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The Central Mills, erected by the Queensland Government, have doubled the output, settled hundreds of farmers, and given employment to thousands of others, and are at present the best asset Queensland has. The Government have built sixteen of these mills, and hold a lien on land and crops for the interest and redemption. These mills cost about £30,000. After the Bill tor a mill has passed the House, and the farmers have 500 acres planted, the Government call for tenders for the mill, having ample time to complete it before cane is ready for harvesting. I am convinced that an experimental mill on the island containing the best agricultural laud would be a success, especially since it has been proved that cane-growing by white labour is both practicable and profitable. Having had a cane-farm myself I can assure you that these mills create more industry and prosperity than our butter-factories. I have, &c, The Premier. J ' A ' BuEKB '

No. 21. g IB . . Government House, Suva, Fiji, 6th July, 1904. For some considerable time past 1 have been collecting information for the British Cotton-growing Association of Manchester, as to whether cotton could be successfully grown bywhite labour in Queensland, Australia. I left England for the purpose of making these investigations, as it is the ot the association, owing to shortage of supplies of the raw material, to encourage the growth of cotton in British territory, where the soil and climate are suitable for the cultivation of the plant. The Queensland Government, recognising the importance of establishing the cotton industry, appointed a Commission to assist me in making full inquiries, and we traversed the State, and obtained a good deal of information on this subject. Our. investigations clearly demonstrated that cotton could be successfully grown by white labour if cultivated in small and easily worked areas, but that the cultivation of large plantations was impossible in the absence of cheap coloured labour. I therefore recommended to the association that some encouragement should be given to -rrowers in order that the industry might be put upon a sound business footing. By the last mail 1 received a communication, dated the 21st xlpril, from the British Cottongrowing Association to the effect that ginning plant and presses would be sent out to Queensland and that a merchant or business firm would be appointed in Queensland for a reasonable remuneration to undertake the work on behalf of the association. The association will gin the cotton and advance 3d. per pound to the grower when shipped, and sell the cotton at the very best possible advantage on the Liverpool or Manchester market, and hand the net proceeds to the planter This arrangement will be the means of bringing the Queensland cotton-grower and the Liverpool market into direct business relationship, to the great advantage of the former. Hitherto the complaint has been that there has been no market available to the producer; now he will be able to sell his product and receive the Liverpool price of the day. The Fiji Government forwarded an invitation to me to visit the Fiji Islands for the purpose of making similar investigations here, and, at the request of His Excellency Sir Henry Jackson Governor of Fiji, I consented to do so. Fiji is well adapted for growing cotton of the best quality, and, if the labour difficulties are overcome, it ought to become a good field for cottonI am at present engaged touring the islands, and it has occurred to me that the Cook Islands, which are under the legislative control of New Zealand, might be visited. It has been suggested that these Islands are also adapted for cotton-growing. If that is so, I would be prepared to visit New Zealand for the purpose of visiting the Group, with a view of ascertaining what the prospects are there for cotton-cultivation. If your Government consider the matter favourably I would be pleased to proceed to your colony for that purpose. I would not require any fee or remuneration for my services except the sum of £75 sterling to cover my expenses for a term of two months. I would pay out of these expenses my passage to New Zealand and return to Sydney. Your Government to provide boating facilities from New Zealand to the Islands. The Fiji Government has paid me £75 for a similar engagement here, and I shall only be too pleased to accept a similar engagement from your Government. If this meets with your approval, please cable to me, care of His Excellency the Governor, „ xr- •: I have, &c, buya ' John Bottomley. The Right Hon. R. J. Seddon, M.P., Prime Minister of New Zealand.

No. 22. g IB _ Cook and other Islands Administration, A¥ellington, 7th July, 1904. I beg to return herewith Ordinance No. 4 of the Rarotonga Island Council (an Ordinance to regulate the Sale of Spirituous Liquor within the Island of Rarotonga), duly assented to by His Excellency the Governor. ■ ' ' \_' ],■ I shall be glad to receive a report from you later on as to how this measure works, with any suggestions you may have to make as the result of your experience of it, so that when the accom-modation-house is completed and ready for opening we may be able to make a good start on definite and approved lines. Mlns The Resident Commissioner, Rarotonga. a. mills.

See A.-3 1904, No. 143.