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tion. I have digressed so far from the Federal Court Bill in order that your Excellency should, as far as possible, be able to appreciate the state of mind of the Arikis and the Parliament which caused the rejection of that Bill. The office of Judge with the Cook Island natives is one highly esteemed :to deprive the natives of this office would require very delicate handling. The municipal movement was certainly not alone the cause of the feeling of distrust. I have no doubt that hostility to Mr. Moss of those who favoured prohibition against regulation of the liquor traffic, of those who favoured Dr. Craig and the Hospital Board, and those who were opposed to the establishment of public schools and the compulsory teaching of English, were potent causes in the rejection of the Federal Court Bill. To those persons, and to those who were subject to their influence, the vice was not in the measure, but the person who promoted it. Herewith are copies of the laws relating to the existing Supreme or Federal Court (marked 6, 9, 23 in red), and of the proposed Bill and its amendments (marked 23 in red), and correspondence between Mr. Moss and Mr. Salmon, as President of the Parliament, relating to the action of the Parliament in regard to the Bill (correspondence marked 26 in red). See also a statement by the Parliament annexed to their headings of complaint. This statement is to show that the Parliament did not intend to do more than take time for deliberation. (2.) Making Laws. —Nothing intelligible was brought forward about this. (3.) Removal of Bank, Post-office, &c. —This has been dealt with earlier in that part of this report which deals with Mr. Kohn's petition. The Parliament does not appear to recognise that, if the Arikis and Parliament had resolved to have the public offices elsewhere, and made the necessary financial provisions, Mr. Moss would probably not have opposed that course. A very small rent was paid to Donald and Edenborough (£l4 a year) for the bond and post-office. To erect a new building would have entailed a large outlay—large for a revenue of a country of about £I,UUO a year in all. Not only a building with the necessary rooms for offices and bond would be required, but also accommodation for and salary for a custodian. It is my opinion that this objection is not a native objection. It is quite erroneous to say that Parliament was ready to provide funds for the acquisition of the new buildings and other expenses which would be entailed by the removal of the post-office and bond (see report of the proceedings in the Torea of the Bth August, 1896, which was put in as an accurate report). It appears from that report that Mr. Moss wrote pointing out that the removal was not, in his opinion, necessary, but if they wished it removed they must provide the funds. The result was the Parliament did not pass the resolution for the removal. (4) and (11). Hospital. —l have already dealt with this. This again is, as I believe, not a native objection. (5.) Not advising the Head of the Government. —I deal with this in reporting on the Arikis , complaints. (6.) Strain on the Bevenue Federal Court, 1894. —I was not able to understand what was meant by this. Certainly nothing was brought forward which affected Mr. Moss, or his actions. (7.) Appointment of Mr. Soard. —l have dealt with this in dealing with Mr. Kohn's petition. This also is not a native objection, but manifestly promoted by others (see copy of petition to Parliament printed in Torea of September, 1897). (8) and (11). Mr. Nicholas was employed by Mr. Moss as interpreter. Mr. Nicholas was the proprietor of the Torea newspaper, but not the literary conductor. He was, as I understand, in trade. I thought him a poor interpreter ; and there was evidence that Mr. Moss had employed him in communicating orally to Parliament and Makea on some important occasions. lam inclined to think that Mr. Nicholas was not a suitable person, and that oral communications should not have been made. (9) and (10). Resignation of Makea Daniela. —Makea Daniela is a son of Judge Te Pou, a late member of Parliament. Daniela is Clerk of the Parliament. Your Excellency may remember that he sent to you a petition in favour of Mr. Moss, and opposing the petitions of Mr. Kohn and the Arikis and Parliament. When the Parliament rejected the Federal Court Bill, and otherwise showed hostility to Mr. Moss, Daniela resigned his position as Clerk of the Parliament. Parliament accepted this resignation, and the Parliament appointed a Mr. Goodwin as Clerk, to act temporarily. Mr. Moss declined to acknowledge Mr. Goodwin as such Clerk, because he was a European, as I understand. Mr. Goodwin is no doubt one of the European opponents of Mr. Moss. He is now chairman of the Hospital Board, and seems to be at present a person specially trusted by Makea Ariki. He is, as I understand, in trade at Barotonga. He has a competent knowledge of both languages, and acted as Makea's interpreter. Whatever may be Mr. Goodwin's feelings towards Mr. Moss, there is not the slightest ground for suggesting that he is otherwise than loyal to the British connection, and, so far as I observed, a respectable member of the community. It is certain that Mr. Moss looks upon Mr. Goodwin and Mr. Salmon as amongst those who have instilled into the mind of Makea and the other natives adverse feelings to him (letter of Mr. Moss to the Parliament herewith of August, 1897, printed in the Torea). (12.) Passing Estimates by Members through Misleading Statements made to them by Mr. Nicholas. —ln the session of the Federal Parliament of 1897, during which the hostile feeling towards Mr. Moss was plainly shown, the question of voting the estimates came up. There is a permanent appropriation of 300 dollars for each district (four in number) and 30 dollars for each member. It was probably thought that if the estimates were not passed there would be no 300 dollars for the districts, and the members would not get their 30 dollars. There seems to have been a practice of getting, through the Clerk of Parliament, an advance made to members of their 30 dollars after the estimates were passed. At any rate, this grievance seems to mean that Mr. Nicholas, professing to be the mouthpiece of Mr. Moss, induced the majority of the members to pass the estimates under a threat that if the estimates were not passed there would be no 30 dollars for the members, and, as I understand, no 300 dollars for their districts. Mr. Nicholas denied that he had made any such threat. Mr. Moss denied that he hadauthorised any such threat to be made. The Parliament