The Wanganui Chronicle " Nulla Dies Sine Linea." THURSDAY, MAY 29, 1919. THE GERMAN MENACE IN THE ISLANDS.

Wanganui Chronicle, Volume LXVI, Issue 17583, 29 May 1919, Page 4

The Wanganui Chronicle " Nulla Dies Sine Linea." THURSDAY, MAY 29, 1919. THE GERMAN MENACE IN THE ISLANDS.

New Zealand would do well to keep a, watchful eye on Samoa, lest what is said to bo happening in New Guinea may happen there also. Australia's possession of the territories embraced under the comprehensive terms of German New Guinea may not bo of much material advantage to her after all. It may simply mean that while she has the shell of administration, the kernel of trade will Again go to Genriany herself and to Japan. According to a Sydney contemporary everything points ihat way at the moment. It is alleged that the trade Australia has built up so indefatigably in the islands generally is in many directions slipping away. It is a trade Australians had <Mmc to regard as their heritage. Their island commerce has always been of the greatest importance to them, and industrial de velopments nre year by year enhancing i its worth. Yet it would seem that Australia's hold is here and there being 1003. t-ned. S.iya our Sydney contemporary r "Little by little before the war the fortefgner got a footing. Germany was tor the time being removed from the field, but her activity in the Pacific has not by any means ceased, and the sooner this fact is roaised the better, for we are living rather in a fool's paradise as far as the islands are concerned. We may find that nothing but a ehans&e of name and of administration of this territory will be the outcome of all our sacrifices, ad that the real substance of these possessions will in the future be as much German as ever they were in the past, excepsfc that Japan will have a large fehare. If that should prove to be the case, where will b© the fruits of our vie. Tory? The trade of the Marshalls has practically gone, and since Japan has occupied this group she has made it and the Carolines, which she also holds, the base for widespread and intense activity. And now there seems every probability of the trade or German New Guinea, conquered at the cost of precious Australian lives, being wrested from us as well." Apparently the immediate cause for this expression of alarm is to be found in the fact that the German merchants and planters, who have enjoyed extraordinary privileges in New Guinea since the occupation by Australian troops, have just given notice that the agreements that they had with Australian vessels to carry their goods and produce will be cancelled, the evident intention being to cut off, as far as possible, all trade with Australia iv favour of direct services with Europe and the East. It has been publicly announced that the Osaka Shosen Kaisha will establish a monthly service between Japan and Rabaul, whilst it is reported that the Dutch steamers now running between Holland, Java, and Dutch New Guinea are only awaiting the signing of peace in order to extend to Rabaul to load accumulations of copra whose probable destination will be Hamburg, via Rotterdam. It may be explained that, upon the military occupation, the Commonwealth Government arranged for an Australian service of steamers to keep up necessary communication with their troops, and incidentally benefiting the German planters and merchats by supplying them with goods and bringing away their produce. In this way the necessities of the military occupation have been at the same time a source of profit to the German merchants them. Neither Australia nor the British islands in the Paoitic have had any opportunity during the war, or since it terminated, of sending any copra shipments to Europe : but are still without any other market than San Francisco, where the ruling price is something like £12 per ton less than that quoted in Europe. By thus allowing the Germans to get in <;a,r!y v/ith prompt regular communications from Rnbatil direct to En ropy and the Knst. tho German nU'rcliaiits and tracers will benefit tremendously in comparison wit]] Australia and the Pacific it'lajuls. Not only will they have the

great advantage in disposing of their own produce, but these direct services will naturally draw consignments from the other Pacific islands to Rabaul, which will thus become quite an important place in largely dominating the trade of the south-western Pacific to the !>enefit of other competitors. Australians were the pioneers of this trade. A regular steam service was inaugurated in 1897 between Australia and these territories. It carried on till 1905, when the heavily subsidised N.D.L. line, with the active assistance of the German Administration, pushed out its Australian rival. From that day until the British occupation, nine years later, the tracta was held as a close preserve for the German lines. It seems now that the re-established Australian service will, for a Becond time, bo squeezed out by more advantageousiy situated competitors. It is very hard to say yet whether German in trigue will succeed in this bold effort to i again take over entire possession of the trade of the northern part of New Guinea, or whether Great Britain and Australia will yet wake up to the position, and prevent Germany from gaming the ascendancy again. It is hardly possible to close down a business suddenly, and reTnove steamers from an established trade without serious loss, whilst to con. tinue running them merely with tho j mails anl outward cargoes of stores for. i the troops, without any return cargo, ! would undoubtedly mean that vessels | running under Australian conditions of ! manning, would be very heavily handicapped. A few weeks ago a cable stated \ that Mr. Hughes had expressed the opinion that Australian navigation laws would causa the disappearance of difficulties of this nature. As against this contention it is pointed out that any new navigation law proclaimed could only affect steamers running between onel Australian port or territory and another. There is nothing whatever to prevent any foreign ships, European or Asiatic —and none of them working under White Australian conditions—from trading direct with German New Guinea, wth supplies, and taking away copra and other produce in payment for those supplies. That is apparently what is about to happen. Such navigation laws would only place additional burdens upon the Australian registered ships, if they persevered with the wellnigh hopeless task of competing with ihe cheaper foreigners, "but they would 2*rtain!y not in any other way affect tho position. According to the terms of the Peace Treaty, Germany is to be compelled to pay some portion of the loser's price, and to make reparations for her outrages upon her inoffensive neighbours. Until this is completed an Army of Occupaton is to hold portions of Ger. man territory near the Rhine at the ex. pense or Germany, and that thG,Allies •will control German trade, so that the exhausted industries of the Allies may not be prejudiced during that period "f reconstruction. Stern control is to be exercised over exports and imports on both raw products and manufactured commodities, whilst heavy indemnities will have to be raised from the German people by taxation, etc. Yet, Germans ii* New Guinea are apparently to escape al* this. They have suffered nothing during the war, but on the contrary, have done remarkaibly well out of their trading transactions, even making handsome profits at their stores from the trade of the Australian soldiers. They are now to be exempted from all the disabilities of their follow.countrymen ir ; the Fatherland, and, whilst being nx-

from those disabilities by reason or coming under the control of the Australian Commonwealth, they are evidently busy with their schemes to resume traffic with Germany and the Orient, thus availing themselves of the high prices of famine-stricken markets' per medium of the cheapest direct fore^n lines. Clearly, then, there is need for us to watch lest German influence in Samoa is permitted to operate similarly to our own serious disadvantage.