Take a map of the world and look at the Soutn Pacific, peppered over with islets and archipelagoes in bewildering profusion. In passing, glance at the relation which the Panama Canal bears toward us, and endeavour to forecast what effect the opening of that canal will have upon Australasia—and especially the ports of Auckland and Sydney. Some of the maps indicate in colour the nations which are in possession of the various groups, and one who does not happen to be so familiar with island geography as he ought to by is likely to he amazed to find Germany and France so largely represented.

Gifts that Britain Refused.

That any of the islands remain British seems to have been more a matter of luck than good management. New Caledonia, Tahiti, Samoa, New Britain, and others were lost by deliberate rejection; and Fiji and the Solomons and most of the other islands where our flag flies went a-begging so long that every marvels now that we did not find ourselves anticipated.

New Guinea belongs partly to Holland, partly to Germany, and partly, on the south-east, to Britain. The Dutch Government officially proclaimed possession over the western portion as far back as 1828. Practically nothing has yet been done to develop it, and it remains in the same primitive state as when acquired. The remainder of the island remained untouched, except for various exploring expeditions, until 1883, when the Queensland Government annexed the vacant territory, only to have their action promptly repudiated by the late Lord Derby, who scoffed at the suggestion that Germany contemplated the acquirement of uhe country. A united and vigorous protest from the Australian colonies, however, finally induced a change of policy, but not until after Germany had annexed the northern portion of the then unallotted territorv—and in due course also the islands now known as the Bismarck Archipelago—and Great Britain assumed control of the remainder under a guarantee from the Australian States to provide an amount sufficient to cover the cost of the administration. The British portion—Papua, as it has been officially designated—is now a dependency of the Commonwealth. Germany has a naval base at Simpsomhapen, almost within cannon shot of Australia—thanks to Lord Derby.

The Solomon Islands, the next link in chain, are under British control, with exception of Buka and Bougainville, [unclear: who] belong to Germany. Santa Cruz [unclear: Island] are a British protectorate. The New brides are, of course, a joint [unclear: protect] of British and French. The Fiji [unclear: Island] are ours, but the British pioneers there not secure annexation without a [unclear: trenail] ous effort, and America, which [unclear: sent] a warship to obtain compensation [unclear: from] Cakobau for an alleged outrage against of Uncle Sam's subjects, might easily [unclear: been] forestalled us.

The Samoan Islands belong to [unclear: German] and the United States, by virtue of [unclear: the] treaty concluded in 1900, Mr. Seddon the speech quoted in the last [unclear: art] glanced at the history of the [unclear: tranadaa] Those who recall Stevenson's [unclear: brilliil] "Footnote to History" will remember vacillation, ignorance, and blundering [unclear: which] resulted in the loss of Samoa.

The Gilbert, Ellice, Phoenix, and [unclear: To] lau groups belong to Britain, and [unclear: over] Tonga a protectorate lias been established Our flag also flies in Norfolk, Lard [unclear: Hord] Pitcaim, and other scattered islands.

Germany, besides the large slice of [unclear: New] Guinea and the valuable islands of [unclear: the] Bismarck Archipelago, has in the [unclear: Nurth] Pacific the Marshall, Caroline, [unclear: Below] Ladrone Islands, with the exception Guam, which belongs to the United [unclear: Stall] while France's possessions in the [unclear: Westal] Pacific include New Caledonia, as full precious metals as a cake is full of rants, and the Loyalty Islands, both [unclear: di] covered and named by Captain Cook, [unclear: and] made habitable by our missionaries. [unclear: The] Wallis Islands, to the north of [unclear: Tonal] and the Futmia, or Hoorne Islands. [unclear: lyin] some 300 miles to the north-east of [unclear: Fill] also now fly the tricolour. In the [unclear: East] ern racific France has four great [unclear: group] of islands—the Society (which include [unclear: Ta] hiti), the Marquesas, the Panmotu, and the Tubnai, or Austral.

Over the line, in the North Pacific, [unclear: lied] Hawaii, a dependency of America which has taken possession of a [unclear: number] of isolated dots of coral atolls, and [unclear: lay] claim, so I see by an American handbook! to Manihiki and one of two other island! that new Zealand has annexed!

Shutting out the Britisher.

When Germany secured the Marshal Islands in 1884 the trade was in the hands of New Zealand and American firms; but they have long since been squeezed out. The position of Germany in Samoa was steadily improved, mainly through the instrumentality of the large trading firm of Goddefroy and Sohn, which worked under Government control and had especial instructions to discour- page 9 [unclear: British] trade. This policy was very [unclear: useful] in Samoa, and was continued in [unclear: shall] Islands when one of Messrs. [unclear: philp], and Co.'s steamers was aub-[unclear: to] prohibitive charges in the shape [unclear: spelling] the firm to discontinue their [unclear: with] the group. Happily for Brit-[unclear: tiege] the strong protest forwarded [unclear: British] Government on that occa-caused the abandonment of the obrestructions; but there is no that other harassing methods adopted by Germany in the Recent cable advices have with a view to fostering [unclear: Gertrade] and to bar the door against from Australasia and elsewhere, [unclear: valorem] duty of 10 per cent, is to all imports into the German [unclear: sions] of New Guinea, the Bismarck and the Caroline Islands.

The open door policy is maintained in [unclear: British]-owned islands, but if Germany [unclear: going] to play the game fairly, she complain if, in our islands, hea-[unclear: nosts] are put upon her goods than that come from Britain and This, by the way, is one of thing that might very well be [unclear: dissed] by the Island Congress suggested in last article.

The opening of the Panama Canal, by diverting traffic which at present comes by the Suez route, makes the possession of ports within striking distance of Australia and New Zealand of immense importance strategically, to say nothing of their commercial value as ports of call, and the wisdom of the policy of France and Germany and the foolishness of our own must surely now be admitted by everybody.

Wake Up, New Zealand !

We have shown the necessity for keeping our end up in the island trade. The Australian merchants are doing their share and have worked up a most profitable connection, which is increasing every year. New Zealand's interest in the islands badly needs vitalising, and it is her merchants who need to wake up.