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[Page 15]

Good wide roads have been built to the top of the surrounding hills, ostensibly to afford access to residences on the surrounding ridges and to enable the townsfolk to escape the malaria of the flats.

No fortifications nor storage of munitions of war, nor coal beyond that mentioned, are known to exist at present. It is stated by our informant, however, that there are "all the facilities for the place being transformed into a fortified coaling base at short notice, and also provision has been made in laying out the township for more extensive works suitable to a naval base."

At present the township (Rabaul) consists principally of a few Government buildings and some stores, and it is only because of the Government action making this place the port of entry, coupled with the N. D. L.  steamers making it their leading port, that residents have been attracted there.

The old township of Herbertshohe is still the principal place of business and residence.

The above information was obtained through a gentleman in the employ of Burns, Philp & Co., who himself visited the place about three years ago. He has, however, derived his more recent information from Mr. J. M. C. Forsayth, who returned from Simpsonshafen only four months previously. As this man Forsayth and his family have had an intimate connection with New Britain, the following information concerning him

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