A flourishing inter-coastal and island trade had long been established by the United States of America, but until 1898, when they annexed Hawaii and occupied Samoa, the United States adhered to their doctrine of not attempting territorial acquisition outside their own continental borders.

By 1883 the Germans had firmly established themselves commercially, and their influence began to be most markedly denoted in disaffection amongst the natives and in inter-tribal wars—notably in Samoa.

In this year the British New Guinea Colonising Society proposed an expedition to Lord Carnarvon, who was then Colonial Secretary, but the minister declined to lend his support to an enterprise which he considered entailed too much risk.

The enterprise was imagined in collaboration with supporters of Imperial extension in Australasia, and, acting on their own initiative, the Government of Queensland, with the approval of the whole of Australia, annexed a portion of New Guinea to her dominions; but this act was disavowed by the British Government and declared to be "null in point of law and not to be admitted in point of policy."

Queensland most determinedly represented to the Government of Australia and our Imperial minister the danger to her commerce if New Guinea were to fall into the hands of a foreign Power by annexation.

The prospect did not appear alarming to the home statesmen, nor did further annexation of the South Sea Islands enter into their scheme of practical politics; and, therefore, when the proclamation of a Protectorate over the whole of New Guinea and the adjacent islands (including the New Britain Archipelago, the Solomon, Caroline, Palau, Marshall, and Ladrone Islands) under a High Commissioner was determined on at a conference held by the Australian Colonies at Sydney in 1883 and recommended to the Imperial Government, our Colonial Office met the proposal with discouragement.

In November, 1884, however, the Home Government was persuaded to proclaim in New Guinea a Protectorate over the region lying "between the 141st meridian eastward as far as East Cape, with the adjacent islands as far as Kosman Island."

This brought under the British flag the southern portion of New Guinea, known as Papua, only; but in other parts of the islands there were British settlements originating in Australia which were left under no effective jurisdiction.

In December, 1884, the Germans, having firmly established themselves commercially in the Samoan Islands, began to definitely and formally annex territory; the German flag was hoisted in the northern part of New Guinea and on several of the adjacent islands, and the German "Colony" received the unpromising name of "Kaiser Wilhelm's Land."

The Australian Colonies immediately lodged an indignant protest; but arrogance, overglossed with suavity, carried the day, and a friendly agreement in regard to New Guinea was made between Great Britain and Germany in 1885, whereby the latter assumed administration over the northern portion of the island, to subjection of the jurisdiction of which were later added the Caroline, Palau and Marianne Islands.