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[Page 81]

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In view of all the circumstances mentioned, and the fact that Mr. Taefert had lied to me after having taken the oath of neutrality, I considered him a very disturbing factor and a menace to the Administration here, and altogether an undesirable man to retain in the Colony.   I sent for him and apprised him of this, and handed him over to the custody of the Provost Marshal with a view to his being sent to Sydney under escort on board the S.S. "Moresby", which leaves here for Suva today.

The "Moresby" has discharged her cargo here, and it has been placed in store under the charge of Mr. Dupain, who came as supercargo on the "Moresby", and I have no doubt that with the removal of Mr. Taefert's influence, the other Merchants will come to their  senses and business will result; but until this takes place I do not think it advisable for the "Matunga", which I believe it was proposed to despatch on the 23rd instant, should leave Australia, and I advised you to this effect by wireless yesterday.

I have had an interview with a deputation from the  Merchants, and informed them that the "Moresby's" cargo had arrived here as a result of their complaints to me about a month ago that  their supplies were running short, and on their assurance that they would be glad to purchase further supplies on arrival. I also informed them that I would place every facility in the way of their distributing any goods they might purchase, at their various stations in the Islands, and bring back cargoes of Copra for return freights to Sydney, as it was my intention to establish an inter-island service as a tentative measure, by utilising one of the Steamers taken as prizes on the high seas and now lying in this port, as that there was nothing to hinder them coming to terms with Burns, Philp & Coy's Representative; but if they did not do this and the  natives at the various stations ran short of food and as a consequence overrun their plantations, and did damage to same, the onus for such damage would be upon  their shoulders and not upon those of the Administration.

By the "Moresby" I am also sending as prisoner of war to Sydney, Captain Moeller of the "Komet".   He has been granted his parole while on board.   Captain Moeller is accompanied by his wife.

There are three other persons by the same boat, viz:-

Metzger - a man who has been working on a plantation in Bougainville in the employ of a Englishman, whose services he left on his own accord, and he wishes to get to Sydney.

Kuhner - an Austran who was out here with a view to acquainting himself with  the Copra business.   He is accompanied by his wife.

These three latter persons have made their own arrangements with the Captain of the "Moresby" for their passages, and as they are not residents here and really have no interests in these Islands, I have offered no objection to their travelling to Sydney.

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