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the extension of the said boundaries so as to include the Cook Group, including the Islands of Barotonga, Mangaia, Atiu, Aitutaki, Mitiaro, Mauke, Hervey (Manuae) ; also the following islands: Palmerston (Avarau) Savage (Niue), Pukapuka (Danger), Eakaanga, Mamhiki, and Penrhyn (Tongareva).

g IB _ Government House, Wellington, 29th September, 1900. I have the honour to inform you that in case of the annexation of any of the Cook Islands, and Savage Island, and declaring therein Her Majesty's sovereignty, &c, I shall in the Proclamation announce that all laws shall continue and the administration proceed as heretofore, pending Her Majesty's Government making other provisions. I have, &c, The Bight Hon. J. Chamberlain, Banfurly. Secretary of State for the Colonies.

g IB H.M.S. " Mildura," Lyttelton, 31st October, 1900. I have the honour to inform you that, in conformity with your instructions, I started from Wellington in H.M.S. " Mildura" (Captain Baynes, 8.N.) on Sunday, 30th September, and proceeded direct to Barotonga, which island we reached on Saturday, 6th October (western time), at 4.30 p.m. The British Besident, Colonel Gudgeon, came on board, and we then arranged the order of procedure. On Monday, Bth October, I landed at 11 o'clock, and addressed the chiefs and inhabitants, who had assembled to the number of about two-thirds of the population. I then left the chiefs to consider the question, and to send their reply to me on board H.M.S. " Mildura." At about 12.30 p m I received a reply that they were unanimously in favour of annexation, at the same time sending to me a formal cession of Barotonga, also of the Islands of Atiu, Mauke, Mitiaro, and Takutea, which exclusively acknowledged Ngamaru as their chief. At 1.30 p.m. I officially landed to perform the ceremony of annexation, Captain Baynes landing a guard of honour of the Boyal Marines of sailors, and a drum and fife band. I then read the Proclamation accepting the cession, and the Proclamation of annexation, including the Hervey Group, Captain Baynes hoisting the Union flao- and the " Mildura" saluting with twenty-one guns, the ceremony concluding with three cheers for Her Majesty the Queen. The leading chiefs then expressed their gratification at the annexation, which had taken place without a single dissentient. I consider Lieut.-Colonel Gudgeon to deserve much praise for the manner in which he has successfully overcome all the difficulties since his appointment. The most troublesome of the Europeans finding there was a firm hand directing affairs, and that offenders could not go unpunished, have now mostly left the island. There is no doubt that he enjoyed the full confidence of Natives and Europeans alike. The Bey Mr Cullen, the London Missionary Society's representative at Mangaia, requested me to grant him a passage from Barotonga. Colonel Gudgeon considered his presence at Mangaia would be useful. I therefore asked Captain Baynes to take him. I also brought Lieut.-Colonel Gudgeon and Mr. Goodwin, the interpreter to the Cook Islands Government. H.M.S. " Mildura " sailed at 6 p.m., reaching Mangaia the following morning, Tuesday, the 9th October, at daybreak. Mangaia is a fair-sized island, with a considerable production for export of copra, bananas, pineapple's, oranges, and other fruits. There is apparently no anchorage, and no landing for ships boats disembarkation being effected first in the ship's boats, which conveyed us close to the reef, thence by transhipment into canoes, the largest holding about eight people. These carried us safely through the surf. I was, on landing, conducted to the residence of " King John the principal Ariki, and there addressed the assembled chiefs and people, informing them of the annexation of Barotonga and other islands, and desiring to learn their wishes. I then lett the chiefs to discuss matters, Colonel Gudgeon remaining with a view of answering any questions they might desire to put. The ownership of the land was the only question they were in doubt about, and on being informed that this was acknowledged they unanimously decided in favour oi annexation, signing the deed of cession. In Mangaia the tenure of land is different from that in Barotonga and other islands, each family being the acknowledged owner of the land it holds, and it is beyond the power of the Ariki to dispossess the owner except for crime. In Barotonga the Ariki asserts the right to the land, and the inferior families therefore only hold it at his pleasure, and, no matter what improvements or planting they may do, they are liable to be turned away without cause or reason. This is very detrimental to the development of property in this island, as the Natives do not care to improve the land, fearing the Ariki alone would reap the reward. In consequence they are content it their labour provides them with a bare subsistence. On receiving the deed of cession I proceeded to the chief Ariki's house, and read the Proclamation accepting the cession and the Proclamation of annexation. The procedure was similar to that at Barotonga, concluding with the singing of the National Anthem. We then returned on board, and proceeded to Aitutaki, which we reached the following day at noon Owing to s.s. " Ovalau " being here loading fruit, I had not so large a gathering of the people as I should have liked, but the chiefs were almost all present. Begardmg this island there seems to have been some confusion. New Zealand has always understood that it was annexed