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[Page 91]

Government Store,
Rabaul,
27th October 1914.

To - The Administrator:

Supply Ship  "Moresby":

I have the honor to report regarding the arrival of this vessel from Sydney, which followed on your recommendations to the Vice-Admiral.

Until vessel reached Rabaul it was not known what quantities of goods had been shipped, also if Government had made the charter.

Messrs. Burns, Philp & Coy's Island Manager, Mr Lucas, was a passenger and intimated that the Commonwealth authorities had arranged with the Firm to purchase all goods and despatch to Rabaul, such purchases to bear a 10 per cent addition on cost to recoup Burns, Philp & Coy. for amount expended and time occupied in collection at Rabaul. Furthermore, all cargo was to be charged at the flat rate of 40/- per ton, weight or measurement at ship's option, special goods such as Benzine, Chaff, etc. in proportion to danger involved and extra space occupied.   The goods shipped for Rabaul Merchants supplies, etc. were termed "Naval Venture a/c" and it must be at once mentioned that the Government in arranging for Messrs. Burns, Philp & Coy. to purchase goods and afterwards collect from Merchants has relieved authorities at each end considerable worry.   Unfortunately, Mr. Lucas had no official papers respecting confirmation of the  arrangement, and I understand no documents have reached you, Sir, in re.
[In margin]   Since recd.   W.H. 27/10.

In your letter to Vice-Admiral Commanding, dated 14th Sep., an approximate rough summary of normal importations to this  country  was given, and in concluding paragraph request was made that two months supplies be forwarded, mentioning the particular requirements.   I find that the rough summary was worked on entirely, the result  being that actually more stuff than actually need was forwarded;  at the same time it is, of course, preferable to have too much rather than a shortage.

I had many conferences with Merchants after arrival of "Moresby", and, as you are aware, they were disposed at one time to repudiate their obligations to accept supplies.   It was soon made evident that Mr. Taefert, the General Manager of the  New Guinea Coy. recently arrived per "Siar" from Macassar, and who had been stealthily engaged in distributing goods ex this vessel along the coast, was intimidating the other Merchants to place the Administration at a disadvantage and endeavour to force special concessions.   The deportation of the disturbing element allowed negotiations to run smoothly and on 24th instant the bulk of the goods with exception of Gvt. supplies of rice, meat, tobacco, etc. for natives, were taken over by the Merchants. Much against their will I was compelled to insist on the acceptance of a large quantity of meat in 6 lb tins: usual importations have been 1.1 lb tins.   Tobacco was also difficult to deal with on account of price, but 7 tons were accepted.   900 cases mineral waters were forwarded, all Schweppes, and Rabaul landed cost ran out at 5/3 ½ doz.   The superiority of maker is unquestionable but  cost too high and a lower grade would have been readily

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