A.—4,

VII.—DIRECT TAXES. The direct taxes are :—

In addition there are the usual motor-vehicle licenses, water rates, and similar fees. VIII.—INDIRECT TAXES. The principal revenue of the Territory is derived from Customs duties —see annual reports on " Trade, Commerce, and Shipping " —store and copra house and other taxes as set out in the Revenue Ordinance, 1929, and the port and shipping fees defined in the Port Control Ordinance, 1932. The law as to stamp duties was brought up to date in the Stamp Duty Ordinance, 1932. The increase of 5 per cent, in import duties on Ist January, 1932, does not appear to have had an unduly restrictive effect on trade. Imports in 1932 were 82-4 per cent, of the value of exports, as compared with 84-8 per cent, in 1931. At the present time when economic necessity for increased taxation is world-wide it is an interesting comparison that a 5-per-cent. import duty and slightly increased shipping dues have been the only additional charges on the public to which the Territory has had recourse in achieving a balanced Budget. IX.—TRADE. The commerce of the Territory is, of course, dependent entirely upon world conditions, and there was a further decline in total trade during 1932 as compared with 1931 of 7 per cent. In last year's report a decline from the previous year's figures of 35 per cent, was recorded, and it is hoped that the lowest point has been reached. This, however, must depend largely upon whether copra values can be prevented from falling below the low level of 1932, which is uncertain. The following return shows the principal exports, and the total values of the exports, imports, and total trade of the Territory for recent years.

These figures are given in respect of complete years instead of by quarters as previously, as the quarterly figures fluctuate according to non-regular arrivals and departures of overseas shipping, and are thus apt to be misleading. The trade figures for the quarter ended 31st March, 1933, which are inserted to bring the position up to date, should be viewed in this light, though there is still a heavy carry-over of local copra stocks which should assist the returns of following quarters.

8

~ ~ " Received 1932 33. 1931-32. j £ £ (a) Personal tax of £1 5s. per annum payable by male adult Europeans 736 838 (6) Graduated salary-tax, from £1 on £200-£300, to £30 over £1,500.. 444 518 (c) Building-tax, 1 per cent, per annum of capital value of European ; 2,250 2,425 buildings I I

Exports. Imports. Calendar Year. Copra. Cacao. Bananas. Total — ™»1 Tow yalue. Tons, Value. Tons. Value. Cases. Value. ~~ ~~~~~~~~ " o -£ ' £ £ £ £ 1927 .. ] 1,665 242.672 792 48,216 .. .. 335,978 304,36!) i 640,347 1928 15 989 319,259 959 69,507 22,815 11,219 422,175 326,553 748,728 1929 .. J 12,941 205,330 677 46,286 53,652 24,640 293,938 288,849 582,787 1930 .. 12,285 i 166,221 1,007 61,294 95,867 44,259 284,515 275,355 559,870 1931 i 11,062 , 109,220 620 35,284 85,231 39,022 194,447 164,950 359,397 1932 .. I 10,879 108,698 825 49,712 66,715 20,016 183,028 150,902 333,930 March quarter, 2,355 23,366 206 11,252 16,576 4,973 40,860 j 61,873 102,733 1933