A.—3.

I have the honour to submit for your information a table of the exports and imports of these islands from the year 1892 to 1905, inclusive: — Imports, Value. Exports, Value. Year. £ £ 1892 ... ... ... ... ... 16,249 20,337 1893 ' .. * ... .. ... ... 19,284 19,668 1894 ... ... ... ... ... 22,435 20,665 1895 ... ... ... ... ... 23,239 20,138 1896 ... ... ... ... ... 23,068 16,819 1897 ... ... .... ... ... 26,861 24,132 1898 ... ' ... ... .. ... 18,155 12,617 1899 ... ... ... ... ... 13,555 14,219 1900 ... ... ... ... ... 21,181 22,379 1901 ... ... ... ... ... 24,864 27,819 1902 ... ... ... ... ... 27,623 34,821 1903 ... ... ... ... ... 34,886 34,740 . 1904 ... ... ... ... ... 33,399 38,248 1905 ... ... ... ... ... 36,993 34,890 With reference to the proposal to establish a fortnightly steam service between Rarotonga and New Zealand ports, calling alternately at Auckland arid Wellington, I have the honour to point out that it is by no means certain that such a service would benefit these islands, except perhaps during the months of May, June, and July. The present arrangements for the transport of island produce are really supplementary to the Fiji trade, neither service interfering directly with the other. It is, however, felt that the second steamer may disorganize a system that has worked very smoothly for the last two or three years, and that at least one of our shipments must come into conflict with that of Fiji, to the detriment of all parties. If this should prove to be the case — and Ido not see how it can be avoided —the planters, both European and Native, will cease to ship by that boat. Lest my report on the trade of these islands should appear to be pessimistic, I may say that we are at least twice as well off as we were five years ago, and the habits of industry lately developed by the Native inhabitants insure a continuance of the present prosperity. Lands and Surveys. The past year has been a very busy one, both in the matter of surveys and investigations of title. The Court has held sittings at Rakahanga, Manihiki, and Rarotonga on forty-six days, and during the same period has made 213 orders on investigation of title, and thirteen other orders. In every instance the survey of the block investigated has been previously made by TVEr. Connal, and the Court orders are now ready for issue on payment of the fees. The fees imposed by the Court during the year have been as follows: — T , , Ccrart Fees. Survey Fees. Total. Island. ~ j , J , B „ j £ s. d. £ s. d. £ s. d. Rarotonga ... ... ... ... 241 10 0 352 0 0 593 10 0 Rakahanga ... ... ... ... 19 10 0 21 5 0 40 15 0 Total ... ... ... 261 0 0 373 5 0 634 5 0 The total amount of fees collected and paid into the Treasury for the year ending the 31st March, 1906, has been £330 6s. 2d., and the following fees were outstanding on the same date: — £ s. d. Rarotonga ... ... . . ... ... ... 730 15 6 Aitutaki ... ... ... ... .. ... 164 5 0 Mauke ... ... ... ... ... ... ... 33 15 0 Mangaia ... ... ... ... ... ... 16 5 0 Mitiaro ;.. ... ... ... .. .. 6 0 0 Atiu ... ... ... ... ... ... 5 5 0 Rakahanga ... ... ... ... ... ... 22 12 0 Manihiki ... ... ... ... ... ... 0 15 "0 Total ... .. ... ... ... £979 12 6 In accordance with your instructions, steps have been taken to obtain payment of all fees that have been outstanding for two years and upwards. I have the honour to forward under separate cover the plans of the following islands: Rarotonga, Manuae, Aitutaki, Takutea, Mauke, and Rakahanga, as also a general plan of the Group, which, if lithographed, would prove of great service to sailors cruising among these islands. These plans will show the lands already surveyed and awarded to Native owners, the roads taken, and all other information that may be required. It will be seen that the district under the jurisdiction of Makea has almost all been surveyed and passed through the Court, and, I am happy to say, with but little opposition of friction. In this island it has been necessary to encourage the occupiers of the land to survey and pass the same through the Land Titles Court, to the end that the oppressive mana Ariki might be ascertained and restrained within' proper limits. In the early days of the Court in this island it soon became apparent to me that the people were afraid to oppose the claims of the great chiefs, even where they knew them to be unfounded. They therefore allowed the Arikis and others to seize lands that did not belong to them. In every instance in which an Ariki has been the claimant I

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