2

A.—s

Chaktee of the Steamer " Goveenoe Caiens." On my return to Brisbane on the 19th April I arranged with the Government of Queensland for the charter of the "Governor Cairns," schooner, of 68 tons (Appendix B). She has answered her purpose well. From the Bth May, when she left Brisbane, until the 6th December, she has been under weigh eighty-three days, has sailed 6,053 miles, and has conveyed me and my staff to many of the principal points on the southern shores of British New Guinea. She is now laid up at Cooktown, and will be available for service next year on the same terms, after the north-west season has passed over. On the 17th of September she grounded on a reef in surveyed waters, and sustained some damages, which were made good at Cooktown, involving some considerable expenditure and a detention in port of five weeks. Steamee " Albatross." The Queensland Government, having lately purchased the s.s. " Albatross," 84 tons burden, for service in Torres Straits, have considerately placed her at my disposal for the purpose of visiting the adjacent coasts of New Guinea. I have authorised Mr. Milman, the Eesident Magistrate at Thursday Island, to act on my behalf in this respect, and he has permission from his Government to do so. When engaged in duties connected with the Protectorate his expenses will be paid by me. The "Coeal Sea." It was necessary to make some temporary provision for the service of the Protectorate in China Straits. For this purpose I chartered the lugger " Cora] Sea," 18 tons burden, engaging with her master, Colin Thompson, that he was to sail her and find her for a monthly payment of £40. She has been at the disposal of Mr. H. 0. Forbes at Samarai (Dinner Island), and is still there. She is manned by Malays, and has done good service. South Cape, China' Steaits, and Samaeai. On my first visit to the eastern portion of the Protectorate I was accompanied by Mr. and Mrs. H. 0. Forbes, Dr. Clarkson, the Medical Superintendent of the Polynesian Hospital at Mackay, and by General Mclver. I had made an arrangement with Mr. Forbes, after his return from Sogari, that he should represent me in China Straits, at any rate until the end of the year, leaving it to be an open question whether or not he should then enter on the resumption of his exploration work. I rented the mission premises at Samarai, and I placed at Mr. Forbes's disposal the " Coral Sea." Dr. Clarkson, who had obtained leave of absence from the Government of Queensland, was attached to my staff in his professional capacity, and I was also accompanied by Brigadier-General Mclver, who had "placed his sword at my disposal." This happily was not required. He had taken a considerable interest in the proclamation of the Protectorate, and, though I did not feel justified in granting him permission to reside in New Guinea, I was able to afford him an opportunity of visiting many points on the coast between Samarai and Thursday Island. My generous consideration for him was, however, insufficiently appreciated, I fear. The prevailing character of the mainland at South Cape, and of the islands in China Straits, is that of a mountainous region covered with dense tropical vegetation. The climate is exceedingly humid, and, though the scenery is very beautiful, it is not a country which is likely to attract European settlement. I should not regard it as an exceptionally unhealthy region if reasonable precautions are taken to avoid living under insanitary conditions. Its capacity for the growth of cocoanuts and the manufacture of copra is practically unlimited; but the supply of cocoanuts is not large at present, and does not much exceed the requirements of the native population. As a central point from which to direct administration, I prefer Samarai (Dinner Island) to South Cape. lam not, however, satisfied with the sanitary conditions of Samarai. There is a swamp in the centre of the island, and there is an exposed reef to windward. The former may be got rid of ; the latter cannot. As a site for a settlement I should prefer either Stanley Harbour, on Zareba (Heath Island), or the neck of an isthmus on Logia (Heath Island), opposite to Stanley Harbour. At both of these places there is good anchorage and an abundant supply of running water. As an anchorage, however, Her Majesty's ships of war prefer Samarai, and this consideration dominates at present. I think, however, that on better acquaintance the anchorage at Stanley Harbour might be found to be quite as good as at Samarai, and as a site for a settlement it is, in my opinion, superior to any I examined in China Straits. Zareba (Hayter Island) is a large island, abounding in rich soil, fine forest, and running water. The natives also are perfectly friendly, and, being tolerably numerous, could soon be made to influence the neighbouring tribes on Basilisk and Moresby Island, who at present have rather an evil reputation. Mr. H. 0. Forbes has in the meantime consented to remain at Samarai until the end of March. He proposes then to visit Australia in order to ascertain if he is likely to receive support in his explorations in the vicinity of Mount Owen Stanley and the Great Dividing Eange. Mr. Kissack has, with my permission, established a store and trading-station at Samarai. It will be necessary, when authority is fully constituted, to appoint some one permanently to represent the Government of the Protectorate in China Straits. The Eesident there should have under his orders a sufficient force to make his authority respected. He should have a smart lugger, and a force of not less then ten men. Eight Fijian policemen, under the command of a European officer who could handle a sailing craft, would suffice, I think, for the purpose of maintaining and protecting both the natives and the Europeans in China Straits and the neighbouring islands. Her Majesty's ships of war will occasionally visit the group, as they do at present; but they cannot be expected to undertake police duties, and should not be asked to do so.