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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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