In the 1920s prospective gold
miners used Salamaua as a staging post to explore for
gold in the inland areas. Gold was discovered at
Wau and miners came from all over and made for the goldfields via the rough
Black Cat Track. In 1937, following the eruption of the
Rabaul caldera which caused widespread damage to
Rabaul, the Australian federal cabinet decided to move the capital of the
Territory of New Guinea to Salamaua. This decision was later reversed and
Lae was selected as the new capital. The town was
captured by the
Japanese on 8 March 1942 during World War II and later retaken by
Australian and
United States forces led by General
Douglas MacArthur on 11 September 1943 during the
Salamaua–Lae campaign. During reoccupation the town was destroyed. Today the villages of Kela and Lagui occupy the site, as well as holiday houses that are mainly owned by
expatriates based in Lae. ==References==