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a portion of the produce is always damaged by salt water. I have, therefore, the honour to request that the promise of the Premier, so far as Mangaia and Atiu are concerned, may be carried out. From information that I have received I am of opinion that a good ship-channel could be made at Aitutaki into the deep part of the lagoon, through the northern reef opposite to the village of Vaipae, and I propose to test the truth of this information shortly by a thorough survey. W. E. Gudgeon, Resident Commissioner.

. No. 7. Rarotonga, 2nd April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. A Normal School for the Islands. The only State subsidy given by the Islands Administration in support of education is the £125 voted annually in aid of the Tereora Boarding-school, and I submit that it is not advisable that further assistance should be granted to denominational schools, though the .£125 must be continued. The London Mission Society has done much in aid of education, and deserves the support of the State —in fact, I am of opinion that in the present state of the Maori mind no other school would be supported. The Maori does not want education, and it is only his respect for the Church that he has known for eighty years that induces him to send his children to be taught. For these reasons it would be a mistake to establish a large number of Government schools, for the several missions give instruction in those branches of study that are really necessary to a primitive population, and more than that the Cook-Islanders do not desire. The Government of New Zealand could, however, render valuable assistance by the establishment of a normal school at which young Natives of these Islands could be taught to teach others. The old Parliament House would be available as a schoolhouse, and all that would be required is a teacher's residence. W. E. Gudgeon, Resident Commissioner.

No. 8. Rarotonga, 4th April, 1903. Memo, for the Hon. C. H. Mills, Minister for the Islands. Protection for the Fruit of these Islands. That a certain amount of protection should be afforded to the oranges of these Islands as against those from the French islands will be obvious by the light of late events. On the 11th March the s.s. " Ovalau " arrived from Tahiti bringing no less than 480 tons of oranges for the New Zealand market. We also shipped 200 tons of the same fruit, with the result that every shipper will lose money by the transaction, since the market will be overstocked. It may well be asked why the fruit-shippers sent oranges to New Zealand under such circumstances, and whether do not deserve to lose their money for such reckless trading. But I may point out for your information that, this being the last port of call, we are absolutely at the mercy of the French shippers. We have no means of ascertaining what amount of fruit they intend to ship by any boat, and as the steamer will only wait here for a few hours all our fruit must be picked and packed before the steamer comes into port; in fact, most of it has been placed in the wharf stores in charge of the agent of the company. That it would in such cases be cheaper to throw the oranges into the sea and suffer the first loss is true, but most of the shippers are poor men who cannot afford losses, and hope against hope to clear expenses. In addition to the loss we shall suffer in the fruit, 100 tons of copra which had been here some time awaiting shipment, had to be left behind, to the great loss of the owners. This will probably not happen again, for the agent of the company informs me that it is intended to run a superior class of boats in this trade. It is time that this was done, for the development of the banana trade in the last two years shows that we shall shortty fill a boat like the " Ovalau " with that fruit alone. In April the " Taviuni " brought 500 tons of fruit from Huahine and Raiatea, which fruit was bought for the absurd price of 3s. a thousand oranges as against our Bs. 6d. for the same number. Last steamer brought almost the same amount of fruit, which means that our fruit is absolutely valueless for the month. WE. Gudgeon, Resident Commissioner.

No. 9. Rarotonga, 4th April, 1903. The Hon. C. H. Mills, Minister for the Islands. The Island of Takutea. This very valuable island having been presented to His Majesty by Ngamaru Ariki, I propose that it shall shortly be planted with the cocoa-palm. So far as I can judge the island has an area of perhaps 300 acres, and properly planted would yield 200 tons of copra per annum, equal to £2,000. At the present time not more than 10 tons of copra could be made, for there are very few trees growing, but the island is well worth planting. The island would, I estimate, cost £300 per annum for the first three years, after which there