A.—3,

The small quantity of mother of pearl shell which has been exported for the past twelve months is due to the fact that the low price of shell in London offers little inducement to trade in this commodity. There is an abundance of mother of pearl shell in the lagoon, and, in order to encourage the industry, the Administration has since 1928 thrown both lagoon reserves open for both machine and naked diving. Nevertheless the amount of shell being exported is negligible on account of the low price offering due to the fact that there is practically no demand in London for the black edged shell produced in Penrhyn and Manihiki. As to pipi pearls this industry has declined for some considerable time on account of the poor prices obtainable in London and on the Continent, as supplies of pearls from other fisheries throughout the world, and also the competition from culture pearls, have decreased the demand for the pipi pearls. Planting of Lands. —During the year the people paid a great deal of attention to the cleaning and planting of their lands. New breadfruit-trees, coconuts, bananas, taro, maniota, and puraka plants were planted. The Island is well planted with coconut-trees and the lagoon abounds with fish, so that the inhabitants have a plentiful food-supply. Public Works.—The stone breastwork above the waterfront at Omaka, which was destroyed by heavy seas, has been rebuilt. The breastwork at the Village of Te Tautua has been put into good repair, and extended. The four 5,000 gallon water-tanks at Omaka and Te Tautua have been kept clean and in good repair. Roads have been kept in good order. The Residency and Government Buildings have been kept in good repair and painted. High Court. —There has been an entire absence of any serious ofEences, and during the year only forty-seven informations for breach of regulations and the local Ordinances were laid, resulting in forty-four convictions, and the infliction of small penalties. Island Council. —Three meetings of the Island Council were held during the year, and matters aSecting the welfare of the Island were discussed and satisfactorily decided upon. Taneo Vaevae was appointed to the Council in place of Hare, an old and respected member who died in 1934. Schools. —At the London Missionary Society's subsidized schools at Omoka and Te Tautua work and attendances throughout the year were satisfactory. Rolls are —Omoka, 67 ; and Te Tautau, 52 : total, 119. Rat Pest. —By means of systematic trapping for the last few years the rat pest has been successfully coped with. General.—Mr. S. J. Smith, Secretary for the Cook Islands, visited the Island in the N.Z.G.S. " Matai " on the 11th and 12th March last. H.M.S. " Dunedin " made a call on 24th July, 1935. PUKAPUKA. The following are extracts from the report of the Resident Agent at Pukapuka. Owing to lack of communication on account of the hurricane season, this report is for the twelve months ended 30t.h September, 1935. Health. —For the year under review health conditions have been quite satisfactory. Mr. S. J. Smith, Secretary for the Cook Islands, accompanied by Dr. Ellison, Chief Medical Officer, paid a short visit in the N.Z.G.S. " Matai " on 15th March, 1935, when en route to Fiji to disembark the Cook Islands lepers. H.M.S. " Dunedin " visited the Island on 25th June, 1935, and H.M.S. " Diomede " on 29th July, 1935, and in each case the Surgeon Commander, in the short time at his disposal, attended to urgent cases. Vital Statistics: Births —males, 13; females, 8; total, 21. Deaths —males, 11; females, 2; total, 13. Marriages, 7. Trade. —Owing to Apia being a port of entry for Pukapuka, and to the fact that the only trading store for some years was owned by Burns, Philp, and Company, there was again this year no direct communication with headquarters at Rarotonga. Now that this store has been closed it is hoped that it may be possible to have Apia cut out as a port of entry, so that trade and communication may be opened up again direct with Rarotonga. The advantages are obvious, and we would also be free from the risk of having the rhinoceros beetle introduced. Trade this year has been maintained by the schooner " Makoa " which made two trips and shipped 78| tons of copra which is a drop on last year's figures due to the low price being paid to the producer High Court.— There were seven sittings at which seventy cases, involving only minor offences, were dealt with, and forty-three convictions recorded. Police. —The Native constables carried out their duties satisfactorily. Puluata, an old member of the Force, died on 30th March, 1935, and Beni, an Island Council Member, appointed to the vacancy. Island Council. — Six meetings were held during the year, when various matters of interest to the Island were discussed. Owing to the resignation of Beni, Tamuta was appointed a member of the Council. School. —The roll at the end of the year was ninety boys and fifty-eight girls. Pupils attended regularly and made satisfactory progress.

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