525

be willing or able to sacrifice their time for the public good, and the choice of a representative of the planting community would probably fall on a merchant or other resident of Levuka, who would be rather a delegate or advocate for the district which he represented than a representative of the general requirements of the country.

Q. 4. How, if at all, would the natives be represented in the legislature?-A. It would be advisable to give the native chiefs a strong representation in the government, to the extent of equal, or nearly equal, numbers with the white unofficial members in the legislative council. Their good-will would thus be gained, and the government would be fortified by their knowledge of their districts.

Q. 6. What would be the probable expenses of the government?-In the appendix we give a sketch of the government and its expenses, which should suffice to begin with, leaving the improvements and enlargement of departments to follow on an increase of population. An estimate of the revenue and expenditure of the present government is also appended.

Q. 7. What is the actual revenue now levied by the existing government? What are the sources from which it is derived? To what extent and in what manner can it be increased, and what amount of revenue can reasonably be calculated upon as permanent?-A. In appendix (Nos. 14 and 15) we give the actual revenue and expenditure of the government up to 31st December, 1873, distinguishing the sources from which the revenue is derived; but it must be remembered that this has changed continually, and that the "native taxes" have always disappointed the government.

The customs duties may be increased from 74 per cent. ad valorem on certain articles to 10 per cent., and the following spirits from 68. 6d. to 128. a gallon; wine, from 48. to 68. a gallon; tobacco, from 25 per cent. ad valorem to 50 per cent.

We think that a small tax on uncultivated land should be re-imposed, after a survey has been made, and that the tax on cultivated land should be a local tax for the support of roads, bridges, piers, and wharves within the province where collected. Both these have been lately taken off.

Q. 8. In what hands is the control over the revenue and expenditure to be lodged; especially how far such control, in any circumstances, be exercised from this country?A. The control of such revenue and expenditure would be lodged in the hands of the governor in council, subject to the ultimate approval of the secretary of state; and it would only be necessary that control should be exerted by the secretary of state in cases of the contraction of a fresh loan or the undertaking of operations, public works, &c., which would necessitate a loan and a large expenditure.

Henceforth Fiji will probably be at a distance of forty days from England by mail, a lapse of time which would not seriously interfere with obtaining the authority of the secretary of state.

27. We append a statement of the whole indebtedness or liability of the country. We have informed the white residents of the amount, and they have declared to us, more or less formally at different places, their willingness to acknowledge their responsibility for it, as well as for the expenses of a future government.

28. We have been so fortunate as to obtain the assistance of two gentlemen, namely, Mr. Carl L. Sahl, a gentleman connected with mercantile firms in Sydney, and Mr. Thomas Horton, manager of the Fiji Bank, in the investigation of the accounts, and they have given us a report, which we inclose.

29. The greater part of the debt, in fact almost all, has been contracted for the purposes of the white settlers, and the portion which alone can be set to the account of natives has been used far more for the benefit of the native chiefs (and principally Cakobau) than for that of the actual people. The guarantees for the debt in general are laid upon the revenues of the country, the public lands of the country, and the private lands of the King; and we consider that the contribution of such lands, on the part of Cakobau and others, would be a sufficient share of the guarantee to fall on the natives. They contribute also to the revenue by their labor.

30. The extent of public land is, as will be seen, very small, and the chief security for one portion of the debt is what has been called the private lands of the King, but which are not strictly private. King Cakobau has rights of seignory over them, and is powerful enough to be able to remove and satisfy the population, but it is not It would neither be just nor wise to allow more than a powerful lord of the manor. the mortgagee to foreclose, but if the Crown could purchase any of them hereafter by private agreement it would be advantageous to do so.

31. With regard to the validity of the engagements entered into with the lenders of the money, as much as was borrowed by the issue of debentures was borrowed in due and legal form under an act of legislature. The debt to the Fiji Bank was incurred when that bank took up treasury notes. The whole of the charter to that bank is matter for dispute, inasmuch as there was no power to grant it, and also that the preamble gives as reasons for the illegal power exerted, that which is not fact, however much the framers of that preamble may have believed it to be so. Still we think that the advantages offered to and taken by the Fiji Banking Company were not so excessive as to invalidate, morally, its claim to confirmation, save and except the exclusive

privilege of banking and exemption from taxation, both of which are detrimental to the public interest, and should not be confirmed. The company is styled "The Fiji Banking and Commercial Company, limited." As a commercial company or agency it would have power to buy land and import merchandise. There is, therefore, a very strong objection to the latter part of Article 13, which confers to one company or firm the exclusive privilege of exemption from every duty, tax, and impost-a privilege equaled only by that formerly enjoyed by the East India Company.

32. The circumstances connected with the loan of £25,000, issued at Sydney, which produced £18,500, should be more fully related, in order that your lordship may have an opportunity of forming an opinion upon them.

On the 25th July, 1872, a bill (No. 31) which had been introduced into the legislative assembly of Fiji, was passed, empowering government to contract a loan of $250,000 on pledge of public lands.

In pursuance of an authority given under this act, Mr. Woods, then premier, went to Sydney and endeavored to float the loan. The amount raised was to be used to take up former debentures to erect public buildings, and to engage in reproductive works. Mr. Woods found it impossible to place more than $125,000, or £25,000, at 80 to 90 per cent., and could only float that sum by pledging all of what was considered Cakobau's private lands, as well as whatever existed of public land.

The persons who negotiated the loan seem to have had doubts of the freedom of any land to be devoted to such a purpose, and asked certain questions of Mr. Woods, who, on the 7th September, 1872, made the following replies:

Q. If the proposed security for the loan consists of land, can you show that such land has been specially reserved for such purpose?-A. The whole of the public domain is free of liability, saving and excepting 5,000 acres in the island of Ovalau. No lands have yet been sold by the government of Fiji.

Q. Describe the position and character of such land, with plans and full particulars. Also state when and by whom it was surveyed.-A. The territory of the kingdom of Fiji is comprised in seventy-two islands, containing an area of 4,450,000 acres approximately, out of which 890,000 acres are alienated to white corporations and settlers, and 600,000 acres are held privately by His Majesty the King, his chiefs and people, leaving a balance of over 3,000,000 acres of land, about 500,000 acres of which consists of barren and unfruitful lands, such as mountainous and rocky lands that cannot be cultivated. The lands have not been trigonometrically surveyed; they have been roughly surveyed and examined to test the accuracy of the admiralty and American surveys, and those surveys were found correct approximately last year by the New Zealand and admiralty surveyors, invited by the King and people to proceed there to survey and test the capabilities of the islands.

33. We have requested Mr. Woods to explain to us how he could give the negotiators to understand that large areas of public land existed, over which the security was to extend, and he, in reply, read to us a resolution of the privy council (composed at that time of Cakobau and other chiefs and the white ministers) which recites that the chiefs agree that measures shall be taken to restrict the native occupiers to the lands which they require for cultivation, and that all remaining lands shall pass into the hands of the government. If any attempt were made, even now, to proceed upon such a resolution, the greatest distress and disturbance would be the result. To proceed upon it would be to revolutionize the country and to attack the best known and most keenly felt right of the Fijians; and the resolution can only be looked upon as an attempt, by a number of white men, looked up to by their native colleagues as supremely wise in these matters, to create a property on paper which did not exist in fact, and could not be created without engaging in unjust war.

But when an attempt was made by the ministers, through Mr. Woods, to act upon the paper title thus created, another responsibility was incurred.

A case for opinion was submitted to Sir William Manning, of Sydney, New South Wales, by the negotiators of the loan, and Sir William Manning gave an opinion, of which the following is an extract:

"The first of Mr. A.'s points is that he is not aware of the existence of any crown or public lands sufficient and competent to form the subject of the mortgage on public lands which forms part of the securities. This of course depends upon matters of fact upon which I can have no knowledge. But it is clear that if Mr. A. be right, then the act (No. 17, cap. 2) on the subject of the disposal of the Government lands is a baseless enactment, while that (No. 31) by which the loan was authorized, on the pledges of such of the public lands as the King might assent to,' was equally baseless, and was a positive snare to the contemplated lenders; and so also the statement made to the lenders by the authority of the Government, as to the existence of large areas of public lands over which the security was to extend, was a falsehood and a delusion." We cannot do otherwise than concur in Sir William Manning's opinion, and we add that the area of public lands, which is now, after great efforts have been made by the chiefs, nominally 450,000 acres, was in 1872 only about 10,000 acres, exclusive of 5,000

acres already mortgaged; also that the right and power of government over this land was by no means undisputed.

34. We now pass to the consideration of the force which would be necessary to be employed for the preservation of life and protection of property. We have found in the employment of Government a force of 750 men under 18 Europeans of all classes. The former are natives of Fiji, with the exception of a few Tongans. They drill and march well, and are stated by Mr. Swanston (late minister for native affairs) and other Europeans who were with them, to have shown courage and steadiness in a mountain campaign last year, (1873.)

The only purpose for which they are likely to be called into play is to subdue the remaining mountaineers, and to enforce the payment of taxes. The whole native population is estimated at 140,500, and the mountainers at 20,000; and the whole force employed last year was 12 to 16 Europeans, (officers and volunteers,) 160 drilled natives, and from 1,000 to 3,000 auxiliaries. This force was found to be sufficient to pass without a check to the heart of the mountain tribes, with but slight loss, and to capture and burn all the villages they passed.

35. We do not consider that for ordinary purposes a larger force than 300 native police would be required, under 6 Europeans. The necessity for the employment of so large a number as 750 has been urged upon us by the ministers, who, although they rested their right to govern upon the theory of their being a native government and the protectors of natives, have yet found it necessary to exhibit military force at the collection of taxes. This ought to, and would, be unnecessary under a proper government, and the numbers named above might be diminished to 300; or, if kept up would be sufficient for a larger white population, employing a much greater number of laborers than at present. Among these it may be expected that crimes would increase with an increase of numbers.

36. The subjugation of the mountaineers and their partial removal to other parts might be a necessity during one of the first years of a colonial government, and this would very easily be effected by mustering and drilling about 400 men in November, and giving instructions to the friendly towns farthest inland to provide food by growing extra yams, &c. This force should begin its work in May, and would completely, and with ease, remove all the remaining mountain villages, which are likely to give trouble, in a single short campaign, always supposing that the approach by more friendly methods were rejected. Fijian soldiers, with a small number of Europeans as leaders, would be ample for this purpose. A few of the naval and marine officers on the station could well undertake the command of such a temporary force, and satisfactorily conclude the campaign with a minimum of bloodshed, and, the object being to make the interior secure to future settlers, the expense might be borne by Her Majesty's government.

37. The cost of the police force of 300 men should not exceed £3,000 a year. Besides the police force, it would be well to have two small colonial vessels for mail and police purposes; and for the first two or three years, one of Her Majesty's schooners would be of great assistance to the executive for the regulation of the labor-traffic. This vessel would be available for visits to the New Hebrides, where twenty to twentyfive English settlers are already established, who have no consular officer or other supervision.

38. We think that the commission of the governor of Fiji should give him authority over the persons and acts of British subjects in the New Hebrides and the Solomon Islands, or the islands of the Pacific south of the equator and west of the meridian of 168 west longitude, (except New Caledonia and the Loyalty Islands, which are under the French flag.) This would be very satisfactory to Englishmen living in those islands, who would then be able to refer their disputes to the courts of Fiji, and would be able to register vessels and take out licenses to carry laborers in a regular way, whereas they are now doing so either by stealth or through the fiction of a French flag and registers obtained from New Caledonia.

Your lordship will remember that the abuses in the labor-traffic have taken place through the rapacity of the ship owner or master, and should not be laid entirely or chiefly to the account of the planters, who, as we have before remarked, treat their laborers, for the most part, kindly.

In the New Hebrides group of islands, laborers are easily hired to go from one island to another, although they cannot be persuaded to work on the island of which they are natives; and a distinct set of licenses is required for this inter-island traffic. The experience of the Fijian colonial local officers would enable them to regulate such a traffic. The formation of a center of law and order could not fail to have a good influence in this part of the South Seas, where the number of adventurers in various pursuits is yearly increasing; and, in consideration of the duties to be performed by the executive and courts of law, some assistance might be given by the imperial government to the future colonial government of Fiji.

39. We have made the native tenure and ownership of land in Fiji the subject of attentive study; and have obtained from Mr. John B. Thurston, and also from Mr. C. R

Forwood and other gentlemen, explanations and papers on this subject worthy of consideration. These will put before your lordship the state of native tenures, prior to whites coming here. Purchases have been made from natives to a large extent, as will be seen by an accompanying statement, but there remain still considerable tracts of unoccupied lands, though, as is said with perfect accuracy by Mr. Pritchard, formerly Her Majesty's consul in Fiji :

"Every inch of land in Fiji has an owner. Every parcel or tract of land has a name, and the boundaries are defined and well known. The proprietorship rests in families, the heads of families being the representatives of the title. Every member of a family can use the land attaching to the family. Thus the heads of families are the nominal owners; the whole family are the actual occupiers. The family land maintains the whole family, and the members maintain the head of the family.'

40. In order to make a purchase secure and beyond the possibility of dispute, present customs would require the assembly of the following persons, viz: The great chief or his representative, the lesser chiefs, and the principal men of the adjacent town. These should walk over the land, define it, and conclude the sale on the spot. The natives should then build a house or plant yams for the purchaser, in recognition of his lordship over the soil.

The strict value of the rights of each party to this agreement varies according to the power of the chiefs in different parts of the group. In some places the chief would be strong enough to make the sale alone, and to give possession to a foreigner, receiving all the purchase-money and removing the natives by force to other lands; but, in general, as things now stand, if the purchaser were to deal with the great chief alone, he would only buy his rights as lord of the manor, or whatever they might be, and would not acquire exclusive possession of the soil.

On the other hand, were he to purchase from the people without consulting the superior chief, he would not be recognized by the latter, who would probably try to sell over his head.

Since the formation of the government here in 1871, regulations for the issue of Crown grants have been made and acted upon. Mr. Thurston has asked that the Crown grants already issued may be confirmed, but we are of opinion that each case should be examined afresh on its own merits. Apart from the question of the legality of these Crown grants, which is more than doubtful, we know of the issue of a Crown grant on very disputable grounds. Not more than twenty sneh grants have been issued.

41. We are informed by the existing government that at one of the early meetings of the chiefs in council after the formation of the present government, a resolution was agreed to by which all the natives were to be gradually confined within limits of land sufficient for their support, and that all lands outside these limits were to be considered government property; but nothing has followed this resolution. We mention it again because we wish to point out the dangers which would have resulted had it been carried into effect. To interfere with the possession of land in this way would be to attack one of the oldest and best-understood rights of the natives, and would entail the prosecution of a most unjust war.

No chief had either the right or power to dispose of the land of the lesser chiefs and people, without their consent, in this wholesale fashion. It is true that much of the land is uncultivated and unoccupied; but, of course, the natives who could show just claim to it have a right to its disposal. The only sense in which the resolution above referred to could be acted upon would be the following, and that only in future years, namely, that after a liberal appropriation of land to a town or village, a small tax should be laid on the unoccupied remainder laid claim to, with the option of selling to government on valuation, and this could only be done if the same principle were ap plied to the unoccupied land of white proprietors.

Many portions of land now claimed by whites are still held on doubtful tenure, and are in dispute, either with natives or with other whites, and these doubts arise either from the incomplete manner in which the purchase was first made by whites, or from the very incomplete survey taken of the islands when the purchases were made; there being some instances in which the purchase was made from the wrong persons, and others in which the title-deeds of adjacent properties set forth that their boundaries extend along lines drawn at right angles to the shore. Thus where the shore is irregular, a segment, common to both properties, is included in each title-deed.

42. Hence it will be evident that the first step in the land-policy of a colonial government will be the accurate survey of the islands; and we suggest that the hydrographic portion should be completed by Her Majesty's government, if the local government undertakes the cadastral survey.

43. Replying, then, to the questions which your lordship has proposed to us: Q. (1.) Whether the title to land is fully vested in the King and chiefs?-A. The title to the land is not fully vested in the King and chiefs.

Q. (2.) Whether there are any tribal rights or local customs which affect or limit

*Pritchard's "Polynesian Reminiscences," page 242, 1866. Chapman and Hall, London.

their power to grant and dispose of it?-A. Their power is limited by custom, though the limits have often been disregarded where a powerful chief has been offered a sufficient inducement by a European, as well as in course of native customs and

rasus.

Q. (3.) Whether it is proposed that unalienated land shall be absolutely surrendered to the Queen, or shall continue to remain in the hands of its native owners until conveyed to private purchasers?-A. It is proposed that certain lands shall be conveyed to the Queen, but that all other land should remain in the hands of the native owners until private purchasers, or the Crown itself, become the possessors, in the mode we have above indicated for future consideration. It would be most desirable that no purchase should take place from natives, but through the intervention of the Crown, as in New Zealand.

Q. (4.) On what terms and conditions is land now occupied or owned by white settlers-A. For the most part, the land held by white settlers has been purchased. But there are exceptions to this rule, in case of land which is called the private property of Cakobau himself, and also in the case of the land under authority of Maafu, in the Windward Islands. This is held by Europeans on long leases of forty to fifty years.

Q. (5.) What proportion of the land in the islands is in such occupation, and what amount remains available for future settlement?-A. The proportion of land in the possession of whites is given in an inclosed schedule, which we have had corrected from a table prepared by the government. Most of the best lands have, of course, been already secured, though not all cultivated; but there remain large areas of good soil, fit for coffee, cotton, sugar, &c., in the hands of natives, in addition to the large acreage of first-class land conveyed to Europeans, but uncleared, (as shown in schedule,) much of which would be sold, on annexation, to clear the remainder from incumbrance, and to obtain capital for renewed enterprise.

45. We can add nothing to the excellent report of Dr. Seemann on the capabilities of the soil. His predictions have been amply fulfilled by experience.

The natives have cultivated nothing but their own food and a few necessaries for centuries past, but Europeans have grown cotton with success, until the heavy fall in price, which has reduced many of them to absolute poverty, and has prevented their embarking in new industries.

A single sample of ten tons of sugar has been produced and sent to Australia, and two mills are now being erected, three more having been ordered. Every planter is making an experiment of a small acreage of cane, of which there are several indigenous varieties of good quality; and men who have experience of cane-growing in Queensland and in the West Indies have pronounced a very favorable opinion on the quality of the Fijian cane. There can be no doubt whatever that sugar will be the chief industry of the best lands of Viti Levu, Taviuni, and Vanua Levu, while cotton remains the staple produce of the Windward and smaller islands.

We have been assured by representatives of good houses in Sydney, that they are prepared to advance money to planters for the cultivation of sugar, and to erect crushing-mills immediately, if it were known that the government would be taken by Her Majesty. On the other hand, we are assured by many planters that if the country be not annexed, they will not obtain advances and will be obliged to leave the islands.

46. Your lordship will observe that though a large area of land (854,956 acres) is owned by whites, yet only 16,524 acres are under cultivation. This cultivation employs a population of 1,500 whites, and, therefore, we may suppose that if the whole were under cultivation, about 25,000 whites would be employed, and that the laborers, all or nearly all of whom must be imported from other parts, would increase to 200,000 or 250,000.

The lands not yet cleared include a great portion of the very finest soil, both on the Reiva River and also on Taviuni, admirably fitted for sugar-plantations; also other land well adapted for coffee and spices.

47. In connection with this subject we have considered the possibility of an English population retaining a healthy condition in these islands. We inclose a report by Dr. A. B. Messer, staff-surgeon of Her Majesty's ship Pearl, by which it will be seen that there is at present no disease in the islands, except dysentery, which, in many cases, is distinctly traceable to the influence of insufficient animal food and immoderate use of spirits. Families of British subjects are numerous, and although it cannot be said that children are so strong as in more temperate climates, yet they are healthy. Many settlers follow their employment as planters, overseers, and laborers all day in the open air, but we have not heard of a case of heat-apoplexy.

48. Tables of shipping and commerce, made out in the government offices, are appended to this réport.

49. We have nothing to add to the statements previously made to Her Majesty's government, and published in England, on the subject of the claim of the United States against King Cakobau-a claim which was unfairly made and unfairly pressed, and which has led to speculations of a questionable character.