from China would be through any of the Seas or Passages comprised between New Guinea and the Malayan Peninsula.

One Steamer left Foochow this year with tea for Sydney and Melbourne, going to Australia and returning to Woosung by way of Dampier Strait, between New Guinea and New Britain. The Master reported this as a favorable route but said it required surveying.

The Trade between China and the Australian colonies is becoming a very important and valuable one. But here, as elsewhere, steam communication is superseding the use of sailing vessels; and, if any fresh surveys are in contemplation, I am of opinion the passage between New Guinea and New Britain has a good claim to consideration as teas for the Australian Markets will probably be conveyed by that route.

It would perhaps be well to establish the Sovereignty of the Duke of York and Caroline Islands by treaties, as the Spanish Government make some pretence to a control over them, they having on one occasion (despatch No. 3438 of 1874) objected to sanction the Master of a German Schooner clearing for them.

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