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PUBLIC RECORD OFFICE

Reference :-

C.O.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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All imports come into the Protectorate from the Australian Commonwealth, but a small proportion represents direct orders placed in markets outside the Commonwealth. Prior to the War the proportion of imports from enemy countries would not exceed about seven-and-a-half per cent. of the total imports, mainly restricted to certain lines of trade goods of cheap class made for native trade. Under normal conditions, and without further development, the imports may be expected to reach £150,000, which can be accepted as a fair average for current requirements. The exports average, annually, about £100,000, eighty per cent. of which is copra, the remaining twenty per cent. is made up of ivory-nuts, pearl shells, fruit, etc. The development in the Protectorate is at the present time restricted to the cultivation of coco-nuts for the supply of copra; it is estimated that thirty to thirty- five thousand acres are under cultivation for coco-nuts alone this does not include the groves of native-grown trees, of which there must be at least two thousand acres. The whole of the produce, with the exception of about one per cent., which is sent to Noumea, is shipped to Sydney by the regular line of steamers running between the group and Australia.

Some of the local planters have recently been advocating for shipment of the local produce direct to the place of consumption, this will ensure higher returns, as the extra freights and cost of handling in Sydney considerably reduces the net returns; the principal argument against this is the question of return freights, but I doubt if this will make a great difference, as the future exports will very shortly be far in excess of the bulk of imports.

Prior to the War Germany exploited the copra and ivory-nut trade, securing large quantities, which, although exported to Sydney, was destined for Germany. The trade in ivory-nuts was entirely developed by Germany. This is a product which can be produced in quantities; the trees are not cultivated, and abound in the swamps. Since the War attempts have been made to revive the trade, which is very profitable, but, so far, no market has been established, and thousands of tons are allowed to go to waste; there is no reason why other markets within the Empire should not be found for this product.

The export of pearl and other shell cannot be considered as permanent, although the present shipments are fairly large. The reefs will in time be denuded unless means are taken to prevent the indiscriminate gathering of the shell; at present this trade is being exploited mainly in the interests of foreign manufacturers. Beche- de-mer fishing is restricted to a few Japanese, who appear to do well; the collecting of this fish should be restricted by regulation.

The forests of magnificent timbers has so far not received much attention, yet it is known that the timber industry is capable of being developed, and the exports should be a feature in the future. There are large quantities of soft woods, which might be used for paper pulp.

The Solomon Islands can produce many tropical commodities which can be placed on the markets of the Empire.

The future development of the islands is largely dependent on the native labour supply, but, as this is a question to be dealt with independently, I do not propose to touch upon it.

In order to encourage the trade of the group to be kept within the Empire it may be necessary to devise some scheme to give some protection and prevent the trade from again being diverted to foreign enemy countries.

His Excellency

SIR,

The High Commissioner

for the Western Pacific,

Suva, Fiji.

(H.C.W.P. No. 186.)

have, &c.,

F. J. BARNETT,

Acting Resident Commissioner.

Enclosure 4 in No. 42.

Resident Commissioner's Office, Ocean Island,

Gilbert and Ellice Islands Colony, 30th July, 1917. WITH reference to Your Excellency's letter No. 109, of the 24th May last, and to the Secretary of State's Circular despatches of the 25th September and 24th October, 1916, on the subject of the commercial and industrial policy to be adopted after the War, I have the honour to report that, so far as this Colony

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is concerned, it appears that no special recommendations are called for except as regards the export of the high-grade phosphate from Ocean Island.

2. Previous to the War a very considerable proportion of the annual output of phosphate, both from Ocean Island and from the neighbouring German island of Nauru, was exported direct to Germany. The output of phosphate from these two islands has been reduced by more than fifty per cent. since 1914, and the whole of the phosphate now exported--with the exception of a few thousand tons, which are sent each year to Japan-is shipped to Australia.

3. It appears that during the period of reconstruction, when the lands of the Empire, impoverished during the War, will be much in need of fertilization- there is every reason to urge the prevention of phosphate export, either directly or indirectly, to (present) enemy countries.

As regards the export of copra, which is the only industry from this Colony which need be considered with the exception of the phosphate above referred to, and as regards the introduction of enemy trade goods, no special recommendation appears to be called for. These matters will undoubtedly be dealt with by the larger Colonies affected, and it should be remembered that this Colony's trade is, to all intents and purposes, entirely with, or conducted through, the Common- wealth of Australia.

His Excellency

SIR,

The High Commissioner

for the Western Pacific

Suva, Fiji.

(H.C. No. 17 of 1918.)

I have, &c.,

E. C. ELIOT,

Resident Commissioner

Enclosure 5 in No. 42.

Office of the Administrator,

Pleasant Island (Nauru), 25th February, 1918.

In reply to your letter No. 51, of the 24th May last, I have the honour to forward the attached memorandum for Your Excellency's consideration.

2. The delay in submitting this paper is much regretted, but I was only recently aware that it had not been already answered.

His Excellency

The High Commissioner

for the Western Pacific,

Suva, Fiji.

I have, &c.,

G. B. SMITH-REWSE,

Acting Administrator.

MEMORANDUM ON SECRETARY OF STATE'S CIRCULAR OF 25TH SEPTEMBER, 1916

(a) THE Secretary of State's Circular despatch of the 25th September, 1916, states that the Committee appointed to consider the commercial and industrial policy of the United Kingdom after the War, with special reference to the conclusions of the Paris Conference, will consider the questions before them primarily from the point of view of the United Kingdom.

(b) But its appointment is a step preliminary to the convening of a conference representative of the United Kingdom, the Dominions, and India. Hence, any special circumstances affecting the interests of any particular Colony or Pro tectorate will be considered by such conference.

(c) The island of Nauru is "

in the confident belief that it will remain British territory after the War, may be taken into consideration equally with any other British possession in the Pacific. (d) The special circumstance which affects the interests of Nauru is the phosphate industry and its future development.

'enemy territory in military occupation," hut

The undernoted points, which emphasize the importance of this industry are especially worthy of note:-

(a) The export of phosphate from Nauru and its neighbour, Ocean Island, has been ruled to be an "

essential industry."