A.—3

Trade and Shipping. —The orange crop was very light, and the season soon over. Little copra was made —the smallest quantity for many years. The Island in seeking means of bettering trade conditions has this year gone in heavily for tomatoes and kumaras. It is hoped that there will be shipping facilities for the produce to reach the market. Public Works. —The road from Tamarua into the interior of the island has been completed and carried on towards Ivirua for about two miles as part of the scheme for a road right around the island. The Ivirua people are carrying on to join up with the main road in the Ivirua Village. The Veitatei people have continued their road through the Makatea well inland to enable trucks to pick up this season's fruit. Schools. —The work of the three schools has been satisfactorily maintained throughout the year. Teachers' classes have been held weekly at Oneroa. Many of the elder pupils are loth to leave and are kept on the roll as long as there is room for them. New school at Ivirua : The people of Ivirua have erected a fine new school on the new site they donated. The building is finished, but " opening-day " is deferred until after the first fruit steamer, when there will be money available to justify their usual opening ceremony. Roll numbers : Oneroa, 169 ; Ivirua, 95 ; Tamarua, 69. Planting.—There has been extensive planting of foodstuffs. High Court. —In the criminal jurisdiction 413 cases were dealt with, and one on the civil side. General.—The past year has been very tranquil. In spite of lack of money, the Natives are happy and contented. The island has been very law-abiding, no serious crimes have been committed during the year.

NORTHERN GROUP ISLANDS. MANIHIKI AND RAKAHANGA. As there has been no communication with these islands this year, this report relates to the twelve months ending 31st December, 1931. Health. —Health conditions have remained good throughout the year in both islands, despite the fact that there has been no visit of a doctor since October, 1930. Colds and diarrhcea were the more common ailments. Vital Statistics. —Births, deaths, and marriages for the year ending 31st December, 1931. Manihiki: Births —10 males, 3 females, total 13 ; deaths —2 males, 2 females, total 4 ; marriages—3. Rakahanga: Births —4 males, 9 females, total 13; deaths—s males, 6 females, total 11 : marriages—3. Trade and Shipping. —There were seven calls of trading schooners during the year. Trade returns, with a comparison for the two previous years, are as follows : —

This is a striking example of how the spending-power of the Natives of the Northern Group, whose sole export is copra, has decreased during these years of depression. On account of the very low price of copra in London—Jd. per pound is now the ruling price paid to producers in the Northern Islands—many Natives find it necessary and more profitable to use coconuts for food, rather than turn them into cojira. Planting of Lands. —In both islands there have been considerable plantings of coconuts, puraka, breadfruit, bananas, and taro tarua, and the inhabitants have a plentiful supply of these foods. Public Works. —In Manihiki the Government buildings have been kept in repair and painted. In both islands, roads have been kept in good repair, and also the concrete water-tanks. No shortage of water has occurred. At Rakahanga the boat passage from the reef has been improved. Statement of Revenue for year ending 31st December, 1981. —Manihiki : High Court fees and fines, £57 ; traders' licenses, £28 15s. ; diving-machine license, £5 : civil fees, 6s. ; marriage fees, £1 Is. Rakahanga : High Court fees and fines, £17 16s. ; traders' licenses, £20 ; marriage fees, £1 15s. Island Councils. —Regular meetings of the Island Councils were held, at which matters affecting the welfare of these islands were discussed and satisfactory decisions arrived at. Schools.—At the subsidized London Missionary Society's schools (two at Manihiki and one at Rakahanga) attendances and work were both good. The schools are well equipped with desks, cupboards, blackboards, and other school requisites.

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Manihiki. Rakahanga. 1929. 1930. 1931. 1929. 1930. i 1931. Copra exported . . .. Tons. 370 280 200 211 261 131 Pearl shell exported .. 28 16 9 J Value of imports .. .. £ 3,856 2,877 1,122 2,930 2,093 972