A.—3b

34

The Arikis, the Missionary, and the Eesident Commissioner are all agreed that a proper place for the accommodation of tourists should be established, and if this is done either by the Government or under their supervision, and an efficient fortnightly service established, it should not be long before large passenger traffic takes place between the islands and New Zealand. Suitable residences are also wanted for the medical officer and other officials. Horticulture and Health. As regards the horticulture of the islands and the general health of the Natives, I need not say anything, as a report on the former by Mr. T. W. Kirk, F.L.S., Biologist of the Department of Agriculture, is appended hereto, and Dr. J. M. Mason. M.D., F.C.S., D.P.H., Chief Health Officer of the Department of Public Health, has prepared an interesting report on the subject health and sanitary conditions of the islands. Parliamentary Representation. This question was discussed with some of the traders and Arikis at Earotonga and Niue, but some little time must elapse before anything practical can be arranged. As our social, fiscal, and commercial relations become more closely interwoven, however, the cardinal principle that there should be no taxation without representation will have to be applied to the islands, and legislation passed to meet the case. Future Administration. No comprehensive scheme for the administration of these islands which would be lasting in its effects could be suddenly inaugurated without causing friction among the islanders, for they have always been used to only a primitive system of government under their old laws and customs. Any material changes must therefore be made slowly, while the Natives are becoming educated to see the necessity for them. The Resident Commissioner and the Eesident Agents, with the leading chiefs and Arikis, deserve great commendation for the good work they have done during the past few years, and I feel certain that satisfactory progress will continue to be made. I take this opportunity of thanking the island officials for the valuable assistance they rendered by familiarising me with the requirements of the islands. Conclusion. The Europeans and the Natives vied with each other in their efforts to make our stay among them as interesting and as pleasant as possible, and I desire to place on record the Government's appreciation of their many kindnesses. The thanks of the Government are due to the directors of the Union Steamship Company for generously placing the s.s. " Mapourika " (Commander George Crawshaw) at their disposal, and charging only the net expense of the trip. Seasonable and experienced persons who look carefully into the matter of including South Pacific islands within the boundaries of this colony must recognise the absolute necessity for outdoing so, not with the narrow or prejudiced view of an immediate return, but on the broader and higher ground of Imperial policy. They must also recognise that a great mistake was made in the past in allowing any foreign Power to take possession of any one of those islands, which should all be part of the territory of a Greater New Zealand. Instead of only thousands as at present, there will in years to come be millions of people in this colony who will be the best customers of the islands. The day is not far distant when steam and electricity will so assist vessels in their desperate race against time that Earotonga will be not more than a three-days' journey from this colony, and New Zealand, with the South Sea islands, will oontinue to be among the brightest gemsof the British Empire. Wellington, 31st October, 1903. C. H. Mills. Cook and other Islands (not including Niue) Eeceipts for the Ybab ending 31st Maech, 1903. £ s. d. Balance in hand on 31st March, 1902 ... ... ... 1,697 10 10 Customs duties ... ... ... ... ... ... 2,674 9 5 Traders' licenses ... ... ... ... ... ... 418 9 5 Liquor dues ... ... ... ... ... ... 5 17 11 Sale of stamps ... ... ... ... ... ... 1,132 3 0 Fees and fines— High Court ... ... ... ... ... ... 147 9 1 Arikis' Courts ... ... ... ... 178 15 4 Aitutaki E.M. Court ... ... ... ... ... 123 16 6 Land Titles Court ... ... ... ... ... 16 19 0 Eents ... ... ... ... ... ... .. 116 0 0 Sale of old buildings .. ... ... ... ... 63 0 0 Money-order commission ... ... ... ... ... 0 12 6 Sale of forms ... ... ... ... ... ... 1 15 4 Shipping fees ... ... ... ... ... ... 7 15 0 6,584 13 4 Expenditure for year ending 31st March, 1903, as below ... 4,725 16 11 Surplus on hand, 31st March, 1903 ... .. ...£1,858 16 5