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[Page 104]

SECOND MILITARY DISTRICT.

INTELLIGENCE REPORT ON YAP AND PONAPE

YAP is a large Island at the Western end of the CAROLINE Islands and is about 1800 miles S. W. of HONG-KONG. In formation it is a cross-breed between the atolls of the GILBERTS and the mountains of the SOLOMONS, that is to say it has hills some 1000 ft. in height and at the same time is surrounded by coral reefs which run out many miles from the land. There is a fairly narrow but deep and safe passage through the reef at all times and vessels of the size of the "PRINZ WALDEMAR" and "COBLENZ" can steam into the lagoon and berth at the wharf.

The Harbour is good, being sheltered by hills on all sides but the South. The white population of the so-called town consists of not more than a dozen people.

The town consists of an hotel called the "Hotel Coconnus",  Cable Station belonging to the Netherlands Telegraph Company, Nord Deutscher Lloyd Office and the office of the Wust Karoline Gesellschaft.

The only communication with YAP is the monthly service of the N. D. L. from HONG-KONG to SYDNEY and a tri-weekly service of the Jaluit Gesellschaft of HAMBURG, who steamer "GERMANIA" also runs from HONG-KONG to SYDNEY. Occasionally a steamer belonging to the Angam Phosphate Company calls at Y A P.

YAP is a boosting up station of the cable stretching across the Northern Pacific and it also is in touch with the outer world by having a powerful wireless station, situated between 1 mile and 1 mile and a half from the settlement, which links up with ANGAUR, NAURU and MANILLA.

The West Caroline Company, whose Head-Quarters are at JALUIT and whose manager, Mr. SCOTT, is an Englishman and British Consul. in the main commercial factor in the Group and was floated to plant

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