A.—3

12

No. 11. Lieut.-Colonel Gudgeon to His Excellency the Governor. My Lord, — Rarotonga, 7th September, 1899. No. 7. I have the honour to acknowledge the receipt of your despatch (No. 298/99) as to your Lordship's recommendation that I should be appointed Judicial Commissioner for the islands of the Cook Islands Federation. There can, I think, be no doubt that such an appointment would be in the interest of peace and good order within this group ; but I am happy to say that, though a section of the foreign element remain as hostile as ever to everything done by the Federal Government, yet there is a very great improvement even in the attitude of the worst classes of foreigners, who are slowly but surely leaving these islands, so soon as they commit offences likely to bring them under the jurisdiction of the High Court. I have, &c, W. E. Gudgeon, His Excellency, the Earl of Ranfurly, K.C.M.G., British Besident. Governor of New Zealand.

No. 12. Lieut.-Colonel Gudgeon to His Excellency the Governor. My Lord, — British Residency, Rarotonga, 11th September, 1899. I have the honour to forward herewith, for your information, the statement of receipts and expenditure of the Federal Government for the year ending 30th June, 1899, which shows that we have an actual surplus in coin of £399 Os. lid. This is a very satisfactory result, and a complete answer to those busybodies who prophesied that the revenue would not meet the extra salaries granted by the Parliament of 1898 and approved by me. Your Lordship will observe that the revenue is itemised and shown for nine months only : that is, for the period during which it has been administered by the present officers of the Government. For the three previous months it is shown under the head of cash received from bankers, £194 3s. 3d. ; and the reason for this arrangement is that it was found difficult to itemise the sum in question under its proper headings, and therefore it has been dealt with as a lump sum. I have, &c, W. E. Gudgeon, His Excellency the Earl of Ranfurly, K.C.M.G., British Resident. Governor of New Zealand.

Enclosures. Statement of Revenue Account for the Financial Year ending 30th June, 1899.

Frederick Goodwin, Paymaster. Examined and found correct —A. yon Hoff, Auditor. Rarotonga, 30th June, 1899.

Date. Accounts. Amounts. iOth June, 1899 By Import duties, from October, 1898, to 30th June, 1899 Post Office, „ „ Trade licenses, „ „ High Court, „ „ Ariki's Court, „ „ Donald and Edenborough—Cash from bankers ... Bank of Australasia, Auckland, New Zealand Miscellaneous— £ s. d. Shipping fees ... ... ... ... 22 16 0 Harness sold to J. Kohn and Co. ... ... 3 10 0 Rent of shed ... ... ... ... 1 16 6 Dog-tax —Group ... ... ... 5 15 0 £ 8. d. 947 12 9 274 6 8 209 19 4 6 13 0 71 6 11 194 3 3 63 13 11 33 17 6 £1,801 13 4