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would be only the cost of the manager's salarj - , say, £150 per annum, and food for the prisoners, which might amount to £100, for 1 propose that Takutea shall be the penal settlement of the Group. In addition to the £300 above mentioned, buildings to the value of £400 would be required, but not at once, for after the island was planted I would not occupy it permanently until the young trees required cleaning or attention. W. E. Gudgeon, Resident Commissioner.

No. 10. Sir, — Rarotonga, Cook Islands, 16th April, 1903. We, the undersigned residents in " Greater New Zealand," have the honour to bring under your notice the fact that we lire denied the advantages reaped by our fellow-colonists in New Zealand proper, inasmuch as the benefits accruing to them from the protective policy of the colony are not applied to this portion of it. Our natural products have to compete in our only market (New Zealand) with cheap coffee from the Central American States, and tropical fruits and produce from other places having advantages over us in the matter of distances and freights. This has iin intimate bearing upon the immediate and future prosperity of these Islands, and we request that you will, during the impending visit of the Minister of Customs, represent to him the pressing necessity of extending the protective policy of the Government to the produce of these Islands. As you are aware, the area of land under cultivation both by Europeans and Maoris is being largely increased in the expectation of an extended and profitable market, and, given an opportunity, the Islands can produce the whole of the tropical fruits, coffee, copra, and limejuice New Zealand is capable of consuming for many years. We would suggest that you approach the Minister with a view to having duties imposed upon the following articles, when imported from places other than the islands recently annexed, viz. : Oranges, limes, pineapples, bananas (green or dried); limejuice, bottled, crude in casks, or concentrated ; coffee, ground or raw, in husk or cleaned, coffee-essence : copra, cocoanuts. We recognise the question of protection as being one of such vital importance to these Islands, that we feel we should be failing in our duty did we not attempt to strengthen your hands by approaching you in this manner, knowing, as we do, that you Lave the welfare of the Islands at heart. We have, ice., Makea, The Resident Commissioner, Rarotonga, Cook Islands. [and 42 others!].

No. 8,

The Hon. the Commissioner of Customs. This is a petition that should have been addressed to you, and sent through me only. May I ask that you will accept it in that sense? W. E. Gudgeon, Resident Commissioner. 23/4/1903.

No. 11. Sir,— Niue, 6th December, 1902. I have the honour to forward to you under separate cover, for transmission to His Excellency the Governor, a petition against the importation of spirituous liquor into Niue, which was handed to me by the Patuiki on the loth instant. It has been signed by the inhabitants of ten villages, and is fairly representative of the people of Niue. Although I am opposed to the liquor traffic, and think the island would be better without it altogether, I am bound to say that the objections urged are rather sentimental and not borne out by facts, as far as my experience goes. A considerable quantity of liquor has been on the island since the 10th September last, which I have taken charge of and issued in small quantities to Europeans. No case has come to my knowledge of any Native obtaining any of this liquor from the Europeans. The rights of any community of white British subjects, however small, must be respected, and it appears to me that it would be arbitrary to deprive them of their right to consume alcoholicliquor in moderation because the Native population, who are debarred from procuring it, wish that course to be adopted. I have no doubt the whole liquor question will be brought before His Excellency when he visits Niue next year. I have, &c, C. F. Maxwell, The Resident Commissioner, Rarotonga. Government Agent, Niue.

[Minute on foregoing.] The Hon. the Minister. I have the honour to submit this petition for your consideration. I think that the only true policy is that spirits should be absolutely forbidden to all Natives, but that the rights of Europeans should not be interfered with where they have for years enjoyed the privilege of buying spirits, and have not abused that privilege. W. E. Gudgeon. 30/4/03.