Was part of Papua New Guinea was once known as German Guinea?

The answer is New Britain.

New Britain is the largest island of the Bismarck Archipelago, located to the northeast of the island of New Guinea. The Bismarck Archipelago is part of Papua New Guinea. Before World War I, New Britain was part of German New Guinea, a colony of the German Empire. After the war, the island was transferred to the control of Australia, which administered it as part of the Territory of New Guinea. In 1975, New Britain became part of the independent state of Papua New Guinea.

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