A.—3

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the Avarua and the Arorangi tribes returned to their land. Those of Avarua occupied a position which made them the trading centre, and put them in advance of Takitumu in wealth and numbers. This gave to the old jealousy an increased intensity. 4. The family of the present Pa of Takitumu acquired the position through the remarkable promptitude of one of the wives of a Pa of the heathen times, of whose wives two bore children to him on, it is said, the same day. The mother of the younger at once took her child to the priest, who by virtue of his office proclaimed him the future Pa. This caused lasting resentment between that branch of the Ariki family and the branch of " Tupe " descended from the child superseded. The present Queen Pa has no family, is old, and has been weak and ill for some time. The direct representatives of the " Tupe " branch are : Tia (the wife of Makea Daniela, son of Judge Tepou), her brother, and Makea, the Ariki of Avarua. All of these are objectionable to Queen Pa as being connected with Avarua, and she seems to have been bent on preventing their succession. I may add that I have always found her extremely outspoken, violent in temper, and hostile to change of any kind. Her position has exposed her to taunts from the Arikis, and made her sensitive to interference, but she is devoted to her people and very unselfish in her way. She has had frequent quarrels with her own chiefs, which have given me much trouble, but they all respect her, and are at heart attached to her. 5. On the 29th October Queen Pa suddenly called her chiefs and people together, told them she was now old, and could not look properly after their welfare or live much longer, and, to save trouble after her death, wished to name, as her successor, her adopted son Maretu, who is the native missionary at Ngatangiia. Maretu is an intelligent man, speaks English, is unobjectionable in character, and popular with the chiefs and people, but is not connected by birth with any of the Ariki families. The assembled chiefs, not wishing to run counter to Queen Pa in her old age and weakness, did not dissent, but relied upon another opportunity when the vacancy should actually occur. But Pa was quite equal to the occasion; and two days later (the 31st October) they were again summoned to a feast and requested to install Maretu at once. The Tupe branch, the other Arikis, and all not directly connected with Takitumu, were left out in the invitations to the feast in order to secure unanimity. At the last moment the Bey. Mr. Hutchin was invited, and found that he was expected to perform the religious part of the ceremony. He declined, as none of the other Arikis had been invited to attend, whereupon a native missionary was ordered by Queen Pa to act instead. Maretu was then duly installed as Pa of Takitumu, and, as soon as the intelligence was known in the other districts, there was great excitement among the natives of every degree. The extent of this may be imagined from the action taken at Takitumu, in consequence of a foolish rumour that the Arikis and people of the other tribes were coming to seize Maretu and appoint a new Pa. They assembled with knives, guns, and weapons of all kinds, determined not to be dictated to, prepared to defend their Ariki at all risks, and to assert now their right to govern themselves in their own way and as they thought best. 6. I declined to interfere, informing them that the dispute was one to be settled in accordance with Maori law and customs, and that the Arikis and chiefs must see to it apart from the Government ; but that any breach of the peace would be severely punished by whomsoever that breach might be made. I advised them to appoint some of their people most learned in these matters to draw up a report, which they could consider and refer to the Barotonga Council. Meanwhile the Arikis and their chiefs met, and resolved that they would no longer regard Pa as an Ariki, nor recognise Maretu as her successor. 7. The meeting of the Arikis' Council had been previously fixed for the Bth November to settle the business of the current session. The difficulty arose as to who should be summoned to it from Ngatangiia. All declared that if Maretu came as the Pa, or as an Ariki, they would at once leave. To avoid this stoppage of business the notice was sent to the Ariki Kainuku. I enclose the report of this meeting held by the Arikis' Council on the Bth November, and of the report on the mode of electing and installing Arikis drawn up by the best authorities on the subject, and unanimously adopted as correct by the Council. Takitumu was not represented at the meeting, for the reasons stated in the letter published with the enclosed report (taken from the " Torea " newspaper of the 9th November), and signed by Kainuku. There was a strong desire to retaliate by appointing separate Judges for Matavera and Titikaveka, and so detaching them from the jurisdiction of the Judge at Ngatangiia, a strong supporter of Queen Pa; but I declined to agree to anything being done in haste or in their temper at the time. 8. An angry letter was received at the above Council meeting from the chiefs and people of Takitumu, declaring their determination to resist any interference with their right to do as they thought proper within their own district. The letter was addressed to the Chairman of the Government; out the Council, at my suggestion, declined to receive it, as the Government had not been mixed up with the matter. 9. The effect of this refusal was so far good that Takitumu sent her three elected members to the meeting of the elected branch of the Barotonga Council held in the following week (on the 15th), and of which I also enclose a report taken from the Torea. The Council unanimously— including the Takitumu members—admitted that the report as to the election of Arikis, submitted to them by the Arikis' Council, was correct. A great step towards settlement has thus, I hope, been made. At the same time, as the work of the session is now ended, there is no further immediate need for the Arikis to meet. Ido not think there is the least necessity to press for a settlement, and propose to leave time and reflection to do their work. The only point upon which I was apprehensive —namely, possible resistance to payment of the new education rate and the establishment of the school at Ngatangiia, has been settled by the Ngatangiia members recommending the persons to be appointed as collectors of the rate, and the readiness they express to make all requisite arrangements for opening the school on the date appointed or as near to it as possible. 10. This affair has naturally given me considerable anxiety, and it is impossible yet to see