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No. 25.— Prince Bismarck to Herr yon Hanscmann and Herr yon Bleichrodcr. (Varzin, 20th August, 1884.) Instructions have been given to support your undertaking. The acquisitions made by you will be placed under the protection of the Empire, on the same conditions as in south-western Africa, subject to the condition that they are not made in territories to which other nations have legitimate claims.

No. 26.— Prince Bismarck to Baron Plessen. (Varzin, 31st August, 1884.) I have learnt from Count Minister that Lord Granville has received our communication with favour. I request you to inform Lord Granville that we willingly agree to the appointment of Commissioners to discuss our mutual interests in the South Sea. Consul-General Dr. Krauel at Sydney, and Dr. Stuebel at Apia, would eventually act as our Commissioners, and you may propose that the Commissioners meet at Levuka.

No. 27. — Baron Plessen to Prince Bismarck. (London, 4th September, 1884.) Acknowledges receipt of No. 26. Has communicated it to Mr. Lister, Under-Secretary of State. Mr. Lister has promised to forward it to Lord Granville.

No. 28. Mr. Charles Scott to Count Hatzfeldt, Secretary of State. (19th September, 1884.) Afteb reference to the verbal negotiations between Lord Granville and Count Minister, Mr. Scott says that Lord Granville stated " that the extension of some form of British authority in New Guinea, which will be shortly announced, will only embrace that part of the island which especially interests the Australian Colonies, without any prejudice to any territorial questions beyond these limits." The negotiations between the English and the Colonial Governments have determined Her Majesty's Government to extend the British protectorate over the whole of New Guinea, only excepting the Dutch territory, and that part of the north coast which lies between the Dutch boundary and longitude 145° E. This protectorate will also include the small islands adjacent to the British coast. " The 145 th degree of east longitude has been fixed as the western British limit on the northern coast, in order that it should embrace the territory owned by the natives on the Maclay Coast, whose claim for British protection has long been under the consideration of Her Majesty's Government, and was one of the principal reasons which determined the Cabinet to advise the Queen to assume the responsibility of establishing a protectorate in New Guinea." The Maclay coast extends in the south to Cape William, and the coast thence to the Dutch boundary would be included in the British protectorate, for obvious reasons. Lord Granville has instructed mo to add that Her Majesty's Government is earnestly desirous of settling these territorial questions as proposed by the Imperial Government.

No. 29. — Dr. Buscha to Baron Plessen. (Berlin, 25th September, 1884.) I enclose copy of a note of the English Charge d'Affaires at this Court (No. 28), according to which the whole of the north coast of New Guinea, only excepting that part of it which extends from longitude 145° E. to the Dutch frontier, is to be included in the British protectorate. Inform the English Government that we have taken note of this communication, but that this proposed extension of the protectorate, after what Lord Granville had stated, found us unprepared, and that we reserve our attitude towards it. A friendly arrangement of the territorial claims along that coast appeared to us to be desirable.

No. 30. — Baron Plessen to Prince Bismarck. (London, 27th September, 1884.) Communicates a private note from Lord Granville, in which it is proposed that the Commissioners shall meet in Europe, instead of in the immediate vicinity of Australia, and that it might be of use if a preliminary discussion, with a person thoroughly acquainted with Prince Bismarck's views, could take place in London.

No. 31. — Mr. Charles Scott to Count Hatzfeldt. (Berlin, 9th October, 1884.) I am instructed to inform you that Her Majesty's Government have carefully considered the communication which Baron Plessen was instructed to make on' the proposed limit of this protectorate, and have decided that the declaration to be made shall limit the British protectorate to the whole'of the southern coast, including the islands contiguous to it, instead of that which they had at first proposed.' This will be done without prejudice to any territorial question beyond these limits. It is with great satisfaction that Her Majesty's Government have come to an arrangement in which they find themselves in perfect accord with Germany. In case any questions should arise as to those districts of New Guinea which lie beyond the limit described, Her Majesty's Government are of opinion that it would be better to deal with them diplomatically than to refer them to the Commission which it is proposed to appoint with regard to the islands in the Pacific.

No. 32.— Baron Plessen to Prince Bismarck. (London, Bth October, 1884.) Lobd Geanville, in the course of a conversation yesterday, referred to Count Miinster's statement that the Imperial Government recognized the legitimacy of the desire of the Australians that no foreign Power should gain a footing on the south coast of New Guinea, in Torres Strait.