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are not annexed to New Zealand and are not part of the British Empire. Since the islands—that is, taking them collectively—have joined New Zealand, you are just like a part of the great circle in which we are all combined together, and we are most anxious to do all that we can to benefit the islands, and to bring them into closer communication with ourselves, so that we may have produce coming regularly from your islands, and you in return may receive produce from New Zealand. I may, at any rate, safely say that it will be to the interests of the Government to see that these islands derive every benefit they possibly can, and that you should not have to suffer on account of the produce of other islands in which we have no interest being sent into New Zealand at the same time as yours, thereby lowering the price of your fruit. lam glad to hear and see for myself how well everything is going on in this island, and how satisfied the people are with all that has been done up to the present time. I was very pleased to hear my friend Pa speak as he did about Colonel Gudgeon. I have been getting numerous letters from the Colonel during the past fifteen or eighteen months, and I have read letters sent by him previous to that, and I can assure you that you have a good friend in the Resident Commissioner. He writes what he thinks, and I have been able to gain a good deal of valuable information from his letters. Just before leaving Wellington I conferred with the heads of Departments and asked them if they had any views that they wished disseminated in the islands. The Secretary for Education said he was very sorry to say that he had but little information, but he hoped I would be able to give him a good deal on my return, and then he would consult the Minister and see what he would ask Parliament to do in the best interests of the islands. Now, my friends, when you get a public school, I would like to impress upon you all the great necessity there is for you in your high positions to do all you possibly can to assist in the education of the children. In our language we say that "knowledge is power," and we know that it is so ; and therefore, living as you do in an age of competition, you must have education. You are not so isolated now as formerly. Every year is bringing you into positions of competition such as Pa Ariki spoke of a short time since. Therefore your children as they grow up must be able to take their places in the great battle of life. You may all have what we call great natural abilities, but unless you organize among yourselves, and arrange matters so that you have some system among you and among the young people growing up, you cannot hope for any real progress. For this reason I always do what I can to persuade the parents in my own native colony to see that their children go regularly to school. You will realise that a great deal of what we have occasion to regret at times takes place from want of knowledge, but if children grow up well educated, and their parents show them a good example, we generally find that they are able to occupy satisfactory positions. Will you kindly tell them that it is only as they grow older that they will realise what great benefits they have derived from their teachers ? I can tell you from my own personal knowledge how troublesome it is for the teacher when the children do not attend school regularly. I suppose most parents are like myself; I have children, and I like to see them improving. So please tell your young people if ever they feel discouraged at first they must persevere, as there is always room for one —at the top. lam speaking to you to-day at greater length than I should have done, but it may be my only opportunity, and I realise that I am talking to those in authority, whose responsibility is a great one, and whose example must and will carry considerable weight with others. Notwithstanding all that the Government may do in establishing good laws and regulations, the foundation of everything will still he in your own homes, and if you do not impress upon your people the necessity for guiding the children in their home life the law may mean very little to them. Now, with regard to the hotel. You cannot expect a place like Earotonga, with all its attractions, to become frequented by the class of people who would like to come, unless you have some place for them to stay at. It seems imperative to me that you should have a hotel in this place, but- it must be conducted under very strict regulations, for a certain time at least, because we readily understand that at the present time a great number of your people, especially the young ones, are not sufficiently educated to realise what a dangerous thing it is to take liquor. I have always been strongly opposed to any one taking too much drink; but I recognise that as you are living in a commercial world you must have the ordinary requisites and comforts for people who are travelling through the islands. I would suggest that you erect a good serviceable accommodation-house only, if I thought that would answer the requirements of the case, but lam afraid it would not. No person would come here and expend a large sum of money with the knowledge that he would have only a limited number of visitors for the time being, unless he could have the sale of liquor as well. It is one of those great complex questions which the Government is now considering, because very recently we have had an election in New Zealand, and a great number of my old friends carried what we call " prohibition," thinking it better not to have any publichouses at all in certain districts. So, while I tell you what my own idea is with regard to having a hotel built here, you will understand that the first point the Government has to consider is whether it would be beneficial for the people here or not. There can be very little doubt that a certain quantity of spirits is at present sold and distributed throughout the island, and the question to my mind is whether it is not something more like poison than good liquor. Now, I say to each and all of you, be temperate in all things : that is the cardinal virtue in my opinion. We have already partly discussed the question of representation. You are just in the same position as New Zealand was when my father first came to it. There were the Customs duty and other taxes collected in New Zealand in the early days; but as civilisation increased, naturally taxes increased too. It is one of those questions in which each one must help the other. Therefore, realising this, and knowing the position you are in, I can assure you that the Government recognises that there should never be any taxation without representation of some kind. But this, again, is one of those great questions that still require a lot of consideration ; and the best way to decide what would be merely doing justice to these islands is a matter that will have to be carefully considered, and all the information that we can get must be obtained from the different islands as we move along, so that we may see whether the change can