Tahiti Disturbed

Involved Affairs of Chinese Company

TAHITI’S “affair Stavisky,’’ which, following the liquidation of the Kong Ah Company, resulted in an official in quiry into its ramifications, is believed to be responsible for the departure of the Governor, His Excellency Lucien Mon tagne, from Papeete, by the “Cephee” on May 10. A large gathering, including chiefs from Tahiti and Moorea, assembled to say farewell to the Governor.

The situation will be personally ex plained in Paris by the Governor, who, at the same time, will approach the French Government for a loan of 20,000,000 francs for the purpose of carrying out certain urgent public works in French Oceania, M. Henri Sautot, Chief Administrator of Colonies (and recently Resident Com missioner for France in the New Heb rides), is charged with the administration of the colony in the absence of M. Mon tagne.

The failure of the Chinese company for an approximate sum of 12,000,000 francs resulted in a special inquiry in Papeete by an investigator from France. As a result, it is believed, a certain course of action was decided upon. Police Commis

sioner Demay, who is understood to sup port the policy of the Governor, also left for Paris by the same liner.

The Kong Ah Company, which was of mushroom growth, owned its own schoon ers and plantations, and carried on a con siderable import business. Its activities extended to many islands in French Oceania.

This is the second financial collapse of a similar character relating to a Chinese controlled company within recent years in Tahiti. The failure of a Chinese bank in Papeete about three years ago involved considerable loss for local residents.

The Kong Ah trouble has now taken on a political character, and, in consequence feeling is high in Tahiti. There has been constant communication between Papeete and Paris in recent months. Interest was further stimulated by a visit from M. Sim monet, one of the most highly paid jour nalists in Paris, and a well-known writer of detective fiction.

The next development was the firing of a shot by some unknown person at a motor car driven by M. Rougier (nephew of the late Abbe Rougier), a Papeete citi zen who took a prominent part in pressing for the inquiry, and who was believed to be associated with M. Simmonet during his stay in Tahiti. M. Rougier was un injured.

Another resident collapsed on being in terrogated at the inquiry, and is now in hospital.

A French newspaper, published in San Francisco, which commented upon the scandal and its ramifications, is now un derstood to be prohibited in the colony.

Papeete has no local press—apart from the “Journal Officiel.”