BOTH NATIVE CUSTOM AND ENGLISH COMMON LAW FORM NEW GUINEA'S UNDERLYING (OR UNWRITTEN) LAW. THIS PAPER RECOMMENDS THAT CUSTOM REPLACE THE ENGLISH COMMON LAW AS UNDERLYING LAW, AS CUSTOM BETTER REFLECTS THE NEEDS OF PEOPLE IN NEW GUINEA AND PROMOTES THE COUNTRY'S INDEPENDENCE. THE UNDERLYING LAW BILL STATES THAT CUSTOM SHOULD BE ADOPTED UNLESS IT IS INCONSISTENT WITH A WRITTEN LAW OR CONTRARY TO CERTAIN PARTS OF THE NEW GUINEA CONSTITUTION. COURTS MAY REFER TO ENGLISH COMMON LAW IF IT IS APPROPRIATE OR IF CUSTOMARY LAW IS INAPPLICABLE. NEW RULES OF UNDERLYING LAW MAY BE DEVELOPED BY REFERRING TO THE CONSTITUTION AND RELEVANT WRITTEN LAW. COURTS CAN FIND CUSTOMARY LAW IN THE COUNTRY'S VARIOUS TRADITIONS AND CULTURES, SHOULD DEVELOP UNDERLYING LAW ACCORDING TO THE COUNTRY'S NEEDS, AND SHOULD REFER TO CUSTOMARY LAW WHEN INTERPRETING WRITTEN LAW. UNDERLYING LAW WILL INCLUDE APPEALS, AND DECISIONS OF HIGHER COURTS WILL BIND LOWER COURTS. FINALLY, CUSTOMARY LAW MAY TAKE PRECEDENCE OVER WRITTEN LAW IN EXCEPTIONAL CIRCUMSTANCES. REPEALS OF PERTINENT PARTS OF THE CONSTITUTION ARE RECOMMENDED. IN CRIMINAL JUSTICE, COURTS SHOULD REFER TO CUSTOMARY LAW WHEN DETERMINING PUNISHMENT, ORDER COMMUNITY WORK IN LIEU OF FINES OR IMPRISONMENT, AND ORDER COMPENSATION FOR INJURY OR DAMAGE. A PROPOSED CRIMINAL CODE IS INCLUDED, AND ALL PROPOSED LEGISLATION REQUIRES AMENDMENTS TO THE NATIVE CUSTOMS RECOGNITION ACT, AN ACT GOVERNING CIVIL CASES. FOOTNOTES AND A LIST OF CONTRIBUTORS TO THE PROPOSED LAWS ARE INCLUDED. --IN ENGLISH AND NEW GUINEAN LANGUAGES. (PAP)