The Secretary, Department of Defence, has forwarded for advice the following memorandum received from the Chief of the General Staff:

The Administrator, Rabaul, reports that under the German Law the Deutsche Handels Plantage Gesellschaft of Samoa is entitled to obtain recruits in German New Guinea, and requests to be advised whether 200 recruits, to replace the same number who are now being returned from Samoa to New Guinea, should be allowed to be recruited and sent to Samoa.

It appears from this file that the question of recruiting in German New Guinea for other islands in the Pacific has been previously under consideration, and that it has been the policy of the Australian Government to discourage such recruiting.

There seems to be no military question involved in this matter, and there is no military objection to the request being granted.

In view, however, of the declared policy of the Government, it is thought that it would be proper to obtain the advice of the Crown Law Officers as to whether the rights under German law of the Deutsche Handels Plantage Gesellschaft are to be regarded as still in force or whether they are suspended.

If they are still in force it will be for the Government to decide whether its policy previously declared shall apply also in the case of that Company.

In reply to a request for information as to the particulars of the German law relied on by the Company, the Acting Administrator of German New Guinea telegraphed as follows:

July 26 your W 11226 by German Governor's Ordinance of 4th March 1909 Amtsblatt 1st April 1909 page 38 Deutsche Handels Plantage Gesellschaft was given right of recruiting native labourers from German New Guinea Protectorate for certain authorised plantations beyond territorial limits of this Protectorate subject to obtaining annual permit from Governor here and adherence provisions Native Labour Regulations. Company's Samoan plantations are authorised within meaning of this Ordinance. Ordinance ratified and confirmed rights of overseas recruiting enjoyed at date 15th August 1888. Prior to publication this Ordinance Company held Kaiser's licence oversea recruiting from German New Guinea Protectorate to Samoa dated 1885. Company has produced for inspection Governor's annual permission oversea recruiting to Samoa up to year 1914 inclusive. Mackenzie advises Company held undoubted right recruiting from Protectorate to Samoa up to and including year 1914 when owing war and seizure of recruiting vessel as prize and military occupation this Colony and Samoa this Company precluded for present from further recruiting for Samoa. Position affects 727 boys who will be time-expired next September majority being long overdue for return here delay causing unrest natives and petitions from parents and relatives for an early return.

I have deferred dealing with the matter in order to obtain further particulars from the Deputy Judge Advocate General, Brevet Lt. Col. S. S. Mackenzie. These having now been obtained, it appears to me that the position is as follows:

Under the law in force in German New Guinea at the time of the military occupation the Company had undoubtedly the right to recruit native labourers for Samoan plantations.

The right was subject to the granting by the Governor of German New Guinea of an annual permit.

The Governor had absolute discretion to issue or withhold the annual permit.

In the event of the withholding of the permit the Company would be unable to recruit fresh labour, and would be obliged at the expiration of the period of their engagement to return all labourers already recruited.

Under the military occupation the powers conferred by German law on the Governor are exercisable by the Administrator. The Administrator has therefore discretion to determine whether to grant or refuse the permit desired by the Company. If he refuses the permit the Company could be required to return to New Guinea all the native labourers whose time has already expired.

[Vol. 15, p. 167]

1. Date in Openion Book incomplete.