A.—3

Had full freights of bananas been maintained after alterations and improvements had been made to the vessel the New Zealand taxpayer would have had no grounds for condemnation of the service. The Government, upon reviewing all the circumstances, has decided to maintain the vessel in the Samoa -Niue- New Zealand service, but has transferred the management thereof to the Samoan Administration. It has also found it advisable to detach Niue (which is geographically much nearer to Samoa than to any of the Cook Islands) from the Cook Islands Administration and to attach it to Western Samoa under the Department of External Affairs. The " Maui Pomare " has never served any other of the Cook Islands. Tkade between Cook Islands (including Niue) and New Zealand. If the figures of commerce are to be taken as the criteria of successful colonization, the following, which shows the trade in the ten years ended 31st December, 1931, may be of interest: —

These figures reveal the effects of the depression in inward and outward trade. The inhabitants of the islands cannot purchase more of the foodstuffs or clothing and other articles that New Zealand can supply unless they can pay for the same with the bananas, tomatoes, and oranges they grow, or with the copra they ship to the other end of the world. In regard to citrus fruits, they have been very considerably displaced in the New Zealand market by importations from Australia and California, as the following figures show

There may be another road to economy through proper exploitation of the abundant resources of islands, only a few days' steam away from New Zealand—islands forming part of the Dominion of New Zealand for the welfare of which she is responsible, and to the service of the inhabitants of which she makes annual contributions. To the extent that these resources and trades are developed and safeguarded, so will island revenues appreciate and island treasuries assume more and more of the responsibilities and costs of administration and public services. A. T. Ngata, Minister for the Cook Islands.

5

Niue. Rarotonga. Total. Year. — ; : Imports. Exports. Total. Imports. Exports. Total. Imports. I Exports. - I ££££££££ 1922 .. 13,188 14,938 28,126 93,386 102,906 196,292 106,574 117,844 1923 .. 14,737 12,960 27,697 93,756 91,128 184,884 108,493 104,088 1924 .. 14,169 14,603 28,772 101,727 108,352 210,079 115,896 122,955 1925 .. 14,953 17,320 32,273 91,504 95,362 186,868 106,459 112,682 1926 .. 14,105 17,655 31,760 95,531 101,752 197,283 109,636 119,407 1927 .. 10,896 14,290 25,186 87,773 99,106 186,879 98,669 113,396 1928 .. 14,403 16,347 30,750 81,511 96,470 177,981 95,914 .112,817 1929 .. 14,688 13,449 28,137 73,565 93,066 166,631 88,253 106,515 1930 .. 14,863 13,323 28,186 69,976 85,956 155,932 84,839 99,279 1931 .. 8,958 5,186 14,144 49,223 66,932 116,155 58,181 72,118 Total .. 134,960 140,071 275,031 837,954 941,030 1,778,984 972,914 1,081,101

1928. 1929. 1930. ! 1931. lb. lb. lb. lb. Australia (including Norfolk Island) .. 5,101,900 3,376,113 6,405,305 11,156,620 United States of America .. .. 2,409,666 4,162,990 2,798,658 2,490,466 Cook Islands .. ..- .. 7,881,699 6,376,273 7,696,066 3,336,439