A.—3a.

3. Letters were sent to the Governor-General of New Zealand and to the Secretary to the Western Pacific High Commission conveying an outline of the scheme and inquiring whether it would be regarded favourably by those Governments. The New Zealand Government replied that they were " prepared to consider favourably the transfer of lepers in the Pacific islands forming part of the New Zealand Dominion to the Government Leper Asylum at Makogai," and stated so far as was known, there were thirty-two lepers in the Cook Islands and none on the Island of Niue. The New Zealand Government also requested that the scheme be extended to include the ten lepers who were then at the Dominion leper colony at Lyttelton. A reply was also received from the Government of Tonga stating that they " would be glad to avail themselves of the immense advantages of such a scheme as outlined." 4. An endeavour was thereupon made to arrive at what would be a fair and reasonable amount to charge the outside Administrations for the cost of maintenance and treatment of their patients at Makogai. The Chief Medical Officer recommended that " until the scheme of exact distribution of cost according to expenditure is worked out " the charge should be fixed at £40 a head for Natives and £70 a head for Europeans and Chinese per annum. The Treasury authorities, after going exhaustively into the figures, estimated the cost to the Fiji Government for the maintenance and treatment of patients from other Administrations at —Europeans, £96 4s. 9d. ; half-castes and Chinese, £72 3s. 6d. ; Natives, £48 2s. 4d. 5. Eventually it was decided that the following alternatives should be offered to the Government of New Zealand :— (a) That the Fiji Government should provide the necessary buildings and make an annual charge of £90 a head for European patients and £70 a head for Chinese and Maori patients ; (b) That the New Zealand Government should provide the buildings and pay £80 per head for European patients and £60 per head for Chinese and Maori patients ; (c) That patients should be received on the Native standard at an annual charge of £40 if the buildings are not provided by the Fiji Government and £45 per head if the buildings are so provided. 6. As regards the New Zealand lepers, the New Zealand Government accepted the first alternative. Subsequently it was decided that Maori patients should be treated and paid for on the same scale as Europeans. 7. As regards the Cook Islands lepers, the New Zealand Government were informed that it would be necessary to provide additional accommodation at an estimated cost of approximately £2,000. An inquiry was made whether, in view of the fact that no funds were available for providing this accommodation, the New Zealand Government would be prepared to make that sum available. The New Zealand Government replied in the affirmative, and the Cook Islands lepers were therefore received on the basis of £40 per head —i.e., the buildings being provided and paid for by the New Zealand Government. The amount paid for this accommodation was £2,110 os. sd. . 8. As regards the Tongan lepers, the Tongan Government paid the sum of £591 os. Bd. for accommodation for ten patients, the annual charge for maintenance and treatment of patients being fixed at £40 a head. Actually thirteen patients have arrived from Tonga. Temporary accommodation has been provided for the additional three, and the Tongan Government have been informed that the question of providing permanent accommodation for them will be considered at a later date. 9. Attached (Enclosure No. 1) is a memorandum by the Chief Medical Officer giving further details in regard to the administration of the Leper Asylum, and setting out the main questions for discussion by the Committee. 10. The following statements are attached : — Enclosure 2. —Capital value of island and buildings, 1926 ; cost per unit, 1926. Enclosure 3.—Cost per unit, 1927. Enclosure 4. —Number of lepers at Makogai on 31st December, 1927. Enclosure s.—Estimated value of buildings, January, 1928. Enclosure 6. —Maintenance expenditure for years 1924 to 1927. Enclosure 7.—Proposed expenditure on maintenance of buildings and new works, 1928. Enclosure B.—Expenditure from loan funds, 1925 to 1927. Enclosure 9.—Proposed further expenditure from loan funds. I. McOwan, Acting Colonial Secretary. ENCLOSURE No. 1. Memorandum by the Chief Medical Officer. The terms on which lepers from outside Fiji are at present received in the Asylum : As regards Tonga, the Gilbert Islands, Samoa and American Samoa, and the Cook Islands, the Government concerned pays the cost of erection of quarters. This cost was estimated at approximately £50 for each non-European and £100 for each European. 2. From the date of admission the Government pays to Fiji for each Native £40 per annum, for each Chinese £60, and for each European (half-castes being regarded as Europeans) £70. 3. As regards New Zealand, the Government of Fiji built the accommodation at their own expense. For new Zealand lepers the charges are £90 per annum in the case of Europeans, half-castes, and Maoris, and £70 in the case of Chinese. i. As regards provision of accommodation and its cost the following must be remembered : — (a) All women live in the female hospital; (b) All men who are in sufficiently good condition live in the villages ; (c) Men who are not in good physical condition live in the male hospital; (d) Men may for a time live in the hospital and then go to a village, or vice versa.

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