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No. 33.— Dr. Busch to Baron Plesscn. (Berlin, loth October, 1884.) Foewaeds copy of Mr. Scott's note of the 9th October (No. 31), and expresses satisfaction at its contents. Agrees to Lord Granville's suggestion (see No, 30) that the Commission should meet in Europe ; suggests that the Fiji question might likewise be discussed in Europe, and that the place of meeting be London. Dr. Krauel, who is to act as German Commissioner, has been called Home by telegraph, and left Sydney on the 7th October.

No. 34.— Count Minister to Prince Bismarck. (London, 22nd November, 1884.) Lobd Gkanville agrees to the South Sea and Eiji Commission meeting in London, and will appoint a Commission as soon as Mr. Thurston has returned from Eiji. Lord Granville added that the reports of the Commission would have to be submitted to the two Governments, to be examined by them.

No. 35.— Herr Greiner (of the German Consulate-General at Sydney) to Prince Bismarck. (Sydney, 18th November, 1884.) Announces proclamation of an English protectorate over the south coast of New Guinea on the Bth November, and forwards a copy of Commodore Erskine's Proclamation.

No. 36.— Telegram from the Officer commanding the German man-of-war "Elisabeth" and the Imperial Commissioner in New Britain. (Cooktown, 17th December, 1884.) The purchases of land by German subjects have been backed (tmterstiitzt) by treaties made with native chiefs. Our men-of-war have hoisted the German flag at several points on the north coast of New Guinea, east of the Dutch boundary, and in New Britain, to protect these purchases.

No. 37. — Prince Bismarck to the German Ministers at London, Paris, Madrid, Lisbon, The Hague, Washington, Home, Vienna, St. Petersburg, Copenhagen, and Stockholm. (Berlin, 23rd December, 1884.) Insteucts Ministers to inform the Governments to which they are accredited with the fact that certain territories on the north coast of New Guinea and in the New Britain archipelago, where German subjects had made purchases of land and established factories, have been placed under the protection of the German flag, without prejudice to the claims of third parties. Lord Granville to be informed verbally that our taking possession of these territories is not to prejudice the discussions of the Commission appointed to settle the limits, no more than the recent annexation of the south coast of New Guinea.

No. 38. — Count Minister to Prince Bismarck. (London, 29th December, 1884.) The note referred to in No. 37 was communicated to the British Government on the 26th, and the verbal message delivered to Sir Julian Pauncefote and Lord Granville. " The latter could not quite recall the communications which I made to him in consequence of the instructions of the 2nd August of last year (see No. 20), and was not therefore in a position to enter into the question."

No. 39.'— Prince Bismarck to Count Minister. . (Berlin, 29th December, 1884.) Me. Meade, the English delegate at the Conference, whom you referred to in 3 rour report of the 10th instant, some time ago expressed a wish to the Under-Secretary of State of the Foreign Office to have a confidential talk on colonial matters, which, he added, might clear away misunderstandings and prepare the way for a subsequent official settlement of the mutual spheres of interest. In a first conversation with Dr. Busch, Mr. Meade developed the following suggestions, which he declared to represent solely his private views, but which he thought might eventually be accepted by his Government in case our consent thereto should be obtained. 1. The English protectorate in the South Sea to embrace the whole of New Guinea (the Dutch part excepted), inclusive of the Louisiades, and of all other islands within twenty or twenty-five nautical miles from the coast. In return for this Great Britain would acknowledge a German protectorate over New Britain, New Ireland, Duke of York, and other neighbouring islands. The remaining islands of the Pacific not yet having a recognized Government, and more especially Samoa and Tonga, to be neutralized by an international arrangement. 2. In Western Africa, on condition of our settling private claims, England would cede to us the islands near Angra Pequena, exclusive of Walvisch Bay. On the other hand we were to bind ourselves to make England the first offer of Bagada, Togo, and of other places on the Gold Coast (sic), should we ever intend to abandon them. These proposals did not appear to me to be acceptable, but as Lord Granville had expressed a wish that I should have a personal interview with Mr. Meade, which might help to clear up the situation, I saw that gentleman on the 24th instant, when he once more explained the above programme to me. I told him that, as far as we were informed, the islands near Angra Pequena, once their guano deposits had been exhausted, would be of value only for the seal fishery. The political importance of these islands I told him was not sufficient to justify us in making disproportionate sacrifices in order to acquire them. As regards the South Sea, Mr. Meade was obliged to admit that there existed no English establishments worth mentioning either in New Guinea or in the New Britain archipelago, and that a desire on the part of England to possess these territories only sprung up after German enterprise had been directed towards them. Nor was Mr. Meade in a position to deny that Germany, in consequence of having had settlements there for many years past, was the only country to which the archipelago of New Britain was of value. It follows from this that we do not feel called upon to make concessions in order that our protectorate over these islands may be acknowledged.

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