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took them away. The consequence is that a large proportion remain permanently in Samoa and Tonga, where they are at home. This is prejudicial to the welfare of Niue. If this suggestion is carried into effect it would be very much to the liking of the Natives, and should effectually prevent too many labourers from being taken. The present rate of pay at Maiden and in Samoa is £2 per month. , . Messrs. Lever's Pacific Plantation Company endeavoured to recruit men here for their islands at £1 10s. per month, but the steamer left on the 28th ultimo with only half a dozen men, and the fact of these men engaging at the lower rate of pay was nearly the cause of a serious disturbance, the police having to escort them to the boats. Blows were struck, and some difficulty was experienced in averting trouble. Trade-unionism, with its concomitants, is becoming known in Niue. We could also limit the number of men that may be taken by any farm, it is always stipulated in labour agreements signed before me that the men shall be returned to their island at the expiration of their contract term, which is not to exceed twelve months. Labour licenses: Messrs. Lever's steamer, the s.s. " Upolu," carried a license to recruit labour, signed by the Governor of New South Wales, but apparently licenses are no longer required. I have, &c, C. F. Maxwell, Hon. C. H. Mills, Minister in Charge, Resident Commissioner, Niue. Cook and other Islands Administration, Wellington.

No. 75. g IR __. Rarotonga, Cook Islands, 4th October, 1904. Referring to your letter No. 214, I have now the honour to forward draft regulations for your approval, in order that the provisions of " The Sale of Spirituous Liquor Restriction Ordinance, 1904," may be facilitated. As, however, the New Zealand Act forwarded cancels section 4of our Ordinance, very few regulations are required. A visitor staying at the accommo-dation-house will now have to get his liquor from the bond, and can use it very much as he pleases. He will be under less supervision than would have been the case had he obtained it from the hotel, for in such case the regulation would have been that all spirits would have been sold by the glass, and only light wines by the bottle. You will notice that I have, in the regulations forwarded, left the amount to be issued to the discretion of the Collector of Customs, and I have done this for the reason that we have many people here whose characters justify their belief that no absurd restrictions will be inflicted on them; but, on the other hand, there are people who must be kept in check, and therefore it is that I wish the Collector to use his discretion. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister administering the Islands, Wellington.

No. 76. g IE _ Niue, 4th October, 1904. I have the honour to report to you that a little difficulty has arisen concerning the Niue Island Council. ~ .- . T , , On the 25th of August ultimo the term of office of the old Council expired, and 1 requested the villagers to elect members to constitute a new Council for the ensuing term of three years. The names of nine (9) members were handed in, comprising representatives of all the villages but Alofi which latter was dilatory in furnishing the names of two members required. Finally a letter was handed to me, purporting to be from all the chiefs of Niue, stating that it had been decided that there should be no Council—in fact, that all Government officials should strike work, but offering no reason for this action. In an interview with Togia, the Patuiki and President of the Council he informed me that the object of the strike was : (1) that the pay of all Government officials, including himself, should be increased; (2) that piecework on the roads should be discontinued, and all labour paid by the day. He also alleged that Mr. S. P Smith had promised that when the finances of the island were in a better position the pay of the officials should be raised (This I very much doubt.) I informed him that the remuneration of Government officials was fixed by Ordinance, and I considered it fully adequate to the services rendered; and furthermore I had no power to increase it. I also pointed out that the members of Council received £3 per annum, and 2s. per day allowance while attending meetings ot the Council, and that as the meetings averaged twice yearly, members received £1 12s. for about three hours work. I have ascertained that the trouble originated in this way: Some Niue men recently returned from Sydney and elsewhere, who have become imbued with the glorious principles of labour unions and strikes, as enunciated by their white friends, the seamen and firemen on the steamers They communicated their views to the elders of this island, who are ignorant and pig-headed, and actuated by avarice as the controlling idea of their minds; hence the result The lack of a Council will not matter much for the present, as, with a few exceptions, the members are of no assistance to the Government-in fact, rather the reverse. There are sufficient Ordinances passed to carry on with. The cessation of work by Magistrates and police may be more serious These officials do not, however, desire to cease work, and it is only the pressure