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No. 124. Sir, — Rarotonga, Cook Islands, 22nd December, 1903. I notice that in the estimates for the year there is an item of £450 for the residence of the Medical Officer, Cook Islands, and have the honour to suggest for your consideration that this building should be fitted and prepared in New Zealand and sent to Mangaia for the use of Mr. Large, who is unable to obtain suitable accommodation. If you consent to this transfer of your building I will place on the estimates of the Cook Islands the sum of .£5OO, and build a good concrete building for the Medical Officer. We have a piece of land at Mangaia on the cliff above the mission-house, but as we must have our officer on the low land near the landing-place, I propose that we should take a piece of land from the mission for a road and landing-place, and build Mr. Large's house thereon. Under any circumstances this reserve must be made on the rocky land near the coast, and I think we cannot do better than build the house of the Government Agent on the spot. I have, &c, W. E. Gudgeon, Resident Commissioner. The Hon. C. H. Mills, Minister for the Islands, Wellington.

No. 125. Cook and other Islands Administration, Wellington, Sik,— 22nd December, 1903. You will be pleased to know that the auditor who was sent to Rarotonga to investigate the Cook Islands accounts, Mr. H. Cornwall, has reported to me that he found the books and accounts well kept and everything correct, with the exception of the Customs duties levied on claret, on which you appear to be charging 2s. per gallon instead of the 6s. provided by the tariff. Will you kindly explain how you came to adopt the lower rate, or, rather, on what grounds a remission of 4s. per gallon is made. I have, &c, The Resident Commissioner, Rarotonga. C. H. Mills.

No. 126. Sir,— Alofi, Niue, 18th January, 1904. I have the honour to submit to you a statement of the Niue revenue for the quarter ended the 31st December, 1903, together with accounts showing the financial position of this island on that date, so far as the information at my disposal enables me to do so. You will observe that the Customs receipts for the quarter total £476 18s. 3d. Almost the whole of the goods arriving here from Auckland during the period were free or duty-paid in New Zealand, excepting spirits and tobacco, otherwise the duties collected would have been much larger. The total receipts, including balance brought forward from last quarter, amount to £1,425 11s. Bd., and the expenditure for the period totals £324 10s., leaving a balance to credit of £1,101 Is. Bd. By the memorandum from the Postmaster-General, which you so kindly sent me, I find that there is a balance in the hands of the postal authorities for Niue postage-stamps sold of £439 4s. lid., excluding the balance of £117 12s. in the Savings-bank. The former account was probably considerably more on the 31st December, and I would suggest that this sum might be paid into the Niue Savings-bank Account, or as much of it as the regulations will permit, and the rest to Bank of New Zealand Niue Island Account. When the drafts transmitted to the bank are collected and placed to credit of this account there should be a balance in current account of £389 10s. 6d., subject, of course, to any small, debits made by the bank for exchange, chequebook, &o. By the summary of the total funds to credit of Niue Government you will gather that the approximate amount totalled £2,229 2s. on the 31st December, probably a little more when interest, &c, is added. There still remains the duty collected in Rarotonga on goods for Niue, to which this island is justly entitled, and which should be refunded to this Administration. With reference to duties collected in Auckland on goods for Niue, it is, of course, for you to direct how the}' should be dealt with. Regarding the item of " Receipts " of £5 2s. 6d. for sale of tobacco, some time ago, having temporarily discontinued the road-work through lack of explosives, I sold two boxes of tobacco, at a fair advance upon cost, to traders who required it. The revenue obtains the duty, and I can replace it later on. Tobacco rapidly deteriorates in this climate, and it is better to have it fresh. When my Post Office cash exceeds the authorised reserve, if from sale of stamps, I transfer the balance to the Niue Revenue Account, as shown in item £30. I think I am justified in saying that the financial position of this island is sound, and, provided we escape a hurricane, the outlook for the present year is hopeful. I have, &c, C. F. Maxwell, Government Agent, Nhu;. The Hon. C, H. Mills, Minister of Trade and Customs, Wellington.