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next the title to every inch of this fertile island will have been defined. Early in July it is tin intention to visit .Mauke and probablj remain there until all of that island is surveyed and has passed the Court. I further hope that during the year 1907-8 1 may l>e able to do much towards the survey of At in. During the peel year the Court has hold sittings on 27 days — viz., 2-1 days at Rarotonga, "2 days at Mangaia, and I day at Aitutaki — and during this period has made 154 original orders on investigation of title, and thirty other orders in connection with the lands. The fees for the yeai bave been ms follows: — • i , Courl Kens. Survey I'Ycs. Total. Island. „ . ~ j .. i I .-. d I s. d. t s. il. Rarotonga ... ... .. 210 10 0 277 10 0 188 0 0 Mangaia ... ... ... .'5 0 0 4 0 0 7 0 0 Aitutaki ... ... ... 5 14 0 ... 5 14 0 Total ... ... £219 4 0 £'281 10 0 £500 14 0 The total amount of fees collected and paid into the Treasury during the year has been £40l 16s. 9d., and the following fees were outstanding on the 31st March: — £ b. (I. Rarotonga ... ... ... ... ... ... 827 1 3 Mauke ... ... ... ... ... ... ... 36 5 0 Atiu ... ... ... ... ... ... ... 5 5 0 Rakahanga ... ... ... ... ... ... 21 3 6 Aitutaki ... ... ... ... ... ... 144 19 0 Mangaia ... .. ... ... .. ... 250 Mitiaro ... ... ... ... . ... 6 5 0 Manihiki ... ... ... ... .. ... 0 15 6 Total ... ... ... ... ... £1,043 19 3 The total value of the fees collected and paid into the Treasury since the inception of the Court has been .£1,237 14s. lid. Lest there should be any misconception as to the extent of the European settlement on the Island of Rarotonga, I submit a nominal roll of the lessees and of the acreage held by each man Acre-. Acres. Wigmore .. .. ..350 Connal.. .. .. ..280 Gatley .. .. .. ..250 Brown.. .. .. ..135 Davis .. .. .. ..126 Large .. .. .. ..33 Engelke.. .. .. • .. 130 Blame .. .. .. „ . 21 MoAlister .. .. .. I-' Shearman .. .. .. 12 Mathews .. .. .. 20 Smith .. .. .. .. 18 Morell 10 Hill] .. .. .. .10 Myers .. .. .. .. 9 Wong Soon .. .. .. 7 Donald and Edcnborough, Maungaroa 10 Thus it will be seen that there are seventeen foreigners interested in the land of Rarotonga to the extent of 1463 acres, of which 500 is mountain-side. The larger estates of 20 acres and upwards have been planted in cocoanuts, and in the first six years each plantation has cost about £1(> per acre. It may fairly be said that these plantations have given remunerative work to from fifty to a hundred Maoris each and every year since the land was leased, and are almost entirely responsible for the present prosperity of the Natives The thoroughness of the methods employed by the lessees has also been an object-lesson of the greatest possible value to the shiftless Polynesians of this island, who are now alive to the fact not only that the European lessees will shortly increase the exports by some £6,000 per annum, but also tliat they themselves might have been in the same position. Fortunately there are still thousands of acres of land open to the .Maori owners on which they can try the experiment of a little work with the absolute certainty of a large return within ten years. Revenue and Expenditure. The departmental estimates for 1907—8, as also the public works for the same year, are attached hereto in Schedules E and F, and amount respectively to £3,902 15s. and £1,648, or a total of 65,550 Ise. By Schedule G it will be seen that the expenditure for 1906-7 was £6,416 6s. 6d., and the revenue, as per Form H, was £5,246 I 4s. 1 Id., involving a loss of £1,169 11s. 7d. drawn from the surplus of last year. Mv estimate of revenue for the year 1907-8 is as follows: — £ i. & Customs ... ... ... ... ... ... 3,300 0 0 Trade licenses ... ... ... ... . . ... 350 0 0 Stamps ... ... ... ... ... ... 200 0 0 High Court fees ... ... ... ... ... ... 140 0 0 Resident Magistrate's fees ... ... ... ... ... 150 0 0 Land Titles Court and Surveys ... ... ... ... 500 0 0 Arikis' Courts ... ... ... ... ... ... 50 0 0 Rents ... ... .:. ... ... . . ... 75 0 0 Miscellaneous ... ... ... ... ... ... 200 0 0 Total ... ... ... ... ...£4,965 0 0