A.—3

22

Our only regular trader is one of the Union Company's boats, which calls at Earotonga at regular intervals of twenty-eight days en route for Tahiti and other Society Islands. This steamer also calls at the other islands of the Cook Group whenever there is sufficient cargo to warrant the detention, and in this manner collects the fruit or other tropical produce for export to New Zealand. At the Island of Aitutaki there is a narrow passage through the reef suitable for whaleboats only ; but at Mangaia, Mauke, Mitiaro, Atiu, Takutea, and Manuae all approach to and from the shore can only be made over the barrier reef, a somewhat hazardous proceeding were it not for the great skill and local knowledge of the Maori boatmen. At Earotonga alone among the islands of the Cook Group are three good boat harbours situated close to the anchorage, in which steamers of 600 tons have moored safely. In this instance the natural facilities offered for commerce have been materially increased by the wharf and sheds erected by the Union Company, and by their very fine service of boats (cargo), which same could at any moment be supplemented by Maori whale-boats and numerous labourers, who would, if required, respond instantly to the call of the three Arikis (Makea, Tinomana, and Pa). Under these circumstances, I am of opinion that Earotonga would prove to be a very suitable coal-ing-station should the necessity arise. Probably 500 tons could be placed on board a vessel in a day, and if two small flat-bottomed scows were provided 1,000 tons might be easily managed. Exports. Table 11. sets forth in detail the exports for 1898 from the Cook Islands, and discriminates between the produce of the Cook Islands and that received from Penrhyn and other small islands for distribution from the central Port of Earotonga. The actual value of the products in question for bhe past seven years has been as follows : — Cook Islands. Penrhyn, &o. T., v , Year. Value. Value. Total Value. £ £ £ 1892 15,394 4,943 20,337 1893 ... ... ... ... ... 18,763 905 19,668 1984 ... ... ... ... ... 18,937 1,728 20,665 1895 ... ... ... ... ... 19,084 1,054 20,138 1896 ... ... ... ... ... 15,486 1,333 16,819 1897 21,751 2,381 24,132 1898 11,209 1,408 12,617 It will be noticed that the exports of 1898 show a startling decrease as compared with previous years, and this may no doubt be accounted for by the partial failure of the coffee crop and the ravages of the black aphis among the oranges. Imports. Table 111. sets forth the imports into the Cook Islands from New Zealand and from Tahiti; Table III.(a) the imports into the Cook Islands which have been re-exported to other places; and Table III.(b) the produce of other islands imported into the Cook Group and exported beyond the Federation. The following is a summary of Table 111. : — Imports from Imports from m , , Year. New Zealand. Tahiti. a £ £ £ 1892 ... ... ... ... 10,998 5,251 16,249 1893 ... 10,200 9,084 19,284 1894 13,152 9,283 22,435 1895 ... ... ... ... 16,861 6,408 23,269 1896 ... ... ... ... 17,157 5,911 23,068 1897 ... ... ... ... 22,455 4,406 26,861 1898 ... ... 15,332 2,323 18,155 106,155 42,686 149,271 The Federal Revenue. The Federal revenue is given in Table IV. for the year ending the 30th June, 1898. The following is a summary of the receipts and expenditure for the past seven years : — ~ Revenue. Expenditure. Year - £ s. d. I s. d. 1892-93 ... ... ... 825 9 4 933 19 8 1893-94 ... ... ... 1,246 7 1 860 17 4 1894-95 1,287 1 4 1,376 8 9 1895-96 ... ... ... 1,428 17 8 1,441 0 8 1896-97 ... ... ... 1,230 2 9 1,654 0 3 1897-98 ... ... ... 1,379 10 0 1,439 9 5 7,397 8 2 7,705 16 1 The estimated revenue for the year 1898-99 is £2,368, the import duty having been raised from 6 to 10 per cent, in order to meet the expenses incidental to the establishment of a High Court, and of an efficient Customs and Postal Department. The estimated expenditure for the same year is £1,630, a sum not greatly in excess of the expenditure of the year 1897-98. My residence at Earotonga has been of so recent a date that I cannot speak with any authority on the trade prospects of the group. The chief articles of export are undoubtedly oranges and coffee. As to the former, the prospects are not altogether encouraging; the black aphis has done much harm, but, thanks to the heavy rain of the last two months, there is a prospect of a moderate late crop.