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I beg your Excellency to make use of these events, and to return to this question when communicating with Earl Granville. I presume that this exchange of ideas will not be looked upon as terminated when the report of the Commission shall have been placed before Parliament. On the contrary, Earl Granville's note of the 6th February leads me to expect that we shall hear of the measures which have been taken to prevent a recurrence of incidents like those dealt with in Baron Plessen's note of the 4th September. I shall also be pleased to hear what instructions have been given with reference to the claims for compensation put forward by Messrs. Hernsheim. As regards the wish of the English Government to come to an amicable arrangement with reference to the prot action of Germans and their commercial enterprises in the South Sea, it would be of interest to us to learn in how far the report of the Commission is to be acted upon.

No. 16. — Earl Granvillc to Count Munster. (Foreign Office, 9th June, 1884.) ■ Announces that the High Commissioner for the Western Pacific proclaims that he is energetically carrying on an inquiry into the alleged losses suffered by Messrs. Hernsheim in consequence of the proceedings of the labour-vessel " Stanley." This vessel was supposed to have been lost at sea.

No. 17. — Dr. Krauel to Prince Bismarck. (Sydney, 23rd May, 1884.) Consul Heusslee, at Brisbane, informs me that £550 have been awarded to Messrs. Hernsheim by the Queenslaud Government. Captain Davis, of the "Stanley," and Mr. McMurdo, the Government Agent on board of her, are to be criminally prosecuted. They will be tried before the High Commissioner of the Fiji Islands, within whose jurisdiction the criminal actions alleged took place. Mr. Eomilly, the Deputy-Commissioner, who is to convey the accused to Eiji, informs me that in consequence of our representations in London strict orders had been given to punish the guilty parties. Mr. Le Hunt, who recently passed through here for Eiji, confirms this.

No. 18. — Dr. Krauel to Prince Bismarck. (Sydney, Bth September, 1884.) Captain Davis and Mr. McMurdo were found guilty on the 7th August, and condemned to three months' imprisonment. By a special act of grace of the High Commissioner they were liberated on the 14th of August.

No. 19.— Herr yon Hansemann and Baron Bleiohroder to Prince Bismarck. (Berlin, 27th June> 1884.) The German Marine Commercial Company (See-Handels-Gesellschaft) having gone into liquidation owing to the rejection by the Beichstag of the Samoa Bill, it has become our task, not merely to reorganize the German Commercial and Plantation Company, but also to pursue the original aims of that company in a different mode-. The plan submitted to your Excellency in 1880, with reference to a South Sea enterprise on a larger scale, could not be realized. The first steps for resuming this enterprise had been taken when the Queensland Government, in-April, 1883, took possession of New Guinea and the adjacent islands, and some months ago they were resumed. Our undertaking is to be carried on in accordance with the principles laid down by your Excellency, in a recent debate of the Eeichstag, as entitling it to a claim to the protection of the German Government. As far as the public is concerned our undertaking will be an expedition fitted out by the German Commercial and Plantation Society of Hamburg, with a view to founding additional factories, as in the ordinary course of business, in the Western Pacific. In pursuit of this object an agreement has been entered into between the company and a society, specially founded for this expedition, and consisting of Messrs. , with the undersigned as managing directors. The German Commercial and Plantation Society has purchased a steamer for the purposes of the expedition at Sydney, which will take the name of " Samoa," and sail under the German flag. Dr. Finsch, of Bremen, has been intrusted with the command of the expedition, and has already started, accompanied by Captain Dallmann, of Bremen, and a few picked sailors. Dr. Einsch will ostensibly take a passage in the trading-vessel " Samoa " on a scientific cruise. Dr. Einsch and Captain Dallmann are charged to explore the coasts, to seek out the best harbours, to establish friendly relations with the natives, to found factories (for which purpose officers of the Commercial and Plantation Company are on board), and to make extensive purchases of land. The land thus acquired, together with that already in possession of the company, are to form a solid foundation for a colony in the Western Pacific. The labour trade ought not to be permitted to invade these new German settlements, as the command of labour will give them an advantage over other islands in the South Sea as well as over Queensland. The Commercial and Plantation Company has, consequently, bound itself to engage no labourers for Samoa. Mioko is intended to become the central point of these settlements. Dr. Einsch and Captain Dallmann are instructed to conceal their object, and to examine, first of all, the southern part of New Britain and the north-east coast of New Guinea as far as 141° E. They are on no account to visit the south-east coast of New Guinea or Torres Strait. We beg your Excellency to accord protection to this enterprise, and, more especially, to instruct Consular officers and commanders of war to register the land purchases to be made.

No. 20.— Count Hatzfeldt to Count Munster. (Berlin, 2nd August, 1884.) In the South Sea, as elsewhere, it appears to be the policy of the English Colonial Office to deal with our communications in a dilatory manner, whilst "facts" are being created through the agency of the Australian Colonies which run altogether counter to our legitimate interests. In your