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[Page 147]
(2)
I then requested Major Martin to ascertain definitely at Kitape whether this cargo had been declared, as after Taefert's false statements to me I could not accept his word and refused to believe him without documentary evidence being produced. It now appears from the report of Major Martin I am sending herewith, that there is no confirmation that the cargo was declared at Kitape, therefore, payment for the whole of the cargo by the New Guinea Coy. is due to the administration.
Accompanying Major Martin's report is a copy of a letter from Taefert to the Commanding Officer of the German Warship "Kormoran", which leaves very little doubt as to our right in retaining possession of the "Siar". I am forwarding a copy of this letter to Head Quarters here, because a movement is on foot to release Taefert from Darlinghurst Gaol, and permit him to return to Rabaul to look after the interests of his Company on his taking the oath of neutrality, and I understand a formal application has, or will be, made to the Minister for Defence, which will, no doubt, be referred to you for your opinion as to whether Taefert should be allowed back at Rabaul or not.
My opinion of him personally is, that he is a dangerous man and one who dominates the other Merchants, and, therefore, undesirable to have in the administration. Owing to his influence and advice to the Merchants in October last, I had considerable difficulty in disposing of the cargo of the "Moresby", which was sent up from Australia on my guarantee, and it was only after I had taken strong measures and sent Taefert away, that the sale of the cargo was negotiated.
[William Holmes]
Colonel.
Commanding N. & M. Expeditionary Force.