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your Excellency in my next despatch that these troublesome and somewhat dangerously bitter quarrels at Mangaia have been ended. I have treated other troubles at Mangaia connected with Pearse's expulsion and the action taken by myself thereupon in a separate despatch herewith, and need only now say that I have no doubt the fine imposed upon them will be quickly paid. It is, lam assured, less than they expected to have been called upon to pay. Donald and Edenborough's claim was $2,225, and they have been awarded $1,040. Pearse claimed $5,000, and will receive $320. I may here also state that I have investigated Gill's claim of $1,560, and informed him that I did not consider he had any claim at all, as his store was closed by the Mangaians peaceably, and in accord with the custom, of the islands. Gill has therefore withdrawn his claim, and, so far as these old matters are concerned, the troubles of Mangaia are at end. The Eev. W. Lawrence has returned from Aitutaki with his family, and taken formal charge of the mission at Earotonga till Mr. Hutchin's return. lam glad to say that, in his first sermon, he laid down to the native congregation, in a very clear manner, the relative positions of the church and the Government. Aitutaki itself being still under church government to a degree that the Earotonga natives would not tolerate, Mr. Lawrence's views have given them great satisfaction, and, I need scarcely assure your Excellency, equal satisfaction to myself. The liquor law continues satisfactory in its operation, and is accepted now on every side. An attempt was made to establish a club in which each member should have a cupboard to keep his own liquor, but none to be sold on the premises. This would have been a direct evasion of the liquor law, and, on my pointing this out, the attempt was abandoned. The club is now in existence, but no intoxicating liquor is kept on the premises. The school building is not yet put up. The natives have all been busy with the Eesidency at Ngatipa, which will soon be ready for roofing. They say that they will then see to the schoolhouse, which they promise me shall be put up before the end of this month. As the building is to be temporary only it will not take many days when they once begin, but they asked strongly not to be disturbed at the one building, or it would be difficult to get the people together again for some time. I have been unable to obtain any reliable statistics as to the amount of fines imposed by the several local Courts. These fines are divided among the police and others as their pay for the work done. It will be very necessary to alter this system, but, as it has prevailed for the last sixty years, a year or two longer cannot hurt. The difficulty in paying regular salaries is that in that case the fines would probably fall off materially, and no local revenue be available to pay such salaries. This peculiar system is so closely interwoven with the habits and customs of the people that no sudden change would be permanent, and the subject will have to be approached gradually. The import duty has begun to come in. About $800 have been collected towards the $4,000 which I have estimated for the year ending 30th June, 1892. The imports are not steady, and the amount collected this month cannot be regarded as anything like the average to be expected; but I think it probable that the $4,000 may be exceeded. The coffee crop is very fine, and the hills blaze with loaded orange trees, for the fruit of which there is no sufficient market. The population of this island might well be ten thousand instead of two thousand, but they must be small proprietors. The land is too limited in quantity and the labour too uncertain for any others. This will become an important question, but there is at present no information available as to the quantity and extent of land that could be settled. lam endeavouring to compile a roll of landowners —who are few—and to estimate the quantity held by each. A regular survey is much needed, but I fear the revenue will not for some time be able to afford the cost. In conclusion, I have to express my regret that these Mangaian troubles will prevent my being able to get to New Zealand in August, as your Excellency wished. It would be impossible to leave till they are satisfactorily settled, in which I trust that your Excellency will concur. I have, &c, Feedbkick J. Moss, British Eesident. His Excellency, the Earl of Onslow, G.C.M.G., Governor of New Zealand, &c.

Enclosure. Minute of Pkoceedings at a Meeting of the Abikis of the Cook Islands (the Government) held at Makea's, Friday, 17th July, 1891, at 10 a.m. Present: Makea, Tinomaua, Pa, Karika, Kainuku, arikis of Earotonga. Ngamaru, Bongo Matane, Parua, arikis of Atiu, Mitiaro, and Mauke. Vaeruarangi Iripa, Tamatoa, Te Ura Kura Hama, Manarangi, arikis of Aitutaki. Prayers by the Eev. W. Lawrence. Te Pou te Eangi was elected as Chairman. The following were considered and duly passed : (1) Eegulatioiis under the Import Duty Acts ; (2) Eegulations for the Shipping-master's Office; (3) Eegulations for the Post Office ; (4) Eegulations to Prevent the Introduction of Disease; (5) Eegulations for Public Schools. Estimates of revenue and expenditure from 30th June, 1891, to 30th June, 1892, was submitted and passed. Appropriation of $2,890 authorised as the expenditure for the year ending 30th June, 1892. The following appointments were made, subject to the approval of Parliament when it next meets: Collector of Eevenue, Postmaster and Shipping-master, J. H. Gamier. Eevenue Officers and Postmasters at the other islands : Atiu, Te Tupuariki; Mauke, Samuela; Mitiaro, Ngania; Aitutaki, Eota; Mangaia, deferred. Auditor, J. Scard; Schoolmistress, Mrs. Eiddell; Assistant Schoolmistress, Miss Nicholas; Clerk to Government and Paymaster, Makea Daniela ; Eegistrar of

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