E.—la.

about the year 1890. The people of Aitutaki have laboured under the same belief. I thought it, however, desirable, as I had no official record, to inquire into the question. No copy of the original Proclamation was obtainable from the chiefs The Bey. Mr. Lawrence showed me a copy of the Proclamation of a protectorate, which was printed among the New Zealand parliamentary papers. He further informed me that the people understood it as a Proclamation of annexation. Under these circumstances, I considered it was unnecessary to obtain the cession from the chiefs, especially as they had by their conduct conclusively proved that they considered themselves part of the British Empire, they having in the past objected to being governed by the Cook Islands Parliament on the strength of their being British. They had also prided themselves on this account as being superior to the other islands of this group. I addressed the people, and informed them of the annexation of the rest of the group. The flag was then formally hoisted by Lieutenant Bideout, 8.N., who was acting as my aide-de-camp in place of Captain Alexander, who was confined to his room from an accident. I then declared the island annexed. The people seemed generally gratified and pleased with the ceremony; there were no dissentients. From Aitutaki we proceeded to Penrhyn (a British possession). This island is intimately connected with Barotonga, the London Mission sending missionaries there, and the doctor to the Cook Islands Government visiting it in the missionary steamer. My Ministers were desirous of obtaining the best information, and I therefore asked Dr. May, 8.N., to furnish me with a special report on the leprosy, and Lieut.-Colonel Gudgeon on trade and affairs generally. I regret to report that both show an unsatisfactory state of affairs, and it is evident that no improvement can take place through Native sources. That a Besident, in any case for a year or two, is needed to initiate reforms and see justice carried out is also evident. The natives are being demoralised by the wholesale importation of liquor, chiefly "absinthe," which, I understand, is brought in by French traders, or vessels flying the French flag. The expense incurred should easily be met after the first year by the revenue obtainable. The same British Besident could undertake the charge of Manihiki, or Humphrey Island, and Bakaanga, also of Suwarrow : there is fairly good communication between these islands by trading schooners, and there is the same need of supervision. These islands are all presumed to be only British protectorates (except Penrhyn). The Colonial Office List, 1899, page 322, states that Humphrey (Manihiki) and Beirson (Bakaanga) were annexed in 1889, but the traders understood it was only a protectorate. I venture to suggest that these islands should be included in any extension of the boundaries or jurisdiction of New Zealand. The Danger Group is also worthy of consideration. I have, however, no information regarding these islands. In the past they have all been little visited, and British authority has been more a name than a reality. Their industries, instead of having been fostered with care, have been deteriorated by traders accepting immature pearl-shell ; and if the present course were allowed to continue all exports would soon cease, and the natives, now accustomed to spirits and strong liquor, would lose all sense of civilisation. From Penrhyn I proceeded to Niue, or Savage Island, touching on the way at Manihiki. On the 19th October H.M.S. " Mildura" arrived at Niue. After an interview with the Bey. Mr. Lawes, the missionary. I wrote to the " King" asking him to meet me on the following morning, 20th October, at 9 a.m , and expressing my desire to address the chiefs at a later hour. The interview was entirely satisfactory, and we adjourned from the mission station to the schoolhouse, where the chiefs were assembled. The " King " then addressed them regarding their views on annexation, stating that he was entirely in its favour, but that he had not signified his assent pending their decision. When the " King " had concluded I addressed them, Mr. Lawes acting as interpreter, the language in this island being different from that of the Cook Islands and Penrhyn, &c. The chiefs, after a short consultation with the members present from their respective villages, one after the other spoke in favour of annexation, each on concluding signing the deed of cession. All were unanimous. They, however, distinctly pointed out their desire that in no case should any control be exercised over them from Tonga, and requesting a British Besident. The flag was then hoisted with the usual ceremony, and the Proclamation read. From Niue we proceeded to Tonga for coal for the return journey. In conclusion, I have the honour to inform you that all documents, proclamations, conversations, &c, were translated into the native tongues, and that the chiefs and natives in every instance thoroughly understood the question, and, understanding, were unanimous in their decision. I have, &c, The Bight Hon. J. Chamberlain, Banfurly. Secretary of State for the Colonies.

QUESTION 2.—CORRESPONDNCE. Write a memorandum and an official covering letter from the following rough notes :— Mem. for Gvr. Pmr psnts compts & desires bring under H.E. notice necessity for complete resurvey of coasts col. Some parts properly srveyd & little requires done bt othr prts never cmpltely srveyd. Charts fm time to tme dfectve & misleading.

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