3

A.—4

7. Communications. — Both sea and land communications arc bad, but your approval of the Government steamer " Lady Roberts " being transferred to Samoa will supply a great need and give satisfaction to the residents. Wireless telephonic communication between the islands is an urgent necessity, but it is hoped that a wireless set will be, installed between Savai'i and Apia this year. The Apia telephonic system is extremely bad, but the provision of a new system must wait till the more important public works have been carried out and the financial position improves. 8. Finance. —Every effort is being made to reduce expenditure and to carry out the Administration as economically as possible. The outlook for the present year is good, but lam of the opinion that New Zealand will not be able to carry out its obligation under the Mandate, particularly in regard to improving the education and medical services for the Natives, without granting financial assistance to Samoa for some time to come. 9. Crown Estates. —Samoa has weathered the post-war period of financial adjustment and depression remarkably well. To a considerable extent this is due to the determination of the New Zealand Government to maintain and improve the Samoan Crown Estates. These estates, representing German plantations assumed under the Treaty of Peace, are scattered all over Samoa, and had been allowed to become " run down "in condition. Their assumption and management in the early stage was an expensive matter, and in addition the prices for tropical produce have been, and in the case of rubber and cocoa still are, considerably below cost of production. Inevitable loss hits occurred, but there is some compensation for this loss in the consideration that the economic structure of Samoa would have been seriously impaired had they been abandoned. A considerable amount, of development has been carried out, and should produce rates return to a profitable figure their value should prove to have increased. The future of these plantations is receiving my consideration. George S. Richardson, Administrator.