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No. 103. Cook and other Islands Administration, Wellington, Sir, — 2nd November, 1903. I have to acknowledge the receipt of your letter of the 10th October, with a statement of (lie revenue and expenditure of Niue for the quarter ending the 30th September, 11)03. The result shown is most satisfactory. I am glad to hear you are making good progress with the road-work, and 1 think if the revenue continues to come in satisfactorily you might spend another £200 on the work. I approve of the payment you are making to the labourers, 2s. a day, with the gift of tobacco to the women for the assistance they give. I shall be glad to receive your promised statement of the measurement of the roads and the average cost per chain. I have, &c, C. F. Maxwell, Esq., Resident Agent, Niue. C. H. Mills.

No.

No. 104. Sir, — Rarotonga, Cook Islands, 15th November, 1903. I have the honour to forward herewith a copy of a report from Mr. Large as to his reception at Mangaia by the people who are interested in the continuation of the late unsatisfactory administration of the law in that island. I also forward copies of my reply to Mr. Large and of my letter to Daniela and Miringatangi. I may say that I have anticipated that the two men last mentioned would attempt to create trouble, as they are well known to object to the presence of Europeans at Mangaia, and, above all, to the appointment of a European officer. For the characters of these men 1 would refer you to the Cook Island papers of 1890, A.-3, pages 3 and 9, and to A.-3a, pages 8, 11, and 12. As to the statement made by Miriugatangi, that the Governor and Parliament of the Cook Islands had appointed him, it is not true. I had to choose which Judge of several I would keep, and chose Miringatangi, though Makea had grave doubts as to his fitness. This is a case in which we should reinstate Ataa, who is really the leading chief of the island, and a man of very high character. For he it was who suffered by reason of his leasing lands to Europeans, a thing he had an undoubted right to do. I would suggest for your consideration the advisability of abolishing the Arikis' Courts as soon as possible, and of making each Resident Agent ex officio Magistrate of the island with powers similar to those held by the S.M.s of New Zealand, for until this is done there can be no protection for the small people of any island. It is, in my opinion, of the utmost importance that the administration of the law should be in the hands of Europeans. Since Daniela's last visit to New Zealand, he has suffered severely from a sense of his own importance, and nothing, I think, will cure him short of a severe reprimand from yourself or the Premier. I have, &c, Hon. C. H. Mills, Minister for the Islands. VV. E. Gudgeon.

Enclosures. Sib, — Mangaia, sth November, 1903. I have the honour to report my arrival here, and what has transpired since I came. The " Ngamaru " reached here on Tuesday morning, though wo sighted the island on the previous evening. Before I landed I received a note from Mr. Proctor, intimating that he had arranged that we should stay at John Trego's for the present, as he had been unable to find any suitable place for us. On landing, therefore, after the usual greetings to the people assembled on shore, we proceeded to the residence of the Ariki, where we were invited to stay until we could find a house to live in. As I thought it best to lose no time in presenting my credentials, 1 asked John Trego to send messages round the island convening a meeting at Oneroa for the following day, which he did. The meeting was held at the L.M.S. schoolhouse (kindly lent to me for that purpose by the Rev. Bond James) on the 3rd instant, and was attended by the Arikis John and No'oroa, the Judges and police of Ivirua and Tamarua, the police of Oneroa, and the Kavanas, Mata Mataiapos, members of the Council, and other leading men. Mr. James and the other Europeans of the island were also present at my invitation. The proceedings were opened with prayer by the missionary, as is usual in these Islands. I then proceeded with the business of the meeting by reading the notification in the Cook Island* Gazette, notifying my appointment as Chief Magistrate, &c, and my commission signed by His Excellency the Governor and the Hon. C. Mills I exhibited to the meeting. I then read your letter to the Arikis, chiefs, and people of Mangaia, and then gave them a sketch of my career, showing my long connection with and attachment to the Maori race, the work I had done in New Zealand, and the position I had attained there; also my subsequent appointment as Magistrate at Aitutaki, with the result that the good order and prosperity of that island was increased, and that I had now been selected by the Government of Now Zealand to improve the administration of the law and local Government of Mangaia, and was prepared to assist in the development of the island resources, and generally do my best to advance the interests of the people. I noticed that the attitude of the meeting was cold if not unfriendly towards me, and that no leading men were present to welcome me on my arrival. Daniela Metua was the first to speak. He said that they objected to my appointment to the island, as they had not been consulted in the matter, and no official intimation had been previously sent advising them of such an important step on the part of the Government. He said that the