The Secretary, Department of Defence, asks for advice as to the following paragraph from a minute dated 25 October 1914, from Major Heritage to the Administrator at Rabaul:

It is submitted that the captured ships are legal prizes, the Siar having been engaged in bringing contraband goods from abroad, and with the assistance of the Matupi and Senta smuggling such goods ashore at various points in the Archipelago. The Siar was flying the German flag when captured; the Master of this vessel informed me that his instructions were to take all steps to avoid capture by a British ship.

In my opinion Major Heritage's view that the captured ships are lawful prize is correct. Nothing is stated in the report as to their ownership-whether public or private-but the Siar is stated to have been flying the German flag and all appear to have been armed and substantially under the control and direction of the enemy.

[Vol.13, p.281]