SAMOA AFFAIRS.

Auckland Star, Volume LXXI, Issue 237, 5 October 1940, Page 8

SAMOA AFFAIRS.

EFFECTS OF WAR.

COPRA INDUSTRY HIT.

SAMOA, September 18.

In sessions on August 7, 12 and 19 on the occasion of the current year's estimates of revenue and expenditure being submitted to the Legislative Council for consideration, the Legislative Council staged a full-dress debate on the subject of the territory's critical economic position and the resulting financial difficulties of the Administration. The discussion between the lone elected European representative present, the Hon. O. F. Nelson, supported 'by the four elected Sanioan members, and the official members of tli.e Councii, brought out the conflicting viewpoints of the two opposed sides regarding the remedies to be adopted and became at times somewhat heated.

Opening the Council's' session on August 7, the acting Administrator, as chairman, welcomed three new Samoan elected members of the Council, the Hons. Alipia, Leletila Siavao and Tuisila, and Mr. E. J. McParland, the new treasurcir. He also expressed appreciation of the action of the Hon. Dr. C. M. Dawson, now on leave from the Council, who had taken up acting service overseas in the Merchant Navy, assisting the war effort by releasing a younger and, fitter man for active service.

After giving a short review of the events of the first year of the war, the Acting-Administrator pointed to the efleets, of the war in Western Samoa, which had been hit vitally in the depressed condition of the copra industry and the freighting difficulties in common with all other Pacific territories. The financial difficulties were mirrored in the Estimates tabled for consideration of the Council. The territory faced a lean time, but. confident of the Empire's ultimate victory, could look forward to the years of plenty in a peaceful Christian democratic world. General Finances. A resolution of the Council, moved by the Hori. O. F. Nelson and seconded by the Hon. Faalava'au, was passed, expressing sympathy with tha British Empire in its present struggle, and expressing the hope that free institutions may prevail.

At the second session on August 12 the Council proceeded to consider the Estimates for 1940-41 and submit recommendations to the New Zealand Government regarding them. In his opening remarks the acting-Administra-tor dealt with the general finances of the Territory. The financial position for the year ended March 31, 1940, was as follows:—Revenue,' £131,410 7/7; expenditure, £135,648; deficit, £4231 12/5. The revenue included an amount of £282(5 J3/1 transferred from the building reserve, so that actually the cxcess expenditure over revenue for the year was £7058 1/3. The Public Works Department's expenditure was heavier last year than usual on account of £10,000 being spent on storm damage. Apart from this the bulk of expenditure was incurred in connection with social services—health, education and Native Departments. Position Deteriorated. The position of revenue for the first three months of this year showed that £10.000 less was received than for the corresponding period of last year. Since then the position had further deteriorated. The overseas copra market was very depressed and there was difficultv in getting ships to take the copra away. Many of the smaller traders had ceased purchasing copra and were closing their outside trading stations, while the three leading merchants had decided to purchase copra on a barter basis, exchanging copra for goods, so that there was little or no cash circulating in the outdistricts. In view of these developments tho estimated revenue would probably not be realised. There were two ways of rectifying the position, by decreasing expenditure and by increasing revenue by taxation.