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173 Officials, whose three months salary and expenses amount to M.848,642,50. It will, therefore, be seen that the proposed loan is altogether impossible to accomplish, as I shall require the whole of the cash now in my possession to meet the ordinary expenses of Administration, particularly in view of the fact that, owing to the present disturbed conditions of trade, any further revenue during the present year is unlikely to accrue.
I may say that eight of the Officials who have already been deported have received payment, as per list attached hereto, which I shall be glad if you will refund at your earliest convenience.
I am sending you early intimation of the condition of affairs, so that you will clearly understand, now that I am compelled to cease any further payment, that I am only doing so because, to comply with conditions, is an absolute impossibility."
As I was informed the Ships "Komet" (977 tons gross) "Delphin" (260 tons gross) and "Kolonial Gelleshaft (73 tons gross) were the property of the German Administration of New Guinea, I applied to the Governor for these to be transferred to me with all other property, but he informs me that the "Komet" was, by directions from Berlin, transferred to the German Navy at the beginning of September last, that the "Delphin" was sold 12 months ago at Hongkong to the Chinese, and that the "Colonial Gelleschaft" was wrecked. I am having the books of the German Government investigated, in order to substantiate the above.
All the stores seized have been placed together in a Central Depot, and a careful inventory is being made and values placed upon them.
A properly controlled system of receipts and issues has been established.
Some boots and benzine arrived by the "Coma", which brought up Naval stores last week, and have been taken in charge, but no advice or invoice accompanied same. I would be glad of this information at all times.
A Works Department has been established and Director appointed, whose duties will be to maintain Water supplies, Roads, Bridges, Wharves, Tramways and Government Buildings.
I do not propose to carry on any new works, but will maintain existing works in as good condition as possible.
Considerable damage was done since our occupation to a tunnel, about 80 yards long, through the hill on the road from Rabaul to Tallili Bay, a very important district. This tunnel was lined with hardwood timber, which was set on fire in three places simultaneously, and, fanned by the great draught, the timber was soon destroyed, and large quantities of debris from the roof fell in. I have had this cleared away and the tunnel made passable.
I have reason to believe that the fire was lighted by Natives, under the direction of one of the High German Officials, whom I am sending away on the "Berrima".