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New Guinea - Royal Commission on late German New Guinea - Interim and Final Reports


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THE P ARLIA.}IENT OF THE COMMON-WEALTH OF AUST1{ALIA.

INTERIM AND FINAL REPORTS

OF

ROY COMMISSION

ON

LATE NEW

Presented by Command; orde1·ed to be p'rinted, 21st May, 1920.

[Cost of P aper :-Preparation, not given; 1,025 copies ; approximate cost of printing and p ublishing, £9 0.]

.Printed and .Pu bli hed f or the GOV ER ME T of tbe COMMO r W13ALTH of Au TRALIA by ALBERT J . MULLETT, Government Printer for the State of Victoria. ·

No. 29.-F.l334 .-4s.

Royal Commission-Letters Patent INTERIM REPORT

CONTENTS.

PAGE

4

5

Letter covering final reports, and indicating portions of mandated territory visited by Commission 11

FINAL REPORTS.

MATTERS UPON WHICH CoMMISSION AGREES.

Introduction 13

Nature and extent of property formerly owned by German Government 18

Use and disposal of property fo rmerly owned by German Government . . 18

Nature and extent of property nominally owned by individuals or corporations which there is reason to believe was held on behalf of the German Government 18

Nature and extent of privately-owned property 19

Condition of the more important public works and necessity for any further works which will involve substantial expenditure 20

Unauthorized occupation of Crown lands 22

REPORT OF MAJORITY OF COMMISSION.

(Messrs. Atlee Hunt and Walter Lucas.)

Organization of a system of Government in accordance with terms of mandate 23

Approximate cost. of organization of system of Governm ent 34

Prese:o.t revenue and methods of meeting future expenditure . . 39

Action necessary for purpose of transferring to and retaining under British ownership privately-owned property of Germans, in event of it being decided to resume such property 42 Trade relations of mandated t erritory before and during the war, and regulations necessary for conduct of trade in future 45

Steam-ship communication with mandated territory and action necessary to secure regular coinmuni-cation in future 45

Relations of mandated territory with P apua, and also with British Solomons 48

Synopsis of report of m ajorty of Commission 50

MINORITY R EPORT OF CHAIRMAN OF COMMISSION.

Organization of system of Government for mandated territory and relations of the territory with Papua and the· British Solomons 52

Approximate cost of organization of system of Government 63

Present revenue and methods of meeting future expenditure 63

Action necessary fo r purpose of transferring to and retaining under British ownership the privately-owned property of Germans, in event of it being decided to resume such property 67 Regulations necessary for the conduct of trade in the future . . 69

Steam-ship communication with the mandated territory and action necessary to secure regular communication in future 69

Summary of Chainp.an's recommendations 72

Synopsis of Chairman's R eport 73 .-.

TABLE OF APPE DICES.

Letter from Bishop of Lire and Vicar Apostoli c, Sacred Heart Mission, Vunapope, New Britain, respecting position of Catholic Missionaries in mandated territory . . Append ix A Extracts fr.om Treaty of P eace between Allied and Associated Powers and Germany, 28th June, 1919 . . Appendix B

Extracts from reply of Allied and Associated Powers to the observations of t he, German Delegation on the conditions of Peace Appendix C

Particulars of buildings occupied by British Military Administration which were fo rmerly owned . by German Government App endix D

Map showing Papua and (late) German ew Guinea Appendix E

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4

COMMONWEALTH OF AUSTRALIA.

GEORGE THE FIFTH, by the Gmce of God, of the United Kingdom of G?"eat Bfitain and h eland and of the Bfilish Dominions beyond the 8 eas King, Defende?" of the .Fa·ith, Empemr of India :

To trusty and ?cell-beloved

JonN HUBER'.r Pr.uNKET MuRRAY, Esquire, C.M.G., Lieutena.nt-Govemor of the 'l'erritory of P apua, A·nEE l mTIIUR HuN1', Esqui?"e, C.M.G., 8 er:retary, Home and T erritories Department. vVAL'l'ER H. L UCAS, Esqu·ire.

GnEJlTJN C :

KNOW YE that We do, by these Our L etters Patent, iM!terl in Our name by O;t-r Governor-General of Our Commonwealth of .A!tstmlia, acting with the advice of Ou-r F ederal Executive Council, and in puTsnance of the Constitution of Our said Commonwealth, the Royal Commissions Act 1902-1912, and all other powers him thereunto enabling, appoint yon to be Co1nmissioners to visit late Gennan New Guinea and report on thefoUowing matters in conne.vion with that 7.'e?·ritory :-

(a) The organization oj' a system of Gol!ernment in accordance with the terms of the manrlate.

(h) The approximate cost of ;uch organization.

(c) 1'he nivemte and 'methods ofnweting fulun expendiiure.

(d) The nature and of p roperty jotme1·ly ou!n·ed by the 'Ge1·man Government.

(e) The 'lSe and dispo1al of property formerly owned by the German Govemrnent. (f) The natnm and extent of property, nominally owned by individ'lials or co1porations, which there is reason

to believe was held on beha1f of the German GO!•ermnent. (g) '!'he nat·u1·e an d e.7:tent of privately-owned prope·rty.

(h) The act·ion necessary for the purpose of tmnsferring to and ·ttnder British ownership the property

mentioned in the laJJt two preced·ing paragraphs in the event of it b0ing decided to 1·esume that property. (i) 'l'he trade relcuions of tlw Territory before and the wa1·, and the ?'egtdations necessary for the conduct of trade in the future. (j) The condition of the more impo?'lant public works and the necessity for any works which will

involve substantial expenditure. (k) The steam-ship cmmmmication with the 'l'errito·ry, and the act·ion necessary to secu-te regular cornnt1tniwtion in the f 1t.tu re. (1) The relations of the Territory with /.he 'l'erritory of Papua, and also witlt the British Solomon Islands, in

the event of control of those I slOfflcls being tmnsferrell to the Comnwnwealth, with a view to ·co-ordination or amalgamation of the respective G01;ermnents of the T erritory and the I sland. (m) 'l'he matter of the occ-upation of Crown land.

AND WE appoint yon, the said JoHN PLUNKET MuRRAY, to be Chairman of the said Commissioners.

AND WE require you, with as little delay as possible .. to report to Ottr Govetnor-Genem l ln aitd over Oun· aaid Commonwealth the of your inquiries into the ma.tters intrusted to you by these Our L etters Patent.

IN TESTIMONY WHEgEOF We have cmtsed these Our L ette-rs to be mnde Patent and the S eal of Ou-r said Commonwealth to be therennto affixed.

WlTNflJ8S Our Right '!'rusty and W ell-beloved Sm RoN AI.D CRAVFURD MuNRO ]!'EJWUSON, a .Member of His Majesty's Most Honorable Council, Knight Gmnd Cmss of the lrf.ost Distinguished (L.s.) Onler of Saint Michael and Saint George, Governor-Geneml and Convmancler-in-Chief of the

Commonwealth of A nstralia, this twelfth day of A1tgust, in the year of Our Lord One thousand nine h nnih·ed rmd nineteen, and in the tenth yea·r of Our reign.

By llis Excellency's Command, (Sgd.) W. A . WA'l''l',

Acting P 1·ime JJJinister.

(Sgd.) B. lri. Ji'ERGUSON,

Gove·rnor-General.

Entered on R e-xm l by me, in the Register of Patents, No. 6, page 370, this twelfth day of August, One thousand nine hu.n!lred and (Sgd. ) M . L . SHEPHERD.

1543

INTERIM REPORT.

To His ExceUenoy the Right Honorable Sm RoNALD CRAUFURD MuNRO F ERGUSON, a MembeT of His Mafesty's Most Honorable Privy Council, Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, Governor­ General and of the Commonwealth of Australia.

MAY IT P LEASE YOUR EXCELLENCY :

We, your Commissioners, having been appointed under Letters Patent dated the 12th August, 1919, to inquire into various matters connected with the Territory formerly known as German New Guinea, have the honour to inform Your Excellency that we visited the Territory, and are now engaged on the preparation of a Report which will deal fully with all the questions int o w]lich we were asked to inquire. ·

One of these questions relates to the conditions of the more important public works and the necessity for any further works which will involve substantial expenditure. In the course of our inquiries your Commissioners investigated the subject of_ wharfage accommodation at Rabaul, and we consider that certain matters which came under our notice call for such prompt attention on the part of the Government as to justify and require us to submit this interim Report which we now have the honour to tender.

The town of Rabaul, which is the seat of Government of the Territory and the most important commercial centre, is situated at the north-eastern extremity of Blanche Bay. It was founded in 1906 on an area of land which had been aoquired by the Norddeutscher Lloyd Company. That company began in 1905 the construction of a large jetty capable of berthing steamers of considerable size . The position chosen was one where t he water adjacent to the

shore was shallow, and in order to obtain the requisite depth it was necessary to extend it to a length of 877 The sketch plan annexed marked "A"* gives the dimensions of the jetty. The. plan marked "B "* shows the position of the structure iti. relation to the town and envuons.

The jetty is built on piles which were flheathed in copper. After the capitulation of the German F orces the jetty was requisitioned by the Government, and has since been in constant use, Substantial sums have been spent by the Australian Gover;nment in renewing large portions of the superstructure. ·

Recently it was discovered that a section of the floor of the goods shed, situated on the deep-water end of the jetty, was sinking, and a detailed investigation into the condition of the piles w1:1s made, which disclosed that damage_ had done by the T eredo navalis, which had completely destroyed a number of p1les and senously mjured many others.

The plan annexed marked "C."* and the Report attached thereto,* show that, of 460 piles .in t he wharf, no less than 179 were defective to a more or less serious degree. The result was t hat a large portion of the shed ac<;:ornm:odation has been rendered unavailable, an.d immediate action is necessary to save from entire collapse t hat portion of the jetty which is in

water deep enough to enable the oversea ships to berth and discharge. . As this jetty is the only wharf suitable for overseas traffic, and as lighterage plant is practically non-existent, there is serious danger of virtually the whole overseas trade of the port becoming paralyzed.

matter of effecting repairs was at once taken in hand by the local authorities, who at

the same time reviewed the whole question of wharfage accommodation of the port. Examination of plan " B " shows that there are at present five wharf., of which the other four may be briefly described as fo llows :-Coal W harf at Matupi.- This is situated on the Island of 'latupi, about 5 miles from the

Rabaul wharf. It is a flimsy struoture built of unsheathed piles of inferior wood. · On the shore adjacent are lightly-built sheds capable of holding a few hundred tons of coal, small tram lines carry the coal from the ship's side to the sheds and vice versa. Access to the wh.ar£ is difficu lt for steamers of about 2,000 tons

now trading there, and is becoming more so owing to changes in produce.d partly by silting,· partly by volcanic action and for larger steamers access 1s impossible. The wharf is owned by a German company, but i under Government requisition. Recent repairs have rendered it still u able, but its .life cannot be

rookoned to be more than a year or at most two.

• Not printecj.

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Hernsheim's and'the }lew Guinea Company's Wharjs.-At Rabaul, to the south and · north of the main wharf, are small structures belonging to the companies named, abutting on their stores and offices and used by them for their own business. They are frail, small, and with but shallow water, so that they cannot be considered

when dealing with the general oversea wharfage requirements of the port. H.S.A.G. Wharf.-On the north-west shore of the bay is a small wharf known as the H.S.A.G. or Forsayth Wharf. It is small, old, and with but a limited life, but has an excellent depth of water. There are some small copra sheds nearby and

the wharf is occasionally used· _by the 2,000-ton Burns Philp steamers when shipping copra.

. Opinion is unanimous that the Matupi wharf, which is privately owned, frail, rapidly becoming dilapidated, -and unsuitably placed, should be abandoned to its owners as soon as possible. .

A coal wharf is an urgent necessity, and must be constructed at an early date. There is an admirable frontage at Malaguna to the north of the H.S.A.G. wharf. The land is owned by Government; it is level. The water deepens rapidly, so that at 75 feet from the shore a depth of 28 feet is obtainable .

. Your Commissioners heard evidence on the subject from Major Cummins, the officer in charge of the Lands and Survey Department, Lieutenant McEnerney, from the Sydney Harbor Trust, who has had much experience as a foreman in charge of wharf construction, all the leading importers and exporters, British and German, and also discussed it with the Administrator, Brigadier-General Johnston. They have also examined the. departmental files in Melbourne which relate to the matter. · -

Major Cummins has put- forward a scheme for the repair of the main (Norddeutscher-Lloyd) jetty which involves-( a) T_he removal of the broken and badly injured piles; (b) Their replacement by new piles to be sheathed with reinforced concrete ;

(c) Shea thing the remaining piles which offer a prospect of further useful life in a similar manner. ·

A sum of £3,000 was authorized towards this work. There being no pile-driving machinery at Rabaul, a pontoon with the necessary plant was borrowed from the Papuan Government at Port Moresby. It was fitted for the voyage and towed over 600 miles to Rabaul, where it was in process of being made ready for work when your Commissioners left. The expenses already incurred, before any actual work on the jetty has been done, will absorb the larger part of the

money so far authorized. Major Cummins estimated that repairs effected on the lines of his proposals would cost, in addition to the sum authorized, a further sun1. variously stated as from £8,000 to £12,000. No financial provision for this large sum has been made.

Major Cummins further stated that, even after these repairs were effected, the cost of maintaining the jetty in good order averaged over a period of years would amount to £4,000 per annum. The local Government have recommended that a new wharf with a frontage of 300 feet, primarily for coal purposes but also available for. copra export, s_ hould be constructed at Malaguna. The local estimates of cost for this vary from £12,000 to £15,000, but consideration of the project was deferred by the Defence Department until the future of the Territory was settled.

Having regard to the great importance of such wharfage aceommodation being provided as will insure the rapid loading and unloading of steamers, and to the fact that very substantial sums of money were involved, your Commissioners considered the matter-as fully as they could and from every aspeet.

It was suggested that it was not while spending a great deal of 1noney on the present jetty in view of the faets- ·

(a) That a large annual expenditure would afterwards be necessary ; (b) That owing to the growth of trade the present wharf will soon be inadequate, as the storage accommodation is not suffieient for large quantities of inward and outward goods at the same time; ·

(c) A new coal wharf is neeessary, as there is not either on the present wharf or nearby any place suitable for coal storage, and that sueh wharf might as well be made . suitable for all purposes; (d) The cost of transport of merchandise, &c;, over the long length of the present

jetty.

The alt;rnative was put forward of constructing new wharfs at Malaguna with adequate stores for eoal, inward goods, and copra, and abandoning the present wharf.

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A further alternative, recommended in view of the convenience of the jetty as at pr.esent to the merchants' store-houses, and the probable expansion of trade, was that the present

Jetty should be completely repaired and retained as an import wharf only and the new wharf at Malaguna used for export purposes. The prospects of the expansion of tJ:'ade in the port have an important bearing on the subject.. At present Rabaul is the only port of call of the oversea steamers. All goods from

Australia are discharged there, and subsequently circulated through the Territory by the local steam service; similarly all the copra from every part is gathered into Rabaul by the same means for shipment. When' normal conditions are restored it is possible that Australian steamers may again call as they did formerly at Kaewieng, Madang, Maron, and perhaps other places to ship copra.and discharge stores, &c., and so save double handling and charges. If this is done it will obviously reduce considerably the amount of business to be transacted in Rabaul, and lessen the requirements of that port in the way of wharf and storage accommodation. · · . Your Commissioners are unable to express any opinion as to whether or not such changes

Will be made, but, in any event, seeing that .Rabaul is itself the centre of. a district which now produces half the exportable commodities of the Territory, and that these are certain to increase in the near future, we are of opinion that the port will always be the chief trade

must be supplied with wharfage capable of accommodating vessels of substantial size

and giving them quick despatch. · Among other matters discussed was the probable effect on the town if the shipping business were transferred from its present central position to Malaguna, the increased cost to the public of the additional transport made necessary by the transfer, the methods of such transport, whether by motor lorry, tramway or lighters, and cognate subjects.

Your Commissioners have themselves no expert knowledge on the subject of wharf con­ struction, and consider it a matter for regret that expenditure on projects likely to prove most costly should have been entered upon without the best technical advice having been obtained. We do not wish to cast any reflections on the officers at Rabaul, who have given n1uch time and thought to the preparation of their scheme, but we are impressed by the fact that the authors of these proposals have never yet built a wharf of any size) and we feel doubts as to the wisdom

of some of their suggestions and especially as to the soundness of their estimates. The plans and estimates for th.e new wharfs at Malaguna have been submitted by the Department in Melbourne to experts, who have prepared plans showing how; in their opinion, the new wharf should be constructed, and their estimates of the cost. These experts have no local knowledge, and your Commissioners are of opinion that, if they had the advantage of personal

consultation in Rabaul with the Administrator and his officers, some of their views would be modified, with the result that a workable scheme at a moderate cost would be evolved. Your Commissioners therefore recommend that at the earliest possible date an experienced wharf designer should be sent to Rabaul to settle plans-

(1) For dealing with the present jetty ; (2) For the construction of a wharf or wharfs at Malaguna for coal and general merchandise. Without in any way attempting to impose their views on the expert to be sent, they submit for his consideration the following suggestions:-

(1) That, as to put the present jetty in repair will cost large sums, and the future maintenance costs will be heavy, no substantial expenditure on it should be incurred. (2) That, as wharfage accommodation must be provided, repairs intended to last for a

comparatively brief period only should be undertaken. This will give the necessary time for building a new wharf. These repairs might consist only of the temporary reinforcement of the weakest parts by means of extra piles driven on each side of the jetty carrying stout transverse girders to support the weight

of the superstructure, &c. (Such piles and girders of local hardwoods are understood to be already available at Rabaul.) (3) That when a new permanent wharf is built the existing .Norddeutscher-Lloyd jetty should be cut away for about 390 feet and a small T-end constructed to

serve as a local wharf. ( 4) That temporary coal storage be provided at Malaguna which might of the following character :- Two strong pile dolphins (tripod) of local piles and shore mooring posts to hold a ship of 2,000- 3,000 tons safely in position; then

centrally a light landing strong enough to safely carry the rails and. loaded coal trucks, to be built of local piles and timber, tarred, &c., to last from eighteen months to two years.

8

(5) That two wharfs at Malaguna should be provided separated by about 200 feet. There is no need for a continuous wharf, as it is only the working parts of ships which need to be provided for. · One of these wharfs to occupy the site oif the temporary wharf referred to in ( 4) above. (6) That each of these wharfs should be about 250 feet long and built on concrete

encased piles parallel to the shore line., and connected therewith by two ·gang-ways each about 30 feet wide. ·

(7) That a long massive sea-wall of reinforced concrete is not desirable, as it would probably be affected by earthquakes, for which reason the structrrres generally should be as elastic as possible. (8) That a space between the shore and the wharf be left. for the present with a

view to it being reclaimed subsequently. -(9) That ampfe · st-orage accommodation be erected on the land as near: the wharfs as possible.

We have the honour to be,

Your Excellency's most obedient Servants,

{Signed)

Melbourne, 22nd November, 1919.

Transmitted to the Prime Minister.

{Signed) R. M. FE-RGUSON,

Governor-General,

J, H. P. MURRAY. ATLEE HUNT.

WALTER H.

27th November,

FINAL REPOR'l_, OF

ROYAL COMMISSION ON

LATE GERMAN NEW GUINEA.

,...... ..... \

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1549 r --

REPORT.

To His Excellency the Right Honorable SIR RoNALD CRAUFURD MuNRO FERGUSON, a Member of His Majesty's Most Honorable Privy Coundl,

Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, Governor-General and Commander-in-Chief of the Commonwealth of Australia.

MAY IT PLEASE YouR ExcELLENCY:

We, Your Commissioners, having been appointed by Letters Patent, dated 12th August, 1919, as a Royal Commission to inquire into and report upon various matters connected with the (late) German New Guinea Possessions, have the honour to submit the following report :-

Two of Your Commissioners-Messrs. Atlee Arthur Hunt, C.M.G. and Walter H. Lucas--accompanied by Mr. H. Farrands, Secretary to the Commission, left Sydney per s.s. Morinda, on the 12th August, 1919, for Rabaul, via Papua. Late on the evening of the 24th August, the steamer. reached Port Moresby, Papua, where His

Excellency, Judge J. H. P. Murray, C.M.G., Lieutenant-Governor of Papua, joined the Commission. After calling Samarai and Woodlark Islands, where Your Commissioners took advantage of the opportunity of inspecting coconut plantations, &c ., the JJiorinda arrived at New Britain, about 1L30 p.m., on 1st September. The next morning

Your Commissioners landed at Rabaul and called on the Acting Administrator­ Lieutenant-Colonel Seaforth Mackenzie, in the absence of the Administrator-Brigadier­ General G. J. Johnston, G.B., C.M .G., who returned to Rabaul about a fortnight later. On 3rd September Your Commi ssioners comrp.enced the taking of formal evidence at the Court House, Rabaul. All the leading officials of the Military Administration stationed at Rabaul were examined. In addition, Your Commissioners made a preliminary inspection of the country in the vicinity of Rabaul, as well as the various public works and buildings, &c.

On the 15th September Your Commissioners proceeded on a tour of the out-stations, during which the following places were visited :-Kaewieng, New 16th- 17th September. Lorengau, Manus, Admiralty Group, 18th-19th Septerr1ber.

Pitilu Island, Admiralty Group, 19th September. Sepik River, (late) German New Guinea, 20th-21st September. Alexishafen, (late) German New Guinea, 22nd September. Madang, (late) German New Guinea, 22nd- 23rd September. Noru, Manus, Admiralty Group, 26th September. Loloban Island, 2nd -October. -

Talasea, New Britain, 3rd October. Witu Island, 4th- 5th October. Kurandal, New Britain, 6th October: The Government officers at these places were interviewed. and an inspection made of the Government stations, plantations, Mission stations, hospitals, t nd other public

buildings.

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On the day after their return to R abau l (7th Oct ob er), Your Commissioners continued t he t aking of formal evidnce, and pursued t heir inquiries in other necessary directions .

Your Comrnis.sioners, on l Ot h October, left Rabaul for the.(lat e) German Solomon · Islands, where the following places were visited :- ·

Bougainville Island, 11th-12th October.

Kieta, Bougainville Island, 12th- 13th October. Tonolai Harbor, Bougainville Island, 13tf1 Oct ober.

As on t he occasion of their previous visit to out -stations, Your Con1missioners took full advantage of every opportunity for inspecting plantations, native villages, public buildings, and other places of int erest from an adn1inist rative point of view.

On t he 15th October Your Commissioners returned t o Rabaul and continued· their investigations until the 21st October, when Your Comrnissioners left per s. s. Mon"nda for Sydney, arriving there on the 2nd Noven1ber.

Throughout their investigations Your Com1nissioners received t he great est possible assistance fron1 I-Iis Excellency the Administrat or, Brigadier- General Johnston, O. B ., O. M.G., and they desire that a cordial expression of their thanks should be conveyed to him and all the heads uf t he departments of the Government, among whom they 'llould especially like to mention Colonel McKenz_ ie, ·t he of Appeal ; lVIaj or Cummins, Commissioner for Lands; lVfajor Newport, Director of Agriculture; Captain Gillan, Treasurer; and Captain Phibbs, Collector of Custmns.

All information which the Corn1nission desired t o obtain from official sources was promptly procured, although its collection and cornp1lation must have involved considerable trouble.

Your Commissioners also desire to place on record their appreciation of the services of their Secretary, Mr. H. Farrands, whose experience, industry, and willingness have been of t he highest value. .

Your Commissioners now haye t he honour to submit their report. They regret that on the more important matters referred t o them their views were so widely divergent t hat t hey have been unable to come to an agreement. The report is, therefore, submitted in the following form :-

First-An introduction, necessary to give a general view of the position . of t he Mandat ed Territory ; .

Next-A statement regarding matters on which the Comrnission agrees ; Then follow separate Reports- firs t, by the majorit y of Your Commissioners - -Messrs. Atlee Hunt and \Valter H. Lucas ; and second, by His Excellency J. II. P. lVIurray, Esq. , Lj eutenant-Governor of Papua .

Certain annexures complete t he document, which they now present to Your Excellency.

Melbourne, 8th December, 1919 .

We have the honour to be,

Your Excellency's obedient Servants,'

(Sgd.) .

J. H . P. MURRAY, Chairman .

ATLEE HUNT.

WALTER H . LUCAS.

Report on Matters on which Con1n1issioners are 1n Agreement.

INTRODUCTI ON.

Before dealing with the specific quest ions submit t ed for their consideration; Your Commissioners invite at t ention to t he following notes in which an attempt has been made to sketch briefly t he present position of t he interesting and valuable Territory about to be entrusted to t he care of t he Comn1onwealtli under Mandate fro n1 t he League

o£ Nations . Merely fonnal memoranda on the subjects referred to in the

Comrnission would, it is t hought, be unsat isfactory to the public of Australia whose members, though doubt less realizing in a general way t he irnportance of t he Territory in :its relation to t he defence of the Corn1nonwealth, are yet without accurate informa­ tiol1 as to the nature of the country for whose fut ure government they have undertaken the responsibility. ·

1551

That part of the fo rjner German possessions in the P acific dealt with in this Geographical. Report, and which fo r is referred t o herein as t he Mandated Territory,

lies between the latitudes of 1° and 8° South and longitudes 141 and 156 East. I t is not a compact area but, as will he seen f.rom t he map appended hereto, consis-ts of portion of the mainland of the great island of New Guinea and a large number of smaller which are grouped geographically into the Bismarck t he Adn1iralty

and t he German Solomons. The western half of the mainland of New Guinea

belongs to the Dutch. The South-Eastern quarter is t he Australian Territory of Papua . It the area lying to the north of P apua and to the East of Dutch New Guinea (that is, roughly speaking, the North-Easterly quarter of t he mainland, about 70,000 square mile$), which was formerly /in German hands. ·

Some of the almost innumerable islands are of substantial size. J:ror instance, New Britain contains 10,000 square miles; New Ireland, 4,600 square miles; Bougain­ ville; 3,500 square miles; and New Hanover over 500 square others are of varying ateas down to tiny coral islet s and reefs.

The formation of New Guinea and' t he ]arge islands is mainly volcanic which Topographical. accounts . for their lofty ranges and broken irregular surfaces. On t he New Guinea mainland there are several chains of high mountains with peaks reaching t o over 10,000 feet ; on New Ireland the main range rises to 8 bout 7,000 fee t ; on Bougainville also Nature of great mountains occupy t he largest portion of the surface of t he country. country.

It is important to remen1ber that the area pf cultivable la.nds in these, as in other tropical v:olcanic countries, cannot be gauged frorn the total areas mentioned as, owing to the fa c·t that so much of the country is mountainous and so much swampy or innac­ cessible or of poor quality, the extent of land available for settle1nent is comparatively limited. It has, moreover, always been a principle of both German and British admin­

istrations that alienations should not be permitted where the land in question was required by the natives for purposes of food supply. As the natives depend almost entirely on the products of t heir gardens and fishing stations this provision reduces substantially the area which can be t aken up for plantation purposes.

The small islands are mostly of coral formation with a sandy soil, usually regarded as being the best fo r coconut cultivation provided it is of the necessary depth. As such coral islands are not usually hea ily t imbered, they have always been in demand and are mostly plant ed with coconuts, except ' -here they are occupied entirely by the native population. In later years the German declined t o. agree to the

alienation of small islands which could only be held on lease. On the mainland of New Guinea there are, as in the corresponding area of Papua, Rivers. -some large rivers, of which the Sepik and the Ramu are the chief. The Sepik, also known as the Kaiserin Augusta River, is a .noble stream navjgable for a vessel of 600 tons for

14

over 250 n1iles. The is navigable to a lesser degree but all the other streams Rainfall. are valueless as highways towards the interior. The rainfall is heavy but not uniform;

probably 200 inches is the average maximum with a minimum of 70 inches. The greater part comes in the wet season from December to April, but substantial falls crown lands. occur during other months of the year. The country. is generally densely wooded but

there are large areas of swamp land covered with reeds and similar vegetation. There are also extensive patches of grass regarding which Dampier, one of the earliest explorers of these regions, wrote :- -

''The savannas seem to be very smooth and fine. No meadow in England appears to be more green in the spring than these."

Many casual observers since have com1p.ented similarly on these areas which, when seen from the sea, present a most inviting appearance. The charm of these savannas, however, disappears on close acquaintance. They are masses of strong coarse grass known locally as "kunai" but throughout the East Indies as "lalang," which grows several feet high, and -is almost invariably an indication of a hard subsoil utterly unsuitable for cultivation. The grass itself is valueless and indeed is a pest and the cause of substantial expense to cultivators. The forest and scrub vegetation, charac­ teristically tropical, delights the botanist in its infinite variety, but there are few, if - any, extensive areas whence timber in comn1ercial quantities can be procured. There

are many varieties of fine timber trees, but these occur mostly in small and widely separated patches.

Fauna. On the mainland the native fauna are more numerous than on the islands.

Nowhere are there large animals except the pig and wallaby.

Population. The Mandated Territory is, as a whole, not thickly populated. No accurate

estimate of the numbers of natives is as yet procurable, but from the information avail­ able the best judges consider that they do not exceed 350,000. The natives vary in colour from a light brown to an intense black. The Buka boys, as the natives of the .German Solomon Islands are known, are as sooty as any negro. As a rule they live

in small communities in permanent habitations constructed of light wooden fra1nes walled with the leaves of the sago or nipa palms, and roofed with similar material or with grass thatch. In some of theinland regions, however, there are said to be sub­ stantial villages with populations of over 1,000 persons. Especially in the Bismarck Archipelago and the Solomons they are assiduous cultivators and raise in their fenced Native foods. - gardens large quantities of taro, yams, bananas, sugar-cane and coconuts. In some·

parts there are extensive sago swamps from which much food is obtained. • On the sea-coast fish are caught in ingeniously contrived traps. Pigs and wallaby furnish occasional supplies of meat.

cannibalism. As in Papua many of the tribes were originally cannibals. Wherever the influ-ence of the Government extends this practice has been abolished, but in those regions which have not yet been brought control it still prevails.

Language. There is no universal language ; indeed dialects are widely diverse, though during

the last 30 or 40 years most of those who have been brought into contact with civil­ ization have acquired knowledge of "heche-de-mer" English which serves as a means of communication, not only between them and the whites, but also, in the case of natives coming from different parts, between themselves.

It is interesting to note that, despite the long time the Germans were in authority, the use of their language never became con1mon among the natives, and Germans of all traders, planters and missionaries-vvere, except -in the

con1paratively rare cases they had acquired knowledge of some local dialect, obliged to resort to this "heche-de-mer" English in their dealings with the local inhabitants.

It is not necessary to review the records of discovery of these lands, but one jnteresting and little known fact may be recorded here. ·

British flag Captain -Cartaret, in a British ship, under a mission of exploratic'n on

hoisted first h Ad · ·

1767. behalf of t e m1ralty, sa1led round the vvorld in 1766-7. He discovered that New

Britain and New Ireland, previously believed to be one land, were separate. ·He landed on the western coast of New Ireland, and" having taken in wood and water and repaired the ship in the best manner they were able, the captain tookpossession o± the country,

15

with all the neighbouring Islands, for the King of Great Britain. This was done by nailing on a lofty tree a piece of. board, with le3:d, on which engraved the name of the vessel and of the captain, the time of entenng and leavmg the harbor, and a representation of the Union flag of England." , -

Nothing seems to have been done to confirm this action, and the country unclaimed untill884, when, after negotiations and agitations, the memory of whiCh IS still fresh in the minds of the older generations. of Australians, the Germans were per­ mitted to annex North-Eastern New Guinea and the neighbouring lands.

553

At first the Gernmns governed by medium of a chartered Company, the N eu German Guinea _ Compagnie, \Vhich combined the functions of government with the business of traders and planters. Head -quarters were changed frbn1 time to time on accou?-t of the unhealthy climate, which caused heavy losses in personnel through nmlana. The systein of delegated authority having proved unsatisfactory, an agree1nent was inadc in 1898 between the German Government and the Compagnie by which the Government assu1ned direct control, the Compagnie being compensated by grants of land and money.

At that time the Seat of Government was at Friedrich-Wilhelm's Hafen, now seatof known as Madang, but it was ren1oved soon after to Herbertshohe, now Kokopo, and Government. in 1906 to R,abaul, it·s _present location. . the occupation by fo_rces in 1914 the Gove!nor. and the principal of

officials hved In Rabaul. That to:wn Is situated ori flat land, whiCh hes on the Northern shore of Blanche Bay at the north-eastern extremity of New Britain. It is hemmed in by an amphitheatre of hills varying from 400 to 2,200 feet high. There an expensive wharf was built, large trading stores erected, and bungalows of an excellent tropical type built for the homes of the residents.

The principal officials, including the Governor, were housed on the land at the back of _ the town, where a saddle between two mountains offered cooler air and healthier conditions. Rabaul :was well laid out, avenues planted, a charming Botanic Garden created, and separate locations established for the Chinese and lVfalay portions

of the population. The only other towns ·were at Kaewieng, at the north-western end of New Principal ports. Ireland, and l\tfadang, about midway along the New _ Guinea coastline; but these were 1nuch smaller.

The Government was carried on fron1 Rabaul, chiefly through the mediu1n of Government district officers, who stationed at the various districts, ten in all,

into which the Territory was divided. These district officers dispensed minor justice, and organized patrols throughout their district for the purpose of eollecting taxes in places where that was practicable, and also of securing order amongst the native tribes, who were prone to wage war on each other on the slightest pretext.

It was the practice to ascertain the man of greatest influence in each Native chiefs community and appoint him Luluai, or ehief; a second native was ehosen as Tultul, or interpreter, through whom Government instructions were conveyed to the Luluai, who was held responsible for the execution of the orders and the general welfare of his people.

There are still very large areas, chiefly on the mainland, whieh have never yet s ettlement all been visited by the white man, and of these little was known. There was no strong inducement to undertake the difficult and tedious process of carrying the Government untouched. influence throughout . the whole length and breath of the Territory, as the German settlements were practically all on the coastline and there was n1ore than a sufficiency of labo-urers from known districts who were willing to recruit.

In addition to the Government activities, influences tending to peace and Mission eivilization were spread by means of the Missions, who employed a large European p ersann ez. men and 94 women-of whom 145 men and 76 women were Germans.

The practice was for white missionaries to be stationed at various central points Nat ive t eachers h h · d h f · ' and method of w ence t ey supervJSe t e efforts o a number of native teachers scattered about. supervision. amongst the villages. It is difficult, if not impossible, to say to what extent the principles of Christianity have permeated the native mind; but, on the whole, there can be no doubt that the influence of the Missions has assisted the work of government.

education.

Chinese and Japanese population.

Roads.

Steamship services (overseas).

Stea.mship service (intra­ t erritorial).

16

A cert ain amount -of educational work, more especially of half-castes, undertaken by t hem: but, except in a few rto instruction of &n industrial

nature was given.

Besides Europeans, t here were a number of Asiatics in the Group-:-?bout 1,377 Chinese and 232. J a panesE L The Chinese were employed as coolies fo:r loading and discharging cargo, as artisans, and as small traders, i:q. which latter capacity they we:re widely scattered. The J apanes.e were ·Occupied chiefly as boat .. builders, pearl-fishers, and, in a lesser degree, as t raders and planters.

The Germans adopted the policy of encouraging .the making of roads, and there are some excellent roa4s in .New Britain proceeding !rom R abaul. In. New Ireland there is a road practicable for vehicles for over 100 miles, and there are :roads elsewhere.

In 1914 coinmunication wit h the outside world was maintained solely by vessels of t he N orddeutscher-Lloyd. I n 1896 Messrs. Burns, Philp and Company ·established the first regular steam service from Australia to t his Territory, but ten years later they were forced out of the t rade, which t hereafter was entirely in hands.

Norddeut scher-Lloyd steamers ran regularly between Ho;ng Kong and Sydney, calling at Rabaul both ways, and there was an occasional connexion with Si:n,gapore.

Sea communication bet ween different parts of the Colony was maintained by vessels belonging to t he New Guinea Company and the Norddeutscher-Lloyd. These . vessels visited the various- cent res of distribution, t21king stores;· and collecting copra, which was brought t o the shipping ports for transfer to oversea steamers. In addition,, there was a Government steamer, the Komet by the Australian

Navy and now known as t he Un a)., which was employed to take the Governor .from place to place, and transport officers, police; and supplies to Government stations.

Native police . In normal times there Were no armed white forces in the Territory, but

was a substantial body of native police about 630) who were_ trained in

European drjll and discipline, and parties of whom were attached to each district office fo r patrol work.

Area Ge rman The Germans (excluding Missions) had acquired about 565,981 acres o£ ·land, owned lands • · . . . . . · . ' ,

on WhiCh they had creat ed, up to 1918, plantations totalling 100,219 Most of -

Method of recruit ing labour.

Terms of service .

Government supervision of native labourers.

Germans who were not Government officials or storekeepers lived on the plantatiOns, which were worked under their supervision by na-tive la·bol;ir.

The practice was for the owners or managers of plantations to recruit labourers for thems-elves, or else t o hand that over to agents, known as recruiters, who would undertake to supply a certain number of labourers to the order of eertairt firm_ s at specified rates. The recruit-ers visited the natives in their homes, and arranged with t he1n to accept engagement fo r a three years' term. The recruits were then . taken before a Government officer, whose business it was to see that the native understood t he contn1ct he was making and that he was not being fo.rcibly brought away his home. They were t hen transferred . to their respeGtive places of employment. were laws providing for Govetnnieht supervision in regard to the licensing of recruiters, and also as to the care of t he native on the plantations and his return home on the expiry of his agreement.

BdritisJ:: t t· Your Commissioners did not inquire into the manner in which these

a m1ms ra wn . ; . · . . .

of German laws laws were administered by the Germani:! or as to whe·ther any extensiVe abuses existed already . ·/ . . - ' · · • · ·

ben.eficiai to under their but, chiefly as a result of the constant oversight of British officials

natiVCs . and partly, perhaps, because labour is not so easy to obtain as formerly, it is now

generally recognised by the German employers that it is- to their interest, to treat their labour well, otherwise the ill-fa me of t heir estate _. would be widely circulated and they would find it difficult, if not impossible, to secure further supplies of labour.

The main exports of t he Colony were copra, cocoa, rubber, and shells-mostly

copra, c. 1 h ll d · ·

pear s e an trocas. By far t he largest area planted was devoted to the cultivation of the coconut, from which the copra of commerce is obtained. Its preparation is- n0t diffic ult, and no complicated machinery is. used. The flesh of t he fruit is cut into pieces by hand by natives; and these are dried either by exposure to the sun or in artificially

17

heated drying sheds, and are then bagged for shipment. These drying methods ate employed for extracting the moisture, and experiments are now being made in various parts of the world with the object of securing a perfect drying apparatus. Finality is not yet in sight, but there are several systems which give more or less satisfactory results. The rna tter is important, as price depends to a large extent on c01npleteness

of drying. Quite a substantial portion of the total quantity exported is known as "trade" copra, as distinct from plantation copra; it is that prepared by the natives frotn their own trees, and sold to local traders for cash or in exchange for European goods. As a rule, being made with less care, it brings a lowel:' price.

555

Formerly the use of copra was limited to soap-making, but in recent years uses of copra. chemists have devised 1neans of transforming the vegetable fats into valuable food products, which are in extensive demand in Great Britain and, to a greater degree, on the Continent of Europe. ·

When the German forces were defeated, and the former officials repatriated, government was for a time in confusion, but gradually a civil establish1nent was set up under the control of the Commandant of the ·Australian troops, who, for the past five errnan aws. years, have garrisoned ·the Colony. The lines of organization were, generally speaking, those which had prevailed under German rule, but all the posts were filled by soldiers

who, except in a few cases, had had no previous experience of civil administration.

The German laws remained in force, very few alterations being found necessary. rftterir f The practice of flogging natives for disciplinary reasons was abolished; the taxes, with some alterations in rates, were collected as previously; copra was made and exported; and, generally, business has been carried on as usual.

A few leading Germans who showed themselves hostile to the hew administration Few Germans were interned, but the greater number accepted the new conditions and remained in h · h h · 1 · h f f l · allowed to carry t eu ware ouses or on t elf p antatlons as ereto ore. There are our arge companieS on business as carrying on business whos.e shareholders are in Germany. They are the Neu Guinea

Compagnie, the Hamburgische Sudsee Aktien Gesellschaft (generally known as the Principal R :S.A.G.), Hernsheim and Company, and Rudolf Wahlen and Company. These are all planter'S as well as traders-. The latter confines its activities almost exclusively to the Aamiralty and Hermit Islands, but the other three have interests scattered all

over the Territory. They have large, well-stocked stores, ·and supply planters with all their requirements ; in addition, they carry on business as bankers, receiving money on deposit and making advances to planters. During the war it was not possible to Profits used for · · fi G d h 1 · 1· d f 1 f' development of transmit pro ts to ermany, an t e surp us rea 1ze rom sa es o copra, &c., . has plantations.

to a large extent been utilized in opening up new areas of plantations.

The Commonwealth Bank has a branch in Rabaul, but hitherto its operations commonwealth have been restricted almost entirely to Government and Savings Bank · business; Bank. but,< with the establishment of a civil administration, there is reason to believe that it will undertake all the ordinary classes of banking operations.

The Government t'ook over the inter-island steamers, and maintains a service on similar lines to those previously in operation. The oversea serviceg, owing to war-time exigencies, were limited to communication with Australia, which is carried on by vessels of Messrs. Burns, Philp and Company under · a contract which fixes rates of fares and freights, &c.

One very important reform was effected by the military adn1inistration which ImJ?ro,:cd has had valuable results in improving health conditions for white residents. Although the Germans built excellent houses, it is surprising to note that they did very adrnmlstratwn. little reducing the liability to malarial fever which existed throughout the Poss,ession. There was no doubt that they lost many valuable lives through this

disease ; in fact, the unhealthy character of various stations was the direct cause of the removal of the Seat of Government on several occasions. v\ hen the British assunred control, one of the first works undertaken wa · to ende vour to minimize the risk of infection at Rabaul. The lessons learned from Panama and other malaria-infested

countries have been applied with diligence, so that now Rabaul, formerly a hot-bed of disease, is remarkably healthy for a tropical notwithstanding that the town lies on a flat, much of which was formerly a swamp. Mosquitoes are now very rare. The same applies to a lesser degree to other centres where Europeans are assembled.

Away from such centres liability to fever is still constant .. F .l334.-2

18

(d) THE NATURE AND EXTENT OF PROPERTY FORMERLY OWNED · BY THE GERMAN GOVERNMENT. · Particulars under this heading have already been compiled at the Department at Rabaul, and the information given is as follows: -

Lands

Government buildings and furniture ( m·de German Government Estimates, 1914). For particulars of buildings seeAppendixD Bita Paka Wireless Station-Estimated value at time of capture Crown land planted or otherwise in actual use for Government

purposes ..

Government jetties Government vessels- Nusa Lorangat6 Oarola

£4,000 1,000 400

£

113,000 60,000

158,000 2,500

5,400

(e) ·THE USE AND DISPOSAL OF PROPERTY FORMERLY OWNED BY THE GERMAN GOVERNMENT. The property owned by the German Government was taken over by the Military Administration and utilized as required, generally for similar purposes to those for· which it was employed before..

The various buildings in Rabaul whi(jh belonged to the Government are shown in a Return furnished by the Commissioner for Lands, see Appendix D, which also indicates the purposes for which they are being now used. The Bita Paka Wireless Station was only partially complete when captured by

the Australian Forces in 1914. It is estimated that its value then was £60,000. Considerable expenditure was incurred in putting it into working order. It has been used regularly since.

There are no large wharves or jetties in the Mandated Territory which were formerly owned by the German Government, but there are a number of small jetties at outports which were so owned and are now under the control of the British Military Administration.

With respect to the former German Government owned vessels, the steamer Komet, which was used as the Governor's yacht, in which he made periodic visits of inspection, was captured by the Navy, and under the name of Una was commissioned and has since been employed by the Admiralty as part of the Australian Navy.

There \vere three small vessels- the Nusa, Lorengau, and Carola. The Nusa is a small wooden steamer of 12 tons dead-weight capacity, built in Tsingtau, in 1914. The Military Administration recently overhauled this vessel and she is at present used by the Administration as a Harbor tug anrl for general administrative work. The Lomngau, a wooden 10-ton motor schooner, built in 1912, is used for administrative purposes by the District Officer at Kieta, (late) German Solomon Islands. The Oarola, a 6-ton motor schooner, maintains a passenger and cargo service between Rabaul and

Kokopo (Herbertshohe).

(f) THE NATURE AND EXTENT OF PROPERTY NOTh1INALLY OWNED BY INDIVIDUALS OR CORPORATIONS WHICH THERE IS REASON TO BELIEVE WAS HELD ON BEHALF OF THE GERMAN GOVERNMENT. Your Commissioners made careful inquiry to ascertain whether there were any properties which appeared in the names of individuals or corporations, but which were really owned by the German Government. There seeemd to be an idea that the German Government had been using private corporations as a cloak for Government activities, but your Commissioners could . find no evidence of this having been done. Such assistance as was given by the _German Government to companies such as the Neu Guinea Compagnie and the Norddeutscher Lloyd, was legitimately paid in the first place in return for concessions surrendered, and in the second as subsidies for the promotion of steamship trade.

19

(g) THE NATURE AND EXTENT OF PRIVATELY-OWNED PROPERTY . .

The Commission accumulated a large quantity of detailed information under this head in the form of Returns, supplied by Major Cummins, Commissioner for Lands, from which they have compiled the following Summary :_:__ Value of property owned by the big German Companies-

New Guinea Company . . £1 ,280,000

Hamburgische Sudsee Aktien Gesellschaft 500,000 Hernsheim and Company 260,000

Norddeutscher Lloyd 100,000

Hamburg Saw-mills Company (German) Other enemy property in private ownership Enemy Mission property . .

. .

ToTAL VALUE OF ENEMY PROPERTY IN PRIVATE OwN ERdHII' Property owned by British subjects Property owned by Japanese Leases to Chinese

GRAND TOTAL

£2,140,000 6,000 2,000,000 400,000

£4,546,000 286 ,467 66 ,666 109,013

£5 ,008,146

The major portion of the enemy property in private ownership consists of coconut plantations. The following Summary will convey some idea as to the extent and value of these plantations, as well as of those owned by other than enemy subjects :-

New Guinea Company . . . .

Hamburgische Sudsee Aktien Gesellschaft Hernsheim and Company . . . .

Rheinische Mission (Lutheran Calvinists) Neuendettalsau Mission (Lutheran) .. Liebenzell Mission (Lutheran) -Methodist Mission (Australian) Marist Mission (Catholic) .. Capuchin Mission (Catholic) Sacred Heart MissioL (Catholic) Catholic Mission of Holy Ghost ..

Smaller planters and companies, numbering about 150, of whom . about 120 are Germans . . . . . .

Chinese pfanters at Namat anai, New Ireland (about 21)

TOTALS

Are,t (Acres).

368,11 8 62,271 8,549 2,897 10,411

25

5,387 4:,087 1,159 39,536 17,203

174:,281 3,255

697,179

Are& Planted (Acres),

21,962 9,985 6,698 740 1,727

25 741 1,099 618 5,930 5,691

86,831 2,932

·,· 144,979

r

Norddeutscher-Lloyd owns about 140 acres, comprising (v.rith. the cxeption of a Township few Government blocks) the whole of the principal township of Rabaul, plu F; a few small Lands. building blocks at various outports totalling about 11 acres .

The New Guinea Company owns about 123! acres at Kokopo (late Herbertshohe), upon which a great part of the township is built, the balance being plantations. This Company also has important township blocks at Madang, of which the area was not ascertained, and 3! acres in the township of Kaewieng.

Other Companies, such as Hamburgische Sudsee Aktien Gesellschaft and Hernsheim and Company, a] so hold important township properties at all the principal ports, but the data supplied t o your Commissioners does not separate township blocks from plantation lands.

An area in Rabaul, known as Chinatown, which has for some vears been leased to a Chinese and sub-let by him to other Chinese, &c ., was recently resumed by the Military Administration, which is now dealing with the question 9£ issuing fr esh leases over the properties included in the area referred t o.

1557

20

Particulars ·of enemy and otherwise-owned buildings in various districts are set out hereunder:-KAEWIENG. Hamburgische Sudsee Aktien Gesellschaft

Hernsheim and Company New Guinea Company F. Kirchner

Store and four residences Store and three residences Store and two residences Residence

There are also various bujldings erected on Ctown land, known as Chinatown, Kaewieng.

Mioko Company Alois Akun Hernsheim and Company

NAMATANAI. Store and residence Store and Store and residence

There are also small Chinese residences.

New Guinea Company

New Guinea Company Catholic Mission

New Guinea Company

KOKOPO.

EITAPE.

MADAN G.

Hamburgische Sudsee Aktien Gesellschaft Bremer Sudsee Gese]lschaft Mrs. Dem pter ..

Hernsheim and Company Mioko Company Choisseul Plantations Company

N orddeutscber-Lloyd New Guinea Company Hernsheim and Company

KIETA.

RABAUL.

Store and eight residences, hotel (no w closed)

. . Store and residence . . Mission station

Store, offices, sheds, hospital, doctor's residence, four residences, hotel Store and·two res-idences . . Store and two residences

Residence

. . Store and residence Store and residence Small shed

. . Twelve residences and hotel . . Store and offices; five residences . . Store and offices, several residences

There are several buildings. erected by lessees on la:n·d, as follows:­ Ah Tam,. ship yards, store, and residences ; I. Komine, ship yards and re&idences.

In addition there are several buildings (small) erected by Chinese gardeners, butcher, boatbuilder, and blacksmith. These are \Vater front and adjacent blocks.

Rabaul. --·All this property is now resumed by the Government, and

is undergoing investigation, preparatory to issuing new leases ..

(j) THE CONDI'riON . OF THE MORE IMPORTANT PUBLIC WORKS AND THE· NECESSITY FOR ANY FURTHER \VORl{ WHICH WILL INVOLVE SUBSTANTIAL EXPENDITURE. .

Your Commissioners took advantage of every opportunity to inspect the various public works in the Possession, including buildings, wharfs, &c., at Rabaul, and at the outstations visited by them.

Roads. The roads of the Possession were found to he in good condition. Outside Rabaul

and other township areas it has been the practice in the past to require the natives residing in the vicinity of a particular stretch of road to constantly keep that portion in repair. In addition, where natives have been m1abJe to pay their head t ax in money, they have been allowed to perform road work as part payment or in full payment of their .. In Rabaul gangs of paid natives, as well as native are employed

In maintaining the rQads. These latter also perform other duties such as sanitary services and cutting grass, &c . .

21

· The· Government offices and b_u!lgalows, built wood, are well const_ru?ted; and remarkably well adapted to the conditiOns of the tropics. Generally, the buildings were found to be in a satisfactory condition, practically the only cause for complaint being lack of painting, caused through the scarcity of paint and its high cost even when

obtainable. It is, of course, needless to point out that tropical conditions require that wooden structures shall be regularly painted, otherwise serious depreciation will occur. White ants have not proved very troubleson1e. The occupiers of bungalows are required to take steps to keep their houses free of the termites, and this regulation has proved most effective.

559

The residents of Rabaul obtain their water supply from ordinary rain-water watersuppiy. tanks and wells, whilst drinking water has, during the military occupation, been obtained by condensation. Water may be obtained by sinking for about 25 feet at Rabaul. ·

The question of water catchment and conservation has been under the consideration of the Military Administration. It was represented that there would be difficulty in constructing a reservoir owing to earthquakes, which it was thought might burst the walls and result in the town being flooded. However, a system of smaller cement storage tanka has been proposed. In all the circumstances, it is not considered

by your Commissioners that the matter is one of. urgency., and it is recommended that it be left to the Civil Adn1inistration to dea] with. Generally speaking, your Commissioners are of opinion that no substantial 1 expenditure will be necessary for some years in connexion \vith public works, with the Y exception of the outlay necessary in regard to wharfage accommodation. The question necessary. of providing such accommodation at Rabaul has already been dealt with by your Commissioners in their interim report. Wharfage accommodation also exists at the various outstations. There is a otherwharfs. Government wharf at Kaewieng, New Ireland, which was built in 1917 and is constructed of wood. 135 feet of berthage has been provided for a ship drawing about 26 feet. There is a shed on the wharf about 102 feet by 70 feet. Your Commissioners were informed that the total cost of the wharf and shed was about £4,800. At Madang there is an extensive wooden wharf _ owned by the New Guinea Company, which is showing signs of deterioration. It is capable of berthing vessels up to 2,000 tons or more, but would not accommodate overseas vessels of, say, 5,000 tons. · · There is a small Government whar£ at Kieta, Bo.ugainville, constructed of wood, which is suitable for berthing steamers of about 1,000 tons. This structure will probably require to be renovated in the near future. At other outports there ar:e wooden jetties suitable for berthing small craft only. Apart from the necessity for improved wharfage accommodation at Rabaul, the. question of in1proving the wharfage at outstations is dependent, to a large extent, on the policy of the Government as to whether overseas vessels shall be allowed to call at outports in addition to Rabaul. So long as Rabaul is retained as the entrepot for inward and outward cargo, your Commissioners are of opinion that no substantial expenditure will require to in connexion v.'i.th the wharfs outports ; but, if such vesse]s are to be permitted to discharge and load at, say, Kaewieng, 1\fadang, and Kieta, it will be necessary, in the near future, to effect certain alterations to the existing wharfs at those places to accommodate larger vessels than the present Australian steamers of about 2,000 tons. The necessity, however, for a larger workshop to be attached to the Public Works New R 'b 1 . d C . . A 1 d workshop! Department at a au was Impresse upon your ·ommissioners. very arge an · up-to-date lathe was re?ently and the existing workshop has been found small to accommodate It. The Pubhc Works Department advocates the constructiOn of a new workshop in which the lathe and other incidental machinery not yet procu.red may be housed ; but no scheme has yet been formulated embodying estimates of cost of construction and maintenance. The Works Department executes repairs to machinery and repairs in connexion with the Government steamers. It is represented that the installation of larger machinery complementary to the lathe would enable such work as boring steamers'

22

cylinders, manufacturing steamers' propeller shafts, &c., to be undertaken locally instead of the work being sent to Australia. The necessity for this as a Government venture depends largely upon the decision of the Government as to the maintenance of intra-territorial steam-ship services.

Your Commissioners further consider that, before any decision is arrived at as to the suggested erection of a new workshop, a detailed scheme should be prepared, instead of the present piecemeal method of acquiring machinery and equipment, and the necessary accommodation in which to house it.

. .

UNAUTHORIZED OccuPATION oF CRoWN LANDS.

The Commission made inquiries under this heading, and ascertained that there are twelve known cases of unauthorized occupation of Crown lands by private individuals. The fa cts as recorded were examined separately, and it would ,appear that in very few instances is there reason to believe that there was a deliberate attempt to obtain possession of lands to the prejudice of the Government.

Nothing was discloood to show that the original native owners had been unfairly dealt by.

The Commissioners are of opinion that the civil Government to be established may be left to take such in each case as will be consistent with the land policy of the future government, and as each case individually merits.

·where it is evident that the land regulations as to form of areas or otherwise have not been complied with, the Civil Government may be expected to require such readjustment of boundaries as wm, if the settler is confirmed in possession, place his holding in correct conformity with the law. . ,

(Sgd.)

(Sgd.)

(Sgd.)

(Sgd.) H. FARRANDS, Secretary.

Melbourne, 8th December, 1919.

J. H. P. MURRAY, Chairman.

ATLEE HUNT.

WALTER H. LUCAS.

Perused and transmitted to the Right Honora the Prime Minister.

(Sgd.) R. M. FERGUSON, Governor-General.

16t.h December, 1919.

Report by Majority Hunt and

•

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of Commission (l\1essrs. Atlee Walter H. Lucas).

CHAPTER I.

ORGANIZATION OF A SYSTEM OF GOVERNMENT FOR THE MANDATED . TERRITORY.

1561

Your Commissioners, in considering the first question submitted to them, viz., The Mandate h ' ' f f · d · h h f h not yet Issued, t e orgaruzat10n o a system o government m accor ance W1t t e terms o t e Mandate, have felt themselves at some disadvantage from the fact that the precise terms of that document have not yet been announced. They have assumed, however,

that the effect of the Mandate will be to give the fullest powers to the Commonwealth Parliament to pass such laws for the control of the Territory as may be thought necessary, in the same way as if such Territory were definitely made a dependency of Australia. They have had before them the Peace Treaty, together with the correspondence TermsotPeo.ce

between the Allied Powers and the German Government which is complementary to Treaty. the Treaty, and, for the sake of convenience of reference, they append hereto a reprint of such portions as have a direct bearing on the relation in which Australia will stand towards the Mandated Territory.

Under this heading, your Commissioners have divided their remarks into three sections, in which they have set out-first, their opinion that there should be a separate Government for the Mandated Territory, and the reasons for that opinion; second, the effect on the natives; and third, the nature of the organization required for its government.

SECTION I.-NEcESSITY FOR A SEPARATE GovERNMENT.

In their opinion, a separate and distinct Government should be created to control Separate h M d d T

. Government

t e an ate erntory. . advocated.

They have given the fullest and most careful consideration. to the memoranda which were transmitted to them with Your Excellency's Commission, the effect of which was that, in the opinion of the Minister for Home and Territories and the Lieutenant­ Governor of Papua, the Mandated Territory should be immediately amalgamated with Papua and governed under one administration; but they regret that they are unable to come to the same conclusion.

It is not without much regret, and only after the fullest possible consideration, Commissioners that they venture to differ on point from their Chair.r_nan, for whose knowledge and experience have the most su;cere but they thmk that he has

the difficulties to be overcome m estabhshmg the new Government, and has failed to take into consideration some important variations between the conditions of the two Territories, notably those arising from the very different composition of the non-native populations. In Papua there are practically none _b_ut British subjects; in the

Territory there are at present, apart from the Military Forces, only a few Bnt1sh, but many Ge.rmans, Chinese, and Japanese. Your Commissioners, although they firm in their conviction that, for the The Territories G · · 1 · have much In near future at any rate, a separate overnment IS essentla , recogruse. that the two common.

Territories have many aspects in common, and they accept as a principle that there should be no material differences in the methods of government or the character of the laws in force. Amalgamation at some future date, or, at any rate, and ·perhaps preferably, a close federation, should be the goal to be constantly kept in view, and the

courses of progress of both Territories .should be, and . believe can easily be, so directed that they should travel on consistently convergmg hnes. ·

Differing legal systems.

24

Immediate union would involve the adoption of all the Papuan laws and the cancellation Qf the whole legal system under which the Mandated Territory has grown up. Even if the Papuan laws were in every respect superior to those now in force in the lVIandated Territory, a hypothesis which cannot be admitted, so complete a change, changes effected instantaneously, could only . create confusion. In the opinion of your

Commissioners, it would be far more practicable to take the Mandated Territory it

stands and mftke changes gradually after fr·equent and close conferences, under the

Difficulties expected if German residents remain.

guidance of the lVIinister, between those responsible for the administratio.n of the two Territories. This course would, they are confident, tend greatly to the Improvement of both systems of government. At present the fundamental bases of law in the two Territories are different; in

one they consist of the German codes, in the other, of the British Comn1on and a number of Queensland Statutes, supplernented or modified in each 'instance by local Ordinances. Systerns and rates of taxation are different, and the financial positions . vary widely. ·

If the present German residents are allowed to remain they will, for a considerable time to come, form the maj-ority of the European populatioJ!-, and it-would create much doubt and uncertainty if an alien system were suddenly imposed on them. Even without regarding the convenience of the Germans, consideration must be given to extensive Australian interests which have grown up and which are based on contracts and agreements framed under the laws hitherto in force. In time the British system must prevail, but it would seem wiser to require that any movement towards uniformity should be gradual so that the full effect of each separate step can be considered before it is taken.

If the Germans, or the bulk of them, are allowed to continue in occupation of their present positions as missionaries, traders, or planters, the Government must expect to be met with continued hostility, veiled perhaps, but none the less manifesting itself in the creation of embarrassments for a Government which, though tolerated, will be They will form a solid and influential party, outwardly perforce deferring to

British control, but in national and commercial sympathies entirely alien, The psychology of the German is ·now well understood, and there appears no justification for hope that these men, who are known to have rejoiced at every German success during the War, will so change their natures as to be willing to render that loyal co-operation that will be necessary for the success of the new Government.

If, therefore, the Germans stay, they must be carefully and constantly watched over by a keen administrator, located always among them, and not usually at a remote centre or an1ong them only for a limited time. Difficulties if If, on the other hand, the Commonwealth decides to take advantage of the powers

German residents are of expropriation conferred by the Peace Treaty (and the correspondence between the repatriated.

Difficulties in regard to · German missions.

Allied Powers and Germany in regard to the German objections seems to indicate that it is expected these powers will be fully utilized), the task of finding suitable persons to whom the interests at present held by Germans can be transferred, and the establishment of such persons in their newly-acquired estates, will be a task of such · magnitude, and will extend over such time, as to make it inevitable · that the new

Government must be located in the centre of affairs and must be able to give its undivided attention to this important and difficult labour. It ,is true, as is pointed out by the Chairman _in his separate Report, that the decision on the question of repatriation of the Germans and also on other important points, e.g., nationalization of enemy-owned plantations and the establishment of a Co1nmonwealth line of steamers, is a matter for the Government of Australia, and not for the local administration, but it is in the execution of these decisions that we forese: c.ontinuous difficulties requiring the exclusive attention of a separate organiza twn.

For instance, there is the important subject of the German Missions. It iB provided in the Article 438, that the property of the Missions, i;nclq.ding that of trading societies whose profits were devoted to tp.e support of missions, shall continue to be devoted to missionary purposes, and that such property shall be handed over to Boards of Trustees, appointed by or approved by the Government, and composed of persons holding the faith of the mission whose property is involved. The Government, however, maintains full control as to by whom

missions are conducted, ' · ·

25

This creates a position ·entirely different frmn that existing in Papua, the missions consist of British or allied or neutral subjects, and work on their own lines' on most an1icable relations with the Government. The establishment of these Boards, the transfer of properties to them, the methods _of working as between the Boards and the Government and the Boards and the Missions,

will present a series of problems entirely novel and with many possibilities of friction and discontent.

1563

Of the total male and female European mission staffs in the Mandated Territory, . numbering 258, no less than 221 are Germans. They are under the control of Societies-Roman Catholic and Protestant, and are widely scattered throughout the Territory.. There are no accepted spheres of influence for the different bodies as in Papua, but representatives of both faiths are sometimes stationed in clo·se proximity

to each other. The Roman Catholics are the more numerous; the Mission of the Sacred Heart has a staff of 121 whites (44 priests, 40 brothers, and 37 sisters), and_ 204 natives (121 males and 83 females). It operates in the Bismarck Archipelago and the Admiralty and smaller groups ; the Catholic Mission of the Holy Ghost, an off-shoot of the Society

of the Divine Word, which has its head-quarters at Steyl, in Holland, near the German border, works on the mainland of New Guinea, and the Marist Mission, the smallest of the three, deals with the islands of the Solomon Group. _Bishop Couppe, himself of French origin, has been in charge of the Sacred Heart Mission since 1889 ; till 1904, m.ost of his missionaries were French, but thereafter, in compliance with the desires of the German _Government, houses of training for the Society were established in Germany, and now the staff is almost wholly German.

The Holy Ghost Mission is completely German. The Marist Mission, which is much smaller, is staffed by French or other friendly nationals. The Protestant Missions, i.e., the Neuendettelsau, the Liebenzell, and the Rheinische, are wholly German, and the Methodist Mission is at present largely so. -This latter body, which is controlled from Australia, was also obliged by the Germans

to substitute a proportion of Gennan for British or Australian missionaries, but it is understood that they contemplate reversing this process at an early date. Bishop Couppe, in a memorandu1n addressed to the Commission, urges that he R eq:uestto h ld b 11 d k II h · G d A · · · · d · ret am German s ou e a owe to eep a IS erman an ustnan misswnanes, an to Jncrease missionaries. their number according to the needs of the Mission. He states that even if the

Government allow him to keep all his German missionaries actually on the Mission, but prohibits hiin for the future from receiving new ones, the Mission would be unable to maintain its actual work, and would be condemned to instant ruin. He maintains that he will be unable to recruit non-German missionaries before ten years.

Similar desires as to retention of German missionaries were verbally expressed by the head of the Holy Ghost Mission when seen at Alexishaven. The relation _ of these missionaries towards the natives requires special · · Th h b f k · d · · f . of misswnanes consideration. ey ave. y years o wor acquue a positiOn o great Influence over to natives . these simple folk, and it is a question whether this influence will be exerted for or against

the interests of the Australian Government. ·

Bishop Couppe states that it would not be justifiable to question the loyalty Loyalty of of his German missionaries, either as to the past or the future, and points out that they are obliged by their avocation, and under pain of ecclesiastical sanctions, to sacrifice their patriotic or national feeling for their spiritual mission.

Your Commissioners appreciate to the full the devotion which has induced these men and to ?onsecrate to mission work, involving liv:es of hardship

in a land of exile, In often uncongemal and most unhealthy surroundings, but they cannot fail to remember that they are Germans, and that some of their colleagues have had· to be interned in consequence of their actions since the military occupation. It is doubtful whether, even with a desire on the part of those who remain to conform to the high principles of their church, there will not be a strong alien feeling which would lead them to place before the natjves the mo t unfa orable construction on any action

of the Government. If, despite what the Bishop says, there are typical Germans among then1, it is to be expected that such will only accept t he defeat of Germany as temporary, and, with characteristic will do all in their power to rebuild the fallen fortunes

26

of their Fatherland, commercially and politically. As mentors of the natives, they will have innumerable opportunities of working insiduously against Britain and Australia, discrediting the administration, impugning its justice, instigating native disaffection and unrest, to prove the inefficiency of the new regime and the native dissatisfaction therewith. our relations The consequences as regards our relations to the ·League of Nations ar;td our to the League of Nations. Allies and to neutrals would be most serious, and it appears that so long as German

missionaries are in a position to form a strong German outpost, ready to consolidate old and establish new interests, with full knowledge of all local conditions, and their activities cloaked by their missionary garb, Australia will be unable to transform the Mandated Territory into a peaceful harmonious and prosperous colony of the Commonwealth.

Your Commissioners have set out this position regarding the German missionaries at some length, not with a view to influencing the Government in their decision on the main point, but rather· as an argument to show that, whatever that decision may be, whether it be that the Germans should stay, or be subjected to early repatriation, or repatriation extending over a .fixed term for the purpose of filling vacancies with British or allied nationals, the task of the local administration wiJI be such as to require the closest and most continuous supervision by an efficient and alert Government, able to concentrate all its energies on the problems of the Mandated Territory. ·

German traders Another matter which will involve the local Goyernment in operations extending

and planters. over a considerable time and requiring the closest attention, will arise if the decision

of the Govermnent regarding the other classes of the German population is that they, or some of them, should be repatriated. There are 140 Gern1ans, in a total of 197 male settlers and planters, and 61 in a total of 83 men engaged in business and trading; many of these have their wives and children living with them.

Your Commissioners have no reason to assume that Germans who are traders or planters are more favourably disposed towards Britain and Australia than are German missionaries, and much of what has already been said regarding missionaries applies equally to other Germans, but the planters viewed industrially are, as a rule, steady and hardworking settlers, and it may be worthy of consideration whether in the commercial interests of the Territory, a certain number should be allowed to remain. An Aliens If a policy of repatriation is decided upon, it is suggested that the Government

should establish a Board to which all who desire to -remain should have the· right to

appeal. Such Board might be constituted on the same lines as the Aliens Boards in Australia, and it might be well to take advantage of the experience gained on such Boards .and appoint members who have served thereon to this tribunal. · Applicants for permission. to stay should be obliged to show that their conduct during n1ilitary occupation has been beyond reproach, and that there are special reasons why an exception to the rule regarding repatriation should be made in their favour. Their application should also contain a formal undertaking that they will agree to abide loyally by such conditions as may be imposed on then1 if their applications are granted. Obli gations on . Should the tribunal decide in their favour, such undertaking might be solemnly Germans a.llowed d d . h f f th t . h d' . h' h h ld

to remain. recor e 1n t e orm o an oa se t1ng out t e con 1t1ons w IC t ey wou agree to

observe, e.g., loyalty to the Government, complete abstention from any words or action tending to affect the minds of natives injuriously to the Government, &c. Power might be taken to expropriate and deport any of them who are subsequently proved before the local court to have departed from their obligation.

The Government will probably take into consideration whether such Germans as are permitted to stay should be required to formally renounce their German nationality . . Such renunciation would leave them without a country, and it may be considered wiser to defer such renunciation until the Government is in a position to admit them to British nationality. It would, it is submitted, be unwise to confer naturalization at an early date, as difficulties might arise regarding the

of such, if any, as are proved false to oath.

The Papuan It is assumed that the Lieutenant-Governor of Papua and his Executive Council Government • h 1

and the new have suffiCient to occupy t em at present, and top ace on the shoulders of a few men, Territory. f h h 1 k l d f h d

most o w om ave no persona now e ge o t e new country, an who are located

far away from its centres of administrative and commercial activities, the added and

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heavy burdens involved in the transfer of a military into a civil organization, the substitution oi a British for an alien population, and the re-organization of a financial system, would be t o ask them,_ to do more than they could be expected fajrly to undertake, and so to invite disaster.

The Legislative Council of Papua consists of six officials and three private persons who have business interests in that Territory. It is considered that these gentlemen would not be a suitable body t o advise regarding the laws of the Mandated Territory, which, though in some rBspects similar, is in many respects different from that where they reside. The British residents of the Mandated Territory would not regard themselves as adequately represented by such a Council, evenif strengthened by the nomination of some of their own number.

1565

The present seat of government of Papua is in Port J\:Ioresby, on the south coast, Port t 1 h f h T · · d h • 'fi · f not smtable as a spo centra enoug or t at erntory, an t 1ere appears no JUStl catwn or c apital. suggesting its removal. It would, however, be a highly inconvenient place from which to govern late German New Guinea. Seeing that at present the latter colony is further advanced than Papua in regard to production and business generally, it would be penalizing the· ·more important colony to require its inhabitants t o proceed to Port

Moresby whenever they had business requiring personal interviews with the principal Government officials. " T ireless facilities are not an efficient substitute for direct sp eech. Especia)ly in the transition period the need for frequent conferences between business men, planters, heads of missions , and the Government will be urgent and constant.

Under Ge:o:nan control, the development of the Mandated Territory proceeded ·wholly on agricultural lines, and the results are that the area under coconuts, the present output, and the probable output for the next fe w years are greatly in excess of those Terntorles. of Papua. It is true that mining in Papua is more advanced, but in the Mandated

Territory, mining possibilities have hitherto been practically ignored. It is understood that certain exploring expeditions gave some attention to the search for minerals, but the results have not been disclosed. It has been stated that the Germans were unwilling to do anything to promote prospecting for gold through the fear of incursions of miners from Australia, possibly in large numbers;· whether this was so or not, the fact remains that mining was in effect non-existent. Butthere is no marked divergence of geological conditions, and there is no reason for believing that, given active co-operation on the part of the Government, the results from the .mining enterprises of the Mandated Territory may not within a few years equal those from Papua.

The alluvial deposits of . Papua, so far as they are known, have been almost worked out. Those of the Mandated Territory, which surely exist , are untouched; their exploitations at an early date may speedily bring the m.ineral production t o a level with that of Papua. It would, it is submitted, be unfair to the Mandat ed Territory when comparing their present conditions, to neglect this most likely contingency

Rabaul is geographically not the centre of the Mandat ed Territory, but it Rabaul.suitable central so far as the areas are concerned, it has a perfectly safe harbor, is for capital.

equipped with stores and wharves, all the buildings necessary for t he services of the central administration are already there, it is at present healthy and may be kept so with moderat e expenditure, in short, it is admirably adapted as a capit al for t he new Territory.

The very scattered character of settlement hl the Mandat ed Territory presents difficulties to the existing adminj stration which will be substantially increased if the policy of amalgamation is decided upon. Really fa st steamers, even for the administration, cannot be on account of the relatively high coal consumption needed to obtain speed, and the great cost of coal and upkeep. The amount of time lost in transit must under any circumstances be great, and, if the Governor has to make frequent visits to and from Port Moresby and R abaul, which will be essential unless the important personal side of government is to be largely neglected, a great deal of his

valuable time will be wasted in mere travel. It is one of the provisions of the P eace Treaty that in every case of mandat e, Annual the Mandatory shall render to the Council of the League of Nations an annual report of in reference to the Territory committed to its charge .

If the suggested amalgamat ion is adopted, it must be real and not merely nominal ; the combined Territories must be .t reat ed as one whole and no distinctions made between them; natives from any one part must be allowed t o be recruited fo r any other part;

28

there must be freedom of intercourse so that the Chinese and Japanese now in the Mandated Territory may have access to Papua, which has hitherto excluded such people; and all revenue and expenditure must be pooled. In these circumstances your Commis­ sioners do not see how it will be possible to present to the League of Nations an annual report which will give all the facts necessary to enable the Council of the to ascertain the real position of the Mandated Territory. Enemy agents will be to find faults with the manner in which Australia exercises her Mandate, and they will undoubtedly utilize the fact that Australia has so interwoven the business and statistics

of the Mandated Territory with those of Papua as to n1ake them indistinguishable, as an argument to :prove that Australia is not giving the League of Nations those opportunities for scrutiny and criticism to which the Council of that body is entitled. Possible decline in prosperity.

In his memorandum, which was supplied to the Commission, the Lieutenant­ Governor of Papua as a probable sequel to the institution of British rule,

that there will be a decline in the prosperity of the Mandated Territory. He considers that there will be an increase in the wages of native labour, and a consequent check to development ; that the number of indentured labourers, now approximately 20,000, will, in consequence of newly ascertained knowledge that they need not go to work unless they want to, diminish perhaps to 10,000, ·unless there is an increase created by the extension of Government influence, the degree of which increase it is impossible to conjecture; that planters may be in great difficulties about labour, and some plantations may even be abandoned. · Although some disturbance of industrial conditions is possible, your Commissioners do not share the forebodings of Judge Murray. During the last four years, while the natives have been under British rule, they have become accuston1ed to the idea that enlistment as labourers is voluntary and not compulsory; but they are signing on as freely as ever, and further, the opening up of the hitperto untouched regions will, as has happened in Papua, make available extensive additional supplies of labour.

Position of British Solomons.

What will be effect on natives.

The present wages of native labourers in the Mandated Territory are fixed as to the minimum by law at 5s. per month. In Papua there is no legal fixed minimum. The law requires that a "fair remuneration" shall be paid; in practice this is usually lOs. per month. In addition the employer in both cases finds food, tobacco, clothing, blankets, shelter, and medical treatment. Roughly the cost per head to the employer in the Mandated Territory is ls. p,er day, including everything. If the minimum rate be raised to that prevailing in Papua, the cost to the employer will only be increased by about 16 per cent.

It will be the duty of the new administration to watch for any signs of diminishing prosperity, and to take such action as seems expedient to remove its causes; the mere possibility, however, of the contemplated serious set--back to productivity appears to render it all the more necessary that the new administration should be centred in the Mandated Territory, and should be able to give its undivided attention to its affairs.

A further argun1ent in favour of a separate administration for the Mandated Territory is found when considering the position of the British Sqlomon Islands, which is dealt with at length in our remarks on paragraph 1 of Your Excellency's·Commission.

It cannot, we assume, be contended that they also should be amalgamated with Papua, but, if the suggested system of separate administrations is approved, they could readily be absorbed into such a scheme of a working federation as is outlined later in this Report.

For these reasons, therefore, your Commissioners .consider that it is essential if the Mandated Territory is to be efficiently governed, that the system of government to be established should be entirely separate from that of Papua.

SECTION IL-THE EFFECT ON THE NATIVES .

. · When the of the the differing

VIews held by your CommiSSIOners, the first question which Mimsters Will ask is how will the natives be There. probably no more potent in inducing the Allied

Powers to reqUire the renunCiation by Germany of her Colonial possessions than the records of the t!eatment of her coloured su.bje?ts, ar:d in all deliberations in regard to the Mandated Tern tory, the welfare of the native Inhabitants must be the first consideration.

29

Your Commissioners have not felt it necessary to labour the point that Colonial administrations throughout the British Empire have evolved a system of native control, in which the main feature is the fatherly supervision of the interests of the natives, who, contrasted with the more highly-civilized whites, are comparatively helpless"

They regard it as axiomatic that the new Government under either system will adopt the best and most humane principles of native treatment; they consider, however, that the adoption of these principles is consistent with the promotion of industrial enterprises tending to the benefit of the whole community.

The uplifting of the native, his_ instruction in sanitation, in improved methods of housebuilding and cultivation, and in the art of using tools, together with education in the rudiments of general knowledge, are a1l matters that will make him more useful whether he elects to work on his own account or for ' white employers. The gradual evolution of the native from being a mere chattel of an employer to becoming an asset

of the State is what your Comn1issioners understand by promoting the welfare of the natives, and they have the fullest confidence that this welfare can and will be completely safeguarded under a separate administration. .

. The policy regarding natives hitherto followed in Papua is not exclusive to that Territory. It is a general British policy which has been adopted by the Australian Government, and has been applied in Papua by Australian officers selected by that Government and in constant and close touch with the central administration. The new Government will be under· the same central control ; its officers will equally be Australians, and Y

even as a possibility, that those officers should be animated by different instincts or guided by different principles from those which animate and guide their brother officials in Papua.

1567

It appears to be thought, because German principles pervaded the native adminis- Influence of tration of this Territory while it was in German hands, that these principles have, so to native speak, poisoned the air, and that future heads o£ Government must become infected by then1. An argument to support this theory is dtawn from the fact that those officers · who have been in charge since the occupation have made few drastic changes of native

policy, and that it is therefore likely that future administrations will carry on in a similar manner. This argument cannot be accepted, because the control which has been exercised. by the Australian military authorities has been very different from that exercised, say, in Papua or the British Solomons, where the Australian or British authorities have a perfectly free hand to legislate as they please, to n1ake, amend, and rep · eal laws as Li_n:itations on

·· · ·f r ·h A 1· C d h b m1htary power. cucumst-ances seern to JUSti y. e ustra 1an omman ants ave een bound by the terms of the capitulation, one of which was " during the said military occupation the local laws and customs will remain in force so far as is consistent with the military situation." The laws and usages of war deal fully with the practices to be observed by an arn1y in occupation of a conquered Territory, and they prescribe-

" If demanded by the exigencies of war, it is within the power of the occupant to alter or suspend any of the existing laws, (b) or to promulgate new ones, but important changes can seldom be necessary, and should be avoided as far as possible."- Mannal of Mili tary Law, 1914 Ed., p. 290.

It was, therefore, not merely natural, but it was the bounden duty of the Military Ad1ninistration, subject to war requirements, t o carry on the existing laws and principles of government as they found them, but it will equally be the duty of their civil successors to scrutinize these laws and principles with t he greatest care, so as t o eliminate all provisions which are nqt in full accord with the well-being and development of the natives, which, as a sacred trust of civilization, the allied powers have authorized Australia to supervise on behalf.

An illustration to disprove the assertion on which the argument is based is Abolition of afforded by the fa ct that early in t he period of occupation t he military authorit ies strained noggmg. their legal authority and abolished t he German practice under which employers wer e allowed to flog their native employee . The right of inflict ing such punishment was then rigidly limited to certain specified Government officers, but , later, even that was

done away with and the practice of flogging natives was entirely abolished.

30

This action ca:iJ. hardly be said to have been "demanded by the exigencies of war," but it was an instance where the }..ustralian authorities were so strongly influenced by humane considerations in regard to the natives that they refused to .allow the letter of the law to stand in the way of ameliorating their conditions.

If there is any fear that the continuation in residence of German missionaries, traders, and planters would influence the new Government in favour of Ger:rp.an methods, it would seem to be an additional argument in favour of the removal of all Germans from the Manda ted Territory.

SECTION ITT. - THE ORGANIZATION oF THE GovERNMENT.

If the Goyernment adopt this recommendation and decide · to establish the

Mandated Territory under a separate Govern1nent, the first step to be taken will be to appoint an Administrator. The man chosen will need to possess organizing ability and 1nuch tact and patience, for therewill be many difficulties in his path which cannot be foreseen as well as those which are. apparent from the outset. It will be essential

An Executive Connell.

t hat he should be fully trusted and given extensive powers. He should, as in Papua, have the advice and assistance of an Executive Council of his senior officers, but should be free to act independently of that body, or even in opposition to its wishes if he deems it necessary so to do, reporting all such cases to the Minister. The present At present there is a fairly complete Government organization in force; it is

organization. staffed by men bearing the titles and wearing the uniforms of soldiers, but entirely

Care needed in choosing officers.

Good salaries essential.

engaged upon civil work. Many of these men have displayed energy and ability in the discharge of unaccustomed duties ; · but speaking generally, the staff cannot be regarded as ideally fitted for the functions its members have to perform. Some of - these men will desire to remain, but they were appointed to their-present posts temporarily

without any prmnise as to the future, and it would seem fair to returned soldiers generally to give them a chance of being considered for the permanent Civil Service of this Territory. It is, therefore, recommended that advertisements be issued in regard . to all positions to be fill ed so that all returned soldiers, -whether their service has been

in France, Gallipoli, Palestine, German New Guinea, or elsewhere, may have an equal chance to apply. The first appointments might be made by a Board to consist of the new civil Ad1ninistrator when appointed, the present l\1ilitary Administrator, and the Secretary, H ome and Territories Department. It would be an instruction to such Board that preference 'in all cases should be given to ex-soldiers except where special professional skill was needed which could not be found in their ranks.

Your Commissioners attach great importance to the first selections, especially for the higher posts in the Service. It is essential that the men chosen should make the Service their life occupation, and that they should not take th'ese positions merely for a temporary change of occupation or as a stepping-stone to something else outside.

Continuit y in administration is a necessary factor in efficient government. There is nothing which detracts more from a firm and capable administration than frequent changes. This is especially the case in regard to those officers who come into direct touch with natives with whon1 the personal relation is always important.

In order that the Public Service should attract good men, and be able to retain then1, it will be necessary to offer them adequate salaries, and insure their future by 1neans of a generous system of superannuation The experience of all

tropical dependencies confirms the wisdom of making such provision. The climate of the Mandated Territory is not worse than other places similarly situated, but with its perpetual enervating heat and constant to fever, the problems connected with the residence of won1en and the rearing and education of children are such as to make unduly heavy de1nands on the purses of men receiving limited pay. . Methodofraising Your Commissioners advocate that the rates of pay of officers of Papua and

a fi eld staff. the Mandat ed Territory should be assjmilated and a joint system of recruitjng for the

permanent Service should be devised, under which a separate field staff will be built up by means of cadets, who should be young. men of good education, prepared to enter the Service as a career for life. They should be carefully selected on personal as well as educational grounds, and should serve a period of probation of not less than one year in the central admjnistration, after which they ·should be placed under the direction of District Officers. They ought to serve at least a year before being intrusted

31

with direct and independent control of police parties. In the opinion of your Commissioners, harm has been done in the past by reason of men without experience and local knowledge being placed in positions of responsibility where native lives are involved. This has, perhaps, been inevitable during late years, but is nevertheless a possible source of injury and injustice which should be removed as early as practicable.

156

The Service will be divided into two parts-the Central . Administration and the Departments Field Staff. In the· former, which should be centred at Rabaul, there will be the necessary. · ordinary agencies of governn1ent, divided into departments, of which the principal will be-

Administration Departn1e nt- To supervise generally; to communicate with the Minister; to control the Public Service, appointments, promotions, &c. ; to direct all operations of district officers ; to deal with all native affairs, audit, &c. Law Department--Judicial work generally ; legal advice for Government.

Lands and Survey-Administration of land laws, surveys, road construction. Treasury-Control of public funds; medium of all payments. .

Customs and Taxation Department-Collection of revenue raised by direct . or indirect taxation. Commercial and Marine Department-Control of Government inter-island steamers (conditional on inter-territorial steam service being maintained

as Government enterprise), wharfs, shipping, Government stores, posts, and .telephones. Public Works-Erection, maintenance, and repair of public buildings. Public Health. Agriculture.

It is not necessary to discuss these in detail, but your Commissioners invite attention to several matters of outstanding importance.

. In connexion with the Law Department, it has been the practice for the principal The Law . legal official to act as adviser to the Government on legal matters, and also as an adviser Department. of the gerreral public. The latter duty has no doubt been forced upon him owing to the peculiar conditions of the military occupation and the fact that there have been no private legal practitioners, but . it obviously cannot continue. It is suggested, notwithstanding that the practice of the Judge acting as legal adviser to the

Government is in force in Papua and the Northern Territory, that it is unsound, and should be terminated, and the Judge left absolutely free for the exercise of his judicial duties -as are Judges in Australia. ·

An important duty devolving on the Government will be to initiate a system of vocational training for natives. In the past all manual work involving any skill for or training has been performed by a few whites and a substantial number of Chinese ; it will presumably be the Government policy to refuse admission to further Chinese, and the expense and difficulty of securing suitable white men in adequate numbers will be such as to make their employment prohibitive, except for special work. The development of the natives should be one of the n1ain purposes of the administration, and those qualified to judge are of opinion that a considerable and increasing number of natives of the Mandated Territory have sufficient intelligence to permit of their learl\ing most ordinary trades, and acquiring sufficient skill to enable them to do the bulk of the work required. It will be necessary to secure a lhnited number of white tradesmen as teachers,

and if these men are tactful and patient the results of their work will be evident within a very few years.

The existing missions have at a few stations made some progress in the direction indicated; the results are encouraging, as proof of the capacity of the natives, but when the Missions succeed in training boys they naturally desire to retain their services for t heir own work. They have not made industrial training a prominent part of their educational

system, and have only applied it incidentally for the development of their own industrial enterprises.

Your Commissioners attach the greatest importance in the interest of the natives themselves to affording them opportunities of acquiring knowledge, which will make them competent to do valuable work and earn pay which will give them the means of procuring a substantial livelihood.

32

Medical care of natives.

Under the Department of Public Health will be placed the responsibility of the medical care o£ natives. Hitherto something has been done; native hospitals exist to which cases be brought; all plantations of any size have hospital accommodation, and their labourers are cared for either by private arrangement with qualified medical men in the Government service, or else by trained but practically useful men, but much more can be done under an efficient adminis-tration. Your Commissioners recommend that it be made a condition that all future appointees to medicalposts in the Territory should be required to undergo a course at the Institute of Tropical Medicine at Townsville, so as to obtain more knowledge of diseases peculiar to the tropics than is possessed by the practitioner who has worked in temperate climes only.

Agricultural experts.

Intra­ territorial steam service.

Work of district officers.

The main industry of the Mandated Territory is, and must continue to be, agriculture, and the great bulk of the land planted is under coconuts. There are many diseases which affect this particular crop, and some of them are of a, specially devastating character. Seeing that the commercial interests of the Territory are practically dependent on coconuts, it is essential that the Department which is to assist planters, many of whom will be men without expert knowledge, should be possessed of all the available scientific information regatding the cultivation of coconuts, and especially of the diseases whicp_ affect them. It is therefore recommended that one of the earliest appointments be that of a highly-qualified expert, and it is suggested that inquiries he instituted immediately in Ceylon, Malay States, and the Philippine Islands, &c., for the purpose of securing a competent to impart instruction, to diagnose diseases, and direct measures for their

extirpation, and to conduct research work. ·

The establishment of a Commercial and Marine Department is only recommended on the assumption that the present practice in regard to intra-territorial service is to Before the war steamers belonging to private companies maintained the

connexions between Rabaul and the outports; these vessels were saized by the Government in 1914, and have since been employed doing similar work to that on which they were formerly engaged. They carry supplies from Rabaul, which at present is the chief distributing centre, and bring back copra, &c., for despatch overseas. This business is one rather for private enterprise than the Government, but during the war shipping business generally has been so unsettled, and. the future of the colony was so uncertain, that it was inevitable that the administration should maintain this service. Excluding certain large sums- paid for unusual repairs the accounts show a moderate profit.

When normal conditions return, however, and competition is introduced, it may become difficult to maintain this profit; encouragement will doubtles-s be then given to private persons to take up the whole of this trade ; but it is essential to maintain the services, and in the event of no individuals or companies coming forward to carry out the work, it will be necessary for the Government to continue on present lines.

The central departments will be situated in Rabaul, but a great part of the actual work of government falls on the of the district officers. These correspond to the Resident Magistrates in Papua; they are appointed to look after particular districts and generally to represent the administration therein. They come directly in contact with the natives, they patrol their districts, and become familiar with all the villages; it is an important part of their to improve the living conditions in the villages by insisting on better houses and Improved sanitary -arrangements. They collect the native taxes, and are responsible for the arrest of criminals and the preservation of _ order. It is to them that recruiters :tnust bring those natives who have agreed to sign labour

engagements, and it is incuinbent on them to see that the native fully understands the nature of his contract. They must supervise plantations in their districts aad see that the conditions imposed by the law are observed, and that no ill-treatment of t:mtive labourers is tolerated. They will be intrusted with the task of extending the influence

of Governinent into regions where it has hitherto been unknown. They win collect such revenue as must be paid in their districts, and, acting as Magistrates, will 'try all minor offences and civil causes.

It will be seen that the position is one of responsibility calling for constant work and of 1nuch The care, therefore, must be employed

in theu selection, and once a pp01nted to a distrwt they should not be moved unless for good reasons. As their personality must play a strong part, especially in creating

33

and maintaining the best possible relations with the native tribes, it is i1nportant that their people should have full opportunity of becoming thoroughly acquainted with them and of establishing conditions of mutual knowledge and trust.

1571

When the Administrator and the principal public servants have been appointed, The and the Executive Council has been constituted, the question of a Legislative Council counciL n1ust be considered . It is presumed that it will consist, as in P apua, of the Executive Council, supplemented by certain unofficial members.

As these unofficial members are to represent the ci vii the character

of the appointments and the methods of selection must depend largely upon how that civil population is to be constituted. By last available records, exclusive of persons in military service, there were 910 Europeans in the Territory. J apanese have the status of Europeans there, and are . included in that tot al to the number of 92 (67 rnale adults, 22 fem ale adults, and 3 children). There were ·66 British ( 40 adult males, 16 adult females, and 10 children). The preponderating race is German, numbering 680 (384 adult males, 150 adult females, and 146 children).

. The Govern1nent will, doubtless, decide at the earliest possible date on the policy Early th ' b d d d' h G · ' as to Germans at 1s to e a opte regar 1ng t e erman residents. advisable.

Under the Treaty, the Government exercising authority over the Territory may make such provisions as it thinks fit with reference to the repatriation of German nationals and to the conditions upon which German subjects of European origin shall, or shall not, be allowed to reside, hold property, trade, or exercise a profession in them.

That section seems to contemplate that some of these persons will be repatriated, but that others may be allowed to remain. The occupations of the 384 adult males are given as-missionaries, 145 ; settlers and planters, 140 ; and business and traders, · 61. The Government may decide-(a) to direct the repatriation of all Germ.n ns ;

(b) to direct the repatriation of all except such as tnay be able to show good grounds to an independent tribunal why they should be permitted to remain; (c) to repatriate all those with or dependent on trading companies which have their head­ quarters in Germany, leaving individual plantation owners and traders unaffected ;

(d) to permit· all Germans to remain. The matter is of the first in1portance, generally, as affecting the whole future of the Mandated Territory and, specially, in considering the constitution of the proposed Legislative Council. If alternative (a) is adopted, it is presu1ned that the places of the departing Germans will be filled by Australians who would with the other British

subjects now there constitute a body sufficiently large in the near future to justify a S'ystem of elective representation to the ext ent of, say, three members on the Council.

If alternative (b) or (c) is adopted, the number permitted to remain and consequently the number of v·acancies to be filled cannot at present be foreseen, and it would not be possible to say whether the number of British subjects would warrant the conferrjng of the right to elect representatives . If that community includes less than 150 adult

males, it would be preferable, as an interim measure, to leave the selection of the non­ official representatives to the Administrator, who would submit suitable names for nomination. If either (b), (c), or (d) is adopted, the Government will doubtless require such persons as remain to adjure their German nationality, and after a period of probation,

require them to apply to be naturalized as British subjects. In the meantime, it is presumed they should not be considered as possible electors and should not receive any special representation on the Council. For some time to come the Legislative Council will have a considerable amount

of ·work in establishing a number of new laws, and it is necessary in framing these fundamentalla ws that all interests concerned should be fully considered; it is important also that t his work should be entered upon as early as po sible. ·

The powers to be conferred on the Coun il should be analogous to those stated Powe rs of t he in the Papua Act of 1905 as conferred on the Legislative Council of P apua. These may be briefly sta.ted as follows :-

F.l334.-3

Full power to make all Ordinances nece. sary for t he peace, . order, and good · government of the Territory, excepting t hat Ordinances charging public funds may only be initiated by or with the approval of the L.ieutenant­ Governor, and that discriminatory import duties against the

Commonwealth may not be imposed.

Why Australia acquired the Territory.

Economy Important.

Cost dependent on

Cost of nationalization not provided !or.

34

The Lieutenant-Governor may assent to all Ordinances except such as he reserves for the assent of the Governor-G eneral. He may reserve any concerning which he has doubts, and must reserve such as deal with the disposal of public lands, native affairs, immigration, divorce, or other

specified matters. .

Any Ordinance, whether reserved or not, niay be disallowed. Though the Legislative Council will nominally have full powers, it would -be understood that the power of disallowance would be exercised to prevent any departure from the policy which had been agreed upon

as the common policy of both Territories.

CHAPTER II.

THE APPROXIMATE COST OF GOVERNMENT.

Your Commissioners have given this aspect of their inquiry the most detailed consideration as they recognise that it is the desire of the Government that costs should be kept as low as possible. At the same time, they consider they are correct in asserting that when Australia demanded that the Mandated Territory should be placed under the control of the Commonwealth, she was not influenced by questions of monetary profit or loss .

It was felt to be essential to the preservation of her safety and independence that the Territory, whose fine harbors and proximity to Australia made it an excellent base for possible hostile operations, should not be allowed to remain in, or to fall into, the hands of any potential enemy ; and secondly, it was desired to relieve the natives of the burden of oppTession and give them every opportunity and all possible assistance to elevate themselves in the scale of civilization.

If these two objects are achieved the purposes of Australia will have been fulfilled, but it is only natural that every reasonable effor t should be niade to keep the price to be paid as low as possible. The cost of administration will depend to some extent on the policy decided upon by the Government as to whether the Mandated Territory should be amalgamated with Papua or governed under a separate administration, but your Commissioners do not think that the difference of cost under either system, if any, will be sufficiently

material to affect the decision. The two Territories are sufficiently important to require that there shall be a central administmtion in each which can deal with all the general affairs of government without reference elsewhere, so that under amalgamation, if there is a Treasurer at Port Moresby, there must be a Deputy at Rabaul; if there

is a Collector of Customs at R.abaul, he must have a Deputy at Port Moresby, and so ·with all the Departments of Government. It is certain that good men will be essential in both Territories, and also that adequate salaries must be paid to attract such men to the tropical service. Taking, for example, the case of a Treasurer and Deputy Treasurer for the amalgamated Territories as against a Treasure!' for each Territory, it must be · assumed that any saving in the salary of a Deputy Treasurer would be counterbalanced by the Chief Treasurer expecting an extra emolument by reason of his wide domain. In short, the total of the two salaries would be approximately the same in either case. Arguments on these lines, therefo re, are dealing with differences that are more apparent than real. There is no reason for believing that a single additional clerk or policeman will be necessitated because the Administrations are separate rather than conjoint. Your Commissioners, moreover, are convinced that the much more effective administration which will be secured under the system which they recommend would amply compensate for the slight additional expense, if there were any.

A much more important fa ctor influencing the financial position of the Territory will be the decision of the Government in regard to repatriating the present German residents and the subsequent policy which is decided upon; if, for instance, the Government determine to acquire the German-owned plantations and retain them as Government enterprises, a complete organization of managers, inspectors, accountants,

&c., will be required in addition to the working staff. . S?me. organization -vvill in case Governlnent resolve upon

natwnahzatwn of the oversea sh1ppmg serviCes. No prov1s10n has been made in esti­ mating the general cost of administratio:r;t for eithei· of these enterprises, which may be

35

tega:rded as separate business undertakings of the Commonwealth Government, who must find the necessary capital and working expenses, bear the losses, if any, and appropriate the profits, less contributions to the local revenue to correspond to the amounts which that Government would have received in the way of taxation had these

undertakings remained in private hands.

1573

Provision has been made for running the intra-territorial steamer service, as that The intra · is now being carried on by the Government with steamers which they do not own but are using . Whether or not the maintenance of this service will be regarded as a proper function of government will be determined as a matter of policy. If the decision is that the Government shall carry it on, provision will need to be made by the Government for the capital necessary to buy the requisite steamers, for it cannot be assumed that the _present indeterminate position as to ownership will continue much longer .

The cost of the wireless service has been omitted. If it is thought that it should wireless costs. be maintained for defence purposes, then the excess of expenditure over receipts will doubtless be regarded as a charge fo r the general defence of Australia, and so not debited to the Territory. The service does not pay as a commercial undertaking, and cannot be

expected to pay. It is undoubtedly of advantage to the Administration, but it is questionable whether that advantage is so great as to justify the present high cost. If the expense is to be regarded as a charge on the revenues of the Territory, then the matter of maintaining the full service that now exists must be S8riously considered.

The statement annexed hereto has been prepared after a close examination of statement of returns of expendit ure under the present regime, but that is primarily military and not civil, and it has not been an easy task to eliminate those charges which arise out of the military character of the government, and will consequently disappear on the completion

of the work of transfer to civ:il control. The total cost is estimated at £169,000 per annum.. The salaries provided are higher than those which are at present paid in Papua, Good saiMies which, it is submitted, are inadequate, especially when t he present value of money is essentiaL considered and the expenses and hardships attendant on tropical life are taken into account. But it is urged that it is imperative, if good government is to be established and maintained, that the duties of administration shall be given to good men, and in our

opinion unless some incentive is offered which is comparable to that which may be obtained in civil life by reasonably competent m.en, officers of the requisite character and capacity will not be secured. · The statement outlines an approximately complete organization for the new schem: is

t h . h h . . t t f d "l fi l b "d bl tentatJvc onl y. governmen , w 1c , owever, IS no pu orwar as necessan y na , ecause co11SI era e latitude must be allowed to the Administration who will be responsible for carrying out the work of government. It is framed on a basis that will permit of expansion as needed, but the growth of revenue and progress generally will not require proportionate increases in the total expenditure, as all the additional assistance needed will be in the less highly paid ranks. The st aff, consisting of District Officers and their assistants, has been framed

with a view to its sufficiency for the work of expeditiously bringing the whole of the Territory under the influence of the Government . It will be observed that the details given in our estimates refer to salaries only. contingen cies. It has not been found possible to analyze the contingency expenditure to the same extent.

A lump sum has therefore been taken. This estimate is based on t he Treasurer's figures for the last financial after an arbitrary reduction representing the probable saving that will occur under a civil administration. The scales of pay adopted in our estimates are on the following basis :- scales of pay.

Class IV.- Cadets and Juniors, £240 to £300 . · , III.- Clerks and Junior Field Officers, £300 to £425. , H.-Senior Clerks and Field Officers, £450 t o £600. , I. -...:.H eads of Departments, £650 to £800 . In Class IV. increments should be annual, subject only to diligence and good conduct, £30 each.

In Class III. there should be three annual increments, £25 each, then two discretionary. In Classes II. and I. increments should be of £50 each and be discretionary. It would be a rule that unless for exceptional services a discret ionary increment

should not be awarded oftener than once in two years.

36

ESTIMATES OF COST OF CIVIL GOVERNMENT.

ADMINISTRATION DEPARTMENT.

Control of Administration Generally; Supervision qf District Officers, Native Affairs, · Public Service, Education, Audit, Police, Prisons.

HEAD-QUARTERS STAFF.

Administrator Official Secretary Privat e Secretary Protector of Natives Commandant, Native Police Deputy, Native Police Gaoler ..

School Teachers .. Instructional Staff, Native Technical Schools .. Clerks (6) Native Police (reserve and training)- 200 at £21, inclu-

sive of keep . . ,. .

DISTRICT OFFICERS.

Four firs t class stations-District Officer at­ Kokopo Kaewieng

Madang Kieta

Six second class stations- District Officers average 400 .. Assistant District Officers- 13 at £300 per annum Patrol Officers (late Cadets)-10 at £3 00 per annum Clerks-

First class stations, 2-8 ·Second class stations, 1-6 -14 at £300 per annum Medical Orderlies (1 each Station)-10 at £300 per

annum

Roadmasters and Carpenters (transferable)- 3 at £300 per annum Native Police (30 per Station)- 15 per Sub-station, S{LY 450, at average cost of £21 per annum ..

Chief Inspector Clerks

AUDIT BRANCH.

MOTOR TRANSPORT.

Chauffeur Mechanics-3 at £300 per annum

Total

L AW DEPARTMENT.

£1,800 650 350 650 400 350 300 700 1,200 2,100

4,200

£12,700

£550 550 500 500 2,400 3,900 3,000

4,200

3,000

900

9,450

£28,950

£450 900

£1,350

£900

£43,800

1. Administration of Justice (including P1·obate, &c.). 2. L egal Advising of Government, Registration of T itles, Intestate Estates, Court Records, &c. · Judge £1,000

Crown Law Officer 650

Clerks 700

Total £2,350

1575

37

LANDS AND SuRVEYS DEPARTMENT.

Administration of Land Laws, Surveys of Land, Surveys and Constructions of Road.r: and Bridges, &c. Controller of Lands and Surveys Surveyors-4 at £550 per annum Surveyor's Assistants at £300 Chainmen at £240 and £260 Draftsmen at £350 Clerks at £350

Natives (24) at £21 per annum Road Labourers (say at £21 per

Total

TREASURY DEPARTMENT.

£700 2,200 1,200 2,000 1,400 1,050

504 2,100

. .. £11,154

Control of P ublic Funds-Medium of all Payments. Treasurer Accountant Paying Officer

Clerks at £300

Total

TAXATION DEPARTMENT (INCLUDING CusToMs).

£650 450 350 900

£2,350

Collection of all Taxes (Direct or Indirect), Customs (Imports and E xports), Licences (except R ecruiting) , Business Tax, Native H ead Tax (through D.O.'s). Chief Controller . . £650

Deputy Controller 450

Clerks . . 2,000

Wharf Officer 350

Bond Storeman 300

Total £3,750

CoMMERCIAL AND MARINE DEPARTMENT.

On assumption that Government will continue I nter-island Steamers, as at present. To Manage all Shipping. To Control, Purchase, Issue, and Dispose of all Government Stores, and Supplies. To Manage Government Wharves, Jetties, &c. Superintendent £600

Store Manager 400

Engineers, and Crew, &c. (present establishment) 10,700

Clerks at £350 1,050

Storemen at £300 600

Asiatics 72

Total £13,422

P uBLIC WoRKs .

To ETect all Public Buildings and keep them in Repair. To Manage Government Workshops. To Control Government Printing Office (Staff estimated on assumption that Government Workshops at·e Maintained) . NATIVES.

Director F oremen-2 at £350, 1 at £300 Clerks-1 at £350, 2 at £300 Artisans at £260 to £300 .. Artisans (Asiatics) approximately Native labour

£600 1,000 950 1,200 5,000 1,000

£9 750

Printer ..

Machinist Compositors

GOVERNMENT PRINTING OFJ<'ICE.

Total

£350 . 300 '600

£1,250

£11,000

N OTE.-Natives to be trained as compositors as early as possible.

HEALTH DEPARTMENT.

Care of Public Health, Managernent of Hospit;als (European and Native). Public Servants t o receive free medical treatment, except for illness resulting from own indiscretions. Operations to Public Servants to be chargeable for at rates to be approved in each case by Administrator.

Principul Medical Officer Medical Officers- ·

R abaul ·

Kaeweing Madang

£600 500 500

(All above with tight of private practice, rates · to be prescribed.) ·

Medical Orderlies at £300 (Rabaul) Clerk Matron (Namanula Hospital) Nurses (Namanula Hospital) at £150 · Cook Sanitation-Inspector, 2 Asiatics, 6 Natives (plus prison

labour), say ..

Total

£700

1,600

600 300 250 300

72

700

£4,522

_ Power to be taken under Health Act to impose rateB so as to recover cost of , sanitary services.

Postmaster

PosT AND TELEPHONES. . Natives.

. Clerks at £300 Mechanics at £300 Telephonists at £300 Linesmen at £250

Natives . .

Total

£400 600 600 1,500 1,000

108

£4,208

NoTE.-Early efforts to be made to train natives as switch operators and linesmen. AGRICULTURE. *Director and Plant Pathologist Assistant Pathologist and Inspector at £400

Clerks at £300 • P ossibly a higher salary will be necessary t o attract a first class man.

GOVERNMENT PLANTATIONS.

Overseers-13 at £300

Superintendent White Assistant Asiatics .. Natives ..

Total

BOTANIC GARDE NS.

£700 upwards 400 600

£450 250 150 700

£7,150

39 -

SuMMARY.

Administration Department Law Lands and Survey Treasury Taxation Department (including Customs) Commercial and Marine Department Public Works Health ..

Post and Telephones Agriculture

Total Salaries .. -

£43,800 2,350 11,154 2,350

3,750 13,422 11,000 4,522

4,208 7,150

.. £103,706

15'77

Contingencies, as per Treasurer's Estimates, £71,120, probably reducible to, say 55,000

10,000 Unforeseen, say ..

.. £168,706

CHAPTER III.

PRESENT AND PROSPECTIVE REVENUE.

Appended will be found a statement furnished by the Treasurer showing the Territory revenue received from the date of occupation till the end of June last. It would not safe to draw inferences from the figures relating to the earlier years, as they cannot be relied upon, but subsequently bookkeeping methods were improved and the more recent figures may be accepted.

The total revenue for 1918-19 was £143,636, from which should be deducted the wireless messages iten1 (see remarks under Chapter II.), £3,136, leaving £140,500. · It is known that the Germans believed that the Colony would have paid its way in 1918; but the present Treasurer is of the opinio11 that a subsidy will be necessary'

for a few years yet. Your Commissioners, however, are more sanguine, and anticipate that the Mandated Territory under a separate Government will be self-supporting as soon as the Civil Administration is fairly settled to its work.

The principal item of revenue is Customs duties (£35,160). That item, we believe, customs will increase considerably without alteration of the existing Tariff. By far the larger revenue. portion of the British population at present belong to the military forces and receive all their supplies free of duty, including articles for strictly personal use, such as spirits,

beer, and tobacco. Under a civil regime all officers will pay duties in the same way as persons in private business, and we are of opinion that there will be a general increase in Customs revenue to the extent probably of £10,000.

Export duties realized £18,596, the principal ource being the duty of 25s. per Export duties. ton on copra. Last year shipping difficulties prevent d the iull production from being sent away, but this year's export is estimated by the Collector of Customs to be 24,000 tons, which will mean a revenue of £30,000. As new plantations come into bearing

this amount will increase each year, and t he same officjal has calculated that the Territory may export 50,000 t ons witbin the next six years.

Your Commissioners are in a cord with that principle of the Tariff under·which s u pe rtax on things are made as easy as po sible for the investor during the period which must elapse copra. before his coconut palms come into bearing, and only taxing him when he receives

Export dut y on cocoa.

Rubber.

Business tax.

Native head •

t ax.

40

returns. They see no reason for diminishing t he exjst ing t ax; indeed, they recommend that it be supplement ed by a ten1porary supert ax varying according t o t he price realized for copra at Rabaul. Such tax would onlyapply while prices are high and expenditure on government during the transition period is abnorma l, and pending the growth of normal revenues. It is generally admitted that £25 per ton at t h-at port will give growers a very fair margin of profit. They suggest t hat power· be t aken by the authorities to declare each year the average price realized during the preceding t welve months, and to base a supertax on that price, so that if the price is £25 to £30 per t on the additional tax will be 5s. per t on, if the price is £30 t o £35 the tax will be 1 Os. per t on,

and so on.

On this year's export of 24,000 tons, and with the price at between £25 and £30 per ton (though the average may exceed t he latter figure), an ext ra sum of £6,000 would be realized.

Other possible sources of revenue are export duties on cocoa and rubber.· If for t he sake of maintaining the principle of taxip.g products it is desired to impose a tax on cocoa exported, your Con1missi oners see no objection, but, as the total quantity sent away is under 180 tons, a tax at £5 per t on would only bring in £900 a year .

They do not advocate a t ax on rubber. The plantations producing t his art icle in t he Mandated Territory 'vere begun before it was known which tree gave the best qualit y of rubber, ·and mist akes were made by planting t he jic1.ts elastica instead of the rrwre valuable Para rubber hevea brasiliensis. The result is that only an inferior grade is obtained,' the prices for .which at present are so low that it does not pay to t ap the trees. It is desirable that encouragement should be offered t o extend plant ations of rubber, and your Commissioners think it would be unwise to han1per t he industry by an export tax.

The business tax brings in a substantial sum, over £6,000, and your Commis­ sioners advise its ret ent ion. It is assessed at a percentage rate on t he t otal transactions (excluding copra). It is simple, easy t o calculate and collect, and is a fair equivalent of an income tax, the imposition of which is not recomn1ended.

It will be seen that the head tax, £20,970, shows a substantial increase over any previous year. It is payable by nat ives at t he rate of l Os . per " efficient '' native. There seems to have been some slackness in the early portion of the Military Adminis­ tration owing t o the new st affs not being in touch wit h their districts, but lat er more attention has been given to native affairs generally; and it is anticipat ed that as t he influence of government is widened the amount realized from t his source will be increased. Your Commissioners have, however, not reckoned on any extra revenue under this head becoming available for some years yet.

There is a great deal of work waiting for a staff of svrveyors. vVhen t hese at work a considerable accretion may be expect ed in the item Survey F ees.

Estimates of revenue.

The position, stands as foll ows :­

Revenue on 1918-19 basis · Increase in general Customs receipts owing to great reduct ion of free goods on removal of Milit ary Administration . . . . . . . .

Increase on copra export tax owing to increased exports - 24,000 tons in 1919- 20 . . . . . . .

Supertax on copra export ed ..

£140,500

10,000

12,000 6,000

£168,500

151 79

41

COMPARATIVE YEARLY STATEMENT OF REVENUE FROM DATE OF OCCUPATION TO 30TH J UNE, 1919.

From Occupation · From 1st September, .From 1st July, From 1st July , From 1st July, -- to 31st 1915, to 1916, to 1917, to 191 8, to Au gust, 1915. 30th June, 1916. 30th June, 1917. 30th June, 1918. 30th June, 1919.

£ s. cl. £ s. cl. n s. cl. £ s. cl. £ s. d. ;t

Trade and Customs-Imports .. . . . . 29,263 12 1 39,580 16 4 41,596 10 0 35,160 14 7

Exports . . .. . . 5,326 17 5 12,188 4 6 24,085 4 6 18,596 13 11

Royalty . . . . .. 14 12 8 964 15 9 1,164 12 1 384 0 0

Harbor dues . . .. . . 927 911 1,344 6 0 1,550 8 6 1, 471 14 7

Sundries . . .. . . . . . . . . 146 13 3

-----Total . . .. 27,973 6 4 35,532 12 1 54,078 2 7 68,396 15 1 55,759 16 4 Licences- . Recruiting . . .. . . 260 14 0 255 0 8 449 3 6 1,078 13 0 :Fishing . . . . .. 10 10 0 . . 143 16 8 344 17 6 Dynamite . . . . .. 46 5 0 . . 280 17 6 932 0 0 Gun . . . . .. . . 591 12 4 454 1 6 768 0 0 639 10 0 Trading . . . . .. 205 0 0 854 18 0 1, 646 15 9 1,124 17 0 Liquor . . .. . . 562 16 3 593 16 10 482 0 0 958 15 0 Visit hotels . . .. . . 27 15 0 19 16 8 142 5 0 43 0 0 Dog tax . . . . . . 24 12 0 18 16 6 75 1 10 72 15 7 Other licences . . .. 1,503 2 5* 599 011 319 8 8 1,643 10 10 - - ----Total .. ·-· 685 0 1 3,232 7 0 2,795 11 1 4,307 9 :n 6,837 18 11 ---- - - - ---- - ----Business Tax .. . . 1,36 1 17 3 536 3 6 7,097 5 5 4,263 13 5 6,019 9 4 -----Law Department-Court fees . . . . .. 475 2 9 290 0 0 427 7 2 113 10 1 Fines and costs . . .. 652 311 558 17 4 691 13 7 1,032 6 4 Ships' register . . .. . . 102 17 0 39 10 0 32 10 0 11 5 0 Total . . .. 976 8 9 1,230 3 8 888 7 4 1,151 10 9 1,157 1 5 ' Lands Departme,nt-Rents (land) . . .. . . 3,59 1 6 5 2,494 16 8 3,455 13 4 3,160 16 6 Survey fees . . .. . . 54 15 0 161 19 3 2,441 10 9 565 18 1 Sundries . . .. . . . . . . . . 11 9 2 Total . . .. 340 211 3,646 1 5 2,656 15 11 5,897 4 1 3,738 3 9 Native Affairs-Head t ax . . .. 2,837 5 6 7,014 19 5 12,410 15 8 10,685 17 5 20,970 2 4 Indenture fees .. . . 3,282 0 2 2,779 8 9 2,508 15 10 3,786 16 0 Fees and fines .. .. 812 8 10 154 9 6 223 19 ,8 255 14 8 318 12 7 Total . . .. 3,649 14 4 10,451 9 1 15,414 4 1 13,450 7 11 25,075 10 11 Post Offi:ce-Stamps . . . . . . . 4,000 1 0 - 3, 904 4 9 1,884 0 4 3,013 13 10 Telephones . . . . .. . . 11 17 0 13 9 0 21 10 6 Sundries . . . . .. 20 9 11 7 18 0 13 4 0 49 3 5 . Total .. . . 1,597 3 It 4,020 10 11 3,923 19 9 1,9 10 13 4 3,084 7 9 Wireless Messages . . . . .. 1,016 2 3 1,636 3 1 1,724 411 3,136 16 0 Shipping R eceipts . . .. 1,634 3 1 10,597 8 9 10,995 13 3 19,632 18 1 20,699 18 2 Plantations . . .. . . 196 7 7 1,450 8 2 3,511 2 10 1,934 7 9 • Including £1 ,100 "Birds of Parad ise." t Including Wi rc lcs Revenue.

Classes of enemy property.

The three trading companies.

42

CoMPARATIVE YEARLY STATEMENT oF REVENUE FROM DATE oF OccuPATION To 30TH JuNE, 1919 ........... . continued.

From Occupation From 1st September, From 1st July, From 1st July, From 1st July, - to 31st 1915, to 1916, to 1917, to 1918, to

August, 1915. 30thJune, 1916. 30th June, 1917. 30th June, 1918. '30th June, 1919. -

£ s. d. £ s. d. £ s. d. £ s. d. £ s. d.

Hospital Receipts-European . . . . . . 458 0 9 409 17 11 634 15 6 699 4 5

Native . . . . . . 515 0 9 1,999 8 10 1,094 19 0 2,165 5 6

Sanitation . . . . . . 84 5 10 136 9 0 217 18 6 185 2 0

-··-

Total . .. .. 270 16 6 1,057 7 4 2,545 15 9 1,947 13 0 3,049 11 11

-----nterest . . .. . . . . 253 14 0 794 8 3 358 2 5 217 19 5 I M - --- iscellaneous-Sale of ice . . .. . . 460 9 9 2,438 4 10 . . 123 1 4 Exchange . . .. 341 19 0 327 9 9 482 1 G 916 18 6 250 16 0 Sale of store3 . . .. 664 14 4 2,317 2 3 6,040 12 · 3 8,940 7 10 4,447 19 h Rent .. .. . . . . 48 0 6 110 13 4 137 · 7 3 134 6 R Sale of water . . .. . . 272 16 4 246 7 0 155 1 6 103 6 10 Gazettes . . .. . . 56 15 7 61 3 6 57 16 0 65 0 0 Sundries . . .. 111 7 7 2,033 9 5 1,903 8 4 3,161 7 7 7,800 13 7 Total . . .. 1,118 011 5,516 ') 0 7 11,282 10 9 13,368 18 8 12,925 311 -·-GRAND ToTAL .. 39,606 13 3 77,286 11 2 115,559 '5 5 139,920 14 5 143,636 5 7 (Sgd.) C. J . W. GILLAN, Captain, (Sgd.) W. H. SINCLAIR, Corporal, A/ Accountanr. CHAPTER IV. THE DISPOSAL OF ENEMY-OWNED .PROPERTY. I In the event of enemy subjects in the Mandated Territory being wholly. or in part repatriated and their taken over for liquidation, a difficult operation is involved if it is to be: carried out methodically and successfully, without undue hardship to the individuals involved, and with a minin1um of loss of assets by neg1ect, incompetence, or irregularities. The properties involyed may be divided roughly into three sections-Mercantile, Shipping, and Agricultural. Enemy mercantile and shipping interests are principally in the hands of three firms, who have their head-quarters in Germany and their territorial offices and main stores at Rabaul, with important branches at l(aewieng and Madang. These three firms, in order of importance, are-Neu Guinea Compagnie (known locally as the" Company"). Hamburgische Sudsee Aktiengesellschaft (known locally .as "I-Iasag '"') . Hernsheim and Co. Aktiengesellschaft (known locally as "Matupi "). There are also the Mioko Planting and Trading Company at Rabaul, and the Bremen Sudsee Aktiengesellschaft at Madang. · Nearly all the trading of the Territory is in the hands of the three first-named companies, either through their own stores, plantations, ships, and trading stations, or by reason of their financing the traders. No valuation has yet been made of the traders' stores, buildings, stocks, book debts, town lands, &c., which represent property worth a substantial sum. If the repatriation of the enemy population is decreed the good-will of the large enemy companies will vanish, and their n1ercantile and shipping properties (buildings, ships, trade stocks, plant, &c.) are worth just what they will bring in the open market.

15 _1

43

Enemy agricultural interests consist of land and p · lantat.ons (mostly coconuts) m terests. scattered throughout the Territory, roughly divided as follows ·.-..

- Lands Held. Approximate Number -of Plantations. Area Planted.

acres. acres.

New Guinea Company .. . . .. . . 368,118 31 21,962

Hamburgische Sudsbe Aktiengesellschaft . . .. 62,271 24 9,985

Hernsheim and Company .. . . . . . . 8,549 31 6,698

R. H. Wahlen and Company . . . . . . 14,129 .. 8,648

453,067 .. 47,293

Smaller Enemy Holders . . . . . . .. 113,112 127 52,926

566,179 .. 100,219

The total valuation placed by the owners on these properties is £2,613,760, but no measures have yet been taken to obtain independent valuations. It will be noted that nearly half the total planted area is owned by the four .companies, who also hold liens over many of the smaller holders, whom they have

fi nanced. ·

Therefore, practically-all the main mercantile and shipping interests as well as half the enemy plantations are owned by four companies.

The action to be taken in regard to all these properties depends on the policy to Action. depends be adopted by :the Government with regard to the ex-enemy mercantile population on policy. generally.

If the Government decide not to repatriate any of the German residents, further consideration under this head will not be necessary, for it is assumed that the Government will not resume the properties of those who, are permitted to remain.

I f, however, the Government decide on a policy of repatriation and expropriation, The legal the legal position appears to be as follows: First, there must be a valuation made according to the laws of Australia, then the amount of this valuation must be credited resumption. t o the fund for meeting obligations to the Allies. Nothing will be payab]e

by Australia to those Germans who are expropriated," the compensation to the German property owner must be made by Germany itself." (See Allied reply to German Delegation, British Parliamentary Paper, Miscellaneous No. 4·, 1919. Cmd. 258, p. 48. ) If the Government resumes any of these properties they will then decide what is to be done with them, and will choose as far as plantations are concerned between the following alternatiyes :- ·

1. To retain them as Government properties and work them as commercial Different enterprises for the benefit of the Territory, i.e., a policy of nationaliza- courses open. tion. 2. To retain the ownership and lease them to approved persons, firms, or

companies at· rentals bearing some general relation to their value. 3. To sell them to approved persons, firms , or companies.

1n the event of alternatives numbered one or two being adopted, the Government must pay to the Allies Fund the amount of the valuation ; if number three is chosen, the Government will pay to the Allies Fund the amounts realized by the sales . Your Commissioners do not recommend the policy of nationalization. Ndionali z:ation

.

In the first place, it would mea.n the findj ng by Australia of a large amount of reco mmended. money (at least £2 ,500,000), and its investment in this purely commercial concern; and, further, they can see no reason why the Federal Government should undertake the business of coconut-growing in the Mandated Territory any more than the business of wheat-growing or butter-making in Australia. That a Government should embark on may well be justified when there is a demand for a product

of Wide util1ty, will ch 1s not met, or Is not adequately met, by pnvate enterprise. There is, however, no extensive demand for copru in Au tralia, which exports the bulk of its imports of that commodity to Europe.

It will not

encourage permanent settlemep t.

How it will affect the natives.

Leasing improved lands not recommended.

44·

If, ·however, the Government should be disposed to consider the proposal seriously, your Co1nmissioners consider that several aspects of the subject deserve special attention. • If the Government becomes the owner of the great plantations, there will be no substantial addition to that class of settler whom it is most desirable to encourage, that is, t he man who has invested his own money in the place and has the keenest personal interest in promoting it s prosperity. Under a system of nationalization the local planta­ tion .managers will be n1erely another class of civil servants, a class, moreover, whom it

will be difficult to recruit and to ret ain, for, as soon as such men becorp.e acclimatised and acquire suffic ient knowledge to make them reaJly capiible, they will be tempted to move off to some place where they can obtain an interest in a property to work on their own account. From this p oint of view the Territory will be under the same disadvantages as if t he plantations were handed over to one large con1pany, a possible course feared by our Chairman, not suggested by us.

The second point concerns the natives, and has a and direct relation to the preservation of that right of freedom to work, or to refrain: fro:m working, on which the Lieut enant-Governor of-Papua now, always, has properly laid such In all countries where native labour is employed there have been difficulties in connexion with recruiting, which have led to suggestions that such work should be carried out by the Government who should engage the labourers and supply them to various employers· at a rate to be fixe d. The proposal has mucli to commend it ; but it has been consistently rejected on the ground that it would lead to practically forced labour.

It is the business of the recruiter to request, and by all legitimate means to persuade, the natives to offer themselves for work; but he has no right to command. It is the sole prerogative of the Governn1ent to command, and the Govern1nent must maintain the position t hat its commands must be obeyed. If the Government takes over the large plantations, it will become the largest employer of labour, and it will have to procure its labour through Government officers. How can the natives distinguish between a request and a command coming from the same Governn1ent Either the native will construe a request for his labour as a command, which he must obey, or he will eonstrue a command as a request, which he is entitled to refqse. Injustice or confusion will result, and in either case the authonity of the Government will he ·

Then, too, it has always beep. heJd to be a prirp.ary duty p£ G9veinment to stand as protector of t4e in their with -white employers; it is

ditficult to see how tP.is CaJ+ be maintained if the Gover:ninent becon;tes

itself in its commercial ventures by far the largest employer of labour. One can easily imagine that gr;:tve difficulties will ogcur if shoukt happen qt any time to be such a shortage of h=tbour that competition for it becomes keen. If it is found that the Government plantations are well supplied while private employers have to go of unfairness will be freely made and possibly will be

justified. ·

Australian control will have assuredly to face an abundance of 'hostile criticism, and your Commissioners see no reason to support any proposal which, if adopted, would_ be certain to furnish our enemies with grounds for · such criticism. Nor do your Commissioners advocate t4e policy of leasing improved lands.

In the first it mf3an the tinding by A11stralia of the v11llle of the

res1,1med prope!ties, at Further, the position is not as if leasehold would be practically 'the only tenure in the Territory, as in Pap-q.a. There are already extensive properties belonging to allied and neutral suqj ects which are held on freeh old.

The polipy to the future alienation of Crown ];:tnqs may be considered later, but there is· a wide difference bet ween leasing unimproved lands which the Government acquire ;:tt little or no cost , and improved lands for which the Government h::.j,ve to p ::.j,y the full with money borrowed at a time like this, when interest

a+e higher t han ever before, and money is hard to borrow on a:p.y terms.

The wain ground for the Government retaining the ownership in tee and only parting wit h a leasehold interest is that unearned increment accrues in consequence of general development, which increment rightly belongs to the general oommunit;r,

45

and not to the individual; but where, as in this Territory, practically the sole interest . is the growing of coconuts, no great increment is likely to occur; a coconut plantation is not perceptibly increased in·value because a dozen or sc·ore of others are established in its immediate vicinity.

There is a further difficulty with regard to leaseholds in the fact that it is well known that banking institutions are strongly averse to lending money on this form of se"curity. It will often happen that planters desire t o raise money on their but your Commissioners have it on excellent authority that if the banks advance money

in cases where the tenure is leasehold, the Government must assume financial responsibility for funds provided in this way. The Government will have enough to do with its money for a long time yet, and assumption of responsibilities other than those which are essential cannot b.e advised.

1583

Having considered the three alternatives with the fullest possible care, your s ale of C · ' d h 'bl f · l l · properties ommlSSlOners recommen t at as SOOn as possl e a t er resumption t le p antat1ons recommended. be offered for sale to individuals or companies, making special provision for settlement on suitable blockm of such ex-soldiers as may desire to embark in the enterprise of coconut

growing in the Territory. They have prepared a memorandum, in which a method of procedure is indicated for taking over plantations and trading concerns, but they request that this· memorandum be regarded for the present as confidential, as premature publication may be prejudicial to its successful execution.

As regards enemy properties other _ than plantations, your Commissioners Trading_ recommend prompt liquidation of the assets of those trading con1panies whose capital eompames . is provided from Germany. ,

The busip.ess of these companies is twofold- ( a) supplying stores for local consumption and purchasing products for export ; and (b) making advances to planters. The latter business can better be done by institutions such as t he Commonwealth Bank, whose objects would be to enable settlers to get on their feet in the short est possible

time rather than to shackle them in ever-tigptening bonds, which appears to have been the policy of the German companies. There will be no difficulty in regard t o meeting all local requirements in the way of trade, as there are ample indications that many Australian merchants will be prepared to buy all the copra offer ing, and will .open stores

and spock them with· all the rice, tinned goods, and trade tobacco, &c., necessary, without the need for Government assistance. Some of the asset s of the companies are represent ed by t own blocks . In Rabaul Town blocks. itself, the freehold of all that portion of the town not owned by the Government is in ·

the hands of the N orddeutscher Lloyd Company, who lease the allotments to private persons. The considerations which have been expressed with regard to leaseholds do not apply to lands in towns, where bettern1ent may be expected, and where it is desirable to secure to the community the benefit of that increased value.

Your Commissioners recommend that all town blocks which are resumed should be retained by the Government and leased for moderate terms on building conditions or otherwise.

CHAPTER v.

(i) THE TRADE RELATIONS OF THE TERRITORY BEFORE AND DURING THE WAR AND THE REGULATIONS NECESSARY FOR TI-IE CONDUCT OF TRADE tN THE FUTURE.

(k) THE STEAM-SHIP COMMUNICATION WITH THE TERRITORY AND THE ACTION NECESSARY TO SECURE R EGULAR COMMUNICATION IN THE FUTURE. Whilst the first ·hoisting of the flag in these Possessions was carried out by the Early traders. British (Captain Carteret) , 1767, it is believed that trading enterprise c01nmenced

between 1870 and 1880 with the store of Godde£roy and Son, a powerful German company operating chiefly in the P olynesian groups of the P acific (San1oa, Tonga, &c .). One of the earlier settlers, however, was a Captain Farrell, who ent to the Duke of York group in the employment, or with the assist ance, o± the Goddefroy firm . Captain Farrell's

wife was the fam.ous " Queen E mma," afterwards Mrs . E . E . Forsayth, who fo unded the British firm of E. E . F orsayth, a large planting and trading concern in New Britain, &c., which was subsequently bought out by the Hamburgische Sudsee Aktiengesellschaft.

First regular steamers.

46

Until the establishment of the N eu Guinea Compagnie in 1884, the only outside communication was by occasional trading vessels chartered by the German firms to load copra, chiefly to Germany. Mrs. Forsayth owned a small ·steamer, the Ripple, and the schooner Three Cheers, which occasionally visited Australia as her business requirements necessitated.

The first regular steamer communication was from · Singapore to German. New Guinea and New Britain, calling at Friedrich ' Vilhelms Hafen (now Madang), Stephansort, and Hetbertshohe (now Kokopo), which was carried out by a .branch steamer of the Norddeutscher Lloyd, connecting at Singapore with the Norddeutscher Lloyd China­ Europe lines. This was the only overseas steam-ship connexion until January, 1897, Australian when the Australian firn1 of Burns, Philp, and Co . . Ltd. established a steam-ship service

service. fron1 Australia .to New Britain. This Australian line was unable to divert much of the

copra owned by the leading German firms, who still continued to ship their produce to, and draw their 1nain supplies from, Germany via Singapore, but they gradually SPcured most of the non-German business (E. E. Forsayth, British ; 0. Mouton, Belgian; J. M. Rondahl, Danish; and the Sacred Heart and Methodist lVIissions). These people sent their copra to Australia for sale, and purchased their requirements in the same market. About 1900 the Australian traffic having attained payable proportions (about

2,000 tons per annum each way), the N.D.L. decided · to extend their services to the Commonwealth, and established a Hong Kong-German New Guinea-Australian n1onthly service with 3,000-ton steamers (Prinz liValdemar, Prinz Sigismund, and Manila), calling at Madang, Kaewieng, Kokopo, and Rabaul, with occasional calls at other ports when inducement offered, connecting at each end with the N.D.L. Hong Kong-Europe and Sydney-Europe mail lines. Keen competition in rates foJlowed, but failed to oust the Australian competitor. A successful coup was then prepared in 1907. The N.D.L. sent

one of its directors from Hamburg to Rabaul to place before the German firms there a comprehensive contract, giving favorable through-rate .to Germany and new inter­ island services at low rates, conditional upon the unanimouB acceptance of a five years' sveciatfreight contract. This contract provided for through rates of 55 marks per ton from German rates.

Trade with Australia.

New Guinea to Germany, with option of discharge at any of three ports (Antwerp, Bremen, Hamburg) to suit consignees' convenience, and a freight rate of 25s. per ton from Sydney to Rabaul, 'or 20s. per ton fo r copra from Rabaul to Sydney. In addition, the N.D.L. offered inter-island services with two small vessels at low rates of freight (from lOs. per ton upwards), thus relieving the merchants and planters of work which previously involved the maintenance of individual schooners and other small craft.

This scheme, being mutually advantageous, and having the active support of the Gennan Governor, was accepted by all the merchants, and at one stroke the Australian company was knocked out, not to return again until the military occupation in October, 1914. ·

The firm of E. E. Forsayth and other non-Germans stipulated for the option of landing their copra at Sydney for sale on that market. Frequently it was purchased there by Lever Bros. and crushed in Sydney, or by London buyers and transferred to British steamers for Great Britain. More often, however, the advantage of the cheap through biH of lading per N.D.L. resulted in Gerrnan buyers retaining the shipments. In most cases such shipments changed owners at Sydney, and the proceeds were expended in Australia on merchandise, &c.

As a result of the stean1-ship services to and from Australia, and the realization of copra shipments on the Australian market, most of the supplies for the non-German residents, and an appreciable portion of the requirements of the German companies, were obtained from the Co1nmonwealth. In 1913 the imports into the Territory from Australia .were valued at £83,187, of which £49,165 was for Australian products. With the

cessation of Gern1an services upon the outbreak of war in 1914, the whole of this traffic was secured to Australia, and the imports and exports developed as follows:--1915. 1916. 191 7. 1918.

Imports . . 152,848 139,684 23 1,599 325,193

E xports . . 167,427 310,437 441,616 514,149

The above in1p ort figures included the supplies for the Australian Military Garrison, which cannot be separated fr on1 ordinary imports ; but nevertheless the figures are s-triking and show a substantial development, especially for 1918, when the garrison had been reduced to a minimu1n.

15 _5

47

When the .German services ceased Messrs. Burns, Philp, and Company supplied service during vessels under an arrangement with the Cmnmonwealth Government. Alterations in the war. the running of the steamers have been n1ade fron1 time to time, but for the past three 0) years there have been two steamers running a conjoint Papua-Rabaul service, in respect

of which a subsidy is paid, another vessel running a direct Sydney-Rabaul service without subsidy, and occasionally two srnaller stean1ers. The freight charged was at first 35s. per ton, subsequent'ly increased to 50s. per ton, a rate considerably in excess of the rate charged by the N.D.L. prior. to the war, which was 20s. per ton. The Gern1an company's steamers, however, were highly subsidized (approximately £35, 000 per annun1 for the Hong Hong- Rabaul-Sydney service, three steamers, and the Singapore-Rabaul steamer) and were manned by coloured crews. The rate at the sa1ne tin1e for the Burns,

Philp steamers to Papua was 35s. per ton, subsidy £11,000, with white crews, at Australian coastal rates of pay. If comparisons are made, they should be with the former Papuan rate and not with the N.D.L. service, which was run under different conditions. During the war period costs of running st ean1ers have increased in every branch ; costs of

vessels and repairs, coal, provisions, supplies, and wages are all much higher now than ever before. ·

The Germans imposed no differential tariff charges.

In prescribing the trade relations of the Territory for the future, regard n1ust be Trade relations had to all interests concerned: not onlv must the direct material benefit of the Mandated for future. Territory be considered, but must.take into account also the rights of Australia and the Empire.

The Territory point of view is clearly set out in the letter from the The desi:es of

Administrator, quoted extenso in our Chairman's separate report. Briefly stated, the Terntory. what GeneralJ ohnston desires is direct communication with the East and with Europe, so that supplies may be obtained and produce exported without using Australia in either case as an intermediary. The German merchants have made requests to the same effect. If this view is adopted, Australia will be practically cut out, and her trade will be limited to occasional consignments of meat, biscuits, and flour, while the ships

which carried those cargoes would return empty. All the business would be done by subsidized vessels with coloured crews belonging to Japan and Holland, and perhaps occasional ships, also run on cheap co nditions, from EJ?-gland or America.

Your Commissioners do not consider that such a state of things would be regarded Australia must with complacence by the Australian people. They have already stated the view that be considered. Australia did not undertake naval and military operations against German New Guinea for the sake of gain, nor did the Prime l\iinister put forward such strenuous efforts at the Peace C9nterence to secure the Mandate over this Territory for Australia, merely for the purpose of obtaining commercial advantages, but it would be intolerable if, after al1 that has been done and suffered by Australia, its citizens were to be asked to stand by, to accept all the troubles and diffic ulties attendant on the international obligations regarding the government of the count ry, to in cur heavy financial respon-sibilities, to risk possible losses, and to see the profits of trade going into alien hands.

The Navigation Act makes trade between the Mandated Territory and Australia Effectof subject to conditions as to manning of ships, pay, and accon1n1odation of crews, &c., NavigationAct. that will preclude foreign competition as between Australia and the Mandated Territory, but it does not affect the position of ships making Rabaul a port of call , provided they

do not carry passengers and cargo between the Territory and Australia. ·

It is necessary, therefore, to consider what courses are open so as to secure that Australia is not only able to . obtain some, at any rate, of the trade advantages that will be derivable from this potentially rich Territory, but is also in a position to maintain those intimate trade relations which are desirable in order that the Territory may not

become an isolated community looking to the outside world both as the market for its Int im ate trade goods and itt: source of. supplies , and so drift out o± touch with the Australian people.

Your Commissioners have considered three courses- -complet e reservation of all trade to Australia, reservation to Briti'"' h (including Australian) ships only, and unrestricted trade. Each of these, if adopted exclusively, will lead to difficulties. They, therefore, invite attention to the suggestion which they believe offers a fair solution.

They advise that a system of .di.fferential dutie be establi hed, the jmport and export duties to remain practically as at present (subject to the changes recommended in

48

Chapter III.) in regard to all goods imported from or exported to Australia in Australian­ owned ships, that higher rates, fixed at a prescribed percentage on those existing, be charged when the go ods are carried in British ships other than Australian-owned and still higher rates when goods are carried in foreign-owned vessels.

The question of . steamer is one which J:OUr Commissioners not

expect to be able t o offer any suggestions that will meet with general approval In -the Territory or in Papua, in both of which places the universal demand is for cheap freights. In their opinion there is no likelihood of freights ever being cheap again, that is, of bearing any relation t o t he rates existing before the war.

Connexion with Singapore.

Australian P referential Tariff,

Costs of every department of steamer management have increased enormously, and there is no indication that they can be reduced within a measurable time. The situation must be faced as it stands. Whether the Government line or private firms carry on the trade, the position must be clearly recognised that under present conditions freights cannot be lovv- except at the cost of a subsidy payable in the case of private contractors by a grant of money, or in the case of the Government steamers by the acceptance of a loss.

The essential things in regard to steamer communication with Australia are (a) regularity, so that an efficient mail service n1ay be maintained; (b) fixed rates of freight for a definite period, so 'that merchants and others may know where they stand. If the Commonwealth steamers can take up the trade with advantage, they will doubtless

do so, then the necessity for further subsidizing any private company will cease to exist, but your Commissioners have no information to guide them as to the likelihood of the Comn1onwealth Line undertaking tlie service. In any case, they cannot do so at an early date, as ships must be built or altered to provide passenger accommodation suit able for the t ropics.

If t he managers of the Cominonwealth Line do not see their way to take up this business, the only alternative in order to secure the two essential requisites mentioned seems to be to invite public tenders for the services, leaving it to the Government to n1ake the best bargain possible in the int erests of the Territories, with due regard to safeguarding the public revenue, and in the light of all conditions as to costs, wages, and _expenses existing at the tin1e.

Stress was laid on the importance of securing a direct connexion with Singapore for the purpose of obtaining supplies of r ice and copra sacks which are required for the plantations. The Customs records show that in 1918 . copra sacks to the extent of 639 bales, weighing 255 tons, were imported, and rice to a weight of 2,650 tons. This amount of business would not justify a special line of steamers, especially as rice is a seasonal crop, which would all be available within a brief time. Your Cbmn1issioners think that t hese imports might well be left to merchants to arrange, either through Australia as at present, or by charter for one or two special voyages.

There is a further rna tter connected with the future trade of the Territory which, in the opinion of your Commissioners, is worthy of early consideration.· As the Australian Tariff now stands, goods imported fron1 P apua and the Mandated Territory are subject to the same duties as goods imported from foreign

countries.

It is understood t hat the Government have had under a proposal

to remit portion of the duties on produce of Papuan origin. Your Commissioners commend that proposal, and assume t hat such concessions as are granted to Papuan settlers will be extended to settlers in the Mandated Territory. ·

C HAPTER VI.

THE RELATIONS OF THE MANDATED TERRITORY WITH PAPUA AND THE BRITISH SOLOMONS.

separate Should it be decided to transfer the contr-ol of the British Solomon Islands to t he Government tor solomons. Commonwealth, your Commissioners recommend that a separat e Government be retained

for that group also . In their opinion the concentration of energies made possible by having Governments, with only a moderat e area to rule over will lead to much greater

49

efficiency, especially in regard to the supervision of native interests, · than con1bining all areas uuder one central Government, which could only tend to that direct supervision by the Commonwealth over local administrations which your Commissioners regard as so . '

Your Commissioners express no opinion as to the desirableness of effecting such transfer. They are aware that some time ago a number of white planters in the British Solomons forwarded to the· Secretary of State for the Colonies a petition against the annexation of the group to Australia, and .requesting that no change in their status should be effected without their consent. Your Commissioners believe that the petition was baBed on a misapprehension of facts and .conditions, and suggest that, if the transfer is considered, be taken to acquaint the · residents of the group with the precise situation in which they would be placed as regards the Commonwealth and the other Territories of the Commonwealth.

If the transfer is effected the British Solo;rnons would e&sily a;nd naturally find their place in the relations between the Commonwealth and the of Papua. and the Mandated Territory, a brief outline of which is now submitted.

1587

It has been admitted by your Commissioners that Papua and the Mandated co-ordination in Territory have so much in common that it is desirable that the laws and regulations of Government should be-brought into conformity as far as possible. In order that this should be effected they suggest that a system of annual conferences between representatives of both Territories and the Commonwealth Government should be

established. It is at present the practice for the Lieutenant-Governor of Papua to visit Australia each year to confer with the Minister. He brings with him his Official Secretary, and sometimes also one of his principal heads of Departments. If the visits of the Administrators of both Territories were to be made at the same time, and the Territory delegation were enlarged, to comprise one or more official and one or more members of the respective Legislative Councils, a full conferer_ we could be

held, unde1; the presidency of the Minister, at which the legislative programme for each Territory £or the corning year could be exhaustively considered, and arrangements made to obviate the divergencies possible under independent action. It would be much eas.ier to prevent such divergencies, as could be done under the scheme proposed, than to correct them after they had found positive expression, in the form of ordinances.

The;ce is another matter in connexion with which the closest co -=opera.tion between consolidated h . f h B . . h S l . h h T . . . -d . bl Y Public Service. t e two, or, t e . ntis o omons come In, t e t ree erntones IS es1ra e. our Commissioners recognise the advantages offered by a large Public Service over two or three ones, especially in the way of the inducements offered to young men to take up the tropical Public Service as a life career. · They recommend, therefore, that the salaries of the officials in the vatious Territories should be made similar fo:J; similar

work, and that the services be treated as a whole, not so far as immediate control is concern,ed, but so that members of each shall be eligible for transfer or promotion to higher posts in the other. In their opinion a soh erne on these lines could be worked out which would give the inducement of a wider field for promotion, and, by the frequent interchange of officers, would tend to promote uniformity in spirit and methods of administnition.

Melbourne, 8th December, 1919.

F.l334.-4

(Sgd.) .

(Sgd.)

ATLEE HUNT.

WALTER H. LUCAS.

50

Synopsis of Report by Majority of Commission (Messrs. Atlee Hunt, and Walter Lucas).

CHAPTER I.

A separate Government for the l\1andated Territory is recommended because­ Although the Territories of Papua and late German New Guinea have much · in common, there are wide divergencies. The systems of law are different. _

If German residents remain there will be constant hostility, and they will require special supervision. If German residents are repatriated the_ task of replacing them is one of special difficulty. .

There may be difficulties in regard to the Chinese and Japanese now there. ·unusual care is needed regarding German n1issionaries, who number over 200, and have much influence over natives. If they remain they 1nay form a centre of German influence .. and may

unpleasantness in our relations to the League of Nations. German traders and planters are also a possible sourcP- of danger. The Papuan Government have sufficient occupation in their present Territory . . The Papuan Legislative Council could not legislate effectively for the new

Territory. Port l\1oresby is not suitable as a capital, while Rabaul is. The Mandated Territory is further advanced in development than Papua. If the Territm;ies are combined it would not be practicahle to present an

adequate report concel·ning the lVIandated Tenitory to the League of Nations as required by the Peace Treaty. The Chairman's fears that transfer of the Mandated Territory will be fcllowed by . a decline of prosperity, demand the closest supervision to

prevent such deeline. The British Solom_ ons can be best dealt with, if their transfer to the Commonwealth takes place, by a systew of separate Governments. And, generally, the circu1nstances of the l\tfandated Territory are such as to demand for a long time the and constant attention of an Administration on the spot.

They consider that, under a separate form of government, the welfare of the natives, which is the primary purpose of government, can be adequately safeguarded. There is no reason to fear German influences on native control, as the Government will be under the of Australians and supervised by Australian

Government. They recommend a Goverliment organized on the lines of the present Pa puan Government, with an Administrator, an Executive, and a Legislative Council. · Good salaries should be offered for the Public Service, which should be staffed by retmned soldiers, chosen. with the greatest care. .

There should be co-operation between the Papuan and late German New Guinea Governn1ents in sec uring a capable and experienced field staff. Industrial instruction for natives should at once be taken in hand. Arrangements for medical care of natives should be improved.

A highly qualified agricultural expert should be engaged.

CHAPTER II.

Although 1naterial gain was not the motive for acquisition, it is recognised that the n1atter of cost is important. The expenditure will depend largely on what policy is adopted regarding repatriation of Germans and the disposal of their property, nationalization of plantations, and steam services, &c.

Total estimated cost, £169,000 per annum. Details of salaries approximately out.

51

CHAPTER III.

The present revenue is £140,500. Customs revenue will expand. A supertax on the export of copra is advised. An export tax on cocoa is discussed, but an export tax on rubber Is not recommended.

The business tax should be retained. The native head tax may be increased. The should approximately meet the expenditure.

CHAPTER IV.

The classes of enemy property are stated. The legal position, if resumption is decided upon, is set out. Nationalization of plantations is not recon1mended because-The production of copra is not such an urgent requirement as to justify

it being made a public undertaking. It would involve a very large capital outlay, at £2,500,000. It will not encourage the most desirable class of permanent settler. It will react injuriously on the nafives. Leasing of resumed plantations is not recommended because­

. It would involve the same capital outlay. There is no question of unearned increment. Investors find it difficult to obtain advances on leasehold security. The sale of resumed plantation properties is recommended with special provision for returned soldier investors.

The trading companies (Gern1an) should be liquidated. Assets consisting of town blocks should be held by Governn1ent and leased .

. CHAPTER V.

The early trading history of the Territory is reviewed. In making regulations for the future the interests of Australia as well as of the Territory must be regarded. The Territory desires cheap freights, but if that rneans exclusion of Australia from the trade, such ought not to be permitted.

The most intimate trade relations are desirable. Preferential Territory Tariff in favour, first of Australia, next of the E1npire, is recommended. ·

If cheap freights are to be secured there 1nust be a subsidy either to the Commonwealth Line of steamers or a private company. Two essentials are regularity of mail service and fi xed freights. Connexion with Singapore might be left to shippers to arrange.

Preferential Australian duties in favour of Papua and the Mandated ':Cerritory are commended. CHAPTER VI.

If the British Solon1.ons are transferred to Australia a separate Govennnent i8 recommended. Then that group would find a natural place in the scheme for co-ordination, which is advised.

Annual conferences between representatives of Legislative Councils and the Commonwealth Government are recommended at ·which lines of legislation for year should be discussed and settled. A joint public service for Australian tropical territories is advised as offering by its wider field for advancement an inducement to high cia s men to 1nake that service

their career.

(Sgd .) (Sgd.)

ATLEE HUNT. WALTER H. LUCAS.

Perused and transmitted to the Right Honorable the Prime Minister.

(Sgd.) R. M. FERGUSON,

Governor-General.

16th December, 1919.

589

7

Effect of the mftndate.

(a) Economy.

52

Report by Chairman, His Excellency J. H. P. Murray, C.M.G., Lieutenant-Governor of Papua.

(a) AND (l). ORGANIZATION OF A SYSTEM OF GOVERNMENT AND RELATIONS OF THE TERRITORY WITH PAPUA AND THE BRITISH SOLOMONS. THREE ScHEMES SuGGESTED.

Three schemes have been suggested for . the orga11iza.tion ::1nd of the former German colonies, that is, ·, Kaiser Wilhelrnsland, the Bismarck Archipelago (including the Admiralty and other isl{lnds), &nd the German Solomon Islands:-(1) That they should be administered as part of the Commonwealth

Territory of Papua, which I refer to hereafter as the policy of amalgamation ; (2) That their administration should be kept separate and apart from that of Papua-which I refer to as the policy of separate administrations; (3) That they should be kept separate from Papua for purposes of legislation

and internal administration, with separate Executive and Legislative Councils, and a separate Public Service, but that there should be .__one officer to administer both Governments;,

Under (2) further questions arise whether the former German colonies should be administered as a whole, or whether, e.g., the old Kaiser Wilhelmsland (i;e., the territory on the mainland of German New Guinea) should be separated from the Bismarck Archipelago and the Solomons, and, if so, whethe:r: it should be administered

as part of the co11:terminous Territory of Papua-=--adopting the policy of amalgamation as regards Kaiser Wilhelmsland and the policy of separate adm.inistratio;ns .as :regards the rest of the former German territories. The former German territories are to be administered under a mandate, and the first point is whether there is anything in the mandate which makes it either

difficult or undesirable to administer such territories ftS pa·rt of a territory which, like Papua, is under sovereign control. So far as its terms are known, the mandate in effect provides that slavery is not to be permitted; that the traffic in arms and ammunition shall be controlled; that the supply of intoxicating liquor to natives shall be prohibited; and that f:r:eedom of

conscience shall be allowed, and freedom of worship. Other conditions are that no military or naval base is to be and that the mandatory power shall supply

an annual report to the Council of the League of Nations; and there js a general provision that the mandatory power" undertakes by all means in its power to promote the material and moral well-being and the social progress of the inhabitants," There is not one of these conditions and provisions that cannot be car:ded out just as easily under an amalgamated as under separate administrations; indeed, except the purely negative provjsion against fortification, there is not one of thern that would not necessarily and naturally apply to any Australian· territory. Probably for the purpose of the annual report, it would be desirable to keep the accounts of the Mandated Territory separate from the others, but this would, at most, only :necessitate the employment of an additional clerk. Thus no difficulty · is created in this respect by the ILaridate, and the only question that remains is which of these t wo policies i.s 1 in practice, likely to give the best resY.lts ; and on this very important point I have ·the

misfortune to differ from both rny colleagues, for I am in favour of the policv of amalgamation, as opposed to that of sepa.rate administrations. v

ADVANTAGES oF AMALGAMATXON (S cHEME No. 1). The amalgan1ation of the Territories is, in my opinion, likely to result- (1) in greater economy of administration and (4) in greater efficiency. It is probable that the number of "outside officers "-that is, the number of officers employed in magisterial and administrative work on outstations would be the same under either policy, but

'53

the head-quarters staff would, under separate administration, be almost double what it would be under amalgamation. Thus, under separate administrations there would be two Lieutenant-Governors, two Government Secretaries, two Treasurers, two Commissioners for Native Affairs, and so on, and the number of subordinate officers

employed in the head offices would, in each of the two separate administrations, be almost equal to the number employed, under amalgamation, for both territories combined. Naturally the heads of departments in an amalgamated territory would receive higher salaries, but the difference would be inconsiderable in comparison with the combined salaries under separate admini!'trations. Then, taking into account "the extra number of clerks that a separate administration would necessitate, the

additional expense of Government steamers, of extra police, of extra stores and other items, the total saving on amalgamation should be considerable. The question of expense is a very material one, for the cost of administration is likely to increase owing to the extra cost of living and the consequent necessitv for

higher salaries, and in the case of German New Guinea the increase is, for special mentioned elsewhere, likely in some respects to be greater than in Papua.

159

Still, I should not be inclined to lay so much stress upon the question of expense (b) Efficiency. if the policy of separate administration were likely to be attended with greater efficiency; but it is, I think, clear that the case will be just the reverse. There is great difficulty in getting ambitious young men to enter the Papuan service, for the reason that there is so little to look forward to ; and ·the same difficulty will arise in both Territories if the policy of separate administration be adopted. It is the fashion nowadays to

minimize the disadvantages of New Guinea, just as a few years ago it was the fashion to exaggerate them, but the truth is that the climate is, for the ordinary white man, neither pleasant nor healthy, while for women and children it is even worse; and a young man joining the Government service in New Guuinea must look forward to the . alternative of either remaining unmarried, or of having to separate eventually from

his wife and children, and he must serve without the slightest prospect of either affluence or distinction. Higher salaries will doubtless be paid in the future, but it is hardly to be expected, if the Territories are kept separate, that sufficient inducement can be offered to attract capable and ambitious young men. An amalgamated administration, on the

other hand, will provide more important positions with higher salaries, and will attract men of ability and ambition who, instead of coming in.for a few years and drifting off somewhere else where prospects appear more attractive, will devote their lives to the Commonwealth Territorial Service, just as men make their career in the Colonial Service

of Great Britain. The Commonwealth cannot, of course, offer the same splendid prizes as the Imperial Service, but under amalgamation the prizes will at least be higher than under separate < administrations. We have in the past been extremely fortunate in the class of inen we have had in Papua, but I have reason to fear that our good fortune

may not last, and I cannot too strongly urge the superiority of one good service over two indifferent ones. These seem to me the most obvious advantages of amalgamation, but there is (c).Nattve another point which is c-ertainly not less important, and which arises in particular pohcy. connexion with the terms of the Treaty of Peace, and with the treatment of native races.

And, before I deal with this point in detail, I wish to state most distinctly that I do not claim that my view of native questions is more humane than, or in any way different from, that of either of my colleagues. The nature of my argument compels me to deal with native matters at, I fear, very tedious length, but, although the conclusion at which I arrive differs, unfortunately, from theirs, I do not intend to suggest that their idea of a native policy and mine not in substantial agreement, or that there is any

difference in the goal at which we aim, however divergent our views may be as to the best way to it.

Article 22 of the Peace Treaty is the one which deals with territories such as Article 22. German New Guinea, and that Article directs the application, to the administration of those territories, of "the principle that the well-being and development of such peoples form a sacred trust of civilization." This is important in conn:exion with the difference in principle which distinguishes British from German colonial administration­ German colonies having been administered as purely commercial undertakings (so far as they were· not of or value), :wh:reas were governed,

in theory at any rate, In with laid down In Article 22; that

Article in effect means that, In the adrrumstration of the former German colomes, the British principle is to replace the German .

•

54

A.ustralle.n admtntstratlon ln Papua and German Ne w

Guinea.

Now, jD. Papua the Australian administration succeeded to a British ·adminis­ tration, and the Australian administrative officers naturally followed in the footsteps of their British predecessors ; it was not through any virtue of ours (I say "ours," for I may consider myself one of them), it was simply that, having no previous experience to guide us, we naturally accepted the principles we found in operation, and it so ha:ppens that principles, which are practically the same as those, have now received the formal

approval of the signatories of the Treaty of Peace. So in the case of German New Guinea :

Native labour legislation.

Disci plin ary punishments.

Australian administrators arrived, also without any previo:us experience to guide them, and they naJturally followed in the steps of the very capable German administrators whom they replaced, and all the more s·o as they were expected to maintain the previous administration with as few alterations as possible. This was in accordance with the principles of n1ilitary law and with the terms of the capitulation, which expressly provided that "local laws and custon1s" were to remain in force. So that the military adminis­ tration in German New Guinea has not had the same free hand to amend and repeal laws as has been possessed, for instance, by the administration in Papua or Fiji. Laws,

of co:urse, have been amended, as may be seen on reference to almost any number of the German New Guinea Government Gazette, e.g., the Native Labour Ordinance was amended quite recently, on direction of the Con1monwealth Government, by the abolition of flogging, but any general reversal of policy would probably have been impossible. Thus the efficient but severe German system has had time to impress itself upon the Australian administration, and the impression is particularly noticeable in the native policy. I do not Inean to suggest that any of the German administrators were heartless or brutal in their dealings with the natives, still less that the Australians who followed them were not kindly and humane men, but the system which the Australians found there, and which they naturally continued, was different from that wh_ ich we found in Papua, and one point of difference is that it was less humane.

As an instance of the difference between the German New Guinea and British administration, I will take the existing labour legislation. In all countries where there is indigenous indentured labour the na'ture of the legislation must be very much iJhe same, i.e., there must be a term of indenture, proper provision for the rationing and housing of the ·labourers, and for their return to their homes ; but there are points of

difference between the German New Guinea law and that prevailing in the British Territories in the Pacific which I think illustrate sufficiently the difference in principle between the two systems. To begin with, the wages in German New Guinea are fixed at a minimum of 5s. a month for a man, 4s. for a woman or boy under sixteen, and this · is the rate almost universally paid by employers to theiT plantation labourers; the

maximum 'wages (except in special cases) is In the British Solomons the ordinary wage is lOs., and there is no maximum wage. In other British Territories in the Pacific the wages are, I believe, higher. Married women may be" signed on" (i.e., indentured) in· German New Guinea for plantation labour, though only with their husbands, and on

conditions which appear ·to be well cop.sidered; but in the British Territories in the Pacific they are not signed on at all (see King's Regulations, No. 1 of 1915, Gilbert and Ellice; No. III. of 1910, British Solomons). Even Fiji, which ad1nitted females under indenture from India, expressly excepted native Fijian women from the Labour

Ordinances (see Ordinance of 1895, section 4 (3) ). So, with regard to child labour­ male children of twelve, and (with the consent of the Administrator for domestic service) female children of nine may be signed on in German New Guinea; in the British Solomons and Fiji legislation forbids the engagement of children under fourteen, and in the Gilbert and EJlice Islands the limit is sixteen.

In Papua, as might be expected, the British tradition has been followed · the ordinary rate of wages is lOs. a month; there is no maximum rate; women not signed on for plantation work; and, with regard to children, the general principle adopted is that a .child should not be signed on who would otherwise be at school.

The same difference appears in connexion with punishments. Flogging has been.abolished in German New Guinea recently by the direct action ot the Commonwealth Government, but the so-called "disciplinary punishments" are still retained in the Native Labour of _ 1919. These are which are. inflicted by

employers on natives without reference to a court for senous offences In relation to the duties imposed on such labourers by the· terms of the contract of service" ; but no punishment is permitted " on account of any act of the natives that is cognisable by the criminal law," and the employer must keep a record of the punishments, and send in a

55

return every half-year to the proper authorities. These disciplinary · punishments are " (a) Detention or confinement either with or without chains, and (b) fines." The detention or confinen1ent must not exceed three days, and it is only in". very exceptional and serious cases" that it is lawful to put a labourer in chains, and "in no case shall it be lawful to deprive him-of daylight "-an improvement upon the Ordinance of 1917, which permitted a labourer to be deprived of light, though only exceptional and serious cases." I knovv of no British colony or possession which allows such a punishment to be inflicted upon a native under any circumstances, nor do I know of any British law which allows a man to act as prosecutor, judge, and gaoler in his own cause.

1593

It certainly seems a cruel action to lock a man up in chains for three. days as a Gennanattttude • h t f h' h' h • 11 1 b h £ t t d I h . b towardsNattvel. pun1s men or somet 1ng w 10 IS rea y on y a reac o con rae , an ave een told that such punishments are rarely _ inflicted , and, doubtless, if the Australian administration had realized what they might mean to a native, they would have been

abolished altogether ; but what I wish to make out is, not that the German New Guinea labour law is brutal or inhuman, but that it consistently looks upon the native merely as a means to an end-that end being the development of the country solely in the interests of the European settler. It is possible t o argue that the average German planter treats his labourers just as well as the average Australian or Englishman would under similar circumstances, but the history of Gern1an colonization shows that even the most enlightened Germans, e.g., men like Bernhard Dernburg, seem never to have regarded the native population as anything better than an " asset" to be used in the exploitation of the country, whereas in British colonies the welfare of the native is regarded as being in itself oi the first importance . ·

It is, of course, easy to press too far the opinion of individual planters as evidence of the policy of a Government, but I should like to refer to a letter which the Commission received from a number of German companies upon various subjects of interest. They deal, among other things, with the subject of compulsory labour-every fit and adult native to serve for six years-which they say was being. discussed by the German

Government before the war, and, in doing so, they refer to what they call the" natural duty " of the native, which they d_ efine to be " to assist.the European with his labour" ; they insist that '' the employers themselves have the greatest interest in the good treatment of their labourers " ; and they go on to upon the necessity of giving the employers the right to flog without the necessity of going to court, and they express

no disapproval of the flogging o£ women, which, it appears, was under discussion before the Government Council of German New Guinea in 1914. This letter, though not coming from official sources, indicates, I think, very E.trecton • 1 h G . d d . Th . . d d 1 admtntsirAilon. fan• y t e erman attitu e towar s natives. e native 1s regar e mere y as a means to an end-as the instrument of the employer ; he is t o be well treated, because if he is not well treated he will not work, but he may be flogged, because by that means he can be made to work better. There is, at any rate, no hypocrisy about the writers of this letter-no pretence that the native is t o be flogged for his own good-but their attitude is not one which a British or Australian Government could support, though a German

Government certainly would. I have dwelt upon this contrast between German and British methods because I think that the Australian adn1inistration in German New Guinea has necessarily been influenced by and imbued wit h German principles . Indeed it could, under the circumstances, hardly be otherwise . It is, t herefore, not surprising that there should be, even under an Australian rule, a general (though not a universal) t endency throughout the Territory to regard the native mainly as an asset , and not t o consider the well­

being and deve.lopment of the .for its own sake as being one of the principal objects to be aimed at by the admimstratwn. · This tendency shows itself in many ways . For instance, the " disciplinary punishments," which would, I think, be in a B.ritish colony, .are still retained in the most recent amendment of t he Native Labour Ordinance, and With regard to the system of floggif g., which was recently stopped by Government,

the prevalent even members of t he seems t o be that its

abolition was a· miStake, nor did there seem to be any suspwwn t hat the rat e of wages might be too low. So, t oo , the German t heory that " natural duty'.' t he native is to work for a European mast er seems to be too readily assumed, and It 1s suggested, in an official document received by the Commission, that police patrols on visiting a

lllnor pointtl

56

. ' -

village should -forcibly recruit such of the inhabitants as could be spared to work for private employers for a term of three years. I do not wish to imply that there is anything outrageous in any of these views; persons whose opinions are entitled to great weight (e.g., the Bishop of Zanzibar in his pamphlet " The Black Slaves of Prussia") are not

averse to corporal punishment, and there is much to be said in favour of compulsory labour, which I have myself advocated under certain restrictions and but, as they are stated above, they are German views rather than British, and, taken in conjunction with the general provisions of the Native Labour Ordinance, they show that the policy of the present administration tends towards German rather than towards British ideals. · ·

. Now this would 'be very well if -the signatories of the Peace Treaty had in favour of the principles which have guided German colonial administration, but they have in fact done just t he reverse, for they have in effect said that the Germans have shown themselves unfit to govern inferior races, and that, therefore, their colonies should be taken away from them, and should be given upon trust for administration in accordance with the principles which have been regarded as peculiarly British.

So that, if I am right in my appreciation of the present administration of German New Guinea, the task before the Commonwealth Government is to turn that adminis­ tration from the path which it is now following, and guide it into one which will lead in the direction pointed out by the terms of the mandate and the Treaty of Peace, which

I take to be identical with the ordinary path of British Colonial Government; a:n,d this task must be carried out in spite of the fact that some of those who are _interested in plantations and other industrial enterprises in the tropics may support the German as opposed to the British system, and that the same view may even be taken by people

in Australia who have no interests of the kind. Such persons are, of course, · not in any way unpatriotic, but they may easily think that Article 22 takes a fanciful and too sentimental a view of the native question, and they may prefer the more robust attitude of the Prussian official with his well-known thoroughness and efficiency.

In my opinion the surest and easiest way to insure compliance with the tern1s of the mandate would be to amalgamate the two Territories of PapuaandGermanNewGuinea under one administration. I am not concerned to argue whether Pa puan administration is good or bad-if it' is bad the obvious remedy is a change of its native

po1icy has run consistently on the lines laid down by Article 22, and now that it is desired to bring the native policy of German New Guinea on to the same lines, I advise that that Territory be administered as part of the Territory of Papua. Otherwise I fear that imprint left by the former German administration may · prove too strong for the civil government, as it has already, in my opinion, proved too strong for the military

administration, and that the terms of the mandate may not be carried into effect. There are other comparatively minor points which deserve consideration. Thus the relative geographical position of the two Territories points towards amalgamation, for they are in their main portions conterminous, and the mainland of New Guinea is nowhere so much as 500 miles across, while much of the former German Territory consists of islands which are readily accessible by sea. The native population, again, is racially identical, consisting in both Territories of Papuans and Melanesians, and the stage

of culture which has been reached is the same in both; for in both the natives were, on the arrival of the white man, still in the stone age, and in both they are so still, except in so far as the white man supplies them with knives and tomahawks; in neither have they any knowledge of an alphabet, and in both they have advanced beyond the hunting

and nomadic stages to the stage of agriculture and settled homes. . The European population before the war was, in both Territories, about equal in number- the advantage being slightly in favour of Papua- and the industries in both ·Territories (apart from minerals, which have hardly been touched in German New Guinea)

are almost identi

cal. Taking the figures for German New Guinea for the year 1912_:_13 (the last year for which German statistics are available) and comparing them ·with the Papuan Annual Report for the same year, we find that, of the twelve chief exports from German New Guinea-copra,.birds of paradise, rubber, shell, cocoa, curios, beche-de-mer, ivory nuts, Goura pigeons, turtle shell, timber, and sisal hemp- e.ight are ordi:p.ary exports fron1 Papua, and two others (birds of paradise and Goura pigeons) would were they not forbidden. Only ivory nuts and cocoa do not appear on the Papuan list.

Apart fron1 minerals, copra and rubber were the chief exports of both Territories, vv:hile, to co.mplete the analogy.' which was i:p. fa:pua -in 1911,

discovered In Ger an New Guinea In 1912-13. · ·- · ..

57

. . -

Then the economic position of the two Territories is practically the same ; German New Guinea is ahead of P apua in agriculture, but Papua is ahead in mineral development. In the total volume of trade Gern1an New Guinea is at present very considerably in advanee of Papua (mainly because the German plantations are older than the British),

but this is a position which may easily be reversed in the next year or two when the gold and copper 1nines of P apua become productive. It is noteworthy that, in the three or four years before the war, the area planted in each year was about the same in the two Territories, but during the war, while the rate of development in Papua, as I suppose in most British communities, fell off, that of German New Guinea increased

rapidly, partly no doubt because the money realized by the sale of copra could not be sent back to Germany, and was, therefore, expended in the extension of the planted area. In any case the trade of either Territory is, it is to be hoped, stillin its infancy, and the n1ineral development of Papua is not likely to be retarded by the union of that Territory with German New Guinea, any more than the agricultural prospects of German New Guinea are likely to be affycted by the fact that hardly any of the Papuan plantations are older than the Commonwealth ad1ninistration, which began in 1907.

. 1 595

To sun1 up, amalgamation appears to be desirable on the following main summary. grounds:-(1) It permits of greater economy. (2) It insures greater efficiency.

(3) It insures uniformity with existing British administrations and cOinpliance with the principle laid down by Article 22. And it is rendered the more easy by the following considerations :- . (1) The reiative geographical position of the two Territories.

(2) The racial characteristics of the native population and their standard of civilization. (3) The natural products of the two Territories. ( 4) Their economic development. The objections to amalgamation appear to be (1) the size of the amalgamated ObJections to Territory, which might be considered unwieldy; (2) the previous history of German amalgamation. New and the difficulties created by the German occupation and the presence of German settlers.

(1) The amalgamated Territory would be a large one, but not, I think, so large (a) The !!lze of as to be unwieldy, for even if the British Solomons are to be incorporated, the area the Territory. would not exceed 200,000 square miles. This is considerably less than the area of the East Africa Protectorate (248,000 square miles), of Northern Nigeria (256,000 square

miles), and of Northern Rhodesia (291,000 square miles), and the length of the coast-line would, of course, vastly facilitate administration as compared with the African Territories, ·for very little of Papua or Kaiser Wilhelmsland is more than 200 miles from the sea. Of course, I need hardly say that a fast seagoing steamer or oil vessel of good carrying capacity would be an absolute necessity. ·

A Territory of this size, however, should be divided into administrative districts, each of which would be placed under a district officer or commissioner, whose positions would be analogous to those of the officers of the same name in the Imperial Crown Colonies of Tropical Africa. Their precise powers should be left to the decision of the

officer who is to administer the amalgamated Territory, but they should, I think, have general control of the police and the. of the district, and, perhaps, of native affairs and other matters, but subJect In each case to the head of the department concerned. Such an arrangement would leave the Central Government free to devote itself to questions of general policy. It would, however, be an important duty of the

Central Government to take care that, while details were left to the Commissioners or district officers, a general uniformity of administration was maintained throughout the Territory. (2) With regard to the objection which arises from the previous history of (b) Etrectof

German New Guinea, and from the previous German occupation and the presence of German settlers, it must be admitted that the difficulty caused by the necessary change from the German system to that laid down . by Article 22 is a very real one. It is, however, a difficulty which must be faced, whatever form of administration be adopted, and as I have tried to show, it is a difficulty which can be more easily overcome under than illlder separate ·

08

There is, however, the further question whether the number of German planters and business men is so considerable, and whether the Germanization of the natives has been so complete, that it would be undesirable to bring the Territory of German New Guinea under an administration like that of Papua, which has always been British. Has German New Guinea become German in the way in which Mauritius, for instance, has become French

It is impossible to speak authoritatively on this point without a much more intimate knowledge of the natives of German New Guinea than I can pretend to, but so far as one can judge from known facts, the question must be answered in the negative. The latest Germa,n statistics that I have seen are for 1913, and, according to these, the total European population of the old Protectorate(that is Kaiser Wilhelmsland, the Bismarck Archipelago, and neighbouring islands, and the German Solomons) was in that year 879, of whom 746 of all ages and sexes wer.e Germans (including missionaries and Government officers), 482 in the Bismarck Archipelago and Solomons, and 264 in

Kaiser Wilhelmsland ; or, excluding missionaries and staff and officials (with their families), there were only 392 Germans in the whole of the old Protectorate. These, if they remain, will be temporarily inconvenienced by the· change from German to British law and methods of administration, but it is an inconvenience which they will have to face some time or other, even if the administrations are kept separate, and is a matter which appears to me to be of minor importance.

Thus the number of German residents is inconsiderable, and, as German occupation only dates from 1884, it can hardly be expected that their influence on the natives has been of a character that is likely to be lasting, more especially as little was done, either on tbe mainland or on the islands, to penetrate into the interior and bring the inland tribes under Government influence; and, indeed, the little evidence we have points to the conclusion that German influence has so far not made itself deeply felt, for in spite of the excellent Government school at Namanula (Rabaul), and the efforts

of the missionaries, many of whom, I believe, taught German in their schools, it remains an obvious fact that pidgin English is the real language of German New Guinea and is, in fact, more widely spread in German than in British territory, for in the former there is no language against which it must struggle for supremacy as it has to struggle against Motu in Papua. ·

It is, of course, a fact, and a very important one, that. problems arise from the special circumstances of German New Guinea which are different from those which . arise in Papua. Such problems, for instance, present t:Q.emselves in connexion with the plantations and other private property now in the possession of enemy subjects­

whether these properties should be left in the hands of the present owners or taken over by the Commonwealth, and if they are taken over, what should be done with them-whether they should be nationalized or sold to individuals or companies. Other questions are whether enemy aliens should be allowed to remain in the Territory at aJl, and, if so, under ·what conditions; and what shipping service is to take the place of the N orddeutscher· Lloyd ? All of these questions are very important and very difficult, but they are aJJ questions which mu·st be solved, not by the local administration, but by the Commonwealth Government, and none of them are questions which (when once the policy is settled by the Commonwealth Government) offer any but the ordinary difficulties of administration. EtJecton In addition to these two objections there is another and a more important consideration which suggests itself, and that is whether the proposed amalgamation

is likely to be prejudicial to the economic progress of either of the Territories concerned, for if this were so, it would be necessary to consider whether this disadvantage might not outweigh the advantages which I have mentioned. It would, for instance, be useless to invite an ambitious young man to service in a Territory which was not likely to be an economic success, and the " sacred duty " which we are asked to discharge towards the native inhabitants would be very ill performed if the progress and prosperity

of the Territory were neglected. Thus, although by the principles of British Colonial administration, as well as by the express provisions of Article 22, we are bound never to subordinate the interests of the natives to the economic development of the country, still we must remember that, theoretically, the occupation of the lands of the inferior races is to be justified, partly at least, on the ground that the native inhabitants cannot fully develop them, whereas Europeans can and will, and that if we fail in this duty the natives may suffer at least a& much as any one else. · ·

•

159

Now I think there is reason to fear that the development of German New Guinea will be checked when it is brought under Australian administration by the following causes:-(1) An increase of wages, for I do not think that, under an Australian

Government, the rate of wages will long continue to be lower than in other British possessions in the Pacific. (2) A decrease in the number of labourers, of whom there are now about 22,500 (21,194 men and 1,428 women, according to the latest figures ·

available). -

If the total population is correctly estimated at about 350,000 (of whom a large number are not under Government control), this is a high proportion for voluntary workers, mostly under three years' engagement, and I cannot help fearing that the high proportion may be partly due to t he influence of t he former German Government, which may still survive to this extent-that the natives still think that they must go to work if called upon. In time they will come to realize that they need not go to work unless they want to go, and the number may then diminish very considerably. It would appear, too, that, even now, the methods of recruiting leave something to be desired. In the letter alr_ eady mentioned, which the Commission received from a number of German companies, the writers deal with this subject. They are arguing in fa vour of Government recruiting and compulsory labour, and they say: "It would seem as if in a village where recruiting takes place, mostly the physically and morally lower elements can be got. In many cases, especially in districts far off the settlements of Europeans, there is no self-determination on the part of the indigenous native, for the chief of the

village decides who and how many may be recruited if he consents at all." In other words, the natives do not want to go to work, but the chief sends them-a state of things which could hardly continue long under an Australian civil administration. Perhaps the writers of this letter are exaggerating in order to make out a case for the system which they wish to be established, but there is a passage from an official letter

addressed to the Commission which is rather disquieting. The writer of this letter also is in favour of compulsory labour and Government recruiting, and it is possible that he too is unconsciously influenced by the desire to make out a case for the system which he supports. In his letter he describes the method which he says prevails in "New Guinea" (i.e., Kaiser Wilhelmsland). A local planter gets a contract for the supply of labourers at, say, £6 a head, and engages a Chinaman to whom he pays, say, £3 a head for all recruits brought in. Then comes the part which I cannot but regard as rather alarming. The Chinaman, armed with a shot gun and attended by a few natives, possibly also so armed, and assisted by a few carriers, proceeds inland or to some

convenient place on the coast, from whence he sends his trained natives into the bush to obtain recruits fo r a promised reward of, say, 5s . or lOs. In other cases, a recruiter, fitted wit h a motor schooner, proceeds to some anchorage, or as far a's possible up some river, from whence he despatche s messages to Luluais (a kincl of village chief appointed by the Government), asking them to produce recruits for a certain bonus, or proceeds inland with a patrol for a similar purpose. In cases where the recruiter goes himself, there are perhaps no abuses, but the dealings with the Luluai probably what the Germans refer to in their letter when they complain of the absence of ilelf-determination. What may happen when the Chinaman sends out armed nat ives, selected by himself, to collect boys on the bonus system can only be conjectured.

It is most difficult. to provide against irregularities in recruiting, but it is to be expected that the civil government will, at any rate, do its best to uphold the principle that all labour shall be voluntary, and the immediate result may, I fear, be a considerable falling off in the number of labourers. Eventually this will be remedied by the increase in wages, which should attract more recruits, and the opening up of the back country, but how soon or to what extent it is impossible to say. It is t rue t hat the population of the German Territory is greater than that of P apua, and it is also true that the extension of Government influence in German New Guinea has not been carried nearly so far inland ; but our experience in Papua has not hitherto shown that the mountain native is suited to labour on the coast.

These causes, so soon as they come into operation, are calculated to check development, and they will come into operation eventually form of gove_rn­ ment is adopted, and not only under a system of amalgamatwn ; for no Australian

1597

Inclusion of the Brltlsh Solomon11.

administration is likely to approve a low wage, and certainly no Australian adminis­ tration will tolerate the abuses which are mentioned in the letters from which I have quoted. Of course I hope that there will be no check to development; but what I wish to insist upon is that, if it does come, it is to be looked upon merely as incidental to the change from one system to another, and not as in any way characteristic of either; and certainly I cannot see that development will be in any way affected by the adoption of amalgamation as opposed to separate administrations.

The inclusion of the British Solomons would, in my opinion, create no difficulty. I do not understand that we are asked to express an opinion whether these islands should be transferred to the Commonwealth, but only as to the relations of the German Territory with those islands in case they are transferred. I advise that those islands should, in the event of transfer, form part of the amalgamated Territory, and there would, in my opinion, be the less difficulty in this from the fact that they are already British. The natives are of the same race as those of many parts of New Guinea, and the sole industry (coconut planting) is also the same. Practically the only difference made by their inclusion would be in the division of the Territory into administrative districts.

ScHEME No. 3.-SEPARATE ExECUTivE AND LEGISLATivE CouNCIL WITH ONE OFFICER TO ADMINISTER THE GovERNMENT.

So far I have said nothing about the scheme which I have numbered 3; that is the scheme under which there would be two administrations with one officer to administer the Government of both. Under such a scheme there would be a separate Executive and Legislative Council for each Territory, and also a separate Government Service ; there would be no Lieutenant-Governor or Administrator for either Territory, but only one officer, under whatever title, to administer ·bhe government of both. To have a Governor for the two Territories together, and a Lieutenant-Governor or Administrator for each separately, would leave the Governor with no useful function to perform, and would be productive of constant .friction.

But the Governor should have power similar to that provided by section 14 of the Papua Act, to appoint a. deputy to represent him in any part or the whole of either Territory. Such a power would be useful, e.g., in case he found it necessary to concentrate his attention on the German territory during the first few months of his administration; though it must be remembered that he would rarely be very far away, for with a fast steamer, Rabaul is only two or three days from Port Moresby, and the establishment of wireless t elegraphy has done much to nullify the effect of distance.

In fact, wit1 a fast steamer at his disposal, there is no reason why the officer who administers the Government of the Territories under this scheme should ever be so long absent from either seat of government as J, as Lieutenant-Governor of Papua, with my much slower means of progression, am frequently absent from Port Moresby.

fJ'h ere is, in my opinion, much to be said for this scheme ; in fa ct it has, though in a less degree, all·the advantages of amalgamation, except that amalgamation allows of one large and import ant service, whereas this scheme does not. · Indeed, I apprehend that this scheme, if approved, would only be adopted as a preliminary to ultimate amalgamation.

METHOD OF CARRYING AMALGAMATION INTO EFFECT.

Assuming that it is decided to amalgamate the two Territories, the next question to consider is, how the amalgamation is to be carried out. The Territories affected are­ (1) Papua, and

(2) the former German territory, known as the "Old Protectorate," including-( a) Kaiser Wilhelmsland, on the mainland of New Guinea; (b) The Bismarck Archipelago, including the Admiralty Group

and other neighbouring islands ; (c) The German Solomons-Buka ·and Bougainville.

61

I advise that the amalgamation be effected as . 1. As soon. after the declaration of peace, an officer be

appomted to administer the c1v1l government, first, of the former German terntones ; and afterwards, of the amalgamated territory. This officer I refer to hereafter as " the Governor." 2. The few · troops engaged on purely military duty to be

those engaged in civil administration, e.g., police, Customs, &c., to remam. They will continue to be soldiers and will be under the direct command of the 0.0. troops. The O. C. troops will carry out details of administration under the direction and ·control ofthe Governor. It may be necessary to give the Governor a military rank for this purpose, but if it is not necessary, it is undesirable,

3. Proclamation to issue thai after a certain term, say three or six months, the German territories shall form part of Papua and be subject to the laws in force in Papua, i.e., the Papua Act, as well as local Ordinances, Regulations, existing rights (e.g., rights under contracts of ser-vice) will continue. During the term of three or months the existing laws of German New Gui.nelit will contiuue in force, but laws which appear to be repugnant to Australian the so-called disciplinary

should cease on the issue of the proclamation. ··

l a.m that there is power t o issue such a proclamation without an Act of Pa:diame:ut; if not, it might be 11ecessary to continue the existing laws until the am.endn1ent of the Pap11a Act which is suggested in paragraph 5. 4. On the expiration of the term mentioned the proclamation will come into for ce,

and t he whole· will become one Territory uri.der the administration of the " Governor " ; the remaining troops will be discharged from military service, but will, of course, be eligible for appointment in the civil administration. Section 14 of the Papua Act gives the Governor"General power to authorize the appointment of deputies of the Lieutenant-Governor. This power should be exercised, so as to enable the Governor

(who, when the proclama-tion takes effect, will administer the Government of Papua as well as of German New Guinea) to concentrate his attention temporarily on the former German t erritory if he consider it necessary to do so. 5, A Bill to ;:tm.eud the Papua Act should be introduced as soon a.s convenient. I suggest that the amendments sbould, il1

(a) define the Territory as meaning the amalgamated Territory, the l\fundatory Territory the former German possessions ; (b) declare that the Mandatory Territory is accepted by the Commonwealth as a Territory under its authority and for the purposes of administration

and control shall be deemed to be one . Territory with the Territory of Papua, under the name of (say, Papuasia, Territory,

Australian Pacific Territories) ; · (c) provide that the accounts of revenue and expenditure shall, so long as the shall order, be kept separate;

(d) declare that subject to the laws of the mandate, the laws of shall continue in force until other provision is made ; (e) the Executive Councillors, now limited to six1 may be increased to the number considered desirable for administration; (f) t he number of non-official members . of the Legislative Council may be

raised from three to five, with an additional member for every thousand white residents above 5,000 ; (g) three of the five after a pre cribed t erm of years, say five, or after the white resident population exceeds 5,000, shall be elected; (h) power to the Legielative Council to make Ordinances for the peace,

order, and good government of-(1) The Territory ; ·

(2) 'rhe Mandatory Territory exclusively; (3) That part of t he Territory which is not under ;mandate exclusively. This enables t he Commonwealth Government, through the Legislative Council, to make such modifications of the general laws or to restrict the application of laws to such ext ent as may be necessary for dealing wjth. the Mandatory Territory ..

1599

)

Seat of Government.

German

62

(i) Under the Papua Act 1905, section 41, certain Ordinances have to be reserved for the assent of the Governor-General. To the list should be added Ordinances-(!) limiting freedo1n of intercourse or of trade between any parts of the Territory, or (2) relating exclusively to the Mandatory Territory. . -

(J') Financial Regulations may be made for · the Mandatory Terr·itory exclusively. There may also be other consequential and n1inor amendn1ents. Should the British Solomons be included in the a1nalga1nated Territory, the necessary amendn1ents can easily be made; being a British Protectorate, it will not be subject to the 1\tfandate.

6. A question arises as to liquor licences. Pending the amendment of the Papua Act the existing licences in German New Guinea 1nay be allowed to continue. Under the Papua Act, section 21, " licences shall not be granted in the Territory in excess of the number of licences in existence at the commencement of this Act." A similar provision should be applied to the amalgamated Territory.

7. I would suggest that the "Governor" should be in German New Guinea at the time of the issue of the proclamation. lie should have with him as advisers an officer to be selected from the Commonwealth Service, an officer to be selected from the Papuan Service, and an officer to be selected from the present administration of German New Guinea; these officers would advise him generally, and in particular as to the retention of officers of the German New Guinea administration who may wish to take office under the civil Government, and as to such alterations as may appear desirable in the Papuan legislation and practice as applied to the circumstances of the amalgamated

Territory. These alterations could be made by the Papuan Legislative Council before the expiration of the term mentioned in paragraph 3. A matter that . will require particular attention will be the preservation of rights, e.g., under contracts, wills, intestacies, &c. It would be of very great if an officer of the German New

Guinea Government, with legal training, and a good knowledge of the Territory, were made available for this purpose. It is expected that few, if any, of the matters-referred to would require Commonwealth legislation. The position of the seat of Government is a matter which I think should be left to the decision of the "Governor," with the assistance of the advisers mentioned. It is perhaps desirable that this should be i:J). British Territory, in which case Port Moresby

would, I suppose, be selected. Othervv-ise there is much to be said in favour of Rabaul, which is more central. There is danger from earthquakes at Rabaul, but it is a much finer town, better laid out, and, unlike Port Moresby, situated in a.fertile and beautiful district. It is also at present of-greater commercial importance, though, in this respect, the position may very well be reversed in a few years when the Port Moresby copper mines are developed. As regards' clin1ate, there seems to be little to choose between the two; the Rabaul records show greater extremes, both of heat and cold, than those of Port 1\tforesby, but, on the whole, Port Moresby is probably the cooler of the two, for the greater part of Rabaul is. sheltered from the South-East

Since writing the above I have had the opportunity of reading the very able and interesting reply of n1y colleagues, and I feel that I ought to add something on the question of German missions. This is not one of the questions on which the Commission is asked to report, and there is but little evidence before us on the point, but as my colleagues have had occasion incidentally to express an opinion favouring the expulsion of German missionaries, I feel that, to avoid any possibility of misapprehension, I also should express my opinion, which, unfortunately, is again opposed to theirs. My opinion is that the expulsion of these missionaries is likely to have a disastrous effect upon the religious and educational progress of the natives, and is likely, therefore, seriously to hamper the administration. As to the expected hostility of the missionaries, I do ·not think that there need be any real apprehension on this point; in any case the danger might be met by conferring a power of upon the Governor-General, upon the advice of the officer

administering the Government.

Of course I do not draw any distinction between Catholic and Protestant missions, but I wish particularly to invite attention to the letter of 6th September from Bishop Couppe, much of which applies to Protestant missions as well as to Catholic.

63

(b) THE APPROXIMATE COST OF THE ORGANIZATION OF GOVERN1\1:ENT, AND

(c) THE PRESENT REVENUE AND l\1:ETHODS OF MEETING FUTURE EXPENDITURE. .

16 l

The total expenditure in German New Guinea is given as £241,354, including &venue. military pay and allowances for quarters, rations, &c., and also including a sum of £26,521 for wireless stations, which, under a civil administration, would (I assume) be borne by the Com1nonwealth Government. And the total revenue (from 1.7.18 to 30.6.19) is £143,636; of which £20,970 is for head tax, and would, I presume, under

a scheme of amalgamation, be paid (as in Papua) into a special fund for the benefit of the natives, and £3,136 is for wireless messages, which would be credited to the Commonwealth.

The principal items of revenue are-in1port duties £35,160, export duties £18,596, shipping receipts £20,699, business tax £6,019. I1nport and export duties for the year 1.7.18to30.6.19 show a decrease on the previous year (due probablytoscarcityof shipping) of about £6,000 each. " Shipping receipts " are the freights and passage n1oney earned by the Government steamers which ply from Rabaul to the other ports, such as

Kaewieng and Madang, and would, under the scheme of Commonwealth shipping control which I suggest, disappear. The " business tax " is a tax imposed on storekeepers, tradesmen, and saloon keepers; it would be a difficult tax to collect, it brings in little revenue, and I should recommend its abolition.

A deduction of the head tax, the shipping receipts, the business tax: and the wireless receipts from the total of £143,636 leaves £92,812.

The Papuan revenue for the year 1917-18 amounted (with the subsidy. of £30,000) to £102:594 ; of. which £48,067 is from Customs Duty and Excise. There are no export duties, shipping receipts, or business tax. The rate of import duties is much the san1e in both Territories, except on tobacco and aJcoholic liquors; on these the duty is very much in Papua than in German New Guinea. This appears from the following compar1son :-

Tobacco-( a) Unmanufactured, n. e.i. . . per lb.

(b) Unmanufactured; but entered to be lo cally manufactured into-l. Tobacco or cigarettes . . . . per lb.

2. Cigars ,

(c) Manufactured, n.e.i. ,

(d) Trade-1. Entirely grown and manufactured in Australia . . per lb. 2. Made in Australia from imported leaf 3. N.E.I. Cigars . .

Cigarettes . . . . . .

Ale and other beer, &c., in bottle and in bulk Spirits . . . .

Wine, sparkling . . . .

. .

Wine, n.e.i., not more than 40 per cent. spirit Wine, n.e.i., more than 40 per cent. spirit \Vine, n. e.i., Australian

Tobaceo Cigars . .

Cigarettes Spirits . .

GJ<..:RMAN NEW GUINEA TARIFF.

Sweet wines, port, sherry, &c. Champagne Other \vines

"

" .. - per gal.

"

per 11:. per 1,000

" per gal.

Beer of all kind! . . . . . . . . . . . . ,

''Other wines," if the price exceeds 14s. per gallon, are chargea 20 per cent. ad valorem . Beer, tobacco. cigarettes, &c., imported for the use of troops are duty free.

£ s. d.

0 3 6

0 1 0

0 2 6

0 3 G

0 2 3

0 2 6

0 3 0

0 8 0

0 8 0

0 1 6

0 17 0

0 15 0

0 10 0

0 ·]7 0

0 5 0

£ 8. cl.

0 1 6

1 0 0

010 0

0 9 0

0 5 9

0 5 9

0 3 0

0 1 0

J

64

In w_y opinion Fapu.an duty on (which wa$ raistJd in order

to protect a new industry which is no longer in existence) should be reduced to previous rate of ls. 9d. ; with this exception, I am of opinion that the Papuan duties should be fpr the combined Territory.

There are no export duties in Papua ; in GermanN ew Guinea they are as follows :-

l. Copra 2. Trepang-Class A · Class B

Class C

3. Tortoise shell, iu pieces 4. Tortoise shell, genuine wb.ole 5. Mother of"pearl shell-(a) Two ·flat shells together (gold lips)

(b) Other mother of pearl shell 6. Birds of Paradise 7. Crown. pigeQp.s ..

8. Qasi$Qwa;ry or feathers 9, HeroiJ,

.. ton

"

" . . pel' lb,

each

pe:r ton

" each " per lb. ,

£ s. d.

1 5 0

5 0 0

2 10 0

1 10 0

0 2 6

0 10 0

5 0 0

1 0 0

1 0 0

Q 5 0

0 6

25 0 0

Of these 7, and 9 may be neglected, as these birds will presumably be protected, and the duty on copra should, I think, be reduced to £1 a ton. A duty of, say,

1!d. per lh. should be put on rubber, and, say, 5s. a cwt. on cocoa. Similar duties should be imposed upon other exports as they become of sufficient importance. The German New Guinea returns show the following export figures for the year 1918. The returns for the six months ending 30.6.19 show a diminution,

but this is due to scarcity of and future returns, at any rate of copra, should

be considerably greater. · · ·

E4ports for year ending 31st December, 1918 :-. Copra, 21) 79 tons, which would give an export duty of £21,179 at the suggested rate of £1 a ton. Cocoa, 172tons, which would give an-export duty of £860 at the suggested

rate of 5s. a cwt. Rubber, 18 tons, which would give an export dutyof£252 at the suggested rate of lid. per lb. . Copra jn 1920 should give an export duty of £25,000 (at £1 a ton), which in the next eight or ten years will perhaps increase to £50,000; cocoa and rvbber may also be expected to increase, hut to what extent it is impossible even to conjecture. I am leaving the export of shell out of eonsideration, as the movement js so uncertain; 563 tons were exported in 1918.

In Papua · the plantations are, with £ew exceptjons, quite young, and are only just beginning to bear. The export of copra this year is expected to amount to 5,000 tons, and that of rubber to 250 tons; these figures should increase in eight or ten years to over 20,000 and 1,200-giving a revenue of about £40,000 in addition to whatever may be obtained from copper and copper ore, on which I should advise the imposition of a light duty. There will also be a small revenue from sisal her,np and other exports. The Papuan revenue from Customs amounted in 1917-18 to £48,000 ; the proposed reduction of the duty on tobacco would bring this down to about £40,000, but this should be ;more than balanced by the normal increase of trade. The import duties in Gern1an New Guinea amounted to £35,000; under the proposed Tariff the revenue from this source might be safely estimated at £60,000, bearingin mind the facts that

(1) an increase in wages will cause an increase in the purchasing power of the native population, and (2) the officers of the civil government, unlike those of the military administration, will pay duty in the ordinary way. · ·

Thus the total amount to be immediately expected from import and export duties would be-Import duties £108,000

Export duties £35,000

The revenue, apart from import and export duties (omitting as before head tax, shipping, business tax, and wireless receipts) amounted in German New Guinea to nearly £40,000 and in Papua to £24,000; the difference is largely due .to the difference in fees,

65

hospital receipts, of stamps, native la?our, fees, &c. Under amalgamation, the revenue, apart from Import and export duties, may safely be put at between £50,000 and £60,000. This gives a total revenue of about £200,000, which should tend to increase ; the total expenditure for the two Territories is at present nearly £320,000 (deducting , the amount of £26,521 for wireless stations). A military administration is necessarily more expensive than a civil, and amalgamation should be considerably cheaper than separate administrations; the question is whether the expenditure can, without loss of efficiency, be brought the revenue.

160 3

Intimately bound up with this question is the question of subsidy. A comparison subsidy. is sometimes made between Papua and Java, and the wonderful success of Dutch rule in the latter colony is held up· as a sort of object lesson to emphasize the comparatively , slow development of the former. The comparison is of course unfair, for in Java the Dutch-had to deal with a race who had long been under the influence of Asiatic civilization, whereas in Papua Australia had to deal with natives who, partly from the accident of their ,geographical position and partly from their history, had remained almost on the bedrock of savagery. The ·comparison should rather be made between the Dutch and British possessions in New Guinea, and in that case would be wholly favorable to the British. " Never said Sir William MacGregor in 1891, speaking of New Guinea, "has any systematic attempt been made to bring into the paths of civilization and industry a race covering so large an area and so far behind other aboriginal races in civilization and political organization. · It is quite certain that the Papuan, left to himself,

would not for ages to come have worked out on his own account the stage in civilization reached by the Polynesian. New Guinea seems to have been left behind, ignored by the rest of the settled world." Under these circumstances it is hardly to be wondered at that a subsidy has been found necessary both in Papua and in German New Guinea. It appears from German statistics that the Imperial contribution to Gennan New Guinea (including the Island Protectorate, i.e., the Marshalls, Carolines, &c.) amounted in 1913 to £85,850; the Papuan subsidy has been £30,000, and the excess of expenditure over revenue under the military administration (which necessarily is more expensive than a oivil government) has been considerably more. The question is what subsidy, if any, will be required in ·the future.

The evil of a subsidy is that, instead of being appreciated as an act of generosity, it may come to be regarded as a matter of course, as something which can be claimed as a right; and claimed indefinitely. To establish law and order throughout the Territory, to maintain schools everywhere for the education of the natives, · to provide for the

sanitation of all the villages, necessitate the expenditure of a very large sum of money, and to examine thoroughly all its possibilities, agricultural, mineral and timber, and to construct roads and perhaps railways through the Territory, would cost still more. All this could be done, perhaps, in a few years if unlimited money were available; but under existing circumstances we must be more moderate in our hopes, and we must be satisfied if these things are done very imperfectly even after a long time, provided that adequate facilities are afforded for the development of the country and that reasonable provision is made for the improvement of the condition of the natives. .

There seem to be good grounds to expect that, if reasonable freights and a sufficient shipping service are offered, development will (in spi'te of any initial check from causes which I have mentioned) continue to advance until perhaps eventually the final limit of the labour supply is reached. When that will be it is impossible to say ; but it may be expected that, as labour becomes scarcer, employers will by degrees contrive to do with less, so that development may still extend, although the number of labourers may' not increase in proportion. Thus one may expect an increase (though not necessarily a

continuous increase) of production, and consequently of export and import duties for many years to come ; and this is, of course, very material in connexion with the-amount of the subsidy. There ar:e reasons which will make expenditure higher in the future than it has been in the past. There is, for instance, the increase of salaries, which is a necessary result

of the increased cost of living, and the increase in cost of material, both of which will affect both Papua and the former German Territ ory, and there is also the provision in the Mandate that all labour mu t receive adequat e remuneration. At present in both Territories roads are, in some inst ances, cleaned and repaired by native labour without

payment, and this, I presume, will be impossible in the future. F.1334.-5

-66

The expected rise of will cause an increase of expenditure in Gern1an New Guinea on all works upon which native labour is employed. This cause will not operate in Papua, for the usual rate of wages there is already lOs., but it will have considerable effect in the German Territory, where a large number of nartives are employed on public · works at a low wage. Some of these are works of an rather than an economic

nature, and in a British colony would not have been undertaken until the government had become self-supporting; but, as they are in existence, they have been careful1y maintained, and cannot be allowed to fall into neglect. ,

On the whole I advise that a subsidy equal to the pres-ent Papuan subsidy (£30,000) be allowed to the amalgamated Territory, but only temporarily, and upon the understanding that it will be discontinued when the administration can do without it­ Loan for public perhaps in five or ten years. Further, I advise that a sum of £200,000 for public works

be advanced to the Government of the amalgamated Territory in such instalments as

· may be desired by that Government, each instalment to carry interest from the date of the advance. This advance will, for instance, permit the construction of wharfs at Rabaul and elsewhere, and of such buildings as may be necessary for the accommodation

Government a teamer.

of the amalgamated service. It would also be necessary to provide a steamer for official work. A suitable vessel might be given, or sold, by the Navy for the purpose. If it were necessary to build, a further £30,000 would be required in the first year. The cost of the vessel's upkeep would, of course, be borne .by the revenue of the Territory.

Beyond this I do not think that any financial assistance will be necessary. An estimate of expenditure naturally falls under two headings :-Salaries and contingencies. The salaries in Papua are admittedly too low, and must be raised in any case, so they cannot be taken as a standard for the salaries of an amalgamated Territory, more especially as one of the objects of amalgamation is to make the service attractive to men of ability and ambition; and, on the other hand, those of the military administration cannqt be taken either, as the arrangement of the service is necessarily different from that of a civil Government.

The details of the estimates of expenditure must be left to the officer who is to administer the governll0ent o·f the Territories, for it 1 must be for him to decide (subject, of course, to the approval of the Commonwealth Government) what officers he requires and what salaries they should receive; ·but though it is impossible to for.ecast the details,

one may suggest a general scheme. The total revenue, with the subsidy of £30,000, will amount to, say, £230,000 . . This I should divide roughly into, say, £110,000 for salaries,. and £120,000 for contingencies (including. wages of police and other natives). This is admittedly a small sum for

but it must be remembered that the suggested loan of £200,000 will

provide for all important new public works for some years. With about £110,000 for salaries it is possible to provide fo::r two Judges and a Crown Law Officer, and seven· other administrative Departments-the Government Secretary's Department, the Treasury, Customs and Postal Department, Lands and Survey Department, Agriculture and Mines, Public Works, Native Affairs, and Medical Department-each under a head drawing from £700 to £1,000 a year, and each provided with a staff sufficiently well paid to attract competent men.

This sum will also provide for eight District Commissioners, at an average salary of £650 ; sixteen Resident Magistrates, at an average salary of £425; 24 Assistant Resident Magistrates; and 24 Patrol Officers. Also for a Government Agency in Sydney.

The cost of the Departments would be, roughly speaking, as follows:­

Central Court . . . .

Government Secretary 's Department Treasurer's Department Land and Survey Agriculture Public Works Native AffairE; Medical

Total

£

4,500 11 ,000 21,000 8,000

6,750 9,500 6,250 10,500

107,500 .

67

To this must be added between £4,000 and £5,000 for the Department of the Governor, including the Government Agency in Sydney, giving a total of, say, £112,000. Appointment to the service should be made by the Department of the Commonwealth Government administering the affairs of the Territory, by the officer administering the government of the Territory, or by the Agent for the Territory in Sydney. ·

So far ai> possible only young men should be appointed. Men over the age of 30 and married men should, as a rule, not be selected as clerks or patrol officers. Natives should, where. it is practicable, be used for routine clerical \vork and skilled rnanual labour. , · ·

Eventually a system of cadet service, and of adrnission ·by examination, should be adopted, but not , I think, at present. .

(h) THE ACTION NECESSARY FOR THE PURPOSE OF TRANSFERRING TO AND RETAINING UNDER BRITISH OWNERSHIP THE OWNED PROPERTY OF GERMANS.

I do not understand, from the terms of the Commission, that we are asked to express an opinion whether German-owned property should be resumed by the Commonwealth, but rather what should be done with it " in the event of it being decided to resume that property."

The view which I take depends some extent upon whether the decision is to resume the whole of the property, or only part. His Excellency the Administrator, in his letter of lOth October, distinguishes between the four big companies, i.e., the Neu Guinea Compagnie, the Hamburgische Sudsee Aktien-Gesellschaft (known as the

H .S.A.G. ), Hernshein and Co. Aktien-Gesellschaft, and the Norddeutscher Lloyd, with their subsidiary companies, and the smaller owners, whether individuals or small companies. The subsidiary companies which he enumerates are :-

- Area Held. .. Area Planted. Value.

Hectares. Hectares . £

H. R. Wahlen and Company . . . . .. 5,718 3,500 239,350

Kalili Plantation Company . . . . . . .. 1,580 965 53,890.

Kleinschmidt Company . . . . . . .. 1,115 100 12,500

Bremer Sudsee Company . . . . . . .. 1,000 569 1,333

Mioko (Deutsche Handels, &c., Gesellschaft) . . .. 337 65 2,500

German South Sea Company of Talasea . . . . . . . Unknown .

Bismarck Archipelago Company . . . . . . .. 1,9 77 423 32,500

Ap.dexer and Merzenberger . . . . . . . . Unknown .

Bopire Syndicate . . . . . . . . . . 1,411 416 35,000

Yulderup Company . . . . . . . . . . Unkno wn .

Schluter .. . . . . . . . . . . 100 40 1,750

.

Of the ·smaller owners, as distinguished from the big companies, the Administrator says:-" In the majority of cases these planters are, although they are Germans, a good type of settler, who in pre-war days were willing to run the risk of an unhealthy climate, and uncomfortable and rough mode of living, and with or without financial help, worked hard to force his plantation to a bearing stage. I submit that such men individually can do little or no harm to administration. They are very adaptable, and will readily conform to discipline, and prove useful citizens, with a vested interest in the Possession.

I would recommend that all such private owners be permitted to continue in undisturbed occupancy of their present interests."

I saw and heard nothing during the time (about two months) that I was in t he Territory which would make me disagree with what the Administrator says, and it seems to me probable that the task of administration will be facilitated if these private owners are allowed to remain in possession of their estates.

I apprehend, therefore, that the decision of the Commonwealth may be on the lines of General Johnston's recommendation.

16()5

68

There are thus alternative contingencies to consider-

(1) That the Government may decide to resume only the property of the four big companies and their subsidiary companies; (2) That the Government may decide to resume all private property at present in the possession of German owners. -

Nationalization. . In either case, I advise that the property of the four big companies and their

subsidiary companies be nationalized, and be carried on by the Commonwealth Government as a Government business. On this point I should like to refer to the opinions expressed by the Administrator in his letter of lOth October. General Johnston agrees with my view that the plantations should be nationalized, or, as he expresses it, "handed over to a plantation expert, who might have full power to instal managers, overseers, and assistants," but he advises this only as a temporary expedient, with the view of eventually disposing of them to private purchasers. My advice is that all the property resumed (including, of course, plantations) should ren1ain nationalized and should be managed by the Government in ·the public interest.

The Administrator says in the same letter: "Each company should be placed in compulsory liquidation, their assets seized by the Administration, and the companies recompensed by means thought suitable by the Australian Government. . . . . If this suggestion is acceptable, there are several methods by which conversion could be obtained, and although I do not think it advisable to enlarge on any one particular scheme at this juncture, I would emphatically qbject to the possibility of such big German interests being bought up by one syndicate, even an Australian or an English syndicate, because, although we might be assured of British or Australian sympathies by British or Australian syndicates, the monopoly would still be as powerful as at present. Workable schemes can be easily hatched by professional men who study such questions ; but I believe it will be found that the interests of each company could be cut into three parts-one comprising plantations (generally properties scattered in various parts of the Possessions; the second, general storekeeping and trading departments; and the third, financial transactions entirely. The latter could be handed holus-bolus to the Common­

wealth Bank, which might for a period of years be guaranteed against loss 9n any transactions considered doubtful; and the Commonwealth Bank would be able to nurse the great majority of such accounts to a self-supporting basis, or a basis from which they could be unloaded on to individuals or companies formed with the object of their acquisition. The storekeeping or trading portions of such companies coul4 be sold by tender to Australian trading concerns, and would, I am sure, prove attractive and most profitable business." ·

The area of planted land held by the New Guinea Company CN eu Guine-a Com­ pagnie ): the H.S.A.G., a:nd Hernsheim and Company, amounts to 15,600 (nearly 38,500 acres), valued by the owners at £1,275,000. The Norddeutscher Lloyd has, I believe, no plantations; the position of this Cornpany is pointed out by the Administrator in his letter of lOth October. They own, he says, "the greater part of the land in the township of Rabaul, which they have leased to various individuals. They own our only wharf and various on the foreshores near the wharf, all of which are absolutely essential for the interests of the Administration. I am anxious to agaiiJ. emphasize my confirmed conviction-the -future of Rabaul will be harried and curtailed if its development remains as at pre&ent, a most valuable asset in the shape of unearned incren1ent for theN orth German Lloyd."

The subsidiary companies have a planted area of something over hectares, more than half of which (3 ,500 hectares-8,750 acres--valued at is held by R. H. vVahlen and Company. The total V·alue of these subsidiary plantations is thing over £380,000.

The property of all these companies can, as General Johnston says, be divided under three heads :-(1) -Plantations. (2) and trading; and

(3) Financial transactions.

The last-named could, as he suggests, be handed over to the Commonwea lth Bank, but· I think that it would be found that (1) and (2) are· so closely connected that it would be impossible to SBparate them.

1607

69

I that a Board be. appointed of.three members possessing.expert knowledge of (a) planting ; (b) storekeeping . and trading ; and (c) general bus1ness and finance respectively, and that the plantations and the storekeeping and trading business be handed over to them to manage in the public interest. Very high salaries should be offered for these positions so as to attract the best men- in fact, there need hardly be a ljmit to the salary, so long as the best men are obtained, for the business would stand it. It is improbable that a real expert in planting could be found in Australia, and it would be necessary to get a man from elsewhere, probably from Ceylon or the Federated Malay States. .

I would advise that a wide discretion be given to the Board as regards the management of the plantations and the storekeeping and trading business, which: like a private business, would be run to make a profit, and, like· a private business, would be subject to the local Ordinances relating to labour and other matters, and would pay

import and export duty like any other company; and that they have a free hand in the appointment and dismissal of managers, overseers and other officers. Their appointment shquld, I think, be for a term of years, with a prospect of reappointn1ent. I need hardly add that, if it is decided to nationalize these properties, the Board

should be appointed without delay. · ·

The net yearly return to be expected from an acre of coconuts in full bearing may be taken at about £5; this is a low return at present prices, and is estimated on the basis of £20 a ton in the Territory. Taking this rate of return, the planted area of the big companies and the subsidiary companies should give a net income of n1ore than £200,000 a year; and this is, of course, in addition to the income which may be derived from trading and other sources.

There is an enormous area of land in the possession of these companies which has not been planted ; for tb.e New Guinea Company has a total area of

148,975 hectares, of which only 8,887 are planted, leaving an .unplanted area of no less than 140,000 hectares, or 350,000 acres. Much of the unplanted land is doubtless not worth planting. I recommend that it be left to the Board to decide what should be done with it-whether it should be planted or abandoned.

If, on the other hand, it is decided to resume the whole of the German-owned properties, I should advise, as before, that the properties of the big companies and the subsidiary companies be and also the properties of the smaller owners

the planted area of which exceeds 400 hectares (1,000 acres). These, according to the returns, amount altogether to nearly 5,000 hectares. Other prpperties (i.e., properties of smaller owners, of which the area does not exceed 400 hectares) should be leased to individuals or to private companies.

In what I have said above, I have not included the property of missions or missionary societies, as by Article 438 of t he Treat y of Peace t his property is to "continue to be devoted to missionary purposes."

LAST PART OF (i) AND (k) "THE REGULATIONS NECESSARY :FOR THE CONDUCT OF TRADE IN THE FUTURE" AND " THE

STEAM-SHIP COMMUNICATION WITH THE TERRITORY, AND THE ACTION NECESSARY TO SECURE REGULAR COMMUNICA-TION IN THE FUTURE.'' .

The questio:r;:t of " the steam-ship communication with the Territory and the action necessary to secure regular communication in the future " groups itself naturally with "the regulation necessary for the conduct of trade in the future." According steamer to the letter of the German merchants the Territory before the war " enjoyed regular war.

steamer connexion with-(a) Australia (Brisbane and Sydney), four weekly ; (b) Manila, Hong Kong and J apan, four weekly ; (c) Amboina, Macassar, Batavia and Singapore, six weekly.

The steamers did not only call at Rabaul, but in regard to the service under (a) and (b) also four weekly at Madang and eight weekly at Maron, and were to call from November, 1914, also eight weekly at lVIanus. As to the service under (c) Eitape, Potsdamhafen, Madang, Finschhafen, Morobe, Rabaul, Witu K aewieng, were called at both inwards and outwards." The freight rate, according to the letter, was a m.aximum of 55 marks

(55s.) to Europe and 20 marks t o_ Sydney.

Present connoxion and freights.

70

Since. the outbreak of the war, shipping communication has' been limited to the sole service with Australia, and freights have risen from 20s. to 50s. from Rabaul to Sydney, and inter-island freights have also increased. It is doubtful whether, without a very large subsidy from the Commonwealth, freights could, under Australian condi­ tions, be reduced to. anything like those which prevailed between the Territory and Austra.lia before the war.

It is also doubtful whether any Australian firm could provide the shipping necessary to carry the total exports and imports of the amalgamated Territory.

It must be remembered that much of the agricultural produce goes eventually to Europe, part only' being utilized in Australia, and that it is, therefore, to the interest of planters to establish as direct a communication with Europe as possible. The Adminis­ trator, in an official letter to the Cornmission, dated lOth October, puts the position very clearly :-of the " Our present shipping facilities consist entirely of a line of small steamers, three of which are under

AdmJmstrator. .2,000 tons and t wo others of about 1,000 tons, which sometimes visit our ports. All of these are owned -··by Burns, Philp and Co., who have a complete monopoly over transport to and from New Guinea, and

supply a horseshoe service fr om Sydney via Ports-Rabaul to Sydney. No Island produce is permitted to be carried, except in British ships, to Australia. . . . . We are compelled to purchase all our

requirements from Australia, and to send all our produce to Australia, from whence it may be transferred to other parts of the. world. It is essential we should establish shipping arrangements with the East, preferably with Singapore, and that facilities should be given to enable. us to obtain all our Eastern require­ ments direct fr om the producers or manufacturers in the· East, and have same shipped by the shortest possible route to Rabaul, and avoid existing conditions, which insist that all such Eastern requirements should be carried past our door, and taken an additional 2,000 miles at a most expensive freight to Australia, where we are compelled to purchase such goods from a Sydney merchant, paying him the middleman's profit, and then ship those goods from Sydney to Rabaul, payinz up to 50s. per ton freight for 2,000 miles.

We are compellea to send all our produce to Sydney, at least 2,000 miles off the direct route, a,t a freight of, as I say, 50s. per ton. In Sydney we are faced with expensive ·t ranshipment charges, an·d then our produce is sent to England Europe by the most expensive and longest route-I mean longest from

Establishment of service by Commonwealth line of

Rabaul. ·

I strongly advocate shipping facilities, which will enable us to obtain all our requirements first hand from the East, brought to our door by the quickest means. I claim we desire to ship all our produce, which is intended for England and Europe, to Singapore, if a direct line of steamers fromRabaul to the destination of such produce is not obtainable. I venture to submit the present position, w)lich may have been necessary during war conditions, would be utterly impossible during peace time, and that unless we are given sufficient freedom to take advantage of the quickest and best means to our markets, these Possessions would

be unreasonably hampered for the benefit of a few Australian firms whose headquarters will be found in Sydney. In other words, the future progress of these Possessions would be hampered in order to find profits for Sydney merchants. The nationality of the ships which bring our produce from and take our produce to the East is a matter which could be controlled if Parliament in its wisdom thinks such control necessary; but any shipping firm which gives us these facilities will open great possibilities to late German New

Guinea."

Foreign shipping may, I presume, be excluded from the Territory, but hardly British .shipping carrying cargo tO" and from a British port as, e.g., Singapore; and British shipping companies using coloured labour will always successfully compete with Aust ralian shipping companies regulated by Australian conditions, more especially if the British ships proceed to a port which is 1nore directly on the route to Europe, the final destination of much of the cargo (except perhaps minerals) which is to be carried from the Territory.

Thus the trade of the Territory is likely to be diverted from Australia, a result which, from the Australian point of view, is certainly not to be desired.

To o'Qviate this result I advise that the trade of the Territory (including the inter-island trade) be taken over by the Commonwealth Government line of steamers. I do not presume to enter into details, which can be settled, without any assistance from me, by the officers charged with the management of this line, but I would suggest that the vessels necessary to cope with the increasing cargo and passenger traffic of Papua and the German territory be procured, and the line established without delay. ·

There can be no doubt whatever that the venture will be a success, if iny sugges­ tion as to the nationalization of the German plantations is acted upon, for the stean1ers will then always be sure of back loading of copra, cocoa, &c., and will be in a position to offer favorable rates of freight to the planters of Papua and to such private planters

as may remain in German New Guinea. .

71

But even if the plantations are not. nationalized my advice would be the same. Under the present system of high freights and scanty shipping it is improbable that agriculture either in Papua or in German New Guinea can ever be as profitable as in other tropical countries, but, with · reasonable freights and regular_ communication by means of the Commonwealth steamers, it may. ·

If the plantations are nationalized there is no difficulty about keeping the trade of the Territories with Australia, but if they are not, it may be necessary to extend the Commonwealth line to Singapore. The advantages of the Singapore connexion over the Australian are obvious, and it may be, as I have already said, that the territorial trade will be diverted to that port. In that case, I would suggest the extension of the line from Port Moresby or Rabaul to Singapore, and possibly to other Asiatic ports, so that at the carrying trade of the Territori!3s. may remain in Australian hands.

1609

. The inter-island trade in German New Guinea at present is carried o.n by the mih1tary administration by means of the steamers Medang, Meklong, Sumatra and Siar. rade. With reference to these steamers, the King's Harbor Master, Captain Colhoun, says in evidence : '' As regards running the vessels under a civil administration it depends

where they would be sent for trade. I am sure that they could be run at a profit. Our heavy expenses for repairs have, of course,. prevented them from actu[tlly paying." These vessels appear to be in some respects unsuitable, and it would be for the officers of the Commonwealth line of steamers to decide whether it would be desirable to retain them. They are, it is said, "German prizes, and the property of the Admiralty."

(Letter from the Administrator of 22nd October).

With reference to these steamers the 'Administrator in the same letter states:-" In the near future, it is probable that planters might concentrate their produce at Kaewieng, Madang, Kieta and Witu, where large steamers could load direct for Australia or other over-sea ports; but there will always be a considerable amount of freight to be carried from similar ports to those already mentioned, and the aistribution of supplies received from overseas will also provide cargo for inter-island trade. If Administration continues to own and control steamers engaged in inter-island trade, it would,

of course, compete with private enterprise, and if private enterprise -secured the serviees of capable energetic masters, with a monetary interest in the success of their vessels, I think Administration or Government control, if charged with all overhead charges, would suffer in competition."

His Excellency, however·, in expressing the opinion that the Government would suffer in competition with private enterprise, was not considering a scheme such as I suggest, under which the German-owned properties would be nationalized. Under such a scheme there would be little to fear from competition, for the Government steamers could always count upon a freight of stores and other requisites for their plantations and back loading of their own copra, &c., on the journey ; and, in any case,

even if the properties are not nationalized, and there is competition, there is no reason to believe that the Government steamers could not at least hold ·their own. In conclusion, I may summarize my advice briefly as follows :- Conclusion. 1. In any event, whether the German plantations are nationalized or not,

and whether the Territories are amalgamated or not, I advise that the Commonwealth line of steamers be extended. to New Guinea and the. adjacent islands, including the inter-island service. 2. If the plantations are not nationalized there is a danger that the trade

of the Territory may be diverted to Singapore, and I advise, in that case, that consideration be given to the extension of the Common­ wealth line from Port Moresby or Rabaul to Singapore and other Asiatic ports. ·

72

Recommendations by the Chairman.

My are as follows :-

1. As to (a) and (Z), I advise (i) that the German Territories, and also the British Solomons (if the control of these islands is transferred to the Commonwealth) be administered as part of the Commonwealth Territory of Papua; or if this be disapproved, (ii) that these Territories be kept separate from Papua for the purposes of legislation an9. internal administration, but that there should be one officer to administer both governments.

2. As to (b) and (c), I advise that the approximate cost of the government will be £230,000 per annum; I recommend that £200,000 of this amount be raised by local taxation, principally by export and import duties, and that a . Commonwealth subsidy be granted of £30,000 per annum. I also recommend a loan (at interest) of £200,000 for public works.

I advise that the subsidy be only temporary, and be withdrawn when the Territory can do without it.

A Goverment steamer should also be provided.

3. As to (h), I advise as follows :-(i) If only the properties of the four big companies and the subsidiary companies are resumed, I advise that all the properties resumed be nationalized and on by

the Com:r;nonwealth Government in the public interest.

(ii) If all the properties are resumed, I advise that the

properties of smaller owners, of which the area does not exceed 400 hectares, should be leased to individuals or to private companies; but that all other properties be nationalized and carried on by the . Comn1onwealth Government in the public interest as in (i).

4. As to the last part of (i) and (k)-(i) In any event, whether the German plantations are national­ ized or not, and whether the Territories are amalgamated or not, I advise that the Commonwealth line of steamers

be extended to New Guinea and the adjacent islands, including the inter-island (ii) If the plantations are not nationalized there is a danger that the trade of the Territory may be diverted to Singapore,

and I advise that, in that case, consideration be given to the extension of the Commonwealth line from . Port Moresby or Rabaul to Singapore and other ports.

(Sgd.)

Melbourne, 8th December, 1919.

J. H. P, MURRAY, Chairman,

73

Synopsis of Chairman's Report.

1. Organization of Government.-Three possible policies : (i) amalgamation ; (ii) separate administrations ; (iii) intermediate policy of separate Executive and Legislative Councils with one officer to administer the Government.

A.-Policy of amalgamation likely to be the most successful. Advantages of this policy over that of separate administrations :- · _

(i) Greater economy of administration than if Territories are kept separate ; (ii) efficiency as the result of a large and well paid service ;

(iii) more certain compliance with the native policy approved by the Treaty of Peace.

Policy of amalgamation facilitated by:-(i) the relative geographical position of the Territories ; (ii) the racial characteristics of the native populations, and the stage of civilization reached by them ; (iii) similarity of natural products ; (iv) parity of economic development.

Objections more apparent than real:-(a) the size of the amalgamated territory is less than that of many Crown Colonies. (b) Effects of previous German occupation create the same difficulties under

any system ; some are difficulties more easily dealt w .i.th under amalgamation than by separate administrations; others are difficulties which must be settled by the Commonwealth and not by the local Government. (c) A temporary check to development is possible under any policy from

the probable increase of wages and change in system of recruiting, but not more probable under policy of amalgamation than under any other. Inclusion of British Solomons creates no difficulty.

B.-Policy of separate Executive and Legislative Councils under one officer to administer the Government. Same advantages as amalgamation except as regards (ii), but in a less degree; may be approved as a preliminary stage towards amalgamation.

Method of carrying amalgamation into effect. Proclamation of proposed policy, to come into effect after the expiration of a certain term. Amendment of Papua Act; extension to German Territory.

Seat of Government to be left to the decision of the officer administering the Government and his advisers. German missionaries-retention strongly advised.

2. Approximate Cost of Government-Revenue and Expenditure­ Revenue of the Territories ; comparison of tariffs. Export duties in German New Guinea. Estimated revenue about £200,000 ; sub idy for amalgamated territory to be as at present for Papua (£30,000) and to be only temporary.

Loan for public works ; Government steamer. Estimated expenditure about £230,000; suggested departments and salaries method of appointment.

loll

74

3. Transfer of privately-owned property of Germans-Alternative contingencies ; distinction between (i) four principal companies with subsidiary companies ; and (ii) small proprietors. Nationalization of larger properties advised.

Opinion of Administrator ; danger of monopoly. Method of nationalization. Appointment of ·independent Board. Powers of Board. Properties of smaller 'proprietors, if resumed, to be leased to intending settlers.

4. Future Trade and Steam-ship Communication-Before the · war regular steam-ship communication with Europe, as well as _Australia: with moderate freights. At present steam-ship communication with Europe has ceased; freights to

Australia have more than doubled. ·

Doubtful whether shipping and freights can ever be as favorable as before. Desirability of direct communication with Europe. Opinion of the Administrator. · -

Probable diversion of trade from Australia. _ Suggested remedy by establishment of communication by Commonwealth line of steamers ; with present freights and shipping arrangements agriculture in New Guinea cannot be as profitable as elsewhere.

Final recommendations on the subject of steam-ship communication-:-(i) That in any event the Commonwealth. line of steamers be extended to New: Guinea and the adjacent islands, including the inter-island serviCe. (ii) That, if the plantations are not nationali.zed, consideration be given to

the extension of the line to Singapore and other

Asiatic ports.

(Sgd.)

MelbourneJ 8th Decen1ber, 1919.

J. H . P. MURRAY, Chairman.

Perused and t ransmitted t o the Right Honorable the Prime Minister.

(Sgd.) R. M. FERGUSON,

Governor-General.

16th December, 1919.

1613

APPENDICES.

APPENDIX A.

VICARIATE APOSTOLIC OF· NEW . POMERANIA. VUNAPOPE, 6TH SEPTEMBER, 1919 '

REPORT ON THE CATHOLIC MISSION.

To 1Jf essrs. the A1 embers of the Go-rnmi,ssion appotnted by the Federal Government of Australia for cvn inqu.iry about this G olooy.

GENTLEMEN,

In . the prevision that the m1s.swns of this Colony should tJ::el. objeQt of your inquiri·es·, in relation with the of the conditions of peace, I think it is

an, .mer:-in my qua.lity of Vicar Apostolic

-;-In v1ew of fac:1hta.tmg your task, and also for defeud­ mg the interests of the Catholic mission, to supply you with the following repo;rt :-I.

The .essentia.l cha.racteristios of every Catholic mission are umversally well enough known to dispens·e me from a. lengthy e-xposition. . It iSI u.nde·rstood by Ca.tho1ic missioin'; any te,rritory by from the Holy See, to which

territory 1t sends. missionaries foa:- the teaching of the Gospe,l, and the Catholic Oh ur'ch there.

It appoints the Prefect or Vicar Apostolic, who is obliged to govea:-n it spiritually ana.

tempora:ltly, .1ts 1mmedrate authority. It

choos-es the missiOna.ne,SI, OQ" societies of missionaries, secular or regular, who will ha V·e to exercise there the holy ministry .under the immediate authority of the Prefect or V 1car Apostolic. · These missionaries or soeie.ties have no power at all the administ.ration of

the Ipissio!ll!. ·The properties of the missriou .are the properties of the Catholio Church atta.ehed to the deter­ mined territory-, of which the' Holy Soo is proprietor, and the Prefect or Vicar :Apostolic, the official admin­ istrator, with t,he sa.me capacity whl.ch the hishops. of

t.he whole world have over the properti·es of the,ir dio­ oos.es.. In the most of the countries. of the world the· missionSJ--in regard to their properties1 and the admin­ istratiolli the:reof-en joy cr Moral P ersonality."

This Catholic miss,ion, of which I am the Vicar Apos ­ tolic,. is gov·erned a.ccording to tj.fi!e e1 cdesiastical laws mentwned abov.e . I ts te,rritory indudes now within its limits. New Britain·, New Ireland, N·ew Hanover, the

groups of theJ Echiquier, He1 rmits1 , Admirafty, Duke of Y ock, and S!Oiffie ad j a.cent islands.

II:

Here is a s·hort historic account of the mission : It was on the 25th March, 1881 , that the Holy Soo had as.signed the evangelization of these countries­ then unoccupied-to the Society of the Missionaries of the Sacred Heart, founded. at I ss oudun, Franoo ; and it is Mgr. Na.varr:e who was appointed its first ecclesias­

t.ic:al superior. He. arriv{lld ther E)l in 1882 with some other French mission'aries. In 1885, Germany estab­ lished: her protectorate ov·er this country, and, in 1888, M_g-r. Navarre became the Vicar Apostolic of British New Guinea, and I was appoJnted his succesoo·r in New Britain, with the title of Pro-Vicar Apostolic.

In 1889, the mission of New 'Britain was erected into a vica.ria.te, and I have been aprpointed its Vicar Apos­ tolic. Till 1904 , the most of my m-issionaries were French, and it was then that o:ur religious society­ founded in Germany, on the d·esire of the

Government, some houses of training in view of thi mission-has supplied u with German missionaries who he:came, the more numerou .

iii., .

?ne .cll:n have an idea of the results realized through m1 s-s1 on by the oopy- of last annual report

l ·O the Sacred Col;lgrl8gatwn of the Prop·aganda.. rt

follow S! from it, with .evidenoe that it has been from its origin, and. tl1at it haSI to; become in the future

an important . and factor for the religious: .

m oral and somal uphftmg of the native rac·e, and, in consequence, for the welfare and developme·nt of the Colony. Therefore, the Federal Government, whioh is en tru-sted . with the admi:nistra tion of this splendid

Colony, w1ll have the whole-hearted inte,rost to favour the maintenance• and the' progressive development of such mission, ancl will abst.ain from any measure

towards it whioh would oa us.e the destruction or even be detrimental to it. '

. IV.

Gove·r.nmen:t will not :find any s·etious r:eason

wh1Ch ,....cou1d mduce it to take suoh measure.s, as it will follow from the following remarks, which r-esult from the principles set forth in Article I., a.nd from the

. facts related in the above Articles. II. and ITI. :-1. The Catholic Mission cannot justly be ealled " A German .Mission " · Not in relation to its foundation , vrhich is due

to the sole initiative of the Holy Bee, and was

pr€1vious to the establishment of the Germa:n Pro­ tectorate; N in relcttion to the nationality of its apostolic who, from its origin till to-day,

ha.ve been F'rencl1-Mgr. N ava.rre and m ys1e,Jf. Nor relation to of the society,

to supply it with missionaries, which

society is of French origin, and beeame cosmo­ politan and international, by the fact of its lishment in France, Italy, Belgium, Holland, Eng­ land, America, Australia, Oc:eania., as well as in 'Germany and Austria.

Nor ·even in the strict meaning of the term-in relation to the nationality of vts missionaries who for a long time we,re F 'rench, who now are sented by twenty-seven non-Germans; and beeause

the German missionaries, who a.re in the majority, are not in the miss1 :on in the·ir quality of Germans, but in their quality of Catholic missionarie-s, being dependent as such, not on the German Govern­

ment, but on the H o·ly See', and on the Vicar

A.p,osto-lic, who has heen always who

are obliged by their avocation and under pain of sanctions, to sacrifice their patriotic

or natiOnal feeling for their spiritual mission .. 2. It cannot be said also, under any title, that

the prope1·ties of the mission are Germc u?> proper­ ties. This · would. be oon tradicted, :first, by the principle of ecclesiastical la.w expos.ed in Article I., which says that the proprietor is the Holy S.ee, and

thB administrator, in its name, is the Vicar Apos­ tolic. This is contradicted. also by the fa.ct

exposed in Article II., by which the adminil>trators have always been French. One could not even say that these r ·operties are Qe?·man in origin. In effect, these properties come frOilll the alms of the Catholics of the whole world, especially from annual subsidies of societies known as '' The Holy Childhood '' and '' The Pro­ pagation of the F aith.''

Moreover, the ·German Government has never given subsidies to the mission, and has never

donated any gr ound to it ; all theose have boon

acquired with mission money. v.

It wo uld not be justifiable. to question the loyalty of my German mi sionaries, neither for the past nor for the future. The principles of the Ca.tholic Church con­ cerning the obecfience and the respect due tci the estab­ lished Government and its officials are well kno·w:n. On.

the 16th Deoomber, 1888, in a report to the Governor of German New Guine,a, I express1 ed them in these terms: "The Catholic missionaries, to whatever

na.tionaiity they belong, com:sider as one of the·ir essen­ tial duti·es to a.cc•ept, r:espec:t, and lo':e the ?ove::n.ment of the country in which they exercis·e their m1ms.try, and to work in their sphere of action to make it

accepted, respected, and lov-ed by the natives. Y.ou can then he assured, your Exeellency, of our. entire devot,edne·s:s to the G€1rman Gove> rnment, of whwh we maintain tor he the best auxiliarie,s, in the exercise of our ministry.''

In my name and in the name of my succ.e> s,sors, I do re,new this deda.ration to the representa.tive of the Aus­ tralian Government, wit,hout any fe·ar to see it dis­ avowe

And a.lso it is a fact that, during the war, all have

been faithful to their oath of neutrality, and have

given proof :of ,therir comple,te loyalt;Y How could It b> e ot.herwise from m1ss.1onanes who hav·e ide·als so high Is it not a. fact tha.t they work with

the most sublime disint.erestedness in the seve> ral works of the mission, and, in doing so, for the welfare of the Colony? In eff·ect, they receive no wa?e,

and they get nor th:e mission, :vhwh

proviqes them only w1th . It 1s the

same in relation to our rehgwus soci-ety, whwh sends them· to> us, after it has giv.en them their tra.ining. at its own expense, and which reoeci.ve·s no compensa.twm at all from the mission the re·s.ources of which a.r:e used exclusively for the an.d of

religious and charitabl.e works. F'inally, I will remark tha.t the mission r:eoeives not even a. penny fr'Oim the natives· we think them too poor yet to be ask·ed to con­ tribute 'to the support of the missiona.ries;.

VL

I am not awar.e vet of wh.a.t the Fed·era1

Gov·ernment will t.ake in regard to my

m1ssaona.ries in eonnexion with the peac·e conditions. This incertitude le,av·ers me in gre,a.t anxiety. In t·o prevent, as far a.s it depends upom .m.e, any which would he to the .m1sswn, I thmk It

is to set forth the thr·ee followmg hypotheses, and

to

0

explain what favorable· or prejudicial,

they would have fnr the mission:-First Case.-They will allow m,e to kee'p all my German .and Austrian missionaries, and let me ha.v·e the right to incr·ease their numbe'r according

to the needs of the mission. That would be '!:the quo as tlie war, the mos1 t

.a.ble condition to allow the m1sswn to m.amta.m itse.lf and to progress for the great profit of the natives and of the Colony. Second Cas·e.--They will limit the preceding hy imposing the the V!ca.r Apostohc

should €ndeavour-m the hm1t of h1s powe·r, and by giving him t.h.e to establish

some institutes whwh, bemg situated out of. many, would train missionaries for the missiOn. Tl1is was the condition imposed o·n me by the G-erman Governm.ent, so that I should supply the

mission with German missionaries, which conditiom had be.en fulfilled in 1889 by the establishment of some of our houses of training- in Germany, from which houses , t.en years la.ter, came out all our missionarieSJ.

May I hope that the Australian Gov·ernment, taking in consid·eration .the of. the Colony,

will not be mme exactmg on this· pomt than the German Gorv·ernment. Third Case .-They will allow me t o k-eep all my German missionaries actually om the mis.sion, but they will me, for the. to reoeive

new ones. In this case, the llilsswn would no·t be . able to maintain its actual work, and would be condemned tor instant ruin. In effect, it is impos­ sible to recruit non-German missionaries before ten

years, that is to say before, after having founded such institutes outside of Germany, I could receive the first missionaries from these institutions. The terrible war has made such enormous gaps in

the ranks of the secular and regular clergy. In

France especially, there is extraordinary scarcity of priests, and th:s scarcity has extended to all_ Catholic missions. The institutes of training are now unable to fill up the gaps in the Missions of which they have the charge : a fortiori, they cannot undertake the charge of new missions, and consequently should this mission remain without missionaries and perish, when in Germany, our houses of training are overflowing

with students I then do dare, as a conclusion of this report, to

pray humbly the Federal Government to take into special consideration the rights of the Cath.olic Church upon its missionaries, as well as the true mterests of these Colonies and of the natives, in abstaining from any measure which would be noxious to this Mission,

without having previously conferred with the Holy See, or· its representative, Mgr. Cattaneo, the

Apostolic Delegate in Sydney.

I have the honour to be, &c.,

(Sgd). + LOUIS COUPPE, M.S.C., Bishop of Lire and Vicar Apostolic.

· RAPPORT ANNUEL. SuR LE VrcARIA'l' DE· LA NouvELLE PoMERANIE DU 1 JUILLET·, 1918, AU 1 JUILLET, 1919.

1. Siation.s.

(a) Stations principales 34

(b) Stations sercoudaires 120

Total des stations 154

2. "P erson.n.el.

(a) Personnel blanc 121

a savoir: 44 Pretres (y comp:ris le

V1caire Ap.) dont 1 en conge et 2 appartment a, la Mission des

Marshall. 40 Fr€1res y oompris F'r,eres des

Ecol.es chrertiennes. 37 Soeurs. (b) Personnel indigene 204

a savoir: 22 Soeurs indigenes · 121 ca.techistes et ma.i tres

(a) (b)

d'ecole.

61 femmes- oa.tecilistes et maitresses. d'ecole'.

Tot.a1 ' due personne,l blanc eb

indigene 325

3. Baptemes.

Depuis 1912 35,937

Durant l'exercioo 1,306

-dont 869 d'enfa.nts et 437 d'aduJtes. N ota.-Manquent les resultats des Sltations Livitua, ert Lagogen.

4. D efwnts.

(a) Depuis 1892 .. . 12,816

(b) · Durant Pexercice .. . . . . 720

dont 330 d'enfants et 490 d'adultes, partile.s­ quels. 168 requ tous les Sa.crements.

36 ont requ soulement la Penitence et l'Eucharistie. · 48 ont requ s:oulement l'Extr181me­ Onction .

136 ont requ. soulement le Bap,teme in extremis. 118 sont mort,s sans

APPENDIX B.

EXTRACTS FROlVI T'REATY OF PEAOE

BETVVEEN ALLIES AND ASSOCIATED POW'ERS AND GERMANY, SIGNED AT VERSAILLES, 28TH JUNE, 1919.

PART _ I.

77

THE CovENANT OF THE LEAGUE OF NATIONs.

Article 22.

To those colonies and territorries· which as a con-se­ quence of the late war have ceased to be under the sov·ereignty of the States whioh formerly gov€,rned them and which are inha.bited by peopleS! not yet able to stand by thems-elv·e:S und.er the str·enuous conditions of modern world, there should. be applied the prin­

cipl€1 that the well-b€11ng and development of such people·s form a, sa.ered trust of civiliza.tion and that seeurities for the performanoo1 of this trust should be embodied in this Covenant.

method of giving practical to this

:prmCiple 1s tha.t the tuteJa.ge of such peoples should be mtrust.ed to advanced nations who by reason of their their exp erience or their geographical posi­

can best this r:esponsibility, and who are

w1llm:g to a.ooept 1t, and that this: tutelage should be exerc1s€d by them as lVIandatories on behalf of the League. The ehara.cter of the mandate must d i.Pfe.r a.ccordinO' to the development . of t.he pe·ople,

geographwal s1tuatwn of the territory, its economic conditions, and other similar circumstancl86 co.mmunities f

Turkish h ave reached a stage of deve1opment

wher1e their e1nstence as independent nations can he reoog!lis.ed subject to the rendering of

admims.tratiVe advioo and assistance by a Manda.tory until such time as they are able to stand alone. The .of must be a principal con­

sldera.twn In the sele,ction of the Manda.tory. Other peoples, especially those of Central Africa., are at such a stage that the Ma·ndatory must he respon­ for ad:r;ninistration of the territory under con- .

ditiOns wlnch w1ll guarantee ·freedom of conscience and r eligion, subject only to . J:?ain tenanoo of public

order and morals, the prohihitlOin of abuses such as the slave trade, a.rms traffic and the liquor traffic,

and the prev€ntwn of the establishment of fortifica­ tions or military and naval bases and of military train­ ing of the natives for other than police purposes and the of territory, and will also secure equal

opportumt1es for the tra.de and commerce of other members of the League. There are territori€18, such as South-West Africa ana certain of the South Pacific Islands, which, to

the sparseness of their population, or their small size, or their remoteness from th81 centres of civilization or their geographieal contiguity t

administered. under the laws of the Mandatory as integral portions of its territory, subject to th€l safe­ guards above mentioned in the interests of the

indigftno us population. In ev-ery caoo of mRnda te, the Mandatory shall render to the Council an annual r€,p ort in reference t o the territory committed to its charge. ·

The degree of authority, control, or administration to he exercised by the Mandatory sh all, if not pre­ viously agreed upon by th e members of the League, be explicitly defined in each case by the C0uncil .

A permanE-nt Commission sh all he constituted t o re­ ceive and examine the annual rep orts of the Man­ datories and to advise th e Oo un il on all mat ter r elat­ i ng to the observan ce of the m andate .

lol b

ArtiCle 23.

Subj€ct to and in a.ccorda.nc'.-€J with the provisions of international conventions existing Qlr he·reafter to be agreed upon, the memhe·rs of the League: (a)

(b)

(c)

(d)

(e)

(f)

will endeavour to seeure and maintain fair and huTnane conditions of labour for men, women, a.nc1 ohildr€n, both in th€·ir own countries and in all countries to which th€ir commercial and industrial relations

extend, and fo r that purpos;e will estab­ lish and maintain the ne1 cessary inter­ national organizations; undertake to secure just tmatment of the

native inhabitants of territories under their control will intrust the1 Le·agu·e with the gen€,ral supervision over the ex€cution of agree­

ments n:Jga.rd. to the t.ra.ffio in women and children, and the traffio in opium

. other dangerous drugs j

w1ll mtrust the League1 with the general supervision of the t.rade in a.rms and

ammunition with the countries in which the control of this traffic is necessary in the common interest j \vill ma,ke provision to secur:e and maintain

fre·edom of communications and of transit and €quitable treatment for the commerce of all members of the League. In this

connexion, the special necessities of the regions devastated during the war of

1914-1918 shall he borne in mind j will end·eavour to t ake steps in matters of international concern for the prevention and· control of dis€ase.

PART IV.

G ERMAN RIGHTS AND INTERESTS OUTSIDE GERMANY. Article 118. In territory outside h er European frontie·r s as £xed b? the .Treaty, Germany renounces all rights,

btl.es and pnvileges whateve•r in or over territory whiCh b elonged to her or to h er Allies, and all rights, titles and privilege3 whatever their origin which she held as against the1 Allied and Associated Powers.

Germa.ny hereby undertak.es to recognise and to con­ form to the measur·es which may be taken now or in the future by the Principal Allied and Aswciated Powers, in agrooment wher:e necessary with third Powers, in order to ca.rry the above stipulation into effect.

In particular Germany declares h€r acceptance of the followin g Articles r·ela.ting to certain special sub­ jects.

SEOTION I. GERMAN CoLONIES .

Art icle 119.

Germany renounces in favour of the Principal Allied and A ssociated P ower s all her rights and t itles over her oversea possessions.

A rticle 120.

All movable an d im.mo.vable pr operty in such terri­ tories belonging to t he German Empire or t o any Ger­ m an t ate shall pass to the Government exer cising

authorit y orver such territories, on the terms laid down in Article 257 of Part I X . (Financial Clauses) of the present Treaty. The decision of the local Courts in any dispute as to the nature of S'Uch property shall be final.

Article 121.

The provisions of S.ections I. and: IV. of Part _2, . (Eooriomic Clauses) of the present Treaty shall apply in the case of these territories whatever be the fonn of government adopted for them.

Article 122.

The Government eocercising authority over such terri­ to>ries may make such provisions as it thinks fit with r eference to the repatriat ion from them of German nationals and t o the conditions upon which German subjects of European origin shall, or shall not, be

allowed to• reside, hold property, trade or exercise a in them.

Article 123.

The provisions of Art icle 260 o.f Part IX. (Finan­ cial Clauses) o·f the present Treaty shall apply in the case of all agreements concluded with German n ationals for the construction or exploitatio•n of public works in

the German oversea possessions, as well as any sub-con­ cessions or contracts reaulting therefrom which may have been made to or with such n ationals.

Article 126.

Ge.rmany undertakes to accept and observe the agree­ ments made or to be m a de by t he Allied and Asso­ ciated Powers or some of them with any other Power with regard t o the trade in arms an.d. spirits, and to the matters dealt with in t he General Act o.f Berlin of February 26 , 1885, and the General Act of Brussels of July 2, 1890, and the Conventions completing or :rr.od:­

fying the same.

Art icle 127.

The n ative inhabitants of the former German over­ sea p ossessions shall be entitled to the diplomatic pro­ tection ·Of the Governments exercising authority over those territories.

PART VIII.

REP AR.ATION.

SECTION I. GENERAL PROVISIONS .

A r ticle 23 1.

The Ailied and Associated Governments affirm and Germany a ccepts the responsibility of Germany and her a1lies for causing all the loss and damage to which the Allied and Associated Governments and their natio.nals have been subjected as a consequence of the war imposed upon them by the aggression of Ger ma11y and her allies.

Article 232.

The Allied and A ssoci a ted Gov.ern.men t s- recog nise that the r esouTces of Germany are n ot adequate, after t aking into acc ount permanent di minutions of such resources which will result from other provision s of t h e present Treaty, to make complete reparation . fo,r all such loss and d amage.

The Allied an cl Associated Go vernments, h owever, require, and Germany undertakes, that she will make compensation for all damage do·ne to the civilian popu­ lat ion of t htl Allied and A ssociated P owers a.nd to their property during the period of the belligerency of each ' as an Allied or A ssocia ted Power against Germany by

such aggression by land, by sea, and fr om the air, and in gen eral all damage a3 clefined in Annex I. hereto. ·

78

PART lX. FINANCIAL CLAUSES.

Article 25 7.

In the case of the former' German territories, includ­ ing ooloni.es, protectorates, or dependencies, adminis­ tered by a, Mandatory under Article 22 of :Part I.

(League of Na.tions) of the present Treaty, neither the territory nor the Mandatory Power shall be charged with any portion of the debt of the German Empire or States. ·

All propert.y and possessions belonging to the German · Empire or to the German States• situated in such terri­ to•ries shall be transfet-red with the territories to the lVIandatory Power in its capacity as such and no pay­ ment shall be made nor any credit given to those

Governments in consideration of. this transfer. Fo,r ·the purpose.-> of this Article the property and possessions of the German Empire and: of the German States sh all be d eemed to include all the property of the Cro·wn, the Empire or the States, and the private pmperty of the former German Emperor and otlter Royal personages.

PART X. EcoNOMIC CLAusEs.

SECTION I.

CHAPTER IV.

T REATMENT oF N A'l'IONALS OF ALLIED AND A ssociA1'ED PowERS.

Article 278.

Germany undertakes to recognise any. new nation­ ality which has been or may be acqmred by her

unde·r the laws of the Allied and A ssociated

P owers and in a.coordance with the decisions of the competent authorities of these to

n aturalizatio'll laws or under treaty stlpulat.IOns , an d to r egard such persons as having , in consequence of the acquisiti on of such ne•w nationality, in all respects severed their allegiance to their country of origin .

SECTION IV.

PROPERTY, RIGHTS, AND I NTERESTS.

Article 297.

The question of private pwperty, rights interests in an enemy coun try &hall be settled accordmg to the principles laid down in t his Section and to the pro­ visions of the Annex hereto.

(a) The exooptional war measures and measrures of transfer (defined in paragraph 3 of the Annex hereto) taken by Germany with r'espeot t o the property, r ights and of n ationals of Allied or Associated

P owers, including companies and associations in which they are interested , when Equidation has not been com ­ pleted, shall be immediat ely discontinued or staye:i and the property, rights and interests conoemed

restored to their owners, who shall enjoy full rights therein in accordance with the pro.visions of Article 298. (b) Subject to• any stipulat ions which may

be provided for in t he present Tre aty, the Allied Associated Powers reser ve the right to retain and liquidat e all property, righ ts and· interests belon gin g at the date of the eoming into force of the present Tre·aty to German nationals, or companies controlled by them, within their territories, colonif'.s, p ossessions and pro­ tectorates, including ter ritories ceded to them by the p resent Treaty.

(.

79

The liquidation shall be carried out in . accordance with the laws of the Allied or Staw con­

cerned, and the German owner shall not be able to dis­ pose of such property, rights or interests no1: to sub­ ject them to' any charge witnout. the consent of that State.

German nationals who acquire i]JSO facto the nation­ ality of an Allied or Associated Power in accordance with_ the provisions of the, presei;J.t Treaty will not be considered as German nationals within the meaning of this paragraph.

(c) The price or the amount of compensation in

respect of the exerci,se of the right referred to in the preceding paragraph (b) will be fixed in accordance with the methods of sale or valuation adopted by th P. laws of the country in which th.;> property has been retained or liquidated.

(d) As between the Allied and Associated Powers or their nationals on the one hand and Germany or h er nationals on the other hand, all the exceptioual · ·war measures, or m e asures of transfer, or acts done or to

be done in execution of such n1ea sures as defined in paragraphs 1 and 3 of the Annex hereto shall be con­ sidered as final and binding upon all persons e;xcept as regards the reservations laid down iu the present

T:reaty. (e) The nationals of Allied and A sso ciated Power shall b<; entitled to compensation in respect of damage or injury inflicted upon their property, rights or in­ terests, including any company or association in whioh they are int,erested, in German territo,ry as it existed

on August 1, 1914, by the application either of the exceptional war me1sures or measures of transfer men­ tioned in paragraphs 1 and 3 of the Anne'x hereto. The claims made in this respect by such nationals shall be

investigated, and the total of the oompensation shall be d.etermined by the Mixed Arbitral Tribunal provided for in Section VI. or by an Arbitrator appointed. by that TribunaL This compensation, shall be borne by

Germany, and may be ch arged upon the pr-operty of German nationals within the territory or under the control of the claimant's Staw. This property may be constitu.ted as a pledge for enemy liabilities under the conditions fix·ed by paragraph 4 of the Annex hereto.

The payment o f this compensation may be made by the Allied or A sso ciated State , and the amount will be debited to Germany. (f) Whene,ver a national of an Allied or Associated

Power is entitled to property which has been subjected to a measur.e of transfer in German territory and ex­ presses a desire for its restitution, his claim fnr com­ p ensation· in accordance with paragraph (e) shall be satisfied by the restitution of the said property if it still exists in specie.

In such case Germany shalJ take all neoessary steps to restore the evicted owner to the possession of his property, free from all encumbrances or bur-dens with which it may have been charged after the liquidation,

and to indemnify all third parties injured by the resti­ tution. If the restitution pwvided for in this paragraph

t:lnnot he eff ected, priva.te agreements arranged by the intermediation of the Powers concerned or the Clearing Offices provided for in the Annex to Section III. may be made, in order to secme that the national of the

Allied or A ssociated Power may secure compensation for the injury to in paragraph (e) by the

grant of advantages or equivalents which he agrees to accept in place o f the prop€rty, rights or interests of which he was deprived .-Through restitution in accordance with Article, the price or the amount of compensation fixed by tho

applica.tio'n of paragraph (e) will be reduced by the actual value of the property restored, account being t.aken ·Of compensation in respect of loss of use or

deterioration.

1617

(g) The rights conferred by paragraph (f) are r e­ reserved to owners who are nationals of Allied or Asso­ ciated Powers w-ithin whose territ ory legislative

measures prescribing the general liquidat ion of enemy property, rights or interests were not applied before the signature of the Armistice. (II) Except in cases where, by application of pa-ra­ graph .(!), restitutions in specie have boon made, the

net proceeds of sales of enemy p roperty, rights or in­ ter.ests wherever situated carried out either by virtue of war legislation, o·r by a pplication of this Article, and in gene,ral all cash assets of enemies , shall be dealt with

as follows:-(1) As regards Powers adopting Section III. and the Annex thereto, the said proceeds and cash assets shall be credited to the Power of which the owner is a

national, through the Cle,aring Office established the·re­ any credit balance in favour of Germany result ­

mg therefrom shall be dealt with as provided in Article 243 . (2) As r egards Powers not adopting Section III. and

the Annex thereto, the proceeds of the property, rights and interests, and the cash assets, of the nationals of Allied or Associated Powers held by Germany shall be paid immediately to the person entitled thereto Oil' to

his Government; the pr·ooeeds of the property, rights and interests, and the cash· assets, of German n ationals received by an Allied or A ssociated Power shall he subject to disposal by such Power in accordance with its laws and regula.tions and may be applied in pay­ ment of the claims and debts defined by t.his Article or

p aragraph 4 of the Annex hereto. Any property,

rights and interests or proceeds thereof or cash assets not used as above provided may l:e r etained by t he said Allied or Associated P ower, and if r etained the, cash value thereof shall be de,alt with as provided in Art.icle 243.

In the case of liquidations effected in new Sta.te·s, which ar e signatories of the present Trea ty as Allied and Associated Powers, or in Sta.tes which are not entitled t o sha.re in the reparation payments to' be made

by Germany, the proceeds of liquidatio ns effocted by such States shall, subject to the rights of the Repara.­ t ion Commi under the present Treaty, particularly under Articles 235 and 260, be paid direct t o the

owner. If on the application of that owner, the Mixed Arbitral Tribunal, pro,vided for by Section VI. of this part or an arbitrator appointed by that Tribunal, is satisfied that. the conditions of the sale or measures

taken by the Government of the State in question out­ side its general legislation w.ere unfairly pr ejudicial to t he price obtained, they sh all have discret.ion to award to' the owner equitable cQIIIlpensation t o be paid by t11at State. . (i) Germany undertakes to compensa te her nationals in r espect of the sale or retention of their prope•rty, rights or interests in Allied or Associated States.

(j) The amount of all taxes and imposts upon capital levied or t o be levied by Germany on the property,

r ights and interests of the nationals of the Allied or A ssociated Powers fr-om November 11, 1918, until three months from the coming into force of the present

Treaty, or, in t he case of property, right!:' or interests which have been subjected t o exceptional measures of war, until restit ution in accordance with t he present Treaty, shall be r estnred to the owners .

ANNEX.

I.

In accordance with t he provisions of A r t icle 297, paragraph (d), the validity of vesting orders and of orders for the winding up of businesses or companies,

and of any othe.r diredions, dooisions or instruc­

tions of any Court or any Department of the Govern­ ment of any of the High Cbntracting Parties made or or purporting to be' made or given, in pursuance

of war legisbtion with regard to enemy property, right s and int·erest•3 is, confirmed. The inter:ests of all persons shaH be rega,rded as having been effect ively de·alt with by any order, direction, decision, or instruction dealing with property in which they may he inte,rested, whethe•r or not such inteHlsts an" mentioned in the

ovder, direction, decision, or instruction. No qu.estion shall he ra.ised as to the' regularity o:f a transfe·r of any property, rights or de,alt with in pursuance of

any such order, dire.c:t ion , decis1 ionor instruction . Eve,ry action taken: with r egard to any property, business or c:ompany, whether as r ega.rds its investigation, seques­ tra,ti,ou, compulsory administra.tion, us1 e, :requisition, supervision, or winding up, the sale or management of property, rights or interests, the coUeiCtion or discharge of debts., the payment of cos,ts, charg:es or e'xpenseSI; or

any other ma.tter whatsoever, in pursuance of orders, direetions, decisions, or instructions of any Court or of any Depa.rtment of t he Government of any of the· High Contracting Parties, m ade, or given or purporting to be made or given, in pursuanoe of wa.r legislation with regard to enemy prop erty, rights or interests,, is con­ firmed. Provided t hat the, provisions of this paragraph shall not be held to prejudice the tit1e.g to property heret,6,fore acquir:ed. in good faith and for value and in accordanoe with the la.ws of the country in which the property is situated by nationals of the Allied and Associa.ted P owe·rs.

·The prorvisions of this paragraph do not apply to such of the above-ment.ioned meas1 ures as have been taken by the German a.uthorities in invaded or oooupied terri­ tory, nor to such of the above-mentioned measures as ha.ve been taken hy Germany or the G·erman authori­ ties sinoo N orv·em be.r 11, 1918, all .of w hioh shall he vo:id.

II.

Na daim or action shall be made or brought against any Allied or Associated Power or against any person acting on heha.lf of or unde'r the direction of any legal authority or Department of the Gorvernment of such a Power by Germany. or by any German national

wherever resident in respect of any a ct or omiss,iom. with regard to his property, rights. or interests during the war or in pr eparat,ion for the wa.r. Similarly no claim or action shaH be made or brought against any person in respect 6£ any act or omiss,ion under or ini accord­

ance with the exooptional war measur:e·s, laws regula­ tions of any Allied orr Associa.ted Power.

III.

80

Me,asures of transfer are those which have affected .or will affeot the ownenc;hip of enemy property by fe.rring it in whole or in part to a per sorn other the enemy owner, and without his consent, such as measure·s . directing the, sale, liquidation, or devolution

of ownership in ernemy property, or the canoolling of titles or s:ecurities. • ·

IV.

All property, rights and inte;rests of German

nationals within the territory of any Allied or Asso·­ ci ated Power and the ne,t prooe1e•ds of their saJe, liqu;i ­ dation or other dealing therewith may be by

that Allied or Associated Power in the, first pla.ce with payment of amounts due in respect of claims by the nationals of that Allied or Associated Power with regard to their property, rights and interests, includ1ng companies and associations in which they a.re :interested , in German territory, or debts owing to them by Ge·r ­ m an .na.tionals, and with payment of claims growing out of committed by the Ge.rman Government or by

any German authorities sinc

arbitratocr: appointed by Mr. Gustave Adoi·, if he is willing, or if no such appointment is niade by him, by an arbit.rator appointed by the .l\1ixed Arbitral

Tribunal provided for in Section VI. They may be

charged in the seeond place with payment of the

amounts due in Desped of claims by the nationals of such Allied or Associa.ted Power with regard to their property, rights and int,erests :in the territory of other enemy Powers, 111 so far as those claims ar:e otherwise ansatisfied.

PART XV.

MISCELLANEOUS PROVISIONS.

Article 438.

The .Allied and Associated. Powell's agree tha,t where Christian religiou,s missions were being maintained hy Germa. 11 socie,ties or persons in te.rritory be1 longing to them, OT of which the govenilllent is entrusted t o

them in aecordanoo with the pres·ent Tmaty, the pro­ perty which these missions or missionarY- societies pos­ sessed, including that of trading S1 01cieties whose profits wer·e devoted to the support of missions, shall continu·e to he devoted to missiona.ry In order to

ensure the due execution of this undertaking the Allied a.nd Associated Governments will hand over such pro­ perty to bo·ards of trustees appointed by. or appr·oved by the a.nd composed of pe·rsons holding

t he faith of the Mission, whos·e property is invo1ved. The Allied and Associated. Governments, while oon­ tinuing to maintain full cuntrol as. to1 the individuals by whom the missions a,re opnduoted, will safeguard the intere·sts of suoh missions.

Germany, taking note of the ahove undertaking, agrees to ac.cept a ll arrangements made or to be made by t he Allied o·r Associated Gove·rnments conoorned for carrying on t he work of the said miooions or trading societies a,nd waive all claims on · thejr behalf. ·

C.

EXTRAOTS FROM REPLY OF . THE ALL·IED AND A SSOCIATED POvVERS TO THE

OBSERVATIONS OF THE GERMAN

DELEGATION ON THE CONDITIONS OF PEACE. PART IV. GERMAN RIGHTS AND IN1'EREsTs O uTS IDE GERMANY . •

I.

In Artiole 297 and this Annex the expression " ex- ' ceptional war measures" inelude1 s measures of all kinds, legislative, administrative, judicial or others, tha.t have boon taken or will be taken hereafteQ'· with regard to prope-rty, and which have had or will ha,ve

the effect of r emorving from the proprietors the power of dispo1 sition ov·er thei"J.'i 'property, though without affecting the own ership, such as measures of supervision, of compulsmy administration, and of sequ.eMration; or which h ave had oT will ha.ve as an object the

s·eizure of, the use of, or the· interferenoo with enemy asset

decrees of Government Departments or Courts apply­ ing these _measures to' enemy property, as well as act s performed by any person oonnected with the adminis­ tration or the supervisiorn of enemy property, such as the payment of debts, the collecting of credits, the pay­ m ent of any costs, charges or expen es, or the collecting of foos.

In requiring Germany to renounoo all her r ights and claims . to h er ove·rseas posSiessio:qs, the Allied and A sso­ ciated Powers ·placed before every other consideration

81

the interests of the native populations advocated by Pre·s1.dent Wilson in the fifth point of his points me:Q.tioned in his address of the 8th January, !918. Refere,noe to the evidence from German previous to the war of an official as well as of a pnvate character and to the formal charge-s made in the

Reichstad, especially by MM. Erzberger and Noske, will suffice to throw full light . upon the German

Colonial administration, upon the cruel method. of repression, the arbitrary r.equisition, t.he vanous forms of forced labour whiCh resulted m the depopu­ lation of vast of territory in .German

Africa. and the Cameroons, not to mentw·n the tragic fate of the Hereros in Sputh West Africa., which is well known to all. Germany's dereHction in the sphere of civilization has been revealed too completely to admit of the Allied and. Associated Powers consenting to make a second experiment and of their assuming the re·sponsibility of again abandoning .13,000,000 or

14,000,000 of natives to a. fate from whiCh the war has delivered them. Moreover the Allied and Associate.d Powe,rs felt thems.elves to safeguard own

and the peace of the world a mihtar.y

imperialism, which sought to estabhsh It

could pursue a policy of interferenoo and mtlmidatwn against the other Powers.

II.

The Allied and Associated Powers cons-idered that the loss of her Colonies would not hinder . Germany's normal economic development. The trade of the Ge·rman Colonies has never repre­ S·ented mor.e than a. ve·ry small fra.ction of Germany's total trade: in 1913 one-half of 1 per cent. of her

imports and one-half of 1 per cent. of he·r exports.

Of the total volume imported by Ge,rmany of such pro­ ducts as cotton, rubber, palm ke·rnels, tobacco,

jute and copra, only 3 per cent. from

Colonies. It, is obvious that the commercial

and industrial reha.bilitation of Germany must depend on other f acto.rs. F'or climatic reasons a.nd other natural causes the German Colonies are inca pa hle of accommodating more than a very small proportion of the ex?ess Ge:man emigration. The small numbe:r . of

there be.fore the war is conclusiVe evidence m this rets·pect. III. The Allied and Associated Powers have drawn "?-P' in the ma;tter of the oession of the German Colomes, the following methods of are in con­

formity with the rules of mternat10nal la.w and

equity:- .

(a) The Allied and Associated Powers to the German Colonies the general . m

accordance with which the transfer of sovere1gnty m­ volves the tra.rrsfer under the same to the

State to which the surrender is made of the immovable and movable property of the ceding State. They see no reason for consenting in .case of the

·colonies to any departure from that .prmciple may have been· admitted as an exoopt10nal measure In the c3.se of territory in Europe. (b) The,y are of opinion that the Colonies should

be;ar any portion of the German debt, nor rema.m under any obligation to refund to <;ie.rmany the ex­ penses incurred by the Imperial a.dmmistra tlon of the Protectorate. In fact, they consider that would .be

unjust to burden the natives with expenditure which appears to have been incurred in Ger:nany's own

interest, and that it would be no less unJust to make this responsibility rest upon the M.andatory Powers which, in so far as they may be appomted Trustees by F.1334.-6

1 619 .

the Lte-a.gue of Nations, will derive no benefit from such trusteeship. IV. The Allied and Associated Powers considered that it he r,ece.ssary in the interest of the natives, as

well as in that of general peace, to restrict the influence which Germany might se.ek to exert over her. former Cblonies and over the territories of the Allied and

Associated Powers. (a) They are obliged for the reasons of se<:urity

already mentioned to reserve to themselves full hhe,rty of in determining the co0nditions , on which Ger­

mans will be a1lowed to establish themselves in the tenitories of the former German Colonies. Moreover, the control to he exerciood by the League of Nations will pro:vide all the necessary guarantees.

(b) They require Germany to subscribe to the Con­ ventions which they may conclude for the of

the traffic in arms and spirits and for the modifica­ tion of the General Acts of Berlin and Brusse1st. They do not think that Germany has any ground to consider herself humiliated or injured because she is r·equired to give her consent in adva.nce tQ of such

great importance to the welfare of the native popula­ tions and to the maintenance of civilizabon and p·eace.

VI.

The Allied a.nd A ssociated P owers are anxious that no misunderstanding should exis·t with . to th.e

disposition of the property of Ge·rman missions m tern­ tory belonging to them or of which goyernment is entrusted to them in accordance with the Tre•aty. They have, therefore, explicitly stated that the pro­

perty of thes·e missions will he handed over to boards of trustees appointed by or approved .by the G?'vern­ ments and composed of persons holdmg the fa.Ith of the mission whos·e property is involved.

PART X. EcoNOMic CLAUSES.

IV.

TREATMENT OF PRIVATE PROPERTY.

The question of the trea.tm·ent of priva.te rights is dealt with in the German deleo-ation's note.s of the 22nd and 29th May, and in the 0

Annex No. 1 to their

re,marks on the Conditions of Peace. In addition, the ge.neral objecbons set out in these are r.e­

produced under different forms in vanou.s parts of the .remarks. I.-QUESTIONS OF PRINCIPLE. T,he objections of principle to the conditions of

pea.ee put forward by the German delegation on this subject m ay be summed up as follows:-(a) It is nc.t. legitimate to use the :pro­

perty of German nationals to meet the obhgatwns of Germany. (b) The settlement of private rights is not made on the principle of reciprocity.

(c) German property should not he used . as a guarantee for the liabilities of the States alhed to Germany. . .

(d) The liquidations t? he by the Alhed

and A ssociated Poweifs, m depn vmg the owner of the free disposition of his property, are of a oon­ fisca tory character.

The answers of the Allied and A ssociated Powers to these obJections are as follows:-(a) As regards the first objection, they would call attention to the clear acknowledgment '?Y Ger­

many of a pecuniary obligation to the Alhe:d and Associated Powers, and to the further cucum­ stance that the immediate resources of Germany

are not adequate to me;et that obligation. It is the clear duty of Germany to mee't the admitted . obligation as fully and as promptly as possible, and to that end to make ·use of all availa.ble means.

The foreign investments of Ge,rman nationals oon­ ,stitute a class of assets which are readily available. To these investments the Treaty simply requires Germany to make prompt resort.

It is that, as a general principle, a count.ry

should endeavour to avoid making use of the pro­ perty o.f a part of its nationals to meet State ob1i­ gations; but conditions may arise when such a

course becomes necessary. In the present waF, Allied Powers themseh.es have found it nec·essary to take ove·r foreign investments of their nationals to me·et foreign ob ligations, and ha.ve given their

own domestic obligations to the nationals who have been thus called upon to take a share, by this u se of the·ir priva.te ,property, in meeting the1 obligations of t he State.

The time has arrived when Germany must do what she has forced her opponent·s to d o. The

for the adoption of this course by Ger­

many I S clearly unders.tood by the German peace delegates, and is accepted by them in the follow­ ing passage, quot·ed te.xtually from their note of the 22nd May :-

'' The Germ an peace delegation is cons10ious of the fact that, under the pressure of the burden arising from the Peace Treaty on the whole

futur·e. of German economic life, German pro­ perty m foreign countries cannot be maintained to its e•xtent. On t,he contrary, Ge,r­

many '· m order to meet her pecuniary obliga­ tions, will have to sacrifice this property abroad in wide measure. She is pr,epared -to do so.'' The fundamental objection mentioned a.hove is completely answered by the n ote itself.

(b) The German delega.tion maintains in its note of the 22nd May that there is only the appea.ranoo of reciprocity in regard to the se,ttlement of enemy property, and this is de,veloped in the

annex to the remarks. The objection, however, arises from a confusion between two entirely

different matters. As · regards e.xooptional war measures taken in the different countries in respect of enemy property, there is a. reciprocal provision, thes1 e exceptional war measures being confirmed on ' both sid·es. Quite a different matter is that of the

mode in which enemy property shall be dealt with thereafter. Ge,rman property, as is admitted in the German note', must serve' towards meeting Ger·

many's obligations to the Allies. The compensa· tion to the Ge,rman property owne'r must be made by Germany itself. In this respect there can be

no question of re,ciprocity. · (c) On the question whether German property should serve as a guarantee for the liabilities of the States allied with 9:'ermany, it is to he ob­

served, on the one hand, that the aetious of Ger­ many and her Allies during the war have given rise to complete solidarity between these Powers from the economic stand-point. For instance, negotiations undertaken without scruple hetwe,en

Germany and her Allies have resulted in the divi­ sion between th·ese countries of the proceeds of the Allied and Associated property, liquidated con· trary to all right in the territories occupied by the

German troops. Further, the German authorities have in several ways treated . the Allied and Asso­ ciated Powers as being jointly concerned. For in­ stance, they have seized French credit balances in Belgian banks as a measure of reprisal against acts done in other Allied Stu.tes. They have similarly

justified the liquidation of French property in Ger­ many on the ground that similar measures have

82

been taken against German property in other

Allied countries. Thus, the principle of joint lia­ bilities to which Germany now objects has been initiated by herself, and she has created a which does not permit the Allied and Associated Powers in practice to s1 eparate the obliga,tions of the Allies from her own. NBvedheless, the Allied

and Associated are prepared to omit from

the charge on the property of ·German nationals the liability to satisfy the unpaid debts of

na.tionals of Powers allied with Ge,rmany. / (d) The method of using property laid down

by the Treaty cannot be considered, either in prin­ ciple or the method of applica.tion, as a measure of confiscation. Private German interests will only be injured by thB measures contemplated so

far as Germany may decide 'that they shall be, sinoo all the proceeds of German property will be carried to :the credit of Ge,rm.any, who is required to compensate her own nationals, and will go to

reduce her debt to the Allied · and Associated

Powers.

APPENDIX D.

PARTICULARS OF BUILDINGS OCCUPIED BY BRITISH MILITARY ADMINISTRATION vVHIC'H WERE FORMERLY OWNED BY THE GERMAN GOVERNMENT.

. RABAUL,

Government House. Printing Office. Government Print,er. Motor Transport.

N amanula Hospital. Namanula Isola,tion Ward. Native Police Master. Magazine.

Government 8tables. Native .Police Barracks. Native Affairs Office,. A.A.M.C'. and Garrison Hospital. Administration Headquarters.

Commonwealth Bank. New Post Office. Governm-ent Sto['es. Public Works Department--Office. Public Works Department--Workshop

Trade and Customs. Department of Lands. Ce,ntral Court. Wet Can teen,

Assistant Provost lVIarshal 's Office. Roads and Bridges. Administration Headquarters Staff. Provost Ma.rshal. · Native Hospital (Doctor's ResidencB).

Department of Agriculture Staff. Native Hospital (A.A.M.C. Quarters). Superintendent, Botanic Gardens Office. Director, Botanic Gardens.

And 18 Bungalows now utilized chiefly as

. quarters for military officers.

KoKoPo.

European Hospital and Residence. Headquarters Store. Native Police Barracks. Native Prison and Stable. Native Hospital. District Officer's Residence. Post Office. M a,gazine and 4 Dwellings.

Guard Room.

1\f.ADANG.

District Officer 's R€·sidenoe. District Offiee. Police Master. Police Barracks. Wireless Office.

Government Store. Wharf Shed. Medical Officer's Re-sidence and Hospital. Native Hospital.

And 4 Bungalows.

MANUS.

District· Officer's Bungalow. Polioe Master's Bungalow. . Quartermaster's Sto['e. Wireless Bungalow.

Wireless Receiving Room and Engine Ro()m. Police l\tlaster's Offioo. Native Ho6pital.

K.AEWIENG.

District Officer's Bungalow. Medical Officer's Bungalow. Police Master's Offioe and Residenoe. District Office.

Native Police Barracks. Oantoon and Stor.e. Native Prison. Radio Station.

Native Hospital. European Hospital. Carriage Shed and Stables. _

83

And 3 Bungalows occupied by military officials, &c.

N.AM.ATANAI.

District Officer's Bungalow. Men's Quarters (built for medical officer m 1912) . Police Master's Bungalow.

Native Quarters. District Office. Native Prison. Native Hospital. Boat House and Tool House.

1621

EITAPE.

District Offiee and District Officer's Quarters, with outhouses. Garrison Quarters. Native Prison, with quarters, Native Diphtheria

Ho-spital and outhouses . Wireless Station. Detached Weatherboard Building.

WANIMO.

Administration Office. Native Quarters. Native Hospital and Prioon.

And 2 Bungalows with outhous·es, &c. Wanimo Station is on land leased from New Guinea Company.

MoROBE.

District Officer's Residence. Troop's Bungalow. Store.

Poliee Quarters. Prison. Police Master's Office. Boat Shed.

KIET.A.

District Officer's Residenoo. Garrison Quarters (formerly German Doctor's r;esidence). :gospital a.nd Dispensary. Police Mast·er' s R€6idenoe.

Native Prison. :Medical Officer's Residence. C'ant.een. Quartermaster's Store.

And another building used as an office.

G.ASMATT.A.

District Officer's Residence. District Office. And 2 Bungalows occupied by troops, and

several native houses.

l'rmted and Puolished for the GOVERNMENT of the COMMONWEALTH of AUSTRALIA by ALBERT J. MULLET!', Government Printer for the State of Victoria.

\