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[Page 187]

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The vessels, which were accompanied by a collier, coaled and left Rabaul at about 1-0 p.m. on 29th instant; their destination is, I understand, Japan.

Captain Sakamoto informed me he had been at sea for six months, and his latest mission was a search for the "Emden"   On hearing while at Penang of her destruction by the "Sydney", he turned the Ships'  heads for home.

At 4-0 p.m. (29th) I received the following wireless message from Captain Sakamoto :-
"Japanese Captains thank you for kind treatment you have done them last night; they send farewell words, and hope you and your Officers good health."

30th December 1914:
This morning I received the following wireless messages from the Secretary of Defence :-

"Wire conditions including rates of exchange and transmission governing repayment  Sydney deposits German currency made with you by Burns, Philp, also whether same charges first orders totalling approximately five thousand pounds."

also :-
"Pending further instructions, Treasury request you not to accept further deposits German paper money for  payment in Australia."

To these I replied :-
"German currency calculated twenty and a half marks to the pound sterling; plus two and a half per cent Bank Exchange; this applies also to first orders.   Full details by mail.
In accordance with your request, German paper money now refused for Australia."

Attached hereto  I forward copy of a report by the Treasurer, containing full particulars of the transactions with Burns, Philp and Coy.

Yesterday the Manager of the Hamburgische Sudsee Aktiengesellschaft called upon me, and showed me a letter he had received from his agents, Messrs. Justus Scharff, Ltd., of Sydney, dated 8th December, advising him that some difficulty had arisen about his obtaining possession of 325 tons of copra shipped from here by S.S."Matunga".

A copy of the letter in question is attached.

  

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