33

A.—3b

Education. Though much remains to be done, this important adjunct of civilisation has been far better attended to than most people think. In this connection, the schools at Barotonga and Aitutaki conducted by the London Missionary Society deserve special mention. In the former young men and women are trained as teachers, and then sent to the islands where they are most needed. By their persistent and self-denying efforts that society—which is non-sectarian, but Protestant —has, as a result of many years of arduous labour, established a fair system of education, and has imparted knowledge that has been a great boon to many thousands of children in the Group. Just as the Natives are proud of their religion and their churches, so they desire further facilities for gaining secular knowledge. A number of Arikis accordingly expressed a desire to have the New Zealand system of free, secular, and compulsory education extended to the islands. Further inquiries should therefore be made as to the advisability of establishing more schools on the different islands, and making education compulsory. English is taught in a few of the schools, and I am strongly of the opinion that it should be taught in them all. Trade and Commerce. On reference to the statement of accounts at the end hereof, showing the revenue and expenditure of the Cook and other islands, it will be seen that substantial, if not rapid, progress has been made during the past five years, and there can be little doubt that as more frequent communication is established with this colony trade will gradually expand and become of mutual benefit to the islands and New Zealand. Our imports of tropical fruits from all places last year represented 560,000 parcels, of which only 57,000 came from our islands. It will thus be seen that there is great room for expansion of trade in that commodity alone. Moreover, under an extensive system of cultivation, and with an increasing consumption of European foods as against the cocoanuts at present largely used by the northern Natives, the islands should in time be able to export nearly 30,000 tons of copra annually. The Cook Islands traders have petitioned the Government to impose a duty on tropical fruit imported from places outside New Zealand territory, and the Natives desire the Government to arrange for agents at Auckland and Wellington to receive their consignments of fruit. These matters deserve serious consideration. Last year the value of our imports from' the Cook and other islands amounted to £32,163, and our exports to them to £22,973. Our imports from and exports to Fiji amounted to £327,972, and £59,690 respectively. A few amounts to which some exception may be taken have been placed on the estimates for expenditure in connection with the islands, but we must bear in mind the fact that the greater portion of the duty on goods sent to Barotonga and Niue is paid in the colony and becomes part of the consolidated revenue. In order that we may ascertain how much revenue is collected in this way, I have instructed the Customs Department to have separate accounts kept at the different ports of the duty-paid goods shipped to the islands. The " Countess of Ranfurly." Since this auxiliary oil-engine schooner started trading with the islands the direct financial return has not been such as to make her self-supporting—it was hardly to be expected that during the initiatory stages of her work the result would be otherwise. She has, however, been of great service to the islands, one of the results of her advent being a material reduction in freight charges. Moreover, the Union Steamship Company now sends its steamer for produce to islands which were formerly not called at without a guarantee being first given. A new time-table for the schooner was recently drawn up, and it is expected that in consequence of this her earnings will greatly improve. I have had an actuarial table prepared, showing instalments of principal and interest on her cost that should be paid annually for fifteen years by the two islands Administrations. I therefore propose to arrange that these payments shall be made, along with the insurance premiums, by the islands Administrations until trie debt in connection with the vessel is liquidated. Landing Facilities. The boat-landings at Mangaia, Atiu, and Niue being almost as Nature formed them, a proper boat-passage should be cut through the reef at each place. When this is done, and proper moorings are laid at each island, shipping will be greatly facilitated. A grant is required to improve the wharf at Aitutaki. Steam Communication. A steamer belonging to the Union Steamship Company of New Zealand leaves Auckland every month for the Cook Islands and Tahiti under contract with the Postal Department, and I am inquiring as to what it would cost to run a suitable mail-steamer once a month from Wellington. If this could be arranged at a reasonable cost we should have a regular fortnightly service with the islands. No better foundation could be laid on which to foster trade with our new possessions, and thus further develop their resources, than to bring them into closer communication with the colony. This would probably result before long in the products of our islands being generally used here in preference to those of Tahiti, Tonga, Fiji, and Queensland. Tourist Traffic. This great revenue-producing source cannot possibly attain even reasonable dimensions in the islands until the vexed question of the establishment of a suitable accommodation-house or hotel at Barotonga, either by the Government or by some trustworthy individual, is definitely settled. Any house so established should be firmly controlled by regulations. The present system of alcoholicliquor control, established under the old islands law, is most unsatisfactory, and is pernicious to the Natives. It should therefore be altered, and supplies to the Natives should be strictly prohibited. 5—A. 3b.