A.—4.

Native Affairs. Statutory recognition is given to the Faipule, Native representatives who meet in Fono and confer with the Administrator in an advisory capacity. For the purposes of this representation the Territory is divided into thirty-three districts, each district is invited by the Administrator to submit the name of a representative, and the person so selected is then confirmed in the appointment of Faipule for a term of three years, when further nominations are invited. Until recently the Administrator had the benefit, also, of the advice of two Native Chiefs of the highest standing, the Honourables Malietoa, 0.8. E., and Mataafa, 0.8. E., who were the nominated Native members of the Legislative Council. In this connection it is with regret that the death of the Hon. Mataafa on 29th February, 1936, is announced. All matters concerning the Samoan people are placed before the Fono of Faipule, and no action regarding legislation or procedure affecting the Samoans is taken without its concurrence. Native administration is effected through representatives of the Native Affairs Department in Apia and Tuasivi, three district officers, and through district and village Native officials, who are paid small salaries by the Administration. The European staff of the Department has recently been augmented by the arrival of a second University graduate who is being trained in Native administration. The services of the few remaining Pulefa'atoaga (Lands Inspectors) have been dispensed with, and their duties are now carried out by the Pulenu'u and village chiefs. The change has resulted in the number of Pulenu'u being increased by twelve to 127. The new system appears to be functioning satisfactorily. The Samoan race is divided like a clan into families, aiga, which again are split into groups or branches. At the head of every family is the matai, or head of his branch of the family, which may include his younger brothers, dependent relations by marriage, and adopted children. The word " chief " is synonymous with matai, although not bearing the same meaning as in Fiji and Tonga. A Samoan " title " is the family name to which a matai succeeds upon assuming his matai position. This is conferred upon him usually by the immediate members of his family, though the ramifications of those possessing the power of conferment differ in almost every case. Succession is not always hereditary ; it is often bestowed as a reward for good service to the preceding holder. The matai receives service from the members of his family, whom he controls in patriarchal style, conferring with them in all matters, and in particular he may not deal with the family land without their consent. Every matai is admitted as an elder into the ruling body of the village, which may include from four to perhaps eighty matai, although there are accepted positions of precedence among them. The Pulenu'u of the village is appointed by vote of the matai and confirmed by the Administration of which he becomes a paid servant; he may be removed from his office at any time by request of the chiefs, and this is done occasionally. The terms " village ruler " and " village headman " have passed out of existence, for experience has shown that the Pulenu'u should not supersede but rather cooperate with the ruling body of matai; he is Government representative in the village, to make known to the people any Government activities or laws they should know, to notify births, deaths, and appointments of matai, and to provide accommodation for Government officials, European or Native, who may be travelling in his district. He does not rule the village, nor is he the head of it except where his chiefly rank in his own right entitles him to that position. Trade. The trade turnover for 1935 shows a total of £325,055, as compared with £220,901 for the previous calendar year, an increase of over 47 per cent. This satisfactory condition is due mainly to a decided increase in the price of copra. Exports during the year exceeded those of 1934 by 3,500 tons. Banana shipments created a new record, 109,000 cases being exported, while the price to growers remained at 4s. 6d. per case. Finance. The financial year closed with a surplus for the year of £11,130, detailed particulars being given in the chapter on Public Finance. Persons of Part Samoan Blood. Every endeavour is made by the Administration to safeguard the interests of that comparatively large portion of the community which is of part Samoan blood. Considerable use is made of such persons in the Administration Service, and in private employment, while a special endeavour has been made to throw open for settlement by this class of citizen suitable areas of Crown land, of which there is ample available, and as the value of tropical products improves it may be expected that this avenue of activities will become increasingly popular. Those part Europeans who possess land are assured of a home and food, and in that respect become as independent as the Samoans, while Samoan custom ensures that even those without land are supplied with all the necessities of life by their Samoan relatives. To meet the case of those whose blood is predominantly Samoan, provision has been made in the Samoan Status Ordinance, 1934, for reversion to Samoan status where they so desire, for instance, to resume their rights to Native lands. There is no special problem concerning women of part Samoan blood. Visits. A visit was paid to the Territory on the 4th June, 1935, by His Imperial Japanese Majesty's ships " Asama " and " Yakumo," under the command of Rear-Admiral K. Nakamura. Calls were made at Apia by H.M.S. " Dunedin " in June, and by H.M.S. " Diomede " and H.M.S. " Leith " in August, while on their annual cruises through the islands of the South Pacific.

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