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 might, with the consent of the Queensland Government, be empowered to act for the New Guinea Protectorate.

(4.) Funds arising from trading licences, judicial fees, harbour dues, and leases of certain unoccupied lands.

(5.) Import duties.

(6.) Native contributions to the expenses of government. These would have to be paid in kind, and could hardly be calculated as a source of revenue for some years to come.

The question with regard to New Guinea which at present is most prominent is whether it can be made a successful outlet for capital, or, in other words, a commercial success. Before, however, considering this point, it will be necessary to recall the fact that New Guinea was primarily annexed for a strategical purpose. Its value to Australia in this respect has not been diminished by the fact that portion of the country has been ceded to Germany. Not only is the British territory nearest the Australian shores; but it contains the best climate, the finest harbours and ports, the most fertile lands, the largest rivers. The object, therefore, for which the country was primarily annexed has been obtained, and its strategical and negative value in this respect is not unfrequently lost sight of by those who only look for positive financial results.

The next point which demands attention is the responsibility which rests with the annexing powers with regard to the protection of the natives. Probably, in no country, and at no period of history, was there a more favourable opportunity for successfully adjusting the mutual interests of European and blacks than in British New Guinea. On both moral as well as politic grounds, it is essential that the natives should be protected, not only negatively from aggressive violence and usurpation on the part of the whites, but positively also from moral contamination and corruption. Regulations with regard to the introduction of spirituous liquors must not exist merely on paper—they must be strictly and rigidly enforced; and, as far as is practicable, the system of appointing teachers to official positions must be avoided. The following statement with reference to this question appears among Sir Peter Scratchley’s notes:—"The only hope of making New Guinea pay is the employment of the natives, who can, by patience and care, be trained. If they disappear, other natives will have to be imported. Putting, therefore, the protection of the natives on the lowest ground, it will be seen that it will be cheaper to preserve and educate them. New Guinea must be governed for the natives and by the natives."

The future of the country depends largely upon the attitude of the natives. If they are rendered either hostile or corrupt, then it will continue to be the