A.—3

4

they have still owing on the above debts $1,000 against the next raui, which debts this Island Council will endeavour to get paid up before any copra is sold to any one, unless you take some means of stopping this unfair way of trading. The European traders of Manihiki inform me that on this island this state of affairs has been carried on for years, and for that reason no European traders have remained here long to do business with them. Hoping that you will take some means to put a stop to this very unfair way of doing business, I remain, &c, Chas. J. Ward, Agent for Thos. Harries. Colonel W. E. Gudgeon, British Resident, Cook Islands Federation.

No. 5. Sir, — Cook and other Islands Administration, Wellington, 2nd June, 1904. With regard to the question of representation of the Islands in the New Zealand Parliament, and representation of the white residents on the Island Council, to which reference was made in the conference with the Arikis in Rarotonga last year, I have to say that the matter has been laid before Cabinet, and it is not considered advisable to make any change at present in either direction. I have, &c. The Resident Commissioner, Rarotonga. C. H. Mills.

No. 6. Sir, — Rarotonga, Cook Islands, 7th June, 1904. I have the honour to forward herewith a letter from the Rev. J. K. Hutchin, on the subject of education within the Cook and Northern Islands. If we except the Araura and Tereora Schools, it may be freely admitted that the present system of education is not satisfactory, for the so-called teachers of the L.M.S. in the outlying islands are not themselves educated. At the same time I hesitate to make any definite recommendation in the matter, for if we are to undertake the education of the people of the Group it will mean at least £1,000 per annum, and at least twice that sum if the New Zealand Department of Education has anything to do with it. The schools that we should be required to take over are as follows: Rarotonga, 4 schools; Mangaia, 3; Aitutaki, 3; Mauke, 1; Atiu, 1; Mitiaro, 1; Penrhyn, 2; Rakahanga, 1; Mani- . hiki, 2; Pukapuka, 1. At the present time these twenty schools are taught by the Native clergymen, but if we accept the responsibility for these schools we must supply their places with Native boys, trained at Tereora, to whom weshould have to pay £20 per annum each, in all £400 per annum. In addition to the ordinary schools above mentioned, there are two superior institutions— Araura and Tereora. The first of these is, I believe, supported entirely by the Natives of Aitutaki, and the last by a Government grant of £200 per annum; but the L.M.S. pay the salary of the teacher, Mr. Hall, and also repair and maintain the building. My chief objection is to Tereora, and I cannot recommend that the Government should permanently accept the responsibility of that establishment. Tereora is conducted on the lines of an industrial and self-supporting school, and it may be said that no better system could have been initiated; but the weak point of the school is that it is constructed of perishable materials, on a piece of poor land, and in what I deem to be a very unsuitable position. It therefore results that the repairs already amount to about £60 per annum, which will shortly rise to £100, and the amount of food that can be raised on the land is so small as to be quite insufficient for the school. Contributions from the parents cannot be depended on in times of scarcity, and therefore the institution may at any time break down by reason of its own weight. Such a breakdown would hardly matter under mission rule, for the children could for the time being be returned to their own homes; but no Government could suffer such a thing to happen, for it would mean loss of prestige, and the children would require to be supported by Government funds. The twenty ordinary schools above mentioned we might take over if you can approve of my suggestion of an adult male poll-tax of not less than ss. per head. If the boarding-school is to be continued, then a suitable piece of land of not less than 20 acres should be secured, and a concrete building erected, within reasonable distance of Avarua, at a cost of perhaps not less than £2,000. Personally, lam of opinion that a boarding-school is necessary, in order to train the most intelligent boys as teachers for the outlying districts. With reference to the remark made by Mr. Hutchin in his letter, that " under certain conditions " the society are prepared to hand over the outlying schoolhouses to the Government, I submit that the moment the L.M.S. divests itself of its educational responsibilities the schoolhouses which have been built by the Natives as schools at their own cost will properly revert to the Government, under the machinery provided by the Order in Council creating the Land Titles Court, and without any conditions. _ That we shall sooner or later have to take up the question of education in these Islands is certain, but as a preliminary measure we must provide funds and a suitable site and building for our'chief institution, so that I can relieve the master of his chief anxiety—viz., the production