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Judge (Tepou o te Eangi) decided that there was ample evidence to justify the prosecution, but not enough for conviction. He therefore refrained from giving judgment, in order that the prosecution might be revived if further evidence were obtained. Meanwhile the Licensing Officer and the defendant had each to pay $9 towards the costs of Court—in other words, towards the payment of the judicial establishment and the police. The defendant has complained to me, and protested against paying costs; but 1 find that the demand is in accordance with precedent, and that the judgment is regarded in the nature of " Not proven " only. The revenue for October is only $304 —a falling-off that was to be expected, and will probably last till the new coffee-crop comes in. The natives of Earotonga, I am glad to say, are becoming alive to the necessity of greater care in dealing with this staple, and have planted out a large number of young trees this season. Land-disputes are being dealt with in Earotonga by the Judges of the three districts sittingtogether, in accordance with the law passed by the Council in July last. Their services in this matter have been, and are likely to be, valuable. I have, &c, Frederick J. Moss, British Eesident. His Excellency the Earl of Onslow, G.C.M.G., Governor of New Zealand, &c.

No. 7. Mr. F. J. Moss to His Excellency the Governor. (No. 24/91.) My Lord,— British Eesidency, Earotonga, 17th December, 1891. I have the honour to enclose, for your Excellency's information, copies of correspondence with the committee of the Earotonga Club—namely, their letter of the 10th November, asking that they might be allowed to retail liquor at the club to the foreign residents on the island ; and my reply of the 19th November, declining to recommend their application. I have, &c, His Excellency the Earl of Onslow, G.C.M.G., Frederick J. Moss, Governor of New Zealand, &c. British Eesident.

Enclosure No. 1. The Committee of the Earotonga Club to Mr. F. J. Moss. Sir, — Earotonga, 10th November, 1891. We, the committee of the Earotonga Club, would respectfully ask you to grant to them the right to retail liquors to the foreign residents of the island. In urging this we would wish to draw your attention to the trouble and inconvenience there is in obtaining liquor at the present time, and it is felt that the foreign residents are placed in a somewhat degrading position owing to liquors not being allowed to be kept in the club-house. We firmly believe, if you will consent, to the concession asked, that it will insure a better state of affairs on the island, for it would then become the business of the club to keep a careful watch over the liquor traffic, and to give a loyal support to the Government in enforcing the provisions of the liquor law. In asking this we would propose,— 1. That the club should exercise a careful supervision over all liquors received or issued from the bond. 2. The club would see that no one under the influence of liquor would be supplied with liquor, and would do its utmost for the moderate use, and not the abuse, of intoxicating liquors. 3. The club to keep books showing all transactions, such books to be open to the inspection of the Licensing Officer at any time. 4. The club to do its utmost to assist the Government in preventing smuggling and the improper obtaining of liquor by any one... . The granting of this application would, we feel sure, confer a boon upon the foreign residents, and enable the club to make improvements that it would be hoped prove of social benefit to all. We have, &c, J. Muth, Chairman. H. Nicholas. E. Exham. W. H. de Lisle. F. J. Moss, Esq., British Eesident. J. Engelke.

Kua manako au c akono anga meitaki teia.—Tepou o te Eangi. [Translation. —I consider this a good proposal.—Tepou ote Eangi.]

Enclosure No. 2. Gentlemen, — British Eesidency, Earotonga, 19th November, 1891. I have the honour to acknowledge your letter of the 10th instant, asking that the club should have the right to sell liquor by retail to the foreign residents of the island, to be, as I understand the proposal, drunk upon the premises. The sale and delivery of liquor are now forbidden by law, unless the person buying shall have previously obtained from the Liceusiug Officer a permit to buy. The change you propose would nullify this provision, and could only be carried out by alterations in the law equivalent to its practical repeal. A licensed house, without even the usual police supervision, would be established, and the precedent must lead to applications for other houses on the same basis, especially as the