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Dr. Gatley, who allowed a suspicious case to pass him without reporting the same to me. The consequence was that twenty-five men were allowed to leave for Tahiti to work the cargo at that place, and on their return spread the disease throughout this settlement. So far there have been no deaths, thanks to the very mild weather, and I am in hopes that at this season, when the warm moist weather of the summer is certain to prevail, there will be few if any deaths. I have, &c, W. E. Gudgeon, The Hon. C. H. Mills, New Zealand. Resident Commissioner.

No. 38. Sir, — British Residency, Rarotonga, 13th November, 1902. I have the honour to forward herewith an Act passed by the Island Conncil of Rarotonga with the view of placing the sale of intoxicating liquor on a better footing. At the present moment we are acting under an old law, by which every foreigner and Native is entitled to three bottles of spirits per week, provided—in the law of the Natives—that the Ariki will sign a permit; and it is only due to the fact that the Arikis will not sign permits that the Natives do not get liquor direct from the Government bond. Our system is, however, bad in the extreme, for many Chinamen and others sell their liquor clandestinely to the Natives, and it would require 'an efficient and expensive police service to prevent snch sales. The primary object of the Ordinance is to establish an hotel at which persons visiting the island can be accommodated. At present we have only a second-class Chinese boarding-house. The Ordinance also forbids the sale of spirits to Natives, and leaves it in the hands of the Island Council to say whether a limited quantity of claret or beer shall be issued to such Natives as may deserve it. I would point out that an hotel would greatly assist the police of the islands, since there would be no possible means of obtaining spirits except through the hotel, and the owner thereof would hardly be likely to aid sly-grog sellers. I have, &c, W. B. Gudgeon, The Hon. C. H. Mills, New Zealand. Resident Commissioner.

Enclosure. Rarotonga Island Council.—Local Ordinance No. 1. Whereas for many years past the laws relating to the sale of intoxicating liquor in the Island of Rarotonga have been in doubt and unsatisfactory : And whereas, in spite of restriction to the contrary, intoxicating liquor has continued to be sold to and drunk by many of the Natives of Rarotonga, to the detriment of the moral and physical welfare of the said Natives : And whereas there has been up to the present want of a properly conducted house for the accommodation of travellers and tourists to the said Island and other people : And whereas it is desirable that the importation to and sale of intoxicating liquor in the said Island should be further regulated, and be under Government supervision, and that there should be in the said Island a properly conducted house for the accommodation of travellers, tourists, and others : Be it therefore enacted by the Island Council of Rarotonga as follows : — 1. The Short Title of this Ordinance is "The Importation and Sale of Intoxicating Liquor Ordinance, 1902." 2. Prom and after the date on which this Ordinance shall come into operation no person shall, except as hereinafter provided, import into or sell in the Island of Rarotonga any beer, wine, spirits, or other intoxicating liquor. Any person infringing the provisions of this section shall be liable on conviction to a penalty not exceeding one hundred pounds. 3. Any person who may have or who may erect on a site in Avarua, in the said Island of Rarotonga, to be approved of by the Resident Commissioner and the Island Council of Rarotonga, a house or building containing fit and proper accommodation for the board and lodging of not less than eight persons, exclusive of the accommodation required for such person first mentioned or his manager, and his family and servants, may apply to the Resident Commissioner and the said Island Council for a license to import into and sell in the Island of Rarotonga wine, beer, spirits, and other intoxicating liquor. 4. The Resident Commissioner and the said Island Council, if satisfied with the suitability of ' such applicant and of the said house and building, may grant and license to such applicant, subject to such conditions in addition to those imposed by the Ordinance as the Resident Commissioner and the said Island Council may think fit. 5. Such license may be for a period not exceeding ten years, and there shall be paid into the public revenue of the Cook Islands an annual fee of twenty-five pounds for such license. 6. For a period of ten years from the coming into operation of this Ordinance there shall not be granted more than one such license. 7. The grant of such license shall imply the following conditions binding the licensee : — (1.) That all wine, beer, and spirituous liquor for sale by the licensee shall be of good quality, and shall be sold at a reasonable price.

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