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No. 121. Cook and other Islands Administration, Wellington, »"V- 21st December, 1903. In reply to yours of the 15th November, forwarding a copy of a report from Mr. J. T. Large, Resident Agent at Mangaia, with reference to his reception there, and also copies of your letters to him and to Miringatangi and Daniela, I have read these carefully through, and can quite understand there has been some little unpleasantness caused through the removal of certain officers from the positions they have hitherto occupied, but I think in a very short time all this trouble will pass away. I have received a joint letter from Miringatangi and Daniela, which I fully expected would contain a strong remonstrance against the action taken, but was agreeably surprised, on having it translated, to find that it was quite the reverse. I enclose a copy of it and my reply. If you have not already reappointed Ataa, I think it will be better to make no reinstatements to office for a time if you can manage to do without it, as it may create further unpleasantness if another chief is at once placed in the position from which Miringatangi has been removed. I would like you to give me full particulars as to who constitute the Arikis' Court, and what are its functions, as I think it would be advantageous to gradually bring in our own system of administering justice in the Islands. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 104,

No. 122. Cook and other Islands Administration, Wellington, Sib,— 21st December, 1903. With reference to the " Countess of Ranfurly," concerning which I have your letter of the 19th October, 1 have been looking over some old correspondence on the subject and find a letter written to you by the Premier when in Rarotonga on the Bth June, 1900, in which he set forth what he considered might be done in the direction of procuring and running the vessel. I have also read your reply of the 11th June, addressed to His Excellency the Governor, in which you submit the following proposals: (1) That a schooner be built for the Federal Government not exceeding 150 tons register, and fitted with suitable oil-engines; (2) that the New Zealand Government shall advance the money required for such schooner, and the Government of the Cook Islands should pay at the rate of 5 per cent, per annum on all moneys so advanced; (3) that a sinking fund shall be provided and that the amount reserved annually for such fund shall be decided by the New Zealand Government, the Government of the Cook Islands reserving the right to pay off a greater sum in any one year than that defined by the sinking-fund clause; (4) that this debt shall be a first charge on the revenues of the Cook Islands. In your letter under reply you state that at that time you were in a position to pay off the liability at the rate of £1,000 per annum, but that this is no longer the case. A reference to the published statements of your accounts, however, shows a balance of £1,301 for 1900-1, £1,697 for 1901-2, and £1,856 for 1902-3. These returns show a steady increase in your receipts, and while it is true that your expenditure has increased also, you have still been able to show a growing surplus year by year. It was with the object of making things as easy as possible for the Islands administration that I suggested a scheme of annual payments according to the instalment table sent you; and, with regard to Niue, Mr. Maxwell was of opinion that the island should contribute a subsidy of £100 a year towards the schooner, irrespective of freight, &c. I have been thinking since, however, of dividing the amount into five shares —the Cook Islands Administration taking three and paying, say, £301 11s. 3d., and the Niue Island Administration taking two and paying £201 os. 9d.; making the total instalment of £502 12s. as provided by the 3-per-cent. table for repayment in fifteen years. Please let me know as soon as possible what you think of it. With regard to Customs revenue, I have instructed the Collectors of Customs to keep accounts of what duty is collected on goods snipped from New Zealand to the Islands, and at the end of the year the* accounts will be placed before Cabinet, and I will ask the Government to authorise the amount being credited to the Islands Administrations. With this arrangement effected your financial position would be greatly strengthened, and itistead of selling the schooner I hope you will be able to provide sufficient funds to meet the instalments in accordance with the table. If this can be done the Islands in a few years will own the schooner. My own opinion is that if the schooner were sold it would militate against the growing prosperity of the Islands, and materially retard their progress. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 90.

No. 123. Cook and other Islands Administration, Wellington, g IK _ 21st December, 1903. j n reply to your letter of the 18th ultimo, on the subject of the liquor law in Rarotonga, I°' ' your remarks hardly convey all the information I required. Can the permit for the three bottles be issued any day, or only once a week; and to what extent are these permits made use of ? I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.