A.—3.

The balance-sheet takes into account the value (after writing ofl depreciation amounting to £2,195 2s. Bd.) of all administration assets as at 31st March, 1936, and all liabilities, and shows an excess of assets amounting to £72,604 lis. 2d. TRADE. For the year ended 31st December, 1935, the value of exports was £53,599 (£59,307), and of imports £61,676 (£61,449), showing an excess of imports of £8,077. Previous year's corresponding figures in parentheses. Details are printed on pages 25-31, Appendix B. The following table illustrates the trend of trade in the Cook Islands and how it 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 1934 .. .. .. 61,449 59,307 120,756 1935 .. .. .. 61,676 53,599 115,275 Copra Trade. —Although the price of copra has recently shown a rising tendency, fluctuation points to an uncertain market. In 1932 and 1933, the Administration assisted producers by reducing the copra-tax to 10s. per ton, and from Ist April, 1934, to date no tax has been imposed. The following figures for the years 1928 to 1935 show how the value of copra trade in the Cook Islands has varied :— Year. Tons Total Value. Year. Tons Total Value. exported. £ exported £ 1928 .. 1,770 33,071 1934 .. 963 4,899 1930 .. 2,143 23,478 1935 .. 1,353 12,882 1932 .. 1,294 12,340 Of the total of 1,353 tons exported in 1935, 995 tons went to the United States, 234 tons to the United Kingdom, and the balance 124 tons to France. Exports. —The following table shows the value of our main exports over the last seven years :

Prices paid for oranges, bananas, and tomatoes last season were again low, and brought an inadequate return to producers for the labour and expense involved in production. There were very heavy plantings of tomatoes in Rarotonga last season, involving considerable expenditure of capital and labour, in an endeavour to compensate to some extent the hurricane losses of oranges and bananas. Although the bulk of the Cook Island tomatoes were shipped to New Zealand during that part of the year when, the mainland could not supply this crop, it was found that the market easily became glutted, and it was not possible to obtain anything like a payable price. Crop Prospects.—For the coming orange season the prospects in Rarotonga are for a rather light crop, as trees have not fully recovered since the hurricane. In the Lower Group Islands prospects are better and there should be almost an average crop. In the cultivation of bananas a considerable amount of labour is involved, and it will probably be another twelve months before normal crops are available. SHIPPING. Overseas shipping at the Port of Avarua, Rarotonga, for the year ended 31st December, 1935, comprised a total of thirty-five vessels, twenty-six being the San Francisco mail steamers, six the Union Steamship Company's cargo vessels, one local schooner, the N.Z.G.S. " Matai," and one cruising ketch " Te Rapunga." ' MEDICAL AND PUBLIC HEALTH. When the Cook Islands were annexed to New Zealand in 1900—in the interests of the Native people —the Native inhabitants were regarded as a dying race. The population (excluding Niue) was estimated to have decreased from 14,000 in 1823 (when the first missionaries came to Rarotonga) to 8,000 in 1900,

2

1929. 1930. 1931. 1932. 1933. 1934. 1935. Citrus fruit .. (Cases) 106,187 128,196 82,740 85,593 92,752 78,099 48,268* Bananas .. .. „ 51,026 53,493 55,769 62,390 47,494 52,314 22^539 Tomatoes.. .. „ 51,685 30,363 34,750 54,218 17,737 34,545 62,383 Copra .. .. (Tons) 2,020 2,143 1,546 1,294 1,545 963 1,353 * The large drop in exports for the last year was due to the heavy destruction of crops by the hurricane of February, 1935, over 50 per cent, of oranges and over 60 per cent, of the banana crops being destroyed.