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[Page 85]

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In accordance with these instructions, I   have  arranged to proceed myself   by the "Messina" to-morrow, leaving here at 5-0 pm.   I shall take with me one Medical Officer and A.M.C. Detail, one machine gun, two Officers, and half-company Infantry.   I expect to be absent from here about 10 days, during which time Major F.B. Heritage, my Military Secretary, will act as Deputy Administrator.   On my return I will report result to you, and may possibly arrange for sending the  German prisoners from Nauru direct to Sydney by the "Messina".

In my despatch, dated 21st instant, which was forwarded by S.S. "Moresby" via Suva, and may, therefore, not reach you until after this letter is in  your hands, I referred to the fact that the General Manager of the New Guinea Coy. had brought a cargo of rice and other supplies from Macassar by the S.S, "Siar" and had succeeded in landing some of this cargo surreptitiously on the North Coast of New Britain,which cargo was seized by me as smuggled goods.   I also mentioned that I had deported the General Manager himself by the  "Moresby" to Australia,   and had despatched the Steamer "Nusa" from this port with a small force under the command of Major Heritage, to Kaewieng, with the threefold object of (1) releasing Mr. Jolley, British Consul, (2) hoist the British Flag, read my Proclamation, administer the oath of neutrality, etc., and (3) ascertain the whereabouts of the Steamer "Siar", capture her and bring her to this Port.

I have now to inform you that the Expedition under Major Heritage was successful in every respect, as he returned to this port early on the morning of the 23rd inst. with the S.S. "Siar" (450 tons gross), and two Auxiliary Schooners - "Matupi" and "Sente".   The "Siar" and "Sente" are the property of the New Guinea Coy., and the "Matupi" of Hernsheim & Coy. Enclosed herewith is forwarded for your information a copy of Major Heritage's report on his expedition.

On Saturday, 24th instant, I received information that a large three-masted Auxiliary Schooner (110 H.P.) named the "Samoa", was in hiding on the West  Coast of New Britain.   I therefore despatched the Steamer "Madang" under the command  of Lieut. Commander Lambton, R.A.N.R., to secure her.  Lieut. Commander Lambton returned to Rabaul on the following day with the "Samoa" in his possession.   She is a well found boat, and one of the finest of her kind trading in these waters.

Official application has been made to me by representatives of the owners of the Steamships "Sumatra", "Madang", "Meklong", which were captured by the Australian Fleet, and also the  "Siar", Matupi" and "Sente", but in each case I have replied that the vessels were taken on the high seas and were, therefore, prizes, and must be held as such, at any rate until a decision to the contrary is given by any Prize Court which may adjudicate on the same.

I am pleased to  state that the arrest and deportation of Mr. Taefert (General Manager of the New Guinea Coy.) who was, as previously mentioned by me, a disturbing factor in this place, has had a very decided effect, as practically the whole of the  cargo brought here by the "Moresby" has been disposed of, and I have very little doubt that any difficulty will be experienced in similarly disposing of the cargo of the "Matunga", which is at present being discharged.

  

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