British Agent in the Pelew or Caroline Islands, and the proposed negotiation of treaties with the native Chief of those Islands, I have the honour to inform Your Lordship that from the result of enquiries which I have instituted into this matter, the interests of British Trade would not at present appear to require the negotiating of such treaties.

This remark however, has reference simply to the course which trade appears likely to take between Australia and China, and I am not in a position to offer opinion as to how far political considerations, or the possibility of the Islands themselves containing the elements of an independent development of commerce might make it worth while to adopt the suggestions of Mr. Ricketts. From a report, a copy of which I have the honour to enclose - which the Harbour Master, Mr. Shadgett, has made on the probability of the adoption of the route mentioned by Mr. Ricketts by ships trading between Australia and China, it is in his opinion likely that sailing vessels would pass through the passages indicated by Ricketts, but that steam ships...

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