Pearl-oysters are among the important resources of the inshore waters of the Dutch East Indies, including the surrounding seas of Sumatra, Java, Borneo, Celebes, the Aru Islands, the Moluccas or Spice Islands, and Papua or New Guinea. For very many years the natives have gathered pearl shell and pearls from these waters, and especially on the coast of the Aru Islands, at Gilolo or Halmahera, and the islands thereabout, on the east coast of Celebes, and about the Sunda group. The collections were made in the shallow waters by beach-combing and by nude diving, and were bartered with the Chinese and Arab traders sailing from Singapore, Macassar, and other ports. Occasionally a pearling vessel from Singapore or from Torres Straits would try its luck in these waters; but, except for the work of the natives, the reefs were practically untouched previous to 1883. As the Australian fleet increased in size and the oysters became scarce in Torres Straits and on the northwest coast, some of the vessels occasionally visited the Aru Islands, the coast of Papua, etc. These met with considerable success and the number of trips increased, especially in 1893, when oysters were unusually scarce in Australia. The following year, 1894, the government restricted the fishery to inhabitants of the Netherlands and of Netherlands India, or to companies established in those countries and operating under the Dutch flag. Owing to the activity of Dutch capital in coffee, tobacco and other plantation enterprises, the pearl resources received very little attention from them. The success of the Australian fishery encouraged the formation in 1896 of an Amsterdam company to exploit the Aru grounds; but apparently without financial success, for it liquidated in 1898. [Illustration: Pearling village, with youthful fishermen. Sulu Islands ] [Illustration: Japanese diver in Dutch East Indies, come up to “blow” for a few minutes ] In the meantime, residents of these islands paid more and more attention to the pearl fishery; also Europeans, Chinamen and Arabs arranged with the native chiefs for fishing in their territorial waters, paying therefor a fixed sum in cash or a percentage of the catch, which was permitted on approval by the governor-general of Dutch India. The fleet continued to increase from year to year, and in 1905 there was a very large influx of vessels from the Australian fisheries, 110 luggers and 7 tenders coming from Thursday Island alone. The species are the same as occur on the northern coast of Australia, the “silver edge” or “golden lip” (_Margaritifera maxima_) occurring in greatest abundance, and the “black lip” (_M. margaritifera_) to a less extent.