COOK AND OTHER ISLANDS. [In continuation of Parliamentary Paper A.-3, 1903.]

Appendix to the Journals of the House of Representatives, 1904 Session I, A-03

A.—3.

1904. NEW ZEALAND.

COOK AND OTHER ISLANDS. [In continuation of Parliamentary Paper A.-3, 1903.]

Presented to both Houses of the General Assembly by Command of His Excellency.

INDEX.

i—A. 8.

No. of Series. From Date. Subject. Page. 1 Resident Commissioner, Rarotonga Ditto 14 Mar., 1903 Subsidy from Niue towards " Countess of Ranfurly " .. 1 2 3 4 6 6 7 8 9 10 II 1-2 l:S 30 Mar., „ 31 Mar., „ 31 Mar., „ 2 April, , 2 April, „ 2 April, „ 4 April, „ 4 April, ., 23 April, „ 30 April, „ 5 May, „ 6 May, „ Bicycle Ordinance of Aitutaki, 1903 Pearl shell lagoons, Penrhyn and Manihiki .. European officer required at Mangaia Moorings for Barotunga and Aitutaki ! Boat-passages, Mangaia and Atiu ! Normal school for the Islands Protection of fruit for Cook Islands Island of Takutea Petition re protection of fruit Petition against importation of liquor into Niue ! Andito' for Rarotonga Adoption of section 50of "The Native Land Claims Adjustment and Laws Amendment Act, 1901 " Duty on tobacco Revenue and expenditure of Niue for fifteen monthe ending 31st March, 1903 Complaint re Resident Agent, Atiu, and re general question of Resident Agents Moorings for Alofi, Niue Vessels recruiting labour Emigration fees, Niue Be "Traders' License Aot, 1898" .. Planting Aitutaki Lagoon with pearl shell .. 1 2 3 8 3 4 4 4 5 6 6 14 15 20 May, „ 26 May, „ 6 6 16 28 May, . 7 17 18 19 20 21 Resident Agent, Niue .. 1 June, „ 2 June, „ 5 June, „ 8 June, „ 10 June, „ 8 8 8 9 10 Resident Commissioner, Rarotonga Minister in charge 22 28 24 •25 12 June, „ 13 June, „ 13 June, „ 25 June, „ Surveys at Niue Boat-passages through the reefs Ordinances to stand over for consideration Island of Takutea : Governor has written Makea 10 10 10 10 ■20 27 2h 29 BO Resident Commissioner, Rarotonga Rfsident Agent, Niue .. Minister in charge 2 July, „ 11 July, „ 11 July, „ 11 July, „ 11 July, , Duty on goods shipped to Niue Acknowledging receipt of No. 4 Acknowledging receipt of No. 5 Acknowledging receipt of No. 15 Approving appointment of Mr. Cameron as Resident Agent, Aitutaki Receipts and expenditure of Niue for quarter ending 30th June, 1903 Moorings for Alofi, Niue Re " Traders' License Act, 1898 " .. Vessels recruiting labour I Island of Takutea Appointments of Mr. J. T. Large and Mr. J. C. Cameron as Resident Agents Planting Aitutaki Lagoon with pearl shell Eoad construction, Niue Importation of liquor into Niue Importation of liquor into Niue Rarotonga Island Ordinance No. 3 (Fencing) 10 11 11 11 11 * • I 31 Resident Agent, Niue .. 13 July, „ 11 82 88 :si 35 86 Minister in charge " 14 July, „ 14 July, , 14 July, „ 14 July, „ 15 July, „ 12 12 12 ia 12: • • I 37 88 89 40 41 Resident Agent, Niue .. Minister in charge Resident Commissioner, Rarotonga Ditto 18 July, „ 24 July, „ 30 July, . 30 July, , — Aug., „ 13 L8 |:{ 18 14 42 — Aug., „ Federal Ordinances Nos. 11 and 12 (TradiDg-schooner Ordinance and School-attendance Ordinance) Sale of liquor, Rarotonga .. .. • • .. • .. 16 48 it '' * * •10 Aug., . L6

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IND EX— continued.

II

No. of ieries. From Date. Subject. Page. 44 45 46 47 48 49 50 •51 C. A. Griffiths and Co... Minister in charge S. Percy "Smith Minister in charge 10 Aug., 1903 11 Aug., „ 11 Aug., „ 17 Aug., „ 21 Aug., „ 26 Aug., „ 26 Aug., „ 28 Aug., „ Transhipment of Cook Islands fruit at Auckland Acknowledging receipt ( f No 44 Making Wellington port of call for Cook Island fruit.. Education of Niue boy in Auckland Education of Niue boy in Auckland Auditor for Cook Islands and Niue Emigration fees, Niup Adoption of section 50 of " The Native Land Claims Adjustment and Laws Amendment Act, 1901 " Auditor for Conk Islands, &c. Auditor for Cook Islands, &c. Protiosed Niue Government Bill Emigration fees, Niue Acknowledging receipt of No. 36 17 17 17 18 18 L8 19 19 52 53 54 55 56 * .. 31 Aug., „ 31 Aug., . 1 Sept., „ 1 Sept., „ lSept., . 19 I!) l<) 19 20 it .. Resident Commissioner, Rarotonga Minister in charge 57 1 Sept., „ Rarotonga Island Ordinance No. 3 (Fencing) assented to Making Wellington port of call for Cook Island fruit .. ■20 58 Manager, Union Steam Ship Company, Wellington Minister of Lands Manager, Union Steam Ship Company, Wellington Minister in charge H. D. M. Haszard Minister in charge it 1 Sept., „ 20 59 60 7 Sept., „ 8 Sept., „ Mr. H. D. M. Haszard, surveyor Moorings, Mangaia and Niue 20 21 61 62 •63 64 €5 8 Sept.. „ 8 Sept., „ 8 Sept., „ 8 Sept., „ 9 Sept., „ Surveys on Niue Surveys on Niue Surveys on Niue Acknowledging receipt of No. 31 Repayment of £6,000 by annual instalments (" Countess of Ranfurly ") 21 21 21 21 22 £6 67 68 «9 Commissioner, Government Life Insurance Department Captain Worsley Minister in charge 10 Sept., „ 12 Sei.t., „ 19 Sept., „ 21 Sept., „ 22 22 22 22 Moorings for Alofi, Niue Duty on goods shipped to Niue Duty on goods shipped to Niue Acknowledging receipt of Ordinances assented to Resident Commissioner, Rarotonga Minister in charge 70 71 72 Resident Commissioner, Rarotonga Minister in charge Resident Commissioner, Rarotonga Ditto 21 Sept., „ 21 Sept., „ 21 Sept., „ " Countess of Ranfurly " : Payment of cost by Islands " Countess of Ranfurly " : Pavment of cost by Islands "Countess of Ranfurly": Subsidy from Niue 23 23 23 73 74 21 Sept., , 22 Sept., „ Fortnightly steamer service to Cook Islands Mr. J. C. Cameron, Resident Agent at Aitutaki 23 24 75 76 Chief Judge, Land Titles Court, Rarotonga Minister in charge Resident Commissioner, Rarotonga Minister in charge 22 Sept., „ "Countess of Ranfurly" chartered to Grice, Sumner, and Co. Sittings of Land Titles Court 24 22 Sept., „ 24 77 78 22 Sept., „ 22 Sept., „ Fortnightly steamer service to Cook Islands Land acquired at Aitutaki 24 2-4 79 80 81 Resident Commissioner, Rarotonga Resident Agent, Niue .. Manager, Union Steam Ship Company, Wellington Resident Agent, Niue 29 Sept., „ 29 Sept., „ 6 Oct., , Cook and Other Islands Government Act Amendment Bill Protection of fruit from Cook Islands Niue Island Ordinances, Nos. 1 to 11 26 26 25 82 83 6 Oct., „ 6 Oct., „ Surveys on Niue by Mr. Haszard Fortnightly steamer service to Cook Islands 80 31 84 85 86 -87 88 89 90 Minister in charge 10 Oct., „ 10 Oct., „ 15 Oct., , 16 Oct., „ 16 Oct., „ 16 Oct., „ 19 Oct., „ Revenue and expenditure of Niue for quarter ending 30th September, 1903 " Countess of Ranfurly " : Subsidy from Niue Boat-passage through reef at Tuapa, Niue Acknowledging receipt of No. 75 Importation of liquor into Niue Acknowledging receipt of No. 78 " Countess of Ranfurly" : Payment of cost by Islands 31 32 32 32 32 S3 33 Resident Agent, Niue .. Minister in charge Resident Commissioner, Rarotonga Ditto 91 92 93 94 95 96 97 98 99 100 101 102 103 104 Minister in charge C. Kohn Resident Agent, Niue .. Minister in charge 19 Oct., , 20 Oct., , 20 Oct., „ 23 Oct., „ 26 Oct., „ 28 Oct., „ 30 Oct., „ 30 Oct., „ 30 Oct., „ 81 Oct., „ 31 Oct., „ 81 Oct., „ 2 Nov., , 15 Nov., „ Fortnightly steamer servioe to Islands Collection of Island produoe Bicycle Ordinance of Aitutaki assented to Sale of liquor, Earot >nga Offering site for accommodation-house, Rarotonga Road construction, Niue Surveys on Niue, by Mr. Haszard Moorings for Aitutaki and Rarotonga Moorings for Alofi, Niue Boat-passages, Mangaia and Atiu Care of lepers at Penrhyn " Countess of Ranfurly " : subsidy from Niue Acknowledging receipt of No. 84 Reception of Mr. Large at Mangaia.. 88 88 34 34 34 35 88 36 86 :',(■> 86 86 .",7 37 Resident Commissioner, Rarotonga Ditto 105 106 107 18 Nov., „ 18 Nov., „ 19 Nov., , Sale of liquor, Rarotonga.. Boat-passages,Mangaia and Atiu Moorings for Aitutaki 39 80 10

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INDEX— continued.

III

No. of Series. From Date. Subject. Page. 108 109 110 111 112 113 114 Minister in charge 20 Nov., 1903 20 Nov., „ 20 Nov., „ 21 Nov., , 23 Nov., „ 1 Dec, „ 2 Dec, „ Boat-passages, Mangnia and Atiu Boat-passage at Tuapa, Niue 10 10 10 11 43 44 44 // .. Miringatangi H. Cornwall Minister in oharge Resident Agent, Niue .. Minister in charge Report on audit of accounts, Cook Islands and Niue .. Accommodation-house, Rarotonga Water-supply ior Niue " The Cook and other Islands Government Act Amendment Act, 190I-! " "The Cook and otber IsUnds Government Act Amendment Act, 1903" Power of reservation under Order in Council establishing Land Titles Court Fortnightly steamer service to Islands, and protection of fruit Boat-passages, Mangaia and Atiu AcknowledgingreceiptofNo.llO Mr. Haszard has completed surveys Reception of Mr. Large at Mangaia " Countess of Ranfurly " : Payment of cost by Islands Sale of liquor, Rirotonga .. Residences for Medical Officer, Rarotonga, and Resident Agent, Mangaia Audit of accounts, Cook Islands Revenue and expenditure of Niue for quarter ending 81»t December, 1903 Return of imports into Niue for quarter and year ending 31st December, 1903 Return of exports from Niue for quarter and year ending 31st December, 1903 Power of reservation under Order in Council establishing Land Titles Court School-attendance Ordinance, 1903 : Suggested additions Water-supply, Niue Mr. C. F. Maxwell appointed Resident Commissioner, Niue Niue Ordinances, 1 to 11: How dealt with Residences for Medical Officer, Rarotonga, and Resident Agent, Mangaia Sale of liquor, Rarotonga .. 115 7 Dec, „ 44 116 Resident Commissioner, Rar )tonga Minister in charge 16 Dec, . 44 117 17 Dec, „ 45 118 119 120 J21 122 123 124 Resident Agent, Niue .. Minister in charge 17 Dec, . 18 Dec, „ 19 Dec, , 21 Dec, „ 21 Dec, „ 21 Dec, „ 22 Dec, „ 45 45 45 46 46 ii; 47 d25 126 Resident Commissioner, Rarotonga Minister in charge Resident Agent, Niue .. 22 Dec, „ 18 Jan., 1904 47 47 127 18 Jan., „ 49 .128 18 Jan., „ 51 129 Minister in charge 21 Jan., 52 130 22 Jan., „ 69 131 132 22 Jan., » 23 Jan., „ 52 52 a • • 133 134 23 Jan., „ 25 Jan., „ 52 53 135 Resident Commissioner, Rarotonga Ditto 3 Feb., „ 53 136 137 138 139 3 Feb., „ 4 Feb., „ 4 Feb., „ 5 Feb., „ " Countess of Ranfurly " : As to retaining her services Duty on claret Fortnightly steamer service to Cook Islands Appointment of Mr. C. F. Maxwell as Resident Commissioner, Niue Residence and Court-room, &c, Mangaia School-attendance Ordinance, 1903: Be suggested additions Arikis' Courta Rarotonga Island Ordinance, No. 4 (sale of liquor restriction) Manihiki Local Ordinance, No. 1, forwarded for assent Reduction of duty on tobacco 53 54 54 54 140 .141 w • • • • 5 Feb., „ 5 Feb., „ 55 55 142 143 5 Feb., „ 8 Feb., . 55 56 144 145 Resident Commissioner, Niue Ditto Resident Commissioner, Rarotonea Resident Commissioner, Niue Ditto 25 Feb., „ 25 Feb., „ 57 57 146 147 25 Feb., , 27 Feb., „ Boat-channel through reef at Tuapa, Niue Care of lepers at Penrhyn 58 58 148 149 150 151 152 27 Feb., „ 1 Mar., „ 8 Mar., , 9 Mar., „ 17 Mar., „ "Countess of Ranfurly": Re payment of cost by Islands Moorings for Alofi, Niue Road construction, Niue Re School-attendance Ordinance, 1903 Vaccination of Natives, Niue 58 58 59 60 CO Minister in charge Resident Commissioner, Niue Minister in charge 153 154 155 156 157 158 159 160 Secretary for Education Minister in charge 18 Mar., „ 18 Mar., „ 18 Mar., „ 18 Mar., „ 19 Mar., „ 19 Mar., „ 19 Mar., „ 21 Mar., „ Arikis' Courts Acknowledging receipt of No. 143 House for Resident Agent, Mangaia.. Acknowledging receipt of No. 137 Wharf at Aitutaki.. Pearl-shell lagoons, Penrhyn and Manihiki Education in the Cook and other Islands " Countess of Eanfurly": Be payment of cost bv Islands Duty on Natives' luggage Fortnightly steamer service to Cook Islands Niue Island Ordinances assented to .. Sale of liquor on Niue Resident Agents for Islands 61 61 <;i 61 61 62 62 63 161 162 163 1(14 165 // • ■ R. H. Head ... '.'. Resident Commissioner, Rar.aonga Ditto Resident Commissioner, Niue Minister in charge 22 Mar., „ 22 Mar., „ 22 Mar., „ 29 Mar., „ 30 Mar., „ 03 68 68 64 (il 166 167 30 Mar., „ 2 ApriJ, „ Pearl-shell lagoons, Penrhyn and Manihiki Revenue and expenditure of Niue for quarter ending 31st March, 1904 Manihiki Local Ordinance, No. 1, returned for completion 64 65 .168 8 Apiil, „ 66

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INDEX— continued.

IV

No. of Series. From Date. Subject. Page. 169 Resident Commissioner, Rarotonga Minister in charge Minister of Lands Manager, Union Steam Ship Company Minister in charge Resident Commissioner, Niue Minister in charge 11 April, 1904 .. Report for year ending 31st March, 1904 .. .. 67 170 171 172 11 April, „ 12 April, . 13 April, „ Acknowledging receipt of No. 164 .. .. .. 83 Report by Mr. Haszard on Niue Island survey .. 83 Fortnightly steamer service to Cook Islands .. 87 173 174 15 April, „ 19 April, , Care of lepers at Penrhyn .. .. .. 87 Duty on Natives' luggage .. .. .. ., : 87 175 176 177 // • • Resident Commissioner, Rarotonga Ditto 22 April, „ 27 April, „ 28 April, „ Boat-passage through reef at Tuapa, Niue .. .. j 87 Road construction, Niue .. .. .. .. ! 87 Visit to Mauke, Mitiaro, Atiu, and Manuae ; re surveys i 88 178 179 28 April, „ 28 April, „ Care of lepers at Penrhyn .. .. .. .. 88 " Countess of Banfurly ": Be payment of cost by 88 Islands Acknowledging receipt of No. 126 .. .. 88 Water-supply, Niue .. .. .. .. 89' Probate to wills and administration of estates .. 89 180 181 182 Minister in charge Resident Commissioner, Rarotonga Minister in charge 28 April, „ 29 April, . 30 April, „ 183 184 185 3 May, , 10 May, „ 11 May, „ Lagoons at Penrhyn, Manihiki, and Aitutaki .. 89 Acknowledging receipt of No. 174 .. .. .. 90 , Appointing C. F. Maxwell to be Resident Commissioner 90' at Niue Kefund of duty overpaid, Niue .. .. .. j 90 Reducing duty on claret .. .. .. 90Acknowledging receipt of No. 165 .. .. .. 90 Traders' licenses, Niue .. .. .. 90 Vaccine for Niue .. .. .. .. ..90 Vaccine for Niue .. .. .. .. ..91 Alienation of land, Niue .. .. .. ,.91 " Countess of Runfurly" : Re payment of cost by 91 Islands Re Niue Island Ordinances Nos. 1 to 11 .. .. 91 186 187 188 189 190 191 192 193 11 May, . 13 May, „ 14 May, „ 21 May, „ 21 May, „ 23 May, „ 23 May, „ 23 May, „ Minister of Public Health Minister in charge 194 Resident Commissioner, Niue Minister in charge Resident Commissioner, Rarotonga Ditto 25 May, „ 195 196 26 May, „ 1 June, „ Acknowledging receipt of Nos. 127, 128, and 167 .. 92 Manihiki Ordinance No. 1 forwarded for assent .. ! 92 197 1 June, „ Resignation of Mr. G. Ellis, Resident Agent, Tukao, ! 93 Manihiki Reserving lagoons for pearl-shell fishing .. .. 93 Fortnightly steamer service to Cook Islands .. .. 94 Acknowledging receipt of No. 182 .. .. 94 Remission of duty on drugs for mission .. .. 94 " Countess of Ranfurly": Be payment of cost by 94 Islands Accommodation-house, Rarotonga '.. .. .. 94 Reduction of duty on olaret .. .. 95 Sale of Spirituous Liquor Ordinance approved by 95 Government Acknowledging receipt of No. 169 .. .. .. 95 Boat-passages, Mangaia, and Atiu .. .. .. 95 Boat-passage, Tuapa, Niue .. .. .. 96 Acknowledging receipt of No. 177 .. .. .. 96 Kduoation of Islands children in New Zealand .. 96 Fortnightly steamer service to Cook Islands .. .. 96 198 199 200 201 202 Minister in charge 4 June, „ 4 June, „ 7 June, „ 8 June, „ 9 June, „ 203 204 205 11 June, „ 11 June, „ 11 June, „ '206 207 208 209 210 211 11 June, „ 11 June, „ 11 June, „ 11 June, „ 11 June, , 13 June, „ Managing Director, Union Steam Ship Company Minister in charge 212 17 June, „ Fortnightly steamer service to Cook Islands .. .. 97

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1904. NEW ZEALAND

COOK AND OTHBE ISLANDS. [In continuation of Parliamentary Paper A.-3, 1903.]

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. Memo, for the Resident Commissioner. Rarotonga, 14th March, 1903. With reference to the subsidy of £1,000 per annum voted by the Cook Islands Administration in aid of the Government schooner " Countess of Ranfurly," I would point out that no portion of this amount is contributed by the Niue Island Administration, nor does that Administration in any way contribute towards the expense of maintaining the schooner. Since this Department has had the management of the schooner she has visited Niue twice, and is now on another voyage to Auckland via Niue and back, making four visits in nine months. Previously, I think, the vessel visited Niue twice. As some of these visits were purely for Government purposes, and as the object of the vessel's present visits there is to foster trade and to benefit the traders and the Niue community generally, I would suggest that steps should be taken to obtain from the Niue Administration a small annual subsidy, so that the subsidy borne by the Cook Islands Administration could be reduced. E. Blame, Secretary, Government Schooner Department. For the consideration of the Government of New Zealand. —W. E. Gudgeon. Resident Commissioner.

No. 2. Sir,— Rarotonga, 30th March, 1903. I have the honour to submit that on an island like Aitutaki, where there are no wheeled vehicles, and no roads other than old Native tracks, an Ordinance like the attached is not only unnecessary, but oppressive. I have, &c, W. E. Gudgeon, The Hon. the Minister for the Islands. Resident Commissioner.

Enclosure. Aitutaki Island Council. An Ordinance to license and regulate the Use of Bicycles on the Island of Aitutaki. Whereas the use of bicycles on the narrow public thoroughfares of Aitutaki is fraught with considerable inconvenience and risk, several accidents having resulted therefrom to the inhabitants of the island: Be it enacted by the Island Council of Aitutaki: — 1. The Short Title of this Ordinance is " The Bicycle Ordinance of Aitutaki, 1903." 2. Within one month from the notification in the Cook Islands Gazette of the assent of the Governor of New Zealand to this Ordinance, every user of a bicycle on the Island of Aitutaki shall obtain a license for such bicycle from the President of the Island Council, and pay therefor a license fee of two shillings and sixpence (2/6); this also shall apply to every bicycle brought to Aitutaki thereafter, the fee in the latter case to be paid before the bicycle is removed from the year, and shall be renewable during the first week in January in each succeeding year-; all custody of the Customs Officer. The said license shall remain in force till the end of the current license fees not paid within the times specified in this Ordinance may be recovered by suit in the Aitutaki Resident Magistrate's Court, with costs of Court added. I—A. 3.

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3. Every rider of a bicycle shall sound his or her bicycle-bell continuously when approach ing any person. Every bicycle in motion shall also carry a lighted lamp after sundown, When two bicycles approach each other from opposite directions each shall go to its own proper left in order to avoid a collision. When one bicycle overtakes another on the road, the one overtaking shall turn aside if necessary in order to pass the one in front. Any rider of a bicycle who fails to observe the above precautions shall be liable to a fine not exceeding ten shillings, and be further liable for any damage caused by him or her to person or property through carelessness or neglect of the above precautions. The above draft Ordinance was approved unanimously by the Aitutaki Island Council at its sittings on the 11th March, 1903, and passed. Jno. T. Lakgk, President and Secretary. [Assented to by the Governor on the 19th October, 1903.]

No. 3. Rarotonga, 31st March, 1903. Memo, for the Hon. the Minister for the Islands. The Pearl-shell Lagoons of Penrhyn and Manihiki. The area of the Penrhyn lagoon is about ninety square miles, and of this at least twenty-four square miles is more or less covered with shell, but the population of the islands of the reef, who claim the exclusive right to dive for this valuable article of commerce, are few in number. There are certainly not more than a hundred divers on the lagoon, and of these not more that threefourths are of Penrhyn descent. The policy of those who claim to own the shell-beds is to take no more shell than will give them a good living, and I submit that this policy is in direct conflict with the interests of the Government of this group ; firstly, because old shell lying in the beds becomes worm-eaten, and spreads the disease to the younger shell; and, secondly, it should be our aim to encourage all the islanders to dive, since it takes years of practice to make an efficient diver, and that the Penrhyn people are dying out there can be no doubt. To cure these evils and give the inferior people of each lagoon an equal chance, I can see no other method than this, —that the Government of New Zealand shall declare each lagoon and its shell-beds the property of His Majesty, and subject to certain restrictions, and shall hand them over to be managed by the Resident Agent and the Island Council. An additional reason for the taking-over of the Penrhyn lagoon will be found in the petition of H. Owen attached hereto. The Natives have an exaggerated idea of their rights in the matter of turtle. If they confined their claims to the turtle captured on the island that claim would not hi disputed; but they claim all the turtle in the lagoon, in the tidal passages, and in the open sea round the reef. I propose that the lagoons of Penrhyn and Manihiki shall be taken under section 15 of " The Cook and other Islands Government Act, 1901"; that the Resident Agent shall be ex officio custodian of the lagoon, and together with the Island Council shall regulate the close seasons to bo observed over the lagoon or any part thereof ; that the Resident Agent and Council shall decide what diving-machines, if any, shall be used, and on what terms, in order that the interests of the majority may not suffer; that no person shall be allowed to dive for pearl-shell without a license, but that any aboriginal inhabitant of the island shall be entitled to a license free of charge. The aboriginal inhabitants of any island within the boundaries of New Zealand shall be entitled to a diving-license on the payment of an annual fee of 10s. Foreigners may, in the discretion of a Resident Agent, be allowed to dive for shell, on the payment of a license fee of £1 10s. per annum. No alien shall own or work a diving-machine without having , first obtained the permission of the Resident Commissioner W. E. Gudgeon, Resident Commissioner.

Enclosure. Sir, — Omoka, Penrhyn Island, 11th February, 1903. I respectfully ask you to forward the accompanying letter, containing a petition, to His Excellency Lord Ranfurly, K.C.M.G., Governor of New Zealand. I have, <fee, Lieut.-Colonel W. E. Gudgeon, C.M.G., Harry L. Owen Resident Commissioner, Cook and other Islands.

Sub-enclosure. Yotjr Lordship, — I, the undersigned petitioner, resident of Omoka, Penrhyn Island, do humbly request that you will kindly consider the following petition : — That whereas being for some time resident of this island, I have had occasion to have a little trouble with the Natives of this island owing to their arbitrary action re the turtle-fish question. We are debarred from securing turtle in the lagoon for food, as the Natives claim thaf everything in the lagoon belongs to themselves. I, on one occasion, paid a man to go and catch

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a turtle in the lagoon for myself, which he did, and brought it into my yard, and from there it was forcibly removed by the Natives. I remonstrated with them and asked them for their authority to do so. They replied, " The turtles were not for Europeans, but belonged to themselves." This has happened to other Europeans besides myself, and has also taken place since the annexing of this island to New Zealand. They have also seized fish caught outside of the passage — i.e., the ocean, and I humbly petition that you will allow us Europeans the right to go and secure fish in the lagoon for food, as it constitutes the only fresh food we can obtain. 1 fully believe that such action on your part would confer a great benefit on the European residents of Penrhyn Island without injury to the Natives. - I have, &c, To His Excellency Lord Ranfurly, K.C.M.G., ■ Harry L. Owen. Governor of New Zealand and its Dependencies.

No. 4. Rarotonga, 31st March, 1903. Memo, for the Hon. the Minister for the Islands. European Officer required at Mangaia. I have the honour to submit for the consideration of the New Zealand Government that there is urgent necessity for the presence of a European officer at Mangaia. For some time past the state of this island has been most unsatisfactory. The Judges generally consider that they have a right to the fees and fines of their Courts, and object to be governed by the statute law of the Islands, or any other law than their own sweet wills. Miringitangi is the worst offender in this respect, and has probably embezzled not less than £50 in the last twelve months, and is now carrying on the same system with impunity by neglecting to enter the cases heard in his Court-book. The Island Council being without the aid and direction of a Resident Agent is a dangerous farce. It pretends to make laws but does not submit them for approval, but none the less Miringitangi acts on these bogus laws, and keeps the small people in a state of subjection in order that he and his friends may make a percentage out of the sale of the island produce. In order to alter this state of affairs I propose to move Mr. Large from Aitutaki and station him at Mangaia, and abolish all of the Native Judges at the last-named place, and appoint him the President of the Island Council. I would also appoint Mr. Proctor at £100 per annum to replace Mr. Large at Aitutaki, and carry on the good work begun by that very able servant of the Government. This change would probably not cost the Government of the Group more than £50 per annum, for the revenue of the island would increase, and Mr. Large's presence would without doubt cause an immediate increase in the planting of cocoa-palms and other island produce, since the small people of Mangaia would feel safe in their belief that they would reap where they had sown. W. E. Gudgeon, Resident Commissioner.

No. 5. Rarotonga, 2nd April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. Moorings for the Ports of Rarotonga and Aitutaki. 1 have the honour to submit, for the consideration of the Hon. the Minister in charge of these Islands, that the trade thereof would be greatly benefited by good moorings being laid down on the anchorages of both Rarotonga and Aitutaki. The latter is a most dangerous place to anchor, not only because there is foul ground where many anchors have been lost, but also from the fact that any change of wind to the west places a sailing-ship in danger, and makes it necessary to slip the anchor and work off the land. Under these circumstances I beg to recommend that moorings be laid down with as little delay as possible by the New Zealand Government, and suggest that as the Union Steamship Company will benefit greatly by the work, they be requested to carry the moorings free of charge and place them in position. It is possible that other islands may hereafter be dealt with in a similar manner ; but so far as our present knowledge extends the water is too deep at Mangaia, Mauke, or Atiu to permit of these aids to commerce. W. E. Gudgeon, Resident Commissioner.

No. 6. Rarotonga, 2nd April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. Boat-passages through the Beefs. During the visit of the Hon. the Premier an indefinite promise was made that the Government of New Zealand would cut passages through the reefs where required in order to give cargo-boats access to the shores of the islands. At Rarotonga, Aitutaki, Penrhyn, and Niue nature has done this; but at Mangaia and Atiu two or more passages are required at each island. At present every pound of produce has to be shipped over the reef in frail canoes, with the result that it takes as long to ship 50 tons at these two islands as it would to ship 200 at Rarotonga or Aitutaki, and with the further drawback that

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a portion of the produce is always damaged by salt water. I have, therefore, the honour to request that the promise of the Premier, so far as Mangaia and Atiu are concerned, may be carried out. From information that I have received I am of opinion that a good ship-channel could be made at Aitutaki into the deep part of the lagoon, through the northern reef opposite to the village of Vaipae, and I propose to test the truth of this information shortly by a thorough survey. W. E. Gudgeon, Resident Commissioner.

. No. 7. Rarotonga, 2nd April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. A Normal School for the Islands. The only State subsidy given by the Islands Administration in support of education is the £125 voted annually in aid of the Tereora Boarding-school, and I submit that it is not advisable that further assistance should be granted to denominational schools, though the .£125 must be continued. The London Mission Society has done much in aid of education, and deserves the support of the State —in fact, I am of opinion that in the present state of the Maori mind no other school would be supported. The Maori does not want education, and it is only his respect for the Church that he has known for eighty years that induces him to send his children to be taught. For these reasons it would be a mistake to establish a large number of Government schools, for the several missions give instruction in those branches of study that are really necessary to a primitive population, and more than that the Cook-Islanders do not desire. The Government of New Zealand could, however, render valuable assistance by the establishment of a normal school at which young Natives of these Islands could be taught to teach others. The old Parliament House would be available as a schoolhouse, and all that would be required is a teacher's residence. W. E. Gudgeon, Resident Commissioner.

No. 8. Rarotonga, 4th April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. Protection for the Fruit of these Islands. That a certain amount of protection should be afforded to the oranges of these Islands as against those from the French islands will be obvious by the light of late events. On the 11th March the s.s. " Ovalau " arrived from Tahiti bringing no less than 480 tons of oranges for the New Zealand market. We also shipped 200 tons of the same fruit, with the result that every shipper will lose money by the transaction, since the market will be overstocked. It may well be asked why the fruit-shippers sent oranges to New Zealand under such circumstances, and whether do not deserve to lose their money for such reckless trading. But I may point out for your information that, this being the last port of call, we are absolutely at the mercy of the French shippers. We have no means of ascertaining what amount of fruit they intend to ship by any boat, and as the steamer will only wait here for a few hours all our fruit must be picked and packed before the steamer comes into port; in fact, most of it has been placed in the wharf stores in charge of the agent of the company. That it would in such cases be cheaper to throw the oranges into the sea and suffer the first loss is true, but most of the shippers are poor men who cannot afford losses, and hope against hope to clear expenses. In addition to the loss we shall suffer in the fruit, 100 tons of copra which had been here some time awaiting shipment, had to be left behind, to the great loss of the owners. This will probably not happen again, for the agent of the company informs me that it is intended to run a superior class of boats in this trade. It is time that this was done, for the development of the banana trade in the last two years shows that we shall shortty fill a boat like the " Ovalau " with that fruit alone. In April the " Taviuni " brought 500 tons of fruit from Huahine and Raiatea, which fruit was bought for the absurd price of 3s. a thousand oranges as against our Bs. 6d. for the same number. Last steamer brought almost the same amount of fruit, which means that our fruit is absolutely valueless for the month. WE. Gudgeon, Resident Commissioner.

No. 9. Rarotonga, 4th April, 1903. The Hon. C. H. Mills, Minister for the Islands. The Island of Takutea. This very valuable island having been presented to His Majesty by Ngamaru Ariki, I propose that it shall shortly be planted with the cocoa-palm. So far as I can judge the island has an area of perhaps 300 acres, and properly planted would yield 200 tons of copra per annum, equal to £2,000. At the present time not more than 10 tons of copra could be made, for there are very few trees growing, but the island is well worth planting. The island would, I estimate, cost £300 per annum for the first three years, after which there

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would be only the cost of the manager's salarj - , say, £150 per annum, and food for the prisoners, which might amount to £100, for 1 propose that Takutea shall be the penal settlement of the Group. In addition to the £300 above mentioned, buildings to the value of £400 would be required, but not at once, for after the island was planted I would not occupy it permanently until the young trees required cleaning or attention. W. E. Gudgeon, Resident Commissioner.

No. 10. Sir, — Rarotonga, Cook Islands, 16th April, 1903. We, the undersigned residents in " Greater New Zealand," have the honour to bring under your notice the fact that we lire denied the advantages reaped by our fellow-colonists in New Zealand proper, inasmuch as the benefits accruing to them from the protective policy of the colony are not applied to this portion of it. Our natural products have to compete in our only market (New Zealand) with cheap coffee from the Central American States, and tropical fruits and produce from other places having advantages over us in the matter of distances and freights. This has iin intimate bearing upon the immediate and future prosperity of these Islands, and we request that you will, during the impending visit of the Minister of Customs, represent to him the pressing necessity of extending the protective policy of the Government to the produce of these Islands. As you are aware, the area of land under cultivation both by Europeans and Maoris is being largely increased in the expectation of an extended and profitable market, and, given an opportunity, the Islands can produce the whole of the tropical fruits, coffee, copra, and limejuice New Zealand is capable of consuming for many years. We would suggest that you approach the Minister with a view to having duties imposed upon the following articles, when imported from places other than the islands recently annexed, viz. : Oranges, limes, pineapples, bananas (green or dried); limejuice, bottled, crude in casks, or concentrated ; coffee, ground or raw, in husk or cleaned, coffee-essence : copra, cocoanuts. We recognise the question of protection as being one of such vital importance to these Islands, that we feel we should be failing in our duty did we not attempt to strengthen your hands by approaching you in this manner, knowing, as we do, that you Lave the welfare of the Islands at heart. We have, ice., Makea, The Resident Commissioner, Rarotonga, Cook Islands. [and 42 others!].

No. 8,

The Hon. the Commissioner of Customs. This is a petition that should have been addressed to you, and sent through me only. May I ask that you will accept it in that sense? W. E. Gudgeon, Resident Commissioner. 23/4/1903.

No. 11. Sir,— Niue, 6th December, 1902. I have the honour to forward to you under separate cover, for transmission to His Excellency the Governor, a petition against the importation of spirituous liquor into Niue, which was handed to me by the Patuiki on the loth instant. It has been signed by the inhabitants of ten villages, and is fairly representative of the people of Niue. Although I am opposed to the liquor traffic, and think the island would be better without it altogether, I am bound to say that the objections urged are rather sentimental and not borne out by facts, as far as my experience goes. A considerable quantity of liquor has been on the island since the 10th September last, which I have taken charge of and issued in small quantities to Europeans. No case has come to my knowledge of any Native obtaining any of this liquor from the Europeans. The rights of any community of white British subjects, however small, must be respected, and it appears to me that it would be arbitrary to deprive them of their right to consume alcoholicliquor in moderation because the Native population, who are debarred from procuring it, wish that course to be adopted. I have no doubt the whole liquor question will be brought before His Excellency when he visits Niue next year. I have, &c, C. F. Maxwell, The Resident Commissioner, Rarotonga. Government Agent, Niue.

[Minute on foregoing.] The Hon. the Minister. I have the honour to submit this petition for your consideration. I think that the only true policy is that spirits should be absolutely forbidden to all Natives, but that the rights of Europeans should not be interfered with where they have for years enjoyed the privilege of buying spirits, and have not abused that privilege. W. E. Gudgeon. 30/4/03.

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Enclosure. [Translation.] Wβ, the undersigned chiefs and people of Tamahaleleka, pray His Excellency Lord Ranfurly, K.C.M.G., the Governor and Commander-in-Chief of New Zealand, to prohibit the sale of all intoxicating liquors on this Island of Niue. If liquors are bought and sold by the foreign residents on the island many irregularities will occur, and we shall be unable to enforce the law that liquor shall not be sold nor given to Natives at Niue. Togia [and 201 others]. [Also petitions in similar terms from the following villages: Alofi, 351 signatures; Makefu. 33 signatures; Avatele, 38 signatures; Hakupu, 111 signatures; Tamalagau, 63 signatures; Mutalau, 185 signatures; Fatiau, 32 signatures; Hikutavake, 88 signatures; Uhomotu, 98 signatures ; Tamakautoga, 67 signatures.]

No. 12. Sir,— Rarotouga, sth May, 1903. With reference to the question of audit, I have the honour to suggest that a sum of £40 should be added to the estimates in order to pay the passage and expenses of one of the New Zealand Auditors to this island. I think that any officer of the calibre of Mr. Webb would finish bis work here during the week that the steamer is absent at Tahiti. I would also suggest that an Auditor should be sent here with as little delay as possible to examine last year's accounts. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 13. Sir, — Rarotonga, Cook Islands, 6th May, 1903. I have the honour to forward attached a draft Order in Council for the purpose of adopting section 50 of the Native Land Claims Adjustment and Laws Amendment Act of 1901, and all regulations made thereunder. This law is required in this Group, even more than in New Zealand, by reason of the fact that every family has one or more adopted children, and these children are almost invariably objected to, after the decease of the adopting parent, by his relatives. In such cases endless litigation follows the want of registration. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 14. Sir,- Rarotonga, Cook Islands, 20th May, 1903. I have the honour to draw your attention to a specific instance of the unsuitability of the New Zealand tariff to the condition of these Islands, and to point out that some arrangement in modification of the tariff is not only advisable but even necessary in aid of the revenue. Before the introduction of the present tariff large sales of tobacco were made, both in Niue and the Northern Islands, but since the imposition of 3s. 6d. per pound this sale has in great measure ceased. That the consumption of tobacco continues I have no doubt, but not at the price at which it must be sold if duty is paid thereon. My conclusion is that at 3s. 6d. per pound we are only encouraging smuggling, and the sale of a very inferior tobacco grown in Mangaia, and which is largely exported to the Northern Islands. I have the honour to suggest that [ may be allowed to grant a rebate of 2s. per pound on all tobacco imported into these Islands. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 15. g IR( — Rarotonga, Cook Islands, 26th May, 1903. 1 have the honour to forward enclosed return of revenue and expenditure for the Island of Niue for the fifteen months ending the 31st March. 1903. The balance in hand, £1,242 3s. id., discloses a most satisfactory condition of affairs, as it will enable Mr. Maxwell to improve the landing-places, make roads, and do the numerous works co urgently required at Niue. I have, &c, W. E. Gudgbon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

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Enclosure. Island of Niue.—Retubn of Bevenue -and Expenditure for the Fifteen Months ending the 31st March, 1903. Revenue. £ s. d. Expenditure. £ s. d. Customs .. .. .. .. 1,024 3 8 Expenditure as per Schedule I. .. .. 267 1 2 Trade licenses.. .. .. .. 97 10 0 „ „ 11. .. 52 14 9 Pines and Court fees .. .. .. 72 11 9 Material for Government HouseSale of hats .. .. .. .. 4 8 0 Wingate .. .. .. .. 83 5 3 Emigration fees .. .. .. 37 12 0 Kauri Timber Company .. .. 45 10 0 Shipping-fees .. .. .. .. 3 7 0 Freight for above material .. .. 14 19 8 Labour fees .. .. .. .. 13 4 0 Beiund ........ 100 463 10 10 Stamps sold in Niue .. .. .. 162 2 1 By cash in Treasury, 31st May, 1903 .. 1,242 3 4 Stamps sold in New Zealand .. .. 269 15 8 £1,705 14 2 £1,705 14 2 W. E. Gudgeon, Resident Commissioner.

Schedule I.—Expenditure from January, 1902, to 31st December, 1902. £ s. d. Office-rent ... ... ... ... ... ... 12 15 0 Messengers ... . . ... ... ... ... 115 0 Labour ... ... ... ... ... ... ... 18 18 0 Compensation ... ... ... ... ... ... 500 Refunds ... ... ... .... ... ... ... 112 9 Interpreter ... ... ... ... ... ... 1120 Police allowance ... ... ... ... ... ... 080 Horse-hire ... ... ... ... ... ... 200 Stationery ... ... ... ... ... ... 2 17 6 Salaries of Niue Council ... ... ... ... ... 92 14 0 Salaries, Native Magistrates... ... ... ... ... 35 2 0 Pay of police ... ... ... ... .. ... 47 13 0 Canoe-hire ... ... ... ... ... ... 310 Nails, &c, for building quarters .. ... ... ... 9156 Sundries ... ... ... .. ... ... ... 410 Police equipment ... ... ... ... ... ... 291 Provisions issued to workmen ... ... ... .. 1964 Stamps for office use .. ... ... ... ... 050 Payment for extra land ... ... ... ... ... 1 10 0 Timber for quarters .. .. .. .. ... 1160 Freight on horse from Tonga ... ... . . .. 210 0 £267 1 2 W. E. Gudgeon, Resident Commissioner

Schedule II. —Statement of Expenditure for Quarter ending the 31st March, 1903. £ s. d. Purchase of horse for Niue Government ... ... ... 11 0 0 Horse-feed ... ... ... ... ... ... ... 0 18 0 Labour ... ... ... ... ... ... ... 15 12 4 Nails ... ... ... ... ... ... ... 0 3 6 Office-rent ... ... ... ... ... ... ... 3 0 0 Messenger ... ... ... ... ... ... ... 040 Police ... ... ... ... ... .. ■ . 17 3 Provisions for workmen ... ... ... ... 17 1 6 Canoe-hire ... ... ... ... ... ... ■ 040 Compensation ... ... ... ... .. ... 0100 Freight, "Countess" ... ... ... ... ... 114 2 Sundries ... ... ... ... ... ... 10 0 £52 14 9 W. E. Gudgeon, Resident Commissioner.

No. 16. Sir,— Rarotonga, Cook Islands, 28th May, 1903. I have the honour to enclose a translation of a letter received from Makea, President of the Federal Council, in which she complains of the action of the unpaid Resident Agent at Atiu. I think it possible that there may be grounds for this complaint, and will inquire into the whole matter when I visit Atiu in July.

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No. 4.

It is, however, on the general subject of Resident Agents that I now write. You have already my views on this subject with reference to the Island of Mangaia, and have heard the well-founded complaint of Taie as to the oppression of the small people by Miringitangi. These are facts that I have long known, and I have now come to the conclusion that in all of the larger islands there should be European officers holding the chief judicial power, for in no other way can the people be protected and the resources of the island developed. Wholesome advice must be given again and again, to take hold of the Polynesian mind. In the case of Atiu there is no immediate hurry, but an officer will be required for that island in the not very remote future, for now that Ngamaru is dead, there is no one of Native birth who can keep the rather savage people of that island in order. The presence of a paid officer would, however, civilise the people and lead them gently and imperceptibly into our method of dealing with lands. This is important, because there is four times as much waste land at Atiu as there is at Rarotonga. The Polynesian mind is not receptive, and they require feeding gently with new ideas, especially on the subject of land. Since your visit, a Mr. J. C. Cameron, of New Zealand, has come to reside among us ; he is a certificated interpreter, and a man who would make a very good Resident Agent. Colonel Roberts, S.M., of Tauranga, would be able to give you his character, and I am of opinion that he would be a decided improvement on Mr. Proctor, who is too nervous to be an effective officer. I have, &c, W. E. Gudgeon, Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

Enclosure. Sir,— Rarotonga, 27th May, 1903. We are not satisfied with the management and behaviour of Mr. Yon Nagel, who has been appointed Acting Resident Agent at Atiu. Our cause of dissatisfaction is that he identifies himself with parties on the island, and does not confine himself to the duties of Resident Agent, which in this case should be the suppression of cliques, so that all might work for the good of the island. We are all of opinion that it would be better that a man of British descent should be appointed to this post. Enough. From your servant, Colonel W. E. Gudgeon, Resident Commissioner. Makea.

No. 17. Sib, Customs, Alofi, Niue, Ist June, 1903. 1 have the honour to bring to your notice the desirability for having moorings for ships 'laid down in Alofi roadstead. At present, in the event of a westerly wind setting in, sailingvessels are obliged to slip their cables, with little chance of recovering them again. A 10 cwt. anchor and J in. chain and buoy would serve the purpose, but a heavier anchor would be preferable. The Government schooner " Countess of Ranfurly " might lay it on one of her periodical visits to Niue. Trusting that this suggestion may meet with the favourable consideration of the Government. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. the Minister for Trade and Customs, Wellington.

No. 18. Sir,— Alofi, Niue, 2nd June, 1903. I have the honour to apply to you for direction with reference to vessels visiting Niue to recruit labour for the guano islands or for cocoanut-plantations on other islands in the Pacific. The barque "Jerfalcon," owned by Messrs. Grice, Sumner, and Co., of Melbourne, is the only vessel which carries a formal license, signed by the Governor of Victoria. Messrs. Lever Bros', steamers call here for men as the firm or their predecessors have done for thirty years past. They have no license and inform me that they cannot obtain one. I have not refused to permit them to recruit a few men, as they apparently treat them very well, and Natives are eager to go with them. I should like definite instructions how to deal with them in future. It appears to me that licenses should be obtained from the New Zealand Government before these vessels are permitted to recruit labour in New Zealand territory. I have, &c. C. F. Maxwell, Government Agent, Niue. The Hon. C. H. Mills, Minister for Trade and Customs, Wellington.

No. 19. Sir, Niue, sth June, 1903. You will doubtless remember that one of the Native speakers who addressed you at the meeting at Alofi on the 16th May last, referred to the fees charged Niue Natives emigrating to

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Tonga and elsewhere. I deem it my duty to give you fuller information regarding the subject than was possible in the limited time at your disposal. As I explained to you then, the fee of 4s. charged for registration and pass to each emigrant was imposed by the Niue Council with the concurrence of Mr. Percy Smith. This fee was imposed, not so much for the purpose of augmenting the revenue, as to act as a deterrent against the ablebodied men leaving the island without making proper provision for their wives and families. This practice had attained very serious dimensions. A taste for wandering is inherent in the Niuean, and love of country hardly exists. They are to be found all over the Pacific, and very many of them never return to Niue, and desert their families entirely. This exodus became so serious that the Niue Council afterwards decided to increase the fee to 10s. in the case of Tonga, as the people were flocking over there in numbers, though many of them suffered privations after reaching there, through lack of employment. In the majority of cases I can vouch that there was absolutely no special reason why these men should wish to leave, except that Tonga afforded greater attractions and more facilities for obtaining liquor than are to be found on Niue. I find this exodus very inconvenient, as men to whom 1 could give constant employment at 4s. per day, and who were under no disability whatever, bound themselves to work for twelve months or longer for a wage of £2 per month. Their sole motive is love of change and adventure. As the best men leave on these excursions, I find it difficult to get competent men to do necessary work. I suppose that as free British subjects they have a right to leave when they feel inclined, but it is useless to try to develop the resources of this island unless something is done to restrict emigration. Out of a population of 1,683 males of fifteen years and over on the Ist June, 1902, no less than 418, or 24.8 per cent., were absent in different islands or at sea. There is no doubt that owing to the rocky nature of the soil strenuous effort is necessary to obtain food. This is intensified in the case of women and children, when their husbands and fathers have left them. There is an ancient law of Niue which precludes women from leaving the island. I think, however, if a man has liberty to leave, and wishes to take his wife, he should not be prevented, and have accordingly given passes gratis to women wishing to accompany their husbands. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. C. H. Mills, Minister for Trade and Customs, Wellington.

No. 20. Sir,— Niue, Bth June, 1903. I have the honour to forward to you herewith for your information a copy of a letter that I have written to the Resident Commissioner, Rarotonga, with reference to "The Traders' License Act, 1898," with a view of having Regulation 6 amended on the lines mentioned by you when here. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. the Minister for Trade and Customs, Wellington.

Enclosure. g IR; _ Niue, Bth June, 1903. I am directed by the Hon. Mr. Mills to write to you and point out a clause in " The Traders' License Act, 1898," which bears hardly on some of the traders of Niue, with a view of getting the regulation altered as regards this island. I refer to Regulation 6of the Act, which reads, " Any person or syndicate having more than one store shall obtain a wholesale license for one store and a retail license for each store in addition." There are some small traders here who make no pretence to doing a wholesale trade, yet if they wish to establish a branch store are obliged to pay £15 per annum in terms of the Act. Mr. Mills considered that a retail license only should be required for stores of this description and their branches—that is, £5 per annum for each store. When a firm professes to keep a wholesale establishment the regulation as it stands should apply to them. I assume you will be able to get the regulation altered by the Federal Council. A letter written by His Excellency Lord Ranfurly to Togia and chiefs of Niue complicates matters somewhat. I 'furnish an extract from this letter (1098/1902, 29th December, 1902): "No ordinance of the Federal Council of Rarotonga will be allowed to obtain on the Island of Niue. You have your own Council, and pass your own Ordinances for self-governing purposes, and any Ordinance passed by the Rarotonga Council will be disallowed, so far as it affects the Natives of Niue." The immediate consequence of this assurance is that Natives are obtaining goods and establishing petty stores in the villages to the detriment of the trade of those traders who have taken out licenses. In face of His Excellency's letter I cannot enforce the Act against Natives. . It is quite clear that the Governor does not intend the Ordinance to apply to Natives. I have, <fee, C. F. Maxwell, The Resident Commissioner, Rarotonga. Government Agent. I have forwarded a copy of this letter to the Hon. the Commissioner of Trade and Customs for his information. —C. F. M. 2—A. 3,

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No. 21. Sir,— Rarotonga, Cook Islands, 10th June, 1903. 1 bave the honour to inform you that I have arranged with Mr. Winchester, of the firm of Maxwell and Co., of Penrhyn, to plant the Aitutaki lagoon with Scilly Island shell, the most valuable of all the pearl-shell. It would seem to me that there is a fair prospect of success in this case, inasmuch as the Mopia lagoon has been planted with the same shell, and has produced no less than 40 tons in a year. If the venture is successful there would be no difficulty in proclaiming the lagoon of Aitutaki a Government reserve, and I would suggest that I be empowered to give Messrs. Dexter and Winchester an exclusive right to dive for shell for ten years as a recognition of their services, inasmuch as it is intended to make several yearly shipments of young shell and spawn from Scilly to Aitutaki. I have, &c, W. E. Gudgeon, Resident Commissioner. Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 22. Sir," — Minister's Office, Trade and Customs, Wellington, 12th June, 1903. When at Niue I consulted with Mr. Maxwell, regarding making surveys on the island, and he informed me it would be impossible for him to undertake the work, as if he did it would simply mean neglecting his other duties; in fact, he wants some assistance there as it is to help him in his work. I should like your advice as to what is best to be done, as I assume Mr. Connal will have plenty of work for some time with you. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 23. Sin, — Minister's Office, Trade and Customs, Wellington, 13th June, 1903. In reply to your letter of the 2nd April re making passages through the reefs, the Premier told me definitely before leaving that if nothing had been done regarding the cutting of the passages in order to give proper access to the islands, he would make arrangements for having the work done. On his leturn to Wellington I will confer with him as to the best means to adopt, and what officer should be sent down to carry out the work. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 6,

No. 24. Sir, — Minister's Office, Trade and Customs, Wellington, 13th June, 1903. Your letters of the 30th March and 21st April, referring to an Ordinance passed by the Aitutaki Island Council to regulate the use of bicycles, and one passed by the Council of Mangaia, must both stand over until Cabinet has considered these questions. Yours, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 2

No. 25. Sir, — Eastern Pacific, Rarotonga, 25th June, 1903. I have the honour to acknowledge the receipt of your letter No. 1502, of the 22nd May, with reference to the Island of Takutea, and beg to inform you that His Excellency the Governor has written to Makea thanking her for the gift by her late husband, and assuring her that the island will be used for the benefit of the inhabitants of the Group. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

A.-3, 1903, No. 58,

No. 26. Sir,— Niue, 2nd July, 1903. I have the honour to submit to you for your information a copy of a letter that I have written to the Collector of Customs, Auckland, asking for information regarding the collection in Auckland of duties on goods shipped to Niue. If it is definitely decided that duties will be collected in Auckland on all goods for Niue, excepting tobacco, spirituous liquors, and goods in bond via Auckland, the position will be clear. It would, however, be severe on traders there who wish to bond part of their stock in Niue. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. the Commissioner of Trade and Customs, Wellington.

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No. 27. Sir,— Premier's Office, Wellington, 11th July, 1903. I have the honour to acknowledge the receipt of your letter No. 1, of the 31st March, in which you state you propose to transfer Mr. Large to Mangaia and to replace him by Mr. Proctor, and in reply to authorise you to give effect to your suggestions. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 4.

No. 28. Sir,— Premier's Office, Wellington, 11th July, 1903. Referring to your memorandum of the 2nd April, No. 5, relative to the necessity for laying moorings at the anchorages of Rarotonga and Aitutaki, I am making inquiries as to the cost, and will let you know next mail what will be done. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 5.

No. 29. Sir,— Premier's Office, Wellington, 11th July, 1903. I have the honour to acknowledge the receipt of your letter No. 20, of the 26th May, forwarding return of the revenue and expenditure of Niue for fifteen months ended the 31st March, 1903, which is very satisfactory. I note with satisfaction the large credit balance. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 15.

No. 30. Sib,— Premier's Office, Wellington, 11th July, 1903. Regarding Makea Ariki's complaint against Mr. Yon Nagel, forwarded with your letter No. 23, of the 28th May, it does not appear that I can say anything until I receive your report after your next visit to Atiu. I approve of your proposal to appoint Mr. Cameron in place of Mr. Proctor to replace Mr. Large at Aitutaki. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 16.

No. 31. Sin,— Niue, 13th July, 1003. I have the honour to submit to you herewith a statement of receipts and expenditure of the Niue Island revenue for the quarter ended the 30th June, 1903. You will gather from it that the total receipts from all sources amount to £322 14s. 3d., and the total expenditure during the period to £273 Bs. sd. The official salaries becoming payable during the quarter caused an increase of expenditure. The Customs duties would have amounted to much more but for the fact that the duties on the April shipments (the largest of the year) were collected in Auckland. Also the duties on two large consignments of goods from Rarotonga were collected in that island. The Niue revenue consequentl} , loses these duties, which amount to a large sum, especially as a considerable quantity of spirituous l'quor was included in the last shipment from Rarotonga, and although the Customs here has to take charge of this liquor and issue it according to regulations, the Niue revenue derives no benefit therefrom. The Resident Commissioner informs me that it is not purposed to credit this island with the amount of duty paid in Rarotonga on these shipments. This appears to be rather unfair to Niue. The Customs revenue here in future will be dependent upon the duty on tobacco from Auckland and any duties payable on goods imported by the Sydney firm" trading in Niue. I have not included the amount derived from the sale of Niue stamps in the receipts., nuftoupf' I am informed that this island is entitled to them, as I have no means of knowing what these proceeds amount to, or in what manner they will be dealt with. Any sums derived from sale of Niue stamps might be paid to credit of Niue Island Account, Bank of New Zealand, Auckland. I have, &c, C. F. Maxwell, Collector of Customs, Niue. The Hon. C. H. Mills, Commissioner of Trade and Customs, Wellington.

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Enclosure. Niue Island Revenue Account. —Statement of Receipts and Expenditure for Quarter ended 30th June, 1903. Cash: Particulars of Receipt. Per Contra: Particulars of Payment. £ s. d. £ s. d. To Balance brought forward, Ist April, 1903 1,015 18 5 By Pay of eleven Native constables .. 22 1 0 Customs duties .. .. .. 269 0 1 Horse-feed for Resident's horse .. 12 0 Pines and fees .. .. .. 11 17 0 Canoe-hire .. .. .. 2 0 0 Trading licenses .. .. .. 23 6 8 Stationery for office use .. .. 319 9 Emigrants' passes .. .. .. 16 11 0 Bent of offices .. .. .. 3 10 0 Shipping-fees .. .. .. 1 19 6 Labour on jetty, bond store, &c. .. 46 8 0 Freight on timber and goods .. 22 5 2 Saddle for Resident.. .. .. 3 15 0 Compensation for trees, houses, &c. .. 4 9 0 Native timber for bond store .. 2 10 0 Stores for workmen .. .. .. 5 10 9 Refund of fine .. .. .. 0 5 0 Refund of Customs duties .. .. 75 3 1 Deposit Bank of New Zealand, Auckland, per Hon. C. H. Mills .. 700 0 0 Salaries of Niue Island Council .. 42 8 0 Salaries of five Native Magistrates .. 17 6 0 Goods for Niue Government.. .. 16 10 8 Extra pay to police .. .. .. 0 5 0 Bonus to Native teacher (Uea) .. 4 0 0 973 8 5 Cash in hand, Ist July, 1903.. .. 365 4 3 £1,338 12 8 £1,338 12 8 Cash in hand, Ist July, 1903 .. .. 365 4 3 Cash in Bank of New Zealand .. 700 0 0 Total credit balance .. .. £1,065 4 3

No. 32. Sir, — Premier's Office, Wellington, 14th July, 1903. Referring to your letter No. 7, of the Ist June, I have the honour to inform you that I am making inquiries as to the cost of moorings suitable for the Alofi roadstead, and will communicate with you again on the subject. I have, &c, The Resident Agent, Niue. C. H. Mills.

No. 17.

No. 33. Sir,— Premier's Office, Wellington, 14th July, 1903. I have the honour to acknowledge the receipt of your letter No. 29, of the Bth June, with enclosure, relative to the operation of " The Traders' License Act, 1898." Ido not see that anything can be done, pending the receipt of Colonel Gudgeon's reply to your letters; but you are quite right in not attempting to enforce this Act against Natives —it was never intended to apply to them. I have, &c, The Resident Agent, Niue. C. H. Mills.

No. 20.

No. 34. Slß,— Premier's Office, Wellington, 14th July, 1903. I have the honour to acknowledge the receipt of your letter No. 12, of the 2nd June, applying for directions with reference to vessels visiting Niue to recruit labour for the guano islands. Under the circumstances there does not appear to be any objection to the course followed by you in the case of Messrs. Lever Bros. I have, &c, The Resident Agent, Niue. C. H. Mills.

No. 18.

No. 35. Sir,— Premier's Office, Wellington, 14th July, 1903. I have the honour to acknowledge the receipt of your letter No. 10, of the 4th April, setting forth your proposals with regard to the Island of Takutea, the consideration of which must stand over for the present. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 9.

No. 36. Sik,— Premier's Office, Wellington, 15th July, 1903. Herewith I enclose appointments under the hand of His Excellency the Governor for Mr. Large as Resident Agent at Mangaia, and for Mr. Cameron as Resident Agent at Aitutaki. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No 16.

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No. 37. Sir,-- Premier's Office, Wellington, 18th July, 1903. In reply to your letter No. 25, of the 10th June, 1 approve of your arrangements with Messrs. Dexter and Winchester to plant the Aitutaki lagoon with Scilly pearl-shell. At the same time I think that if 40 tons can be procured in one year, a ten-years lease is far too long for the exclusive right. However, I leave it to you to make the best arrangement you can. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 21.

No. 38. Sin,— Niue, 24th July, 1903. I have the honour to submit to you a copy of an order that I have placed with Messrs. Wingate and Co. for tools, &c, required for public purposes in Niue. I find that in conducting roadmaking operations the lack of tools hampers the work very much. I have already procured a few tools, but quite insufficient for the work required. Hitherto the Natives have brought to the work such tools as they possess, but their efficiency as workmen is much impaired by the unsuitability and paucity of their implements. In fact, I require many more hammers, &c, before I can properly equip the eleven villages for the work required. In this island roadmaking is an arduous and tedious undertaking, as the material to be dealt with is chiefly coral rock, which has to be disintegrated with hammers or blasted with dynamite. I have tried the experiment of constructing roads by day labour, at 4s. a day, under a foreman. While I have no fault to find with the way the Natives work under this system or with the result of their labour, it is evident that this method is altogether too costly, as it averages £2 per chain and more when the rock is hard. Hitherto whole villages have turned out to make roads —often a hundred men and double that number of women and children. While engaged in this work I have given them some provisions and a small quantity of tobacco per head. It is quite beyond the resources of the island to pay wages to such a large number of people. I propose to in future pay the able-bodied men a small sum in cash and give the others some tobacco as an encouragement, and for this purpose I wish to import a case of tobacco. I can obtain it much cheaper in this way than by purchasing it from the traders, who ask 150 per cent, more than what I can buy it for in Auckland. I am therefore about to place an order for a case of tobacco with Messrs. A. H. Nathan and Co., who supply the class of tobacco used by the Natives only. No European here smokes it. The system I have hitherto followed is that I have ordered goods required, and the invoices have been sent to the Resident Commissioner for his approval. He has sufficient confidence in my discretion to know that I will not order goods unnecessarily or extravagantly. If lam required to obtain your sanction before ordering articles which may be urgently required the delay will be very great; but by sending you a duplicate of the order it is an easy matter to countermand the goods if you decide that they are unnecessary. I think this system is the most workable under the circumstances. This is subject, of course, to any future instructions which you may send me. Tobacco is a medium of exchange and barter here, and is easiest handled in lieu of cash. I will be glad if you would be so good as to give me a general authority to order necessary goods, sending you in each case a copy of the order. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. C. H. Mills, Commissioner of Trade and Customs, Wellington.

No. 39. Sir,— Premier's Office, Wellington, 30th July, 1903. Referring to the petition against the introduction of spirits, &c, into Niue forwarded by you on the 30th April last, I have the honour to inform you that it has been laid before His Excellency the Governor, who has directed that the petitioners should be informed that the Island Council should pass an Ordinance absolutely prohibiting the sale of spirits, &c, to all Natives, but that His Excellency cannot interfere with the introduction of spirits by the European residents for their own consumption. The Resident Agent at Niue has been so informed. I have, (fee, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 11.

No. 40. Slß,— Premier's Office, Wellington, 30th July, 1903. I have the honour to inform you that the petition against the importation of spirituous liquors into Niue forwarded by you through the Resident Commissioner on the 6th December last has been submitted to His Excellency the Governor, who has directed that the petitioners should be informed that the Island Council should pass an Ordinance absolutely prohibiting the sale of spirits, &c, to all Natives, but that His Excellency cannot interfere "with the introduction of spirits by the European residents for their own consumption. I have, &c, The Resident Agent, Niue. Q jj Mills

No 11.

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No. 41. Ordinance No. 3 op Island Council of Rarotonga, forwarded by Resident Commissioner for Assent by His Excellency the Governor (August, 1903). Barotonga Council Ordinance No. 3. — An Ordinance to regulate the Erection and Repair of Dividing-fences on Lands in the Occupation of Europeans. (20th July, 1903.) Be it enacted by the Island Council of Rarotonga: — 1. The Short Title of this Ordinance is " The Fencing Ordinance, 1903." 2. Any one of the fences mentioned in Schedule A hereof shall be a sufficient fence within the meaning of this Ordinance. 3. Subject to the provisions of this Ordinance the European occupiers of contiguous lands not divided by a sufficient fence are liable to join in or contribute in equal proportions to the erection of a fence between such lands. 4. Where any Eiiropean occupier of land shall have erected a sufficient fence, and any contiguous land shall, at the date of this Ordinance, or shall thereafter, be occupied by any European, such last-mentioned European shall be liable to pay to such first-mentioned European one-half of the value of such fence at the date of the service of the notice hereafter mentioned, or at the date of the erection of the fence, or at the date after the erection of the fence when the contiguous lands were both held by European occupiers. 5. Any European occupier desiring to compel any other European occupying contiguous lands to contribute towards the erection of a fence under this Ordinance must serve on him a notice to fence. Such notice shall be in the form or to the effect of Schedule B hereto, and shall specify the boundary to be fenced and the kind of fence proposed to be erected. 6. If the receiver of a notice to fence objects to any of the proposals therein contained, he may within fourteen days after the service of such notice serve on the giver a cross-notice specifying such objection and making counter-proposals to fence. Such cross-notice shall be in the form or to the effect of Schedule C hereto. If he fails to serve such cross-notice within the said period of fourteen days he shall be deemed to have agreed to the proposals contained in the notice served upon him. 7. Any European occupier desiring to compel the European occupant of any contiguous lands to pay one-half the value of any dividing-fence under the provisions of section four hereof must serve on such last-named European occupier a notice in the form or to the effect of Schedule D hereof. 8. If the receiver of such notice under the preceding section objects to the amount claimed as half of the value of the fence, or if he has any other objection to the matter, he may within fourteen days after the service of such notice serve on the giver a cross-notice in the form or to the effect of Schedule E, specifying the amount that he is willing to pay as half value of the fence, or specifying any other objection. If he fails to serve such cross-notice within the said period of fourteen da}'s he shall be deemed to have agreed to the amouut claimed in the notice served upon him. 9. If notices to fence have been duly served by both parties and the proposals therein do not correspond, or if a notice and cross-notice have been served, then (unless within fourteen days after the service of the last of the said notices the parties can agree) the question in dispute shall be determined by a Judge. 10. If any European owner shall desire to erect a dividing-fence of a description different from any fence mentioned in Schedule A hereto, he shall give notice as hereinbefore provided, and if the person served with such notice shall not within fourteen days of the service of such notice object in writing to the description of fence proposed to be erected, then the person giving such notice may proceed to erect such fence accordingly, and such fence shall be deemed to be a sufficient fence within the meaning of this Ordinance, and in case of objection made the question in difference shall be determined by a Judge. 11. If any European person becomes the occupier of any land separated from any contiguous land by a fence made by the European owner of such contiguous land such person shall be subject to the same liabilities in respect of such fence as his predecessor was subject to under the relinquished occupation. 12. Where a fence is made of posts and rails or wire or palings the posts of such fence shall be placed on the boundary-line, or as near thereto as shall be practicable. 13. When any fence is out of repair the European occupiers of the contiguous lands shall bear the cost of repairing such fence in equal proportions. 14. The occupier desiring to repair any fence may serve a notice upon the contiguous occupier requiring him to assist in repairing such fence, and if such occupier refuses or neglects so to do for the space of one week after the service of such notice such first-mentioned occupier may himself do the work and recover half the cost thereof from the occupier making default. 15. If a fence is damaged or destroyed by sudden accident or other cause and requires immediate repair, the occupier of the land on either side may repair the same without any notice, and, subject to the provisions of the next succeeding section, may recover half the cost thereof from the contiguous occupier. 16. If by reason of the neglect or default of any occupier any fence is damaged or destroyed, whether by stock, or fire, or the falling of a tree, or otherwise howsoever, such occupier shall be liable for the whole cost of repairing the fence so damaged or destroyed. 17. A Judge shall have jurisdiction to hear and determine all questions and disputes under this Ordinance, and all moneys recoverable under this Ordinance may be sued for and recovered in the High Court of the Cook Islands.

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18. Any notice under this Ordinance to be served upon any person may be served — (a.) Either personally, or by leaving the same at, or posting the same in a registered letter addressed to, such person's last known place of abode or business, Rarotonga. (b.) If such person is absent from Rarotonga, then by similarly serving the notice upon his known agent or attorney. (c.) If there is no known agent or attorney, then by publishing a copy of such notice in the Cook Islands Gazette, and affixing a copy of such notice upon a conspicuous part of the land, or on some public road adjacent thereto. li). In this Ordinance, if not inconsistent with the text, — "European" shall mean all persons other than aboriginal natives, and includes all halfcastes living as Europeans: " Fence " means a sufficient fence of any of the kinds mentioned in Schedule A separating the lands of different occupiers, and includes all necessary gates, culverts, and channels: " Judge " means a European Judge of the High Court of the Cook Islands: " Occupier " includes any European person who is in occupation of or entitled to occupy any land.

SCHEDULE A.—Description of Sufficient Fence. (a.) A post-and-rail fence not less than 3 ft. 9 in. in height, of substantial material, firmly erected with not less than three rails, the space between the bottom rail and the ground not to exceed 5 in., and the posts not more than 9 ft. apart. (l>.) A substantial wire fence having not less than three wires tightly stretched and stapled, posts of durable wood well and substantially erected; the posts or standards not to be more than 9 ft. apart, top wire not to be less than 3 ft. 9 in. from the surface of the ground; the wires to be not lighter than No. 8, in steel, black, or galvanised wires. (c.) Any paling fence at least 3 ft. 9 in. high with posts and two rails, and having split or sawn timber placed perpendicularly and well nailed to both rails, there being not more than 4 in. of opening between each perpendicular piece of timber. (d.) A stone wall well and substantially built, limed, plastered, or cemented over, not less than 4 ft. in height, and not less than 2 ft. in width at base. (c.) Any other description of fence mutually agreed upon in writing by the persons interested. [Note. — (c) and (d) shall apply only to lands within any settlement used for residential or business purposes.] SCHEDULE B— Notice to make Fence. To C. D., occupier [or agent of occupier] of [Describing contiguous land]. Take notice that I desire that a fence between [Describing the lands] be made on or before the day of , 190 , and propose that such fence shall be a [Describe the fence]. Dated the day of , 190 . A. 8., Occupier [or, &c.]. SCHEDULE C—Cross-notice. To A. 8., occupier of [Describing adjoining land]. Take notice that I object to your notice to fence, dated the day of , 190 , in as far as it does not correspond with the proposal that I now make, to wit, that a fence between [Describe the lands] be made on or before the day of , 190 , and that such fence shall be [Describe fence]. Dated the day of , 190 . C. D., Occupier [or, &o.]. SCHEDULE D. — Notice claiming Half Value of Fence already erected. To C. D., occupier [or agent of occupier] of [Describe contiguous land]. Take notice that I claim , being one-half the value of the fence between [Describe land]. Dated the day of , 190 . A. 8., Occupier [or, &c.]. SCHEDULE E.—Cross-notice. To A. 8., occupier [or, &c.]. Take notice that I object to the amount of demanded by you as half value of the fence between [Describe land]. lam willing to pay the sum of for the same [or I object (Here state any objections)]. Dated this day of , 190 . C. D., Occupier [or, &c.].

Passed this twentieth day of July, one thousand nine hundred and three. S. Savage, Clerk to the Council. W. E. Gudgeon, Resident Commissioner. [Assented to by the Governor, 31st August, 1903.]

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No. 42. Ordinances Nos. 11 and 12 op the Federal Council of the Cook Islands, forwarded by the Resident Commissioner for the Assent of His Excellency the Governor (August, 1903). No. 11. — An Ordinance to extend Section 2 of the Traders' License Act to the Islands of Manihiki, Rakahanga, and Pukapuka. Be it enacted by the Federal Council of the Cook and other Islands: — 1. The Short Title of this Ordinance is " The Trading Schooner Ordinance, 1903." 2. Section two of " The Traders' License Act, 1898," is hereby extended to include the islands of Manihiki, Rakahanga, and Pukapuka (Danger Island). 3. All trading-vessels within the meaning of section two shall pay the full license fee of ten pounds (£10) in advance. 4. Regulation No. 2, of the twenty-second day of October, one thousand eight hundred and ninety-eight is hereby repealed. Passed this twentieth day of July, one thousand nine hundred and three. S. Savage, Clerk to the Council. W. E. Gudgeon, President. [Assented to by the Governor on the 2nd September,' 1903.]

No. 12. — An Ordinance to regulate and insure the Attendance of Native Children at the various Schools established within the Cook Islands. Be it enacted by the Federal Council of the Cook and Northern Islands: — 1. The Short Title of this Ordinance is " The School Attendance Ordinance, 1903." 2. From and after the date on which this Ordinance shall come into force parents will be held responsible for the non-attendance at school of any child above the age of six years and under the age of thirteen years. 3. In all cases of truancy the father of the truant child shall be deemed to be primarily responsible for such truancy, but if it shall be shown in evidence that the father was absent at the time that the child had been adopted and was living with other people, or that for some other reason the father was not responsible, then the mother or the person in whose charge the child was living shall be held to be the person responsible to the Court. 4. It shall be the duty of all masters of schools established within the limits of the Cook and Northern Islands to maintain a regular attendance of the children at the school over which they preside, and report the non-attendance of any child to the police, whose duty it will be to inquire forthwith into the case and bring the parent or guardian before the nearest Court. 5. Any Judge or Magistrate of a Court within the Cook and Northern Islands aforesaid may inflict a fine of not exceeding one shilling for each act of truancy, provided always that where a child shall have been three times convicted of truancy within one month the parent or guardian shall on the third conviction be liable to a fine of not exceeding five shillings. 6. No Court fees shall be charged under this Ordinance in undefended cases, but it shall be in the discretion of the Court to charge the ordinary fees in all cases where the time of the Court has been wasted by the equivocation of parents or guardians. 7. Nothing contained in this Ordinance shall be held to deprive the master of any school of the power to give reasonable exemption from school attendance to any child at the request of the parents. 8. This Ordinance shall apply to the Island of Rarotonga only, but may be adopted by the Island Council of any island and brought into force by Proclamation in the Cook Islands Gazette. Passed the twentieth day of July, one thousand nine hundred and three. S. Savage, Clerk to the Council. W. E. Gudgeon, President. [Assented to by the Governor on the 2nd September, 1903.]

No. 43. Sir,— Aitutaki, Cook Islands, 10th August, 1903. From the delay in the approval of the Sale of Liquor Ordinance passed by the Island Council of Rarotonga, I presume that the Government of New Zealand sees reason to object to the principles of the said Ordinance. I have therefore the honour to submit for your consideration an alternative scheme by which the present miserable system may be superseded. The regulations that now govern the sale of spirituous liquor date from 1891, and are briefly as follows: There are no restrictions on the sale of liquor to Europeans other than this, that the liquor must be drawn from the Government bond, As for the Native inhabitants, the law of 1891 legalised the traffic so far as they were concerned, and this state of affairs continued up to the year 1898, when the system was exposed during the inquiry held by Sir James Prendergast, and from that date the Arikis refused to sign permits or allow their names to be signed by others, with the result that the Natives ceased to draw liquor directly from the bond; but there can be little doubt that they still obtain spirits from the foreign inhabitants —namely, the Chinese and others. That any effort on the part of the Government would put a stop to the drunkenness that may exist in Rarotonga is an idea that cannot be entertained for a moment, for the Natives do not depend upon imported liquor but manufacture intoxicating drinks from the orange, pineapple,

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and banana, This is almost invariably done in remote valleys, and Sunday is the day chosen for the orgie. Numbers of men are punished for this offence, but the punishment does not deter the offenders from brewing more beer whenever opportunity offers, and the mission influence in such cases is nil. Personally, 1 fail to see any difference between the drunkenness caused by orange-beer and that which is the result of imported liquor. It appears to me to be one and the same offence, but there are people who think otherwise, and ascribe the drinking to the imported liquor. That an effort should be made to stop the illicit sale of imported spirits to Maoris is beyond question, but the bush-beer drinking could only be prevented by an expensive police system that is beyond our means. The consumption of imported liquor may be limited and controlled, either by a licensed hotel under the restrictions imposed by the Sale of Liquor Ordinance or by the following regulation. First, that the sole right to import spirituous liquor shall devolve upon the local Government, and that a heavy penalty shall be imposed upon any private person breaking this rule; second, that the local Government shall sell the liquor so imported at a price which will render it impossible for sly-grog sellers to make a profit thereon, say, 6s. 6d. per bottle; third, that the local Government shall build an hotel for the accommodation of travellers at a cost of not exceeding £2,000, and may place the hotel in the hands of a reliable person for the sale of liquor only; fourth, the local Government may give the hotel rent-free to the aforesaid reliable person, who shall undertake to provide accommodation for tourists and visitors, and sell on behalf of the Government the liquor imported by them at the prices previously lixed. I would submit for your consideration that the only question of importance is the hotel-accom-modation for travellers. If a license could be given there would be no necessity for the Government to undertake the building, for it would not be difficult in such case to find men who would do this ; but if it be decided that there shall not be a license, then the local administration must put up the building. I have, &c, W. E. Gudgeon, Hon. C. H. Mills, Minister for the Cook Islands. Resident Commissioner.

No. 44. Sir, Harris Street, Wellington, New Zealand, 10th August, 1903. We beg most respectfulty to draw your attention to the unsatisfactory shipping arrangements in connection with produce coming from the Cook Islands. We are, as you are aware, doing our best to develop a steady trade, but at present we are labouring under a very great disadvantage owing to the delay in receiving shipments. For your information, we may mention that, although the " Taviuni " arrived at Auckland on Thursday last, the fruit brought by her will not reach Wellington until about Tuesday next, or nearly a week after arriving at the northern port. The cases are transhipped at Auckland into a steamer coming south, and apart from the delay this causes, they naturally receive a considerable amount of rough handling, which does not conduce to effect a satisfactory sale of the fruit when it reaches the Wellington market. The Cook Islands are now part of New Zealand, and we respectfully submit that some special consideration should be given to produce coming from there. The Union Steamship Company send the steamers which bring fruit from Fiji, from Auckland to Wellington, and there is therefore no transhipment no extra handling, and very little delay —the very opposite to the case with fruit from the Cook Islands —and we are therefore at a great disadvantage as compared with Auckland merchants. Knowing that you are taking a personal interest in the development of the Cook Island trade, we deem it our duty to mention the present unsatisfactory shipping arrangements. Trusting that this matter will receive your favourable consideration. We have, &c, C. A. Gbiffiths and Co. The Hon. C. H. Mills, Commissioner of Customs, Wellington.

No. 45. Sik, — Minister's Office, Trade and Customs, Wellington, 11th August, 1903. In reply to your communication of the 10th instant, re produce coming from the Cook Islands, I have to say that I shall be very pleased to hear from you at any time on matters affecting the trade and welfare of the Islands, should any information come to your notice. I quite realise the disadvantage you labour under, and will see what can be done to improve matters. Yours, &c, Messrs. C. A. Griffiths and Co., Harris Street, Wellington. C. H. Mills.

No. 44,

No. 46. Sir, — Minister's Office, Trade and Customs, Wellington, 11th August, 1903. Mr. Vile, M.H.R., has the following question on the Order Paper: " Mr. Vile to ask the Commissioner of Trade and Customs if he will move in the direction of inducing the Union Steamship Company to make Wellington the port of call for the Cook and Society Islands trade? " Will you kindly give me your views on this subject? 3—A. 3.

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I have also been informed that there is a great deal of delay between the time of the arrival at Auckland of fruit from the Cook Islands and the time of its reaching Wellington. It has been pointed out that, while the " Taviuui " arrived at Auckland on Thursday last the fruit brought by her will not reach Wellington until to-day. The cases in being transhipped at Auckland into the steamers coming south receive a considerable amount of rough handling, much to the detriment of the fruit. Are there any means of obviating this, as it places the fruit from the Cook Islands in a much worse position than that which is brought from Fiji? You will understand that 1 am anxious to do whatever is possible to improve the commerce between the Islands and New Zealand. Yours, &c, C. H. Mills. The Manager, Union Steamship Company (Limited), Wellington.

No. 47. Sir, Matai-moana, New Plymouth, 17th August, 1903. I have the honour to state that Uea, the Native teacher at Alofi, Niue Island, is very desirous that his adopted hoy shall be educated at an English school, with a view to his becoming a teacher on the island. I have arranged with the authorities of St. Stephen's Native School, Parnell, Auckland, that they will take the boy and teach him in the usual thorough manner in which they turn out the Maori boys at that institution. I now write to ask you to grant the boy a passage by the " Countess of Ranfurly " from Niue to Auckland. I need scarcely point out to you the advantage it is if the younger generation of Niue become proficient in the English language, for the time will assuredly come when English will be the language spoken there. It is, moreover, very desirable that a closer connection with New Zealand should be cultivated, seeing that the island is governed from here, and that an endeavour should be made to break down the antagonistic feeling the Natives have against this country, a feeling, I may say, that has grown up since I left there, owing to that unfortunate provision as to the Rarotonga Council, and I submit that Government should do all in its power to remove that feeling, towards which the education of some of the young people in New Zealand will largely tend. I have, dec, S. Pbkcy Smith, L-.ite Government Resident, Nine. The Hon. the Minister of Marine, Wellington.

No. 48. Cook and other Islands Administration, Wellington, Sir,-— 21st August, 1903. Your letter of the 17th instant, addressed to the Hon. the Minister of Marine, has been referred to me, as lam in charge of the Islands. I quite agree with you as to the desirability of getting some of the lads of the Islands properly educated, and I have written to Captain Worsley, instructing him to bring the boy you refer to with him when he next comes from Niue, and see that he is taken to St. Stephen's School, at Parnell. I am glad to say that, since visiting the Islands with the parliamentary party, I have been able to remove some of the prejudice in Niue by arranging that all the correspondence from there shall come to me direct instead of through Rarotonga, and we intend to deal with the matter of the Rarotonga Council very soon. The Right Hon. the Premier has just received a letter from Togia, King of Niue, who expresses his satisfaction at being annexed to this colony. He says, "It is very good that my kingdom is not to be connected with Rarotonga. Let New Zealand and Niue be one kingdom." There are several important matters in connection with the Islands that I have been anxious to deal with, but the pressure of parliamentary business has prevented my giving them the necessary attention through Cabinet. Yours, &c, S. Percy Smith, Esq., Matai-moana, New Plymouth. C. H. Mills.

No. 47.

No. 49. Cook and other Islands Administration, Wellington, 26th August, 1903. Memorandum for the Hon. the Postmaster-General. No. 12. I have made application to the Audit Department and others to see if I could obtain the services of an Auditor to go down to the Cook Islands to audit the accounts, but have been unable to get a suitable man. Will you kindly give permission for one of the officers of the Postal Department to proceed to Rarotonga as soon as the "Countess of Ranfurly " leaves Auckland for that port, and possibly to Niue as well. It is estimated that the officer will be away between five and six weeks. A sum "of £40 will be allowed him for his expenses. C. H. Mills. Mr. Gray.—Can you arrange this?— J. G. W. 14/9/ 03. Hon. the P. M.-G.— This has been arranged.—W. Gray. 14/9/03. Hon. Mr. Mills.— J. G. W. 16/9/03.

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No. 50. Cook and other Islands Administration, Wellington, S "V - 26th August, 1903. Referring to your letter No. 23, of the sth June last, on the subject of fees charged Niue No. 19. Natives emigrating to Tonga and elsewhere, I have to inform you that' the Law Officers advise that if the fees were imposed by the Niue Council by Ordinance duly enacted they would be legal, but not otherwise. If, therefore, it is still considered necessary that the fees should be continued, you had better get the Council to pass an Ordinance for the purpose, though I think 10s. rather high. I l lilve , Ac, The Resident Agent, Niue. C. H. Mills.

No. 51. Cook and other Islands Administration, Wellington, Sir,— 28th August, 1903. tn reply to your letter No. 17, of the 6th May, I now return the draft Order in Council No. 18. for the adoption of section 50 of " The Native Land Claims Adjustment and Laws Amendment Act, 1901," which has been revised by the Law Officers, with the request that you will make the modifications you think sufficient and return it. I enclose copy of the Gazette of the 12th December, 1901, containing the regulations made under the Act referred to, to be modified as suggested, and copy of the Act, though I assume you have it already in your possession. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 52. Cook and other Islands Administration, Wellington, Sir,-- 31st August, 1903. Memorandum for Mr. H. Cornwall, Accountant's Branch, General Post Office, Wellington. No. 49. You are hereby commissioned to proceed to Rarotonga and Niue to audit the official accounts of the Cook and other Islands Administration there, and you are authorised to inspect all Government books and papers to which you may require access in carrying out this work. C. H. Mills, Minister in Charge Cook and other Islands Administration.

No. 53. Cook and other Islands Administration, Wellington, 31st August, 1903. I have appointed Mr. H. Cornwall, an experienced auditor in the Postal Department No. 52. here, to proceed to Rarotonga and Niue for the purpose of auditing the accounts of both islands. Kindly instruct Mr. Blame and Mr. Herd to render him every assistance in going through the accounts, so that he will not be delayed any longer than is necessary. I need hardly add that I feel sure you will do everything you can to make his visit to your island a pleasant one. 1 have, &c, Colonel W. E. Gudgeon, Resident Commissioner, Rarotonga. C. H. Mills.

No. 54. Cook and other Islands Administration, Wellington, Sir,— Ist September, 1903. I have to inform you that it is my intention to introduce shortly a Niue Government Bill, which will amend the Cook and other Islands Government Act in so far that it will entirely separate the administration of Niue from Rarotonga. When the Bill is passed I will instruct you as to the necessary proceedings, and as to keeping proper accounts re duty paid on your goods in New Zealand and on Niue goods in Rarotonga. I have, &c, Colonel W. E. Gudgeon, Resident Commissioner, Rarotonga. C. H. Mills.

No. 55. Cook and other Islands Administration, Wellington, Sir,— Ist September, 1903. In further reference to 3'our letter of the sth June, I do not care for the idea of charging Nos. 19 & these fees of 4s. and 10s. when Natives leare the island, as it does not seem to be in harmony with 50. the laws and customs of this colony. At the same time I must leave it to your judgment as to whether the practice should be continued for the present, as you must understand better than I can whether it is really necessary or not. If the ancient law you refer to which precludes women leaving the island is still in force it should be repealed, as under no circumstances should a man's wife be detained against her will when her husband is leaving, I have, <fee, C. F. Maxwell, Esq., Resident Agent, Niue, C. H. Mills,

19

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No. 56. Sib,— Aitutaki, Ist September, 1903. I have the honour to acknowledge the receipt of your letter No. 46, of the 15th July, enclosing the following warrants of appointment: Mr. John Thomas Large, its Resident Agent for the Island of Mangaia; Mr J. C. Cameron, as Resident Agent for the Island of Aitutaki. These warrants have been handed to the two gentlemen above named, but I have the honour to poinl out that Mr. Large's name is John Thompson, not Thomas, Large. Mr. Cameron arrived here by the last trip of the " Taviuni," and is now receiving practical instruction in his duties. He is a very practical man, and will make an excellent officer. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 36.

No. 57. Cook and other Islands Administration, Wellington, Sir,— Ist September, 1903. Enclosed I forward Ordinance No. 3, passed by the Island Council of Rarotonga, to regulate the erection and repair of dividing-fences on lands in the occupation of Europeans, which has been assented to by His Excellency the Governor. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mii.i.s.

No. 41.

No. 58. Union Steamship Company of New Zealand (Limited), Wellington, Sir,— Ist September, 1903. In reply to your letter of the 11th ultimo, I have the honour to inform you that our present service from Auckland to Rarotonga and Tahiti provides for departures from the firstnamed port every four weeks, and the voyage, from time of departure from, Auckland till the completion of the discharge of cargo at that port on return, occupies so long that if Wellington were made a port of call for the steamer the time lost by the detour would materially affect the present regular sailings for the Islands; and, apart from the fact that we are tied down by our contract with the Government of Tahiti to a four-weekly service, any irregularity in departures would be detrimental to the best interests of the fruit producers and dealers, as the Rarotonga steamer, under such conditions, would every now and then clash with either the Tongan or Fijian steamer, thus flooding the markets, and as a natural consequence depreciating the value of the fruit. It is true that for two or three months in the year, while the " Taviuni " has been employed in the running, she has reached Auckland on Wednesdays, but the time-table running has been framed to suit the " Ovalau," a slower steamer, which ordinarily reaches Auckland on Friday, and thus makes a close connection with our steamer which leaves there for the south on Saturday, and as the " Ovalau " will probably be required to resume the Rarotonga running, the delay in transhipment at Auckland, to which you refer, is unlikely to recur. The matter, however, will have the careful consideration of my company, and your recommendation will have full attention. It may be worth while mentioning that we are giving special attention to the eastern Pacific trade, and that by the establishment of an agency at Rarotonga we are getting into closer touch with the producers, the general effect being that the imports from Rarotonga, as compared with those from other South Sea groups, are increasing. I have, &c, W. A. Kennedy, Manager. The Hon. the Commissioner of Trade and Customs, Wellington.

No. 46.

No. 59. (Urgent.) Department of Lands and Survey, Wellington, 7th September, 1903. Memorandum for the Hon. C. H Mills, Commissioner of Trade and Customs. Mr. 11. D. M. Hnszard, District Surveyor. Mb. Haszard, a District Surveyor on the staff of the Assistant Surveyor-General at Auckland, and who has been some twenty-three years in the Government service, lias just been granted three months' leave to recruit his health, which lias been very much shattered in consequence of a bad attack of blood-poisoning accidentally contracted whilst assisting to carry a patient suffering from that complaint a short distance. I shall be much obliged if you could kindly see your way to allow Mr. Haszard to be a passenger on the " Countess of Ranfurly " during her coming trip to the Islands, as the sea-trip is expected to materially benefit him, and Mr. Haszard deserves well of the Government for his good service. T. Y. Duncan, Minister of Lands,

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No. 60. Union Steamship Company of New Zealand, Sir,— Wellington, Bth September, 1903. Referring to our conversation of a few days ago regarding moorings at Mangaia, &c, I have been looking into this matter, and I think that so far as Mangaia is concerned it is possible the moorings you suggest would be of some service to us, but it is hardly likely they would be of much use to us at Niue, as we do not call there. Before definitelj communicating with my head office on the subject of the conveyance of the moorings to the islands I should be pleased if you could give me some indication of the measurements and weight that they would run into. Yours, &c, ' W. A. Kennedy, Manager. Hon. C. H. Mills, Minister of Customs, Wellington.

Nos. 5 & 17.

No. 61. (Telegram.) Wellington, Bth September, 1903. The Minister of Lands has informed me that you are unwell, and would like to go to the Cook Islands in the schooner " Countess of Ranfurly." I will arrange for your passage accordingly. Are you willing to take your instruments with you and lay off some roads on Niue Island? If so, I will tell Mr. Maxwell, the Resident Agent there, to allow you whatever remuneration he thinks reasonable. Please reply at once by memo, if proposal satisfactory. Steamer will probably leave on Friday, 11th. H. D. M. Haszard, Esq., District Surveyor, Auckland. C. H. Mills.

No. 59

No. 62. (Telegram.) Thames, Bth September, 1903. In reply to your wire, shall be glad to oarry out proposed surveys Niue Island. H. D. Haszard, Hon. C. H. Mills, Wellington. District Surveyor.

No. 61

No. 63. Cook and other Islands Administration, Wellington, Sir,— Bth September, 1903. Mr. H. D. Haszard, District Surveyor at Thames, has been granted three months' leave of absence to recruit, his health, which has been very much impaired through an attack of bloodpoisoning. He wishes to go down to the Islands for a change, and 1 have arranged that he shall have a passage on the " Countess of llanfurly." I enclose a copy of a telegram I have sent him and a copy of his reply, from which you will see that I have arranged to utilise his services while at Niue. Directly he is able to do so, you had better get Mr. Haszard to undertake the most urgent surveys on the island, so thai he may be finished by the time that he will have to leave, although, if necessary, I can get his leave extended for a short time. He will draw his salary here, but I leave it to you to allow him what you consider a fair and reasonable sum for the work he performs for you, paying the amount out of the island revenue. I have, &c, C, F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 59,

Enclosures (See Nos. 61 and 62).

No. 64. Cook and other Islands Administration, Wellington, Sir,— Bth September, 1903. I have to acknowledge the receipt of your letter of the 13th July, covering a statement of receipts and expenditure of Niue Island revenue for the quarter ending June, 1903. I have noted what you say with regard to the payment of the official salaries during that quarter; also your remarks with reference to the Customs dvities. I enclose herewith a copy of a letter to Colonel Gudgeon on this matter, dated the Ist instant, No. 82, so that you may know what has been done. I will advise you in detail subsequently when the Bill is passed, as I intend that Niue shall receive its own revenue, irrespective of whether it is paid in Niue, New Zealand, or Rarotonga. You should have included the amount received from the sale of Niue stamps, as it is part of the revenue of the island. I will obtain from the Postmaster-General a statement showing what has been realised from the sale of the stamps in New Zealand, and have the amount paid into the Niue Island Account at the Bank of New Zealand, Auckland. Yours, &0., C. F. Maxwell, Esq., Resident Agent, Niue. C, H. Mills.

No. 31.

Enclosure (See No. 54).

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No. 65. Government Insurance Department, Wellington, 9th September, 1903. Hon. C. H. Mills, Minister of Customs, Parliamentary Buildings. Repayment of £0,000 by Annual Instalments covering Principal and Interest. RkfbbrimG to our conversation regarding the above matter, the annual instalments required to repay £6,000, together with 2 per cent, compound interest, in fifteen or twenty years are £466 19s. Id. and .£-366 18s. 10d. respectively, and at 3 per. cent compound interest for the same periods, £502 12s. and £403 ss. lid. I enclose schedules showing the. amount of principal and interest contained i-n each annual payment for the above rates and terms, and the amount of principal outstanding after each payment. J. H. Richaedson, Commissioner.

No. 66. SIR, " Countess of Ranfurly," Auckland, 10th September, 1903. lie moorings at Niue, I would suggest —1 anchor, 8 cwt. ex stock ; 1 anchor, 2 cwt. ex stock; 30 fathoms 1 in. cable (stud); 45 fathoms \\ in. cable; 1 large mooring-shackle; 1 mooringbuoy, about 70 cubic feet. The last-named would be to float the ljin. cable in, say, 12 fathoms water; but Captain Post or Captain Bollans could give the best advice re buoy. [Sketch.] (Indicating a drawing not printable.) The above is to give a very rough idea of what I would propose, subject to Captain Post's or Captain Bollans's opinion of moorings for a 200- to 300-ton vessel. These moorings will undoubtedly be of great benefit to the trade at Niue. I have, &c, P. A. Worslet, R.N.R., Master. Hon. C. H. Mills, Minister of Customs, <fee.

Nos. 17 & 32.

No. 67. (Telegram.) 12th September, 1903. Xo instructions have been issued to merchants in Auckland that they should pay duty there. Any goods they ship can be sent under bond to Niue, as I consider all money from that source should be island revenue. I have instructed Collector in Auckland to that effect. C. F. Maxwell, c/o Captain Worsley, Auckland. C. H. Mills.

No. '26

No. 68. Cook and other Islands Administration, Wellington, Sir,— 19th September, 1903. In further reply to your letter of the 2nd July, I have to say that the position re duty is us follows : There is nothing to prevent any merchant forwarding whatever goods may be required from Auckland under bond to Niue, and you will collect the duty there. If they forward the goods duty-paid in New Zealand no drawback can be allowed, but I am going to see what arrangements, if any, can be made, so that a credit account for Niue can be kept, to be adjusted at the end of each year. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 20,

No. 69. Sir, — Rarotonga, 21st September, 1903. I have the honour to acknowledge the receipt of your letters Nos. 84 and 85, forwarding the following Ordinances, which have been assented to by His Excellency the Governor: — Ordinance No. ■'! of the Rarotonga Council, to regulate the erection and repair of dividingfences. Ordinance No. 11 of the Federal Council, extending the provisions of the Traders' License Act, section 2, to Manihiki, Rakahanga, and Pukapuka. Ordinance No. 12, Federal Council, to regulate and insure the attendance of Native children at the various schools within the Islands. I have, &c, W. E. Gudgeon, Resident Commissioner, The Hon. C, H. Mills, Minister for the Islands, Wellington,

No. 57.

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No. 70. Cook and other Islands Administration, Hiit,- Wellington, 21st September, 1903. Since my return from the Islands I have been considering what would be the best plan to adopt with regard to obtaining a contribution from the Islands towards the cost of the schooner "Countess of Ranfurly." I realise that for the first few years it would be difficult for the Islands to make any large payments, and I have therefore had a table of annual instalments prepared (copy enclosed), taking the cost of the vessel at £6,000 (leaving out any additional sums expended on repairs, &c), and calculating the payments on a 3-per-cent. basis, compound interest, for periods of fifteen and twenty years. You will notice that under the fifteen-years scale the Islands Administration would pay £502 12s. per annum, and under the twenty-years scale, £403 ss. lid., and I think the Islands Administration would be able to manage one of these and keep the insurance going (some £300). When at Niue I mentioned the matter to Mr. Maxwell, and he agreed that that island ought to contribute a portion of the amount. I see no reason why the Administration of Niue should not take certain shares in the vessel and pay so much of the annual liability. Kindly give the matter full consideration, and let me know as early as possible what you think should be done, so that I can submit the proposal to Cabinet. I have, &c, Colonel W. E. Gudgeon, Resident Commissioner, Rarotonga. C. 11. Mills.

No. 71. Cook and other Islands Administration, Wellington, Sir,- 21st September, 1903. Since my return from the Islands I have been considering what would be the best plan to adopt with regard to obtaining a contribution from the Islands towards the cost of the schooner " Countess of Ranfurly." I realise that during the first few years it would be difficult for the Islands to make any large payments, and I have therefore had a table of annual instalments prepared (copy enclosed), taking the cost of the vessel at £6,000 (leaving out any additional sums expended on repairs, &c), and calculating the payments on a 3-per-cent. basis, compound interest. for periods of fifteen and twenty years. You will notice that under the fifteen-years scale the Islands Administration would pay £502 12s. per annum, and under the twenty-years scale, £403 ss. lid. When we were conversing on the subject at Niue you said you thought it would be only right for Nine to contribute towards the purchase of the schooner. 1 think so, too, and am of opinion that Niue should take a certain number of shares in her. Later on, if we can arrange for another steam service from Wellington to Rarotonga and the Cook Islands, the schooner might bring all your produce and that from the other Northern Islands as far as Penrhyn down to Aitutaki, to meet the mail-steamer there, and if the present service from Auckland to Tahiti via Rarotonga were continued it would mean a fortnightly steamer for the Islands. Please let me know as early as possible what you think on the subject. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 72. Sm, — Rarotonga, 21st September, 1903. As the Government schooner is now a regular trader to and from Niue, I have the honour to request that you will apportion the amount of subsidy that Niue should pay in aid of the boat. I think that the island in question can afford £200 per annum, and I should be glad if you will instruct Mr. Maxwell to that effect. I have, &c, W. E. Gudgeon. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 1

No. 73. Cook and other Islands Administration, Wellington, Sir,— 21st September, 1903. I want you to let me know by next mail what is your opinion as to the prospects of trade for a monthly steam service, leaving Wellington for Rarotonga, calling at each of the Cook Islands for any produce they may have, and then back again via Rarotonga to Wellington. This, in conjunction with the present monthly service from Auckland to the Islands, would mean a service every fortnight. I have been thinking, also, that the " Countess of Ranfurly " might collect the produce from Penrhyn, Manihiki, Niue, &c, and bring it down to Aitutaki, so as to further assist the trade. Kindly collect all the information you can, and send me full particulars as to whether you think there would be sufficient trade to warrant the company undertaking such :i service, and, if it were initiated, what would be the prospects of success in the near future, if not immediately. If such a service could be arranged it would give a great impetus to the tourist traffic, and materially assist in developing the Islands trade at a moil rapid rate than has been the case hitherto. | have &c Colonel W. R. Gudgeon, Resident Commissioner, Rrrotoaga. 'c. H. Miit-B.

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No. 74. Sir,- - ftarotonga, 22nd September, 1903. 1 have the honour to inform you that Mr. J. C. Cameron arrived in Aitutaki about the 29th August, and took up the work of his office on the Ist September. Mr. Cameron's is one of the best appointments that lias been made here, for not only has he liad extensive knowledge of the New Zealand Maoris, but he is a linguist and a good business man. He has, moreover, the tact that enables a man to enter into the feelings of foreign races, and govern them in accordance with their ideas, while teaching them European methods. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 56.

No. 75. Sir, — Rarotonga, 22nd September, 1903. 1 have the honour to inform you that the schooner " Countess " has been chartered by Messrs. Grice, Sumner, and Co., of Melbourne, at the rate of .£5 per diem to bring stores and workmen, &c, from and to Maiden Island. This charter takes effect during the summer months only, when there is nothing doing in the Cook Group, and it will, moreover, fit in with the work at Penrhyn and enable us to carry cargoes to the last-named islands. The charter, therefore, means at least ,£2OO in the pocket of the local Government. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 76. Km, — Rarotonga, 22nd September, 1903. 1 have the honour to report that I returned to Rarotonga yesterday after a very successful sitting of the Laud Titles Court at Aitutaki. During the two months that I was absent surveys of the roads and mission properties were made at Atiu and Mauke, and at Aitutaki no less than 107 blocks of land were surveyed, and 102 blocks heard in Court and the title determined. The survey fees for work done amount to £88 10s., and the Court fees to £76 10s. for orders of title in addition to hearing-fees and other incidental work of the Court, which will amount to £40. I submit that the work has been satisfactory in every respect, and most popular among the Maoris, who have now at least sixty claims before the Court to be heard. I have, &c, W. E. Gudgeon, Chief Judge Land Titles Court. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 77. Cook and other Islands Administration, Wellington, Sm,~ 22nd September, 1903. Yours of the Ist instant came duly to hand, and the matter referred to has received most careful consideration. I shall feel obliged if you will let me know whether you think your company would be prepared within a reasonable time to enter into another contract to carry on a service, with a suitable boat of good average speed, from Wellington to Rarotonga and the other islands of the Cook Group, returning to Wellington again via Rarotonga. This, together with the present service from Auckland to Rarotonga and Tahiti, would mean a fortnightly boat for the Cook Islands. I am writing to Colonel Gudgeon on this subject, and would like to talk it over with you and hear what you think of the prospect of a reasonable trade being worked up through such a service. Yours, &c, C. H. Mills. The Manager, Union Steamship Company of New Zealand (Limited), Wellington.

No. 58]

No. 78. Sir, — Rarotonga, 22nd September, 1903. 1 have the honour to inform you that I have, under the provisions of the Cook and other Islands Act and the Order in Council establishing the Land Titles Court, acquired two pieces of land at Aitutaki for the purposes of the Government, viz. :- Section 1., Arutanga, adjoining the wharf, rather more than J acre, as a site for wharfsheds. For this I have paid £28, much to the satisfaction of the owners. There are in this piece, besides the land required for Government use, five small blocks which I propose to lease for fifty years at a rent of £1 10s. per lot. Section 111., Arutanga, the site of the Courthouse, for which the absurd rent of £4 10s. per annum has hitherto been paid as ground-rent. This land I have acquired for £13 10s., the house thereon being the property of the Island Council. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

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No. 79. Cook and other Islands Administration, Wellington, Sir,— 29th September, 1903. As the Cook and other Islands Act Amendment Bill (copy enclosed), which 1 expect will be No. 20, passed shortly, will repeal all the Ordinances passed by the Federal Council in Rarotonga in so far as they affect Niue, it will be necessarj , for your Island Council to immediately pass an Ac( to take the place of the repealed Ordinances to the extent to which the Council desires the present provisions to be continued. There is the Traders' License Act, and (here may be others that you deem of sufficient importance. This Bill takes the place of the Niue Government Bill which I mentioned in a previous letter. 1 have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 80. Cook and other Islands Administration, Wellington, Sir,— 29th September, 1903. Referring to the petition dated the 16th April from a number of traders in Rarotonga, No. 10 forwarded through you, asking that certain duties be imposed on various fruits exported from Tahiti and other islands to New Zealand, I regret to inform you that nothing can be done in the matter until a new tariff is introduced in the House, when the application will be fully considered by the Government. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 81. Sir,— Rarotonga, 6th October, 1903. I have the honour to forward herewith the following revised Ordinances of the Island Council of Niue: — No. 1. To provide for the establishment of an Island Council. No. 2. To raise and administer revenue within the island. No. 3. To provide for Magistrates and police. No. 4. Regulating marriage and divorce. No. 5. Restricting labour-emigration to outside islands. No. 6. Restricting the importation of spirituous liquor. No. 7. Restricting the carrying of firearms. No. 8. In restriction of credit. No. 9. To secure a site for Government Buildings at Alofi. No. 10. To validate acts of Government done under early statutes. No. 11. To provide for a weekly half-holiday. These Ordinances have now been revised and passed in accordance with the corrections made by the Solicitor-General and, I trust, may be found to be correct. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

Enclosures. Ordinance No. I.—Niue Island Council Constitution Ordinance, 1902. Niue Island Council. Whereas it is expedient to define and amend the constitution of the Niue Island Council, and to regulate its procedure: Be it therefore enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is "The Niue Island Council Constitution Ordinance, 1902." 2. The Niue Island Council (hereinafter referred to as " the Council ") shall hold office until the twenty-fifth day of August, one thousand nine hundred and four, but thereafter the members shall be elected to serve for a term of three years. 3. The Patuiki of Niue shall be President of the Council, and preside at all meetings thereof, and it shall be his duty to preserve order and regulate the proceedings. He shall sign on behalf of the Council all laws, regulations, or orders made by the Council, and as President shall summon the Council to meet at any time and place after receiving a request to that effect from the Government Resident Agent. He shall dismiss the Council at the close of each session. In the case of the illness or deatli of the Patuiki, the Council may be summoned by the Government Resident Agent, and may forthwith, if deemed expedient, proceed to elect another President. 4. In the absence of the President, the members present in Council (being a quorum) may select one of their number to act for and on behalf of the President, and his duties and powers for the time being shall be the same as those of the President. 5. The quorum of members necessary to constitute the Council shall be three-fourths of the total number of members. 4— A. 3.

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G. A member of the Council shall cease to hold office under the following circumstances: — (1.) Upon the effluxion of time for which he was elected. (2.) If he breaks any of the laws enacted by the Council. (3.) If he takes money for supporting any matter before the Council. (4.) If the inhabitants of the village which he represents prefer a request to the President that he be removed. After the Council has heard the member concerned, should it agree that the complaint is sustained, such member, with the approval of the Government Resident Agent, shall cease to hold office. (5.) If he absents himself from any Council meeting without leave, unless in the case of illness. 7. Upon a vacancy occurring as above, the President of the Council shall give notice to the village concerned to select another member, who shall hold office until the expiry of the term of office of the Council then next ensuing. 8. All laws and regulations, &c, shall be introduced to the Council through the President, and upon being approved by a majority of the Council (being a quorum) such laws, &c, shall become the laws of Niue upon being assented to by the Governor of New Zealand (hereinafter called " the Governor "). 9. In the case of any difference of opinion amongst the members of the Council, or any question that may come before them for consideration, the decision of the majority of members shall be final; each individual member in such case shall, upon being asked by the President, record his vote " Aye " or " Nay," and such vote shall be entered in the minutes of Council. Such decision so arrived at shall be binding on all members of Council and shall be considered as final. 10. No law or Ordinance passed by the Council shall become effective unless approved by the Government Resident Agent, nor until the same shall have received the assent of the Governor. Upon such assent being given such law or Ordinance, &c, shall become the law of Niue until amended or repealed, as from the date of such assent. 11. It shall be competent for the Council, upon resolution of the whole number, to repeal or amend any law or Ordinance previously made; but such repeal or amendment shall only be made with the concurrence of the whole Council and that of the Government Resident Agent, and shall not take effect until assented to by the Governor. 12. It shall be competent for the Council to appoint or remove committees, to be composed of members of the Council or others, to carry out any portion of the functions of Government in any part of the Island which the Council may decide on, and, further, to appoint or remove any officer for the same objects, and to assign them such duties and such remuneration by way of salary or fees as may seem to the Council right and just. Such appointments or removals shall be made by resolution of the Council, but shall only be effective on the approval of the Government Resident Agent. 13. The Council shall have the power to raise a revenue for the purpose of carrying on the Government of the Island in such manner, and at such times, and for such particular purposes as shall be approved by the Governor. 14. The Council shall meet at Alofi in manner heretofore stated, and shall continue sitting each day until dismissed : but it may, on the resolution of the majority, adjourn its meetings from time to time and place to place. 15. All Ordinances, &c, made by the Council shall be written in English and Niue, and in the case of any difficulty of interpretation the English version shall be authoritative. 16. The President of the Council, whilst holding the office of Patuiki, shall be paid a salary of flft} r pounds (£5O) per annum, and each member of the Council at the rate of three pounds (£3) per annum, to be paid half-yearly as the case may be. But any future President shall be paid for his services at a salary to be decided on by the Council when the occasion arises. The foregoing " Niue Island Council Constitution Ordinance, 1902," was passed by the Niue Island Council at Alofi this 25th day of August, 1903. Togia, Approved, President of Niue Island Council. C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.f] Ordinance No. 2. —Revenue of Niue Ordinance, 1903. Niue Island Council. Whereas it is necessary that a revenue be raised for the proper government of Niue Island: Now, therefore, be it enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is " The Revenue of Niue Ordinance, 1903." 2. The revenue of Niue shall consist of all Customs duties, fees, fines, or other moneys which are payable under enactments of the Niue Island Council (hereinafter called " the Council "). 3." All revenue so raised or levied shall be paid to the Government Resident Agent at Alofi, and shall be placed by him in an account to be called the " Revenue of Niue Account." 4. All moneys payable out of such " Revenue Account " shall be authorised from time to time by the Council and be paid by the Government Resident Agent. An accurate annual statement of the revenues and disbursements shall be laid before the Council by the Government Resident Agent at its first meeting after the thirty-first of March, in each year. 5. The Governor of New Zealand may appoint some person to audit the Revenue Account as provided by section fourteen of " The Cook and other Islands Government Act, 1901," and a certified copy of such report shall be furnished to the Council as soon as possible after the audit,

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0. After the passing of this Ordinance all fees and fine;-;, of whatsoever nature, which have heretofore been'paid to any individual as fees, fines, &c, for the breaches of the law, or for any privilege granted, &c, shall cease, unless the same aiv previously authorised by the Council. 7. All fees, fines, Customs duties, or other moneys due to the Revenue Account under any enactment of the Council shall be recoverable before the Government Resident Agent in his judicial capacity. 8. Be it further enacted by the Council, that from and after a date to be published by the Government Resident Agent, there shall be one port of entry for Niue Island, and such port shall be Alofi. 9. All vessels arriving from places outside of Niue Island shall first enter at Alofi, and, subject to the discretion of the Government Resident Agent, shall take their departure therefrom and be cleared from the same place. 10. Masters of vessels arriving in Niue are required to deliver to the Government Resident Agent any mails or other postal matte_r for the inhabitants of Niue, and they are further required to give the Government Resident Agent at least six hours' notice of their departures, stating the port for which they are bound, failing which their clearance will be withheld. 11. The masters of all vessels clearing at Alofi are required to take mails for the PostmasterGeneral of the ports to which they are bound, and to deliver such mails to the proper authorities at such ports, failing which their clearances will be withheld. 12. Masters of vessels arriving at Niue and traders doing business ai Niue are required, on demand, to produce to the Government Resident Agent all necessary documents bearing on the nature and value of imports arriving at Alofi or other place, and in default thereof shall be liable to a fine not exceeding ten pounds (£10). 13. The Government Resident Agent or Collector of Customs shall at all times have (lie light of entry and search into any vessel or building, or boxes, packages, or luggage of any description in which it is suspected there are dutiable goods which have not paid duty. 14. Any person evading payment of Customs duty by removing luggage, &c, before the same has been examined by the Customs officer shall be liable upon conviction to a fine not exceeding ten pounds (£10), or in default of payment thereof, to three months' hard labour. The foregoing "Revenue of Niue Ordinance, 1903,'' was passed by the Niue Island Council at Alofi, this 25th day of August, 1903. Togia, President of Niue Island Council. Approved, C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.i]

Ordinance No. .">.-" Emigration Ordinance, 1903." Niue Island Council. Whereas many able-bodied Natives of Niue are in the habit of emigrating to other islands of the Pacific for long periods, and leave their families destitute or insufficiently provided for: And whereas the Island of Niue sustains serious injury through the depletion of the best of its working population : It is considered expedient to impose restrictions upon emigration, with the object of restraining the practice to within reasonable limits: Now, therefore, be it enacted by the Niue Island Council as follows : — 1. The Short Title of this Ordinance is " The Niue Island Emigration Ordinance, 1903." Emigration of the Niue people to other places will only be allowed under the following conditions : — 2. No person under the age of sixteen years shall be capable of entering into any engagement with any white person to serve as a labourer for any term outside of Niue. 3. All persons desirous of hiring themselves as labourers outside of Niue shall appear before the Government Resident Agent and produce evidence of their age, of their free will in the matter, of their physical capacity (of which the Government Resident Agent shall be judge), that they are unmarried, or have made sufficient provision for their wives and families, and shall state if they understand the terms of agreement under which they hire themselves, and shall answer such questions as may be put to them by the Government Resident Agent. i. No person, being a Native of Niue, shall hire himself for work in any place outside of Niue for a longer term than one year. 5. All agreements between employers and employees, being labourers engaged for work outside of Niue, shall be submitted to the Government Resident Agent and be subject to his approval. Labourers shall sign such agreement in the presence of the Government Resident Agent after the same has been first explained to them, and an assurance given b}* such labourers that they understand the terms of the agreement, of which a copy shall be filed in the office of the Government Resident Agent. 6. Every Native of Niue emigrating to any other part, not being under agreement of hire, shall produce to the Government Resident Agent a certificate from the Native Magistrate or policeman of his village that he had made sufficient provision for those that are dependent on him who remain behind. Failing such certificate, the emigrant shall not be entitled to v pass under the hand of the Government Resident Agent enabling him to proceed to his destination, which the Government Agent is hereby authorised to issue to each emigrant. 7. There shall be paid by any Native person leaving Niue for other islands a fee of four shillings each for the pass issued as above. 8. Any person making false statements in reference to anything required of him shall be refused a pass, and shall be liable to a term of labour with hard work on the Island of Niue for not exceeding one month.

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9. Any master of a vessel currying emigrants from the Island of Niue, or receiving such on board his vessel for the purpose of emigrating, unless such emigrant has a puss as above, shall be liable to a fine of one'pound (£1) in each and every case, recoverable before the Court held by the Government Resident Agent sitting in the Island of Niue. The foregoing " Niue Island Emigration Ordinance, 1903," was passed by the Niue Island Council on the 25th day of August, 1903. Togia, President of Niue Island Council. Approved, C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.!]

Ordinance No. 6." Importation of Spirituous Liquor Ordinance, 1903." Niue Island Council. Whereas it is essential to the welfare of the inhabitants of Niue Island that the importation of spirituous liquors should be controlled by the Niue Island Government: And whereas it is in the interests of all the inhabitants of Niue that drunkenness should be prevented and the evils attendant on the abuse of intoxicating liquor minimised: Be it therefore enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is " The Niue Island Importation of Spirituous Liquor Ordinance, 1903." 2. From and after the date on which this Ordinance shall become law all wines, beer, or spirits imported into the Island of Niue shall be placed in the custody of the Collector of Customs, and after duty has been paid thereon shall be issued by him to the owners thereof, on the written order of the Government Resident Agent, in such quantities as the latter shall deem sufficient. 3. It shall be illegal for any Native of Niue or of any other island of the Pacific to import into Niue any spirituous liquor of any kind whatsoever. All such liquors as are landed in Niue may be seized by the Collector of Customs or his appointees, and thereupon shall be destroyed. Any Native as above so offending shall be liable to a fine of not more than twenty pounds (£2O), in addition to the loss of the liquor, or may in lieu thereof be condemned to hard labour for any term not exceeding six months. 4. It shall be illegal for any person to supply to any Native of Niue, or Native of other islands of the Pacific located in Niue, any spirituous liquor of any kind whatsoever, either by way of sale, barter, or gift. Any person so doing, or permitting any Native as above to obtain in any manner any such spirituous liquor, either on shore or on board vessels within three miles of the coast, shall, on conviction before the Government Resident Agent in his judicial capacity, be liable to a fine of not more than twenty pounds (£2O) for each and every such offence; provided that in cases of medical necessity a limited quantity of spirituous liquor may be supplied to any Native on the written order of the Government Resident Agent. 5. If any person be accused of drunkenness, or indulges in intoxicating liquor to such an extent that bis health and business is injuriously affected thereby, the Government Resident Agent may, upon complaint being made to him, inquire into the circumstances, and make an order under his hand prohibiting such person from obtaining further supplies of liquor. 6. Any person bringing liquor on shore from any vessel without complying with the provisions of section two hereof shall be liable, on conviction, to a fine not exceeding twenty pounds (£2O), and such liquor shall be seized by the police and confiscated. 7. All offences under this Ordinance may be punished by imprisonment with hard labour in default of payment of fine. 8. The Government Resident Agent may order a portion of any penalty recovered under this Ordinance to be disposed of as the interests of the Niue Island Government may demand. The foregoing " Niue Island Importation of Spirituous Liquor Ordinance, 1903," was passed by the Niue Island Council at Alofi, Niue, this 25th day of August, 1903. Togia, President of Niue Island Council. Approved, C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.]

Ordinance No. 7.—"Niue Island Arms Ordinance, 1903." Niue Island Council. Whereas certain persons are in the habit of carrying concealed firearms, which are not used for the purpose of shooting or killing birds or other game, and by this means intimidate the peaceful subjects of His Majesty King Edward the Seventh who reside upon the Island of Niue: Now, therefore, be it enacted by the Niue Island Council as follows :— 1. The Short Title of this Ordinance is " The Niue Islands Arms Ordinance, 1903." 2. From and after the date when this Ordinance shall become law any individuals carrying on their persons any rifle, revolver, or pistol, fowling-pieces excepted, without the written permission of the Government Resident Agent, shall bo liable to a fine not exceeding five pounds (£5), or in default thereof may be sentenced to three months' hard labour. 3. Any person selling or giving to Natives of Niue, or half-castes living as Natives, any rifled arms, or ammunition for the same, shall be liable to a fine not exceeding ten pounds (£10), or in default thereof may be sentenced to six months' hard labour.

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4. All stich arms and ammunition may be seized by the police on the written order of the Government Resident Agent or of a Native Magistrate and confiscated. The foregoing Nine Island Arms Ordinance was passed by the Niue Island Council, at Alofi, this 25th day of August, 190-' i. TOGIA, President of Niue Island Council. Approved, C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, Gth February, 1904.J]

Ordinance No. 8. — -Nrou Island Private Debt Okdinance, 1903. Niue island Council. Whereas the Native inhabitants of Niue Island have been allowed in the past to contract debts of such magnitude that it will be difficult or impossible for them to liquidate: And whereas the moral effect of such practice is extremely injurious to the welfare of the said Natives, and it is to their interests that this sj-stem of trading should cease forthwith: Now, therefore, be it enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is " The Niue Island Private Debt Ordinance, 1903." 2. A debt incurred after the coining into operation of this Ordinance by any Native of Niue, or half-caste living as a Native, shall not be recoverable by any process of law known in the Island of Niue. 3. Contracts entered into by any chiefs or patus, for or on behalf of any family or section of people, may be enforced by either of the parties to the contract. Provided always thai such contract shall have been entered into ami signed in the presence of the Government Besident Agent, or in the presence of some person duly appointed by him for that purpose, and shall have been approved by the Government Resident Agent. 4. Debts contracted previous to the passing of this Ordinance may be sued for in the Court of the Government Resident Agent (hereinafter called "the Court"). 5. When the aforesaid Court shall have granted a debt certificate to any suitor under section four of this Ordinance, it shall be the duty of the Native Magistrate of the district in which the debtor lives to inquire into the circumstances of the debtor, and recommend to the Court a reasonable arrangement for the payment of the debt. 6. The Court shall make such order for payment as shall seem just and reasonable, and in default of payment may order the debtor to be imprisoned with hard labour for any period not exceeding one calendar month for each default. 7. All moneys recovered under this Ordinance shall be paid in the manner directed by the Court. The foregoing Private Debt Ordinance was passed by the Niue Island Council at Alofi, this 25th day of August, 1903. TOGIA, Approved, President of Niue Island Council. C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.]

Ordinance No. 9. — Niue Island Site for Government Buildings Ordinance, 1903. Niue Island Council. Whereas by the ancient law of Niue no land could be alienated by sale to foreigners: And whereas it is expedient and necessary for the establishment of the Government of Niue Island, and for convenience in administering the said Government, that land should be acquired as a site for public and other buildings: And whereas a suitable section of land has been selected in the Village of Alofi: And whereas the said section of land has been purchased from the acknowledged owners thereof for the sum of fifty pounds (£5O), which sum was collected by public subscription by the Native people of Niue and paid by them to the said owners, who thereupon executed a deed of gift of the said section of land to His Majesty King Edward the Seventh: Be it therefore enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is "The.Niue Island Site for Public Buildings Ordinance, 1903." 2. The parcel of land at Alofi, Niue, known by the name of " Lialagi," the boundaries whereof are marked on the ground, and described in a certain " deed of cession " dated the twentyeighth day of February, one thousand nine hundred and two, by virtue whereof Ikimata, Kilitaia, and Tuhega, admitted owners of the said land, do cede, convey, and assure, absolutely and without reserve, all their rights, title, estate, and interest in the said land to His Majesty King Edward the Seventh: Now, therefore, the said Niue Island Council doth hereby ratify and confirm the cession of the said parcel of land to His Majesty the King, for himself, his heirs and assigns, for ever. The foregoing " Niue Island Site for Government Buildings Ordinance, 1903," was passed by the Niue Island Council, at Alofi, on the 25th day of August, 1903. Togia, Approved, President of Niue Island Council. C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.]

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Ordinance No. 10. —Validation Ordinance, 1903. Nine Island Council. Whebkas at a meeting of the Patuiki, Chiefs, and people of the Island of Niue, at Alofi, on the twenty-second day of October, one thousand nine hundred and one, a Council called the " Council of Niue " was elected, consisting of eleven members, with the Patuiki Togia as President: And whereas the said Council, with the approval of the Government Resident Agent, did then proceed to make certain Acts or Ordinances for the government of and maintenance of order in the Island of Niue: And whereas the several Ordinances have been acted upon and put in force by the several officers appointed under the aforesaid Ordinances: And whereas certain sums of money, being part of the public revenue of Niue, have been paid as salaries to the aforesaid officers in the belief that the system of government as then established was legal, and within the powers of the aforesaid Council: And whereas by reason of section four of "The Cook and other Islands Government Act Amendment Act, 1902," the proceedings of the said Council are ultra vires, and it is expedient to validate the same as hereinafter provided : Now, therefore, be it enacted by the Niue Island Council as follows: — 1. The Short Title of this Ordinance is " The Niue Island Ordinances Validation Ordinance, 1903." 2. All proceedings taken under the aforesaid Ordinances are hereby validated, and all disbursements made for the purpose of carrying on the Government of the island are hereby authorised as if the same had been made by the authority and with the sanction of the Niue Island Council, as duly constituted in accordance with " The Cook and other Islands Government Act, 1901," and its amendment. 3. All officers acting under the provisions of the said Ordinances are by this Ordinance protected and indemnified from any action which might result in consequence of the said proceedings. The foregoing " Niue Island Ordinances Validation Ordinance, 1903," was passed by the Niue Island Council this 25th day of August, 1903. TOGIA, - Approved, I , resident of Niue Island Council. C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.1]

Ordinance No. 11.—Niue Island Weekly Half-holiday Ordinance, 1903. Niue Island Council. Whebeas it is expedient that half a day in each week should be set apart by law as a public halfholiday : And whereas Wednesday afternoon appears to lie most suitable and convenient for this purpose : Be it therefore enacted by the Niue Island Council as follows: 1. The Short Title of this Ordinance is "The Niue Island Weekly Half-holiday Ordinance, 1903." 2. From and after this Ordinance shall have received the assent of the Governor of New Zealand, Wednesday afternoon in each week shall be regarded as a staiutory half-holiday in the Island of Niue. 3. No trading establishment of any kind whatsoever shall remain open after 1 p.m. on Wednesday afternoon aforesaid, or transact its usual business of buying or selling. Save and CNcept when vessels are in port, when the persons interested may receive goods, and ship produce, &c, and do whatever may be necessary to insure speedy despatch for the said vessel or vessels. 4. Any infringement of the provisions of this Ordinance shall render the offender liable to a fine not exceeding two pounds (£2). The foregoing "Niue Island Weekly Half-holiday Ordinance, 1903," was passed by the Niue Island Council this 25th day of August, 1903. Togia, Approved, President of Niue Island Council. C. F. Maxwell, Government Resident Agent, Niue. [Assented to by the Governor, 6th February, 1904.]

No. 82. g IR _ Niue, 6th October, 1903. I have the honour to inform you that Mr. H. D. M. Haszard arrived here on the 20th ultimo, and at once proceeded to initiate the survey of the island, which he will carry on upon his return from Rarotonga, probably about the end of this mouth. I need hardly say that I am very pleased at his visit, and consider it most fortunate that the of such an experienced officer are available. 1 have assured him of my readiness to do 'everything possible to facilitate his work. I have arranged with Mr. Haszard to pay him 15s. per diem as personal expenses during the time he is employed. This is, I think, a reasonable remuneration under the circumstances, and the work will be executed at less cost than would be possible otherwise. I have requested him to traverse the roads and lay off landing-places, and to obtain an approximate idea of the configuration of the island. To survey the coast-line accurately would prove a difficult and tedious operation, owing to the density of the undergrowth and the excessively rocky and broken nature of the country near the shore. When these roads and landings are properly defined, I will embody them in an Ordinance of the Nine Council so that they may be dedicated to public purposes.

No. 68

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I have several gangs of Natives vigorously at work improving the grades and rendering the roads suitable for wheeled traffic. This involves the use of large quantities of explosives; without dynamite the work would be tedious and costly. I have, &c, C. F. Maxwell, Government Agent, Nine. The Hon. the Minister of Trade and Customs, Wellington.

No. 83. Union Steamship Company of New Zealand (Limited), Sir,-- Wellington, 6th October, 1903. 1 have to acknowledge receipt of your letter of the 22nd ultimo, a copy of which I had forwarded to my head office, as the matter of entering into a new contract to carry on a service from Wellington to Rarotonga alternate with that from Auckland is one which will require very careful consideration from the directors. You will doubtless receive a communication direct from my general manager on the subject. Yours, &c, W. A. Kennedy, Manager. Hon. C. H. Mills, Minister of Customs, <fee, Wellington.

No. 77

No. 84. Sir,— Niue, 10th October, 1903. I have the honour to submit to you a statement of the Niue revenue for the quarter ended the 30th September, 1903. The total receipts from all sources, including balance brought forward from last quarter, amount to £1,055 6s. 10d. ; the expenditure totals £196 18s. lid. ; leaving a balance in hand of £858 7s. lid. The cash statement accompanying this includes cash in Bank of New Zealand, Post-Office Savings-Bank, &c, amounting to .£2,052 l()s. Bd., less expenditure and cheques drawn amounting to £784 11s. 6|d., leaving a balance of £1,267 19s. Hd. If the £500 placed at fixed deposit be added, it shows a total of £1,767 19s. lid. to the credit of the island as on the Ist instant. This does not, however, represent the whole. The Auckland Sale of Stamps Account to hand only shows to December last. There is a considerable sum still due to the Niue Account as proceeds of stamps sold in Auckland since then, and cash remitted from here to the Chief Postmaster, Auckland, which was derived from the sale of Niue stamps. As Ido not possess the figures, I cannot include them in this statement. Mr. Cornwall will submit to you a balance-sheet to the 19th September, the date of his audit. I make up the accounts quarterly, so send you this in the usual course. I am vigorously proceeding with the formation of new roads and the improvement of old ones. There is very much to be done, and I have already expended the £100 which you mentioned might be spent on roads. However, with ample funds in hand, I feel justified in proceeding with work of such importance to the island. lam now paying 2s. per diem to labourers, and give the women tobacco for assisting. The work is arduous and tedious, but, I am well satisfied with the progress made. I hope to send you by the " Countess " a measurement of the roads made and the average cost per chain. I have, &c, C. F. Maxwell, Resident Agent, Niue. The Hon. the Minister of Trade and Customs, Wellington.

Enclosures. Statement of Ntue Island Revenue for Quarter ended 30th September, 1903. 1903. Receipts. £ s. rl. 1903. Expenditure. £ s d. July 1. To Balance .. .. .. 365 4 3 By Stationery .. .. .. 016 9 Customs duties.. .. .. 547 7 5 Allowance to police .. .. 119 0 Fines and fees.. .. .. 22 9 6 Cement .. .. 0 0 0 Shipping-fees .. .. .. 1 14 0 Advance to Captain Worsley .. 40 0 0 Trading licenses .. .. 24 0 0 Compensation for trees. &<•.' .. 111 0 Advance, Captain Worsley ■ ■ 40 0 0 Flagstaff . . 0 12 0 Emigrants' fees .. .. 4 4 0 Canoe-hire . . .. .. 016 0 Exchange on draft .. .. 0 7 8 Labour .. .. .1112 0 Proceeds sale of stamps.. .. 50 0 0 Horse-feed .. .. 4 10 Interpreter .. .. .. 015 0 Office-rent .. .. .. 3 10 0 Paint-oil .. .. . . 016 0 Postage .. .. .. 0 5 0 Derrick .. .. .. 17 0 Tools .. .. .. ..080 Refund of duty. . .. .. 714 10 Sundries "•" .. . . .. 013 0 Messenger .. . . ~ 0 6 0 Pay of Native constable.. . . 1 15 0 Provisions for labourers .. .. 10 0 Advance to Togia, Salary Account 5 0 0 Stores for Niue Government .. 211 10 Freight .. .. .. 9 5 6 Timber .. .. .. 0 5 0 196 18 11 Oct. 1. Cash in hand .. .. .. 858 7 11 £1,055 0 10 £l055~6~l(r C. F. Maxwell, 10th October, 1903. Collector of Customs, Niue,

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Niue Island Cash Account. 903. Receipts. £ s. d. Expenditure. £ s. d Oct. 1. Total receipts brought forward .. 1,055 610 Forward .. .. .. 196 18 11 Niue Island Account, Bank of New P. F. Colledge .. .. .. 1 10 0 Zealand, Auckland .. .. 700 0 0 Heather, Roberton, & Co. . . .. 7 6 0 Proceeds sale Niue stamps, C.P.M. 50 0 0 A. H. Nathan .. .. .. 916 8 Levers P.P. (Ltd.) draft for collection 129 11 10 Ross & Ansenne .. .. .. 6 011 Post-Office Savings-Bank balance .. 117 12 0 Kauri Timber Company .. .. 17 19 11 Wingate & Co. . . . . .. 44 6 0 Fixed Deposit, Bank of New Zealand .. 500 0 0 Exchange on Lever's Pacific Plantations draft .. .. .. .. 013 1J 784 11 6J Balance .. .. .. 1,267 19 H £2,052 10 8 £2,052 10 8 C. F. Maxwell, 10th October, 1903. Collector of Customs, Niue.

No. 85. Sir,— Niue, 10th October, 1903. In order to secure more regular and frequent communication between Niue and Auckland through the medium of the schooner " Countess of Ranfurly," I think this island should pay her a subsidy to enable the schooner to maintain a regular service. This subsidy (supplemented with the cargo and passengers she would obtain) I am confident would be sufficient to defray expenses and leave a margin of profit. I have the honour, therefore, respectfully to suggest that ,£lOO per annum be paid out of Niue revenue to the Schooner Department, and request you to be so good as to sanction this payment if you deem it expedient. The improved communication would be a great boon to Niue, and the vessel would eventually acquire almost the whole carrying-trade of this island. I have, «fee, C. F. Maxwell, Resident Government Agent, Niue. The Hon. the Minister of Trade and Customs, Wellington.

No. 72.

No. 86. Cook and other Islands Administration, Wellington, Sir,— 15th October, 1903. In response to a request sent by His Excellency the Governor with reference to having a boat-passage made through the reef at Tuapa, Admiral Fanshawe has stated that he will have the work carried out on the first favourable opportunity. I enclose a copy of the Admiral's letter to Lord Ranfurly. I have written to Togia informing him of the arrangement made. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 87. Cook and other Islands Administration, Wellington, Sir,— 16th October, 1903. I am in receipt of your letter of the 22nd September (No. 37, N.Z., 1903), stating that the " Countess of Ranfurly " had been chartered to Messrs. Grice, Sumner, and Co. for the summer months at the rate of .£5 per diem. The arrangement appears to be a very satisfactory one, and I think you have been fortunate in finding such profitable employment for the vessel during the slack season. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 75.

No. 88. Sir,— Niue, 16th October, 1903. I have the honour to acknowledge the receipt of your letter No. 63, of the 30th July last, referring to the importation of liquor into Niue. I beg to state that an Ordinance (No. 6) dealing with this subject has already been passed by the Niue Island Council, and forwarded to the Resident Commissioner for transmission to His Excellency the Governor. The provisions of this Ordinance, I think, will confer the necessary power to control the traffic in spirituous liquor in this island. If this Ordinance is assented to by the Governor no Niue Native will be able to obtain liquor. I have, &c., C. F. Maxwell, Government Agent, Niue. The Hon. the Minister of Trade and Customs, Wellington,

No. 40.

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No. 89. Cook and other Islands Administration, Wellington, Sir,— 16th October, 1903. I have received your letter of the 22nd September stating that you had acquired No. 78. Sections I and 111, Arutanga, Aitutaki, the first as a site for wharf-sheds, and the second as the site on which the present Courthouse is erected. I think you have made vei , } , satisfactory purchases, and I quite approve of your proposal to lease the land not required at a rent of ,£1 10s. per lot per annum for fifty years. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 90. Sir, - Rarotonga, Cook Islands, 19th October, 1903. I have the honour to acknowledge the receipt of your letter No. 101, of the 21st ultimo, No. 71. and in reply thereto it is necessary to advert to the position of these Islands when the cost of the schooner was guaranteed by the Government of New Zealand. At that period we had a Customs tariff suitable for revenue purposes, and the whole of the duties were collected within the Group; we were therefore in a position to pay off this liability at the rate of £1,000 per annum. When, however, these Islands were included within the boundaries of New Zealand, one-half of the Customs revenue was collected in that colony, and at the same time our expenses were increased by reason of other islands being included within this local Government. The result is that we are not now in a position to do anything towards paying off the cost of the schooner, nor can we afford to pay the insurance thereon, and I may say that I did not expect to be called upon to pay off the cost. To pay off at the rate of £500 per annum would mean, with working-expenses, a deficit of at least £1,200 per annum, a sum that we could not afford, for there are many things of pressing importance that must be done, for they are of more importance than the schooner. Under these circumstances, 1 think it better to face the position at once, and therefore recommend that the schooner be sold in March next when we have completed our engagements. We can then arrange to pay off the loss by annual instalments. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister administering the Islands, Wellington.

No. 91. Sir,- Rarotonga, 19th October, 1903. In reply to your letter No. 100, of the 21st September, 1 have the honour to report that No. 73, I have consulted the largest shippers of produce from these Islands, and they are of opinion that it would be premature to establish a second line of steamers to these Islands under existing conditions, and that it is doubtful whether a second line will be required for the next ten years unless preferential duties are imposed in favour of our bananas. I have the honour to inform you that I indorse this opinion. The present service, although in great measure restricting our fruit to the Port of Auckland, nevertheless meets the requirements of the Group, and the steamer " Taviuni " now in use, takes all the produce of the Islands, and even in the orange season when the Tahitian oranges anticipate our shipments, we have seldom cargo left behind. The " Taviuni " can take 1,200 tons of cargo. From the foregoing paragraph it will be clear to you that if the " Taviuni " can take all of the cargo we can provide, then if there were two lines of steamers they would naturally have to divide our cargo between them, and the only method by which the produce could be indefinitely produced in excess of present returns is in the banana line, and that will not be done unless some protection be afforded to the industry. I am of opinion that within eighteen months after our bananas are protected we should be in a position to keep two boats employed, but at the present time one boat is sufficient. Under any circumstances most of our trade will be done through the Port of Auckland —that is, the whole of the copra and perhaps one-half of the oranges. It is with the bananas that we hope to trade with the South Island. Wellington has of late been so bad a market for our produce that we only regard that town as a distributing port. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 92. g IR) _ Rarotonga, 20th October, 1903. With reference to the paragraph in your letter No. 100, suggesting that the schooner No. 73 " Countess " should collect the produce of Penrhyn and Manihiki and bring it to Aitutaki, I have the honour to point out that this is done by the schooners owned by the traders Harries and Dexter, and there is no chance of the " Countess " obtaining freight. Niue we are working for all she is worth, and this is a much better paying trade than that of the Northern Islands, as it means a full ship from Rarotonga to New Zealand. I have, &c, W. E. Gudgeon, Resident Commissioner, The Hon. C. H. Mills, Minister for the Islands, Wellington, 5—A, 3.

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No. 93. Cook and other Islands Administration, Wellington, Sir,— 20th October, 1903. I have the honour to enclose the Ordinance to license and regulate the use of bicycles on the Island of Aitutaki, duly assented to fay His Excellency the Governor. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills. r

No. 2.

No. 94. Cook and other Islands Administration, Wellington, Sib,— 23rd October, 1903. I have to acknowledge the receipt of your letter of the 10th August with reference to the Sale of Liquor Ordinance, passed by the Island Council of Rarotonga but not approved by the New Zealand Government, and submitting an alternative scheme for consideration. The question of the liquor traffic in the island has been partially discussed, and I think the result will be that a sum will be placed on the estimates for the erection of a suitable accommo-dation-house, which will probably be jslacod under the supervision of a Government officer. Nothing , has been definitely decided yet, but as the question is under consideration the proposal you have submitted will be carefully looked into, and I need not say anything further by way of reply at present. In your letter of the 13th November, 1902, forwarding the Sale of Liquor Ordinance, you say " At present we are acting under an old law by which every foreigner and Native is entitled to three bottles of spirits per week, provided," &c. I assume the law is the Liquor Law of 1890, which came into force in January, 1891, but it contained no provision as to the quantity that might be supplied, and I cannot find any law fixing the three-bottle limit. Will you please say when, and under what enactment, if any, the limitation came into force. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 43.

No. 95. Sir, Rarotonga, 26tlTOctober, 1903. I have the honour to enclose you herewith a communication to the Hon. C. H. Mills which I shall be glad if you will forward, together with any comments you may feel it necessary to make. I have, &0., Lieut.-Colonel W. E. Gudgeon, C.M.G., Resident Commissioner. C. Kohn.

Enclosure. Sir,— Rarotonga, 26th October, 1903. In view of the recent discussion in the House upon the liquor question in the Cook Islands, I have the honour to address you on the subject. The site upon which my present residence stands, and for which I have a lease from Queen Makea for twenty-five (25) years, with eighteen (18) years unexpired, and the option of renewal for a further twenty-five (25) years, is, I believe, by far the best position in the island for a hotel, and in this opinion Colonel Gudgeon, in conversation with me, fully concurs. It is centrally situated in the middle of the business portion of the settlement, on the main road, with no obstruction between it and the sea, and is within two minutes' walk of the Government offices and the Union Steamship Company's wharf. Upon the Federal Council passing the local Ordinance on the liquor question (vide Parliamentary Paper A.-3, 1903, page 18) I had, pending that Ordinance being approved by the Governor in Council, submitted a proposal to the Resident Commissioner, of which he approved. Brief!} - , I had tentatively accepted an offer from Messrs. L. D. Nathan and Co., of Auckland, by which, in exchange for the ten-years concession contained in the Ordinance, they had agreed to erect the necessary buildings and furnish a hotel complete, with billiard-room and all the requirements up to date, submitting the plans for the approval of the Government, and when completed to place the establishment under the management of a manager to be approved of by the Resident Commissioner, and to carry out in their entirety the requirements of the Ordinance. Messrs. L. D. Nathan and Co.'s connections with the hotels in the Lake Districts of New Zealand and with Messrs. Huddart, Parker, and Co.'s line of steamships gives them an intimate knowledge of the requirements of the tourist traffic, and affords them facilities for advertising the suitability of this Group as a health resort. At present tourists are precluded from visiting Rarotonga for lack of accommodation ; but if their offer were accepted Messrs. Nathan would no doubt take full advantage of all the facilities at their disposal for inducing tourist traffic to Rarotonga, very much to the benefit of the island. This offer, which would have involved the expenditure of a considerable sum by Messrs. Nathan, would on the other hand have made it unnecessary for the Government of New Zealand to place an amount on the estimates for the purpose of purchasing a site, erecting the necessary buildings and furnishing them; and as the local Ordinance gives the Government practically full control of the traffic and protects the Natives very fully, I feel that T am justified in saying that it is the general wish of the inhabitants, botli European and Native, that the Ordinance may yet be approved by the Governor in Council, in which case Messrs. Nathan's offer, which has not been withdrawn but is still in the hands of the Resident Commissioner, will, I have no doubt, receive due consideration.

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If, on the other hand, the New Zealand Government decides, as is proposed, that this Government shall erect its own premises, I have the honour to offer them, through you, the site in question, which, as I say, is the best available site in Rarotonga. The area of the block is, approximately, an acre, which will give ample room for all the necessary conveniences for carrying on the business. The present dwelliughouse would, with some slight interior alterations, be suitable for the accommodation of visitors; and if it were thought advisable to erect the business portion of the hotel apart from the present buildings, retaining it for residential purposes (a plan which, in the case of a health resort, appears to have many advantages), the area will cover all the requirements. I am prepared to dispose of my lease of the property, and if you entertain the proposal shall be glad to furnish you with any further particulars you may desire. I have, &c, The Hon. C. H. Mills, C. Kohn. Minister in charge of the Cook Islands Administration. (Forwarded through the Resident Commissioner, Lieut.-Colonel W. E. Gudgeon, C.M.G.)

No. 96. Sin.,— Niue, 28th October, 1903. I have the honour to submit to you a statement showing the amount expended upon roadconstruction in Niue to the 24th instant, and the average cost per chain of the work. During the time I have resided here a large quantity of road-work has been executed by the Natives, for which they received some consideration in the slmpe of presents of food and tobacco, but no cash. 1 am now engaged in completing these roads with paid labour, as they were but roughly made by the people. The roads here are no doubt expensive to make, owing to the nature of the material, but once completed they will be serviceable for ever. I wish to render the present road round the island smooth and suitable for wheeled vehicles or bicycles. This will require time and money, as there is much stone to be removed. The working parties also require frequent inspection. As the road is completed I employ women to plant grass-roots upon it. I purpose obtaining some European grass-seed and having it sown on the roads, with the view of checking the rank growth common to the tropics. As road-construction is the most important work incidental to the development of this island, I feel justified in proceeding with it. Will you be so good as to instruct me as to the amount that I may spend monthly upon this object? I should, of course, in any case exercise the utmost circumspection to keep well within the resources of the revenue. I have, &c, C. F. Maxwell, Government Resident Agent. The Hon. Minister of Trade and Customs, Wellington.

Enclosure. Exi'isNDiTuiiK ojM Roads in Niue Island to 24th October, 1903. £ s. d. 28 chains new road (average cost per chain, £1 6s. Bd.; embanking and forming lift, wide) ... ... .. ... 37 7 0 ■"iO chains, Alofi-Liku Road (average cost per chain, 7s. 6d. ; widening to 12ft. and forming) ... ... ... ... 26 0 0 20 chains, Alofi Village Road (average cost per chain, £1 Is. ; cutting and forming to 16 ft.) ... ... ... ... 21 0 0 100 chains, Alofl-Tuapa Road (average cost per chain, £1 os. 2jd.; widening old road to 14 ft., removing rocks, and forming ... 101 2 0 £185 9 0 198 chains road: Total cost, £185 9s. ; average cost per chain, 18s. 9d. (nearly). C. F. Maxwell, Government Resident Agent, Niue.

No. 97. Cook and other Islands Administration, Wellington, Sir,— 30th October, 1903. I am in receipt of your letter of the 6th instant, No. 100/N, and am pleased to hear that Mr. Haszard has arranged to commence the survey work at Niue on his return from Rarotonga. I am quite satisfied also with the arrangement you have made with him as to his expenses during the time he is employed on the work. I have no doubt you will try and get the most important work done first, in case of Mr. Haszard having to return to New Zealand any earlier than he anticipated. lam glad to hear that you have a number of Natives at work improving the roads; it will be a great improvement to have the roads fit for wheeled traffic. 1 have, &c, C, F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 82

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No. 98. Cook and other Islands Administration, Wellington, Sir,— 30th October, 1903. Referring to your memo, of the "2nd April last, and my reply of the 11th July, relative to the necessity for laying moorings at Aitutaki and Rarotonga, 1 have to say that in answer to my inquiries as to the probable cost of this work I have received the attached letter. I am informed by Captain Blackburne, of the Marine Department, that a 2 in. stud cablechain weighs about 1.95 cwt. per fathom, and a 2J in. stud cable-chain about 3.12 cwt. per fathom; so that for 60 fathoms the former would cost £108, and the latter £210 125., irrespective of anchor, &c, and freight. 1 shall be glad to hear whether you think anything further should be done under the circumstances at present. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills. P.S. —I wished to make provision for Mangaia also, but I notice you express the opinion that the depth of water is too great to admit of anything being done there.

Nos. 5 & 28.

No. 99. Cook and other Islands Administration, Wellington, Sir, 30th October, 1903. Referring to your letter of the Ist June last, and my reply of the 14th July, on the subject of moorings for Alofi roadstead, I have to say that in reply to my inquiries as to the probable cost of the work I have received the attached letter. I am informed by Captain Blackburne, of the Marine Department, that a 2 in. stud cablechain weighs about 1.95 cwt. per fathom, and a 2£ in. stud cable-chain weighs about 3.12 cwt. per fathom; so that for 60 fathoms the former would cost £108, and the latter £210 125., irrespective of anchor, &c, and freight. I shall be glad to hear whether you think anything further should be done under the circumstances at present. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills. P.S. —On thinking the matter over after I left the island, it occurred to me that even if we had moorings laid down and a gale came up from the westward a vessel would still have to leave her moorings and go round to the lee side of the island, so that I am not sure that we should gain as much advantage as might be expected from such a large expenditure. Is there not a suitable landing-place on the other side of the island, at Mutalau, which could be used when the roads are completed 1

Nos. 17 & 32.

No. 100. Cook and other Islands Administration, Wellington, Sir,— 31st October, 1903. I have to inform you that His Excellency the Governor has been requested to approach Admiral Fanshawe with a view to having a boat-passage formed through the reef at Mangaia and also at Atiu. The commander of the vessel will no doubt consult you as to the precise locality in which the passages should be formed. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 101. Cook and other Islands Administration, Wellington, Sir,— 31st October, 1903. During the debate in the Legislative Council on the Cook and other Islands Act Amendment Bill it was stated by one of the members that some of the lepers at Morokai had told him, in reply to his inquiry, that they had not always enough to eat, the supplies supposed to be sent from the village coming rather irregularly. I understood that provisions were sent every week. Will you kindly have arrangements made so that these poor unfortunate people will receive their ordinary food regularly, and, in addition, a small quantity of biscuits, tobacco, and castor-oil at stated intervals. I understand they expressed a wish for these when Dr. Mason visited them. I have, &c, The Resident Commissioner, Rarotonga. C H. Mills.

No. 102. Cook and other Islands Administration, Wellington, Sir,— 31st October, 1903. I have your letter of the 10th instant suggesting that £100 should be paid out of the Niue Island revenue to the Schooner Department as an annual subsidy towards the "Countess of Ranfurly." lam quite convinced that Niue should contribute something towards the maintenance of the vessel, irrespective of what she receives from the island in the way of freights, passages, Sat., and I am of opinion that it would be in the interests of all the Islands to fall in with the scheme of purchasing the schooner about which I have already written you. As soon as I hare received Colonel Gudgeon's reply from Rarotonga I will communicate with you again. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 85,

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No. 103. Cook and other Islands Administration, Wellington, Sir, — 2nd November, 1903. I have to acknowledge the receipt of your letter of the 10th October, with a statement of (lie revenue and expenditure of Niue for the quarter ending the 30th September, 11)03. The result shown is most satisfactory. I am glad to hear you are making good progress with the road-work, and 1 think if the revenue continues to come in satisfactorily you might spend another £200 on the work. I approve of the payment you are making to the labourers, 2s. a day, with the gift of tobacco to the women for the assistance they give. I shall be glad to receive your promised statement of the measurement of the roads and the average cost per chain. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No.

No. 104. Sir, — Rarotonga, Cook Islands, 15th November, 1903. I have the honour to forward herewith a copy of a report from Mr. Large as to his reception at Mangaia by the people who are interested in the continuation of the late unsatisfactory administration of the law in that island. I also forward copies of my reply to Mr. Large and of my letter to Daniela and Miringatangi. I may say that I have anticipated that the two men last mentioned would attempt to create trouble, as they are well known to object to the presence of Europeans at Mangaia, and, above all, to the appointment of a European officer. For the characters of these men 1 would refer you to the Cook Island papers of 1890, A.-3, pages 3 and 9, and to A.-3a, pages 8, 11, and 12. As to the statement made by Miriugatangi, that the Governor and Parliament of the Cook Islands had appointed him, it is not true. I had to choose which Judge of several I would keep, and chose Miringatangi, though Makea had grave doubts as to his fitness. This is a case in which we should reinstate Ataa, who is really the leading chief of the island, and a man of very high character. For he it was who suffered by reason of his leasing lands to Europeans, a thing he had an undoubted right to do. I would suggest for your consideration the advisability of abolishing the Arikis' Courts as soon as possible, and of making each Resident Agent ex officio Magistrate of the island with powers similar to those held by the S.M.s of New Zealand, for until this is done there can be no protection for the small people of any island. It is, in my opinion, of the utmost importance that the administration of the law should be in the hands of Europeans. Since Daniela's last visit to New Zealand, he has suffered severely from a sense of his own importance, and nothing, I think, will cure him short of a severe reprimand from yourself or the Premier. I have, &c, Hon. C. H. Mills, Minister for the Islands. VV. E. Gudgeon.

Enclosures. Sib, — Mangaia, sth November, 1903. I have the honour to report my arrival here, and what has transpired since I came. The " Ngamaru " reached here on Tuesday morning, though wo sighted the island on the previous evening. Before I landed I received a note from Mr. Proctor, intimating that he had arranged that we should stay at John Trego's for the present, as he had been unable to find any suitable place for us. On landing, therefore, after the usual greetings to the people assembled on shore, we proceeded to the residence of the Ariki, where we were invited to stay until we could find a house to live in. As I thought it best to lose no time in presenting my credentials, 1 asked John Trego to send messages round the island convening a meeting at Oneroa for the following day, which he did. The meeting was held at the L.M.S. schoolhouse (kindly lent to me for that purpose by the Rev. Bond James) on the 3rd instant, and was attended by the Arikis John and No'oroa, the Judges and police of Ivirua and Tamarua, the police of Oneroa, and the Kavanas, Mata Mataiapos, members of the Council, and other leading men. Mr. James and the other Europeans of the island were also present at my invitation. The proceedings were opened with prayer by the missionary, as is usual in these Islands. I then proceeded with the business of the meeting by reading the notification in the Cook Island* Gazette, notifying my appointment as Chief Magistrate, &c, and my commission signed by His Excellency the Governor and the Hon. C. Mills I exhibited to the meeting. I then read your letter to the Arikis, chiefs, and people of Mangaia, and then gave them a sketch of my career, showing my long connection with and attachment to the Maori race, the work I had done in New Zealand, and the position I had attained there; also my subsequent appointment as Magistrate at Aitutaki, with the result that the good order and prosperity of that island was increased, and that I had now been selected by the Government of Now Zealand to improve the administration of the law and local Government of Mangaia, and was prepared to assist in the development of the island resources, and generally do my best to advance the interests of the people. I noticed that the attitude of the meeting was cold if not unfriendly towards me, and that no leading men were present to welcome me on my arrival. Daniela Metua was the first to speak. He said that they objected to my appointment to the island, as they had not been consulted in the matter, and no official intimation had been previously sent advising them of such an important step on the part of the Government. He said that the

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Natives were quite content to allow the island affairs to be carried on as they had been in the past. They wanted to stick to their old customs, and he would not allow me to take any part in the proceedings of the Island Council. I replied that Mangaia was now an integral part of the British Empire, attached along with the rest of the Cook Islands to New Zealand, and that the laws and institutions found to be necessary for the good of the people by the Government would be carried out here as in the other parts of the Empire, that European Governments did not consult the people as to the appointment of Magistrates and other officers; that they of necessity knew best whom to appoint to responsible positions; that I intended to carry out my magisterial duties at once, but I would leave the affairs of the Island Council in their hands for a time, till they came to a more reasonable mood in the matter. According to all accounts the administration of the law was so defective in Mangaia that it required seeing to at once, but other matters could stand over for the time being. Daniela said it appeared from the Gazette notice that all power in Mangaia was now vested in me, and that those formerl}- in authority were stripped of the same. I replied that this was not the case, all those holding office would still carry out their functions, with this difference: that their work would now be subject to my guidance and supervision. Tangi, a Kavana of Ivirua, said they would think the matter over, as the action of the Government had been a surprise to them. Oruru, Judge of Tamarua, was afraid that my action would prejudice their religion or church-government. To this I replied that the carrying-out of my duties would not in any way interfere with the practice of their religion, and if I did not conduct my work properly any one of them could bring my actions before the notice of the Government. On this the Rev. Mr. James said that lie was sure that the civil power in my hands would not clash with the religious interests of the island, and that if the Magistrate abused his powers any one could call for an investigation. Rima Tai lamented that the old style was passing away ; that the mana of the Maoris was giving way to that of the Europeans. Neria said that Mangaia was in a different position from that of New Zealand. The latter had been conquered by the Europeans, but Mangaia had only been conquered by the religion of Christ, and therefore they should conduct their own affairs. Several others got up and expressed their sentiments, generally hostile to the change. John Aiiki said nothing, neither did he mention the letter he had received from Pa Ariki, which would possibly have had a good effect on the meeting. The meeting dragged on for about two hours, with long intervals of silence between the various speeches. Daniela asked me not to close it, but to allow the Natives a chance of expressing their sentiments, which I did to the fullest extent, Daniela calling upon this one and that to come forward and express their objections, which were of the usual trivial character, mainly based on Maori prejudice. At length, when we were about to close the meeting, Miringatangi, who had not thought fit to attend before, came into tlie room and threw his cap down, which he said had been given to him by the Governor. He then proceeded to deliver a violent speech, denouncing the Government, and saying that he had been appointed Judge by the Parliament at Rarotonga and the Governor of New Zealand, that Gudgeon had no power to remove him, and that I should not carry out my functions of Magistrate, and, finally, called on the meeting to indorse his words by a show of hands in his favour. A majority of those present then held up their hands. To this I replied that I would not answer him, but would carry out my duties as instructed. I then asked the Rev. Mr. James to close the meeting with a prayer, which he did. After the close a considerable minority, including Ataa and other leading chiefs, came forward and shook hands with me in a very friendly way, and so closed this very disagreeable episode. What action Miringatangi may see fit to take in opposing me 1 do not know; he is evidently a fanatic, judging from the way he acted at the meeting, and he appears to have a considerable following here who resent his dismissal from office, but from all I hear he is quite unlit for the position. I have instructed the Oneroa police to bring any cases there may be before me at the Courthouse next Monday, and if Miringatangi interferes with the business of the Court I will fine him for contempt, after due warning, and if he persists and I find I am not able to carry on the business of the Court through his opposition I will then adjourn to some other place, after committing him for trial to the High Court, The police tell me that Miringatangi has the chief right to the land on which the Courthouse stands, but others say that the house belongs to the whole island. I have instructed the police that as Miringatangi has ceased to be Judge they are not to take any orders whatever from him; that if they aid and abet him or disobey me they will stand a chance of losing their office. I intend to go round the island shortly and hold Courts at Tamarua and Ivirua, and generally look into matters. As yet I have had no time to do so, as I have had to hunt about for a dwellingplace, and am still hunting. I have, <fee., Resident Agent, Mangaia. The Resident Commissioner, Cook and Northern Islands.

lv _ Rarotonga, 11th November, 1903. 1 have the honour to acknowledge the receipt of your letter of the sth instant, with reference to your reception at Mangaia. That both Daniela and Miringatangi should be hostile to you is only natural, for they have virtually run the island for some years in their own interests. As for the remark made by Daniela, to the effect that lie would not allow you to take part in the proceedings of the Council, please make him understand quietly thai I am most unwilling that you should take any part in the proceedings of a Council that has beeD in existence for the last

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eighteen months and as yet had done nothing to help the people of the island; that I merely appointed you to a seat in the Council in the hope that your experience might be of use to the members thereof, and aid them in reducing the island requirements into the legible form of local Ordinances. You will do well to direct the attention of the Council to the important fact thai no act of theirs can have the force of law until it has received the assent and approval of His Excellency the Governor, and that they cannot expect such approval unless their laws are clearly expressed in language that will prevent future misconception. As you know, Ido not care to see any interference in the working of the Island Council; I am therefore much pleased at the tone you adopted towards the people on this head. Miringatangi is suspended from all duties as an officer of the Government, and, if he wishes it, I will inquire into his behaviour, but in the meantime point out to him that he has assumed powers to which he had no right whatever when he expended money without authority during the visit of the Hon. Mr. Mills and the members of the New Zealand Parliament, and that by so doing lie has shown his unfitness to hold any office of trust under the Government. It will be as well that you should overlook many things in your management of these people that could not be allowed to pass in New Zealand, for you must remember that they are but halfcivilised, have always suffered more or less from swelled head, and are very badly advised by their leaders. I have, &c, W. E. Gudgeon, J. T. Large, Esq., Resident Agent, Mangaia. Resident Commissioner.

To Daniela and Miringatangi. I have received a report from Mr. Large, in which he informs me that you have received him in a most unfriendly manner. This I am very sorry to hear, because it is not the first lime that you have exhibited an unfriendly feeling towards the Europeans at Mangaia, and have tndeavoured to rule that island in your own interests. Let me ask you both to remember that it was your lawlessness that imposed a fine of $1,390 on the innocent people of Mangaia, a fine that would have been doubled had you not submitted. Understand that the Government of New Zealand cannot be frightened by big words, and will not even notice them. Their only anxiety is that the law shall be administered in a just and kindly spirit without favour or vindictiveness; above all, that it shall not be used as an engine of oppression, or to force trade into channels into which it would not otherwise run. I am not ignorant of the manner in which the raui has been used in Mangaia; it has been used to further the interests of a few Native traders, and to the detriment of others. There has not been a legal raui in Mangaia for the last four years, and this is a matter that may have to be inquired into. You know, and so also do I, that during the past three years more than a hundred men have left Mangaia rather than submit to the tj'ranny of Miringatangi. Ataa is the ancient and hereditary Kavana of Oneroa, and it is my intention to restore him to his old position, since he is known to the whole Group as honest and upright, and it is in such men that the Government should trust. I write these words to you in a friendly spirit, and it is for you to see that you give me no cause to visit you in my capacity of Judge of the High Court. From your friend, W. E. Gudgeon, Rarotonga, 13th November, 1903. Resident Commissioner.

No. 105. Sib,— Rarotonga, Cook Islands, 18th November, 1903. In reply to your letter No. 122, I have the honour to report that no quantity of liquor is mentioned in the liquor law of 1890, but the rule that has been observed since that date is to give not exceeding three bottles on presentation of a permit duly signed in accordance with the law. This rule has come to be regarded almost as part of the law, and probably has as much force as the arrangement of 1890, which was never adopted by the Federal Parliament, and for that reason is probably not a law in any sense. I have, <fee, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 94.

No. 106. Sir, — Rarotonga, Cook Islands, 18th November, 1903. In reply to your letter of the 31st ultimo, informing me that Admiral Fanshawe would be approached with the view of having boat-passages blown through the reefs at Mangaia and Atiu, I have the honour to point out that it would be well that the Admiral should know that this work could not be successfully undertaken until April next. The heavy northerly seas of the summer will, as a rule, prevent all work on the outer reef. 1 have, etc., W. E. Gudgeon, The Hon, C. H. Mills, Minister for the Islands, Resident Commissioner,

No. 100.

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No. 107. Sir, — Eastern Pacific, Rarotonga, 19th November, 1903. With reference to your letter No. 132, of the 30th October, I would suggest that the in. stud-link cable-chain be used in every case, and all estimates based on that fact; also that the cost of cable, anchor, and buoy be ascertained, in order that I may be enabled to place the necessary sum on next year's estimates for the Aitutaki moorings. I think we must be content with one thing at a time, and as the anchorage at Aitutaki is the worst, it will be well to attend to it first, and, as we must necessarily build officers' quarters and small Courthouse at Mangaia, there will be no money available for the moorings at Rarotonga. I have, &c, The Hon. C. H. Mills, Minister for the Islands. W. E. Gudgeon.

No. 99.

No. 108. Cook and other Islands Administration, Wellington, Sir,— 20th November, 1903. With reference to the formation of boat-passages through the reefs at Atiu and Mangaia, about which I wrote you recently, I now beg to enclose a copy of a letter, dated the 30th October, from Admiral Fanshawe to His Excellency the Governor, intimating his intention of having the work done next year. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 100,

Enclosure. My Lord,— " Royal Arthur," at Melbourne, 30th October, 1903. I have the honour to acknowledge the receipt of Your Excellency's letter No. 588/1903, of the 10th instant, with reference to the making of boat-passages through the reefs at Mangaia and Atiu Islands, dependencies of New Zealand, and to inform Your Excellency that I propose, if possible, to cause this work to be carried out nest year by one of the two ships attached to the New Zealand Division of the station, and also the boat-passage at Savage Island referred to in your letter No. 500 of the Ist September last. I have, &c, Arthur D. Fanshawe, Vice-Admiral and Commander-in-Chief. His Excellency the Right Honourable the Earl of Ranfurly, G.C.M.G., &c, Governor of New Zealand.

No. 109. Cook and other Islands Administration, Wellington, Sir,— 20th November, 1903. With reference to the formation of a boat-passage at Tuapa, about which I wrote you lately, I now beg to enclose a copy of a letter written by Admiral Fanshawe to His Excellency the Governor, in which he intimates his intention of having the work carried out next year. I have, &c, C. F. Maxwell, Esq., Resident Agent, Nine. C. H. Mills.

No. 86.

Enclosure. [See No. 108.]

No. 110. [Translation.] g IR Mangaia, Cook Islands, 20th November, 1903. Salutations to you. You are one of those appointed to deal with certain Government rr-atters. On the day of your arrival at Mangaia with the people who are subordinate to you, Miringatangi listened to your excellent words when we met in my house of law. May you have affection for all men under you. It is I, Miringatangi, and Daniel. O, Sir ! I am a true Briton. A question : What is this ? The child shall cry when it seeks its parent. Finished. From your friend, To the Minister of Customs and Trade, Miringatangi.

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No. 111. Sib,— Wellington, 21st November, 1903. I have the honour to inform you that, in compliance with the directions given in your! letter No. 1903/1792, on the 31st August last, 1 proceeded to Rarotonga, via Niue, by the schooner " Countess of Ranfurly," which left Auckland on the 11th September, and duly audited the official accounts at both places with the following results: — Niue. The official accounts of this island, which date from the 3rd December, 1901, have been very carefully kept, and all vouchers and other official documents are neatly and systematically filed. Up to the present only a cash-book has been kept, Mr. Maxwell explaining that, as the entries were so few in number, he had not found it necessary to keep any ledger accounts. As, however, there is every prospect of considerable sums being expended in road-works, surveys, and other public works in the near future, I advised Mr. Maxwell to keep ledger accounts. This he has agreed to do as soon as the necessary books can be obtained. I thoroughly checked all the official accounts from the 3rd December, 1901, to the 19th September, 1903, and found them correct in every particular. The credit balances on the last-named date were: — Niue Treasury — £ s. d. In Bank of New Zealand, Auckland (see certificate attached) 748 10 0 In Post-Office Savings-Bank (Account No. 104284, Auckland) 106 12 9 Cash held by Resident Agent ... ... ... ... 816 5 0 £1,671 7 9 Post Office Account — Cash in hand ... ... ... ... ... ... 13 12 9 Stamps unsold ... ... ... ... ... 107 15 6 Postal notes unsold ... ... ... ... ... 38 9 3 £159 17 6 I might mention that the proceeds derived from the sale of Niue postage-stamps at Auckland are paid to the credit of an account in the Post-Office Sayings-Bank. This acount is operated on by the Controller, Savings Bank Department, on behalf of the Resident Agent, for the purpose of paying claims against the Niue Treasury. As there does not appear to be any valid reason why this monej- should be kept in a separate account, I would recommend that the balance be transferred to the credit of the Niue Island Account at the Bank of New Zealand, Auckland, and the Resident Agent directed to pay all future claims by cheque. I would also recommend that, in future, the proceeds derived from the sale of stamps at the post-office, Auckland, be regularly paid to the credit of the Niue Island Account, and a duplicate deposit slip, covered by a memorandum, should be forwarded direct to Mr. Maxwell every time a payment is made. Rarotonga. Upon arrival at Rarotonga, I interviewed Lieut.-Colonel Gudgeon with reference to the purpose of my visit. He informed me that from the time the last audit was made by an officer of the New Zealand Audit Department up to the Ist April, 1902, the accounts had undergone a thorough investigation at the hands of several persons, and that no good would result from a further examination, owing to the fact that many documents and vouchers are not now available. I therefore decided to confine my attention to the period from the Ist April, 1902, to the 6th October, 1903. The accounts covering the latter period have been excellently kept, and all the documents relating thereto have been carefully filed. I examined the accounts of the Cook Islands Treasury, also those of the Government Schooner Department, High Court, and Land Titles Court, and with one exception found everything in order. The exception referred to is the Customs duty levied on claret. I found that for some time past it has been the practice to pass an entry for the full amount of the duty —viz., 6s. per gallon, and afterwards to put in a voucher for a refund of 4s. per gallon, the result being that only 2s. per gallon is collected on all claret imported. The Collector of Customs informed me that the refund of duty was made on the authority and by the direction of the Resident Commissioner. The credit balances were as follows: — Cook Islands Treasury, 6th October, 1903— £ s. d. In Bank of Australasia, Auckland — Fixed deposit at 3 per cent, interest per annum ... 1,000 0 0 Current account (see certificate attached) ... ... 274 16 10 Cash in hand ... ... 532 2 9 Cash lent to Post Office to meet money-order payments ... ... ■•■ ••. 913 0 541 15 9 £1,816 12 7 6—A. 3.

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Government Schooner Department — £ s. d. Cash in hand, 24th October, 1903 ... ... ... 60 14 4 High Court — Cash due to Cook Islands Treasury on 24th October, 1903 ... 10 8 8 Land Titles CourtCash due to Cook Islands Treasury on 24th October, 1903 ... 7 0 0 Post Office Account — Stamps on hand, 6th October, 1903 ... ... ... 3,497 18 10J Due Cook Islands Treasury (borrowed to meet money-order payments) ... ... ... ... ... 9 13 0 I also took stock of the dutiable goods stored in the bond and found everything correct and in agreement with the Bond Account kept by the Collector of Customs. The goods in bond on the 30th September, 1903, were as follows: — Customs Mark. Description. Quantity. A 36 .. .. .. Geneva .. .. 2 cases A 37 .. .. .. Gin .. .. .. 4 „ A 39 .. .. .. Geneva .. .. .. 4 „ A4O .. .. .. Rum .. .. .. 10f gallons A 42 .. .. .. Geneva .. .. .. 1 case A 43 .. .. .. Perfumed spirit .. .. 1 „ A 44 .. .. .. Sparkling wine .. 6 cases A 57 .. .. .. Rum .. .. .. 1 quarter cask A5B .. .. .. Geneva .. .. .. 3 cases A 59 .. .. .. Sweetened gin .. .. 3 „ A6O .. .. .. Port wine .. .. 3 „ A6l .. .. .. Brandy .. .. .. 1 case A 62 .. .. .. Tobacco .. .. .. 2 boxes A 64 .. .. .. Whisky .. .. .. 2 cases A 65 .. .. .. „ .. .. .. 1 octave less 8 gallons A 67 .. .. .. Cigars .. .. .. 7 lb. A 70 .. .. .. Geneva .. .. .. 5 cases A7l .. .. .. Whisky .. .. .. 3 „ A 72 „ 5 „ A 73 „ 7 „ A 75 .. .. .. Hosiery .. .. .. 1 case A 76 .. .. .. Rump .. .. .. 1 cask A 77 .. .. .. Brandy .. .. .. 1 case ABl .. .. .. Geneva .. .. 10 cases AB2 .. .. .. Claret .. .. .. 2 casks The time occupied in investigating the accounts was as follows: Niue, 3 days; Rarotonga, 10 days. I have, &c, H. Cornwall, Auditor. The Hon. the Minister in Charge, Cook and other Islands Administration.

Enclosures. Niue Island Account. In Account with the Bank of New Zealand, Auckland. 1903. Dr. £ s. d. 1903. Cr. £ s. d. Oct. 1 Colledge & Sons .. .. 110 0 Sept. 19 By Balance .. .. .. 878 13 9 Nov. 7 Wingate & Co. .. .. .. 44 6 0 Oct. 15 Maxwell .. .. .. 5 3 8 „ 7 Heather Roberton, & Co.. . .. 7 6 0 „ 10 Nathan ...... 9 16 8 883 17 5 „ 11 Fixed Deposit .. .. .. 500 0 0 Nov. 14 By Balance . . .. .. 302 18 10 „ 13 Kauri Timber Company .. .. 17 19 11 Balance .. .. 302 18p0 £883 17 5 £1,186 16 3 For the Bank of New Zealand, George Hill, pro Manager. £ s. d. Credit balance at Bank of New Zealand, afi per Resident Agent's isocounts ... ... ... ... ... ... 748 10 0 Add for unpresented cheque (P. F. College) ... ... ... 110 0 Add for Levers' draft, collected and credited, but not reported to Resident Agent ... ... ... ... ... 129 11 10 879 11 10 Less amount debited by Bank — Exchange on Lever's draft ... ... ... 13 1 Bank charges ... ... ... .. ... 50 0 18 1 Balance on 19th September, 1903, as per bank certificate attached... £878 13 9 H. Cornwall, Auditor,

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Bank of New Zealand, Auckland, 16th November, 1903. 1 hereby certify that the balance standing to the credit of Niue Island Account in the books of this bank at the close, of business on the 19th day of September, 1903, was eight hundred and seventy-eight pounds thirteen shillings and ninepence sterling. For the Bank of New Zealand. .£B7B 13s. 9d. George Hill, pro Manager.

Cook Islands Treasury Account. In Account with Bank of Australasia, Auckland. 1903. Dr. £ s. d. 1903. Cr. £ s. d.J Sept. 7To Large .. .. .. 710 0 By Balance, 10th August, 1903 ~ 375 18 0 „ 30 Bank charge on account .. 0 5 0 Oct. 5 Cheques, &c. .. .. .. 34 4 8 Oct. 5 Gatley .. .. .. 87 10 0 Balance, 6th October, 1903 .. 314 17 8 £410 2 8 £410 2 8 J. Watt, pro Manager. £ s. d. Balance at credit as per Cook Island Treasury books, 6th October, 1903 ... ... ... ... ... ... 274 16 10 Add for unpresented cheque (Government Schooner Department) ... 315 0 0 589 16 10 Less remittance to bank in transit ... ... ... ... 274 12 11 315 3 11 Less — Bank charge on account ... ... ... ... 5 0 Exchange ... ... ... ... ... 1 3 0 6 3 - Balance at credit on 6th October, 1903, as per Bank of Australasia £314 17 8 H. Cornwall, Auditor. Cook Islands Treasury Account. In Account with Bank of Australasia, Auckland. 1903. Dr. £ s. d. , 1903. Cr. £ s. dOct. 16 To Government Schooner Department 315 0 0 Oct. 7By Cheque, C.P.M. .. .. 537 5 7 Nov. 7 Heather, Roberton, & Co. .. 269 14 3 ~7 „ „ .. 379 9 11 i Large .. .. .. 37 10 0 ~9 Interest on fixed deposit .. 30 0 0 jj i Wilson & Co. .. .. 75 11 1 ~16 Cheque, C.P.M. .. .. 072 14 10 Government Schooner Depart- ~ 22 Lever's Pacific Plantations (Ltd.) 35 3 8 ; i '■• mcnt .. .. .. 35 8 9 Nov. 10 Cheques, &c. .. .. 274 12 11 Balance, 14th November, 1903 1,677 19 5 „ „ .. .. 166 18 11 Balance, 6th October, 1903 .. 314 17 8 £2,411 3 6 £2,411 3 6 J. Watt, pro Manager.

No. 112. Cook and other Islands Administration, Wellington, Sir,— 23rd November, 1903. You will be glad to hear that a sum of .£5OO (on account of £1,000) has been placed on the estimates for the erection of an accommodation-house at Rarotonga, but before any building can be erected a suitable piece of ground will have to be acquired. I have received your letter of the 26th October, forwarding Mr. C. Kohn's offer of his site, and I would like you to ascertain from him what he is prepared to take for his lease. You might also find out whether Makea would be willing to make the land a Government freehold, as I think whatever site is chosen the Arikis should be disposed to convey it to the Government, for there can be no doubt that the island will gain in many ways by being connected with New Zealand and having a tourist traffic developed. Please let me know whether you think such a proposal would be entertained. What kind of a building would you suggest to meet present requirements? I ask this because. 1 am thinking of having the building framed here by the Public Works Department and sent down for erection. I recognise the difficulties connected with the matter, and will write you on the general question of the liquor traffic on the island by next mail. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

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No. 113. g IR> Niue, Ist December, 1903. I have the honour to submit for your favourable consideration a project for conserving the large quantity of rain-water from the roof of the Government Building here. I propose to excavate a reservoir in a convenient position and construct a cistern capable of containing 2,000 or 3,000 gallons of water, connecting it by piping with the Residency. The large area of catchment-surface would speedily fill the reservoir in the rainy season. With the aid of a pump the villagers would be able to obtain an ample supply of pure drinking-water. This_ would be a great boon to them, as the water derived from the rock caverns is more or less brackish. I am afraid the same condition would be found in wells sunk in this part of the island. I intend, however, when the appliances arrive, to put down wells in those settlements which are unprovided with similar facilities for collecting rain-water which are available in Alofi. I do not anticipate that the cost of this work will exceed the estimate given below: — £ s. d. Cement (twenty bags New Zealand, four casks Portland) ... ... 6 6 0 Piping ... ... ... ... ... ... ... 5 0 0 Pump ... ... ... ... ... ... .. 2 0 0 Collecting-tank ... ... ... ... ... ... 210 0 240 ft. O.G. spouting ... ... ... ... ... 210 0 Brackets, screws, &c. ... ... ... ... ... 140 Labour ... ... ... ... ... .. ... 10 0 0 £29 10 0 If you approve of this suggestion, kindly authorise the purchase of the material. I will order it to come by the " Countess "in May next. The schooner is expected to visit Niue in February next, and should bring a mail for us. I have, &c, C. F. Maxwell, Government Resident Agent. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 114. Cook and other Islands Administration, Wellington, Sir,— 2nd December, 1903. You will be glad to learn that I have succeeded in getting the Cook Islands Amendment Bill passed, validating the constitution of the present Federal Council, and all Ordinances passed by it up to date. I send you three copies of the Act herewith. You will notice that provision has been made for the present Council to continue in office until the 31st December, 1904. We shall now have the Islands administration placed on a secure and valid foundation. I am now taking steps to have an Order in Council passed reducing the duty on the lower-class tobacco for the benefit of the Natives who use it. It is proposed to make the duty Is. a pound on all tobacco invoiced at or under Is. a pound. I sent you a wire to this effect by the " Ranfurly " a few days ago. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 115. Cook and other Island Wanganui, Sir,— 7th December, 1903. I enclose a copy of " The Cook and other Islands Act Amendment Act, 1903." As already advised by wire, I am having an Order in Council gazetted reducing to Is. a pound the duty on all tobacco invoiced at or under Is. a pound. I will send a copy of the Gazette on my return to Wellington. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No. 116. Sib,— Rarotonga, Cook Islands, 16th December, 1903. Before the Land Titles Court makes any reservation and vesting order, under subsection (10a), of section 10 of the Order in Council establishing the Cook and other Islands Land Titles Court, I think it would be wise to obtain the opinion of the Attorney-General on the following points: — 1. Does subsection (10a) of section 10 of the Order in Council come within section 6 of "The Cook and other Islands Government Act, 1901," or is such subsection (10a) supplemental to section 15 of the said Act? 2. Can the Land Titles Court act under such subsection (10a) with or without a Proclamation being made under section 15 of the Act? 3. Can the powers conferred by section 15 of the Act be acted on without reference to the Land Titles Court? It will be noticed that section 15 gives no power to determine compensation for land taken, while subsection (10a) gives the Court such power. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington, N.Z.

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No. 117. Cook and other Islands Administration, Wellington, Sir,— 17th December, 1903. 1 am in receipt of your letter of the 19th October, with reference to the prospects ofl establishing a steamer service between Wellington and the Islands, in addition to the present monthly service from Auckland. I am sorry to hear that' the inducement at present is not sufficient, because I thought that if a fortnightly service could be arranged it would save a large quantity of fruit which must now perish between the monthly visits of the present steamers, and I had been informed that on two or three occasions the steamer calling at Mangaia had no room for the produce awaiting shipment there. It has been brought under mj T notice by the auctioneers of Wellington that during the past few months their supplies have arrived in Wellington in an overripened condition, in consequence of not having been transhipped to the boat going south until three or four days after arrival at Auckland. This may explain why weak returns have been received recently from this port, and I think a direct service from here would do much to prevent this great loss, which otherwise must occur with fruit shipped for consumption in the South Island. Nothing can be done until next session with regard to protecting the fruit from our Islands as against fruit from the Commonwealth and outside islands, and I think the Government and Parliament will have to be assured that the quantity of fruit available from the Cook and other islands will be very much greater than it has been in the past before they can entertain the idea of protection or give effect to it through the Customs. As I mentioned to you and others at the Islands, our fruit-imports from all sources amounted to 560,000 parcels, of which only 57,000 came from our own islands, so that a protective duty would mean taxation to a large number of people in this colony who consider tropical fruit such a desirable part of their diet. However, the matter will again be fully discussed by Cabinet before next session, and some definite steps taken. In the meantime I think it advisable to let the question of initiating another monthly steamer service from Wellington stand over until we have suitable accommodation for tourists at Rarotonga, when I hope the trade prospects will improve, but I hold a very strong opinion that no satisfactory development of the Islands trade can take place until we have the fortnightly service. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 91.

No. 118. Cook and other Islands Administration, Wellington, 17th December, 1903. Memorandum for His Excellency the Governor. The Hon. C. H. Mills presents his compliments to His Excellency, and begs to enclose a copy ot' a letter received from the Resident Commissioner at Rarotonga, pointing out that the work of opening boat-passages through the reefs at Mangaia and Atiu cannot conveniently be carried out during the summer months. Mr. Mills respectfully suggests that the Governor cause this fact to be communicated to Admiral Fanshawe, who has promised to have the work done next year. C. H. Mills.

No. 119. Cook and other Islands Administration, Wellington, Friends, — 18th December, 1903. I have received your kind letter of the 20th November, and heartily return your saluta-] tions. It was very pleasing to me to hear from you, and see from the words of your letter that apparently you are not averse to the changes now being made in Mangaia. I can assure you that in appointing Mr. Large as Resident Agent we are acting only for the benefit of all of you. lam anxious to see that all matters are carefully administered at Mangaia and that justice is done to every one, and so I hope you will do all you possibly can to uphold the Resident Agent's authority. I know, when 3 - ou say you are true Britons you both mean to obey the law in every particular as good citizens of the great Empire to which we all belong. Trusting that New Zealand will prove a true parent to all her children in Mangaia, and that there will be no more need to cry, and with greetings to all, and best wishes for your prosperity during the new year. Yours, &c, Miringatangi and Daniela, Mangaia. C. H. Mills.

No. 110.

No. 120. Sir,— Niue, 19th December, 1903. I have the honour to inform you that Mr. Haszard leaves to-day for Tonga en route for Auckland, having completed the circuit of the island. This is the first opportunity he has had to leave, and, in fact, he has tfhly just completed his work. I have given him £20 on account, and the balance will be paid when he has completed the plans. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. the Minister of Trade and Customs, Wellington.

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No. 121. Cook and other Islands Administration, Wellington, »"V- 21st December, 1903. In reply to yours of the 15th November, forwarding a copy of a report from Mr. J. T. Large, Resident Agent at Mangaia, with reference to his reception there, and also copies of your letters to him and to Miringatangi and Daniela, I have read these carefully through, and can quite understand there has been some little unpleasantness caused through the removal of certain officers from the positions they have hitherto occupied, but I think in a very short time all this trouble will pass away. I have received a joint letter from Miringatangi and Daniela, which I fully expected would contain a strong remonstrance against the action taken, but was agreeably surprised, on having it translated, to find that it was quite the reverse. I enclose a copy of it and my reply. If you have not already reappointed Ataa, I think it will be better to make no reinstatements to office for a time if you can manage to do without it, as it may create further unpleasantness if another chief is at once placed in the position from which Miringatangi has been removed. I would like you to give me full particulars as to who constitute the Arikis' Court, and what are its functions, as I think it would be advantageous to gradually bring in our own system of administering justice in the Islands. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 104,

No. 122. Cook and other Islands Administration, Wellington, Sib,— 21st December, 1903. With reference to the " Countess of Ranfurly," concerning which I have your letter of the 19th October, 1 have been looking over some old correspondence on the subject and find a letter written to you by the Premier when in Rarotonga on the Bth June, 1900, in which he set forth what he considered might be done in the direction of procuring and running the vessel. I have also read your reply of the 11th June, addressed to His Excellency the Governor, in which you submit the following proposals: (1) That a schooner be built for the Federal Government not exceeding 150 tons register, and fitted with suitable oil-engines; (2) that the New Zealand Government shall advance the money required for such schooner, and the Government of the Cook Islands should pay at the rate of 5 per cent, per annum on all moneys so advanced; (3) that a sinking fund shall be provided and that the amount reserved annually for such fund shall be decided by the New Zealand Government, the Government of the Cook Islands reserving the right to pay off a greater sum in any one year than that defined by the sinking-fund clause; (4) that this debt shall be a first charge on the revenues of the Cook Islands. In your letter under reply you state that at that time you were in a position to pay off the liability at the rate of £1,000 per annum, but that this is no longer the case. A reference to the published statements of your accounts, however, shows a balance of £1,301 for 1900-1, £1,697 for 1901-2, and £1,856 for 1902-3. These returns show a steady increase in your receipts, and while it is true that your expenditure has increased also, you have still been able to show a growing surplus year by year. It was with the object of making things as easy as possible for the Islands administration that I suggested a scheme of annual payments according to the instalment table sent you; and, with regard to Niue, Mr. Maxwell was of opinion that the island should contribute a subsidy of £100 a year towards the schooner, irrespective of freight, &c. I have been thinking since, however, of dividing the amount into five shares —the Cook Islands Administration taking three and paying, say, £301 11s. 3d., and the Niue Island Administration taking two and paying £201 os. 9d.; making the total instalment of £502 12s. as provided by the 3-per-cent. table for repayment in fifteen years. Please let me know as soon as possible what you think of it. With regard to Customs revenue, I have instructed the Collectors of Customs to keep accounts of what duty is collected on goods snipped from New Zealand to the Islands, and at the end of the year the* accounts will be placed before Cabinet, and I will ask the Government to authorise the amount being credited to the Islands Administrations. With this arrangement effected your financial position would be greatly strengthened, and itistead of selling the schooner I hope you will be able to provide sufficient funds to meet the instalments in accordance with the table. If this can be done the Islands in a few years will own the schooner. My own opinion is that if the schooner were sold it would militate against the growing prosperity of the Islands, and materially retard their progress. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 90.

No. 123. Cook and other Islands Administration, Wellington, g IK _ 21st December, 1903. j n reply to your letter of the 18th ultimo, on the subject of the liquor law in Rarotonga, I°' ' your remarks hardly convey all the information I required. Can the permit for the three bottles be issued any day, or only once a week; and to what extent are these permits made use of ? I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

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No. 124. Sir, — Rarotonga, Cook Islands, 22nd December, 1903. I notice that in the estimates for the year there is an item of £450 for the residence of the Medical Officer, Cook Islands, and have the honour to suggest for your consideration that this building should be fitted and prepared in New Zealand and sent to Mangaia for the use of Mr. Large, who is unable to obtain suitable accommodation. If you consent to this transfer of your building I will place on the estimates of the Cook Islands the sum of .£5OO, and build a good concrete building for the Medical Officer. We have a piece of land at Mangaia on the cliff above the mission-house, but as we must have our officer on the low land near the landing-place, I propose that we should take a piece of land from the mission for a road and landing-place, and build Mr. Large's house thereon. Under any circumstances this reserve must be made on the rocky land near the coast, and I think we cannot do better than build the house of the Government Agent on the spot. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 125. Cook and other Islands Administration, Wellington, Sik,— 22nd December, 1903. You will be pleased to know that the auditor who was sent to Rarotonga to investigate the Cook Islands accounts, Mr. H. Cornwall, has reported to me that he found the books and accounts well kept and everything correct, with the exception of the Customs duties levied on claret, on which you appear to be charging 2s. per gallon instead of the 6s. provided by the tariff. Will you kindly explain how you came to adopt the lower rate, or, rather, on what grounds a remission of 4s. per gallon is made. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 126. Sir,— Alofi, Niue, 18th January, 1904. I have the honour to submit to you a statement of the Niue revenue for the quarter ended the 31st December, 1903, together with accounts showing the financial position of this island on that date, so far as the information at my disposal enables me to do so. You will observe that the Customs receipts for the quarter total £476 18s. 3d. Almost the whole of the goods arriving here from Auckland during the period were free or duty-paid in New Zealand, excepting spirits and tobacco, otherwise the duties collected would have been much larger. The total receipts, including balance brought forward from last quarter, amount to £1,425 11s. Bd., and the expenditure for the period totals £324 10s., leaving a balance to credit of £1,101 Is. Bd. By the memorandum from the Postmaster-General, which you so kindly sent me, I find that there is a balance in the hands of the postal authorities for Niue postage-stamps sold of £439 4s. lid., excluding the balance of £117 12s. in the Savings-bank. The former account was probably considerably more on the 31st December, and I would suggest that this sum might be paid into the Niue Savings-bank Account, or as much of it as the regulations will permit, and the rest to Bank of New Zealand Niue Island Account. When the drafts transmitted to the bank are collected and placed to credit of this account there should be a balance in current account of £389 10s. 6d., subject, of course, to any small, debits made by the bank for exchange, chequebook, &o. By the summary of the total funds to credit of Niue Government you will gather that the approximate amount totalled £2,229 2s. on the 31st December, probably a little more when interest, &c, is added. There still remains the duty collected in Rarotonga on goods for Niue, to which this island is justly entitled, and which should be refunded to this Administration. With reference to duties collected in Auckland on goods for Niue, it is, of course, for you to direct how the}' should be dealt with. Regarding the item of " Receipts " of £5 2s. 6d. for sale of tobacco, some time ago, having temporarily discontinued the road-work through lack of explosives, I sold two boxes of tobacco, at a fair advance upon cost, to traders who required it. The revenue obtains the duty, and I can replace it later on. Tobacco rapidly deteriorates in this climate, and it is better to have it fresh. When my Post Office cash exceeds the authorised reserve, if from sale of stamps, I transfer the balance to the Niue Revenue Account, as shown in item £30. I think I am justified in saying that the financial position of this island is sound, and, provided we escape a hurricane, the outlook for the present year is hopeful. I have, &c, C. F. Maxwell, Government Agent, Nhu;. The Hon. C, H. Mills, Minister of Trade and Customs, Wellington.

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Enclosures. Niue Island Ebvenue Account fob Quaeter ended the 31st December, 1903. 1903. Dr. £ s. d. 1903. Or. £ B. d. Sept. 30 Balanoe forward .. .. 858 711 By Labour on roads .. .. 139 13 0 To Customs reoeipta .. .. 476 18 3 Labour (miscellaneous) .. 21 16 6 Trading lioenses .. .. 16 15 0 Salaries Niue Island Council 38 14 0 Fines and fees .. .. 26 18 0 „ Native Magistrates 17 2 0 Emigration fees .. .. 3 0 0 Pay and allowanoe to police 27 4 6 Shipping-fees .. .. 12 0 Compensation for trees deSale of tobacco .. .. 5 2 6 stroyed.. .. .. 0 6 0 Sale of hats .. .. 7 8 0 Advanced to Mr. Haazard, Transferred from Post Office Survey Aocount.. .. 20 0 0 Acoount .. .. 30 0 0 Survey labour .. .. 22 6 0 Repairs to building .. 1 18 0 Rent of office .. .. 2 15 0 Sundries .. .. .. 14 0 Survey pega and tools .. 0 9 6 Canoe-hire .. .. 10 0 Horse-feed .. .. 0 16 0 Stores for labourers .. 2 2 0 Stationery .. .. 0 15 6 Interpreter .. .. 0 4 0 Timber for magazine .. 16 0 Ironmongery, Wingate & Co. 11 0 0 Freight per " Countess of Banfurly" .. .. 7 18 0 324 10 0 Dec. 31 Balanoe .. .. .. 1,101 1 8 £1,425 11 8 Balance as under:— Lever's Pacific Plantations (Limited) — Drafts sent to Bank of New Zealand £ s. d. for collection .. .. .. 318 7 1 Cash in hand .. .. .. 782 14 7 ajznn £i ' lol ~* C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

Niue Island Account, Bank of New Zealand, Auckland. 1903. Dr. £ s. d. j 1903. Or. £a. d. May To Deposited by Hon. Mr. Mills .. 700 0 0 | Aug. 21 By P. F. Colledge .. .. 110 0 Lever's Paoifio Plantations draft 129 1110 Sept. 22 Heather, Roberton, and Co. 7 6 0 129 7 3 ~22 A. H. Nathan .. .. 916 8 „ 60 4 0 „ 23 Ross and Ansenne.. .. 6 011 Prooeeds of stamp sales, C.P.M. 50 0 0 „ 23 Kauri Timber Company .. 17 19 11 Draft for stamps .. .. 5 3 8 ~23 Wingate and Co. .. .. 44 6 0 23 Fixed deposit, one year .. 500 0 0 Dec. 29 D. Goldie .. .. 6 15 4 29 Wingate and Co. .. .. 31 5 5 29 Inspector of Prisons .. 32 12 6 30 Charles Bailey .. .. 26 7 6 Exchange on Lever's draft .. 0 16 0 684 16 3 31 Balance, Current Account .. 389 10 6 £1,074 6 9 i £1,074 6 9 C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

Total Funds to Credit of Niuk Government to 31st December, 1903. £ s. d. Cash in hand in Niue ... ... ... ... ... 782 14 7 Balance current account, Bank of New Zealand.. ... ... 389 10 6 Balance in Auckland Savings-bank Account ... ... ... 11712 0 Balance in post-office, Auckland ... ... ... ... 439 4 11 At fixed deposit, Bank of New Zealand (one year) ... ... 500 0 0 £2,229 2 0 Due to Niue Government, but exact amounts not yet known: — Interest on Auckland Savings-bank Account. Customs duty collected in Rarotonga on goods for Niue. Customs duties collected at Auckland on goods for Niue during 1903. C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

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Sale op Niue Postage-stamps in Auckland Account. £ s. d. £ s. d. Bales in Auckland by Chief Postmaster up Orders on Postal Department issued by to the 31st July, 1903 (mem., P.G., 25th Postmaster, Niue, to the Ist June, 1903— September, 1903) .. .. ~ 816 12 8 1902. Nov. 11 Kauri Timber Company .. 45 10 0 1903. Jan. 10 Freight " Countess of Ranfurly" 14 19 8 „ 10 Wingate & Co.'s account .. 83 5 3 May 12 „ „ 42 0 5 „ 18 „ , 27 7 0 June 1 Kauri Timber Company .. 46 5 2 Cash-box Post and Telegraph Department.. 0 8 3 259 15 9 Balance in Savings bank Account on the 25th September, 1903 (No. 104284, Auckland Savings-bank Account) .. .. 117 12 0 377 7 9 Balance in Post-office .. .. .. 439 411 £816 12 8 £816 12 8 C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

No. 127. Siis, — Customs, Niue, 18th January, 1904. I have the honour to submit to you herewith a return of imports into Niue for the quarter ended the 31st December, 1903; also a schedule showing the total imports for the year ending as above, and the total Customs duties collected for the same period. Comparing the results with those for the year 1902, the imports show an increase of £1,409 14s. sd. and the Customs duties collected an increase of £825 4s. sd. This increase of duties is unlikely to be sustained during the current year, as the reduction of duty on tobacco will materially affect the receipts. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. the Minister of Trade and Customs, Wellington.

Enclosures. Imports into Niue for Quarter ending 31st December, 1903.

7—A. 3.

Whence imported, and Classification. Remarks. Value. Value. Whence imported, ana Classification. Remarks. Value. New Zealand. ipparel iiscuits .. „ fancy '.utter ieer ieef, salt .. iran Soots and shoes ioot-polish ilue Srandy laps, percussion .. iordials .. Jheese 'utlery .. . * iotton Jalico 'alico print ihafl 'artridges lordage .. ionfectionery Joffee )enims .. ., iynamite detonators )rapery .. )rugs )rill Earthenware firearms .. 'urniture.. i'ruit, preserved 'ish line .. 'ish-hooks 'lour 508 tins = 21,2541b. 130 . .. 1101b. 4 cases 18 kegs=9501b. .. 1 sack 98 pairs 28 lb. 3 bottles 13 M. 6J doz. 12 gross 267 yards.. 265 pieces 4 sacks .. £ s. d. 94 1 5 125 1 9 16 4 10 6 4 0 7 10 13 5 7 0 6 0 23 15 0 0 9 6 0 18 6 110 2 7 9 1 19 5 0 10 3 11 3 8 10 18 6 4 16 4 174 4 7 0 16 5 0 19 0 2 18 3 16 0 1 13 3 3 14 5 10 19 1 16 13 4 15 0 1 13 1 2 15 2 12 6 14 6 6 4 9 8 17 3 10 1 10 135 19 9 Fancy goods Gin .. .. 16 Gunpowder .. 2 k Glassware Haberdashery Hams and bacon Hardware Herrings Galvanised iron .. 10S Jewellery Lard Muslins Matches .. .. 11C Meats, preserved .. 105 Milk .. .. 7J Nails .. .. 8£< Oil, linseed .. 5 d „ neatsfoot .. 1 „ castor „ kerosene .. 10 „ hair .. .. 4 c; Oats .. .. 1 si Onions .. .. 2 a Pipes, wood „ clay .. 7 b Provisions Paints .. ,, 13C Perfumes Potatoes .. .. 4 si Rice .. ..428 Shot .. .. 600 Soap .. .. 30J Sacks .. ..550 Shirtings .. .. 186 Salmon .. .. 471 16 cases 2 kegs = 501b. 105 pheets 110 gross 105 cases = 376 doz. 7J cases = 30doz. .. 8fewt. 5 drums = 25 gals. .. 1 „ 5 „ .. cases .. tegs = 501b. 5 pheets 0 gross .. 5 cases = 376 doz, cases = 30doz. cwt. Jrums = 25 gals. 5 , cases .. ;ases = 20 doz. ;ack ;aees joxes .. 0 lb. '.'. sacks 8 pkgs. = 25,962 01b. .. J oases.. 0 6 yards.. 1 oases = 190 dc :. !lb. oz. £ a. i 17 7 15 8 3 19 5 17 6 4 8 17 84 14 0 12 12 9 3 0 4 14 4 13 1 15 8 158 19 9 15 6 11 4 19 0 17 0 1 4 0 7 7 0 8 1 14 2 11 1 2 8 34 12 2 7 0 17 2 12 167 7 6 14 20 14 14 1 4 13 59 8 £ s. d. 17 7 3 15 8 0 3 19 2 5 17 6 6 4 4 8 17 6 84 14 4 0 12 0 12 9 4 3 0 0 4 14 0 4 13 11 15 8 7 158 19 0 9 15 6 6 11 0 4 19 2 0 17 6 0 17 4 0 0 7 7 0 0 8 5 1 14 4 2 11 11 2 8 6 34 12 6 2 7 5 0 17 6 2 12 4 167 7 6 6 14 6 20 14 6 14 1 2 4 13 5 59 8 8 2 coils 10 cases 4 cases = 20 doz. 1 sack 2 cases 21 lb. 100 yards.. 7 boxes 1301b. .. 7 cases = 13 doz. 100 lb. 18 M. 22,100 lb. .. 4 sacks 428 pkgs. = 25,962 lb. 600 lb. 30J oases 550 186 yards.. 47J oases = 190 doz.

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Imports into Niue for Quarter ending 31st December, 1903— continued.

Summary. From whence imported. Value. £ s. d. New Zealand ... ... ... ... ... ... 1,611 3 1 Sydney ... ... ... ... ... ... ... 958 11 7 Germany ... ... ... ... ... ... 41 17 2 Tonga ... ... ... ... ... ... ... 104 10 0 Total £2,716 1 10 C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

Total Imports into Niue for Year ending 31st December, 1903. £ s. d. ;"; From New Zealand ~, ... ... ... .. 5,592 010 „ Sydney ... ... ... ... ... ... 1,539 0 1 ~ Tonga" .. ... ... ... ... ... 302 15 6 ~ Samoa ... . . ... ... ... ... 68 3 4 „ Maiden Island ... ... . . ... ... 265 14 5 ~ Germany ... ... ... ... ... ... 233 8 4 £8,001 2 6 Total Customs duty collected ... ... ... ...£1,571 6 11 C. F. Maxwell, Collector of Customs, Niue.

Whence imported, anil Classification. Remarks. Value. Whence imported, and Classification. Remarks. Vallie. New Zealand— ctd. Sardines Sugar Salt Sewing machines .. Stationery Saddlery Sundries Twine Tea' Timber Tobacco Tanks Vinegar Whisky Woodenware Wine Wire rope Zephyrs 32 eases 40 bags-2,2401b... 79| lb. .. 2,990 ft. .. 26 pkgs. = 1,043 ib. £ s. d. 15 2 3 18 3 10 2 2 0 2 13 0 9 5 8 18 10 9 18 18 6 8 8 3 5 10 2 20 12 2 59 7 4 8 8 0 0 7 9 15 2 0 13 0 0 18 0 3 18 10 3 19 7 1,611 3 1 143 12 3 144 0 0 0 11 6 3 12 4 12 6 11 10 6 0 5 3 10 0 1 16 8 18 0 0 7 1 2 9 5 8 3 10 1 1 10 2 17 0 24 6 1 76 8 5 3 12 0 47 11 2 0 19 8 4 16 1 0 16 1 0 18 0 3 6 8 0 17 11 5 19 9 8 7 6 41 9 0 3 2 6 2 18 9 11111 0 Hams and bacon Hardware .. Herrings .. Galvanised iron Jewellery .. Lard Muslins .. Matches .. Meats, preserved Nails Oil, perfumed „ kerosene „ hair .. Oats Onions Pipes Provisions.. Paints Perfumes .. Potatoes .. Rice Shot Soap Shirtings .. Salmon Sardines .. Sugar Stationery Sundries .. Twine Tobaoco .. Tanks Vinegar Whisky .. Woodenware Gbemany. Apparel Fancy goods Haberdashery Perfumes .. Shirtings .. Tonga, Apparel Horses 4 doz. 2 cases 20 pieces 244 gross 66 oases = 300 doz. 3 cwt. £ s. d. 3 19 1 25 9 10 18 6 17 5 9 4 5 0 0 12 6 12 12 8 16 19 5 123 9 0 2 2 6 5 9 8 5 15 3 2 5 0 14 0 0 4 0 5 0 9 10 19 1 1 14 6 3 7 0 0 6 0 19 12 5 5 2 0 11 17 9 4 1 10 42 14 1 4 2 2 7 16 7 6 8 2 10 12 0 5 13 28 6 10 1 10 0 0 6 9 10 0 4 11 6 10 cases 17 cases 1 grass 2 sacks I case II doz. 6 bottles .. 310J lb. .. Sydney. Apparel Biscuits Bisouits, fancy Butter Beer Boots and shoes Blue Chaff Caps, Percussion .. Cartridges.. Cheese Cordage Cutlery Coffee Cotton Calico Calico print Drapery Drugs Drill .. Denims Earthenware Firearms Fruit, preserved Fish-line Fish-hcoks Flour Fancy goods Gunpowder Glassware.. Haberdashery 188 tins = 13,400 lb. 24 doz. 1 case 66 pkgs. = 37201b. 1,0001b. .. 27 boxes 5 pieces 49 cases = 196i doz. 4 oases .. .. 18 tins = 720 lb. .. 561b. 1 case = 4 doz. 53 pairs 4 sacks 20 M. 2M. 14 pkgs. = 591J lb. 2 coila 1 case 101b. 3 gross 43 pieces 170 pieces 958 11 7 16 13 0 2 12 6 4 13 8 13 7 2 4 10 10 2 cases = 4 doz. 151b. 13 pieces = 520 yds. 41 17 2 20 tins m 1,000 lb... 54 10 0 50 0 0 50 lb. 9 104 10 0

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No. 128. Sir,— Niue, 18th January, 1904. I have the honour to forward to you herewith a return of exports from Nine for the quarter ended the 31st December, 1903, together with a statement showing the total exports for the year ending the 31st December, 1903. You will observe that the total exports amount to £7,861 18s. 2d., or, excluding £210 reshipment, to £7,651 18s. 2d. This is an increase of £936 os. 10d. over the exports for 1902. The export of copra has increased by 33 tons, being 446 tons, in round numbers, against 413 tons in 1902. A gratifying increase has also occurred in the quantity of hats exported —viz., 1,527 dozen —the figures being 4,293 dozen last year against 2,766 dozen the year before, representing an increased money-value of £1,130 13s. 9d. Fungus has decreased somewhat, but it is a product which depends greatly upon the rainfall, being more abundant in wet years. I estimate that the copra crop for the current year will show an increase, although the price will be much lower. The greater demand and enhanced prices for hats will, however, more than compensate for any falling-off in copra. New markets appear to be opened up for Niue hats, and good prices are offered, which should stimulate production to an appreciable extent. Generally speaking, I think we have every leason to be satisfied with the year's exports, and consider that a settled form of government has conduced very materially towards the prosperity of this island. I have, &c, C. F. Maxwell, Government Agent, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

Enclosures. Exports prom Niue for Quarter ending 31st December, 1903. To New Zealand— £ s. d. iTo Tonga— £ s. d. Hats, 639J dozen .. .. .. 408 6 5 I Copra, 35 tone 17 cwt. 3 qr. 9 lb. .. 358 19 1 Copra, 5 toi<e 18 cwt. and 241b. .. 47 5 9 Fungus, 1,862 lb. .. .. .. 26 5 6 Fungus, 1,5401b. .. .. .. 19 5 0 Hats, 50 d< zen .. .. .. 30 0 0 Curios, 2 cases .. .. .. 24 10 0 £415 4 7 £499 7 2 To Sydney— Copra, 135 tons 13 cwt. lqr. 191b. .. 1,085 7 3 To Rarotonga— Fungus, 2,0361b. .. .. .. 21 3 4 Hats, 318 dozen .. .. .. 336 14 0 Provisions .. .. .. .. 1 12 9 Fungus, 367 lb. .. .. .. 3 16 6 £1,108 3 4 ' £340 10 6 Summary. £ s. d. Copra, 177 tons 9cwt. lqr. 241b. .. .. .. .. .. .. 1,49112 1 Hats, 1,007£ dozen .. .. .. .. .. .. .. .. 775 0 5 Fungus, 5,805 lb. .. .. .. .. .. .. .. .. 70 10 4 Curios, 2 cases .. .. .. .. .. .. .. .. 24 10 0 Provisions .. .. .. .. .. .. .. .. .. 1 12 9 £2,363 5 7 C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

Exports from Niue for Year ending 31st December, 1903. To New Zealand— £ s. d. To Rarotonga— £ p. d. Hats, dozen .. .. .. 1,613 12 0 Hats, 455 dozen .. .. .. 432 13 0 Copra, 44 tons 19 cwt. 3 qr. 9 lb. .. 429 2 6 Fungus, 367 In. .. .. .. 3 16 6 Fungus, 5,077 lb. .. .. .. 64 9 9 Curios .. .. .. .. 98 3 1 £436 9 6 £2,205 7 4 To Tonga— Copra, 226 tons 4 cwt. 2 qr. 21 lb. .. 2,258 18 8 Hats, 1.401J dozen .. ... .. 899 5 9 To Sydney— Fungus, 12,893 lb. .. .. 181 0 0 Arrowroot, 981 lb. .. .. .. 10 4 7 Curios .. .. .. .. 89 8 6 Copra, 175 tons 13 cwt. lqr. 191b. .. 1,405 7 3 Kava, 1601b. .. .. .. 2 0 0 Curios .. .. .. .. 35 0 0 Merchandise reshipped ~ .. 210 0 0 Provisions ........ 1 12 9 —— Fungus, 8,930 lb. .. .. .. 82 11 4 £3,640 12 11 Hats, 10 dozen .. .. .. 16 0 0 — To Samoa—Curios .. .. .. £13 12 6 £1,550 15 11 To Melbourne—Curios .. .. .. £15 0 0 Summary. £ s. d. Copra, 446 tons 17 cwt. 3 qr. 21 lb. .. .. .. .. .. .. 4,093 8 5 Hats, 4,293§ dozen .. .. .. .. .. .. .. .. 2,96110 9 Fungus, 27,267 lb. .. .. .. .. .. .. .. .. 331 17 7 Curios .. .. .. .. .. .. -. •• .. 251 4 1 Arrowroot, 981 lb. .. .. .. .. .. .. .. .. 10 4 7 Kava, 160 lb. .. .. .. .. .. .. .. .. .. 2 0 0 Provisions .. .. .. .. .. .. .. .. .. 112 9 Merchandise reshipped .. .. .. .. .. .. .. 210 0 0 £7,861 18 2 C. F. Maxwell, Ist January, 1904. Government Agent, Niue.

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No. 129. Cook and other Islands Administration, Wellington, Sir,— 21st January, 1904. I have to acknowledge the receipt of your letter of the 16th December with reference to subsection (10a) of section 10 of the Order in Council establishing the Cook and other Islands Land Titles Court. The points raised were submitted to the Solicitor-General for his decision, and the following is his reply: — 1. On the whole I think that the words of section 6 of the Act are wide enough to cover subsection ( 10a) of the Order in Council. Subsection (10a) is supplemental to section 15 of the Act. The subsection deals with other than Crown lands, and therefore compensation is provided for. The section deals only with Crown lands, meaning lands the sole and only title to which is in the Crown, and consequently, no compensation is payable. 2. The Court can act under subsection (10a) without a Proclamation being made under section 15. 3. The powers conferred by section 15 may be acted on without reference to the Court, but, as stated above, relate only to Crown lands. Fred. Fitchett, Solicitor-General. 13-1-04. Dr. Fitchett adds that, having regard to the very wide and important powers conferred by the Order in Council, he thinks that when the Act is next before Parliament it would be well to insert a clause validating the Order, and declaring it to be within section 6of the Act. I have made a note of the point, with a view to having the necessary action taken when the opportunity arises. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 130. Cook and other Islands Administration, Wellington, Sib,— 22nd January, 1904. Referring to Ordinance No. 12, 1903, to regulate and insure the attendance of Native children at the various schools established within the Cook Islands, I have to say that the matter was referred to the Hon. the Minister of Education for his opinion as to whether the Ordinance, as drafted and passed, was sufficient to meet the requirements of the case. The Secretary of Education now suggests the addition of the following three clauses in order to make the Act more workable : — 1. A child shall be held to have attended school if he has attended during not less than two hours each time that the school is open. 2. A child shall be held to have attended school regularly if he attends school not less than seven times out of any and every ten consecutive times that the school is open, morning and afternoon attendances being reckoned separately. 3. A child that does not so attend school in accordance with clauses 1 and 2 above shall be deemed to have committed an act of truancy. I enclose a copy of the regulations for attendance of Native children under " The School Attendance Act, 1901." I think the addition of the above clauses is desirable, and, if necessary, another Ordinance should be passed giving effect to their provisions. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 42.

No. 131. Cook and other Islands Administration, Wellington, Sir,— 22nd January, 1904. I am in receipt of your letter of the Ist December suggesting that a reservoir be constructed at Alofi to catch the rain-water from the roof of the Government Building, and so provide the Residency and the villagers with a supply of pure drinking-water. I think the idea is an excellent one, and gladly authorise the expenditure of £29 10s., which you expect will cover the cost of the work. I hope the wells which you propose to sink in other parts of the island will prove successful. In the absence of facilities for collecting iain-water the experiment is well worth making. I have, &c, C. F. Maxwell, Esq., Resident Commissioner, Niue. C. H. Mills.

No. 113

No. 132. Cook and other Islands Administration, Wellington, Sir,— 23rd January, 1904. I have to inform you that His Excellency the Governor has been pleased to appoint Mr. Christopher Freke Maxwell to be Resident Commissioner in the Island of Niue, in accordance with section 4 of " The Cook and other Islands Government Act Amendment Act, 1903." It will be as well if notice to this effect is published in the Cook Islands Gazette. A copy of the Gazette containing the notice of the appointment will be sent to you shortly. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 133. Cook and other Islands Administration, Wellington, Sir,— 23rd January, 1904. Referring to your letter of the 6th October forwarding Niue Island Ordinances Nos. 1 to 11 for assent, I have to say that, with the exception of Nos. 3 and 4, the Ordinances have been passed by the Attorney-General and forwarded to His Excellency for assent. No. 3, the Native Magistrates and Police Ordinance, has been returned to Niue for some alterations suggested by the Attorney-General; and No. 4, the Marriage, Divorce, and Registration Ordinance has been passed by the Attorney-General, but must be reserved for the Royal assent of His Majesty the

No. 81.

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King. I have informed Mr. Maxwell as above, and as he has now been appointed Resident Commissioner of Niue, I will instruct him to send all Ordinances to me direct in future. The two Administrations will then be distinct in every way. I have, <fee, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 134. Cook and other Islands Administration, Wellington, Sir,— 25th January, 1904. I am in receipt of your letter of the 22nd December suggesting that the house intended for the Medical Officer at Rarotonga, for which provision is made on the estimates, should be fitted up here and sent down to Mangaia for Mr. Large, Resident Agent there, and stating that you would then place a sum of £500 on the Cook Islands estimates to provide a good concrete dwelling for Dr. Gatley. lam unable to authorise this transfer of the money however, as the amount was voted for the specific purpose of a residence for the Medical Officer at Rarotonga. Your best course will be to send me a plan of what you consider will be a suitable dwellinghouse for Mr. Large and make provision for it on your estimates, and I will send you the necessary authority to expend the vote for the erection of the doctor's residence at Rarotonga. This can be built of concrete as you suggest, and the cost to the island Government will not be greater than under the scheme you proposed. I am aware of the difficulty Mr. Large is experiencing in finding a suitable residence, and probably the best solution of the difficulty will be to proclaim a piece of land, as you suggest, and have a house erected on it. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 124.

No. 135. Sir,— Rarotonga, Cook Islands, 3rd February, 1904. In reply to your letter No. 174, of the 21st December, I have the honour to inform you that, as a general rule, we do not issue more than three bottles a week of spirits to any one, but in the case of trustworthy Europeans we may issue a case of whisky at a time for consumption in their own houses. In the case of those persons who cannot be trusted we reserve to ourselves the right to refuse to issue even so much as three bottles. I cannot say that the present system is a good one; it is merely a survival of the old arrangement made by Mr. Moss. That it is abused may, I think, be inferred from the fact that the general application is for the whole three bottles even in cases where there is reason to believe that the person holding the permit does not himself consume more than one bottle. There is, as I have said, no law here that really governs the sale of liquor, though I have passed two such laws —viz., " The. Sale of Spirituous Liquors Act, 1899," which I was unable to put in force for the reason that I had no trustworthy person to place in charge; and, secondly, the Publichouse Ordinance, that did not find favour in New Zealand. Under these circumstances it will be necessary to re-enact the first-named Ordinance, which, being based on the Gothenburg system, will probably suit, for it is expedient that there shall be some law governing the whole trade and establishing the principle on which we have always acted--viz., that there shall be no sales of intoxicating liquor to Natives. 1 have, &c, W. E. Gudgeon, Resident Commissioner. Hon. C. H. Mills, Minister for the Islands, Wellington, N.Z.

No. 123.

No. 136. Si R) — Rarotonga, Cook Islands, 3rd February, 1904. I have the honour to acknowledge the receipt of your letter No. 179, of the 21st December, 1903, on the subject of the retention of the "Countess of Ranfurly " as a Government schooner. It is true that we have hitherto succeeded in showing a substantial and increasing surplus at the end of each financial year, and that my letter of the 11th June, 1900, quoted by you, recognises that the cost of the schooner shall be refunded to the New Zealand Government. It is, indeed, an agreement that must be carried out; but, as I have already pointed out to you, the relations between these Islands and New Zealand have changed materially since that date, and I cannot now say that I think it expedient to retain the services of the schooner. I would prefer to sell the boat. The prudential considerations that affect my decision in this case are as follows: 1. That in the tropics we are at any time liable to devastating hurricanes, and therefore we ought to retain a sum of money in the Treasury equal to the expenditure of one year. 2. That we have hitherto derived a very large percentage of our revenue from the sale of stamps, and that we cannot expect these sales will continue to bring in the revenue that they have in the past. 3. That the Customs revenue collected at Rarotonga does not exceed £2,000 per annum, of which sum not less than £700 is due to duty on liquor. This also cannot be depended on, for it appears to me that we must introduce the Gothenburg system, and this will reduce our income by £300. 4. That, under the management of the present captain, the Government schooner cannot pay. Taking into consideration the possibility of a failure in the revenue, and, as I believe, the certainty that we shall always be called upon to find some £700 per annum to supplement the

No. 122.

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earnings of the schooner, I find it impossible to recommend that her services be retained as a Government institution. It is, of course, true that the " Countess " has been of material assistance in developing the Islands, and has enabled me to visit and supervise the Islands in a manner I could not otherwise have done; but I am of opinion that if the " Countess " were sold to-morrow the Union Steamship Company would replace her at once, and that at least one other schooner would be placed in the trade. Traders are now alive to the value of the outlying islands. I have, &0., W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 137. Sir, — Rarotonga, Cook Islands, 4th February, 1904. In reply to your letter No. 181, of the 22nd December, I have the honour to inform you that the introduction of the New Zealand tariff doubled the price of the very thin claret, which is almost a necessity of life in this climate, and completely stopped all sales, so that during the following twelve months none was sold, for the reason that people could not afford to drink claret at 2s. a bottle. This state of things prevailed until the Reverend Mother of the Sisters of St. Joseph became very ill, and it was represented to me by the doctor that these French ladies had always been used to yin ordinaire and ought to have it, but that they could not, as Teaching Sisters of Charity, afford to pay 6s. per gallon on wine that could be bought for 3s. per gallon. Under the above circumstances I decided to refund 4s. a gallon out of the Group revenue, with the result that we now collect some £30 per annum on the 2s. per gallon, whereas at 6s. we got nothing. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 125

No. 138. Sir, — Rarotonga, Cook Islands, 4th February, 1904. I have the honour to acknowledge the receipt of your letter No. 178, of the 17th December. I regret that there seems to be no possibility of establishing a fortnightly steam service to the Cook Islands on a payable footing. The returns received from oranges are at all times very small indeed, and the wonder is that the Natives should continue to ship any fruit to the so-called middlemen to sell, for they receive nothing from them. Moreover, the steamers are so managed as almost invariably to miss the market for us. An instance of this occurred during the last holiday season : our fruit should have been in Auckland just before Christmas Day, but the steamer was so managed that she did not leave Rarotonga for Auckland until that day, and so we lost the sales during the holiday season. When the " Rotokino did arrive in New Zealand there was the week's delay of which Laery and Co. complain, and I submit that the excuse offered by the company's agent does not exonerate them from blame. They put on an old tub and reckon that she will take nine days to do the six daj's' trip, and because she does it in seven days, owing to exceptionally fine weather, the fruit is left in Auckland from Friday to Tuesda}' and is rotten when it arrives in the south, where our only reliable market is. In November Mr S. Davies received £14 net return for his venture; in December, for a similar quantity', he received a debit note for 125., owing to the failure of the Union Company to meet the Auckland cargo. That these things would be less likely to happen if we had a service running south alternately is certain ; but the fruit-sellers here believe that they have always to play second fiddle to Fiji, and, therefore, they will not risk the expenditure incidental to increased production unless there be some sign of protection. That this Group could supply nearly all of the bananas required by New Zealand is, I think, probable, but the methods of the Union Company do not inspire confidence, and I am therefore of opinion that these Islands will extend their fruit production very gradually. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 117.

No. 139. Sir, — Rarotonga, Cook Islands, sth February, 1904. In reply to your letter No. 197, of the 23rd January, I have the honour to inform you that I have ordered a notice for the next Gazette informing the public of the Cook Islands that Mr. C. F. Maxwell has been appointed Resident Commissioner of Niue. The appointment is an excellent one, and will remove the feeling of jealousy that will always exist against Rarotonga so long as Makea lives. That is the true secret of the jealousy. Tongia is a nobody, and Makea does not hesitate to let him know this. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 132

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No. 140. Sik,— Karotonga, Cook Islands, sth February, 1904. In accordance with the instructions contained in your letter No. 184, I have now the ] honour to forward enclosed a plan and description of the house I propose to build for Mr. Large at Mangaia. Mr. Connal estimates the cost at £400, but as the cost at Mangaia may exceed that of Rarotonga by reason of greater difficulty in obtaining material for cement, I will estimate the cost at £450. You will notice that the plan contains a Court-room, which may also be used when required for a landing-store, and in this way save damage to perishable articles in wet weather, since it is my intention to build as near the landing-place as possible. The Courthouse on the hill is claimed by Miringatangi, and for this reason I am altogether against trying to obtain possession of it, since it is not advisable that there should be any cause of dispute between this man and the Government. It is not expedient, moreover, that any Government building should be built on the hill above the real township, for the Resident Agent's offices should be in the midst of his work. I expect the schooner back from Maiden Island about the middle of March, and I will then proceed to Mangaia and select a site for the house. In sending me the authority to commence the doctor's house it would be as well to send us from 10 to 15 tons of Auckland cement by the Union Company's steamer, so that we might get in the foundations and have the work well in hand before the end of the financial year; but an arrangement would be necessary with the company or they will charge £2 per ton freight. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington, N.Z.

No. 134.

No. 141. Sir, — Rarotonga, Cook Islands, sth February, 1904. In reply to your letter No. 196 concerning Ordinance No. 12, 1903, I have the honour to inform you that I have issued the Ordinance in question, for it was much wanted. I do not think that the additional clauses will be required at present, but if they are 1 will have a supplementary Ordinance passed. I need hardly say that the circumstances of these Islands in matters educational differ greatly from New Zealand, and what we seek to deal with are the children who never do attend the school and whose parents take no interest in them. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 130.

No. 142. Sir, — Rarotonga, Cook Islands, sth February, 1904. In reply to your letter No. 173, of the 21st December, I have the honour to report that both Daniela and Miringatangi have been troublesome men at all times, and the very enigmatical letter written by these men means nothing either one way or the other; at the same time I quite understand that they are alarmed at a paragraph in my letter in which I refer to their consistent unfriendliness to Europeans. Your reply to that letter is, however, of importance, and it will prevent any further trouble. I will not appoint Ataa for some time as it will not be necessary to do so. The Arikis' Courts are a survival from the old times. Each independent section has a Court of its own in which the laws are interpreted as the Judge thinks fit, and hence the appeal to you against Miringatangi in Mangaia, he being a notoriously oppressive Judge. The judges of these Courts were in most cases appointed by the Arikis and missionaries, and heard all the cases, whether civil or criminal, of their district. Since 1899 their powers have been restrained and defined by the island statutes, but on the outlying islands they take but little notice of the statutes, and I have frequent appeals from the outrageous decisions given. I do not think that there is any institution in the Cook Islands that better deserves abolition than the Arikis' Court In Aitutaki I succeeded in abolishing that Court by the Statute of Aitutaki in 1899, but the other islands I could not touch. In Mangaia and Rarotonga there should be a Magistrate's Court as soon as possible, but in Mauke, Mitiaro, and Atiu we cannot establish a Court until we are in a position to pa) . Resident Agents in those islands. In Rarotonga, Makea and Pa are the Judges of the Court, and were it not that there is great jealousy between the chiefs I would suggest Pa as a man who would make an excellent Magistrate. As it is I fear to recommend this step for the heartburnings would be too great, and therefore the Magistrate must be a European. I have, <fee., W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 121,

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No. 143. Sir,- Rarotonga, Cook Islands, Bth February, 1904. I have the honour to forward herewith Ordinance No. 4 of the Ilarotonga Council, an Ordinance to restrain and regulate the Sale of Spirituous Liquors. There are in reality two Ordinances which I have forwarded as alternative, inasmuch as one of them introduces the Gothenburg system, and I am not clear how far you may be in sympathy with that system. The other merely defines and improves the present custom of the Islands and gives it the force of law. I am myself strongly in favour of the Gothenburg system. You will notice that I have included Chinamen among the prohibited parties. This is necessary or no measure passed could be a success. I have also in section 8 allowed claret to be sold by outside persons. This I have done because the yin ordinaire called " claret " here is not intoxicating and is used by visitors, who can thus buy a bottle from a store and take it to the boardinghouse where they have their dinners. Such people will not come to the bond for their claret. But my chief reason is this, that the claret is so poor a wine that the utmost care has to be taken in the bottling, and it is very apt to turn into vinegar. I would therefore prefer to leave it in private hands. I have the honour to request that you will choose between these two Ordinances. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

Enclosures. Rarotonga Council Ordinance No. 4. —An Ordinance to regulate the Sale of Spirituous Liquor within the Island of Rakotonga. Be it enacted by the Island Council of Rarotonga, — 1. The Short Title of this Ordinance is "The Sale of Spirituous Liquor Restriction Act, 1904." 2. From and after the date on which this Ordinance shall become law, the importation of beer, wine, and spirits shall, so far as private enterprise is concerned, cease absolutely; but it shall be lawful for the Collector of Customs, with the approval of the Resident Commissioner, to import such spirituous liquor as may be necessary to carry out the provisions of this Ordinance. Any one who shall infringe the provisions of this section shall be liable on conviction to a fine of not exceeding one hundred pounds sterling. 3. Immediately after the date on which this Ordinance shall come into operation, the Collector of Customs may take possession of all the intoxicating liquor on the Island of Rarotonga, and may pay such compensation to the owners thereof as may be arranged between the said owners on the one part and the Collector of Customs acting for the Government on the other. Provided always that the owner of any of the liquor as aforesaid may re-export the same if he objects to the compensation offered. Provided also that the Collector of Customs may refuse to take over any liquor which in his opinion is unsaleable, or of inferior quality. 4. The Collector of Customs at the Port of Rarotonga shall be the officer to administer this Ordinance. Provided always that should a boardinghouse be erected for the accommodation of visitors to these Islands, the Resident Commissioner may appoint the owner or manager of such house to sell liquor on behalf of the Government, subject to such regulations as may be necessary, and mayauthorise that the liquor be sold in the accommodation-house aforesaid, and, further, may pay a salary to the person authorised to sell liquor as a Government servant. 5. In order to give effect to this Ordinance, the Resident Commissioner may make regulations and do all things necessary to secure the proper administration of the Ordinance, and shall report annually to the Minister in Charge of the Islands the steps taken and profits made during the year. All regulations made and gazetted in the Cook Islands Gazette shall have force of law, and any breach thereof shall be punishable under this Act. 6. No spirituous liquor shall be sold or given to any native Polynesian except on the written authority of the Resident Medical Officer, and for the purposes of this Ordinance all Chinamen shall be deemed to be Native inhabitants of Rarotonga. 7. All offences under this Act shall be heard in the High Court of the Cook Islands, and this tribunal may issue prohibition order against any person on cause being shown. 8. Notwithstanding anything contained in section two of this Ordinance, the Collector of Customs may grant permission to any trader of good character to import and sell the light wine known as " claret." Provided that each and every shipment shall be placed in the bond and issued thence by the Collector as required; that not more that six bottles nor less than one of such claret shall be sold to any person at one time except by permission of the Collector of Customs, and that each sale shall be recorded in a book to be kept by the trader; that no claret shall be sold to any person prohibited under sections six and seven of this Ordinance. 9. Any person who shall manufacture the liquor known as " bush beer," or shall in any way aid or abet in the manufacture or drinking of the same, shall, on conviction, be liable to a penalty of not exceeding five pounds sterling.

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10. Any person who shall distil or manufacture any intoxicating liquor other than bush beer, or shall aid or abet in the distillation thereof shall, on conviction, be liable to a fine of not exceeding one hundred pounds sterling. 11. Any person evading or attempting to evade any of the provisions of this Ordinance, or any regulations made thereunder for which no penalty has been provided, shall, for each offence, be liable to a fine of not exceeding twenty pounds or in default six months' hard labour. 12. All offences under this Ordinance may be ptinished by imprisonment with hard labour in default of payment of fine. S. Savage, t» ~,. „,, j . -c, , lflri . Clerk to Council. Passed this Bth day of February, 1904. [Assented to by the Governor, sth July, 1904.]

[Alternative.] Rarotonga Council Ordinance No. 4. —An Ordinance to regulate the Sale of Spirituous Liquor withcn the Island of Rarotonga. Be it enacted by the Island Council of Rarotonga, — 1. The Short Title of this Ordinance is "The Sale of Spirituous Liquor Restriction Ordinance, 1904." 2. All spirituous liquors imported into the Island of Rarotonga, whether under bond or dutypaid, shall immediately after landing be placed in the Government bond, and shall only be issued thence under the orders or direction of the Collector of Customs. 3. No spirituous liquor shall be issued from the Government bond except at the discretion of the Collector of Customs, subject to any regulations which ma} - be made under this Ordinance. 4. The Resident Commissioner may make regulations in aid of this Ordinance, and any breach of such regulations shall be punishable as a breach of the Ordinance. 5. No spirituous liquor shall be sold or given to any Native inhabitant of any Polynesian island, except on the written permission of the Resident Medical Officer. For the purposes of this Ordinance all Chinamen shall be deemed to be Native inhabitants of Rarotonga. 6. The Collector of Customs may grant permission to an)' trader of good character to sell the light wine known in Rarotonga as " claret." Provided that such wine shall be issued out of the bond to the trader; that a book shall be kept for the inspection of the Collector of Customs, accounting for all sales made; that no claret shall be sold to persons prohibited by section five of this Ordinance, or to any person against whom a prohibition order may have been issued by a Court of competent jurisdiction. 7. The High Court of the Cook Islands may in the interests of the public issue prohibition orders against any person on cause being shown. 8. Any person evading or attempting to evade any of the provisions of this Ordinance shall, for each offence, be liable to a penalty of not exceeding twent) 7 pounds or in default six months' hard labour. Passed this Bth day of February, 1904. S. Savage, Clerk to the Council.

No. 144. Sir, — Rarotonga, Cook Islands, 25th February,l9o4. I have the honour to forward attached the Manihiki Local Ordinance No. 1, signed by the President of the Council, H. Williams. It is a pity that this Ordinance could not have been approved from the first, inasmuch as it was taken from the Council-book as it now stands, and is an exact translation of the measure as passed by the Council. There is no one in the Northern Islands who can reduce a Maori Ordinance into understandable English, and for this reason the Natives send their book to me to draft therefrom the laws they pass. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 145. Sir,— Niue, 25th February, 1904. I have the honour to acknowledge receipt of your letter of the 7th December, 1903, enclosing a copy of " The Cook and other Islands Government Act Amendment Act, 1903," together with a copy of the Gazette containing the Order in Council. Your telegram reached me on the 28th December, 1903, and I at once reduced the duty on tobacco in accordance therewith. I anticipate that demands for refund will shortly be made by traders who have paid 3s. 6d. per pound duty during the 10th to 28th December. I should be glad of your instructions as to whether I should make such refund of 2s. 6d. per pound on all tobacco invoiced at Is. per pound or less. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington, B—A. 3,

No. 115.

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No. 146. Sir,-- Niue, 25th February, 1904. I have the honour to acknowledge the receipt of your letter No. 110, of the 15th October, 1903, with reference to having a boat-channel made through the reef at Tuapa. I am afraid the work that could be accomplished by a warship in the short time at her disposal would be of very little practical utility, as the lagoon inside the lip of the reef is too shallow to admit of the passage of boats to the shore, and to cut a passage the whole way would reqviire many weeks' labour to drill and blast out the coral rock. However, upon the arrival of the warship we will see what can be done, and I will furnish any labour required. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 86.

No. 147. Sin, — Rarotonga, Cook Islands, 27th February, 1904. Remarks having been made by certain of the members of the House of Representatives who visited Penrhyn to the effect that the lepers did not receive proper food, I have now the honour to forward a report from Captain Nagle on the subject, together with an account of receipts and expenditure, showing that $296 has been expended in the purchase of food. It does not appear to have entered the minds of those who visited the lepers that they were in a measure independent of outside supplies, having all the nuts of the most fertile island of the lagoon at their disposal. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 101.

No. 148. Sir,— Niue, 27th February, 1904. In my letter to you, No. 130, of the 31st December, 1903, I alluded to your plan for the purchase of the schooner "Countess of Ranfurly " by the Islands, letter dated 21st September, and received 28th December, 1903. I have since had an opportunity of hearing Colonel Gudgeon's views on the subject. He appears to think that, in view of the decrease in revenue arising from so much of the duties on goods for the Islands being retained in New Zealand, it would be better to sell the " Countess " than for us to attempt to purchase her. This argument might also apply to Niue, for now the duty on tobacco is reduced there is likely to be a considerable falling-off in the revenue. At the same time I think it would be a pity if the schooner were sold, as we should then be absolutely dependent on the " Ysabel " and at the mercy of Messrs. Vines, Utting, and Perston as regards freights. Niue occupies rather a peculiar position ; the bulk of her produce (copra) goes to Tonga, hats and fungus only being shipped to Auckland. An unfortunate circumstance is that almost the whole of her export trade is in the hands of men who are not free agents — i.e., are obliged to ship by the vessels belonging to or chartered by their firms. If the " Countess " made periodical trips to Tonga and Auckland, as we should expect if we subsidised her, she would be sure of support. A service to the eastward, Aitutaki, &c, would be of little use to us. In order to make the vessel a success she' should be run on different lines from hitherto, and a change made in the command. I do not know upon what basis the proportion of instalment under the scale to be adopted payable by Niue would be computed, whether population or volume of trade, or how any deficiency would be met if the schooner did not pay expenses. If by the Islands, she would probably prove a white elephant, and have to be sold. At the same time, if arrangements on the lines promised by you can be made to credit the Islands with even two-thirds of the duty on goods shipped to them from New Zealand, I am confident we could buy the vessel outright in a very short time. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 71.

No. 149. Sir,— Niue, Ist March, 1904. In reply to your letter No. 185, of the 30th October, 1903, giving prices for moorings, I have the honour to state that shipmasters with whom I have discussed the matter think a If in. stud-cable would be sufficiently stout for the purpose. This would cost approximately £80 or £90 for 60 fathoms. As an anchor is available, it would only be necessary to obtain a buoy and necessary gear, which would cost, say, £40 : cost of laying and contingencies, £20. The total cost of the moorings should not exceed £150. Tf too-heavy moorings were put down it would be diffi-

No. 99.

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cult, if not impossible, for the "Countess," with her light lifting-gear, to overhaul them when necessary. The object is merely to provide a means of mooring while working cargo. If the wind came in strong from the westward the vessel could unmoor and put to sea in a very short time, whereas at present a shipmaster would have to slip his cable, without much chance of recovering it again, or run great risk of going ashore while trying to heave it in. Steamers, of course, are in a different position. Outside of the three landings on the western or lee side of the island there is no place, except Mutalau, where goods could be landed; and that is no dangerous that few vessels ever go there. Even Captain Ross, the most experienced master who visits Niue, will never go there under any circumstances. As it is not a matter of extreme urgency, and roads are the first consideration, the matter might stand over for the present. I should be glad, however, to ascertain the cost of a suitable buoy and gear proportionate to alf in. cable. I shall ask Captain Worsley to raise the anchor referred to at the first opportunity so that I may have it put in order. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 150. Sib,— Niue, Bth March, 1904. I have the honour to submit to you herewith Schedules A, B, C, and D, showing the extent of roads constructed, the average cost per chain, and the total cost of same, to the 31st March, 1904. As no more road-work will be executed this month, I have taken the period to the 31st instant for convenience. Schedule A is a continuation of the schedule already sent to you, and shows remainder of expenditure to end of year. Schedule B shows total expenditure on roads during 1903, totalling ,£239 15s. Schedule C shows expenditure to 31st March, 1904, totalling £341 7s. 3d. Schedule D gives the results of operations from the 13th July, 1903, when paid road-work was commenced, to the 31st March, 1904. A total length of 636 chains, or 7 miles 76 chains, of roads has been constructed at a cost of ,£572 9s. 3d., averaging a fraction of a penny over 18s. per chain. The jetty approach and rockcutting cannot fairly be included in road-chainage, so I have shown them separately. I will now explain why I have so much exceeded the authorised expenditure. Through the failure of the taro-crop the Natives were straitened for food, and had to rely on European food to supplement their scanty resources. They asked for road-work to help them. Having the necessary data, I gave five villages piecework at rates which I knew would permit them to make about Is. 6d. per day. Their rates varied from Is. 6d. per fathom (which is their method of reckoning work) for ordinary formation to 3s. per fathom for blasting solid rock and filling. Whole villages turned out to work, and a greater chainage was completed than I had anticipated. Of course the wages made were small —from 6d. to Is. 3d. per day—but the work was done to my satisfaction, and I had ample funds to pay for it. I have discontinued work on account of running short of detonators, but I am most anxious to resume operations of so much importance and benefit to the island. lam having completed roads sown with grass-roots, as I have no seed at present. Cocoanuts will also be planted on either side of the roads. I have out a broad road to the jetty, graded for cart traffic. I am confident I can rely on your indulgence in this matter of expenditure, as circumstances are exceptional. You will recognise that when five or six hundred people begin work £200 does not go very far. One hundred and fifty-five chains of this work is quite new road, and the remainder remaking and widening former roads or tracks. I estimate that it will require fully £3,000 to place all the Niue roads in first-class condition. The road-work done by the Natives here in the past is worth from £1,500 to £2,000. An encouraging feature of roads in this island is that once made they are permanent, and compare favourably with roads in many parts of New Zealand in this respect. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 96

Enclosures. A. Expenditure on Roads in Niue, 24th October to 31st December, 1903.

C. F. Maxwell, 31st March, 1.904. Resident Commissioner, Niue.

Name of Ro&d. Number oi Chains. AveI %gJj£ st per Total Cost. Remarks. Alofi-Tuapa Liku Road Alofi South Eoad 24 17 24 £ s. d. 0 19 10i 0 7 7f 0 19 ll| £ s. d. 23 17 0 6 10 0 23 19 0 16 ft. wide. 12 ft. wide. 16 ft. wide. Total 65 0 16 8J 54 6 0

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B. Total Expenditure on Roads, Niue, during 1903

C. F. Maxwell, 31st March, 1904. Eesident Commissioner, Niue.

C. Expenditure on Roads, Niue, Ist January to 31st March, 1904.

Name of Koad. Number of Chains. Ayox^^° st per Total Cost. Remarks. £ s. d. £ s. d. Alofi-Avatele .. .. .. .. 127J 019 OJ 121 11 0 16 ft. wide. Alofi-Tuapa .. .. .. .. 179| 0 17 5£ 156 14 3 16 ft. wide. Alofl-Liku .. .. .. .. 66 0 16 6 54 9 0 14 ft. wide. i I Total for roads .. .. 373| 0 17 9| 332 14 3

Jetty approach ... ... ... ... 730 Rock-cutting ... ... ... ... 1 10 0 Total ... ... ... ... £341 7 3 C. F. Maxwell, 31et March, 1904. Resident Commissioner, Niue.

D. Expenditure on Roads, Niue. Total extent of roads constructed from the 13th July, 1903, to the 31st March, 1904, 7 miles 76 chains (636 chains); average cost per chain, 18s. 0.024 d.; total cost, £572 9s. 3d. C. F. Maxwell, 31st March, 1904. Resident Commissioner, Niue.

No. 151. Cook and other Islands Administration, Wellington, Sir,— 9th March, 1904. I am in receipt of your letter of the sth February, with reference to certain additional provisions proposed in connection with " The School Attendance Ordinance, 1903," and note that you are of opinion that the additional clauses are not necessary at present, but that if it should be found advisable to enact them you will have a supplementary Ordinance passed for that purpose. I have, ore, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 141.

No. 152. Sib,— Niue, 17th March, 1904. I have the honour to forward to you herewith a letter from Dr. S. H. Davies, the London Missionary Society's missionary in charge here, pointing out the advisability of having the Native population of this island vaccinated. I can indorse all he says. By last census we had a Native population of over four thousand, and of these a few individuals only were vaccinated some thirty years ago, so that protection against small-pox is practically non-existent. Will you be so good as to cause application to be made to the proper authorities for a supply of vaccine to be sent here by first opportunity. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

Name of Koad. Number of Chains. Avel^ a ?° st per Total Cost. Kemarks. New Road, Alofi South .. Liku Road Alofi Road Alofi-Tuapa Road Total £ s. a. 28 16 8 67 0 9 8J 44 10 5 124 1 0 If 263 0 18 2§ l__ H a. d. 37 7 0 ! 16 ft. wide. 32 10 0 12 ft. wide. 44 19 0 i 18 ft. wide. 124 19 0 ! 16 ft. wide. 239 15 0 I

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Enclosure. Sib,— Alofi, Niue, 17th March, 1904. You are aware that we have a large unvaccinated population on this island. In the event of small-pox being introduced hero there would inevitably be a great mortality. It is therefore expedient to have the people vaccinated. Small-pox is now prevalent in New Zealand, and it is quite possible for it to be introduced here. I have been informed that in both German and United States Samoa the population have been vaccinated since the establishment of the new rule. I would therefore suggest that you ask the authorities (Public Health Department) to send us a sufficient supply of glycerinated calf-lymph. I fear the humanised lymph (or arm-to-arm vaccination) would not be suitable here lest syphilis, &c, might be increased among a population whose physical condition is now by no means satisfactory. Yours, &c, C. F. Maxwell, Esq. S. H. Davie*.

No. 153. Cook and other Islands Administration, Wellington, Sib,— 18th March, 1904. Replying to your letter of the sth February No. 7/1904, I am glad to hear that you think there will be no more trouble at Mangaia. I quite realise the force of what you say with regard to the Arikis' Courts, and the sooner we can establish a European Court at each island the better for the Natives. Do I understand you to say that the Islands of Atiu, Mitiaro, and Mauke are not yet sufficiently self-supporting to warrant the appointment of Magistrates? I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 142.

No. 154. Cook and other Islands Administration, Wellington, Sir,— 18th March, 1904. Your letter of the Bth February is to hand, forwarding two alternative Ordinances, No. 4, dealing with the liquor question. These will be discussed in Cabinet as soon as possible, and I will then advise you as to what course is decided upon. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 143.

No. 155. Cook and other Islands Administration, Wellington, Sir,— 18th March, 1904. I am in receipt of your letter of the sth February, No. 13/1904, with reference to a house for Mr. Large at Mangaia. The plan forwarded seems to be a most suitable one, and I have no doubt that in your hands the work will be carefully carried out. Please have it proceeded with as soon as possible. With regard to the site, I can only leave the selection of this to yourself. I agree with you that the Resident Agent's office should be in the position must suitable for carrying on his work. I have communicated with the Union Company's ageut here, Mr. W. A. Kenned}% with reference to sending 15 tons of cement down from Auckland by one of the company's steamers, and when he has stated what the charge for freight will be I will send you a wire. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 140.

No. 156. Cook and other Islands Administration, Wellington. Sir,— 18th March, 1904. I have to acknowledge the receipt of your letter of the 4th February, No. 6/1904, witl> reference to remitting a portion of the duty on claret. I will write you again on this 'natter. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills-

No. 137.

No. 157. Cook and other Islands Administration, Wellington, Sir,— 19th March, 1904. When in Aitutaki last year the question of the wharf was mentioned. It was stated that it was desired to raise it and improve it, and some monetary assistance was asked for. Mr. Large also, in a report made since my visit, referred to the necessity for building up the wharf another 3 ft. in height, so as to protect it against damage from the heavy swells that come in from the westward. I shall be glad to hear what you consider is necessary to make the wharf really serviceable, and what you estimate the cost of the work would be. I have, <fee, Mr. J. C. Cameron, Resident Agent, Aitutaki. C. H. Mills.

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No. 158. Cook and other Islands Administration, Wellington, SIR,— 19th March, 1904. Referring to your letter of the 31st March last recommending that the lagoons at Penrhyu and Manihiki should be declared to be the property of His Majesty and set aside as reserves for pearl-shell fishing, I now beg to enclose a draft Proclamation in respect of each island which I have had prepared by the Solicitor-General. You will notice that they are drafted to some extent on the lines of your letter,, but the Solicitor-General states that before the matter can be finally settled a description of each island will be needed, and that the details of the conditions for management of each reserve should be ascertained with more particularity than is given in your letter. I shall be glad, therefore, if you will complete these drafts by supplying particulars for the schedule, and adding to the details of the condition anything that you think may help towards the successful administration of the reserves. The Attorney-General is of opinion that, notwithstanding these proclamations, questions may still arise as to the rights of the Natives respecting pearl-shell fishing and taking turtle, and he recommends that an Act be passed next session to place the matter on a perfectly satisfactory basis. I will accordingly take steps to have this done. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 8

No. 159. Education Department, Wellington, 19th March, 1904. Memorandum for Hon. C. H. Mills. In reference to the question of education in the Cook and other islands, which was the subject of our conversation yesterday, I have the honour to set forth what appear to me to be the chief points to be considered before a solution is arrived at. 1. What language is to be used in the schools: At present, as far as I can gather, both English and Maori are used, although I find that " The Public Schools Act, 1895," passed by the Arikis of Rarotonga, prescribes that " The English language shall be used in teaching in the schools "; and this agrees with the stead) r policy adopted in the Maori village schools in New Zealand, it being recognised that one of the most potent factors in raising the Maoris to an English standard of living will be teaching them the use of English speech and English books and newspapers. The use of the two languages in a school does not, under ordinary circumstances, tend to efficiency. 2. I assume, therefore, the use of English in the schools. This necessarily implies teachers who can speak English well. These must either be British-born teachers or Maoris trained for several years where English is spoken. English teachers, with a sprinkling of English-speaking Maoris, would, I am inclined to think, be the most satisfactory; but the plan would be more expensive than the employment of Native teachers. The latter would, however, have to be trained, and it would take several years to produce sufficient trained teachers to supply all the schools which would be needed in the Islands. We might get a few who had been through Te Aute, St. Stephen's, or Hukarere, who would help to bridge over the interval; but I am, on the whole, inclined to think that it would be well to fill the positions in the interim with English teachers, or to postpone the opening of the new schools until trained Native teachers are available, especially us in some parts of the Group the Natives do not yet seem anxious to send their children to school regularly. (Some of those who have been pupils at the Tereora School may be trained well enough for the work.) The question is, what teachers are to be employed (1) now, (2) eventually? 3. If Natives are to be employed eventually, their training ought to be begun at once. The training could be given them by sending them for four or five years to, say, one or other of the higher schools for the education of Maoris in New Zealand; but such a plan might not be altogether satisfactory to the Islanders, and would cost probably three or four times as much as training them at the Tereora School, modified, as it would probably have to be, to serve more fully the purpose of a training-college as well as that of a school. A well-qualified master and mistress would probabaly be a sufficient English staff; and it would tend to real economy to give fairly good salaries to them, to make sure that the Native teachers were really well trained. 4. The control of the schools is a question of policy, but it is an important one. Secular teaching during, say, four hours a day would not be inconsistent with the use of the schools for religious instruction out of school-hours by the denominations represented on the Islands. Government control would imply that the whole cost was borne by the Government, or by the Government and the people locally. 5. The question of cost —involving erection and maintenance of buildings, payment of salaries of teachers, apparatus and school books, and material —is another aspect of the question to be considered. Probably a solution might be found by requiring the people of each locality to provide the buildings and keep them in order, the Government paying all or.her expenses, say, at the rate of £2 a head if the teachers are Natives, and at the rate of £4 a head if the teachers are European. I feel so much the small amount of information available to enable me to form a judgment with any confidence that 1 venture to suggest that it would be well to exercise caution in any steps that may be taken ; indeed, I am not at all sure that the wisest thing to do might not be to send some one with experience in Maori-school matters, such as Mr. Pope, if his health were good enough to enable him to go, to inquire into the conditions of the problem on the spot and report to the Government. I have, however, full confidence in saying that a mistake could not well be made if, in the first instance, steps were taken to train up a body of English-speaking Natives to teach their fellowcountrymen . G. HOGBBN.

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No. 160. Cook and other Islands Administration, Wellington, Sui, 21st March, 1904. 1 have to acknowledge the receipt of your letter of the 3rd February with reference to * the purchase of the "Countess of Ranfurly " by the Islands, and the question of retaining her services or otherwise. You say that the agreement made as to refunding to the New Zealand Government the cost of the schooner is one that must be carried out. If this is so, the question is what is the best way in which to give effect to it ? I can submit no better plan than that contained in the annual-instal-ment tables sent you, and I think that under different management the vessel's upkeep will be materially reduced. I note the prudential considerations that have determined your opinion that the vessel should be disposed of, but, as to No. 1, the question to my mind is, do hurricanes come annually, or only at intervals of some years? If the latter, Ido not think it necessary to retain a sum "equal to a whole year's expenditure. A smaller sum in reserve would, I think, meet the case. Reasons Nos. 2 and 3 are embryo ones at present, and No. 4 will disappear entirely when the schooner arrives in Auckland. Further, you have advised me in a later letter that you think that under different management we should be justified in keeping her for at least another twelve months. Under all the circumstances, therefore, I think it will be best for both the Cook Islands and Niue to adopt the scheme I have suggested, and place the purchase of the schooner on a proper business basis. I have, <fee, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 136.

No. 161. Cook and other Islands Administration, Wellington, Sir,— 22nd March, 1904. Referring to the question of charging duty on Natives' luggage, &c, when they return to the island after being away, you will remember that when the matter was submitted to me by the Natives at Alofi I pointed out that under the New Zealand tariff an exemption of £100 was allowed on a passenger's personal effects. The following is the provision in full: — " Passengers' baggage and effects, including only wearing apparel and other personal effects that have been worn or are in use by persons arriving in the colony; also implements, instruments, and tools of trade, occupation, or employment of such persons; and household or other effects not exceeding .£lOO in value which have been in use for twelve months prior to embarkation by the persons or families bringing them to the colony, and not intended for any other person or persons or for sale (including bicycles which have been in use for twelve months); also cabin-furnishings belonging to such persons." This would appear to cover the cases mentioned by the Natives, and there is probably very little duty, if any, chargeable. It does not exempt them from liability to have their luggage examined, however. It was stated that "they did not wish the articles to be valued separately," but wanted duty charged on the box as a whole. To allow this would mean giving an opportunity to introduce dutiable goods free. 1 shall be glad if you will explain the position to those interested, and write me on the question generally. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 162. Cook and other Islands Administration, Wellington, Sm,~ 22nd March, 1904. In your letter of the 6th October last, with reference to establishing a second service between New Zealand and the Cook Islands, you stated that the matter would have to be considered by the directors of the company, and that I would probably receive a communication from your general manager on the subject. Up to the present, however, no letter has come to hand from your Dunedin office I would like to know the views of your company on this matter. Yours, &c, The Manager, Union Steamship Company (Limited), Wellington. C. H. Mills.

No. 83.

No. 163. Cook and other Islands Administration, Wellington, Sir,— 22nd March, 1904. I return herewith the following Ordinances of the Niue Island Council, which have been assented to by His Excellency the Governor: — No. 1. Niue Island Council Constitution Ordinance, 1902. No. 2. Revenue of Niue Ordinance, 1903. No. 5. Emigration Ordinance, 1903. No. 6 Importation of Spirituous Liquor Ordinance, 1903. No. 7. Niue Island Arms Ordinance, 1903. No. 8. Niue Island Private Debt Ordinance, 1903. No. 9. Niue Island Site for Government Buildings Ordinance, 1903 No. 10. Validation Ordinance, 1903. No. 11. Niue Island Weekly Half-holiday Ordinance, 1903. " The Native Magistrates and Police Ordinance, 1903 " (No. 3) is returned herewith for amendment in accordance with the suggestions of the Attorney-General attached,

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"The Marriage, Divorce, and Registration Ordinance" (No. 4) was recommended by the Attorney-General to be reserved for the signification of His Majesty's pleasure thereon, in accordance with the usual procedure with Acts affecting the marriage laws of the colony ; but on the direction of the Governor steps are now being taken to pass an Order in Council introducing into Niue such portions of the New Zealand marriage and divorce law as will give effect to the imiin features of the Ordinance. As the administration of Niue has now been separated from that of Rarotonga, you will please forward youi Ordinances direct to me in future. In some cases you left the year blank in the heading and Short Title of the Ordinance, and in the Constitution Ordinance the date to which the members of the Council shall hold office was also omitted. These have been filled in here, but it will be better if you can forward the Ordinances complete in every respect, as the SolicitorGeneral iE of opinion that they should be assented to by the Governor as they Bland or r,ot at all, there being no power to alter them here. The Ordinance should bear the year in which it is passed, although it may not receive the Governor's assent until the following year. It is doubtful if we have any right here to alter an Ordinance, even to the extent of adding a date. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 164. Sib,— Epsom, Auckland, 29th March, 1904. Since you kindly granted me an interview last February I have received a copy of "The Niue Island Importation of Spirituous Liquor Ordinance, 1903." This Ordinance seems to meet most of the requirements of the island in this matter, except that since Niue has been governed from New Zealand intoxicating liquor has been imported to the island in large quantities, and placed in bond and sold by the importers to the foreign residents. The effect that this liquor has had on those people who have drunk to excess is an object-lesson to the Natives of Niue, who believe that if intoxicants are imported for sale it will be a source of dissipation and crime to the Natives, who up to recently have been a totally abstaining people. Hence the petition for total prohibition sent by the people of Niue to His Excellency Lord Ranfurly. I think that the chiefs and people of Niue do not oppose the importation of liquor by white residents for their private use, but what they object to is importation of liquor for sale on Niue. For, although the law prohibits the sale of liquor to the Natives they do obtain it, and it is difficult and perhaps impossible to convict offenders as the Natives are very reticent as to whom they receive the liquor from. I may add that when liquor is sold on isolated islands like Niue where resident whites have so much leisure, &c, it is a snare to many a young fellow who would not drink to excess if the liquor was not imported for sale. We have seen many sad cases of drunkenness during the past two or three years, and such cases were unknown until liquor was imported to Niue for sale. I shall be pleased to give any further information on Niue matters if required. I have, &c, R. H. Head. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

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No. 165. Sir, — Eastern Pacific, Rarotonga, 30th March, 1904. In reply to your letter of the 18th March, No. 13, I have'the honour to inform you that in the case of Atiu, Mauke, and Mitiaro the exports and circumstances of the islands are scarcely sufficient at present to justify the appointment of Resident Agents. For an Agent would be of but little use unless he were a capable man, and to obtain such a man would mean £150 per annum. I am, however, of opinion that Atiu will never be opened up for settlement by Europeans unless we do station an officer there, and though there is no hurry in this case it must be held in contemplation. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

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No. 166. Sib, — Rarotonga, Cook Islands, 30th March, 1904. I have the honour to acknowledge the receipt of your letter of the 19th instant, No. 24, enclosing draft proclamations affecting the pearl-shell lagoons within the boundaries of New Zealand. In pursuance of your instructions, I attach hereto descriptions of the Penrhyu, Manihiki, and Aitutaki lagoons, in which I exclude all islands from the operations of the proclamation. The Islands of Suwarrow and Palmerston I have not dealt with, since I presume that the lagoons have been included in the leases executed in favour of the Masters family and the Pacific Trading

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Company. No doubt these proclamations would strengthen my hands, but I doubt whether it would be safe to make any radical change until the matter of the proclamation has been embodied in a statute, for if the point were raised it would be difficult to show that Crown lands existed within the Pacific. With respect to furnishing details as to the management of each lagoon, I have the honour to submit for your consideration that in a new matter, such as this, the fewer regulations by which we are bound the better. Whenever an Act is passed making the lagoons Crown property, I propose to go north and consult the Councils and the principal traders as to the steps to be taken and regulations made, and by this method hope to establish a system suitable to all. I would, however, add the following to the proclamation : — " The Kesident Commissioner shall embody all approved resolutions of the Island Councils into regulations for the better government of the pearl-fisheries, and may add thereto such other regulations as he may find necessary after consultation with the traders and Council as aforesaid. " The words ' foreigners ' and ' alien ' shall mean any person other than a natural-born or naturalised subject of His Majesty." I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

I Enclosure. Schedule to Proclamation. Penrhyn Lagoon. All of the inland sea or lagoon enclosed by the reef and islands of the Penrhyn atoll, excluding only the islands within the reef. Commencing on the south side of the Taruia entrance; thence south-east and east to the Omoka Village ; thence by the shores of the lagoon east, north, and west to the Village of Te Tautua; and thence west and south by the island known as Mqrokai to the point of commencement. ManiEiki Lagoon. All of the inland sea enclosed by the reef and islands known as Maiiihiki. Commencing at the Village of Tauhunu; thence by the shores of the lagoon to the Village of Tukao; and thence by the reef and islands along the shore of the lagoon to the point of commencement: excluding, however, all the islands within the lagoon. Aitutaki Lagoon. All of the waters of the lagoon enclosed within the barrier reef of Aitutaki. Commencing on the shores of the lagoon at the island of Mama; thence north by the reef to the ship-passage opposite the Village of Arutanga; thence to the stone wharf of that village; thence west and north by the coast-line of Aitutaki to the Village of Vaipae; thence by the coast of Aitutaki and the barrier reef to the point of commencement: but excluding all the islands within the reef. W. E. Gudgeon, Resident Commissioner.

No. 167. Sir,— Niue, 2nd April, 1904. I have the honour to submit to you herewith a statement of the Niue Island revenue for the quarter ended the 31st March. You will gather from it that the total receipts from all sources for the period amounted to £369 7s. Id., and the disbursements to £449 145.; the expenditure on roads accounting for the greater part of this sum. Full particulars of this item have already been forwarded to you, via Sydney, on the 11th March. The cash balance in hand is £661 9s. 6d., and I have remitted £359 ss. 3d. to the Bank of New Zealand to credit of Niue Island Account. The credit balance in bank on the 31st ultimo, as closely as I could arrive at it without the pass-book, was £399 os. 10d., and the total funds to credit of this island on that date amounted to £2,117 7s. 3d., to which interest due and proceeds of stamp-sales in Auckland have to be added. A considerable sum will have to be refunded, being difference of duty on tobacco paid before advice of the reduction reached Niue, and after the Order in Council had been made. I have written to you for instructions regarding this refund. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington. 9—A. 3.

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Enclosures. Niuk Island Revenue Account for Quarter ended 31st March, 1904. 1904. Dr. £ s. d. 1904. Cr. £ s. d. Receipts. Disbursements. Balance from 31st December, 1903 1,101 1 8 Horse-feed .. .. .. 5 5 9 Customs receipts .. .. 333 19 7 Office-rent .. .. .. 1 10 0 Trading licenses .. .. 3 0 0 Survey labour .. .. .. 12 12 0 Fines and fees .. .. .. 18 19 0 Labour .. .. .. .. 17 4 0 Shipping .. .. .. 1 19 0 Refunds .. .. .. .. 6 7 4 Miscellaneous .. .. .. 12 0 Sundries.. .. .. .. 4 19 Emigration fees .. .. 5 10 0 Purchase of horse .. .. .. 15 0 0 Sale of tobacco .. .. .. 417 6 Road expenditure.. .. .. 341 7 3 Stationery .. .. .. 19 6 Stamps for office .. .. .. 0 5 0 Compensation for trees .. .. 11 6 0 Timber .. .. .. .. 0 10 0 Canoe-hire .. .. .. 0 8 0 Freight .. .. .. .. 0 5 1 Allowance to police .. .. 1 10 0 Survey material .. .. .. 7 5 1 Food for prisoners' .. .. 1 18 3 Damages .. .. .. 0 16 0 Allowance to Councillors .. .. 218 0 Interpreter .. .. .. 0 15 0 Assistant's salary .. .. .. 17 0 0 £449 14 0 Remitted to Bank of New Zealand .. 359 5 3 Mar. 31 Cash in hand .. .. .. 661 9 6 £1,470 8 9 £1,470 8 9 C. F. Maxwell, Ist April, 1904. Resident Commissioner, Niue.

Niue Island Account, Bank of New Zealand, Auckland. 1904. Dr. £ s. d. 1904. Cr. £ s. d. Brought forward .. .. 1,074 6 9 Brought forward .. .. 684 16 3 Draft, Bank of Australasia .. 218 0 P. F. Colledge .. .. .. 3 5 6 Lever's Pacific Plantations 32 0 0 Upton & Co. .. .. .. 12 0 Expenses of Auditor .. .. 21 0 0 Postage .. ..' .. 0 0 2 Mar. 31 Balance to credit .. .. 399 010 £1,109 4 9 £,1109 4 9 C. F. Maxwell, Ist April, 1904. Resident Commissioner, Niue.

Total Funds to Credit of Niue Government on 31st Mahch, 1904. £ s. d. Cash in hand in Niue ... ... ... ... ... 661 9 6 Balance, Current Account, Bank of New Zealand ... ... 399 0 10 in Post-Office Savings-Bank ... ... .. ... 117 12 0 in Post Office ... ... ... ... ... 439 4 11 At fixed deposit, Bank of New Zealand ... ... ... 500 0 0 £2,117 7 3 To be added: Interest on Post-Office Savings-Bank Account and stamp-sales in Auckland since 31st July, 1903. C. F. Maxwell, Ist April, 1904. Resident Commissioner, Niue.

No. 168. Cook and other Islands Administration, Wellington, Sir,— Bth April, 1904. I have to acknowledge the receipt of your letter of the 25th February, forwarding Ordinance No. 1 of the Manihiki Island Council, which you have had signed by the President, Mr. H. Williams. The Ordinance was duly submitted to the Attorney-General for his approval, but he has returned the papers with the following minute: — Before this Ordinance is submitted for the assent of Hia Excellency the Governor, there should be a certificate by the President of the Island Council of Manihiki to the effect that the Ordinance was passed by the Council. The letter of the Resident Commissioner of the 25th February, 1904, shows that the Council passed certain resolutions, and that from these the Resident Commissioner has " drafted " the Ordinance as now submitted. The letter of the Hon. Mr. Mills to the Resident Commissioner of the 9th February, 1903, informed him that he should have " forwarded the Ordinance to the Counoil after drafting it." It seems to me that the Ordinance submitted for His Excellency's assent has never been passed by the Island Council of Manihiki, who merely agreed to certain resolutions, from which the Ordinance has subsequently been drafted. I think it ehould be passed by the Island Council in the form in which it is now drawn. Albert Pitt, Attorney-General. 24/3/04. I return the Ordinance herewith to enable you to give effect to the Attorney-General's views. I have, &c, The Resident Commissioner, Rurotonga. C. H. Mills.

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No. 169. Cook and other Islands Report fob Year ending 31st .March, 190-1. Sir, — Rarotonga, Cook Islands, 11th April, 1904. I have the honour to forward herewith my report for the year ending the 31st March, 1904, together with returns of revenue and expenditure and Irade for year; also estimates of revenue and expenditure for the ensuing year. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

Enclosures. TRADE RETURNS. The returns of exports and imports, marked A and B and attached hereto, show that the exports for the 3'ear were about normal, and only slightly less than those of 1903, the values being .£34,821 and £34,740. In the matter of imports it will be seen that there is a decided improvement, the value having increased from £27,623 to £34,821. Under ordinary circumstances the exports might have been expected to increase, but it must not be forgotten that the year ] 903 was one most favourable to the trade of these Islands, our chief commodities, oopra and pearl-shell, commanding the highest prices; whereas during the present year copra has fallen 25 per cent, in value and pearl-shell from 50 per cent, to 70 per cent. Bad as this position was naturally, it has been accentuated by the childish behaviour of the Natives of Aitutaki and, in a less degree, of those of other islands. There, people resent the fall in prices and attribute the same to the machinations of the traders, and therefore during the dry winter months they refused to make copra. When, too late, they found that they would after all be the chief sufferers, they did, in a half-hearted way, make about half of the usual amount of copra, but for the most part of indifferent quality, owing to the humid atmosphere of the summer months and the sprouting nuts. The real fact is that the Natives of these Islands are, with a few exceptions, mere overgrown babies, who sulk if they cannot get things their own way; and it would be well that they should be punished like babies. We cannot have lost less than £3,000 by the childish behaviour of these people, and I submit that the officer administrating the Islands should have the power in such cases of making good the revenue lost by imposing a poll-tax on the offenders of not exceeding £1 per head. REVENUE AND EXPENDITURE. Schedule C attached hereto shows the receipts and expenditure for the past financial year to have been £5,310 4s. 3d. and £4,558 3s. 9d. respectively, yielding an unexpended balance of £752 os. 6d. to be added to the surplus of the Ist April, 1903, which was shown in my last report to be £1,858 16s. sd. We have therefore an actual cash surplus of £2,610 16s. lid., to which must be added the outstanding survey charges and Land Titles Court fees, which are now in the position of liens on the various blocks of land dealt with, and amount in the aggregate to £421 18s. 6d. Our true surplus is therefore £3,032 15s. sd. I would point out that this favourable financial position has been attained in the face of an expensive schooner, which has been run in aid of the public and of the Government of the Islands, notwithstanding virulent opposition and misrepresentation, and in spite also of a large but necessary public-works expenditure of over £3,000 in the last two years. The necessity for the expenditure will be apparent when I say that when I arrived here in 1898 the Government did not even own a dog-kennel. In the erection of the public buildings of this island due attention has been paid to the fact that the climate of Rarotonga is destructive to all timber, hence the foundations and walls have in every instance been made of concrete, and in the case of the Public Offices the floors have been laid of the same material, with the result that the danger from fire has been minimised, and the upkeep of the buildings will never be a source of trouble or expense. In the estimate of expenditure and revenue for the current year (D and E) attached, some small but necessary increases have been made, but the estimated expenditure is £200 below the actual sum expended during 1903-4. Among other items, I have provided for the immediate erection of bridges over the four unbridged creeks of the island. Heretofore these streams have been avoided by the road turning seaward over the heavy sand of the lagoon-beach, to the great, loss of those who carry fruit for the New Zealand market, since the loads must necessarily be reduced one-half in order to face the sand. As it is advisable that every facility should be afforded to those who carry fruit, I have thought it advisable to build all of these bridges at once on the usual island system, by which we find the timber and give a subsidy in aid to the people of the district, who find the labour and construct the bridges on the designs of Mr. Connal, Island Engineer. Foremost among those works which must shortly be undertaken is the drainage of the Maraerenga Lagoon, behind the Village of Avarua. The land affected by this work is of the best quality, but is at present worthless, by reason of the fact that from December to March it is flooded from 2 ft. to 6 ft. deep by drainage from the mountains, an evil that may, however, be cured by a concrete or pipe drain through the high land to the outer lagoon. I estimate the cost of this work at £100, but in any case the drain must be made, since the four cases of typhoid fever that occurred last year may be attributed to the stagnant water of the lagoon. The lands benefited

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by this drainage should bear a portion of the cost, and I will, if possible, have this principle recognised by the Native owners. If this can be attained in no other way, I propose to lease the land in question for a long term at a low rent, and plant it with cocoanuts. While on this point I would suggest for your consideration that the local administration could hardly put money to a better use than in leasing and planting the waste lands, for within seven years the rental value would have increased as many fold, and the Government would also derive the benefits incidental to increased exports. I shall be glad to receive your authority to plant the Island of Takutea. Ido not propose to spend more than £100 in any one year, but as the island is a valuable property, and, if planted, will be a source of revenue, the sooner this work is undertaken the better it will be for the Group. As the hard labour will for the most part be performed by prisoners, we have only the cost of rations and supervision to meet. THE GOVERNMENT SCHOONER. In Appendix F I submit for your information a report on the Government schooner by Mr. Blame, who has for the last two years managed everything in connection with the boat. The earnings of the schooner during the past year have been such as to warrant the belief that she will develop a trade of her own. It must, however, be borne in mind that many of the traders are so bound to the Union Company that they cannot use the schooner to any extent, and therefore her earnings are due for the most part to the support accorded to her by the Cook Islands Trading Company and to the Niue trade. To this last-named island the existence of a Government vessel is of the utmost importance, for the four trips made in each year, calling at Niue both ways, keep up communication with Auckland, and secure trade that would otherwise go to Sydney via Tonga. The schooner is at present under charter to the firm of Grice, Sumner, and Co., of Melbourne, to carry workmen and stores to and from Maiden Island. This will probably prove a valuable addition to her ordinary trading cruises, inasmuch as one of the trips will take place during the summer or hurricane season, when there is nothing doing in this Group. It is not advisable that these migrations to our own islands should be discouraged, for it is a well-known peculiarity of the Polynesian that, though he will work well when away from loafing relatives, he will not work on his own island. I may say that the good houses of Aitutaki are entirely due to the labour of Maiden Island, and it is by no means uncommon for whole families to go to Maiden for no other purpose that to obtain timber and iron for the family mansion. Above all, the labour of Maiden Island keeps the people away from Tahiti, where they contract loathsome diseases and drink every penny they make. SURVEYS AND LAND TITLES COURT. I have the honour to submit for your information a return of surveys made and cases heard in the Land Titles Court during the past year. From this return it will be seen that revenue to the amount of £553 9s. has been earned by the Court and Survey Department, and that of this sum £135 9s. 6d. has been paid voluntarily into the Treasury. I say "voluntarily" for the reason that we do not ask suitors in the Court to do more than pay the ss. hearing-fee. It has been our policy to impress upon the Native owners that the payment of fees was a small matter as compared with the settlement of land disputes, and that cur only aim was to confer upon the true owners a title that could not hereafter be disputed. Under these circumstances I have assured the Natives that no fees will be demanded for the next two years, that the money in question will remain a first charge upon the land, and that with such security it was not our intention to press for payment at any time. I would also draw your attention to the fact that very small fees are the rule in these two Departments of the local Government. The hearing of a case may take two days, but will only cost the applicant ss. So also if the block of land be small, 10s. is the usual survey charge. In New Zealand such charges would be held to be absurd, but 1 submit that the result of the first year's work shows that these fees have been well considered and sufficient. Aitutaki. During the winter of last year the Court sat for two months at Aitutaki, during which period 104 blocks of land were surveyed and the titles thereto finally defined and settled by the Court. In this island the lands have been most minutely subdivided, and in the neighbourhood of the port this has become an absolute evil, forasmuch as the sections in some cases do not exceed half an acre, and to this small plot there are probably five owners with equal rights. This minute subdivision of the Aitutaki lands is, if possible, a greater evil than the want of certainty in the tenure of Makea's people in Avarua, since the latter is, in many instances, more apparent than real. They are indeed liable to be turned off, Hut it never happens, and it would be my duty to intervene in favour of the tenant unless good cause could be shown by Makea for her action. In Aitutaki each family has ample laud for its support, and all well planted with food-producing plants, such as bread-fruit, oranges, and cocoa-palms, but the family has seldom more than an acre or two in any one place, and as they have, as a rule, from ten to fifteen such plots all over the island they are quite unable to look after their more remote properties. The Natives of Aitutaki appreciate the titles conferred by this Court, for they have for many years suffered annoyance from bogus claims, and from the eccentric decisions of the Native Courts —decisions that, whether right or wrong, had force only so long as the Judge lived or held office. In some instances I found that whole families had died out, and that very distant relatives had seized on the lands and held them to the exclusion of others with perhaps equal rights. These lands have been in dispute for the last sixty years, and have again and again been the subject of litigation in the Native Courts, but the muna of these Courts has been so small that in no instance has a decision been regarded as final.

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The Land Titles Court may claim that it has not only settled numerous disputes which have hitherto unsettled the minds of landowners, but it has also conserved the rights of many orphans, and of the more ignorant members of the community, who, under other circumstances, would have been ousted from their properties by the clever men of the island. That it will be a serious expense to the owners to survey and obtain titles to their numerous small holdings is true, but the people are very much alive to the necessity for so doing, and think but little of the cost so long as they can bring about exchanges and consolidate their scattered properties. I have already said that in many of the cases brought before the Court the area of the claim has been insignificant, but this does not affect the value thereof. In some instances as many as a hundred cocoa-palms may be seen growing on a single acre and bearing well, and as each of these palms is valued at 10s. the land and trees cannot be said to be worth less than £60 per acre. Two valuable sites have been acquired by the Government on this island under the provisoins of subsection (10a) of section 10 of the Order in Council establishing the Land Titles Court. Section 1, Arutanga, at the end of the wharf, has been secured as a site for landing and shipping sheds at a cost of £28, and Section 3 as a Courthouse Reserve, at a cost of £13 10s. This lastmentioned piece is the site of the island Courthouse, the ground-rent of which has heretofore been £4 10s., a most absurd price for the eighth of an acre. With reference to these purchases I have the honour to point out that in the first instance we have not only a site for the Customhouse shed, which is badly required, but can also lease the remainder of the land at a price that will return 10 per cent, interest on the outlay. In the second purchase we save £4 10s. per annum, and obtain a good title to the Courthouse for an outlay of £13 10s. liarotonga. In this island detached surveys have been made both in the Avarua and Arorangi districts, wherever titles have been in dispute, or where leases granted to Europeans have rendered such work expedient. In all ninety-five blocks have been surveyed, at a cost of £156, and the titles thereto,have been defined by the Court at a further cost to the owners of £135 15s. 6d. It is, however, the Takitumu district that has been selected as the real point of commencement for the general survey of the island. For this selection there are many good reasons, for the district lias from the most ancient times been divided among the numerous Mataiapo families of Takitumu, and therefore the definition of title is simple; and, further, the Titikaveka lands have for years been lying waste and unoccupied, and, worse still, unimproved. It is this latter fact that has induced me to select the coast-line from Papua to Titikaveka as the scene of the first regular and continuous survey of the island, it being obvious that unoccupied lands would be more easily acquired under lease from the Native owners than the occupied lands nearer to the shipping port. Most of this selected district has now been surveyed —viz., thirty-nine blocks fronting the sea, of a total area of 870 acres, or an average of 22 acres per holding, of which nine blocks, containing 273 acres, have been leased to Europeans, leaving 597 acres in the hands of the Natives. Of the hilly land in the rear of the coast-belt 535 acres have been surveyed and leased to Europeans. Of this land probably not more than 130 acres is capable of any sort of cultivation ; it is, however, intended to plant bananas in the moist and sheltered valleys, but the chief object of the lessees is to preserve the timber on the steep slopes of the hills, by keeping the careless Natives out of the valleys and thereby reducing the risk of fires. I have personally inspected the 870 acres of coast lands above mentioned, and would divide it into three zones: First, the coral sand or littoral zone, extending inland about 10 chains, valuable only for cocoanut and kumara plantations; second, the old taro swamps of the very best land, which must at one time have formed the old bed of the lagoon, and which extend from 8 to 10 chains inland : third, the foot slopes of the mountains, rising gently from the old lagoon to the hills, valuable for any purpose of tropical agriculture, and extending inland any distance from 20 chains to a mile. Of the first class I found that not more than a fifth of the area was planted with trees of economic value. The second class was lying almost entirely waste. The third had a few cocoanuts, bananas, and orange-trees growing thereon, but not more than a fifth of the area was producing either food or articles of saleable value. The European lessees have with characteristic energy cleared and planted their lands during the first year of the lease, Mr. ,H. M. Connal being the.pioneer in this matter. It is now five years since he planted 50 acres with seventy cocoapalms to the acre; and a few of these trees are already in bloom, but for the next three years only a small crop can be expected. After that date he will, however, receive full value, for his expenditure, and this will continue for the next sixty years. These cocoanut plantations will prove of very great importance to these Islands, not only by reason of the value of the crop —which cannot be estimated at less than £6 per acre per annum —but also from the fact that each fifty acres will provide employment for at least four men, and last, but by no means least, large numbers of sheep and cattle will be fed on the luxuriant undergrowth beneath the palms, and provide supplies of fresh meat instead of the present tinned article; thus making this island a more pleasant and less expensive place of residence than at present. The lands already leased are, in every instance, the property of men who own large tracts of country on the north or east coasts of this island, nearer to the port of Avarua, at which they can ship their oranges and bananas without much labour, and for this and other reasons the Titikaveka district, being ten miles distant from Avarua, has been neglected and left for the most part in the hands of Mangaian emigrants, who have in many instances left their own island for its good and do nothing for the land they now occupy on sufferance, but are contented with a bare existence derived from the natural products of the district, the nuts stolen from the more industrious Natives, and the manufacture of bush beer. Such men are useless and a source of annoyance to any community, and hence my anxiety to break up this Mangaian settlement by inducing the landowners to lease their waste lands to industrious Europeans, who would speedily cause this fertile tract of country to produce a ton of copra to the acre. At least 1,500 acres that at pre-

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sent are unproductive might be leased in this district, and would in such case support thirty white planters and their families in comfort. At the present moment the Native owners would seem to have taken some objection to leases and prefer to keep the land in their own hands, even though it be absolutely unproductive and they derive no benefit therefrom. This state of mind is not unnatural in a Maori, for he is by nature both greedy and envious, and when he sees the land from which he has derived no benefit covered with waving cocoa-palms only a few years after the date of the lease the sight is not pleasing to him, and his feelings find vent in the remark, " This European is making money out of my land." It does not occur to him that the European has probably spent not less than £10 per acre before he obtained any return, and if such thought did occur it would not alleviate the bitterness of the reflection that he himself had neglected opportunities of which the European had taken advantage. The question of these waste and unproductive lands is one of the utmost importance to this small community. We cannot expect a better steam service than we now have unless we can increase our exports, and without the aid of white planters this cannot be done. Our fruit will never be properly prepared for the New Zealand market until it be done by Europeans, who send their own produce to the market. The dried-banana industry may become of very great importance to us, but it can only be developed by Europeans, who, if they can obtain a share of the waste lands, will do all of these things and much more. I have drawn the attention of Makea to this question with the object of inducing her to have a thorough inspection of the lands in the occupation of her people, so that she may fine or eject those who have neglected the lands in their occupation. Something may be done in this way, and Jimmy te Pou will assist Makea in this direction. I propose also to enact a Vagrancy Ordinance to bring the lazy young men to a sense of their position, but it is only from New Zealand that I can receive the power to deal effectively with the waste-lands question. If in any future legislation for the better government of these Islands I am empowered to impose a tax of not exceeding Is. per acre on unimproved lands, those lands will at once be leased, the prosperity of the island assured, and the owners of the land will receive something from their property. The granting of leases to Europeans involves neither injury nor hardship to the Natives. About the year 1830 the population of Rarotonga was rather more than six thousand, and the inhabitants of that period found no difficulty in procuring food though they were then restricted to the indigenous banana, the taro, and the bread-fruit. Since that date the population has decreased until it i« now barely 1900, and is likely to be less. The natural result of this decrease is that the people can now live without work —which was not the case in old days —and there is much waste land. There are, however, people on this island who take a sentimental and mistaken view of the land question, and who are quite capable of advising the Natives not to lease. The Northern Islands. In the Northern Islands the work done has, for the most part, been confined to a settlement of the rights of the London Mission to their church, school, and mission-house sites, and under this head fifteen orders have been made. At Manihiki the Court investigated the title to three disputed Native blocks and settled two disputed wills. At Penrhyn only one Native case was heard, but both at that place and at the other islands numerous applications were made to the Court to settle old land disputes. This I was unable to do at the time, and as it is important that the Rarotonga and Cook Island lands should be dealt with as soon as possible I will confine my work to these islands for the present.

Schedule of Work done by Survey Department and Land Titles Court for Year ending 31st March, 1904.

Title to Lands. My experience in the Land Titles Court of these Islands has taught me that it is inexpedient to grant an absolute freehold title to any landholder in Rarotonga. From time immemorial it has been the custom of the island to regard the eldest-born of the senior branch of the family (Mataiapo) as the natural guardian and trustee of the family land, as the man who, by right of birth and by subsequent election by the elders of the tribe, should manage the whole estate in the interests of the family. But they did not at any time recognise that his right to the land was

Name of Island. Original Orders. Other Orders. Survey Pees. Paid. Court Feee. Outstanding. Total Fees. Paid. Outstanding. .itutaki tarotonga .. 'enrhyn lanihiki .. takiihanga lanuae 104 95 1 4 3 43 C) 9 4 4 £ s. d. 17 0 0 4 17 0 1 12 0 1 10 0 £ s. d. 67 10 0 151 3 0 4 10 0 6 0 0 4 0 0 10 0 0 £ a. d. 67 4 0 36 2 0 2 6 6 2 10 0 £ s. d. 60 18 0 99 13 6 4 5 0 5 5 0 3 0 0 0 15 0 £ b. a. 212 12 0 291 15 6 12 13 6 15 5 0 7 0 0 14 3 0 2 3"8 0 Totals.. 206 74 24 19 0 243 3 0 111 10 6 173 16 6 553 9 0

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greater than that of any junior member of the kopu tangata, and so great is their respect for this old custom that it is well-nigh impossible to make those who are most deeply interested come forward and claim inclusion in the list of names. They are quite satisfied to have the names of one or two elders of the family placed on the Court records, and cheerfully ignore the possible legal effect of their own prejudices. In the Takitumu district, under the Ariki Pa, we have the minimum of danger from these causes, from the fact that this district is divided into taperes, and subdivided among small families on well-recognised boundaries. Moreover, Pa, who has an intimate knowledge of his people, is always present to correct errors of omission ; but even in this district 1 have had to suspend the issue of the title in several instances lest genuine owners should have been left out of the list of names. It is, however, in the Avarua district that the real difficulty has to be met. 1 have now an application from an important chief and landholder asking the Court to adjudicate upon a block of land of which he claims to be the sole owner. As to this claim there are many minor though important points to be considered, and two of the utmost importance —viz., can the chief of a tribe be considered in any other light than as trustee and joint owner in the tribal lands? And if it be found that he has a superior right then the question will be, is that right so strong as to justify him in excluding his own brothers and cousins from any block of land? The ancient mana of a chief entitled him to place any of his followers on unoccupied tribal land, and so long as the person so placed in possession, or his family, lived and fulfilled the obligations of the gift, they were held to have an occupation right on the land; but if the family died out the land reverted to the tribe and Ariki. In many cases the grant endured only during the lifetime of the grantor. It may, indeed, be said that a life interest was the highest title ever recognised by the Maori of Polynesia. An Ariki might divide among his children the land he had actually held or cultivated by his servants or slaves, but he had no power to devise the tribal lands in the occupation of others, nor could he appoint his successor. It was the privilege of the elders of the tribe to appoint the Ariki, and that man would continue the distribution of the tribal lands in accordance with Native custom. Such was the ancient system of Polynesia, and it does not seem expedient that the Land Titles Court should give the occupiers of the land a superior title to that which they originally possessed, and if I am not mistaken that title was that the Government, in the person of the Ariki, owned the land, subject to an undoubted right on the part of the tribe to occupy such lands under certain well-defined obligations of service to the Government. This oveiiordship should not be allowed to lapse. Where the rights of independent Mataiapos and their families are clear and undisputed the fee-simple may be awarded to them, but in all other cases it seems to me that no more than a life interest should be awarded, for in no other way can the interests of the small people and the Government be effectually guarded. EDUCATION. The education of the children of this Group is for the most part in the hands of the several religious fraternities. The London Mission has schools at Avarua, Matavera, Ngatangiia, Titikaveka, and Arorangi. The Sisters of St. Joseph have a very good school at Avarua, where even music is taught,, and the Seventh Day Adventists have a lady teacher who resides at Titikaveka, and has many pupils by reason of the fact that she makes the teaching of English the leading feature of her school. Most important of all of these establishments is the High School at Tereora, where children from all of the islands of the Group are taken as boarders and given a really good education. During the past year four boys have been selected from this school and employed in the various stores of the island, and I have taken one as a cadet in the Survey Office, who promises to become a first-class draughtsman. The master, Mr. P. H. Hall, deserves very great credit for the good English taught in his school, and I feel assured that Tereora will be to the Cook Islands what Te Aute College is to the young Maoris of New Zealand. A Native of Polynesia is apt to take a very practical view of education, and only values it for the advantages that may thereby accrue to the scholar. Until lately these prospective benefits have not been apparent to the Maori parent, and therefore many of the most influential people have not taken advantage of the education offered by Tereora; but the sudden demand for reliable and educated boys who can speak both English and Maori has altered all that. Makea is now sending her foster-children to Tereora, and the parents generally are alive to the fact that knowledge may be both power and money, two things that will never be despised in Polynesia. The remarks I have made concerning Tereora will apply in a slightly less degree to the Araura School of Aitutaki. This institution is of recent date, but under the management of the Misses Royle, is doing good work, while the Rev. Mr. Jones, with characteristic energy and benevolence, prepares the younger children for Araura. At Mangaia the Rev. Bond James is engaged in the same good work, and it may safely be said that wherever the European members of the mission are engaged in the teaching, the education given is quite up to the requirements of the Islands. This remark can only apply to Rarotonga, Aitutaki, and Mangaia. At Atiu, Mauke, and Mitiaro, where there are no European missionaries, the education of the children must of necessity be left in the hands of the Native teachers. In these cases it is, however, possible to vender assistance at a very small cost to the Group, and I propose to employ a few of the smartest boys from Tereora as teachers at a sum not exceeding £20 per annum each, a salary that will be regarded as absolute wealth. For the last eight years we have given an annual subsidy to Tereora of £2 10s. per scholar, provided that not more than fifty scholars were taught in the school. This subsidy was paid with

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the view of providing food for the children from the outlying islands, but it has been found to be insufficient, and, with your approval, I propose to increase it to £200 per annum. It will be money well spent, for it is from Tereora that the English language will spread over the whole Group. RECOMMENDATIONS FOR FUTURE GOVERNMENT OF GROUP. In order to provide for the better government of this group of islands I have the honour to make the following suggestions: — Pearl-shell Lagoons The area of the Penrhyn lagoon may be estimated at not less than seventy square miles, of which some twenty miles are more or less covered with the pearl-shell of commerce. But the population of the islands of this atoll, who now claim the exclusive right to dive for shell, are but few in number; there are certainly not more than eighty divers in Penrhyn, and of these not more than sixty are owners of the island. The policy of the so-called owners of the shell-beds is to take no more shell than will provide them with a good living, and I submit that this policy is in direct conflict with the interests of the government of the Group. Firstly, because old shell, if left lying in the beds, becomes worm-eaten tind spreads the disease; and, secondly, it should be our aim to encourage all of the islanders to dive. It must be borne in mind that it requires years of practice to turn out an efficient diver, and that the Penrhyn people are dying out there can be no question, while, on the other hand, we have at Manihiki and Pukapuka a healthy population who would be glad to join in this work if they could do so by right. To place this industry on a sound footing and give the small people equal rights with those who now claim exclusive mana over the best shell-beds, I make the following suggestions: That the Government of New Zealand shall declare the lagoons of Penrhyn, Manihiki, Palmerston, and Aitutaki, and all of the shell therein, to be the property of His Majesty, and, subject to certain restrictions, shall hand them over to be managed by the Resident Agent and Council of each island. That in each island the Resident Agent shall, ex officio, be the custodian of the lagoon, and shall, in conjunction with the Island Council, regulate the close seasons to be observed over the lagoon or any part thereof. The Resident Agent and Council, as aforesaid, shall, subject to the approval of the Resident Commissioner, decide what diving-machines —if any —shall be used, and on what terms, in order that the interests of the majority may not suffer. That no person shall be allowed to dive without a license, but any aboriginal inhabitant of the island shall be entitled to such license free of charge. That the aboriginal inhabitants of any island within the boundaries of New Zealand shall be entitled to a license on payment of an annual fee of 10s. That foreigners may, in the discretion of the Resident Agent, be allowed to dive for shell on payment of an annual license fee of £1 10s. That no alien shall own or work a diving-machine, unless he shall first have obtained the written permission of the Resident Commissioner. ADMINISTRATION OF JUSTICE. In any future Act of the New Zealand legislature providing for the government of these Islands I would suggest that provision should be made to abolish all Arikis' Courts within such Islands as shall have a resident European Agent, duly appointed b}< _ the New Zealand Government. My experience of these Courts is that they are most unsatisfactory tribunals. The Natives detest them for the reason that the amount of the fine is generally determined by the ability of the prisoner to pay, and not by the gravity of the offence. The benefit to the Natives of a firm and just administration of the law is well exemplified by the Island of Aitutaki. When I first arrived in the Cook Islands this people deserved the character they then bore —namely, that they were the most unsatisfactory and turbulent tribe in the Group. It was under these circumstances that I appointed Mr. J. T. Large as Magistrate of the island, and the result has been that the men of Aitutaki now compare favourably with any part of the Group, and are infinitely more industrious and enterprising. That the people did not at first appreciate the measures adopted for their good is quite true, and Mr. Large had many difficulties to contend with; but it is equally certain that his work is now appreciated by all, and that he had the respect of the whole community when he was removed to Mangaia. ISLAND LEASES. I would suggest for your consideration that it is not expedient that any of the islands of this Group should heieafter be leased to private individuals or companies. Shortly before my arrival in the Group the Island of Manuae was leased by the owners to the Cook Island Trading Company, and it may not be denied that this firm has expended large sums of money on the island, and have planted many thousands of cocoa-palms, to the great benefit of the future trade of the Cook Islands. But I am informed on good authority that a foreign financial firm is in treaty for the purchase of the lease, and I submit that it is not in the interests of the New Zealand Government or of British manufacturers that a foreign firm should be in a position to establish a depot in the midst of the Cook Islands. It would be better for all that Manuae should be taken over by the Government and worked together with Takutea as a Government plantation. One staff would work the two islands, and a very large revenue would eventually be obtained therefrom. I would here draw your attention to the fact that I have not yet received authority to plant Takutea, but the sooner this work is done the better for the Group.

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ISLAND COUNCILS. By section 7 of " The Cook and other Islands Government Act, 1901," the New Zealand Parliament has afforded the Natives of these Islands a very large measure of local government; but I would point out that these Island Councils are not satisfactory, except where they are controlled by and under the presidency of a European officer. At Mangaia the Council has done nothing to justify its existence. Until Mr. Large took charge it had assumed exclusive jurisdiction over all civil cases: had made both parties pay costs of Court; and had appropriated to its own use the blackmail so obtained. It had also been most energetic in imposing illegal rahui in order to prevent the sale of coffee, cocoanuts, or copra to Europeans, while the Maori traders were allowed to purchase the same unchecked. It will, therefore, be obvious that the Mangaian Council has reason for its objection to Mr. Large as President of that Council. I would suggest that it be the law that in every instance the Resident Agent shall be, ex officio, the President of the Island Council; that in no instance shall the members exceed nine in number; that the Arikis shall be, ex officio, members of the Council; and that the remaining members shall be elected by the adult Natives of the island for a term not exceeding three years. THE FEDERAL COUNCIL. The Arikis, who have for hundreds of years been the natural leaders of the Maori people, would seem to me to be their proper representatives on the Federal Council, for they alone show the smallest solicitude for the welfare of their people. Those who live under them have never had to think of, or for, others, and are not likely to acquire the habit in this generation. Any attempt to elect members to this Council would result in a fiasco, for neither the Arikis nor leading men would submit to election, but would follow the system they adopted with the old parliament and nominate a lot of dummies to carry out their views, while they remained in the background avoiding responsibility, but pulling the strings as they pleased. For this and other reasons it is well that they should sit in the Federal Council under the presidency of the Resident Commissioner. I can see no reason why there should not be a European member of the Council, who shall be elected by the adult foreign or European residents. There are now not less than eighty nonMaori residents of Rarotonga, and their numbers are certain to increase. LANDS AND SURVEYS. The survey of all lands and the definition of the titles thereto should be made compulsory on the owners or occupiers of such land, since it is the policy of the local Government to leave the payment of all charges connected therewith a charge upon the land, without interest, for an indefinite period. In any future Act passed by the New Zealand Legislature for the government of these islands it would be well to declare that a strip of land, 1 chain in width from high-water mark, is the property of the Government. LOCAL ORDINANCES. The Ordinances passed during the year are few in number, and, with the exception of No. 4, which restricts the sale of spirituous liquors, are of merely local importance. Federal Ordinance No. 11 extends the provisions of section 2 of " The Traders' License Act, 1898," to the islands of Manihiki, Rakahanga, and Pukapuka, in order to place the tradingschooners of Tahiti on the same footing as those of Rarotonga. No. 12 gives the master of any school power to report to the police the truancy of any scholar, and to call upon any member of the Force to bring the parent of the child before the nearest Court. Ordinance No. 3 of the Island Council of Rarotonga defines the rights and obligations of foreign leaseholders in the matter of fencing. Ordinance No. £ defines the law governing the sale of spirituous liquor within the Island of Rarotonga. By the provisions of this last Ordinance the Government only may import intoxicating liquor and sell the same from the public bond, as is now the rule, and the same law makes it an offence to sell to any aboriginal native of Polynesia. Practically this Ordinance amounts to prohibition, forasmuch as all liquor being imported by and in the hands of the Government a prohibition order will be effective. Personally I have not much faith in this very stringent measure, but as there was really no law on the question it was necessary to pass an Act that would be acceptable to the majority. Previous to the arrival of the first British Resident the will of the resident missionary had practically been the law of the island, and prohibition was supposed to be the rule. But it existed in name only, for the people, with one or two exceptions, were opposed to it, and assisted European trader.! to break the law whenever it suited them to do so. As to the desire for prohibition, there would appear to be a very general misconception in New Zealand on this point The 10—A. 3.

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Maoris do not desire prohibition. At any general meeting held on this subject every man will, for the sake of appearances and the safety of his church-membership, speak against the sale of liquor, but piivately they are as a rule in favour of it, and cannot see why a Maori should be treated differently from a European. Whatever there may have been of drunkenness during the last five years has been due to bush beer, which is almost invariably drunk on the Sunday with the full knowledge of the chiefs of the tapere, police, and church-members, but the offenders are never brought before the Court unless they have been so foolish as to exhibit their drunkenness on the public road where they may be seen by Europeans. Public sympathy is with the beer-drinkers. The arrangement by which the then British Resident authorised the sale of liquor to Natives on a permit signed by the resident Ariki failed; firstly, because the two leading Arikis disliked the law; and, secondly, because they believed they were being used as a catspaw. They therefore refused to sign ; but it has been urged against them that, though they disapproved of the law, the}' allowed deputies to sign for them. On this point they have not been heard in their defence, and they would probably have a good deal to say; but that people who were not Arikis did sign, and charged sixpence for each signature, and that the Bondmaster acted on these illegal permits, is quite certain. With the result that a Native could for 2s. obtayi a bottle of rum, and generally get as much liquor as he could pay for, so that in practice there was no limit to the sales other than a man's ability to pay. A Government return shows that during the last six months of 1897 — 6,543 bottles of spirits, 898 bottles of wine, and 974 bottles of beer were sold to an adult male population of less than seven hundred, and from what is known of the methods of those days it will be safe to assume that at least half as much more was disposed of without the form of permit. The vigorous protests of the Rev. Mr. Hutchin, Mr. Wilkie, and Dr. G. Craig put an end to this illegal traffic, and during the first six months of 1898 the sale of spirits decreased appreciably from 6,543 to 2,967 bottles. Since my arrival in the Islands in September, 1898, no permit has been issued in favour of any Native; but the effective blow to the liquor traffic was the raising of the duty on spirits from 5 per cent, ad valorem to 12s. per proof gallon,—an innovation that had the effect of driving all of the drunken foreign element from this Group. lam not in a position to report that spirits issued to foreigners may not have found their way into the hands of Natives, and therefore I have included Chinamen among the prohibited persons. It is possible that this Ordinance may not effect all the good anticipated from it, for when the people are hostile to any law they will not find it difficult to evade the provisions thereof. We have already some four hundred Cook-Islanders living in Tahiti, who were driven hence by the tyranny of the old laws and their administrators, and who, finding the happy-go-lucky life of that place very much to their liking, have remained there. I therefore anticipate that those men who are inclined to drink will simply find in Tahiti that freedom of action which is denied to them here, in which case those who are so anxious to force their own idea of moral living on the Maori people will have done more to destroy the race than any member of the much-maligned trading class. There is, of course, an alternative —the Cook-Islander may continue to brew his bush beer in the remote mountain valleys without fear of detection, for a large majority of the people will sympathize with him: in any case some curious developments may be expected. We can prevent the Cook-Islandei from drinking spirits of European manufacture, but we cannot make him either sober or temperate. There are, however, people who pretend to think otherwise, and who ignore the fact that there are ten Sabbath-Day drunkards for one seen at any other time, that being the day specially chosen by the people for bush-beer drinking. THE VITAL STATISTICS OP THE GEOUP. During the past year there have been an unusual number of deaths, due for the most part to the after-effects of measles. When this disease was introduced from New Zealand nearly every Native of Rarotonga suffered a mild attack, and no one seemed much the worse for it. But in Tahiti many people died, and when the steamer and trading-schooners introduced that form of the disease into Atiu and Aitutaki the people began to realise that the situation was serious, inasmuch as the Maori has no constitution that will resist any form of fever. The result is that the deaths exceed the births by no less than 109. I submit the following schedule for your information : —

W. E. Gudgeon, Resident Commissioner.

Births. Deaths. Marriages. Population. tarotonga langaia itutaki .tiu [auke [itiaro 55 54 26 21 19 7 94 52 09 51 21 4 45 5 23 10 6 2 1,900 1,507 1,170 940 338 218 Totals 182 291 91 6,073

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A. Cook and other Islands: Exports for Year 1903.

Summary. * From Cook Islands ... ... ... ■•• ••• ••• 26,840 „ Northern Islands... ... ... ... ••• ■•■ 7 > 900 Total exports from Cook and other Islands Federation ... £34,740 T. E. Heed, Rarotonga, 24th March, 1904. Collector of Customs.

Article. Where exported to. Quantity. lae. From Cook Islands. £ £ 48 Beche-de-Mer New Zealand 32 cwt. 3andlenuts Tahiti 89 tons 24 „ 534 144 Total 113 tons 678 Jocoanuts New Zealand 1,793 sacks 350 Coffee Tahiti 74,000 lb. 64,000 „ 1,250 1,060 Total 138,000 lb. 2,310 3opra New Zealand Tahiti 650 tons 5 „ 5,400 43 Total 655 tons 5,443 Cotton Dried Bananas Fruit, fresh, — Bananas New Zealand 15 cwt. 12 „ 30 18 25,843 cases and 10,075 bunches 60,346 cases 5,663 „ 282 „ 5 cwt. 56 tons 29,000 gins. 80 lb. 4,800 Oranges Pineapples Unenumerated l?ungus Kumaraa and yams . . Limejuice Manilla Miscellaneous >» 10,050 900 40 7 150 1,250 6 40 »» Total exports Cook Islands produce.. [mported goods reshipped Niue Tahiti 380 340 26,120 Total 720 Total exports from Cook Islands £26,840 From Northern Islands. Dopra New Zealand New South Wales Tahiti 80 tons 60 „] 310 „ 700 520 2,650 Total 450 tons 3,870 Mats and hats Tahiti 30 Pearl-shell .. New Zealand Tahiti 45 tons 5 ,, 3,600 400 ,, . . 50 tons 4,000 Total Total exports from Northern Islands £7,900

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B. Cook and other Islands: Return of Imports for the Year 1903.

Article. Whence imported. Value. Total. Agricultural produce (unenumerated) .. New Zealand New South Wales 175 6 £ Animals, living— Fowls New South Wales 2 5 181 ,, • ■ Horses Pigs Sheep Apparel .. .. ■ .. Tahiti New Zealand 7 33 3 181 ,, United Kingdom New South Wales Victoria United States America Germany Tahiti 885 146 36 30 44 2 64 ,, ,, . . . • . • ,, Arrowroot Bacon and Hams • "I Tahiti New Zealand Tahiti 1,207 38 75 1 New Zealand Tahiti 494 24 76 Bags and Sacks Bamboo (for hat-making) Biscuits —Fancy Tahiti New Zealand Tahiti 518 152 80 3 ») Plain New Zealand New South Wales Tahiti 1,388 44 57 8S t> • * * ' ' * 1,489 241 >» Beer, bottled Bicycles and parts . I New Zealand „ United Kingdom New South Wales United States America Tahiti 75 26 25 120 27 »> 273 Blue New Zealand United Kingdom I 23 30 Boots and shoes New Zealand United Kingdom New South Wales Victoria United States America Tahiti 204 1 4 4 21 20 53 »> »» • • * • * * 254 Building-material (unenumerated) New Zealand New South Wales Tahiti 238 4 63 n »» 305 Butter New Zealand New South Wales 222 6 227 169 228 Carriages and materials New Zealand United States America Casks Cement New Zealand 376 15 1 396 360 n New SouthJWales Tahiti 392 33 Cheese Confectionery New Zealand 74 1 5 » ■ • Victoria Tahiti 80 >> * * * * * * Cordage and twine .. New Zealand New South Wales United States America Tahiti 250 1 49 30 >> j> . . 330 Cotton piece-goods New Zealand United Kingdom New South Wales Victoria United States America France Tahiti 2,185 813 61 9 185 34 844 4,131

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Cook and other Islands: Return of Imports for the Year 1903 — continued.

77

Article. Whence imported. Value. Total. £ £ 30 Curios (island produce returned) Drapery ;£' United Kingdom New Zealand United Kingdom New South Wales Victoria J United States America L France Germany Tahiti 2,085 131 44 59 10 15 50 164 ,, Druggists' wares and chemicals >» »> New Zealand United Kingdom New South Wales 1 Victoria United States America Tahiti 104 1 22 4 8 27 2,558 »» >> 166 Fancy goods >* New Zealand United Kingdom New South Wales Victoria France Germany Tahiti" 126 27 18 11 4 7 91 284 Fish, preserved New Zealand New South Wales United States America Tahiti 412 5 34 124 Flour New Zealand New South Wales United States America Tahiti 874 33 188 892 575 Furniture New Zealand New South Wales United States America Tahiti 1,987 388 35 3 23 Glassware and earthenware New Zealand United Kingdom New South Wales Tahiti 155 21 3 5 449 » » 184 Hardwaie .. ,, New Zealand United Kingdom New South Wales Victoria United States America Germany Tahiti 1,052 78 97 13 76 36 189 Hosiery New Zealand United Kingdom New South Wales Germany Tahiti 265 364 6 44 8 1,541 ,, . . . . 687 Instruments, Musical — Pianos New Zealand United Kingdom New South Wales 37 60 45 ,, .. 142 13 Organs Iron — Bars Galvanized sheet .. New South Wales New Zealand 795 167 43 19 12 40 ,, .. ,, United Kingdom New South Wales Victoria Tahiti 1,036 ,, Wire, Fencing New Zealand New South Wales Tahiti 67 2 2 71 Jams New Zealand New South Wales 83 3 ,, . . . . . . 86

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Cook and other Islands: Return of Imports for the Year 1903 — continued.

78

Article. Whence imported. Value. Total. £ £ Machines— Diving Sewing New Zealand 64 29 8 22 28 175 194 United Kingdom New South Wales Victoria United States America Tahiti 326 batches, Wooden New Zealand New South Wales Germany Tahiti 150 2 54 15 ,, 221 deats — Fresh Preserved New Zealand 1,834 10 17 18 ,, .. New South Wales Tahiti t> • • • • • • • * Salt dilk, Preserved New Zealand 260 1 8 1,861 560 143 New South Wales Tahiti 269 MiKerosene New Zealand New South Wales Tahiti 353 23 1 146 12 16 377 Linseed New Zealand New South Wales Tahiti 43 1 174 )nions New Zealand Tahiti 'aints and varnish New Zealand New South Wales United States America Tahiti 189 11 7 41 44 " . 'aper, Wrapping 'hotographic goods .. 'otatoes New Zealand 248 92 32 Tahiti 87 1 Provisions, and oilmen's stores (unenumerated) .. New Zealand New South Wales Victoria United States America Tahiti 779 29 3 1 92 88 j> " ■ . ■ >> »» • ■ 914 ,» >> ■ ,» >» lice .. .. .. . • • • New Zealand New South Wales United States America Tahiti 308 22 41 306 90 6 6 677 Saddlery and harness ,, . . . . . . . . New Zealand New South Wales Tahiti 102 Salt New Zealand Tahiti 23 2 ft . , . . . . . . . . Silks New Zealand United Kingdom New South Wales France Tahiti 152 92 11 18 51 25 ,, 324 Soap (common) New Zealand New South Wales Tahiti 447 15 7 ,, . ■ 469 Spirits— Brandy New Zealand Tahiti 10 12 Geneva Rum New Zealand 22 95 Tahiti 18 3 21

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Cook and other Islands: Return of Imports for the Year 1903 — continued.

Cook and other Islands: Return of Total Values of Imports, Year 1903. & From New Zealand ... ... ... ... ... ... 25,803 ~ United Kingdom... ... ... ... ... .. 2,089 ~ New South Wales ... ... ... ... ... 879 ~ Victoria ... ... ... ... ... ... 298 ~ United States ... ... .... ... ... 1,256 ~ Germany ... ... ... ... ... 193 ~ France ... ... ■ ... ... ... ... 79 ~ Tahiti ... ... ... ... ... 4 ; 289 Total ... ... ... ... ...£34,886 T. R. Herd, Rarotonga, 25th March, 1904. Collector of Customs

79

Article. Whence imported. Value. Total. Whisky Perfumed New Zealand £ 80 40 8 14 £ 305 United Kingdom France Tahiti llationery .. New Zealand United Kingdom New South Wales Tahiti ! 132 20 44 26 142 Sugar New Zealand New South Wales 960 28 222 ?anks, Iron New Zealand New South Wales Victoria 75 8 7 988 >» • - 00 14 Par Pea New Zealand 83 1 8 New South Wales Tahiti 92 fimber — Fruit and shell cases Sawn, dressed New Zealand 290 17 68 90 209 2.449 » ' • New South Wales Victoria United States America Tahiti >» • • Sawn, nndressed New Zealand New South Wales Victoria United States America Tahiti 665 11 34 142 ' 176 674 ,5 • • Pobacco— Manufactured 1,028 New Zealand New South Wales Victoria Tahiti 169 35 1 9 214 Cigars New Zealand New South Wales Tahiti 9 2 7 Prunks New Zealand Victoria United States America Tahiti 2 13 30 87 18 132 Vine— Sparkling Other kinds United Kingdom New Zealand Tahiti n 67 13 Voodenware New Zealand New South Wales ' Tahiti 192 7 33 84 55 • - 232 Total £34,886

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c. Cook and other Islands : Revenue and Expenditure for Year ending 31st March, 1904. Receipts. £ s. d. Expenditure. Balance on hand, Ist April, 1903 .. 1,858 16 5 I Vote. Voted. Expended. Revenue received during year — Salaries. £s. d. £ s. d. Customs duties .. .. .. 2,271 13 5 1. Mrdical and Health Traders' licenses .. .. .. 357 15 0 Officer .. .. 350 0 0 350 0■ 0 Sales of stamps— 2. Register of Courts .. 270 0 0 '270 0 0 Cook Islands .. .. .. 740 11 5 3. Civil Engineer and Penrhyn .. .. .. .. 564 7 3 Surveyor .. 250 0 0 250 0 0 Aitutaki .. .. .. .. 805 12 4. Government Printer, Land Titles Court and survey fees .. 131 10 6 Interpreter, and Fees and fines— Secretary .. 120 0 0 120 0 0 High Court .. .. .. 84 16 2 5. Postmaster, Rarotonga 50 0 0 29 3 4 R.M. Court, Aitutaki .. .. 122 12 5 6. Chief of Federal GoMangaia .. .. 20 9 6 vernmer t .. 80 0 0 80 0 0 Ariki Courts .. .. .. 133 12 9 7. Vice - Chief, Federal Miscellaneous receipts— Government .. 15 0 0 15 0 0 Interest on fixed deposit .. .. 30 0 0 8. Two Judges (Native) Rents of sites .. .. .. 32 0 0 High Court .. 20 0 0 20 0 0 Sale of old buildings .. .. 8 0 0 9. Contingent expenditure, material .. .. 312 10 High Court .. 50 0 0 41 17 3 Sale of forms and shipping-fees .. 4 110 10. Hospital supplies .. 100 0 0 94 12 5 11. Subsidy to Tereora Sohool .. .. 125 0 0 116 17 6 12. Salary, two Native Judges, Ariki Court, Rarotonga.. .. 40 0 0 40 0 0 13. Police, Rarotonga .. 25 0 0 24 0 0 i 14. Clerks of Ariki Courts, Rarotonga.. .. 15 0 0 15 0 0 15. Rents of sites, wharf, post-office, and hospital .. .. 20 15 0 21 5 0 16. Subsidy in aid of Government schooner .. 1,000 0 0 1,000 0 0 17. Contingent expenditure 150 0 0 366 1 10 18. Native Land Titles Court —Travelling and other expenses .. .. 200 0 0 242 13 6 19. Salary, Resident Agent, Penrhyn .. .. 150 0 0 150 0 0 20. Salary, Resident Agent, Aitutaki .. .. 150 0 0 150 0 0 21. Pilot and boat, Aitutaki 10 0 0 10 0 0 22. Three Judges, Ariki Court, Aitutaki .. 15 0 0 15 0 0 23. Police, Aitutaki .. 25 0 0 25 0 0 24. Three Judges, Ariki Court, Mangaia .. 24 0 0 12 18 4 25. Three Clerks, Ariki Court, Mangaia .. 12 0 0 613 4 26. Postmaster, Mangaia .. 10 0 0 10 0 0 27. Police, Mangaia .. 15 0 0 15 0 0 28. Postmaster, Atiu, Mauke, Mitiaro .. .. 12 0 0 12 0 0 29. Judges, Ariki Courts, Atiu, Mauke, Mitiaro 16 0 0 16 0 0 30. Police, Ariki Courts, Atiu, Mauke, Mitiaro 10 0 0 10 0 0 31. Clerks, Ariki Courts, Atiu, Mauke, Mriaro 9 0 0 9 0 C 32. Salary, Resident Agent, Mangaia .. .. 150 0 0 92 G 9 33. Auditor, travelling-ex-penses .. .. 40 0 0 40 0 0 34. Residence for Collector of Customs .. 800 0 0 786 0 3 35. Fencing Government Buildings and retain-ing-wall for creek .. 100 0 0 101 14 3 Total .. .. £4,558 3 9 Balance in hand 31st March, 1904— Cash in Treasury .. .. 495 18 6 Bank balance, current account .. 1,115 3 5 Fixed depoeit .. .. .. 1,000 0 0 Total .. .. £2,610 16 11 £7,169 0 8 Grand total .. ..£7,169 0 8 W. E. Gudgeon, Resident Commissioner. Rarotonga, Ist April, 1904. T. R. Herd, Treasurer.

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D. Cook and Northern Islands: Estimate of Expenditure for Year ending 31st March, 1905.

Public Works: Estimated Expenditure for Year ending Slit March, 1905. £ s. d. 1. Court-room, office, and house for Resident Agent, Mangaia ... 450 0 0 2. Four bridges, Rarotonga, at £50 ... ... ... ... 200 0 0 3. Drainage of the Maraerenga Lagoon ... ... ... 100 0 0 4. Lock-up of three cells (concrete) ... ... ... ... 100 0 0 £850 0 0 W. E. GuDCiEON, Resident Commissioner,

E. Estimated Revenue for Year ending 31st March, 1905. £ c. d. Customs ... ... ... •• ... ••• ••• 2,300 0 0 Stamps ... ... ... ... ••• ••• ■■• 700 0 0 Traders' licenses ... ... ... •■• •• ■•• 350 0 0 Fees and fines — Local Courts ... ... ... •■■ ■•• ... 250 0 0 High Court ... ... ... ... ■ •■• 80 0 0 Land Titles Court ... ... ... ••• •■• 200.0 0 Surveys 200 0 0 Miscellaneous ... •■■ ■■• ••■ ■■■ ■■■ 70 0 0 4,150 0 0 Surplus for year ending 31st March, 1904 ... ... ... 3,032 0 0 Total ... ... ... ... •■■ ...£7,182 0 0 W. E. Gudgeon, Resident Commissioner, 11—A. 3,

Office held. 1903-4. 1904-5. 1. Medical and Health Officer 2. Hospital supplies, attendance, &c. 3. Island allowance, Collector of Customs .. 4. Registrar Land Titles and High Court 5. Contingent Expenditure, High Court .. 6. Travelling and contingent expenditure, Land Titles Court 7. Civil Engineer and Surveyor .. 8. Assistant Draughtsman 9. Secretary, Interpreter, and Government Printer 10. Chief Federal Council, also Judge Arikis' Court 11. Vice-President of Council 12. Two Native Judges, High Court, at £10 13. Tereora School subsidy 14. Three pupil-teaohers from Tereora School, at £12 15. Native Magistrate, Takitumu Arikis' Court 16. Police, Rarotonga 17. Clerks of Courts, Rarotonga, £10 and £5 18. Rent wharf-site, £5 ; hospital, £7 10s. ; Post-office, £8 15s. 19. Contingent general expenditure 20. Resident Agent, Penrhyn 21. „ „ Aitutaki 22. „ „ Mangaia 23. Subsidy pilot-boat, Aitutaki 24. „ mail-canoe, Mangaia 25. Three Native Assessors at Aitutaki at £5 26. Police, Aitutaki 27. Native Assessors, Mangaia 28. Police, Mangaia 29. Clerks of Court, Mangaia 30. Postmaster, Mangaia 31. Three Postmasters— Atiu, Mauke, and Mitiaro 32. Three Clerks of Court—Atiu, £4 ; Mauke, £3 ; Mitiaro, £3.. 33.^ThreeJAssossors —Atiu, Mauke, and Mitiaro 34.2Police—Atiu, £5 ; Mauke, £3 ; Mitiaro, £3 35. in aid of the Government schooner • !* £ s. d. 350 0 0 150 0 0 50 0 0 270 0 0 50 0 0 200 0 0 250 0 0 £ s. d. 350 0 0 150 0 0 50 0 0 300 0 0 50 0 0 200 0 0 250 0 0 26 0 0 130 0 0 100 0 0 15 0 0 20 0 0 200 0 0 36 0 0 20 0 0 30 0 0 15 0 0 21 5 0 200 0 0 175 0 0 150 0 0 150 0 0 10 0 0 5 0 0 15 0 0 25 0 0 16 0 0 25 0 0 120 0 0 100 0 0 15 0 0 20 0 0 125 0 0 20 0 0 25 0 0 15 0 0 20 15 0 150 0 0 150 0 0 150 0 0 150 0 0 10 0 0 24 0 0 25 0 0 24 0 0 16 0 0 12 0 0 10 0 0 12 0 0 10. 0 0 16 0 0 10 0 0 1,000 0 0 10 0 0 12 0 0 10 0 0 16 0 0 11 0 0 700 0 0 Total 3,548 15 0 3,493 5 0

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82

F. Government Schooner Department, Rarotcmga, Sir,— 31st March, 1904. I have the honour to forward you herewith the balance-sheet of this Department in connection with the schooner " Countess of Ranfurly " for the year ending the 31st March, 1904. The expenses of the schooner have been as follows: — £ s. d. 1. Wages ... '... ... ... ... ... 630 3 6 2. Provisions ... ... ... ... .. ... 474 1 8 3. Insurance .. ... .. ... ... ... 315 0 0 4. Benzine ... ... ... ... ... ... 138 1 8 5. Docking and recoppering ... ... ... ... 115 19 6 6. Canvaß and rope ... ... ... ... ... 155 1 0 7. Machinery-repairs ... ... .. ... .. 24 9 0 8. General outfit and repairs ... ... ... . 334 5 3 9. Agency charges, Auckland . . ... .. ... 96 11 11 10. Office charges, Rarotonga ... ... ... ... 45 15 0 11. Miscellaneous expenditure ... ... ... ... 157 7 11 Total ... ... ... ... ... £2,486 19 5 The earnings of the schooner have been — £ s. d. 1. Freight ... ... ... ... ... ... 986 17 9 2. Passenger-fares . ... ... ... ... ... 254 7 9 3. Special charters ... ... ... ... ... 250 0 0 Total ... ... ... ... ... £1,491 5 6 The loss for the year on the running of the schooner has therefore been £995 13s. lid., which has been met by the subsidy of £1,000 received from the Cook Islands Treasury. I may point out that this is the first year that the earnings of the schooner have been directly charged with payment of insurance premium, £315. If that amount were deducted from the loss this year the same would be reduced to £680, which would compare favourably with the loss on the running of the vessel in previous years. With reference to items of expenses Nos. 2, 5, 6, and 8, at least 95 per cent, of same were incurred in Auckland under the authority and supervision of the captain of the vessel. As indicated in my report of the 7th March, 1904, I am of opinion that a saving of at least £250 to £300 could be effected in regard to these items of expenditure if more economy were practised by the captain and officers of the schooner in ordering goods and supplies. The earnings of the vessel, £1,491 ss. 6d., are, in my opinion, satisfactory. She has carried full cargoes from Auckland to Niue and the Cook Group, and on her trips from the Cook Group and Niue to Auckland she has been fairly well loaded up. The schooner has also been well patronised by passengers. If her cabin-passenger accommodation were enlarged and made more suitable for tropical travelling I feel certain that there would be an increase in the number of passengers, both commercial and tourist, who would patronise the vessel. The schooner has during the year been fully employed, and no time has been wasted at any of the terminal ports or ports of call. In the twelve months the vessel has made the following trips, aggregating about twenty thousand miles: Auckland to Niue and Rarotonga, 4; Rarotonga to Niue and Auckland, 3 ; Rarotonga to Niue, I ; Niue to Tonga, 1 ; Niue to Northern Islands and Maiden Island and return, 1 ; Islands of Cook Group, 5. As will be seen Niue has received the benefit of the schooner's services almost as much as the Cook Group without the Niue Administration in any way contributing towards the expenses of the vessel. I had hoped that the Department would have received this financial year, 1903-4, a subsidy from the Niue Administration, which would have lightened the subsidy paid by the Cook Islands Administration. I understand that the Resident Commissioner at Niue is in communication with the Minister in reference to this matter, and I trust that the amount of subsidy which will be authorised to be paid by Niue will be proportionate to the benefit received by that island. The chartering of the schooner by a Melbourne firm to carry workmen, stores, &c, from Niue to Maiden Island and back profitably fills in the time of the schooner while there is but little freight offering in the Cook Group. Another charter has been arranged with the same firm, and other matters are in progress for profitably employing the schooner in the future. I am of opinion that the coming year will show as good a return in respect of earnings as the past year, and, with more economical management in the matter of expenditure, next year's balance-sheet should show that the loss on the running of the schooner has been greatly minimised. I have, (fee, The Resident Commissioner, Rarotonga. E. Bf.aine, Secretary.

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Government Schooner Department: Balance-sheet to 31st March, 1901^. Dr. £ s. d. Or. £ s . d. To Freights .. .. .. ~ 986 17 9 By Provisions .. .. .. 474 4 8 Passenger-fares .. .. .. 254 7 9 Wages .. .. .. .. 630 3 6 Special charters . . .. .. 250 0 0 Outfit and repairs* .. .. 767 16 5 Subsidy, Cook Islands Treasury .. 1,000 0 0 Miscellaneous expenditure! .. .. 299 14 10 Sundry creditors .. <, .. 103 14 9 Insurance .. .. .. .. 315 0 0 Profit and Loss Account, 1902-3 .. 209 1 1 Captain's Advance Account .. 20 8 1 Sundry debtors .. .. .. 281 9 4 Cash balance .. .. .. 15 4 6 £2,804 1 4 £2,804 1 4 t. s. ;d. £ c. d. • Benzine .. .. .. 138 1 8 t Agencj' charges, Auckland .. .. Qβ 11 11 Docking and coppering .. .. 115 19 6 Office charges, Rarotonga ■ .. .. 45 16 0 Canvas and rope .. .. .. 156 1 0 General expenditure, labour, pilotage, Machinery-repairs .. .. .. 24 9 0 claims, Ac. .. .. 167 711 General .. .. .. ~ 334 5 8 £767 Iβ 5 £299 14 10 Rarotonga, 31st March, 1904. E. Blame, Secretary.

Government Schooner Department: Profit and Loss Account, 1908-1/.. Dr. £ s. d. Or. £ s. d. To Provisions . . .. .. .. 474 4 8 By Freight .. .. .. .. 986 17 9 j Wages .. .. .. .. 630 3 6 Passenger-fares .. .. .. 254 7 9 Outfit and repairs .. .. .. 767 16 5 Special charters .. .. .. 250 0 0 Miscellaneous expenditure .. .. 299 14 10 Subsidy, Cook Islands Treasury .. 1,000 0 0 Insurance .. .. .. .. 315 0 0 Balance, 1902-3 .. .. . . 209 1 1 Balance ........ 213 7 2 yj £2,700 6 7 £2,700 6 7 By Balance carried forward ~ .. £213 7 2 31st March, 1904. E. Blame, Secretary.

The Government of New Zealand, Dr. to Government Schooner Department. 1903. £ s. d. April 1. To Balance due ... ... ... ... ... 238 0 0 1904. March 31. Passage-money for Mr. Haszard, Auckland to Cook Group and Niue, in October, 1903 ... ... 15 0 0 £253 0 0 Baroconga, 31st March, 1904. =

No. 170. Cook and other Islands Administration, Wellington, Sir,-- I lth April, 1904. 1 received your letter of the 29th March and agree in great measure with the views expressed therein. But, as you know, the whole question is beset with difficulties, and the Island Council has passed an Ordinance dealing with the mutter, which has been assented to by the Governor and has now therefore the force of law. In communicating with the Resident Commissioner I shall impress upon him the necessity for jealously guarding the sale of liquor as much as he possibly can, as I am quite satisfied that, except perhaps for medicinal purposes, it cannot be taken by the Natives without injury. I shall be glad to hear from you at any time after your return to the island. I hope you are keeping well, and that you will find all well on your return home. Yours, &c, Mr. R. H. Head, Manakau Road, Epsom, Auckland. C. H. Mills.

No. 164.

No. 171. Department of Lands and Survey, Wellington, 12th April, 1904. The Hon. C. H. Mills, Wellington. Report on Niue Island Suuvey. I have the honour to forward herewith the report by Mr. H. D. M. Haszard, District Surveyor, upon his survey of Niue Island at the end of last year, which, I think, you will read with much interest. T. Y. Duncan, Minister of Lands.

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Enclosure. Sir,— District Survey Office, Thames, 19th March, 1904. 1 have the honour to transmit per same mail, under separate cover, the plans and computations of the Niue Island surveys; and, as a report on the circumstances leading up to, and the conduct of, the work may prove of interest, I beg to append it hereto. My health having been in a very indifferent state for several months last year, I applied to you for three months' leave of absence, my medical adviser having recommended me to take a trip to the South Sea Islands. On the 9th September I received a telegram stating that the leave had been granted, and at 5.30 p.m. the same day I received a "wire" from the Hon. Mr. Mills, asking if I would be willing to carry out some surveys at Niue while in that locality, and, if so, to proceed by the s.s. "Countess of Ranfurly," which was to leave Auckland at noon next day; details of the work to be arranged in consultation with the Government Resident at Niue. To this I replied in the affirmative, and, as the steamer to Auckland was to leave at 7.15 a.m. next morning, it did not leave me much time to get my equipment together, though, as a matter of fact, on arriving in Auckland, the " Countess " did not get away until two days later. Equipment. —I took with me a 5 in. transit theodolite (Troiiglnm and Sims), prismatic compass, Abney level, 5 chains 1-16 in. and 1 chain \ in. leading band in Littlejohn's drum, Nautical Almanac, Loomis's Astronomy, Thullier's Manual of Surveying, and the usual log. tables. Scope of the Work. —We left Auckland on the 11th September, and arrived at Niue after a fine passage of ten days. I immediately called on Mr. Maxwell, Government Resident, to see what required to be done in the matter of survey, and as the result of the interview it was arranged that, if possible, a traverse of the main road round the island connecting all the villages and incidentally fixing the coast-line should be made; the boundaries of Government Reserve and Mission Station to be defined, and landing reserves to be laid off at Alofi, Avatele, Tuapa, and Mutalau. Though I had already derived some benefit from the sea trip, as I did not feel equal to starting work again straight off, I stipulated that I should go on to the Cook Group and carry out the surveys on my return. However,, during the three days the vessel remained at the island, 1 selected a position for the initial station and made a start with the traverse-lines. The s.s. " Countess of Ranfurly " got back to Niue from the Cook Islands on the 27th October, and I then felt so very much better that I was able to enter into the work before me with energy. The schooner " Ysabel " was expected at Niue about Christmas, and if I had not got the work completed in time to get over to Tonga by her there would probablj' be no chance of leaving the island till March. This gave me a little under two months to carry out the arranged programme, and, though I felt doubtful if it could be done in the time, as I did not want to unduly protract my absence from New Zealand, I resolved to make every effort to push the work through. Natural Features. —The island is nearly surrounded by a narrow fringing-reef of about 4 chains in width. From this the cliffs rise up abruptly for 60 ft. or 70 ft. ; then there is a terrace extending right round, generally about a quarter of a mile wide, though at Tipa and along the southern coast it is much narrower. This terrace has evidently itself been a fringing-reef at one time. From the back of the terrace the rocks again rise steeply up for 130 ft. ; then, generally speaking, there is a gentle decline towards the centre; in fact, inside of the second elevation the island is saucer-shaped, though there are a number of minor undulations. I had not time to traverse the road through the centre of the island and thus get a cross-section, but I am of the opinion that the middle cannot be more than 100 ft. above sea-level, and that before the second upheaval Niue would have been in the form of an atoll island. From the foregoing, and as the whole place, where not under cultivation, is covered with dense vegetation, in many parts with great trees reaching to a height of 100 ft., it will be seen that nothing in the way of triangulation to govern the survey could be attempted; and even along the coast the points keep rounding so gradually that it is impossible to get a station where you can see for any great distance in both directions. Ground-marking. —One of the first things to be decided upon in connection with the work was as to the form of marking the traverses, the island being of such a rocky nature, that in many places it would be impossible to insert wooden pegs, and even if they could be put in the ants would soon play havoc with them. I wanted to make my work a standard to which any future subdivisional surveys could be tied on. However, when I arrived at Niue, there was no iron in the place suitable for bolts, but Mr. Maxwell authorised me to get what I could in Rarotonga, and while there I bought all the available f in. bar iron and had it made into bolts —a few 2 ft. long, but, to economize, most of them were reduced to from 6 in. to 9 in. Even then I had to use a good many wooden pegs; but there are bolts in at all points passing through villages and at intervals in other parts of the traverse. In addition to this, through Alofi I had concrete set round the bolts to insure their not being disturbed. Whenever there were cocoanut or other large trees near an angle I had deep broad arrows cut in them. Initial Station. —I selected a position on a point overlooking Alofi Bay, not far from the Government flagstaff, as the starting-place ; there being fewer trees there I was enabled to get a fairly clear field for the star-work. I may state here that if I had known the scope of the work and had had more time to make preparations before leaving home, I should have obtained a much larger instrument, as well as a chronometer for the astronomical portion of the work. Having chosen the spot for observation, Mr. Maxwell had a pillar of concrete built up from the solid rock for a height of 4 ft., and tapering from a base of about 2 ft. square to 1 ft. at the top, with an iron bolt through the centre. This should be a mark for all time. When the concrete had properly set, I was enabled to dispense with the legs of the theodolite, placing the tribrach of the instrument in three small indentations on the pillar, which insured great stability. Latitude.—As above stated, I should have liked a more powerful instrument for this work, but as I took observations to eight different stars and to the sun, I expect the mean result, which works out to 19° 1' 42"5. for the initial station, will be close enough for all practical purposes.

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Longitude.— -During the three nights the " Countess " remained at Alofi I endeavoured to get star sights for longitude, Captain Worsley having kindly lent his chronometers and offered to assist in recording, but, unfortunately, each night turned out to be cloudy, and I only succeeded in getting one set of rounds to Jupiter. On working this out it gives 169° 55' 15" W., while for ihe same position, bringing up the Admiralty determination from the south point of the island, would be about 169*51. Captain Worsley tells me that the mean results of his observations for longitude at Alofi Bay during several trips" from Auckland is 16!)° 58. lam therefore of opinion that the Admiralty value is too much to the eastward, especially as the chart shows the island as eight miles wide along the southefn coast, whereas in reality it is only five miles. However, further observations are required to definitely settle the point. Azimuth.- -During the first week I was engaged on the survey there was a considerable amount of rain, and 1 was not able to get any good observations for azimuth, so I started on the magnetic meridian and then carried on limb bearings. I read the two faces of the instrument for both the bearing and the included angle at each traverse point, and was thus enabled to get the mean .of four readings at each angle. As soon as the weather cleared I took both solar and stellar observations at the initial station, and found the mean variation from the magnetic to be 10° 22. In the same way I checked the bearings at intervals of every few miles round the island, and got excellent closes, with the exception of the traverse between Hokupu and Liku, which J found a few minutes out. As was to be expected in an island entirely of coral formation, the readings of the needle were very steady ; testing it on all parts of the traverse gave practically the same variation. Chainaye. — The main traverse round the island, a distance of thirty-five miles, comes into 2.1" 1 links per mile. This is not quite up to the average close in New Zealand, but when it is taken into account that 1 started with quite untrained men, that 1 was working against time throughout, and had no chance of rechaining any of the line, 1 think the results should be considered fairly satisfactor}-. Of course, I read the band end of the chain all the time myself, but with new hands it was difficult to get the plumb-bobs held quite steadily. Width of Roads.— -The general width of the roads as formed is from 12 ft. to 20 ft., in most places bordered with cocoanut-palms or other trees. As they wind about very much, I did not attempt to put in any side pegs except through the Village of Alofi. I simply adopted the longest traverse-lines I could get without having to do much cutting. Mr. Maxwell has made great improvements in the roads since he has been in Niue, and it is now possible to drive right round and across the island, though some deviations are still required where the road rises from the first to the second terrace. In traversing from Alofi I worked both north and south around to Lakepa, and put in temporary marks at mile intervals. Mr. Maxwell intends to replace them with permanent milestones, which will be useful for any one travelling. Coast-line. —Wherever it was possible I have taken offsets to the coast-line from the road traverse. Where the distance precluded this being done, 1 ran prismatic-compass traverses from the road down to the principal points, and then sketched the coast-line in with cross-bearings and estimated distances. This may not give the edge of the land exactly, but it will come within a narrow margin of error. From the rugged nature of the coast and the dense vegetation, to make an exact traverse would alone occupy many months, while the method employed will be close enough for all practical purposes. Total Area of Island. — The area works out to 64,028 acres, or, in round figures, 100 square miles. This agrees very well with the estimate based on the Admiralty chart, though the shape of the island is considerably different, being wider in the middle and very much narrower at I lie southern end than shown on the chart. Area under Cultivation .--A person casually strolling about (he roads of the island would be inclined to get an exaggerated idea of the area under cultivation and the exteui of the plantations, as these latter border the roads and extend for a considerable width about the settlements; but, when it is taken into consideration that the palms form a mere fringe along the roads in most places, and that in others there are none at all, a better estimate may be formed. By averaging the width of the plantations along the roads and tracks that I know of, I come to the conclusion that at the very outside not more than 20 per cent, of the total area has been planted with cocoa-nut-trees or otherwise brought under cultivation, and 1 should not be surprised if it turned oui to be a good deal less. If another 15 per cent, is knocked off for places too rocky to do anything with —though the bananas and palms seem to thrive in Niue if they can find the least crevice to send a root down through the rocks —it will be seen that there are vast areas (speaking in an island sense) still available for being brought in. If the young men could be induced to develop their own island, instead of going to labour plantations on Maiden and elsewhere (I am told there are about five hundred so absent), the export of copra could easily be quadrupled in a few years. Besides, for many other reasons, it is bad for the island that such a large proportion of its ablebodied men should be absent. Forests. —As previously stated, the land in its natural state is mostly covered with forest; this includes ebony and many other hard woods. I saw numbers of trees with a diameter up to 4 ft.. and tall trunks clear of branches. Altogether there must be a good many millions of feet of timber suitable for milling purposes on the island, but with difficulties of transit it is doubtful if its removal could be made to pay. Caves. —There are many extensive caves in Niue, one at Lakepa, 1 was told, having passages which could be measured by the mile. I was so pushed for lime, however, thai 1 was unable to inspect it, but one that I visited at Vaiopeope is extremely beautiful. It is situated about 200 yards from the sea on the northern coast, and is formed of a number of galleries and terraces, one below the other. Stalagmites and stalactites are in great profusion, and group themselves into all kinds of fantastic shapes. Here a draped figure, as it were, sitting on a stool of repentance, there

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an altar, with a cloth spread over it, in front of pipes resembling those of an organ. In one gallery the roof appears to be studded with lilies carved out of alabaster. As one descends to the lower galleries the sensation is decidedly weird; the gurgling and reverberations of swiftly flowing water is heard deep down in dark subterranean channels which are evidently connected with the sea, for, ever and anon, a mighty gust of wind impelled by the huge rollers breaking on the reef outside strikes the visitor, and it requires a steady nerve and a firm foothold to avoid being swept into the seething cauldron below. If these caves were in an accessible position they would be a great draw to tourists. Many of the Native graves are marked with headstones made out of large stalactites. The Natives. —There are various types of Natives on Niue, some being akin to the Maori, others more like Kanakas, and some even with a Japanese cast of countenance. I had a number assisting on the survey, and they proved themselves industrious, obliging workmen, with quite as much intelligence as an equal number of Maoris. I found the residents, both the white traders an"d the Native chiefs, most hospitable, and tTiey did all they could to facilitate my work. Sun-dial for Alofi. —While at Niue I calculated the figure of a dial corresponding to the latitude of Alofi for Mr. Maxwell, and gave him the true meridian at a spot in front of the Government Buildings. With this and a table of the sun's daily variation he will be able to maintain correct mean time for the island. Record of Plans. —I would respectfully suggest that the original plans which I send in should be kept either in the Wellington or Auckland Survey Offices, and that a mounted tracing with full details should be sent to Mr. Maxwell. He proposes when he has time to make magnetic traverses of the cross-roads, and he could then lit them into place. I would also suggest that if a tracing is sent to the Admiralty, some extracts from this report, showing the instruments used and method adopted in the survey, should also be sent to enable them to judge what reliance to place on the work. Cost of Survey.- -Apart from the cost of labour and material and the special allowance authorised by the Hon. Mr. Mills, I am doubtful what proportion, if any, of my salaries should be charged against the work, but as, before leaving New Zealand, I had traversed sufficient roads and schemed out enough sections to keep my party under Mr. Cadet Clarke busy the whole time I was away, I think a fair wa3 ; would be to charge half my salarj' to this work and half to Niue. Acting on this basis the cost works out as follows: — £ 8. d. To half three months' salary ... ... ... ... ... 33 15 0 Special allowance for ninety-one days at 15s. ... ... ... 68 5 0 Labour and material (already paid by Mr. Maxwell) ... ... 42 18 1 Fares —"Countess of Kanfurly," £15; Captain Ross, £3; Union Steamship Company, £10~ 10s. ... ... ... ... 28 10 0 £173 8 1 This is equal to less than §d. per acre, without allowing anything for the six reserves laid off. Even if all the salary were charged against this work it would only amount to a little over fd. An equivalent Native Land Court survey in New Zealand at the schedule rate of 3d. per acre would come to about £800, without allowing anything for travelling-expenses. Suggestions. —During my stay on Niue there were some matters which came under my observation upon which it may not be out of place to offer a few suggestions. One of these is in regard to a water-supply. Niue has no streams whatever, and the Natives, who have no tanks, have to depend on water obtained from caves, often half to three-quarters of a mile from their dwellings. This is carried in cocoamit-shells hung on the end of a stick, so that the supply after a long journey is very limited, besides being heavily charged with lime. This is not conducive either to health or cleanliness in the people. The remedy I would propose is that, as surplus funds of the island administration allow, large storage tanks should be made in the coral rocks at each village and plastered inside with cement. These could be cheaply constructed, and if roofed over with galvanised iron the tropical rains would soon fill them. There is not the least doubt they would prove an immense boon to the inhabitants. The Natives are very expert in adzing out and squaring the planks for the frames of their houses, but this is a tedious process besides being very wasteful in regard to the timber. If it could be arranged for two or three intelligent young fellows to be brought up to New Zealand for a few months and put with pit-sawyers, they on their return to Niue could teach others, and thus a great saving in labour and material would be effected. In the same way, if a few could be apprenticed to blacksmithing and carpentering it would be a fine thing for the island. As it is, Mr. Maxwell tells me that when the road parlies come in with picks and drills to be sharpened, he has to work at the forge himself, as none of the men understand anything about it. In conclusion, I beg to tender my best thanks for the opportunity of doing this survey; it has not only proved a most interesting experience, but has more than realised my anticipations in restoring my health. I have, &c, H. D. M. Haszard. The Surveyor-General, Wellington. District Surveyor.

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No. 172. Union Steamship Company of New Zealand (Limited), Sir,— Wellington, 13th April, 1904. Referring to your letters of the 22nd September and the 22nd ultimo, numbered 99 and 25 respectively, and our interview of yesterday, I have the honour to inform you that I have placed before my directors your inquiry with regard to a fortnightly service between New Zealand and Itarotonga, and have requested that a full expression of their views on the subject be sent direct to you, and this you will doubtless receive in due course. I have, &c, W. A. Kennedy, Manager. The Hon. C. H. Mills, Minister in Charge of Cook Islands, Ac, Wellington.

Nos. 77 & 162.

No. 173. Cook and other Islands Administration, Wellington, Sir,— 15th April, 1904. I have to acknowledge the receipt of your letter of the 27th February, No. 20/1904, forwarding Captain Nagle's report with reference to the statement that the lepers at Morokai, Penrhyn Island, were not always sufficiently fed. lam glad to hear that the position is so much better than was represented in the Legislative Council, and hope that every effort will still be made to minister to the needs of these afflicted people. I understood that something was being done for them by the Islands Government, but Captain Nagle's report does not appear to mention anything beyond private contributions and the levy on pearl-shell. Please advise me as to this point. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 147,

No. 174. Sir,— Niue, 19th April, 1904. I have the honour to acknowledge the receipt of your letter No. 28, of the 22nd March, referring to duties on Native luggage. I would explain that all apparel, &c, showing signs of wear is admitted free, but large quantities of women's underclothing and dress-pieces are brought in by Natives returning from Maiden Island, and also from Tonga, where, I am informed, goods are often sold by auction at extremely low prices. As these goods are sometimes bought with the intention of subsequently retailing them to Natives on this island, it would be manifestly unfair to traders to permit them to come in free. I allow the Natives considerable latitude, and charge duty on the class of goods generally that I have had myself to pay duty upon when returning to New Zealand from abroad. Tobacco and perfumes are also brought in in much larger quantites than the personal requirements of the individual would warrant. The strict application of the clause quoted in your letter would not exempt Natives from having to pay duty here. I have, &c, C. F. Maxwell, Resident Commissioner. The Hon. C. H. Mills, Minister of Trade and Customs, Wellington.

No. 161

No. 175. Cook and other Islands Administration, Wellington, Sib,— 22nd April, 1904. I have to acknowledge the receipt of your letter of the 25th February, relative to having a boat-passage formed through the reef at Tuapa. I am aware of the difficulty of having this work done effectively at Niue as compared with islands such as Mangaia, but probably when you have conferred with the commander of the warship he will see that the work is done to the best advantage, even though he may not have time to cut through the whole width of the reef. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 146,

No. 176. Cook and other Islands Administration, Wellington, Sir,— 27th April, 1904. Your letter of the Bth March, with schedules showing the extent of road-work constructed in Niue, and the cost per chain, came safely to hand. lam pleased to learn that such a considerable length of road-work has been completed at such a reasonable cost. I can quite understand your reason for exceeding the amount authorised, and consider you did what was best under the circumstances. You are authorised to spend another £200, and you will no doubt resume the work immediately the necessary supplies come to hand, as the sooner we have direct communication between the different parts of the island the more quickly will trade expand. It is satisfactory to know that once the roads are made on Niue there is not likely to be much expenditure required for repairs. I have, &c, The Resident Commissioner, Niue. C. H. Mills. P.S. —You might advise me which roads you consider it most necessary to complete. Apparently none of the main villages have yet been reached. —C.H.M.

No. 150.|

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No. 177. Sir,— Rarotonga, Cook Islands, 28th April, 1904. I have the honour to report, for your information, that I returned yesterday to Rarotonga, after a ten daj-s' inspection tour round the islands of Mauke, Mitiaro, Atiu, and Manuae. During this visit I cleared up all the cases pending in the High Court and Land Titles Court, and finally settled the claims of the London Mission in those islands. Among other matters at Atiu I formally took the main road from Taungauui landing to the Village of Areora, 155 chains long, in the name of His Majesty King Edward, and proclaimed it as a high road for all time. The people of Atiu recognise the necessity for this action and approve it; in fact, they are proud that the old paths trodden by the feet of their ancestors should obtain formal recognition in the Court. It is my intention to continue this line of action by surveying every road-line throughout the Islands, marking the chief points with iron pegs imbedded in concrete blocks, as points of departure for future surveys. By these means we shall shortly possess detailed maps of each island. At Atiu and at Mitiaro the people live in content under their own chiefs, and though they may do but little good either for themselves or their island, they are satisfied with their lot: but at Mauke it is otherwise, for there they have religious discord and intense tribal jealousy. The Catholic Mission of St. Joseph has obtained a footing in the island among the adherents of Tamuera, of the Ngatitoua, and that tribe has given to the mission a piece of land which is claimed by the Chief Tararo. This question of ownership 1 attempted to settle, but found that it involved the tribal boundaries. 1 had therefore to defer the investigation until I could survey the outer boundaries of each chief's territory, and thus settle the small question without prejudice to the larger interests involved in the tribal boundaries. I much fear that Tamuera has become a Catholic merely to assert his independence of Tararo and Te Au, and if so the bad feeling of the present day will continue. I have, &c, The Hon. C. H. Mills, Minister for the Islands. W. E. Gudgeon.

No. 178. Sir,— Eastern Pacific, Rarotonga, 28th April, 1904. With reference to your letter of the 15th instant, No. 42, I have the honour to inform you that Captain Nagle has authority to supplement the ordinary collection made in support of the lepers at Penrhyn from the Government funds, but has not hitherto found it necessary to do so. The lagoon swarms with fish, and there are cocoanuts growing on the Island of Morokai; therefore the European food supplied is ample to support the few lepers on the island. Captain Nagle is a kindly humane man, and can be trusted to see that these unfortunate people do not want, for he knows my opinion on the subject. I have, &c, The Hon. C. H. Mills, Minister for the Islands. W. E. Gudueon.

No. 173,

No. 179. Sir, — Eastern Pacific, Rarotonga, 28th April, 1904. I have the honour to acknowledge receipt of your letter No. 29, of 21st March last, with reference to the annual payment on cost of schooner. ' Personally, I can see no other method of dealing with the matter than that proposed by you, unless it be decided to sell the schooner, and that is hardly expedient at present. I would, however, suggest that you bear in mind the value of the schooner to Niue, and the fact that that island has hitherto borne no part of the expense of the schooner, and that the amount due by Niue be definitely fixed for each animal payment. I have, &c, The Hon. C. H. Mills, Minister for the Islands. W. E. Gudgeon

No. 160.

No. 180. Cook and other Islands Administration, Wellington, Sir,— 28th April, 1904. I am in receipt of your letter of the 18th January, with a statement of Niue revenue for the quarter ending the 31st December, 1903, showing a credit balance of £1,101 Is. Bd., and other accounts setting forth the financial position of the island at that date, and have to express my satisfaction with the good results shown. I am having a computation made in the Customs Department to ascertain what will be a fair percentage to allow to Niue Island Account for goods which have been shipped from New Zealand duty paid. I note what you say regarding duty collected at Rarotonga on goods shipped to Niue, and will ask the Resident Commissioner to supply me with a statement of account. I am writing you separately on the subject of stamps. I have, &c, The Resident Commissioner, Niue. C. H. Mills,

No. 126,

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No. 181. Cook and other Islands Administration, Wellington, Sir,— 29th April, 1904. In his report on the survey of Niue Island, Mr. Haszard suggests that large storage-tanks be constructed at each village, and roofed over with galvanised corrugated iron, so that the tropical rains would fill them. You mentioned in your letter of the Ist December last that you intended going on with the experiment of sinking wells in the outlying villages that did not possess the facilities for collecting rain-water that exist in Alofi, but if the necessary provision could be made, as Mr. Haszard proposed, by the erection of iron roofs, there is no reason why you should not have a reliable supply of pure water in each of the settlements. If this can be managed it will be much more satisfactory than sinking wells 60 ft. or 70 ft. through the coral rock for water, which, if found, is likely to be more or less brackish. I should like to hear your views on the matter, but as the question is an important one, you had better proceed with the work in whichever way seems most practicable as soon as your funds permit. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 113

No. 182. Sir, — Rarotonga, Cook Islands, 30th April, 1904. I have the honour to enclose a memorandum from Mr. Blame on the subject of the jurisdiction of this Court as regards wills, and have the honour to suggest that this matter should be definitely settled. I am of opinion that the High Court has no power to adjudicate either in the granting of probate, &c, to wills, or in any matters of bankruptcy, since the annexation of these Islands to New Zealand; and I would suggest for your consideration that these matters should now be settled definitely. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

Enclosure. Memorandum for the Resident Commissioner, Rarotonga. It is doubtful in my opinion whether the High Court has jurisdiction or power under " The High Court Act, 1898," to grant probate to the will or administration of the estate of any deceased person. I would suggest, in order to make the matter clear, that a clause to the following effect should be inserted in the Cook Islands Bill, to be introduced this next session of Parliament: — " The High Court of the Cook Islands shall have power to grant probate to the will or administration of the estate of any deceased person having real or personal estate within the jurisdiction of the Court, and such power shall be deemed to have been existent in the Court as from the 11th day of June, 1901." I may state for your information that since the 11th June, 1901, the Court has made seven orders for probate or administration, none of which are contentious matters. E. Blame, Registrar's Office, Rarotonga, 22nd April, 1904. Registrar, High Court.

No. 183. Cook and other Islands Administration, Wellington, Sir,— 3rd May, 1904. I have to acknowledge the receipt of your letter of the 30th March, with descriptions of the lagoons at Penrhyn, Manihiki, and Aitutaki, required to complete the Proclamation setting apart the lagoons as public reserves under section 15 of " The Cook and other Islands Government Act, 1901." I agree with you that it would not be wise to make the change proposed on the strength of a Proclamation alone, in view of the questions that may be raised as to whether the areas to be dealt with are "Crown lands," and whether the rights of the Natives to fish for pearl-shell, <fee, can be superseded in this way. The intention, of course, was to confirm the provisions of the Proclamation by an Act of the General Assembly; but seeing that Parliament will be meeting now in a few weeks it is hardly worth while going on with the Proclamation at all. I propose, therefore, to let the matter stand over until Parliament is in session, when I will take an early opportunity of introducing a Bill to deal with the matter. I notice that you have included a description of the Aitutaki lagoon. I shall be glad to hear what arrangement, if any, was made with Messrs. Dexter and Winchester on the lines suggested in your letter of the 10th June last, where you proposed to give them the exclusive right to dive for shell in this lagoon for a period of ten years, in recognition of their services in planting the lagoon with Scilly shell. If any rights have been conceded to them I think it will be advisable to make reference to them in the proposed Bill. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills. 12—A. 3.

No. 16P,

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No. 184. Cook and other Islands Administration, Wellington, Sib,— 10th May, 1904. I have to acknowledge the receipt of your letter of the 19th April, 193/N, relative to duty charged on Natives' luggage. I gather from what you have stated that the Natives have always been given full advantage of the exemptions allowed by law, and apparently no further action in the matter is necessary. 1 have, &c, The Resident Commissioner, Niue. C. H. Mills.

No; 174,

No. 185. Cook and other Islands Administration, Wellington, Sir,— 11th May, 1904. I enclose herewith a Warrant, signed by His Excellency the Governor, appointing you Resident Commissioner to administer the Government in the Island of Niue, in accordance with section 4of " The Cook and other Islands Government Act Amendment Act, 190.3." I have already forwarded a copy of the New Zealand Gazette containing notice of the appointment, which, you will observe, dates from the 12th January, 1904. Cabinet has decided that from the Ist April, 1904, you will be paid salary at the rate of £300 a year. The travelling-allowance of 10s. a day which you have been receiving will cease as from the 31st March. I have, &c, C. F. Maxwell, Esq., Resident Commissioner, Niue. C. H. Mills.

No. 186. Cook and other Islands Administration, Wellington, Sir,— 11th May, 1904. I am in receipt of your letter of the 25th February, 152/N, and in reply have to say that refunds should be made in respect of duty paid during the period from the 10th to the 28th December, 1903, at the rate of 3s. 6d. per pound, on the class of tobacco on which the duty has been reduced to Is. per pound. You are authorised to make the necessary refunds. I have, &c, The Resident Commissioner, Niue. C H. Mills.

No. 145.

No. 187. Cook and other Islands Administration, Wellington, Sir,— 13th May, 1904. Referring to your letter of the 4th February, relative to the duty on claret, I have now to inform you that an Order in Council has been passed, dated the 11th instant, reducing the duty to 2s. per gallon. A copy of the New Zealand Gazette containing the Order will be sent you shortly. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 137.

No. 188. Cook and other Islands Administration, Wellington, Sir,— 14th May, 1904. I am in receipt of your letter of the 30th March, with reference to the Islands of Atiu, Mitiaro and Mauke, in relation to the question of appointing Resident Agents. I assume you will bring up the matter of appointing an agent in Atiu as soon as you consider the time ripe for such a step. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 165.

No. 189. Cook and other Islands Administration, Wellington, Sir,— 21st May, 1904. The question of traders' licenses in Niue has been under consideration by Cabinet. I have not heard from you as to whether you have passed, or intend to pass, an Ordinance reviving any of the provisions of the Traders' License Act, which was repealed, so far as its application to Niue was concerned, by the Cook and other Islands Government Act Amendment Act of last session; but I think some amendments in the old Ordinance are desirable. I agree with charging fees of £10 for a wholesale and £5 for a retail license; but I do not think the fact of a man opening a branch store should necessarily constitute him a wholesale trader, making him liable to a total fee of £15. I think a license fee for a branch retail store might be issued for £2 10s., and if the trader's main store is a purely retail one his total fee would be £7 10s. I shall be glad to Lear from you On this subject. I have, &c, The Resident Commissioner, Niue. 0. H. Mills.

No. 190. No. 152. The Hon. the Minister of Public Health. Will you please arrange for a supply of vaccine to be sent to Niue. The " Ranfurly " will probably be leaving Auckland in about a week, C. H. Mills. 21/5/04.

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No. 191. Memorandum for the Hon. C. H. Mills, Minister of Trade and Customs. Department of Public Health, Wellington, 23rd May, 1004. Regarding the application by the Resident Commissioner, Nine, for a supply of vaccine to be sent to that island, I have to inform you that the Health Department will despatch a supply to the Resident Commissioner per s.s. " Countess of Ranfurlv," as requested. J. G. Waud, Minister of Public Health

No. 152,

No. 192. Cook and other Islands Administration, Wellington, Sir,— 23rd May, 1904. Referring to the question of the alienation of land, which was brought up at the Native meeting when I was in Niue, and also mentioned by yourself, I have to say that the matter has been considered by Cabinet, and it was thought that it might be advisable for the Island Council to pass an Ordinance providing that no laud shall be sold except to the Government. Cabinet would prefer that the Native land be leased, and if the Island Council considers this course desirable, arrangements might be made as it would appear from Mr. Haszard's report that there are large areas of land on the Island that the Natives might lease, and thus add materially to their private resources. I have, &c, The Resident Commissioner, Niue. C. 11. Mills.

No. 193. Cook and other Islands Administration, Wellington, Sir,— 23rd May, 1904. I am in receipt of your letter of the 27th February, No. 157, with reference to the schooner " Countess of Ranfurlv." It has been decided that the vessel shall be retained for the Islands service. The scheme for her purchase by the Islands Administration will therefore be carried into effect, and I propose that the payments shall commence as from the beginning of the current financial year. Payments will be made by the Administrations in accordance with the 3-per-cent. fifteen-years table forwarded with my letter of the 21st September last, and I propose that the annual instalment of £502 12s. shall be divided between Rarotonga and Niue in proportions of three-fifths and two-fifths, making Niue's yearly payment £201 os. 9d. This seems a fair adjustment on the basis of annual revenue, and Colonel Gudgeon falls in with the idea. I will probably write you later on with reference to the details of the scheme. I have, &c, The Resident Commissioner, Niue. C. H Mills.

No. 148

No. 194. Sir,— Niue, 25th May, 1904. I have the honour to acknowledge the receipt of your letter No. 26, of the 22nd March, 1904, together with Niue Island Ordinances Nos. 1, 2, 5, 6, 7, 8, 9, 10, and 11, which have received the assent of His Excellency the Governor, and No. 3, " The Native Magistrates and Police Ordinance, 1903," which is returned for amendment. I note the action taken in regard to the Marriage, Divorce, and Registration Ordinance, No. 4, and consider it is in every respect preferable that the procedure governing such an important measure should be in conformity with the New Zealand law. In future Niue Island Ordinances will be forwarded direct to you. I would explain that my reason for not filling in the date in the heading and short title of some of the Ordinances, also the date to which the members of the Niue Council should hold office, is that I was doubtful as to what date they should bear. When forwarding the Ordinances to the Resident Commissioner at Rarotonga for transmission to His Excellency the Governor I stated the cirucmstances, and requested him (as my superior officer) to fill in the proper date (see extract from letter herewith). Evidently the matter either slipped his memory or he considered it beyond his powers to do so. I shall be able to complete any Ordinances which may be passed in future before despatching them to you. When the translations of these Ordinances are put in order I will send them to the Govern ment Printer, so that some copies may be struck off for distribution. I have, &c, C. F. Maxwell, Resident Commissioner, Niue. The Hon. Mr. Mills, Minister in Charge, Cook and other Islands Administration, Wellington,

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No. 195. Cook and other Islands Administration, Wellington, Sir,— 26th May, 1904. I have to acknowledge the receipt of your letters of the 18th January, Nos. 137 and 139, vith returns of exports and imports for the quarter and year ending the 31st December, 1903; also your letter, No. 186, of the 7th Ajsril, forwarding an amended summary of imports. I am also in receipt of your letter of the 2nd April, No. 179, with statement of the revenue of Niue for the quarter ending the 31st March, 1904. These all show a very satisfactory advancement, and it is gratifying to know that the affairs of the island are in such a sound position. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

Nos. 127, 128, & 167

No. 196. Sir, — Harotonga, Cook Islands, Ist June, 1904. I have the honour to forward attached Ordinance No. 1 of the Island of Manihiki for the approval of His Excellency the Governor. It is unfortunate that there has been such delay in obtaining the approval of His Excellency to this Ordinance, but I would point out that lamin no way to blame for the same. Any measure of this sort must be passed by the Council in the crudest form and in Maori, and I have to translate the same from the books of the Council. To send this European translation back to the Council for their approval is little more than a form, for they do not understand it, and would not indorse the translation if they did not trust me. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

Nos. 144 &168.

Enclosure. No. 1 of 1902. —An Ordinance to Regulate Village Life within the Island of Manihiki. 25th October, 1902. Be it enacted by the Island Council of Manihiki: — 1. The Short Title of this Ordinance shall be " The Manihiki Ordinance No. 1." 2. The ancient law of Manihiki as to dogs is hereby re-enacted. Any dogs now on the island shall be destroyed at once by the owner or police, and any person hereafter importing a dog shall be liable to a fine of not exceeding ten shillings, and the Court shall order such dog to be destroyed by the police. 3. It shall not be lawful to allow pigs to wander at large. The owner of any pig who shall be guilty of an offence against this section shall be liable to a fine of not exceding five shillings, in addition to the cost of any damage done by the said pig. In any case where the owner of a wandering pig cannot be ascertained, the pig shall be killed. 4. Any person wandering about after 9 p.m. may be arrested and taken to the Courthouse, where he may explain his reasons for being abroad. The Island Magistrates may fine any offender under this section not exceeding two shillings. 5. The ancient right of rahui shall devolve upon the Island Council of Manihiki, and, subject to the approval of the Resident Commissioner, the said Council may impose such restrictions upon the gathering and sale of cocoanuts as they shall deem advisable in order to prevent theft, and to enable the widows and weaker members of the community to gather their nuts without hindrance. 6. Any regulations made under section five of this Ordinance shall have the force of law, and any infraction thereof may be punished by a fine of not exceeding twenty shillings. 7. During the existence of a rahui it shall not be lawful to trade in or sell nuts except at the village mart, in the presence of the island authorities. Any offence against this section may be punished by a fine of not exceeding ten shillings. 8. Whereas thousands of green cocoanuts are wasted yearly on the occasions of births, deaths, and marriages, and the building of houses: it is hereby enacted that from the date of this Ordinance not more than one thousand nuts shall be gathered for any such occasion, and the green nuts aforesaid shall be gathered under the supervision of the police. Any offence against this section shall be punished by a fine of not exceeding five pounds. 9. Any person found trespassing on the land of another, and who shall be unable to show sufficient reason for such trespass, shall be liable to a fine of not exceeding forty shillings; and any one trespassing on land under rahui may be prosecuted by order of the President of the Island Council, and shall be liable to the above fine. 10. From and after the passing of this Ordinance no debt incurred by any Native inhabitant of Manihiki shall be recoverable in any Court, except such debts as shall have been incurred previous to that date, which may be recovered by process of law within twelve months from the first day of January, one thousand nine hundred and three.

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11. Any person who shall sell or give any intoxicating liquor to any Native inhabitant of Manihiki shall be liable on conviction to a fine of not exceeding ten pounds: Provided always that the Island Council may at any time authorise the issue of either spirits, beer, or wine in limited quantities for the use of a sick person. 12. Any person found guilty of the offence of drunkenness shall be liable to a fine of not exceeding twenty shillings. 13. Any person committing adultery shall be liable to a fine of not exceeding twenty shillings 14. Any unmarried man or woman offending against the laws of propriety or decency may be fined not exceeding four shillings. 15. The crime of rape shall in all cases be tried before the High Court. 16. Any person fighting in the streets of the village or otherwise breaking the Sabbath shall be liable to a fine of not exceeding ten shillings. 17. In any case where it shall have been proved before the Island Courts that property has been stolen or destroyed, or that stones have been thrown at houses with intent to injure or annoy the owners thereof, and there is reasonable cause to believe that the offenders are either screened or protected by the people of the Oire, such case shall be reserved to be decided by the Judge of the High Court. 18. Any person who shall be convicted of having committed either of the offences mentioned in section seventeen may be fined not exceeding twenty shillings, in addition to the damages awarded by the Court. 19. All the offences under this Act, save and except that mentioned in section fifteen, may be heard and determined by the Native Judges of Manihiki, and in every instance hard labour given in default of payment at the rate of one day for each shilling of the fine. Prisoners may be employed in any work of public utility, including the clearing of land of the surplus cocoa-palms. Drafted by me at the request of the President of the Island Council of Manihiki from the Council resolutions recorded in the minute-book of that body. W. E. Gudgeon, 7th January, 1903. Kesident Commissioner. H. Williams, President, Island Council of Manihiki. I, Henry Williams, hereby certify that this Ordinance has been passed in its present form by the Council of Manihiki, on the 19th day of May, 1904. H. Williams, President of Council. [Assented to by the Governor, sth July, 1904.j]

No. 197. Sir, — Rarotonga, Ist June, 1904. During my visit to the Island of Manihiki, Mr. George Ellis requested me to accept his resignation of the office of Kesident Agent for the Tukao Division of the Island, and stated that he was now too blind to be able to read or write, and could not fulfil any one of the duties of his position; he therefore handed me his commission to be returned to you. For the time being I have placed the Tukao Division under Mr. Williams, who is the only man on the island fitted for the position, and have the honour to suggest that Mr. Ellis's resignation be accepted. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 198. Cook and other Islands Administration, Wellington, Sir,— 4th June, 1904. Referring to my letter dated the 3rd May (the despatch of which has been held over until now), I enclose herewith for your information a copy of the Bill that I have had prepared, dealing with the question of setting aside certain lagoons as reserves for pearl-shell fishing, &c. Under this it will be necessary to issue a Proclamation in respect of each reserve, and the provisions governing the fishing, &C, will be contained in regulations to be made by the person administering the reserve. I shall be glad to have your remarks on this Bill as early as possible. The present title of the Bill will be changed, as there are some other matters that 1 am having embodied, along with this one, in an Amending Cook and other Islands Government Bill. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. J 83,

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No. 199. Cook and other Islands Administration, Wellington, Sir,— 4th June, 1904. On the 13th April I received a letter from your manager here, Mr. W. A. Kennedy, stating that he had placed before the directors of the company my inquiries with regard to the possibility of establishing a fortnightly service between New Zealand and Rarotonga, and that I would receive a reply direct from you in due course. It is now over six weeks since the date of Mr. Kennedy's letter, and, as Parliament will be meeting shortly, I shall be glad if you will let me have a definite reply as early as possible; up to the present none has reached me. I have, &c, C. H. Mills. The General Manager, Union Steamship Company (Limited), Dunedin.

No. 172,

No. 200. Cook and other Islands Administration, Wellington, Sir,— 7th June, 1904. I am in receipt of your letter of the 30th April, No. 35/04, with reference to the power of the High Court of the Cook Islands to grant probate to a will, or administration of an estate, and in matters relating to bankruptcy, and in reply have to say that I have referred the matter to the Law Draftsman to have the necessary provision drafted for insertion in the amending Bill which I propose to introduce during the coming session of Parliament. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 182

No. 201. Cook and other Tslands Administration, Wellington, Sir— Bth June, 1904. Referring to the question of remitting the duty on drugs imported into Niue by the London Missionary Society, which you brought before me when I was on the island, and which was also mentioned to me by Mr. Head, sen., I have to inform you that Cabinet has decided to give effect to your recommendation on this matter, and an Order in Council has been passed providing that drugs imported by a mission society for dispensation among the Natives shall be admitted free of duty. No action was taken by Cabinet with reference to the exemption of timber and iron for mission purposes, which was asked for by Uea at the Native meeting, but I purpose looking into this matter again in connection with the Rev. Mr. Lawes's application of the 12th January, 1903. A copy of the New Zealand Gazette notice re the above remission is sent you herewith. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 202. Cook and other Islands Administration, Wellington, Sir,— 9th June, 1904. I am in receipt of your letter of the 28th April relative to the proposed purchase of the schooner " Countess of Ranfurly " by the Islands Administrations. I propose that the scheme shall come into effect as from the beginning of the current financial year, payments to be made in accordance with the 3-per-cent fifteen-years table sent you. The total annual payment is £502 125., which will be divided between Rarotonga and Niue in proportions of three-fifths and two-fifths. The amount of your annual instalment will therefore be £301 11s. 3d. I have advised Mr. Maxwell as to the payment of Niue's share of .£2Ol os. 9d., and I have no doubt that under the more careful management, that we are now looking for, the purchase will be effected by the Islands Administrations without any great difficulty. Any adjustment that may be necessary as between Rarotonga and Niue in respect of the period that has passed since the latter was placed under separate jurisdiction can be made later on. I may have to write you again as to the details of the scheme, but meanwhile I would like to know that the proposal for the gradual purchase of the vessel is being put into effect on the lines indicated above. I have had another application from Mr. Tame on behalf of his client, but have advised him that Cabinet has definitely decided not to dispose of the vessel. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 179,

No. 203. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. Replying to your letter of the 9th February last, No. 18/04, I have to say that the question of a site for the proposed accommodation-house at Rarotonga having now been carefully considered, the Government are of opinion that it would be best to erect the building on the Hospital grounds. The vote of £500 (on account of £1,000) has now been authorised by Cabinet to enable

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the work to be proceeded with. Will you please, therefore, send me a sketch-plan of what you consider will be a suitable building for the requirements of, say, the next ten years, and show the position on the section on which you propose to erect it. It had better be designed so as to admit of additions being made later on. Please also give me your estimate of the cost, as it is possible I may obtain a further grant if really necessary. I would like to receive the plan and other information by return mail, with a list of the material you require, so that if the plan is adopted the requisites for the building may be ordered in time to be sent down by the next trip of the schooner. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 204. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. Referring to my letter of the 13th May, relative to the reduction in the duty on claret imported into the Islands, you will notice from the copy of the Order in Council forwarded herewith that the date of it differs from what was stated in that letter. An amendment was made in the Order at a subsequent meeting of Council, and the date from which it will now take effect is, as you will see, the Ist July, proximo. I have, &c, The Resident Commissioner, Rarotonga. C H. Mills.

No. 187.

No. 205. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. After careful consideration, Government has decided to adopt the Ordinance forwarded on the Bth February last, providing for Government control of the liquor traffic. It will therefore be sent on to the Attorney-General and to the Governor, and after approval by His Excellency will be returned to you. This Ordinance will certainly place matters on a better footing than exists at present; but probably when the accommodation-house is erected another Ordinance may have to be passed placing the sale of liquor more entirely under State control than this one does. I have, &c, The Resident Commissioner, Rarotonga. C H. Mills.

No. 143.

No. 206. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. I have to acknowledge the receipt of your comprehensive report for the year ending the 31st March, 1904, with returns of the revenue and expenditure for the year, and estimates of the revenue and expenditure for the year 1904-5. I propose going through them carefully again, and will then reply to you in detail. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 169.

No. 207. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. Referring to the question of cutting boat-passages through the reefs at Mangaia and Atiu, I now enclose for your information a copy of a letter received by His Excellency the Governor from Admiral Fanshawe, stating that H.M.S. " Clio " will leave Sydney on the 12th instant for Noumea and Tahiti, and will do the work required on her way to or from the latter. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

Enclosure. My Lord,— " Euryalus," at Sydney, 31st May, 1904. I have the honour to inform Your Excellency that I have given directions to the commanding officer of His Majesty's ship " Clio " to endeavour to make boat-passages through the reefs at Tuapa (Niue), Mangaia, and Atiu, as requested in your letter No. 588, of the 10th October, 1903. 2. His Majesty's ship " Clio " leaves Sydney on the 12th proximo for Noumea and Tahiti, and the passages will be made on her way to or from the latter island. 3. I have directed Commander Wilkin to consult Lieut.-Colonel Gudgeon, the Resident Agent at Rarotonga, before commencing the openings in the islands of the Cook Group. 4. On the return of the ship to Sydney I will acquaint Your Excellency as to the results of tbtwork, and the amount and cost of the gun-cotton, &c, expended. I have, &c, Arthur D. Fanshawe, Vice-Admiral and Commander-in-Chief. His Excellency the Right Honourable the Earl of Ranfurly, G.C.M.G., Governor and Commander-in-Chief, New Zealand.

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No. 208. Cook and other Islands Administration, Wellington, Sib,— 11th June, 1904. I enclose herewith for your information a copy of a letter received by His Excellency the Governor from Admiral Fanshawe, with reference to opening a boat-passage through the reef at Tuapa, Niue. I have, &c, The Resident Comissioner, Niue. C. H. Mills.

Enclosure. [See No. 207.]

No. 209. Cook and otGter Islands Administration, Wellington, Sir,— 11th June, 1904. I have to acknowledge the receipt of your letter of the 28th April, with reference to your visit to Mauke, Mitiaro, Atiu, and Manuae, during which you were able to settle all pending cases in the High Court and Land Titles Court. I am glad you have had the road from the landing-place at Tamanganui to Areora Village in Atiu proclaimed in the name of His Majesty, and that the people themselves approve the step. I hope you will be equally successful with your surveys of roads throughout the Islands. I note what you say as to the present condition of things in the Island of Mauke. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 177.

No. 210. Cook and other Islands Administration, Wellington, Sir,— 11th June, 1904. I was glad to read in your annual report such satisfactory references to the work being done at Tereora School. I have been making inquiries lately from those in charge of the Victoria College at Auckland and the Te Aute College, Hawke's Bay, as to what it would cost to receive, say, five girls at the former and five boys at the latter, and educate them with the view of sending them back to the Islands as teachers. Directly I have received replies I will communicate with you again, but, meanwhile, perhaps you will let me have your opinion on the proposal. Is some such step necessary or desirable, or can Tereora School be made to supply the needs of the Islands for the present? I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 169,

No. 211. The Union Steamship Company of New Zealand (Limited), Dunedin, Sir,— 13th June, 1904. I have had under consideration your communication through our Wellington manager inquiring on what terms this company is prepared to provide a monthly service from the southern ports of New Zealand to Cook Islands, alternating with the monthly service now in existence between Auckland, Cook Islands, and Tahiti. I regret very much that we cannot see our way to make you an offer for this service on favourable terms, as it does not seem possible that the trade to and from the Cook Islands can support two separate steam services. The Group is at present almost entirely supplied from New Zealand, the total imports being valued at £34,886, of which £25,800 is credited to New Zealand, leaving only £9,000 from other places. Although there is no doubt that with careful government these figures will increase gradually from year to year, there appears to be nothing to warrant a second line, which would only have the effect of diverting a portion of the meagre trade from the present route and rendering the existing service unprofitable. It seems to me that the Cook Islands market can be best supplied from Auckland, as the Auckland merchants, from long association with the various island trades, understand its requirements. On the other hand, the southern merchants have never made a study of the island trade, nor would it be worth their while to do so. As an evidence of this I may mention that although Fiji has been fairly well connected with Wellington for some past years, the exports from Wellington to Fiji do not aggregate 150 tons in the year I would point out that the " Taviuni," now employed between Auckland, Cook Islands, and Tahiti, is doing her work well, and fulfilling all reasonable requirements of the trade; and it must not be forgotten that she derives part of her support from the Tahiti trade. As regards the exports from Cook Islands, these amounted last year to £34,750, of which goods to the value of £16,100 (or rather less than one-half) came to New Zealand, the remainder, I presume, being copra and other island products forwarded by sailers direct to Europe.

No. 77.

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It is not unlikely that a direct service to Wellington and southern ports would lead to development in the fruit trade, and yield fair freights during a few months of the year; but at the best this would not go far towards paying the amount necessary to support a suitable steamer. For the carriage of fruit a fair speed is required —certainly not less than ten to eleven knots per hour; und for this at least £1,500 a month would be required, fully half of which would need to be provided by subsidy, say, £10,000 a year. I regret I cannot regard this proposal in a more favourable light, as the company is anxious to do all it can towards the development of the Cook Islands trade, and will gladly provide a second service so soon as there is a reasonable prospect of its being self-supporting. I am, &c, James Mills, Managing Director.

No. 212. Cook and other Islands Administration, Wellington, Sir,— 17th June, 1904. I have to acknowledge the receipt of your letter of the 13th instant, and to thank you for the information conveyed therein. Authority has been given to the Resident Commissioner at Rarotonga to commence the erection of an accommodation-house there for the convenience of the travelling public. When this is completed, is it probable that your company would be willing to arrange a trial service for the best months during the fruit season, and so ascertain, by a practical experiment, what the passenger traffic is likely to mean? I think the busiest fruit months will also be the most favourable for tourist traffic. I have, &c, C. H. Mills. The Managing Director, Union Steamship Company (Limited), Dunedin.

No. 212.

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