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ago it was found necessary to close the lagoon, as the shell-beds had been fished almost to tiie point of exhaustion. The Natives of this island have some reputation for their skill in tne manufacture of hats, for which there is a good demand in Auckland, and some really excellent specimens of their workmanship were seen during our visit. Walking-sticks, paddles, &c, inlaid with pearl-shell, are also manufactured. The export of copra from Manihiki last year amounted to 135 tons, and as the Natives are beginning to see the wisdom of thinning out the superabundant growth of their palms the production of this item should materially increase. The Native teachers of the London Missionary Society look after the education of the children of the island. The total population is approximately five hundred. Our reception by the Natives here was particularly cordial, and we were struck by the general appearance of the village itself, the narrow but well-formed street, with its covering of coral sand, and its low wall on either side fronting a regular row of houses, giving to the place quite a neat and orderly appearance. The Resident Agent in this village is Mr. George Ellis, a man of extensive knowledge of the islands and of considerable influence among the Natives. At his suggestion the Minister decided to visit the Village of Tauhonu on the opposite side of the lagoon; consequently the time at our disposal in Tukao was very limited. The Natives were called together in the meeting-house, and the Hon. Mr. Mills briefly addressed the gathering, explaining the purpose of our visit to the islands and stating that he would be glad to hear anything they might have to say. Te Pα, a member of the Native Council, said, —I am sorry you came so suddenly, or we would have had a more fitting reception for you. We did not know when you were going to arrive. We did not expect you so soon. We should like to gather the people and give you a w.irm welcome, but as you say you must see the other village there is not time. I think you should stop here to-day. The Natives wish to make you some presents in honour of your arrival. Hon. Mr. Mills (to Mr. Ellis) : Kindly tell them not to put themselves to any trouble. Jone, the Native missionary, then said, —Salutations. I send God's best wishes on board your ship with you We are all pleased to meet you. We have heard long about you, but now we see you ourselves. We had been told about your visit, and had prepared dances and enjoyments for you, but you must be gone too soon. The meeting having dispersed, the members went on board again, and the " Mapourika" steamed round to the Village of Tauhonu, the Minister making the trip across the lagoon with Mr. Ellis in his cutter. Tauhonu was reached about 3 o'clock, and we were warmly received by the Eesident Agent, Mr. Henry Williams, and the Natives of the village. The Minister addressed a gathering of the people in the schoolhouse as follows, Mr. Williams interpreting:— Hon. Mr. Mills : Mr. Williams, Mr. Ellis, and Natives of Manihiki, I want to offer you all, on behalf of myself and friends, our greetings on our arrival at Manihiki, and to tell you how pleased we are to be able to come here and see you all, and your pretty island, and also how deeply we regret that we are unable to stay very long. The Premier wished me to be sure and tell you all that he regretted he was unable to come with us and visit the island, but he hoped to be up this way early next year with the Governor. You will see that we have in the party visiting you today a number of gentlemen who hold high positions in New Zealand, and who represent the members of the two Houses of Parliament, and we are making tins trip to your beautiful island to gain all the information we possibly can, learn something of your methods of life, and find out what can be done to improve matters on the island. Wβ have already visited a large number of places, and we have still a good many places to go to before we return to New Zealand, and that is the reason why we are making such hurried visits wherever we go. I can say for myself and for all my party that we are very pleased with the warm and hearty welcome we have received all round, and I want you all to realise that now that these islands have been annexed to our colony you are part and parcel of New Zealand; and you will readily understand that as laws are made by your Council, and passed by the Governor in New Zealand, you must obey them, as we obey the laws in the part of the colony we come from. If you do this you will be doing what is right. Colonel Gudgeon is the Eesident Commissioner, and, as you know, we have Eesident Agents in the different islands. We have here Mr. Ellis and Mr. Williams to represent us. And now that we have seen the islands we shall know something about them, and be better able to understand any recommendations that Colonel Gudgeon may send forward to the Government at any time. In most of the islands we have visited we have been very pleased to find schools of some kind in which the children are being educated. Now that we have visited this island, and seen so many fine children, lam glad to hear you have a school also to provide for the education of the children. And I hope that before very long something like more regular communication will be established between the islands and New Zealand. If there is anything any of you wish to speak about while we are here we shall be glad to hear what you have to say. All my friends are anxious to hear if there are any matters of importance—matters affecting the welfare of the island—that you would like to place before them. We are all very pleased to hear that everything is going on pleasantly in your island, and hope it will continue to be so. I must thank you one and all for the very generous way in which you have met us, and for the gifts you have so kindly brought forward. We will retain the most pleasant recollections of our visit here long after we have left the island. And now, on behalf of the Government, myself, and party, I thank you most heartily for the way in which you have received us. The Minister here presented the Natives with a New Zealand ensign, explaining the significance of its design, and said, —I am sure you will value this flag, because you realise what it means. Wherever the flag is hoisted you know that you have a power behind it that will protect you at all times. I have very much pleasure in handing it to Mr. Williams. Mr. Williams: We are all very pleased that you have come here to meet us. (To the Natives): These are gentlemen of high standing; they are people of the Government. Why do