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A.—4

In explanation, I desire to state that the encouragement lies in the fact that the chiefs have a direct interest in the Sale of liquor to natives, inasmuch as they (the chiefs) sell permits to allcomers. The facilities are that certain individuals openly and illicitly sell liquor to natives and Europeans, charging so much money per drink. No one can go about Earotonga for a week without noticing the disgracefully drunken habits of the natives. It is impossible to walk 500 yards any evening in the week without meeting at least half a dozen natives the worse for liquor, sometimes considerably more. This state of matters cannot be attributed to the milder beverages of native manufacture, which are to be ranked with such an English beverage as cider—wholesome, and, even in excessive quantities, much less injurious than the poison that is constantly sold here to the unsophisticated native as rum. Kindly forward a copy of this letter to the New Zealand Government in your next despatch. I have, &c, F. J. Moss, British Eesident. Geoege Ceaig, M.8., CM. (Edin).

Enclosure No. 2. To the Arikis of Earotonga, of Avarua, of Arorangi, and of Takitumu. I send herewith a letter which Dr. Craig has published in Te Torea of Saturday, the 21st August. I hear that you have been told this letter does not concern you, but that it is my affair and that of Mr. Gamier (the Licensing Officer). Be not deceived. If these statements are true it is the Arikis, the Arikis' Courts, and the police that will be blamed, and the question will bo asked, Of what use are they, and why cumber they the ground (Luke, 13, 7)? My advice to you, therefore, is to ask Dr. Craig quickly where and how he got the information, so that you may see whether all or what part of it is true, and let me know, that I may write to the Governor of New Zealand. Enough. From your friend, Fbedeeick J. Moss, British Eesident.

Db. Cbaig and the Liquob Tbaffic. Sic, — Earotonga, 14th August, 1897. In obedience to a request from the Clerk of the Government that I be asked to furnish an explanation of a clause in my report on the diseases due to alcohol in Earotonga—viz., " that there are special facilities and encouragement given for the liquor traffic among natives " —I have been instructed to give some explanation. When I wrote the report I did not think any explanation would be necessary, as the facts I stated are generally known. The encouragement I refer to lies in the fact that the chiefs have a direct interest in the sale of liquor to the natives. I allude to the open and indiscriminate sale of permits. The facilities are well known, but I suppose I am expected to mention them. Certain individuals openly retail liquor daily to all-comers, charging so much money per drink without any police interference. No one could go about for a week in Earotonga without noticing the disgracefully drunken habits of the natives. It is a rare thing to walk 500 yards any evening in the week without meeting half a dozen drunken natives, sometimes considerably more. As long as these facilities for traffic in imported spirits are allowed to exist it is impossible to attribute any of the blame for the drunken habits of the natives to the much less potent beverages of native manufacture. These are to be ranked with such an English beverage as cider—wholesome, and, even in excessive quantities, doing infinitely less harm than the poison that is retailed to the unsophisticated natives as rum. Kindly forward a copy of this letter in your next despatch to the New Zealand Government. I have, &c, F. J. Moss, Esq., British Eesident. Geoege Cbaig, M.8., CM. (Edin.).

No. 7. His Excellency the Governor to Mr. F. J. Moss. Sir, — Government House, Wellington, 15th September, 1897. I have the honour to acknowledge the receipt of your despatch No. 10/97 (with nine No. 3. enclosures), dated the 9th August, 1897. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga. Eanpurly.

No. 8. His Excellency the Govebnob to Mr. F. J. Moss. Sib, — Government House, Wellington, 15th September, 1897. I have the honour to acknowledge the receipt of your despatch No. 12/97 (with seven No. 5. enclosures), dated the 10th August, 1897. I have, &c, F. J. Moss, Esq., British Eesident, Earotonga, Eanfuely.