A.—3

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eighteen months and as yet had done nothing to help the people of the island; that I merely appointed you to a seat in the Council in the hope that your experience might be of use to the members thereof, and aid them in reducing the island requirements into the legible form of local Ordinances. You will do well to direct the attention of the Council to the important fact thai no act of theirs can have the force of law until it has received the assent and approval of His Excellency the Governor, and that they cannot expect such approval unless their laws are clearly expressed in language that will prevent future misconception. As you know, Ido not care to see any interference in the working of the Island Council; I am therefore much pleased at the tone you adopted towards the people on this head. Miringatangi is suspended from all duties as an officer of the Government, and, if he wishes it, I will inquire into his behaviour, but in the meantime point out to him that he has assumed powers to which he had no right whatever when he expended money without authority during the visit of the Hon. Mr. Mills and the members of the New Zealand Parliament, and that by so doing lie has shown his unfitness to hold any office of trust under the Government. It will be as well that you should overlook many things in your management of these people that could not be allowed to pass in New Zealand, for you must remember that they are but halfcivilised, have always suffered more or less from swelled head, and are very badly advised by their leaders. I have, &c, W. E. Gudgeon, J. T. Large, Esq., Resident Agent, Mangaia. Resident Commissioner.

To Daniela and Miringatangi. I have received a report from Mr. Large, in which he informs me that you have received him in a most unfriendly manner. This I am very sorry to hear, because it is not the first lime that you have exhibited an unfriendly feeling towards the Europeans at Mangaia, and have tndeavoured to rule that island in your own interests. Let me ask you both to remember that it was your lawlessness that imposed a fine of $1,390 on the innocent people of Mangaia, a fine that would have been doubled had you not submitted. Understand that the Government of New Zealand cannot be frightened by big words, and will not even notice them. Their only anxiety is that the law shall be administered in a just and kindly spirit without favour or vindictiveness; above all, that it shall not be used as an engine of oppression, or to force trade into channels into which it would not otherwise run. I am not ignorant of the manner in which the raui has been used in Mangaia; it has been used to further the interests of a few Native traders, and to the detriment of others. There has not been a legal raui in Mangaia for the last four years, and this is a matter that may have to be inquired into. You know, and so also do I, that during the past three years more than a hundred men have left Mangaia rather than submit to the tj'ranny of Miringatangi. Ataa is the ancient and hereditary Kavana of Oneroa, and it is my intention to restore him to his old position, since he is known to the whole Group as honest and upright, and it is in such men that the Government should trust. I write these words to you in a friendly spirit, and it is for you to see that you give me no cause to visit you in my capacity of Judge of the High Court. From your friend, W. E. Gudgeon, Rarotonga, 13th November, 1903. Resident Commissioner.

No. 105. Sib,— Rarotonga, Cook Islands, 18th November, 1903. In reply to your letter No. 122, I have the honour to report that no quantity of liquor is mentioned in the liquor law of 1890, but the rule that has been observed since that date is to give not exceeding three bottles on presentation of a permit duly signed in accordance with the law. This rule has come to be regarded almost as part of the law, and probably has as much force as the arrangement of 1890, which was never adopted by the Federal Parliament, and for that reason is probably not a law in any sense. I have, <fee, W. E. Gudgeon, The Hon. C. H. Mills, Minister for the Islands. Resident Commissioner.

No. 94.

No. 106. Sir, — Rarotonga, Cook Islands, 18th November, 1903. In reply to your letter of the 31st ultimo, informing me that Admiral Fanshawe would be approached with the view of having boat-passages blown through the reefs at Mangaia and Atiu, I have the honour to point out that it would be well that the Admiral should know that this work could not be successfully undertaken until April next. The heavy northerly seas of the summer will, as a rule, prevent all work on the outer reef. 1 have, etc., W. E. Gudgeon, The Hon, C. H. Mills, Minister for the Islands, Resident Commissioner,

No. 100.