A.—3.

Crete bridges at Avana and Avatiu are required to facilitate the transport of fruit to this port. The bathing-place is a necessity of life in this climate. At present the Native women have to bathe and wash all clothing in the public view. The retaining-walls in Avarua Creek are necessary to prevent the flood water getting behind the approaches 1o the Makea Bridge. The water-supply from the mountains is perhaps the most necessary of all the measures that we are called upon to undertake. So far we have not been able to carry out the necessary surveys, but we have reason to believe that we have a permanent mountain spring about a mile and a quarter inland, which will give a fall equal to 200 ft. per mile. The expense will probably not be more than £1,500, of which sum £500 has been appropriated for the present year. At Aitutaki it is proposed to spend a sum of £200 in concreting the end of the stone pier, and in building a cargo-shed thereon, and £150 has been voted to construct a fresh-water reservoir and bathing-pool. All of these works are necessary, but more especially those that will insure a good supply of pure drinking-water, and the cleanliness essential in a tropical climate. At present the people of Aitutaki suffer from repulsive skin-diseases that are aggravated by the scarcity of fresh water. Bathing in tropical seas only tends to aggravate many forms of eczema. At Mangaia it is proposed to spend not less than £200 either in improving the passage through the reef or in making the road through the Makatea. This question I propose to leave to the Island Council. If possible, I propose to plant the whole of the Island of Takutea this year. I submit the public-works estimates, Return F, for your approval, the amount being £2,950. The schedule marked G is the estimate of the ordinary expenditure of the local Administration of the Cook and Northern Islands. The increases in salary are few and insignificant. Mr. Connal's salary is now £300, a sum that is still inadequate to repay the services he renders. The Native boys who are employed in the Public Works and Survey Departments now receive a livingwage, and Messrs. Cameron and Large now receive £200 per annum. In Schedule 4 will be seen the estimated revenue for the ensuing year. In Schedule E the details of the contingent expenditure have been worked out for your information, and in order that you may have the fullest possible knowledge of the prospects and financial position of these islands, I have the honour to submit a comparative table of the revenue and expenditure for the last ten years : — liesa Spent on Revenue. Expenditure. Public Works. Year - <£ itfcSa. ' £v a. d. : ? I bp>£ s. d. 1896-97 ... ... 1,230 2'"9 1,654*0 3 ... . 1897-98 ... ... 1,379 10 0 1,439 9.5 ' 1898-99 ..'. ... 1,801 13 4 1,402 12 5 1899-1900 ... ... 3,166 7 10 2,188 9 10 500 0 0 1900-1 ... ... 4,252 17 11 2,951 14 10 500 0 0 1901-2 ... ... 4,063 9 6 2,335 7 3 260 0 0 1902-3 ... ... 6,584 13 4 4,725 16 11 1,623 9 10 1903-4 . ... ... *5,310 4 3 4,558 3 9 1,163 910 1904-5 ... ... *5,574 14 0 5,093 8 8) . Sfifi r _ 1905-6 ... ... *7,157 1 0 5,505 10 11 I I)6bb J ° * These amounts do not include balance from previous year. The health of the Group has been normal during the year, but as Mr. Brown is now taking the census, and Dr. Pomare is making a professional report on the whole Group, I have not touched on these points, as any information I might have on the subject would necessarily be inferior to that collected by experts. W. E. Gudgeon, Resident Commissioner.

Sub-enclosures. A. Cook and other Islands Administration. —Port of Rarotonga.—Return of Imports for the Year 1905.

95

Article. Whence. Value. Total. -gricultural produce (not otherwise enumerated) .. jiimals, living—Sheep Pigs .. ■".." jme, ammunition, and explosives £ £ 171 101 New Zealand .. New South Wales United States America.. 40 M \ it >> ») >> ?> .... New Zealand United Kingdom New South Wales Germany .. i.. United States America.. Tahiti .. " 5i Lpparel and slops .. .. 701 22 196 44 61 305 ,, .. .. .... 1,32!