A.—3

New Zealand cannot now shirk the most important, the most far-reaching in implication and effect, the gravest task that any representative of white civilization can undertake in respect of a Native community. Experts may differ as to the method or standard or degree of education that should be aimed at. Governments may debate the wisdom of a " white collar " education or the safe extent of " English " in the curriculum. For good or for ill, the missionaries and the seamen, the traders and the tourists, and the officers of the Government have brought the complicated problems of the great world to the reefs and atolls and to the beaches and palm-groves of the South Sea Islands, and their culture, with all its unrest and stirrings, its trials and tribulations, cannot now be barred by any device of man. To deny a sufficient education to the Polynesian tribes in these islands would not be humane : it would not be manly or sportsmanlike : it would not be worthy of decent British traditions. The Polynesian must be given a sporting chance to understand the world into which he has been projected and to fill his part therein efficiently ; and civilization has not yet devised any better method than the patient impressing of itself upon the mentality of subject peoples and the demonstration in manifold experience of what it demands in order that they may attain ease, confidence, and comfort in the new environment it weaves around them. The M.Y. " Maui Pomare." Prior to 1925 there had been pressing demands for improved shipping facilities between the islands and New Zealand. A Commission appointed in 1920, comprising Messrs. George (now Sir George) Elliott, W. R. Pearson, and Thomas Wilson, stated, " The remedy is obvious: either the New Zealand Government should make equitable arrangements for a direct Samoan service or purchase suitable ships themselves." The Auckland Chamber of Commerce in 1921 urged the Government to provide a subsidized or other improved steamship service ; South Island Chambers of Commerce urged the Government to arrange for a direct steamer service from the islands to southern ports. Meantime the mandated territory of Western Samoa and the Island of Niue demanded an outlet for their fruit trade and better facilities for trading with New Zealand. Although every endeavour was made from time to time to induce private enterprise to cater for the trade, and public tenders for a satisfactory service were invited, no improvement was affected. The old " Hinemoa " was taken over and reconditioned, and from 1925 until 1928 she ran the Government service between Niue and Auckland, and by arrangement with New Zealand merchants made periodical calls at Norfolk Island. She rendered an indispensable service in removing lepers from the Cook Islands, Niue, and Samoa, and also from New Zealand, to Makogai, Fiji, a service which without the Government vessel would have been an extremely difficult and costly one to carry out. Prior to the Government taking over the Niue service in 1925, the sum of £3,866 was spent on it in one year for relief ships and subsidy. The expenditure on the ' Hinemoa " in the vote for the Cook Islands Administration was as follows :—

The " Hinemoa," on account of her build, was unsuitable for fruit-carrying, and the Government of the day determined to replace her with a vessel fitted with insulated'holds for the purpose of carrying on the service between Samoa and Niue and New Zealand. It was thus that the m.v. " Maui Pomare " was acquired by the Government of New Zealand. She was launched on the 29th September, 1927 ; arrived in Wellington Ist June, 1928 ; and entered into service on the 26th of the latter month. The cost of the vessel was provided by the Consolidated Fund and divided between the Cook Islands Administration and Samoa ; the taxpayer has already paid the capital cost. Experience showed that extensive structural alterations were necessary to make the vessel efficient for the Samoa - Nine - New Zealand service, and during the 1930-31 financial year these alterations cost £9,563 and necessitated the lie-up of the vessel for nearly five months and the loss of revenue. The banana trade has, in common with other trades, suffered from the depression, but more particularly because of importations from Fiji and Tonga. Decreases in quantities shipped from Niue were registered on account of hurricanes, and from Samoa owing to various causes. The losses in the running expenses of the vessel since the inception (the figures are taken from audited accounts) have been as under : —

4

I j 1 1925-26. 1926-27. 1927-28. 1928-29. £ £ £ £ Working-expenses.. | 14,136 j 22,140 20,344 7,288 Credits in aid .. j 12,672 12,240 13,828 3,891

Excess. Year ended Expenditure. Revenue. Profit. Loss. £ ! £ £ £ 31st March, 1929 .. 20,479 j 20,491 12 31st, March, 1930 .. 30,400 I 25,150 .. 5,244 31st March, 1931 .. 28,792 1 14,177 14,615* 31st March, 1932 ... 26,012 23,182 .. 2,830 | * Structural alterations cost £9,563 and vessel was laid up, not earning revenue for nearly five months.