A.—s

1888. NEW ZEALAND.

FEDERATION AND ANNEXATION: NEW GUINEA PROTECTORATE (FURTHER CORRESPONDENCE RELATING TO THE). [In continuation of A.-4, 1887, Session I.]

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. The Special Commissionee, British New Guinea, to Sir W. F. D. Jebvois. Sic, — Brisbane, 7th March, 1887. In reference to my letter of the 15th January, enclosing copy marked " Confidential " of my report for the year 1886, I now enclose copy, which, not being marked " Confidential," may be used, if desired, for presentation to Parliament, or for publication. I have, &c, John Douglas. His Excellency Sir W. F. Drummond Jervois, G.C.M.G., C.8., &c.

Enclosure. BEITISH NEW GUINEA. Gbnebal Sib Peteb Scbatchley died on the 2nd December, 1885. Mr. Deputy-Commissioner Eomilly, in virtue of the provisions of the Commission appointing General Scratchley, assumed office, and administered it until the 27th February, when I received a Commission from Her Majesty appointing me Special Commissioner for the protected territory of British New Guinea. Mr. Eomilly left on sick leave for England. It became necessary for me to proceed to Brisbane, Sydney, and Melbourne, in order to wind up affairs in connection with the administration of Sir Peter Scratchley, and to confer with the Australasian Governments contributing to the maintenance of the Protectorate. After communicating by telegram with Her Majesty's Secretary of State for the Colonies, I terminated the charter of the steamship "Governor Blackall" from the Australasian Steam Navigation Company, and received some of the contributions of the Australasian Colonies for the year ending the Ist June, 1886, in accordance with the conditions laid down in Lord Derby's despatch of the 9th May, 1884. Me. Fobt's Eepobt. General Scratchley's papers were soon after his death collated by Mr. G. S. Fort, his Private Secretary, and a report was published which contains a large amount of most valuable information connected with the Protectorate. My experience on the coast of British New Guinea during the last six months entitles me to say that I can confirm the general tenor of Mr. Fort's report, which may be accepted as a faithful account of conclusions arrived at after the cruise of the " Governor Blackall." I regard it as, on the whole, a safe guide for those who have to consult for the future of British New Guinea. Mail and Tbading Seevioes. While in Sydney I arranged the terms of a contract with Messrs. Burns, Philp, and Co. for a service along the coast of New Guinea, from Thursday Island to Port Moresby and Dinner Island. A copy of this contract (Appendix A) is herewith attached. The s.s. "Victory," 80 tons burden, has been placed on this line, and has kept up her monthly trips regularly since the commencement of the contract. She will soon be replaced, I hope, by a larger and more suitable vessel. lam at present in communication with Messrs. Burns, Philp, and Co. on this subject. I—A. 5.