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ISLAND COUNCILS. By section 7 of " The Cook and other Islands Government Act, 1901," the New Zealand Parliament has afforded the Natives of these Islands a very large measure of local government; but I would point out that these Island Councils are not satisfactory, except where they are controlled by and under the presidency of a European officer. At Mangaia the Council has done nothing to justify its existence. Until Mr. Large took charge it had assumed exclusive jurisdiction over all civil cases: had made both parties pay costs of Court; and had appropriated to its own use the blackmail so obtained. It had also been most energetic in imposing illegal rahui in order to prevent the sale of coffee, cocoanuts, or copra to Europeans, while the Maori traders were allowed to purchase the same unchecked. It will, therefore, be obvious that the Mangaian Council has reason for its objection to Mr. Large as President of that Council. I would suggest that it be the law that in every instance the Resident Agent shall be, ex officio, the President of the Island Council; that in no instance shall the members exceed nine in number; that the Arikis shall be, ex officio, members of the Council; and that the remaining members shall be elected by the adult Natives of the island for a term not exceeding three years. THE FEDERAL COUNCIL. The Arikis, who have for hundreds of years been the natural leaders of the Maori people, would seem to me to be their proper representatives on the Federal Council, for they alone show the smallest solicitude for the welfare of their people. Those who live under them have never had to think of, or for, others, and are not likely to acquire the habit in this generation. Any attempt to elect members to this Council would result in a fiasco, for neither the Arikis nor leading men would submit to election, but would follow the system they adopted with the old parliament and nominate a lot of dummies to carry out their views, while they remained in the background avoiding responsibility, but pulling the strings as they pleased. For this and other reasons it is well that they should sit in the Federal Council under the presidency of the Resident Commissioner. I can see no reason why there should not be a European member of the Council, who shall be elected by the adult foreign or European residents. There are now not less than eighty nonMaori residents of Rarotonga, and their numbers are certain to increase. LANDS AND SURVEYS. The survey of all lands and the definition of the titles thereto should be made compulsory on the owners or occupiers of such land, since it is the policy of the local Government to leave the payment of all charges connected therewith a charge upon the land, without interest, for an indefinite period. In any future Act passed by the New Zealand Legislature for the government of these islands it would be well to declare that a strip of land, 1 chain in width from high-water mark, is the property of the Government. LOCAL ORDINANCES. The Ordinances passed during the year are few in number, and, with the exception of No. 4, which restricts the sale of spirituous liquors, are of merely local importance. Federal Ordinance No. 11 extends the provisions of section 2 of " The Traders' License Act, 1898," to the islands of Manihiki, Rakahanga, and Pukapuka, in order to place the tradingschooners of Tahiti on the same footing as those of Rarotonga. No. 12 gives the master of any school power to report to the police the truancy of any scholar, and to call upon any member of the Force to bring the parent of the child before the nearest Court. Ordinance No. 3 of the Island Council of Rarotonga defines the rights and obligations of foreign leaseholders in the matter of fencing. Ordinance No. £ defines the law governing the sale of spirituous liquor within the Island of Rarotonga. By the provisions of this last Ordinance the Government only may import intoxicating liquor and sell the same from the public bond, as is now the rule, and the same law makes it an offence to sell to any aboriginal native of Polynesia. Practically this Ordinance amounts to prohibition, forasmuch as all liquor being imported by and in the hands of the Government a prohibition order will be effective. Personally I have not much faith in this very stringent measure, but as there was really no law on the question it was necessary to pass an Act that would be acceptable to the majority. Previous to the arrival of the first British Resident the will of the resident missionary had practically been the law of the island, and prohibition was supposed to be the rule. But it existed in name only, for the people, with one or two exceptions, were opposed to it, and assisted European trader.! to break the law whenever it suited them to do so. As to the desire for prohibition, there would appear to be a very general misconception in New Zealand on this point The 10—A. 3.