A.—3.

No. 49. (Telegram.) 24th September, 1901. Seeing schooner arrived too late for earning much freight until March next, desire you take her and visit Penrhvn, Palmerston, Manihiki, and such other islands as you deem desirable. We have appointed Captain Martin Nagle, Collector Customs, Postmaster, Penrhyn, and, m respect to other islands, you should make such temporary arrangements pending permanent arrangements and appointments as you deem advisable and in the best interests of the New Zealand Government. More particularly I wish you to look into the pearl-fishing at Penrhyn, and see that the close seasons are kept, and advise as to what regulations by Order in Council should be passed. Also, be on the lookout as to whether any one on the island could with safety be appointed New Zealand Eesident Agent; also, please advise what the position, remuneration, and duties should be. Colonel Gudgeon, Barotonga (Post, Auckland). B. J. Seddon.

No. 50. My Loed, Barotonga, 27th September, 1901. I have the honour to report that the Government schooner arrived at this port from New Zealand on the 3rd instant, bringing Mr. Percy Smith on his way to Niue. At Mr. Smith's urgent request I consented to accompany him to Niue, as I found that he desired to ascertain my views on several points of island administration before committing himself to any definite policy. The schooner was delayed for twenty-four hours at Barotonga m order to ship a new crew, as the Barotonga sailors had demanded to be paid at the rate of £3 per month. To this demand I would not accede. We therefore went short-handed to Aitutaki, and there shipped a crew on the 6th, and arrived at Niue on the 11th instant. On arrival we visited the Bey. Mr. Lawes, who informed us that the so-called King (Tongia) had an abnormal opinion of his own importance, and would probably refuse to meet us at Alofi, or at any place but his own village. This prophecy proved correct. I therefore suggested to Mr Smith that it would be well to meet the natives at the King's village, but that he should take the matter out of the King's hands by calling the meeting himself. Mr. Lawes concurred in this suggestion, and a meeting was called to take place a few days after I left. I may saythat I anticipate that Mr. Smith, who is a man of great firmness and tact, will overcome any difficulties with which he may meet. . As I had no desire to take part in any of the discussion on island matters, 1 left on the evening of the 12th instant for Palmerston Island, and reached our destination early on the 16th. I found the Masters family, to the number of sixty men, women, and children, living in apparent peace, but anxious that some one of them should be appointed to govern the island and act as Magistrate. After some discussion, during which the will of the late William Masters was procured, showing that it was his desire that the eldest son, Joel Masters,.should be the chief of the family, I indorsed the will by appointing Joel Masters agent to the British Eesident and Magistrate for Palmerston Island. This decision seemed hD satisfy all parties, who evidently feared that the second son, William Masters, jun., might be appointed. We left Palmerston at noon on the same day, but did not reach Barotonga until the morning of the 25th, in consequence of the strongest gale of wind experienced for the last eight years, against which we had to beat our way for nearly four hundred miles. I have, &c, W. E. Gudgeon, His Excellency the Earl of Eanfurly, G.C.M.G., British Eesident. Governor of New Zealand.

No. 51. My Lobd Barotonga, 2nd October, 1901. I have the honour to acknowledge receipt of your despatch (No. 971/1901), informing me that all communication with reference to the British Eastern Pacific must in future be sent direct to the New Zealand Minister in charge of the department. The instruction contained therein will be strictly carried out. I regret exceedingly that Your Lordship will be unable to visit the islands of this group during the present season. I have, &c, W. E. Gudgeon, His Excellency the Earl of Eanfurly, G.C.M.G., British Eesident. Governor of New Zealand.

No. 42

• No. 52. My Loed Niue Island, 2nd October, 1901. It seems necessary, in order to realise marriage in Niue between white people and natives, that t|ie laws of New Zealand in reference thereto should be carried out here. To this end I believe all that is necessary is to license the Bey. F. E. Lawes under the New Zealand Act. He is desirous that this should be done. I submit, therefore, that his name be furnished to the Eegistrar-General for that purpose. The following particulars will probably suffice : Francis Edwin Lawes, missionary of the London Missionary Society, stationed at Niue Island. Ordained a minister of the Congregational Church at Broad Street Chapel, Beading, England, 18th June, 1867.

29