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[Page 86]

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In order to assist  the Merchants here in distributing their purchases at the various stations in the different Islands of the Group, I have arranged to utilise at least two of the  captured Steamers as an inter-island service, to convey the goods for the Merchants and bring back cargoes of Copra at certain fixed prices per ton for freight, to cover expenses of  so doing.

The various Departments which I have already organized, such as the Treasury, Works, Justice, Police, etc. are doing good work, and I am now engaged in  organizing a Department of Public Health, embracing the control of Hospitals and Sanitation of the principal Centres. I am also taking in hand the proper control and regulation of the Labor market, as I find that Planters are suffering considerably since our arrival here, by the fact that their  native labor has absconded and in most cases returned to their villages.   I propose to organize a Department of Labor to deal with this,engaging the services of experienced men to visit the different native villages and compel the boys to return to their employment.

Consequent upon the continued dry weather in the Islands, the roads are falling into disrepair.   I am therefore arranging to throw the onus of repairs upon Planters and Native Chiefs for those portions of the roads running through their properties or districts, and I hope the result will be both successful and economic.

The health of the Troops continues extraordinarily good.   The two men - Privates James and Guard - who were rather badly injured a few weeks back by the explosion of a rocket taken by some men from one of the vessels in the harbour, are now quite out of danger and progressing satisfactorily,and it is unlikely any permanent injuries will result.   The health also of the Inhabitants, including the native population, is fairly good, and will improve now that supplies have arrived and they can be better fed. There are two German Doctors here at Rabaul and one at Herbertshohe.   Those at Rabaul are doing most excellent work, as they are Specialists in Tropical   and Native diseases, and most of their time is devoted to the Native Hospital, where there are about 130 Patients.   These Medical men, together with two Dispensers and three Nurses I have arranged to retain at their previous remuneration, as they cannot possibly be done without.   Their engagement is for three months from the date of my arrival here, 12th September, subject to extension if considered  advisable.

Major Maguire, P.M.O., suggests that enquiries be made in Australia with a view to engaging the services of four duly qualified junior Medical men, and I would recommend that this matter receive earnest consideration.

I regret to have to report that there have been several cases of looting and robbery by the Troops under my command, which it has been rather difficult up to the present to sheet home to the guilty persons.   Last week, however, a Court Martial was held upon one man - Private Loggs of 'B' Coy. -

  

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