A.—3.

Detailed statements of income and expenditure, and balance-sheet, are printed on pages 15 and 16, Appendix A. The balance-sheet takes into account the value (after writing off depreciation amounting to £2,181 2s. 4d.) of all Administration assets as at 31st March, 1934, and all liabilities, and shows an excess of assets amounting to £74,448 10s. 3d. TRADE. For the year ended 31st December, 1933, the value of exports was £73,983, and of imports £76,716, showing an excess of imports of £2,733. For the previous year the corresponding figures were exports £73,409, and imports £63,585. Details are printed on page 17, Appendix B. _ The following table illustrates the manner in which the trade of the Cook Islands has dropped during the years of depression : — Year. Imports. Exports. Total. £ £ £ 1920 .. ... .. 177,991 94,697 272,608 1925 .. .. -.■;'•"• 130,609 151,939 282,548 1930 .. .. .. 103,468 109,438 212,906 1931 .. .. .. 69,260 79,945 149,205 1932 .. .. .. 63,585 73,409 136,994 1933 .. .. .. 76,716 73,983 150,699 Copra Trade. —The price of copra has steadily dropped lower and lower until at the present time it pays neither the producer to make it nor the trading firms to handle it. The Northern Islands, where copra is" practically the only export, will be seriously affected unless there is an immediate improvement. As a means of helping the situation the copra-tax has been suspended until 31st March, 1935, when the position is to be reviewed. The following figures for the years 1928 to 1933 show how the value of copra exported from the Cook Islands has declined :— Year. Tons exported. Total Value. Year. Tons exported. Total Value. £ £ 1928 .. .. 1,770 33,071 | 1931 .. .. 1,546 11,677 1929 .. .. 2,020 28,648 | 1932 .. .. 1,294 12 340 1930 .. ..2,143 23,478 | 1933 .. .. 1,545 13,513 Pearl Shell. —Efforts are being made to revive the pearl-shell industry at Penrhyn and Manihiki, but at present the position is doubtful. Orange Trade. —The embargo against Australian fruit should have the effect of assisting the Cook Islands orange trade, and producers have been encouraged to put a great deal of work into the scientific cultivation of their citrus plantations. For the coming season there are prospects of a good crop at Rarotonga, but reports from Group Islands indicate a light yield. Bananas. —So far as the banana trade is concerned, the position is not encouraging, as prices to producers continue to be low in spite of the voluntary quota system of supplies to New Zealand markets in force. Tomatoes. —Last season was a disastrous one for tomato-growers, as, owing to adverse weather conditions, a large proportion of the crop was lost. The export was 17,700 cases as against 54,200 cases for the previous year. Heavy plantings are expected for the coming season. Shipping. —The Cook Islands fruit trade will always be under a very severe handicap until ships with insulated space are provided for the service. A reduction in freights is also long overdue. Exports. —The following table shows the value of our main exports over the last seven years :—

4

' Public Health. ! Education. Services'" Total. £ s. d. £ s. d. £ s. d. £ s. d. Payments (including capital expendi- 8,411 16 9 8,875 10 2 25,527 16 8 42,815 3 7 ture) Grants received from New Zealand .. 5,000 0 0 6,013 0 0 .. 11,013 0 0 Found by Cook Islands Administration 3,411 16 9 | 2,862 10 2 25,527 16 8 31,802 3 7

1927. J 1928. 1929. 1930. 1931. 1932. 1933. Citrus fruits (Cases) 123,021 i 142,315 106,187 128,196 82,740 85,593 92,752 Bananas „ 45,470 ! 47,410 51,026 53,493 55,769 62,390 47,494 Tomatoes „ 41,080 51,955 52,685 30,263 34,750 54.218 17,737 Copra (Tons) 1,676 1,770 2,020 2,143 1,546 1,294 1,545