A.—9

11

information on the system pursued in New Britain and New Ireland, in the recruiting of labourers for Queensland and Fiji, and whether steps have been taken to inquire into the irregularities which are alleged to take place there, and to prevent their recurrence. His Majesty's Government, notwithstanding that similar proceedings have not hitherto been reported in connection with German labour-vessels, intends to subject these latter to a strict control, whilst visiting these islands, and to permanently station an Imperial man-of-war there during the so-called labour-season, extending from May to the end of September. The commander of this vessel will also be instructed to afford energetic protection to legitimate German commercial interests in New Britain and New Ireland, and to repel acts of violence directed against German life and property by force. The Imperial Government, in its efforts to maintain peace and order in these regions, trusts to meet with the willing support of Her Majesty's Government, which must be equally concerned that the line, which separates the legalized Polynesian labour-traffic from the slave trade, shall not be crossed. In conclusion, I beg to communicate to your Excellency an extract from a report of the officer commanding H.M.S. " Carola."

Enclosure.— Owpl'am Karcher to the Chief of the Imperial Admiralty, Berlin. (Batavia, 6th July, 1883.) Fbom what I learnt during two visits to New Britain, and from what Captain Geiseler communicated to me, the state of affairs there appears to be as follows : — The German Commercial and Plantation Company has its headquarters at Mioko. It mamtains about eighteen small factories in eastern New Britain and on the west coast of New Irelan a> of which, at the present time, ten or twelve are actually occupied. Messrs. Hernsheim and Co. have their headquarters at Matupi, and maintain two or three stations on New Britain, two on the north coast of New Ireland, and one each on the Laughlan, Anchorite, and Hermit Islands, of which the two last are not at present occupied, but will be as soon as suitable agents can be found. One reason for the danger in which white settlers residing in these islands live, arises from the tact that the natives know no differences of nationality, and, in accordance with their customs, avenge any injury that they may have suffered upon the next white man they meet with. The provocation is mostly given by the labour-vessels. The settlers, as is only natural, are not well disposed towards these vessels ; but if only a fraction of what I have heard from our own Consul and from other persons is true, then this labour trade is nothing but slave trade. The labourers are not only bought of the chiefs for breechloaders, but natives are likewise enticed on board, where they are detained, or taken out of any canoe that may be met with out at sea. If the Government Agent acted up to his instructions, in accordance with which only volunteers, to whom the nature of the engagement has been fully explained, should be taken, most of the vessels would have to leave empty as they came. The Agent, however, contents himself, in most cases, with an assurance on the part of the captain that all formalities have been fulfilled. But, as each of the many small districts has a language of its own, this, notwithstanding the interpreters, is quite impossible. It is only natural, therefore, that fights between the natives and the crew's should sometimes sake place. I noticed that the natives in places visited by labour-traders were far more timid than elsewhere. At Buka, for instance, where the natives came alongside our ship freely, they fled at once as soon as we lowered a boat. Just now the whites are especially anxious, as the New Hebrides, &c no longer furnish a sufficient supply of labourers, and as over twenty labour-vessels have come ■from Queensland alone to New Britain, &c. Besides this, the interests of the German Commercial and Plantation Company of Samoa, which procures most of its labours in New Britain, &c, are sure to suffer in consequence of the extensive labour imports of Queensland.

No. 10.—Dr. Stuebel to Prince Bismarck. (Apia, Bth August, 1883.) Fobwabds a statement of the German Commercial and Plantation Company dealing with the danger to German interests likely to arise through the annexations proposed in Australia, and expressing a hope that the injury threatened may yet be averted. Dr. Stuebel states that he is not in a position to judge in how far these fears are justified., but that England is more especially interested m putting a stop to the proposed action of the Australian Chauvinists, and thus to prevent annexations being made by other Powers. In the meantime the civilizing work of England could proceed steadily ; English interests would arise in localities now chiefly or wholly occupied by Germans, and these English interests would struggle for a preponderance, thus preparing the ground for an ultimate annexation of all islands by England, whilst at the present time only a portion of them could be annexed. This danger existed not only in New Britain, but also in a lesser degree m bamoa. Messrs. McArthur and Co., of Auckland, were already commercially interested in Samoa, and quite recently a company had been founded in New Zealand for the purpose of trading with Samoa, and of founding plantations. It was reported that the land of the American company, now lying waste, would be acquired by this New Zealand company. Whatever confidence we had in the management of the German company, we might yet doubt _ whether a commercial company, however powerful, would permanently ensure Gorman interests in the South Sea.

Enclosure.— Statement of the German Commercial and Plantation Company, signed Weber, Chief Factor. (Apia, 6th August, 1883.) It had become known through the papers that Queensland had "provisionally " annexed not only New Guinea, from 141° to 150° longitude E., but also the adjacent islands, including New Britain, &c. Although it had been reported at first that it was merely intended to establish trading stations under English protection on the south coast of New Guinea, our latest information made it likely that the recent annexation by Queensland would be recognized to their full extent. The company felt bound to again direct the attention of the German Consul to these events, as they involved the