PUBLIC
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8855 PUBLIC RECORD OFFICE, LONDON
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ment, and transmitting his instructions, it was discovered incidentally that the Colonies were expected to defray the whole cost of the Protectorate. No information, however, vas given on the important subject of the future administration of its government.
7. The Colonies were subsequently informed of an extension of the boundaries of the Protectorate, and of Her Majesty's intention to annex the territory included in it to the British Empire; and on the 14th of August 1885, Colonel Stanley telegraphed to the Governors of the Colonies as follows:-
"Her Majesty's Government willing to proclaim Queen's sovereignty and to contribute to cost of New Guinea if Colonies agree to following arrangement. Colonies to contribute 15,000/. per annum, and provide any further expenditure they may approve. Imperial contribution will be the gift of suitable ship, costing, delivered at New Guinea, not less than 18,0007. This offer made in full confidence that your Government will as soon as possible obtain from Legislature Act to secure permanently annual proportion. On proclamation of sovereignty Scratchley would have full legislative powers and control over all nationalities." No further information has, up to the present time, been afforded as to the manner in which it is proposed that the government of the territory should be administered.
8. With the exception of Queensland, which has already passed an Act for the permanent appropriation of its contribution, none of the Colonies have taken action upon the invitation to do so. The Colony of South Australia has formally withdrawn from the joint guarantee, and I infer that, under existing circumstances and in the absence of any more definite and satisfactory proposals from Her Majesty's Govern- ment, the other Colonies are not likely to take the action suggested, especially as the telegram which I have just quoted appears to indicate that, with the exception of the first cost of a ship, the Colonies are expected to bear the whole expense of government, but are to have no voice in its administration. In the absence, however, of a formal and binding guarantee, Her Majesty's Government do not appear disposed to advise Her Majesty to assume sovereignty over the Protectorate.
It is clear, nevertheless, that until the territory is annexed to the British dominions no provision can be made for the maintenance of law and order, or indeed for any real government.
9. If the existing state of things in Australasia admitted of the establishment of a joint Council of Advice such as that suggested in Lord Derby's telegram of the 31st of October 1884, I should be much disposed to advise the constitution of such a Council, and the appointment of an Administrator of British New Guinea, with instructions to be guided by the advice of the Council. I apprehend, however, that this scheme is, for the present at least, not practicable, and may be left out of consideration. The annexation of British New Guinea to Queensland is also, I apprehend, out of the question. Nor, for many reasons, do I think it desirable.
10. Her Majesty's Law Advisers in Great Britain have, I understand, formally advised that the territory when annexed must be taken to have been acquired by settle- ment and not by conquest or cession, and that the provisions of the Imperial Acts 6 and 7 Vict., c. 13, and 23 and 24 Vict., c. 121, by which it is provided that in Colonies acquired by settlement powers of legislation may be exercised by the Queen by Order in Council, or by three or more persons within the Colony to whom the Queen has delegated such powers, are consequently applicable.
11. The essential elements of the position appear then to be these: It is necessary that the territory should be annexed to the British Empire, but Her Majesty will not be advised to assume sovereignty until the Colonies, or some of them, undertake to bear the whole cost of administration, except perhaps some small initial contribution. On the other hand, the Colonies are unwilling to give such an undertaking without a clear understanding as to the future government of the territory, or unless they have a substantial control over the expenditure of the money contributed by them." And such control cannot at present be exercised by them collectively.
12. These considerations seem to point to the conclusion that under existing circum- stances one of the Colonies should, on behalf of all, undertake to provide the necessary funds for defraying the expenses of administration, and should be entrusted with the necessary authority to supervise the expenditure and see that the administration is conducted on principles which meet with their general approval.
13. With respect to the probable cost of government, I have reason to believe that a considerable revenue might even now be raised in British New Guinea from import duties, licenses to cut timber, and other similar sources, and that, at any rate after the first year or two, a sum much less than 15,000l. would have to be annually con- tributed by the guaranteeing Colonies. The expenses of administration need not,
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I think, be heavy. The untimely and lamented death of Sir Peter Scratchley has deprived us of the advantage of his experience, and of the information gained by him on his visit to the various parts of the Protectorate; but further consideration has led me to the conclusion that the maintenance of a costly steamer, upon which, under his proposals of 1st April 1885, a very large proportion of the annual contribution of 15,000. would have been expended, is not necessary; and that a good sailing schooner, with a small steamer stationed at or near Torres Straits (which might be also used for the purposes of the Queensland Government at Thursday Island, that Government bearing part of the expense) would be sufficient for immediate require- ments. I doubt, also, whether the salary of 2,5007. for the Administrator is not excessive. Reductions in these items would leave, with the anticipated revenue, which should be chiefly collected through the Custom House, a considerable margin for the payment of a judicial officer and one or two resident magistrates and other officials. The burden that the Colonies would be called upon to undertake would therefore be light; and would, probably, continually diminish, until in a few years the settlement became self-supporting. It is not improbable, however, that Her Majesty's Government might be willing to make some substantial contribution towards the initial expenses.
14. I apprehend that if one of the Colonies is to be entrusted with the primary responsibility of providing the necessary funds and the function of supervising their expenditure, the choice would naturally fall upon Queensland, which from its geographical position, is most conveniently situated for the purpose.
15. The question would then arise how far should the administration of British New Guinea be subject to the direction of the Government of Queensland? The same objections which would be held to render it inexpedient to annex the territory to Queensland would probably also be deemed to extend to exclude a complete dependence upon the Government of this Colony. And it is likely that Her Majesty's Government would stipulate for the establishment and maintenance of proper safe- guards for the protection of the interests of the native races. In my judgment such a stipulation would be both satisfactory and desirable. Some general rules night also be laid down as to the prohibition of the purchase of land except from the Govern. ment, and of trade with the natives in arms, ammunition, explosives, and intoxicants. I have reason to believe that the German Government have agreed to enforce the latter prohibition in their territory in New Guinea.
16. I therefore suggest the following conditions as a basis for the administration of British New Guinea in the immediate future:--
(1.) That the Colony of Queensland should undertake by a permanent Appropriation Act to defray the cost of the administration of the Government to an extent
not exceeding 15,000l. per annum for a term of, say, ten years, subject to the following conditions.
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(2.) That the other Colonies should undertake (by similar permanent Appropriation Acts, if practicable, or by resolutions of their respective Parliaments) to repay to Queensland, for the same or such shorter period as may be agreed upon, a proportionate part of the amount which Queensland is called pay under her undertaking, cach Colony contributing either a fixed pro- portion of the total of 15,000l., or an amount proportionate to its population as estimated on the 31st of December preceding the year of contribution (except in the case of Fiji, whose contributions should be on the basis previously agreed upon), and Queensland herself bearing a proportionate share. (If desired, however, I do not think that Queensland would object to bear a somewhat larger share of the cost than would be payable on the basis of her population. But it should be remembered that the general supervision proposed would entail, indirectly, considerable expense.)
(3.) That the Imperial Government should be requested to make a reasonable contribution (by way of loan or otherwise) to defray some of the initial capital cost of the necessary Government buildings, &c.; such contribution, if made by way of loan, to be a charge upon and repaid from the revenue of the new Colony when practicable.
(4.) That for any expenditure of money by Queensland beyond its agreed proportion, Queensland should have a first charge on the surplus revenue of the new Colony.
(5.) That upon the proposed guarantee being given by Queensland, Her Majesty
should assume sovereignty over the Protectorate.
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