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[Page 196]



In reply to two messages received from Secretary of Defence, and quoted in diary of yesterday's date, the following replies were prepared for despatch:-

"Minister for Defence:  German Bank Notes have not been declared legal tender, but continuance of circulation has been tacitly permitted. Paper money taken over from late German Administration amounts to £3,368, and most of the currency in possession of Merchant Firms here is Bank Notes, and if declared not legal tender business will be paralysed. If, however, Government desires embargo placed on German Bank Notes, notification will be issued. Suggest Banking Expert be sent here to advise me on the situation - Administrator."

also -

"Minister for Defence: My action in temporarily retaining services of certain former German Officials has proved a wise course, on account of intricate laws and methods. Unlikely services will be renewed except in case of Director Botanical Gardens, which have been established at great cost and should not be neglected, particularly during the abnormal drought at present prevailing. If, however, expert in Tropical Flora can be sent from Australia, services of local man will not be renewed. It is also absolutely necessary to retain the services of 5 German Doctors, who are experts in Native and Tropical disease at various Native Hospitals, until medical men arrive from Australia to replace them. in my dispatch of 27th Octr. I recommended that 4 Junior Medial Men be engaged and sent here; I now find 6 are required, also 4 Nurses - Administrator."

Proceedings in connection with the Cox flogging case were commenced today by Captain Manning, Assistant Judge Advocate General.

The following wireless messages were received from the Minister for Defence by the Administrator:-

8-40 p.m. Three Destroyers due Rabaul about 30th Novr. They will assist you in occupying captured German territory South of Equator, and seek for German Ship. "Fantome" leaves Sydney 1st December for same service. "Una" late "Komet" with "Eastern" due Rabaul about 5th Decr. with Commissioner and Troops to occupy islands North of Equator. One set wireless, one and half kilowatts is being sent in "Warrego" for erection "Bougainville."

9-45 p.m.. Please report whether W/T Station at Nauru had been damaged since "Melbourne" left, and whether mast is still standing."

Health of Troops continues generally satisfactory. Patients in hospital are making satisfactory progress.

Current Status: