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(2)
Upon my return to Simpsonhafen at about 7-0 p.m., I arranged with Captain Lewin of the "Encounter" to despatch to you through the Flagship "Australia" the following wireless message:-
"Have met with Governor who states has no power to formally surrender any portion German Territory; has agreed in writing cease further resistance, and transfer administration of whole German New Guinea to me on following terms -
Armed forces now in field surrender at once with military honours; Governor leaves here on parole, no obstacle return Germany; Officers of Regular Army remain prisoners of war; all others on taking oath of neutrality allowed return their plantations; black troops join Native Constabulary now being organised; all monies and property late Administration transferred to me; Civil Officials not required by me, or who will not take oath neutrality, deported to Australia but no obstacle returning Germany; any British subjects now prisoners to be released forthwith; Governor's undertaking does not cover any offensive action by German Cruisers, with which communication destroyed; am now administering from Rabaul; will visit Wilhelmshafen and other parts first opportunity; Everything satisfactory, health of Troops excellent; supplies for population ordered through Admiral urgently required; additional rations, boots and lightest clothing for troops, also £5,000 for pay necessary; Civil Officials deported to be paid 3 months salary from 1st October, also travelling expenses to Europe for selves and families, to be refunded from German Colonial Subsidy by Governor."
Attached hereto I am forwarding you a copy of the complete agreement arrived at. I intend to retain possession of the original until after I take possession of Frederick Wilhelmshafen and other places which I may find it necessary to visit.
I have taken possession of Government House at this place, and propose to carry out the administration of the possessions from this point, and in order to enable me to devote all my attention to this duty. I propose to leave the Command of the Troops to Watson.
I mentioned that I was sending a large number of prisoners to Sydney by the fleet, but last night I received a message from the Admiral, who was on his way from here to Australia, that he was returning to this place and would arrive this day about 4-0 p.m., so that I shall now have the prisoners who were sent away back again on my hands. In view of the agreement arrived at I shall probably be prepared to take the oath of neutrality. The Governor himself will probably arrive in Rabaul on Monday next, and I have arranged to afford him accommodation in the Deputy Governor's quarters until a ship is available for sending him to Australia.