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oredited with the freight claimed thereon by the Schooner Department, the effect of which is that the coal becomes the property of the Islands as a cost of less than £10. This arrangement seems fair enough under present circumstances, but in the event of your effecting a satisfactory sale ot the coal it will be necessary to decide as to the disposal of the proceeds. The coal was sent principally to make up the necessary quantity of ballast, and the question of freight may therefore be said to be in a different position from that of an ordinary cargo. This adjustment gives credit for all the amounts claimed by the Schooner Department, excepting the amount of Mr. Haszard's passage to the Cook Islands and Niue, £15, which has already been paid by the Resident Commissioner of Niue. All amounts advanced by the New Zealand Government "up to the end of July, 1904, are recovered. There is still outstanding the amount paid as wages to the master and mate of the schooner since the July payments, for which 1 am sending you an account. You will observe that the Customs duties refunded are only those collected up to the dlst March 1904. A refund of the amount collected during the year ending the 31st March proximo will be made in due course, when the authority of Parliament has been obtained. The adjustment effects a very much-needed settlement of accounts—many ot them ot long standing--between this Government and the Islands, and I shall be glad to hear that it is satisfactory from the standpoint of your Administration. Now that the Treasury books have been cleared of the older advances, I do not anticipate any difficulty in working on their Advances Account again for the payment of such claims as it may be necessary to satisfy here on behalt of the Islands, and I propose to render accounts to you quarterly for the recovery of a 1 advances. I have, &C, The Resident Commissioner, Rarotonga. C. H. Mills.

Enclosure. The New Zealand Government in account with the Government op Cook and other Islands. . -„ „r-,i njww „f Customs— £ s. d. I Customs duties collected at Auckland from £ s. d A. R. Miller, Collector ot <~^ s c october> ml to March 1904*A Passage paid to Union Steamship wm g v & pany .. " t '™ th Feb- On account of Niue Island .. .. 243 510 Salary M2W January to j ____,__. „ rf R(mfm . ly „__ ruary, • ■ • • Freight on coal to Rarotonga .. .. 125 0 0 ' • " 4 Beaded Islands Government on Schooner "Countess of Ranfurly"- Recount of wages paid .. "-WOO First instalment of cost, 1904 5 I p p c Messrs . Kirk and Boucher, Cook Islands .. ' 201 0 9 ' Auckland to Cook Islandst .. .. 21 0 0 Niue Island .... Refunded on account of insurance, 1903-4 315 0 0 FA Worsley, master, Ist July, 1901 to Claim for services of vessel in connection o»ji LiqiS • 36 10 5 ! with wreck of " Elmgamite "t •• 92 0 0 ' F and others (crew)! 23rd July, Refund amount paid on account of Bailey ' Tamount overpaid to Captain F WAf A'&JS, 1903; 7» 6 ' by New Zealand Go- 15 i. A. worsiey, m* , 20 0 0 vernment on account of expenses connected F A Workev mas J, November, 1903, with supply of postage stamps post-cards a A. wor..iey, m ' 93 g 8 & and prm tmg, &c. Vote 14, Item 36, to June, 1904, balance .. •• JO , m ', ~ i c 52 0 0 William Champion, master, 4th May to ! 893-4) * 3rd July, 1904 •• ■• 34 0 0 JP. Coulson, mate, June, 1904 .. »10 o JP. Coulson, mate, July, 1904 .. 810 0 William Champion, master, 4th July to 3rd August, 1904 .. •• «0 0 Passage-money, Captain Worsley Auckland to Wellington, Bth June, 1904 . 115 0 Passage-money, Captain Beid, from Islands to Auckland, July, 1901 .. • • HI o Claim for chain (Lane and Brown), July, 1904, allowed at .. ■• •• » » ° Paid on account, Bailey and Lowe .. 919 b Insurance on £2,500, 1902-3 .. .. _%\_\\ Insurance on £2,500, 1903-4 .. 282 12 6 Coal supplied by Westport Coal Company and sent to Rarotonga, July, 1901 .... I<S4 17 U Cost of collecting Customs duties, October 1901, to March, 1904, £2,312 os. 3d. at 1J Prfnting n press supplied to Rarotonga 45 0 0 Expenses connected with supply of postage stamps, post-cards, and stationery and printing &0., September, 1891, to Feb Expenses connected with investigation of accounts of Cook Islands by Audit officer .. 1,902 11 9 Balance payable to Cook and other Islands Governments ■ • • • • • l a " Total 3,154 14 9 Total -£3,154 14 9 »Cabinet direction attached, t Claim attached.

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