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A.—3

1 would also }x>int out thai any regulations made as to fees must be frequently altered to accord with the market price of shell, and that tiny such alteration should be made here to prevent the delay which must attend references to New Zealand. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister administering Islands.

Enclosure. Memorandum for the Resident Commissioner. With reference to regulations for the Penrhyn and Manihiki [glands Lagoon Reserves, I may point out that, so far as I am aware, these lagoons have not been proclaimed by the Governor under section 15 of "The Cook and other Islands Government Act, 1901," consequently there are no persons administering the reserves capable of making regulations under section 4 of " The Cook and otEer Islands Government Act Amendment Act, 1904." These reserves have been the subject of notices in accordance with section 3 of the Act of 1904, and such notices have been duly gazetted in jhe Coo/,- isUmdi Gaettte of the 22nd May, 1906. Query as to whether the Governor can make the required regulations under subsection (8) of section. 3 of the Act of 1904. Draft regulations herewith-in accordance with your instructions. Karotonga, 7th August, 1906. E. Blainb.

No. 31. Sin, — • Cook and other Islands Administration, Wellington, 20th September, 1906. I have the honour to acknowledge the receipt of your letter of the Bth August last, forwarding draft regulations for the working of the Penrhyn and Manihiki shell lagoons, together with a memorandum by Mr. Blame. In reply, I have to inform you that the matter is now under reference to the Crown Law Office, for the preparation of Proclamations under section 15 of " The Cook and other Islands Government Act, 1901 " : and that on the issue of these Proclamations you will be appointed to administer these reserves, and can then make regulations under section 4 of the Act of 1904. I will communicate with you again on the subject at a later date. I have, &c, The Resident Commissioner, Rarotonga. James McGowan.

No. 32. Sm, — Cook and other Islands Administration, Wellington, sth October, 1906. Referring to previous correspondence, I have the honour to transmit to you the accompanying copies of Proclamations making certain reserves for public pearl-shell fishing at the Islands of Penrhyn and Manihiki. I see no objection to the proposed regulations forwarded with your letter of the Bth August, and if you will iuake them under section 4 of the Act of 1904, they will be submitted to His Excellency the Governor for his approval. I have, &c, ■ The Resident Co nmissioner, Rarotonga. James McGowan.

Enclosures. Reserve proclaimed foh Public Peahl-shell Fishing at Manihiki. (1.5.) Plunket, Governor. A Proclamation. Whbbbab by " The Cook and other Islands Government Act, 1901 " (hereinafter termed " the said Act "), it is provided that the Governor may from tine to time, by Proclamation, set aside Crown lands within the said Islands (as in the said Act defined) to be reserves for the purpose of naval or military defence, or any other specified public purpose: And whereas it is desirable to establish a reserve for public pearl-shell fishing at the Island of Manihiki upon the terms and conditions hereinafter set forth : ..—*,.»,».. Now, therefore, I, William Lee, Baron Plunket, the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority conferred on me by the said Act and by " The Cook and other Islands Government Act Amendment Act, 1904," and in exercise of every other power and authority in anywise enabling me in this behalf, do hereby proclaim and declare that the Crown lands described in the Schedule hereto are set aside as a reserve for the purpose of public pearl-shell fishing : and do hereby declare that the said reserve shall be held and administered by the Resident Commissioner, subject to -such conditions and regulations as may from time to time'be made or prescribed in respect thereof under section four of " The Cook and other Islands Government Act Amendment Act, 1904," or any amendment thereof.