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No. 160. Cook and other Islands Administration, Wellington, Sui, 21st March, 1904. 1 have to acknowledge the receipt of your letter of the 3rd February with reference to * the purchase of the "Countess of Ranfurly " by the Islands, and the question of retaining her services or otherwise. You say that the agreement made as to refunding to the New Zealand Government the cost of the schooner is one that must be carried out. If this is so, the question is what is the best way in which to give effect to it ? I can submit no better plan than that contained in the annual-instal-ment tables sent you, and I think that under different management the vessel's upkeep will be materially reduced. I note the prudential considerations that have determined your opinion that the vessel should be disposed of, but, as to No. 1, the question to my mind is, do hurricanes come annually, or only at intervals of some years? If the latter, Ido not think it necessary to retain a sum "equal to a whole year's expenditure. A smaller sum in reserve would, I think, meet the case. Reasons Nos. 2 and 3 are embryo ones at present, and No. 4 will disappear entirely when the schooner arrives in Auckland. Further, you have advised me in a later letter that you think that under different management we should be justified in keeping her for at least another twelve months. Under all the circumstances, therefore, I think it will be best for both the Cook Islands and Niue to adopt the scheme I have suggested, and place the purchase of the schooner on a proper business basis. I have, <fee, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 136.

No. 161. Cook and other Islands Administration, Wellington, Sir,— 22nd March, 1904. Referring to the question of charging duty on Natives' luggage, &c, when they return to the island after being away, you will remember that when the matter was submitted to me by the Natives at Alofi I pointed out that under the New Zealand tariff an exemption of £100 was allowed on a passenger's personal effects. The following is the provision in full: — " Passengers' baggage and effects, including only wearing apparel and other personal effects that have been worn or are in use by persons arriving in the colony; also implements, instruments, and tools of trade, occupation, or employment of such persons; and household or other effects not exceeding .£lOO in value which have been in use for twelve months prior to embarkation by the persons or families bringing them to the colony, and not intended for any other person or persons or for sale (including bicycles which have been in use for twelve months); also cabin-furnishings belonging to such persons." This would appear to cover the cases mentioned by the Natives, and there is probably very little duty, if any, chargeable. It does not exempt them from liability to have their luggage examined, however. It was stated that "they did not wish the articles to be valued separately," but wanted duty charged on the box as a whole. To allow this would mean giving an opportunity to introduce dutiable goods free. 1 shall be glad if you will explain the position to those interested, and write me on the question generally. I have, &c, The Resident Commissioner, Niue. C. H. Mills.

No. 162. Cook and other Islands Administration, Wellington, Sm,~ 22nd March, 1904. In your letter of the 6th October last, with reference to establishing a second service between New Zealand and the Cook Islands, you stated that the matter would have to be considered by the directors of the company, and that I would probably receive a communication from your general manager on the subject. Up to the present, however, no letter has come to hand from your Dunedin office I would like to know the views of your company on this matter. Yours, &c, The Manager, Union Steamship Company (Limited), Wellington. C. H. Mills.

No. 83.

No. 163. Cook and other Islands Administration, Wellington, Sir,— 22nd March, 1904. I return herewith the following Ordinances of the Niue Island Council, which have been assented to by His Excellency the Governor: — No. 1. Niue Island Council Constitution Ordinance, 1902. No. 2. Revenue of Niue Ordinance, 1903. No. 5. Emigration Ordinance, 1903. No. 6 Importation of Spirituous Liquor Ordinance, 1903. No. 7. Niue Island Arms Ordinance, 1903. No. 8. Niue Island Private Debt Ordinance, 1903. No. 9. Niue Island Site for Government Buildings Ordinance, 1903 No. 10. Validation Ordinance, 1903. No. 11. Niue Island Weekly Half-holiday Ordinance, 1903. " The Native Magistrates and Police Ordinance, 1903 " (No. 3) is returned herewith for amendment in accordance with the suggestions of the Attorney-General attached,

No. 81,

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