Canberra: The Australian navy began a search for the nation's first submarine yesterday in a bid to end the mystery over what happened to the vessel which disappeared in the Pacific in the first months of the First World War.

The submarine, the AE1, vanished in September 1914 with the loss of all 35 crew while patrolling near Rabaul on the island of New Britain, now part of Papua New Guinea.

It was the first major loss of Australian life in the First World War, and followed Australia's first military action of the conflict when troops had captured a German radio base at Rabaul.

"I am hopeful that this search will shed some light on to the whereabouts of the AE1 and provide some answers to the relatives of those brave crew members," assistant defence minister Bruce Billson said in a statement.

The loss of the AE1 has been one of Australia's enduring mysteries. A brief search in 1914 found no trace of the vessel, while reconstructions of German fleet movements indicate it was unlikely the submarine was attacked.

Collision

Billson said investigations suggested the submarine could have sunk after running aground or colliding with a submerged object near the Duke of York Islands.

The AE1 and its sister ship, the AE2, were purchased from Britain and arrived in Australia in May 1914. Both were commanded by British officers with a mix of British and Australian crew.