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propaganda was very great up to two years ago but since then has abated to some extent.

12. All of the larger islands are being systematically developed except New Guinea. This forms an especial problem due to its wild state and the condition of the Papuan savages that inhabit it. It will be the last place to be opened up unless some rich mineral deposit or especial agricultural product is discovered there.

13. Due to the extinction of German power in the Pacific, the impotence and aloofness of the French, and the rivalry of the English, the Dutch are leaning toward us. They want our regard as a moral support, at least; they want us to keep the Philippines as a barrier against the Japanese and as a means of keeping their own people in political subjection; and they want our tourist travel and certain of our trade as a financial proposition. There is at present little clashing of American and Dutch interests in the Far East. Their coldness and aloofness have melted a great deal in recent years. We enjoyed our intercourse with the governor. He is soon to visit the Philippine Islands as the guest of our Governor General. The intercourse between the two dependencies is an

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