colonies.

Second Schedule. Amended Pboposals for the Administration of British New Guinea. 1. The Colony of Queensland to undertake by a special Act to defray the cost of the administration of the Government of British New Guinea to an extent not exceeding £15,000 per annum for the term of ten years, subject to the following conditions: — 2. The Colonies of New South Wales and Victoria to undertake by similar Acts to bear equally with Queensland any amount which the latter colony may be called upon to pay under Article 1, so that each colony shall be liable for one-third of the whole expenditure to an extent not exceeding £5,000. 3. Any contribution made by the Governments of any of the other Australasian Colonies to be applied in reduction of the amount which the colonies may be called upon to pay under Articles 1 and 2. 4. Any revenue raised by the Government of New Guinea to be similarly applied in reduction of the amount which the colonies may be called upon to pay under Articles 1 and 2, unless in the .6—A. 5.

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event of a larger annual expenditure than £15,000 being agreed to, as provided in Article 16, in which case the excess is to be provided from the revenue. 5. Her Majesty's Imperial Government to contribute a suitable steam-vessel for the service of the territory, at a cost not exceeding £18,500, with the cost of its maintenance during the first three years, estimated at about £3,500 a year. 6. Upon the passing of the above-mentioned special Act, Her Majesty to assume sovereignty over the Protectorate. 7. An Administrator of the Government to be appointed, to whom, with two or more other persons, legislative powers are to be delegated by Letters Patent under the Imperial Acts 6 and 7 Viet., cap. 13, and 23 and 24 Viet., cap. 121. 8. The following sums to be reserved in the Letters Patent by way of Civil List:— £ Administrator ... ... ... ... ... ... ... 1,500 Private Secretary ... ... ... ... ... ... 300 Judicial Officer... .. ... ... ... ... ... 1,000 Secretary to Government ... ... ... ... ... 500 9. No purchase of land to be allowed to be made by private persons, except from the Government or purchasers from it. 10. No deportation of natives to be allowed either from one part of the territory to another or to places beyond the territory, except under ordinances reserved for Her Majesty's assent and assented to by Her Majesty. 11. Trading with the natives in arms, ammunition, explosives, and intoxicants to be prohibited, except under ordinances reserved and assented to in like manner. 12. No differential duties to be imposed in favour of any of the guaranteeing colonies, or any other colony or country. 13. The foregoing four articles to be embodied in the Letters Patent as part of the Constitution of the territory. 14. An appeal to lie to the Supreme Court of Queensland, at Brisbane, in all civil cases involving an amount of over £100, and in all criminal cases involving a punishment greater than three months' imprisonment. The necessary legislation for this purpose to be proposed to the Imperial and Queensland Parliaments. 15. An estimate of revenue and expenditure to be submitted by the Administrator to the Governor of Queensland, and approved by him, before the passing of any Appropriation Ordinance. The Governor of Queensland to have power to disallow any item of proposed expenditure. 16. Any appropriation beyond the amount of £15,000 for any one year to be agreed to by each of the three guaranteeing colonies. 17. All accounts of receipts and expenditure to be audited by officers of the Queensland Government. 18. The Administrator, in the exercise of his legislative and administrative functions, to be guided hf the instructions of the Governor of Queensland (subject to Her Majesty's power of disallowance of proposed laws). 19. The Governor of Queensland to be directed to consult his Executive Council upon all matters relating to British New Guinea. 20. The Government of Queensland to consult the Governments of the other contributing colonies in all matters other than those of ordinary administration, and to report to them all action taken. 21. The Administrator to be instructed to furnish to the Governor of Queensland an annual report of the proceedings of the Government (legislative and administrative) ; and copies of such report, together with any observations which the Governor of Queensland may think fit to make thereon, to be forwarded to the Secretary of State, and to each of the contributing colonies. Memoeandum. It is understood that Queensland is to have a first charge upon any surplus revenue of British New Guinea for any amount which the colony may be called upon to pay under the special Act beyond the agreed proportion of one-third.

No. 7. The Peemiee, New Zealand, to the Peemiee, Queensland. Sib,— Premier's Office, Wellington, 28th November, 1887. I have the honour to acknowledge, with thanks, the receipt of your letter of the 12th instant, enclosing copies of "The British New Guinea (Queensland) Act, 1887." I have noticed as requested, the alterations which have been made in the preamble from the draft as agreed to at the Colonial Conference. I have, &c, H. A. Atkinson, The Hon. the Premier, Queensland. Premier. [Approximate Cost of Paper.— Preparation, nil; printing (1,375 copies), £25 78.]

Authority: Geobgb Didsbuby, Government Printer, Wellington.—lBBB.