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have to perform his duties with the certainty of having to incur considerable risks. If it were intended to station a police magistrate or a resident on some point on the coast at Bampton Island, Port Moresby, or East Cape, then I think that a salary of 1,000l. a year night suffice, but I do not understand that this is what is contemplated.
6. So far, then, from the amount of the 15,0001. a year which has been spoken of being more than sufficient for the contemplated purposes, I cannot myself regard it as sufficient, if Sovereignty is to be proclaimed.
In the estimates framed by the late Special Commissioner no provision was made for the Administration of Justice; for the cost of the survey of land—a most essential and primary condition for settlement; nor has any suitable provision been made for the payment of a Health Officer or a Medical Superintendent.
7. At the lowest estimate of probable expenditure on the lines contemplated, I cannot name & sum less than 20,000l. per annum as required for the essentials of a well-ordered Government in British New Guinea for the first five years. Nor can I venture to anticipate that the revenue, either from dues collected or from land sold, would in the first few years meet the expenditure.
8. It is, nevertheless, most essential that, when Sovereignty is proclaimed, some stability and continuity should be attached to the Administration. For this reason I regard it as most desirable that the Governments of Australasia, acting in combina- tion with Her Majesty's Government, should advance a specific sum, to be expended over a series of years (say five), on an estimate of annual expenditure not exceeding 20,000!. the capital sum thus advanced to be secured on the revenues of New Guinea when collected. I regard such an advance as one made on ample security, and in dealing with this matter in the Australian Parliaments it should be treated strictly as an advance covering a liability. I take the liberty of pressing upon your Ex- cellency's attention the utter futility of causing the future administration of New Guinea to be made dependent on sums of money to be annually voted by half a dozen Parliaments.
9. It seems certainly to be most necessary that the conditions on which the con- stitution of the new Province is to be founded should be specified in the organic instru- mert under which Her Majesty may be advised to confer jurisdiction, and in this respect I have nothing to add to Mr. Griffith's remarks. These principles, however, having been agreed on, and stamped on the Constitution, I cannot think that there would be much advantage in a detailed control in administration exercised by the Government of Queensland, unless, indeed, it should be proposed to effect a territorial incorporation. This, I apprehend, is not contemplated, and Mr. Griffith has said that, in his opinion, it would not be desirable.
10. It is essential, as Sir Peter Scratchley has remarked in one of his later memoranda, that British New Guinea should become part of the Anglo-Australian political system. For this reason the principles of its constitution should be in accord with those laid down by the associated colonies or states of Australasia. Its future legislation, subject as it must be to Her Majesty's assent, might also be submitted for the sanction of the Federal Council when fully constituted. But I cannot bring myself to think that the catimates of expenditure should be subject to the annual adjustment of the Queensland Executive, or indeed of any combination of Australasian Executives. Such subjection might, and probably would, paralyse the action of the New Guinea Executive. At the same time, it must be admitted that the Queensland Executive might be of the greatest use as the exponent of the Federal Council. It might also materially assist in the administration of justice, and in the auditing of accounts, so as to secure an expenditure in accordance with the scheduled estimates. For the first few years this would be necessary, and I am confident that the Government of Queensland may be depended on to give the aid which in these respects the infant state of New Guinea will so much require. I wish, however, earnestly to draw the attention of Your Excellency's Government to the fact that financial stability and continuity are of the utmost importance. A scheduled estimate should be agreed on. The money thus advanced should be applicable, in that form, for a period of not less that five years, and the whole amount thus advanced should be secured on the future revenues of British New Guinea.
Sir Peter Scratchley, I observe, expressed an opinion that it seemed to be doubtful if the country could be made self-supporting. I owe every respect to General Scratch- ley's conclusions. I am bound to say, however, that I entertain a different opinion. I assume that European settlement will go on hand in hand with the gradual attraction of the native races to industrial pursuits. Land will be acquired by the Government
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from the natives, and will be sold. I have seen at Thursday Island how a revenue grows up, under conditions not very different from those which prevail in New Guinea. I have some confidence, therefore, in concluding that, under judicious management, a revenue may be obtained for all the essential purposes of government. But I readily admit that, for the first few years, there must be some expenditure in advance, and I have already stated what I think the minimum of that expenditure should be.
11. Allow me, in conclusion, to draw your Excellency's attention once more to the meeting of the Prime Ministers of New South Wales, Victoria, and Queensland, which, it is expected, will shortly take place in Sydney.
It is, of course, exceedingly desirable that there should be concerted action on the part of the Australian Governments on this question. They are in honour bound to maintain Her Majesty's Government in the future government of New Guinea, and I regret extremely to observe that the Province of South Australia has, for the present, notified a discontinuance of payments on account. From communications, however, which I have had with Lord Carrington's Government in New South Wales, and with Sir Henry Lech's Government in Victoria, I feel confident that no defection need be feared from them, and I anticipate their hearty co-operation with your Excellency's Government.
12. I assume, for the moment, that the three Colonies I have named would be willing, each of them on behalf of the whole Australian Group, to guarantee an advance of 25,000/., being at the rate of 5,000/, a year each for five years. This would amount to a capital sum of 75,000. On such a sum of money being guaranteed, I cannot doubt that Her Majesty's Government would accept its share of responsibility, and would probably be willing to guarantee a similar amount, by way of advance, to be secured in like manner on the accruing revenue. This would provide the Government of New Guinea with the means, and not more than the sufficient means, for an efficient start in life. I assume that a steam vessel must be obtained, and that a small sailing vesse with several whaleboats will be required for the use of the New Guinea Government, Houses also will have to be built for the agents--native and European-which it will be necessary to domicile on the coast. It may be desirable also to erect some small jetties. Having regard, therefore, to such outlay as this on capital account, as well as to the annual expenditure, I do not regard an amount of 150,000l., expended over five years, as by any means excessive for the purposes of establishing a rudimentary form of government having effect over the wide area which has been added to Her Majesty's dominions.
13. I will presume to add, that it becomes a duty incumbent on Her Majesty's subjects in Australia to devise the means for giving effect to a project of government which is of most momentous importance to hundreds of thousands of human beings, of whom as yet we know so little.
14. I confidently anticipate, therefore, that the hearty interest which has hitherto been shown by your Excellency's Government in this matter will be shortly followed up by some definite propositions, to be submitted to Her Majesty's Government; and I shall deem it a favour if your Excellency will inform me of the nature of the propositions when an understanding has been arrived at.
I have, &c. (Signed) JOHN DOUGLAS,
His Excellency Sir Arthur Palmer, K.C.M.G.,
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Her Majesty's Special Commissioner
for British New Guinea.
JOHN DOUGLAS, Esq., C.M.G. (NEW GUINEA), to the RIGHT HON. THE EARL GRANVILLE, K.G. (Received July 5, 1886.) MY LORD,
Port Kennedy, Thursday Island, May 20, 1886. I HAVE already informed your Lordship in my Despatch of even date here- with, that although I have not been officially informed of the contents of the draft proposals for the future administration of British New Guinea which have been agreed to by the Governments of New South Wales, Queensland, and Victoria, at Sydney on
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