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AlTENDIX. 483 SILK CULTIVATION OF BAFFO. "This year the peasants brought to the market 34,000 okes f Silk (93,500 lbs.) cocoons, which realised to them about 6,800/. These cocoons were bought by three merchants excepting about 2,500 okes of silk wound by the people here. ". ... " You are aware [that the cocoon before being in a fit state to export must be dried, and during the process a great shrinkage takes place, which varies 'considerably according to the original quality of the cocoon. This year the cocoon was excellent and the shrinkage small; 3J wet cocoons equalling 1 dry, while last year 5 wet equalled 1 dry. " It is upon the dried cocoon that the tithe is fixed. When ithe fccocoon is good and the price likewise, there is very little winding idone here. " " It is computed that the Caroub trees in the Baffo district number about 40,000. Of Olive trees I cannot give you anything like a guess ; ;I should only be misleading you. " (Signed), "A. G. WAUCHOPE. " It will be remarked that no outlay is contemplated for road-making for repairs of bridges, nor for any of the necessary public works, as jthe general revenue of the island cannot afford the local expenditure. IThis otherwise prosperous little province would be self-sustaining, as Isufficient income would be realised for the annual outlay required for |ioad-making and other improvements. There cannot be a truer example of the error in our Convention with the Porte by which we have '«greed to the surplus revenue exhibited by the Turkish system of accounts in an average of five years. The Baffo estimates show a surplus of 9232/. upon the financial year, but there is the forced neglect lof all necessary improvements owing to the terms of our occupation, which rob the country of about 100,000/. annually. According to the figures of the Baffo forecast of revenue and expenditure, Cyprus can afford to pay the amount of rental to the Porte, but this is to the detriment of all public works, which will render material progress impossible, at the same time that the incubus of Turkish taxation will be permanent. JUDICIAL ADMINISTRATION. By an Order in Council on 14 September, 1878, powers were given for the administration of Cyprus by a High Commissioner appointed by Her Majesty, together with a Legislative Council constituted ac-I cording to Clause VI. :—

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