A.—3

Planting of Lands. —During the year there was considerable planting of coconuts, puraka, and breadfruit. Both islands have a plentiful supply of Native foods. Public Works.—-The Government buildings have been repaired and painted. Concrete tanks at both islands have been kept in repair. The school building at Rakahanga has been reroofed. The boat-passage at Tukao (Manihiki) has been improved. High Court. —Criminal jurisdiction : Manihiki—Criminal offences and breaches of regulations, 93 ; Rakahanga, 6. Civil jurisdiction : Two civil cases were dealt with at Manihiki. Police.—There have been no serious offences during the year, and the three police officers in each island have carried out their duties well. Island Council. —Regular meetings of the Island Councils were held. PENRHYN. Trade and Shipping. —The auxiliary schooner " Tiare Taporo " made five calls at the island during the year, and the auxiliary schooner " Tagua " two calls. Copra shipped for the year, 79 tons. The pipi-pearl industry has declined considerably during the past two years on account of the poor prices obtainable in London and on the Continent. Supplies of pearls from other fisheries throughout the world, and also the competition from culture pearls, have decreased the demand for the pipi variety of pearl. The lagoon abounds in mother-of-pearl shell, but for a number of years prices have not been payable. Recent reports from London show that there is practically no demand for the blackedged shell exported from Penrhyn and Manihiki. Both lagoon reserves have been thrown open for both machine and naked diving continuously until 1932. The pearl-shell output for the year was 27 tons. Rat Pest.—Owing to heavy depredation of coconuts, a campaign against rats is in progress : 2,000 traps of the break-back variety have been distributed under the supervision of the Island Council and Native police. Health. —Health conditions have been satisfactory during the year. The Chief Medical Officer paid a visit to the island in October. High Court.—There were only twenty-nine cases for hearing this year, and none of a serious nature. Police Department.—Police officers have carried out their duties satisfactorily. Island Council. —Several meetings of the Council were held during the year. Water-supply.—The two 5,000-gallon concrete tanks at Omoka and also the two at Tetautua are in good order, and there has been no shortage of water during the year. Schools. —Attendance at the schools at Omoka and Tetautua continues to be satisfactory. Foodstuffs. —Bananas sent from Rarotonga have been planted in both settlements and appear to be thriving. Breadfruit - trees are now in bearing, and there have been further plantings to the number of about four hundred. General.—H.M.S. " Laburnum " paid a visit to Penrhyn on the 10th July.

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