BRITISH TRADERS IN THE MARSHALL AND CAROLINE ISLANDS. (Hansard, 13 July 1905)

THE EARL OF JERSEY

rose "To ask the Secretary of State for Foreign Affairs whether he was able to give further information concerning the negotiations with the German Government with respect to trade in the Marshall and Caroline groups of islands." The noble Earl said: My Lords, it will be within the recollection of the House that when this matter was last brought forward the noble Marquess was able to give a friendly and satisfactory answer from the German Government so far as its terms went. I should be glad to know it any further progress has been made. There are two main points. The first is 528 compensation for damages, and on that I would ask the noble Marquess whether any advance has been made towards a settlement. The other point is, what will be the position of British trade in the Pacific after October 1st? At the present time British traders are shut out from the Marshall Islands, whilst German traders trade freely with islands within the British group. German traders have been going round the German Islands and securing, for export exclusively in German ships, the trade of these islands, so it is very important that British traders should know what their exact position will be after next October. It is quite possible that steps will be taken in the interval which will bar British traders from the benefits of free and equal trade in these islands as arranged under treaty. The noble Marquess said on the last occasion that the German Government considered this, a matter of trivial importance, and therefore not one on which the two-nations should have a quarrel. That is perfectly true; and, therefore, I should be glad if the noble Marquess could persuade the German Government that though the matter may not now have created strong feeling, yet, if delay continues, it is quite possible that very acute feeling will be created in Australia upon the matter, which we should all deplore. I hope the noble Marquess will be in a position to say that some further advance has been made towards a settlement of this question.

§ *THE MARQUESS OF LANSDOWNE

My Lords, I cannot add very much to the statement which I made on this subject on a former occasion. I may, however, tell my noble friend that we are in correspondence with the German Government in regard to the several points which arise out of the termination of the monopoly of the Jaluit Company in the Marshall Islands. Among those points are, I think, most of those to which he specially referred. We have desired our Ambassador in Berlin to obtain information as to the conditions under which land can be acquired with a view to securing domicile for trading purposes. The question arises whether the existing rule does not virtually prevent foreigners from obtaining domicile. We have also instructed Sir 529 F. Lascelles to ask whether the British firms which have been excluded from trade in the islands will after October 1st, when the monopoly terminates, be able to resume operations without unreasonable restrictions. We have also called the attention of the German Government to the alleged German monopoly in the Caroline Islands. We are under the impression that the prohibition of trade there is not absolute, and that it is probably the result of unauthorised provisions imposed locally without the knowledge of the superior authorities. My noble friend refers to the question of compensation. We have intimated to the German Government that the question of compensation has been raised, and that it will have to be considered. We have not yet received replies to these inquiries. Indeed, I think there has scarcely been time, making allowance for the ordinary delays of official correspondence. I can only add that we are quite aware that a very strong feeling on this subject exists in the Australian Colonies, and that we shall not fail to bring to the notice of the German Government the fact that that strong feeling exists.