A.—4.

148

flood the British settlements with most undesirable persons ; or they may set up communities with peculiar forms of civilization, in some cases establishing what might almost be kinds of slavery. 14. It is certain, also, if the Pacific Islands are held by foreign Powers, that, in the future, disputes will ariso between the British communities and such foreign Powers, and that the Pacific may become the scone of constant wars, instead of being one vast area of peace and commerce of the most valuable kind, from tho great variety of commodities which the islands can produce. 15. It is difficult to understand why Great Britain should encourage foreign nations to gain a footing in the Pacific, and yet refuse this privilege to her own offspring ; and it is still moro difficult to understand why, in tho case of those islands which are actually British possessions, she should jillow, as she has done,loreign nations to take possession of them, yet refuse to permit her own children to no so. ? » 16. By allowing tho British colonies in these soas to Occtlpy such of the islands in the Pacific as they are willing to undertake the administration and cost of, the Empire yould spread in the most natural and effectual way, at no cost whatever to the Mother-country. British commerce would rapidly extend and be fostered under the most favourable conditions, whilst the inhabitants of any colony that willingly assumed responsibilities of this kind would have their energies developed, and have a field of enterprise and statesmanship opened to them which would do much to form the character of a youthful nation, and to raise up a people which would reflect credit upon the great country from which they have sprung. It is probable that the British race cannot permanently be shut out from a great destiny in the Pacific and Eastern countries f that it must become the ruling power in those par* ef tho world; and that the interest and welfare of the countries I allude to, and of many millions of people in territories lying to the north and west of tho Pacific, are involved in this question. At a time when British statesmen admit that British commerce is declining, and they are proposing to restore it by the doubtful plan of establishing a great commerce with Africa, it is difficult to understand why they should deliberately cast away a lucrative commerce, which would rapidly grow, and which here lies ready to their hand. 17. Experience appears to show that it is impossible for an Empire to neglect the duties it owes to tho races on its frontier, without entailing on itself serious evils, which, penetrating beyond its mere frontier, spread into the population of its outlying possessions. 18. Thus, the habits and disorders which arc allowed to grow in the Pacific Islands call into existence a class of men who, believing that large fortunes may be <■..■■.'.■■ 6 h cm speculative purchases of lands from uncivilized races, engage in this pursuit, some of whom are careless l>y wKat means or arts they acquire a specious title to tracts of land. The proceedings of such persona re-act upon the inhabitants of British territories where there are mixed populations, who are encouraged by the nSpibers who l'!\<;-i,<*o in this pursuit and by the success of some. Hence great embarrassments are often created, and tho most vital and important interests of the entire community are sacrificed to promote the undue acquisition of wealth By a few persons. 19. The coloured-labour traffic, again, calls into existence a lawless set of reckless men, whose acts exercise a pernicious influence, and create a lawless sentiment, more wide-spread than would at first be thought. A bad feeling arises in the minds of many Europeans towards native races, whilst these people, finding themselves despised—perhaps looked down upon with contempt—in their turn conceive a distrust of, perhaps a dislike to, the European race. Prom such a mutual feeling of dislike and distrust, disasters are too likely to arise. 20. A striking instance of this feeling of lawlessness to which I have adverted, appeared in a case recently brought before tho Court at A.uckland, regarding a shocking murder of one British subject by another on the island of Boutaritari, on the 7th October last. Documents appended give details of the transaction; and of the failure, for tho present at least, of any constituted authority to hold tho offender responsible for his offence. 21. I beg to be permitted to add the following further remarks. It appears that Mr. P. Cornwall, at the time he was Acting-Consul, was extensively engaged in a coloured-laboirr traffic, importing such labourers as were specially engaged for him. The Acting-Consul was also agent for a firm at Auckland. 22. I recommend that a stop should be put to such a system, and that no person holding permanently or temporarily the position of Consul or Acting-Consul should bo allowed to be in any way,' directly or indirectly, connected with such a traffic. I think it becomes a great nation rigidly to enforce tho rule I recommend for adoption, even if some additional charge is thereby entailed on it. 23. With regard to Mr. Cornwall being tho agent of an Auckland firm, I think, looking to the distance of Samoa from New Zealand, they might well have thought that the fact of their agent being Acting-Consul was a sufficient guarantee for their being able to place reliance on the propriety of his proceedings. 24. As already stated, no list of labourers was recorded in the Consulate at Samoa. The list given by Mr. Cornwall, the Acting-Consul at Lata, was made out some time after their arrival there, and was imperfect; and Mr. Moors (Mr. Cornwall's manager) had either kept no account of the deaths of tho labourers, or purposely misinformed Mr. Maudslay, the Deputy-Commissioner, on the subject. 25. On this point, I would recommend that stops should be taken forthwith to prevent the possible recurrence of such a state of things in future. 26. I also concur in the judicious suggestion made by Mr. Maudslay that, if possible, some power should bo given, under tho Pacific Islanders Protection Act, to establish regulations for the proper treatment of coloured labourers when employed on the estates of British subjects. Wellington, 3rd February, 1879. G. Gbey.

IX.—Navigator Islands. Native Labourers

No. 3. The Colonial Seceetaey to Messrs. McAethue and Co. Gentlemen, —■ Colonial Secretary's Office, Wellington, 13th June, 1879. I have the honour to forward herewith three copies of a despatch, and enclosures, received by His Excellency the Governor from Her Majesty's Principal Secretary of State for the Colonies, relative to alleged cruelties to Polynesian labourers at the Navigator Islands. This despatch is transmitted for your serious consideration, as it appears that the estate-on which these cruelties have been practised is worked by an agent of your firm. I have, &c. Messrs. W. McArthur and Co., Auckland. G. S. Whitmoee.

No. 4. Messrs. McAethuk and Co. to the Colonial Secbetaby. Deae Sie, — Queen Street, Auckland, 20th June, 1879. I have the honour to acknowledge the letter No. 850, and its enclosures, consisting of a despatch from Sir Michael Hicks Beach relative to outrages in Samoa on the estate of one "C*6rnwall, and perpetrated by Moors, as it1 would appear. As the enclosed copy of 6a letter to His Excellency Sir Hercules Robinson will show you, we have given it our serious consideration about a year since; but that the despatch of Sir Michael Hicks Beach is founded in error in regard to our relations in business towards Mr. Cornwall, the letter of mine will show.