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A.—3

No. 10. Mr. F. J. Moss to His Excellency the Goveenoe. My Loed, — Cook Islands, British Residency, Rarotonga, 21st October, 1896. I have the honour to inform your Excellency that a friendly settlement has at last been made between the Aritus of Rarotonga and Muretu and the Mataiapos and people of Takitumu respecting the succession to the late Pa Ariki. I enclose a copy of the resolution of the Arikis' Council, in which the terms of the arrangement are clearly stated. This ends a dispute which has given me considerable anxiety, and threatened to obstruct the working of the Rarotonga Government. The conduct of this dispute throughout and the settlement now made are marked by a moderation of good feeling which does credit to the Aritus and to all concerned. I have, &c, Feedeeick J. Moss, His Excellency the Earl of Glasgow, G.C.M.G., British Resident. Governor of New Zealand, &c.

Enclosure. [Extract from Te Torea, 24th October, 1896.] Rabotonga Council. The Delegates' House met on Tuesday, 20th, and passed the Appropriation Act. The only subject discussed was the future management of the roads, but it was decided to leave the present arrangements undisturbed till next year. Arikis' Council. After the meeting of the House of Delegates the Arikis' Council met and approved, without alteration, of "The Public Schools Act 1885 Amendment, 1896," and "The Appropriation Act, 1896," which was then approved and signed by the British Resident, and so became law. Special Meeting. The Arikis' Council then resolved itself into a special meeting to consider the succession to the late Pa Ariki, of Takitumu. There were present—Makea Ariki (Chief of the Federal Government), Tinomana Ariki (Chief of the Rarotonga Government), and Pa Ariki, of Takitumu. Vaikae, Tamarua, and Rama were also present as representatives of the Mataiapos and people of Takitumu. After a considerable amount of discussion, an arrangement was come to by which Maretu is to be the Pa Ariki for his life, without power of naming his successor. This was agreed to by Maretu and the representatives of Takitumu then present. The following is the text of the resolution adopted and duly recorded : "It having been made known to us by Maoate (Judge) and by Vaikae, Tamarua, and Rama, representing the Mataiapos and people of Takitumu, that they desire to carry out the wishes of the late Pa of Takitumu, by maintaining as her successor her adopted son Maretu, and are quite willing that Maretu shall be Ariki for his own life only, and shall have no power to appoint a successor : "It being also acknowdedged by them that the true succession to the high office of Ariki of Takitumu is of right, and has been from old time, vested in the survivors of the Pa family, but who are willing that Maretu should act as Ariki during his life, but that after him the succession should revert to the Pa family : " Besolved, That we, the Arikis' Council, hereby ratify the above agreement, and declare that Maretu shall act as Pa of Takitumu, but that his successor shall be appointed from the rightful Pa family as heretofore." Dated at Avarua, this 20th day of October, 1896.

No. 11. Mr. F. J. Moss to His Excellency the Goveenoe. My Loed, — Cook Islands, British Residency, Rarotonga, 25th January, 1897. I have the honour to enclose report on the trade of the Cook Islands for the year ending the 31st December, 1896 (Tables L, 11., 111., IV., V. connected with the said report). I have, &c, His Excellency the Earl of Glasgow, G.C.M.G., Feedeeick J. Moss. Governor of New Zealand.

■""-" ' — "■ ~~ • Enclosures. Repoet on the Teade op the Cook Islands fob the Yeab ending 31st Decembee, 1896. Shipping and Navigation. Table I. shows a large increase in the entries during the year, the tonnage inwards of mercantile shipping being 35,145, against 21,940 for the year 1895. This is due to the Union Steam Shipping Company (Limited), of New Zealand, having put on a steamer in competition with the