Capital Site for New

Guinea Choice Believed To Be Between Two Plateaus On Mainland

SINCE his return from New Guinea, the Australian Minister (Mr.

Hughes) has given no indication of the locality he favours as the future capital of the Territory.

The matter will probably come before the Federal Cabinet on Tuesday, June 21, and an announcement then may be made.

All unofficial information suggests that the new site will be on the mainland, at a point that will assist in opening up the rich plateaus of the interior, and that the establishment of the capital there will form part of a vigorous policy

of road-building, calculated to connect both the Morobe goldfield and the agri cultural plateaus with suitable coastal ports.

Plans for financing the goldfields road have been under consideration. The Morobe interests resent the idea that they should be specially taxed. They point out that the Administration al ready takes from them at least £75,000 per annum in gold royalties, plus a huge sum in Customs duties, and this should be ample to finance a £250,000 road.

It is reported that a highway up the Markham Valley to the Ramu with a spur-road up the Wampit, into the Bulolo Valley, is contemplated; and that the final choice of a capital site will lie be tween (a) a plateau overlooking the Markham Valley, with access to Lae, Wau, and Salamaua, and (b) a plateau, about 1,100 feet high, overlooking the Ramu Rfver, with access to Madang, on the one side, and the Ramu-Benna Benna-Markham districts, on the other.