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[Page 148]

Extract from Despatch of British Administrator, German New Guinea, to the Minister of State for Defence, dated 21st Octr.

"The Steamship "Moresby" arrived here on the 17th instant with cargo of stores, which I had requested by wireless telegram should be forwarded. This vessel was under charter of Burns, Philp & Coy. Ltd., whose representative (Mr Lucas) was on board the Ship.

The requisition for the goods was sent by wireless telegram through the Flagship about a month ago, as a result of an interview which the Merchants here had with me, when they pointed out that owing to the disturbance of ordinary trade during the war, the supplies held by them were running short, and they asked my intervention with a view to having these stocks replenished, assuring me at the same time that on their arrival here they would be pleased to purchase the same.

Since the arrival of this Ship, however, the Merchants seem to have made a complete change of front.  Mr Lucas has had several interviews with them with the object of getting their support in the event of Burns, Philp & Coy. determining to establish a monthly service to these Islands, but unfortunately he could make no satisfactory arrangements with them, nor would they agree to purchase any of the goods now on board the "Moresby".

This change of front was due, I believe, in some measure to the fact that the General Manager of the New Guinea Coy. (Mr Teufert), at the beginning of August went to Macassar in order to arrange for supply of rice for the Natives and other stores for the different stations in these Islands, and in this he was fairly successful.  About a week ago I received information that a motor launch had delivered a large quantity of stores at a station of the New Guinea Coy. at Vuna Paka on the North Coast.  This launch was flying the German Flag and was engaged discharging this cargo from 6 to 11 a.m.  She remained in the vicinity until after dark and then proceeded in the direction of Kaewieng, New Ireland.  On receipt of this information I despatched a party under the Provost Marshall to investigate, and find that the report was correct, some 15 tons of rice and other goods having been landed.  These were at once impounded.  The Provost Marshall ascertained that the launch had come from a Steamship called the "Siar", belonging to the New Guinea Coy., and that she was then at Kaewieng and practically acting as a distributing centre for certain stations.

On the 16th instant I despatched the Steamer "Nusa" from this port with a small force, under the command of Major Heritage, to Kaewieng, with the threefold object (1) to release Mr Jolley (British Consul), who was reported to have been enterned there during the War (2) to hoist the British Flag, read my Proclamation, administer oath of neutrality, or take any other steps necessary to establish British Rule, and (3) to ascertain the whereabouts of the "Siar", capture her and bring her to this Port.  This expedition has has not yet returned, and I am without any news as to the result of their mission.  There is, however, little doubt that the arrival of this cargo from the East has to a large extent relieved the tension previously

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