A.—s.

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trouble arising, it should be found that he has been encroaching on their rights, he will have to bear the consequences. I warned the natives, also, that, if they molest Dien without cause, Government will protect him and punish them. Having on our return journey been becalmed for a whole day under a fierce sun, I was, on arrival, laid down with a relapse of fever, which prostrated me till the Bth instant. On the 9th I proceeded to Blanchard Island to examine it for a probable site for a Government residence, and I shall, on a future opportunity, report on its suitability. The following extracts from my diary since date of last writing will afford your Excellency some idea of the rather disaffected attitude of our neighbours, and will probably give good ground for drawing the attention of the Admiral commanding the Australian station to the desirability of there being—now that a considerable colony of whites is establishing itself, whose commercial prospects depend on some degree, at least, of security—a man-of-war, other than a surveying ship, more constantly here. Moreover, Messrs. Kissack have (unofficially) drawn my attention to the increased difficulties now to be encountered in Milne Gulf—one of their stations is at Maivara—since the occurrences related below. " September 4th.—Captain Mullens, of Kissack and Co., called here and reported as follows : ' I have just returned from the Louisiades. Visited Pig Island on the 13th July, and found that the native lad whom I had left there in charge of our station had been murdered, about (as near as I could discover) the 4th of July last, by the Low Woody Islanders. These people had asked me recently to make a station on their island. As the reefs are not productive enough in that vicinity, I told them I would not make one at present. This had evidently offended the Low Woody Island natives. They, about the 4th July, therefore, had proceeded to Pig Island (Low Woody Island is to the north of Joannet Island, and Pig Island is to the south-east of it) in two canoes with twelve to fifteen men, beheading the lad, taking away the head and all the trade belonging to Messrs. Kissack and Co. The head they traded to the St. Aignan people (who attacked Lieut.-Commander Marx). My boys, who were working on Wooded Islet Eeef, about twenty-five miles to the northwest, when they learned of the outrage—they are Senard Island natives—at once set out for Low Woody Island. I accompanied them in the schoones. I neither prevented nor persuaded them in the matter further than warning them that they should kill nobody. I anchored at Low Woody Island in my usual place. The Eenard natives went on shore—where one half of the people, who number in all about a hundred, are at war with the other half—and burnt two houses, and destroyed two canoes.' " I told Captain Mullens that I would report the whole matter to His Excellency, the Special Commissioner, for instructions. " Captain Mullens further reports : ' I visited Conde Point, Sud-est Island ; I found the natives very disaffected, dangerous, and threatening, because a lad belonging to one of the villages there who had been taken away by the "Elsea," a vessel belonging to Messrs. Burns, Philp, and Co. (Hovell, master), in the month of January last, under promise of being returned in a month, has not yet been .sent back, and he is supposed to be dead. I passed what I believe to have been the "Elsea " near South Cape, about the 18th (the exact date I am not quite certain of) of January. She was, I believe, on a voyage from Thursday Island to Brisbane.' " The ancient custom of the natives is absolute and inexorable—a head for every death; so that actions such as this, and Minister's taking away Bari—they are mourning his death now, I hear— have been the cause of too many of the murders in this region. I hope by the end of the following week Bari's people will be rejoicing over his return. Captain Colin Thomson, " Coral Sea," tells me he saw the boy taken by the " Elsea "in March, in Townsville. Hovell meant, he says, to take him to Sydney. " September 4th, evening.—Ah Pow, a Chinaman in the employ of Ah Gim, schooner ' Pride of the Logan,' came and reported that while lying at anchor off Samoma Village, Moresby Island, on Friday night last, the 3rd, with Ah Gim's schooner, the South Cape boys whom they had employed on board stole the dingy in the night and made away. These boys had warned Ah Pow that the natives were hostile. They evidently left under fear of the natives." On Moresby Island (Ploop-iron Bay), Captain Fryer and his mate were murdered. Mr. Kissack tells me that the murderer—such by common repute as well as by his own confession— often visits Teste Island and has boasted to him, as well as to the Teste Islanders, that he killed Fryer, and " he no afraid man-a-war." " Monday, 6th August. —Charles Berlin (whom I had repeatedly warned against going to Milne Gulf) came to me and reported: ' I have just returned from Maivara, at the top of Milne Gulf, and have had a narrow escape of my life. I reached Maivara on Monday morning, about 5 a.m. Six canoes came off with about fifteen men. I saw they had no spears or weapons on board, so I allowed two old men to come aboard my boat. I was sitting on the hatch with my feet dangling into hold. One of the old men slipped down into the hold and caught hold of my legs before I was aware ; the other caught me by the chest and threw me overboard. I, however, managed to catch hold again of part of the rigging, and slung myself on board. These men and others from the canoes again seized me, struck me with spars and oars found in the boat, but could not get at my head for the mast, about which I dodged, nor could they get me to loose my hold of the ropes, which I held for my life. Getting one hand free for a moment I knocked one man down with my fist, but could not get at my revolver, which was in its case at my side, because of the men holding me behind. With a kick out behind I knocked first one and then a second over the side into the water. I then got hold of my revolver. I then shot one man through the heart, and he fell overboard and sank. I fired at two others, but missed, my hand shaking from the contusions from the strokes dealt on it by the natives. I kept two remaining shots for extremities. One old man still continued in the hold trying to get out the tobacco-box, every now and then stopping to throw spears at me. I fired one more shot at him, but missed. At last those in the canoes alongside called out, " Come away ; there is a man killed." The old man then got over the side. I got out my Snider and fired several