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After the meeting closed the native authorities had a long meeting, when the new situation and turn of affairs were fully discussed, and almost unanimously they agreed that matters were getting into a mixed-up position, and generally great dissatisfaction was expressed at the rush of business, and doubts were expressed as to the wisdom of the haste in dealing with such important measures as the liquor-law, &c. On Christmas night a dinner was given by the pupils attending the English school here to their teacher, Mr. Ellis. There was a large attendance, and a most sumptuous repast of turkeys, fowls, pork, &c, was provided. After the good things had been done ample justice to, games, &c, were indulged in and kept up until a late hour. Altogether a most enjoyable evening was spent, and it was pleasing to notice the very cordial feeling that existed between teacher and scholar. At a meeting of the Queens and chiefs, held at the close of the Council meeting on the 24th instant, among other matters spoken of was that of the English school, and expressions of pleasure were passed at the good work being done by Mr. Ellis, and the satisfaction he was giving. Queen Makea, with great liberality, has made a deed of gift of 4|- acres of land to Her Majesty Queen Victoria, as a site for the future residence of the British Eesident. The site is a very beautiful one—in fact, is about the pick of the island, and the gift is a proof of the sincerity of the natives in their desire to remain under British rule. In addition, the natives are willing to saddle themselves with the expense of the erection of the Eesident's house (to cost some $3,500). It is to be hoped that the New Zealand Government will not lose sight of this liberality on the part of the natives of this group, and will do all in their power to assist them in the many works they are now taking in hand for the better government of the group, and for the protection of foreign interests. The natives are indirectly taxing themselves very highly for school-maintenance, police, aud judges' work, &c, so that they are not very well able to bear any further imposts, and, consequently, it should almost be looked upon as a duty of the New Zealand Government to relieve the people here of a part of their burden rather than add to the taxes. Avarua, 29th December. To-day Queen Mere Pa sent a letter to Mr. Moss, informing him that she was not inclined to carry out the new laws as framed. Naturally, such a letter created no little stir ; but Mr. Moss, I understand, has sent a letter in reply, telling the Queen that she must comply with the work done by the new Council, and not to throw away good work done. It is feared that a general feeling of discontent exists among the natives upon these new laws, they considering that their passing has been too hasty, and that they have not had due consideration given to them. However, time will show that such is the case; but there is no question that upon the liquor-law they are not quite pleased. They would much prefer no liquor being brought on to the island, and have conceded to Mr. Moss's views only on his telling them that it was next to an impossibility to stop its importation, and that it would be a wrong to the Europeans to debar them of their " tot."

Appendix No. 8. Leading Article in New Zealand Herald, Bth January, 1891. We publish to-day a full account of the meetings which Mr. Moss has had with the natives of the Rarotongan group of islands. Mr. Moss's function as British Resident is really to aid the natives in introducing a system of government, under which they shall be trained to do as much as possible for themselves, and to depend as little as possible on outside assistance. These islands afford an opportunity for the making of a most interesting experiment. The natives are intelligent, and they see clearly enough what is for their benefit. Then there is no possibility of colonisation by Europeans. There will be a few planters here and there, a few traders, and perhaps a good many of the nondescript class known as "beachcombers." But the interests of natives and Europeans will never clash as they have done in New Zealand. At the same time, it is quite certain that it is the presence of Europeans that introduces complexity into the legislation of the islands. Mr. Moss is somewhat in the same position as was Mr. Busby at the Bay of Islands in the early days, when the Maoris described him as a " man-of-war without guns." Mr. Moss must study the dispositions and the wants of the natives, and the laws must be made to suit them, and to be consonant with their wishes. In all transactions between natives and Europeans, both parties must act according to the recognised law, but in the making of that law the native interests must be supreme. Earotonga is not a British colony. Any European going there knows that he is going to a foreign country. On one subject we have grave doubts whether Mr. Moss is right. The desire of the natives seems to be that intoxicating liquors should be totally excluded. Mr. Moss is against total exclusion, and has got them to consent to a system of license and regulation. On this point the opinion of the natives ought to be absolutely decisive. If they think that liquor should be totally excluded, then totally excluded it should be; and no account should be taken of the fact that the beachcombers want their " tot." Evidently, the native chiefs are under the impression that no system of regulation will be effectual to keep away from their people the evils of drink. That ought to be enough, and total exclusion ought to be made the law. Any European going to Earotonga must make up his mind to do without alcohol. If that is impossible for him, then he must just stay away. The experiment now being made in these islands will be closely watched all over the world. Mr. Moss is British Eesident, but he is appointed by the Government of New Zealand, and he reports to the Governor of this colony, and no doubt will receive directions from him. The system is new, and, if it is a success, further appointments of the same nature may be made in the Pacific.