if it exists, could only be examined by the aid of deep sea diving equipment not available 

 to us. The apprcacimate location of each canpciny's cultured pearl operations is indicated 

 on chart Palau 3, Page 36. 



Ihere is one native on Arakabesan Island who states that he learned from the Japanese 

 the process of inserting pearl blanks into the oysters for pearl formation (fig. 32). In 

 partnership with another native he has already put out approximately 150 baskets of black 

 lip oysters, each basket holding ten oysters (Fig. 33). None of the blanks had been 

 inserted in oysters at the time of our visit. The progress of this enterprise is worthy 

 of attention. No financial assistance will be required, as there are plenty of baskets 

 left over from the Japanese operations and the natives will be able to obtain the necess- 

 ary n\imber of black lip oysters locally and mostly by their own efforts. 



The process in principle is a simple one. The black lip pearl oyster, from four to 

 six inches in diameter, is opened mechanically and a blank bead made of pearl shell is in- 

 serted in the mantle through a very small incision made with a small scalpel. The incision 

 is then closed and the oyster is put in one of the baskets and left for three years, at the 

 end of which time the blank bead is thoroughly covered with the nacre which gives the pearl 

 its lustrous appearance. It has been the general impression that a very small particl© 

 was inserted, around which the oyster built the pearl. Ttiis is far from being the case. 

 Actually, the blank beads are all approximately the final size of the pearl. They are 

 graduated in size so that if 50 pearls are needed for a necklace, the appropriate sizes 

 can be obtained from 50 different oysters. The actual thickness of the layer of nacre 

 laid down by the oyster is quite thin. It was impossible to get ciny definite information 

 as to Trtiether or not the Japanese put more than one blank bead in each oyster. The natives 

 intended to put only one blank in each oyster. Their plantings are in from two to five 

 fathoms of water. One problem which will face this budding industry is that of obtaining 

 additional pearl blanks when their present stock is exhausted. There were thousands of 

 these blanks at Koror, but most of them have been damaged by fire. The blanks appear to 

 have been made Either from the large white pearl oyster shell, or from giant clam shells. 

 Information is to the effect that glass beads cannot be used, as the nacre does not stick 

 tight enough to the glass. Some of the instruments used for the operation of inserting 

 blanks into the pearl oyster are shown in Pig. 32. 



If the present native experiments are successful, there is ample space for expansion 

 to produce thousands of pearls annually. 



There is a sufficient supply of large trees in the Palaus to provide for the necessary 

 number of new outrigger canoes, both sailing and paddling. There has not been very much 

 boat building up to the present time because large numbers of the natives were left homeless 

 and their first consideration has been to build a house for themselves and their families. 

 It will certainly be another 12 months, possibly longer, before boat building can be under- 

 taken on a large scale. In the meantime inter-island transportation of passengers and 

 freight is con^letely dependent on the few Japanese motor boats of 30 to AO feet and power- 

 ed by single cylinder, semi-diesel engine with the blow torch starting. Most of these 

 vessels are in veiy bad repair, both as to hull and engines. Unless some means can be 

 found to repair or replace some of the hulls and to service the engines, there will be a 

 canplete breakdown of the local transportation system within 12 months. Another factor 

 to be considered is that these semi-diesel engines have been operated on a lower grade of 

 fuel oil from Japanese military stocks and will not operate on regular United States Navy 

 fuel oil of 50 cetane. Most of the stocks of Japanese diesel oil are nearly exhausted 

 and unless the engines can be modified to burn standard United States Navy fuel, these 

 vessels will have to be tied up. Navy vessels cannot be used to replace the Japanese 

 type for inter-island traffic unless operations are taken out of native hands and financed 

 and operated by the Navy. Naval vessels are unsuitable in design for this type of service 

 and their cost of maintenance, operation, and repairs are beyond the means of the natives. 

 The best solution of the problem appears to be to modify the fuel system of the Japanese 

 semi-diesels so that they will use U. S. Navy fuel. 



A6 



