ECONOMIC PROBLEMS OF SAMOA

Dominion, Volume 27, Issue 171, 17 April 1934, Page 11

ECONOMIC PROBLEMS OF SAMOA

Price-Decline for Main Products ADMINISTRATOR REVIEWS SITUATION By Telegraph.—Frees Association. Christchurch, April 16. The economic difficulties being faced in rhe mandated territory of Western Samoa because of the decline in prices for copra and cocoa were described by the Administrator. Brigadier-Genera) H. E. Hart, in an interview to-day. Brigadier-General Hart, who is on tl holiday visit to New Zealand, mentioned that the position bad been met to some extent by the remission or reduction of taxation in the form of export duties on cocoa and copra. Notwithstanding the bard times the Administration of Western Samoa had been able to balance its budget, said Brigadier-General Hart. That applied not only to the year ended March 31, 1933. but also to the financial year just ended. Samoa had naturally been affected by the fall in prices for its products on the world’s markets. Two or three years ago there was a big drop in prices for the two main exports, cocoa and copra, and in addition there was a further drop of 33 1-3 per cent, toward the end of last year. As a resun there was undoubtedly a shortage of money in the territory at present. It was fortunate that the natives could live almost entirely without money. They had no rent or interest to pay and no rates or taxes.

With the Europeans, unfortunately, the conditions were different. However. the total European population was less than 3000, so that the number affected was not large.

The Administration had endeavoured to meet these conditions by making concessions in export duties. In November last it remitted the whole of the export duty on cocoa and reduced the export duty on copra by 33 1-3 per cent. At the beginning of the present mouth a further concession was made, the remaining export tax on copra being reduced by 50 per cent. 'Phe banana trade constituted the brightest spot on the economic horizon of the mandated territory, and bananas were realising a payable price at pres ent. In that respect the people of Niue and of Western Samoa were much indebted to the New Zealand Government for providing a steamer service by the Maui Pomare. without which the banana trade would not be possible.