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natives have always shown in the Earotonga Council a keen desire that the same law should apply to all in Earotonga. I should like to meet the wishes of the club, and be glad to propose for the consideration of the Arikis and Council any modification of the law not inconsistent with its vital principle. You are, no doubt, also aware that my published instructions enjoin me to regard the present law as experimental only, and that, if it fail, total prohibition must be substituted. I have, &c, J. 0. Muth, Esq. (Chairman), Feedeeick J. Moss, and the gentlemen forming the Earotonga Club Committee.

No. 8. Mr. F. J. Moss to His Excellency the Governor. (No. 25/91.) My Lord, —■ British Eesidency, Earotonga, 17th December, 1891. I have the honour to enclose for your Excellency's information complaints made by merchants and importers of this island, with my notes thereon. The complaints were sent to me originally on the 4th December, in a letter which Mr. Exham (Donald and Edenborough), Mr. Muth (Societe Commerciale), Messrs. Goodwin and De Lisle, Mr. Engelke (Piltz and Co.), and Mr. W. Taylor addressed to me as merchants and importers. The correspondence became somewhat voluminous and involved, and the gentlemen in question requested that they might meet me personally. The minutes of the meeting will explain what took place, and I need not, I think, trouble your Excellency with any further remarks upon them. The point of most importance is the application of these gentlemen to have one or two representatives of the foreign residents in the Federal Parliament. The Arikis and their native advisers are strongly adverse to this. They feel that the interests of the foreign residents are not always their interests, that they are not attached to the place as their permanent home, are not even naturalised, and are, many of them, far from being in sympathy with the natives, or desirous of seeing their attempt at self-government a success. In these opinions a year's experience induces me thoroughly to concur. I have, &c, His Excellency the Earl of Onslow, G.C.M.G., Frederick J. Moss, Governor of New Zealand, &c. British Eesideat.

Enclosure No. 1. Minutes of Meeting, Tuesday, 15th December, at 9.15 a.m., at the Office of the British Eesident, at the Bequest of certain Merchants and Importers who had been in Correspondence on certain Subjects with him. Present: Mr. Exham (Donald and Edenborough), Mr. Engelke (Piltz), Mr. Muth (Societe Commerciale), Mr. De Lisle (Goodwin and De Lisle), Mr. W. Taylor; Judge Tepou, deputed by Makea; Maretu, deputed by Pa ; Mr, J. M. Salmon, deputed by Tinomana. Mr. Gelling, member of the Earotonga Council, was also present. Mr. Henry Ellis attended as correspondent of the New Zealand Herald. Mr. Moss explained that, though the complaints made had been addressed to him as British Eesident, many of them concerned the Native Government, and he had asked the Arikis to depute gentlemen to attend, and report to them what was done. He did not wish, however, to evade the full responsibility devolving upon him as the Arikis' adviser, and was glad to meet the gentlemen who had addressed him in that capacity. The correspondence between them had become intricate and involved. He had therefore asked them to let him know, not later than last evening, the subjects upon which they wished to meet him. They had replied that the subjects were those contained in the correspondence. This was too vague, and he had therefore summarised them from the letters sent to him by the gentlemen then present. He would read the summary, and if they approved it he should ask them to initial the paper in recognition. The summary (attached hereto) was then read twice and initialled, one addition only being made—namely, that respecting the offer for examination of books in connection with the incidence of the import duty. The addition was duly initialled by Mr. Exham on behalf of the merchants and importers present. A conversation ensued, but the only two points clearly put were—(l.) Would Mr. Moss advise the Government to prosecute the " Jessie Nicol"? This Mr. Moss declined to do. No infringement of the law had occurred to warrant, in his opinion, any such prosecution. (2.) Would Mr. Moss advise that the foreign residents should be represented in the Federal Parliament ? To this Mr. Moss replied that he did not consider there was a community of interests between the merchants and importers and the natives sufficient to warrant his giving such advice. On the contrary, he thought that none but natives or persons naturalised should sit in the Parliament. No laws could be made without his approval, and if he erred or neglected in performing that duty they could always complain to the Governor of New Zealand. This ended the business of the meeting.

Enclosure No. 2. Summary referred to. 1. " Jessie Nicol." —" That she arrived at this port on Sunday, the 22nd November, and, without any communication -with the proper authorities, proceeded to Ngatangiia, and landed certain passengers and their luggage, contrary to the laws of the port." " That on the 24th of the same