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fered with by the New Zealand Parliament, and it is questionable whether it would be advisable, even if the Parliament has the requisite knowledge, to interfere in the purely local concerns of Rarotonga. This is a matter not for my consideration, but for the consideration of your Government. If a precedent is laid down that in a purely local matter two, or three, or more dissatisfied citizens have a right to demand a Royal Commission to investigate their grievances, the number of Royal Commissions constituted will be greatly increased. I am strongly of opinion from what I have heard that it will not help good government in Rarotonga to have such investigation; and I might further say that any attempt to create ill feeling between the Resident Commissioner and the Natives must tend to destroy any chance of good government in Rarotonga. In making this statement lam only re-echoing what Sir James Prendergast said in his report of the 24th February, 1898. I quote paragraph 25 of his report : — "It is needless for me to point out that, while on the one hand the circumstances that the legislative and executive powers held by the Natives being exercisable only with the concurrence of the British Resident makes a cordial feeling between the Natives and the British Resident an absolute essential, on the other hand, to encourage Natives to withdraw their confidence and trust in any one who for the time being may be British Resident without adequate grounds must make the form of Government impossible. Foreigners who desire the maintenance of the British connection should undoubtedly realize the danger there is, by petty attacks on the British Resident, of rendering the maintenance of the British connection so difficult as to give rise to the question whether any effort should be made to prolong it. I fear that, even with those whose motives may have been good, sight has been lost of the fact that difference of opinion on questions of policy do not with any community justify personal attacks upon those who are the authors of objectionable measures; still less excusable are such proceedings amongst a partially civilized people." I was told by one white settler that even the appeal to the New Zealand Government by Dr. Dawson, Mr. Reynolds, and Mr. Hosking had a disquieting effect on the Native mind. " What," said they, "is coming next? Is all the power to be taken from the Arikis? " Another matter they seem to have heard is that the Maoris are losing,their land in New Zealand. You are, no doubt, aware that according to Rarotongan law no land can be sold. Land, however, has been leased to Europeans, and some of the Native inhabitants seem to have been informed, perhaps by Maoris from New Zealand, who have visited them, that the Parliament wishes to force the Maoris to sell their lands, and this has given the Rarotongans great concern. If there is to be a local Government in Rarotonga it is clear that complaints by persons dissatisfied with the administration of the local Government should be made to the Local Council. It will not tend towards the promotion of good government in the Cook Group if these Councils are ignored. The Natives have not the capacity of self-government the English people possess. It is only eighty-eight years since the first whites visited the island then discovered by the great missionary martyr John Williams. The self-sacrifice and devotion of the missionaries has had its reward in seeing the people, within what is a brief period in the history of a race, become a peaceful and kindly people, anxious for education and for further development. It was the idea of Mr. Moss that the Natives could be trusted with self-government, and he hoped to see a federation of the whole of the Polynesians with little interference from outsiders in the management of their local concerns. It may be that he was too sanguine as to their ability to conduct self-government efficiently. It is clear, however, that if they are to become a self-regarding people they cannot be deprived of the control of their local concerns. If there is ever to be a higher civilization amongst the Polynesians they must begin to govern themselves: they must look neither to foreign Legislatures nor to foreign politicians for guidance. (2.) Rarotonga is like a Ship at Sea on a Long Voyage. The second general observation I should like to make is that the Island of Rarotonga is small. Its size can best be ascertained from the fact that the road that runs round the island near its circumference is twenty-one miles in length. The population consists of 2,620 Natives and halfcastes living as Natives, and 126 whites and half-castes living as whites. I suppose the number of pure whites —men, women, and children—will not exceed 100. The whites do not all live in one village. Avarua is the largest village, and is the site of the Resident Commissioner's house and of the Government offices. There are several plantations that are held by whites some miles from Avarua, and there are a few whites scattered throughout the island. In a small community like this it is not surprising to find a difference of opinion amongst the inhabitants. The climate also invites misunderstandings. There can be but little social life. There is no newspaper, and though there is communication with the outside world twice a month, people did not seem to me to take an interest either in world or in New Zealand politics. There is no public library, and the climate is not one that invites severe study. It is making no charge