M. Rappard also commented on navigation subsidies amounting to '¥.689,000 which, he said, called for comment in the case of such oer territory where it was not compre sensible that they should be so large. More than ten per cent. of the dud-tet_was expended on shipping subsidies. It was stited that these subsides. were necessary on account of Mr. Ito replied that the harbour works were necessary because la ger ships could not use the existing Marquis Theodell, President of the Commission, said he had alway: understood that Jaganese navigators were excellent and he had never heard that smaller vessels were less seaworthy than cigger ones. Facts such a these tended to Keep alive all doubts. in regard to the objects of the heavy expenditure incurred.
Marquis Theodoli added he was sure that Japan, having accepted, mandatory obligations, would offer explanations allaying the anxiety of the Commission.
Lord Lugard (Great Britain) asked whether the islands' favourable' balance of trade meant an annns) revenue of ¥.7,000,000 for Japan.
Mr. Io replied in the affirmative, Count Penha Garcia (Portugal) said it was to the honour of a. mandatory power that the economic life of a territory was well balanced.
In conclusion, the report states that the Commission trusts that appropriate measures will be taken 'o Benefit the natives.
Tu accordance with the Treaty of) Versailles, Japan was appointed mandatory to "all former German Dossessions in the Pacific, north of the, Equator, with the exception of the! island of Guam. These comprise the Caroline, Pelew, Marianne and Marshal islands, The last-named group! Includes the islands of Saipan Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.