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[Letterhead:] DEPARTMENT OF EXTERNAL AFFAIRS

[Stamped in purple ink ‘DEPARTMENT OF EXTERNAL AFFAIRS’. The reference number ‘07/1520’ is handwritten inside the stamp in red ink.]

[Handwritten annotation in red ink:] P.P. 06/9243

[Heading:] MEMORANDUM for The Prime Minister.

SUBJECT:- Pearling Industry in Western Australia

[dividing line]

On the 30th November, 1905, the Senate passed the following resolution -

“That in the opinion of the Senate the time has arrived when in order to effectively carry out the policy of a white Australia, legislation should be introduced to provide for - (a) the cessation of the importation of coloured labour under regulations to carry on the pearl fishing industry in North Australia [begin underlined phrase] except for the purpose of replacing existing crews but so as not to increase the number of coloured aliens now employed: [end underline](b) The assisting of the industry by bonus or otherwise to enable the replacement of the coloured labour by white labour.

The words underlined were not in the original resolution but were added as an amendment.

The Government did not oppose that resolution, but no legislation has yet been introduced.

[Begin handwritten underline] In North West Australia [end underline] the coloured labourers employed in the pearling vessels are of two classes known as “indented” and “local men”. The former are bound to leave the Commonwealth at the expiry of their existing or any extended engagements, the latter having come into Australia before any restrictive legislation was passed are under no such obligation.

The respective numbers on the 31st December, 1906, were 1978 and 399.

[Handwritten annotation next to the underlined phrase ‘In North West Australia’:] Chasing up. 14.3.7

[Footer:] MINUTES TO BE WRITTEN ON THIS SIDE ONLY

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[Stamped in purple ink ‘EXTERNAL AFFAIRS’ with reference number ‘07/1520’ handwritten in red ink inside the stamp.]

It was decided by the Prime Minister that effect should be given as far as was possible by departmental action to the purpose of the resolution, and instructions were issued that permits to import men should only be issued to replace men leaving the Commonwealth. This practice has been found to work hardship. It places the employers of local labourers under a disadvantage as compared with the employers of indented labourers. On the return of indented labourers to Singapore, permits are at once issued to enable the employers to import other men in their place, but hitherto, since the instructions mentioned, no permits have been issued to enable the employers to make good the deficiencies in their crews caused by the unwillingness of local labourers to re-engage.

It is pointed out that the latter class of men, all of whom arrived in Australia more than 10 years ago, are showing a disinclination to continue working in the pearling vessels. The toil is arduous and the period of a man’s life during which he can suitably perform the work is limited to a comparatively few years.

As the men grow older they prefer shore life and being free to go anywhere in the Commonwealth they frequently come South to get employment in Perth and Fremantle.

Moreover, it is said that the practice followed since the resolution has instilled a degree of independence in the minds of local labourers which has induced them to place a disproportionate value on their services. They appear to feel that they are masters of the situation, and employers are embarrassed accordingly.

It is contended that the wording of the resolution does not involve the limited interpretation which has been

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[Stamped in purple ink ‘EXTERNAL AFFAIRS’ with reference number ‘07/1520’ handwritten in red ink inside the stamp.]

placed upon it. It is urged that the resolution was specially amended so as to allow existing crews to be replaced and that no distinction was then made as to whether those crews were imported or local men. This view appears to have weight, and [emphasised with vertical line in margin] it is recommended that permits be granted to replace coloured alien crews who are being discharged from their articles irrespective of whether those crews leave Australia or remain. [End emphasis line.]

It may be pointed out that all persons indented are returned. The employers are under substantial liability to see that none of their imported men remain in Australia and the experience of the Department has been that the employers’ obligation in this respect are faithfully performed.

Another aspect of the matter arises with regard to boats that were temporarily out of commission at the date of the resolution, but which have since been repaired and placed in working order.[Emphasised with vertical line in margin] It is submitted that no breach of the spirit of the resolution would be involved in the issue to the owners of such vessels of permits entitling them to indent the necessary crews. [End emphasis line.]

The effect of the present departmental practice founded on the resolution is to confine the industry to those owners who were engaged in it on the 30th November 1905. Hitherto that has not been serious as the price of shell has been too low to tempt the investment of further capital but should prices run again as high as in 1902 – 3, dissatisfaction may arise.

[Handwritten signature] Atlee Hunt

9th. February. 1907. SECRETARY.

[Handwritten addition at the bottom of the page:] Approved – As for the last aspect of course only in respect to replace those temporarily out of commission. AH Feb 11 7