The country, meanwhile, was not developed in any way; the expenses of the Protectorate were considerable, when, as luck would have it, payable gold was discovered in July, 1888, on Sud-Est, an island in the Louisiade Archipelago (British New Guinea). Hereby hangs a tale, of which I shall speak in another chapter. This discovery caused the Home Government to create New Guinea a British possession, which was declared at Port Moresby on September 6th, 1888, and an administrator, now Sir Wm. Macgregor, was appointed. A high tariff was at once imposed on all imports, which revenue came as a godsend to the impoverished state of the New Guinea funds. Such is a brief outline of our early administration of the country. * * * * * Early the next morning, having said good-bye to the genial skipper of the _Spitfire_, I took myself and belongings on shore, as I intended to make Samarai my headquarters. Samarai is a small but picturesque island containing about 60 acres, situated in China Straits, which is the loveliest and most romantic-looking harbour I have ever seen. The island has a beautiful grove of coco-nut trees, with curious-looking hills on the S.E. or weather side. They look as if they had at some period subsided, leaving their tops only visible. There is a fine coral beach running along the north-west or lee side of the island and facing the mainland, one and a half miles distant. There is a swamp of seven acres in the middle, the home of malarial fever, thus making this island one of the most unhealthy spots in New Guinea. A government agent is located there and has charge of the customs. In the time of the Protectorate, a large wooden bungalow was built on the top of the highest hill by Rooney & Co., of Townsville, costing the sum of L900. About 60 natives lived on the island, which had been their home for many years. In August, 1888, just previous to the acquisition of New Guinea as a British possession, they were all driven away, or euphemistically got notice to quit. In lieu thereof, they were offered the island of "Quato," situated in China Straits, which had been purchased from the natives by the Protectorate some time previous. The natives were naturally incensed at being thus rudely driven from their island home, where they had lived for so many years, and refused to emigrate to "Quato." Some went to their friends at Heath Island (Loger), some to "Sariba," in China Straits. I consider their case a hard one, and the act of the Government unwarrantable. What on earth did the Government require "Samarai" as a station for when they had the choice of islands in the immediate vicinity, in the same harbour, islands far healthier, with good anchorages, well sheltered, and with no natives, or may be only one or two, living on them?