In Fiji and Samoa, cotton, sugar and tea are grown to advantage. The climate there is much the same as that of New Guinea, therefore there is nothing, so far as I can see, to prevent them from being cultivated in the latter country. The two things most necessary to develop the above-mentioned industries are cheap land and capital. The Government of New Guinea have not, I believe, as yet formulated their land policy, but I should think that to anyone introducing capital into the country, for the purpose of starting a genuine enterprise, they would be only too glad to offer every inducement. The great drawback at present, is the unhealthiness of the climate, but as cultivation proceeds, that will improve. In considering the feasibility of these undertakings, the first question that presents itself is the labour question. What labour would there be available? Would it be possible to utilise the natives of the country, or would it be necessary to import black labour? The question is, I admit, a serious one, as upon the answer depends the success of such undertakings. Now, I have had considerable experience in working the natives and therefore my opinion should have some weight. I have no hesitation in saying that it would be possible to utilise the natives as labourers. I have undertaken several contracts in New Guinea, the work being done solely by natives. One of the contracts was to clear a swamp of seven acres of all the timber on it, and to cut up the timber into suitable lengths for building purposes, and to stack it outside the swamp, and to burn the undergrowth and small stuff in heaps. I engaged twenty-five natives, and before commencing operations, made a contract with two of the leading men to execute the work at so much per head, giving to the two Taubadas or chiefs, a little extra. The work occupied 12 days, and was performed in a thoroughly satisfactory manner. I superintended it, and was very much pleased with the result. The wages were paid on completion of the contract in hatchets, long knives, tobacco, etc. On the Saturday night, the natives appeared in a row, awaiting payment. I asked them if the job was finished, to which they all replied "Yes, and that their backs were nearly broken with the hard work," which merely meant that they were tired, and were in a hurry to receive the "trade." As seeing is believing in these matters, before paying them I examined the work, and found that they were mistaken. They had still five or six hours' work left to complete their task. However, when I informed them of the fact, they stated it was Saturday night, that they wanted to get home to their island, and evidently did not want to return on the Monday morning for the sake of a few hours. I was on the horns of a dilemma. They had worked well, still I did not want to be cheated, and on the other hand I wished them to go away in good humour as I might require their services again before long.