In regard to the letter of 21st October [1]' from the Consul-
General of Germany on the Mandated Territory of New Guinea, I feel
that there are several recent features in connection with the
German agitation for the return of colonies to which the attention
of the Prime Minister should be drawn.

As you know there has been of recent months an intensification of
this campaign. There is at present in Australia the chief
propaganda agent and close personal friend of Dr Goebbels,
Minister for Propaganda in Germany, namely Mr Schwartz von Berk.

Von Berk is late Editor-in-Chief of'Der Angriff', Dr Goebbels' own
newspaper, and he is at present making a tour of the British
Colonies and Mandates with a view to looking into the system and
methods of administration and to sound public feeling on the
question of the return of the Mandates to Germany.. He makes no
secret of this. He and the Consul-General of Germany visited
Canberra last week, and they openly approached Ministers and
officials as to their views.

Two years ago, Dr Asmis definitely informed me that Germany would
make no demand for New Guinea, but last week he informed me in a
personal conversation that they were determined to get all of them
including New Guinea, and let slip the fact that on his visit to
Germany a year ago he had instructions to put this point of view.

Further, I am under the impression that he has reported
erroneously to his Government as to the attitude of mind of the
Australian people to this question. For example, he is absolutely
convinced in his own mind that, in the cause of general
appeasement and to prevent a war, Australia, having no real
interest in New Guinea, would willingly surrender it. I ventured
the opinion to him that such an interpretation did not reflect
public opinion. I feel that if he reports, as he undoubtedly does,
his own personal views of public opinion an this question, we may
in the near future be faced with a very definite demand for the
return of German New Guinea. In view of this I feel that an
unequivocal and firm reply should be made to his letter, so that
he can be in no possible doubt as to the view of the Commonwealth
Government on this question.

I might also add that the Commonwealth Government very early made
a definite statement, namely, that of Sir George Pearce [2] in the
Senate on 13th March, 1936, when this question was first mooted.

This statement did an immense amount of good, because it was the
first definite statement to be made by any member of the British
Commonwealth, and from that time Germany only spoke of the return
of African colonial territory. Thus, I feel it most essential that
the German Government should not be allowed to think that the
Commonwealth Government is in any way prepared to change its
attitude, or even to indicate that it might be prepared to
negotiate on the question.

W. R. HODGSON