A.—4

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amount Dr. Craig is to provide a suitable nurse, medicine, food, and attendance to all patients at the Hospital as required" (vide Board's report, Ist July, 1897). At the terne time the Board issued new regulations, whereby the charge for patients was made £1 per week instead of 75., and all free treatment abolished, under special order from a member of the Board. 14th September. —A letter was officially published in the Torea newspaper by the Treasurer to the Board, complaining of the inadequate provision made for the payment of the Medical Officer, pointing out that for the five months ending the 31st August he had only received £75 (the Government subsidy), while he had expended £76 19s. Bd. out of his own pocket for " drugs and dressing, food for patients, and servants " alone. 16th September. —A petition was sent to your Excellency for a Eoyal Commission to inquire into various matters. Among them was the inadequacy of the provision made by the British Eesident for the Hospital. The 13th paragraph stated that the subsidy —£180 per annum—was "the only amount obtained for the salaries of doctor and nurse, medicines and food, and all appliances for a hospital, and to give free treatment to a population of some six thousand inhabitants." This petition was signed by five persons, of whom three were Mr. Kohn (then Chairman of the Hospital Board, and still a member), Dr. Craig (the Medical Officer), and his brother. 16th October. —In his published quarterly report to the Board the Medical Officer states that " many cases have been turned away owing to lack of funds," and urges that " strong representations should be made to the Government." From the published reports of the Board for the six months ending on the 30th September it appears that there were treated twenty indoor patients and 264 outdoor patients. The responsibility of signing the warrant for payment of the subsidy has devolved upon me for the time, and on ascertaining the facts above stated I asked the Board to supply me with information as to the number of patients —indoor and outdoor —who had been treated since the 30th June last (from which my responsibility begins), and of the proportions that had been treated without charge and with charge respectively, together with the amounts received for such treatment. The published accounts of the Board do not show that anything has been so received. The Board declined to give me the information, and I declined to sign the warrant for payment of the subsidy until it had been supplied. In forwarding the letter of the Board and this explanation to your Excellency I may add that I purpose submitting it also to the Commissioner, Sir Henry Berkeley, on his arrival. I have, &c, Fbedeeick J. Moss, His Excellency the Earl of Eanfurly, K.C.M.G., British Eesident. Governor of New Zealand, &c.

Enclosure. Sir, — Earotonga, Bth December, 1897. I have the honour to acknowledge the receipt of your letter of yesterday's date. We would respectfully remind you that, on the Ist September, 1897, the Cook Islands Hospital was handed over to the entire management of the Board, and in pursuance thereof we entered into an honourable agreement with an accredited medical man. We fail to see how any subsequent political changes can legally affect our liabilities as a Board, and we cannot admit the justice of making the payment of the guaranteed monthly subsidy contingent on the furnishing by us of certain information which has never hitherto been asked of us under such conditions. Therefore we, as a Board, reiterate the request that you, as British Eesident and as Administrator of the Cook Islands expenditure, do give orders that the monthly subsidy now due be at once paid. In persisting in your present attitude you are only throwing obstacles in the way of our fulfilling our part of the agreement, and putting the community in danger of being again left without the services of a competent and qualified man. All the necessary reports will be duly furnished by the Board at the termination of the financial year. This complies fully with the Government Act under which the Board took office. If the authorisation for the payment of the subsidy be not furnished at the Hospital by noon to-morrow, the 9th instant, we must request you to forward the enclosed copy of this to his Excellency the Governor of New Zealand. I have, &c, F. Goodwin, Chairman of the Cook Islands Hospital Board, F. J. Moss, Esq., British Eesident.

No. 17. Mr. F. J. Moss to His Excellency the GoveenOb. My Lobd, — Cook Islands, British Eesidency, Earotonga, 2nd January, 1898. I have the usual report of the liquor trade of Earotonga. The other islands of the Cook Islands do not allow any to be landed, and the quantity thus smuggled is not landed to any extent. The following are the quantities landed in 1897 (to the 31st December) : — Wines. Beer. Spirits. Value (gallons) £88 £132 £449