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A.—3

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Roads. The sum of £234 Gs. 9d. has been spent on t'oau* during the year, distributed as follows: — Total (tost E s. d. Alofi-Hakupu Road, 6.") chains, width 14 ft., cost per chain 12s. 7'4d. 41 0 0 ~ day-labour ... ... ... ... 24 16 0 Aloti-Avatele Road, 101 chains, width 16ft., cost per chain 18s. 3'sd. 92 7 3 day-labour ... ... ... ... 16 IS 0 Alofi—Tuapa Road, 43 chains, width 16 ft., cost per chain lis. 10'3d. 25 10 6 Avatele Village Road, day-labour ... ... 33 15 0 £234 6 9 The Avatele-Alofi Road, miles, the Aloh-Tuapa Road, .">£ miles: and the Alofi-Hakupu Road, 1\ miles, are now completed throughout ami suitable for wheeled traffic. The Alofi-Liku Road is still very Btony in places, ami the main road from beyond Tuapa to Mutalau, also the road from Hakupu to Avatele requires attention. Emigration. Two hundred and thirty-five persons are recorded as having left Niue for other islands during the year, and probably a score of others left surreptitiously to avoid payment of the registration fee, and for reasons of their own. Their destinations were as follows: — New Zealand ... ... ... ... ... •■• 6 Tonga ... ... ... ... ... ■■• ... 95 Maiden Island ... ... ... ■ ■ ■• ... 40 German Samoa . • • ■ •. • ... 75 New Guinea ... ... ... •■■ ••■ • ■• .15 Cook Islands ... . . ... • ... ... • ■ ■ 4 235 The Maiden-Islanders are sent back to their homes at the expiration of their term of service, but those who go to other islands for their own purposes remain absent for long periods, and many of them never return to Niue, heartlessly deserting their wives and families in many instances. The excessively rocky nature of the land on this island renders it difficult for the Natives to cultivate the soil, and engenders a desire to go to more fertile islands, where the surroundings are more attractive, and better remuneration may be obtained for their labour. The Niue Native has been a wanderer since the first advent of the trading-vessel to his shores. There is no doubt that this island suffers greatly from the continual exodus of its able-bodied men; but if they elect to go to look for work in other islands it would be interfering with their liberty as British subjects to attempt t<> restrain them. Little colonies of Niue people are to be found in Tonga and German Samoa, where they have acquired plots of land to live upon while working for Europeans. ' 'ommwvicationt, After nearly six years of New Zealand control Niue is now in a more unsettled position as regards communication with the outside world than at any other time probably since traders have Ken established here. This is not as it should be. Despite the efforts of those in authority to institute a more reliable system of communication by steam vessels, which would be more in accordance with the times we live in, nothing has yet been achieved in this direction ; and as the Government schooner "Countess of Ranfurly " will in till probability be laid up or sold shortly, the traders here are obliged to charter a vessel to supply their requirements. Until regular means of communication with the centres of commerce are provided, Niue can never develop to the full extent of her resources. As it seems hopeless to think of obtaining regular steam communication, the next best plan will be for the Administration to charter a schooner of about 140 tons to make four trips direct from Auckland to Niue, sailing at the end of March for the first trip, and thereafter at intervals of three months, excepting the last trip of the year, which should leave Auckland early in December, to finish before the hurricane season. An alternative scheme is to subsidise the steamer "Maori," of Pango Pango, l<> run several trips per year from Samoa to Niue. Correspondence on this latter subject lias already taken place. It is not known, however, how the cessation of the Frisco mail-service may affect this vessel. Future Prospects. It will be as well to make a few remarks on the outlook for Niue from an economic point of view. It is useless to expect any great progress to be made unless outside capital is introduced to develop the resources of this island. Before capital can be attracted land must be available for plantations, &c. There is a large quantity of land in Niue which, although very stony and at present covered with dense vegetation, is well suited for growing coooanuts, the most valuable crop in the Islands. There is no doubt whatever that in time all this land will be utilised by Europeans; the present owners will never do more than cultivate barely sufficient to supply their actual necessities. ~.,,,,, >• j- • i , Great difficulties exist at present in the way of leasing areas of this land. Although individual owners have expressed to me their willingness to lease portions of their waste land, nothing is likely to be done so long as the present King of Niue lives. He is imbued with the doctrine, sedulously instilled by the missionaries, that "all the land is required by the Natives for their

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