A.—4

ANNUAL REPORT BY THE ADMINISTRATOR FOR THE YEAR 1924-25. I. TRADE. I have the honour to report that the past year has apparently marked the turning-point from the economic depression which Samoa, in common with the rest of the world, has experienced for several years, and which reached its lowest level in 1923, as shown in the following graph.

Total Trade Values (Calendar Years).

It is satisfactory to note that this improvement in trade was effected far more by increased production than by the enhanced market values, the volume of both the main exports—copra and cacao—being in excess of the previous year. The output of copra for the past three years has considerably exceeded that for any similar period in the history of this Territory—a sure indication not only of the increasing prosperity of the European population, but also of the progress and steady development of the Native race, which produces 75 per cent, of the total output and provides practically all its own needs from the proceeds of this crop. The increase in the production of cacao has been most marked—viz., from 399 tons in 1923 to 957 tons last year —an amount very little short of the total produced in the record year. Most of this cacao is produced from the New Zealand Government plantations, which were leased last year. It can therefore be assumed that planters have during their first year of lease been able to prove that these plantations are a good investment. The care taken to grade all cacao for export has already produced good results, and it is anticipated will increase the demand in the world's markets for the very high quality of cacao which is grown in Samoa. Every possible effort is also made by laws and Native regulations to produce a high grade of Native-dried copra, and considerable improvement in the quality has resulted. The market values of the main products are at present fairly good, and the outlook is promising, as is also the outlook for visible crops. The balance of trade being also on the right side, to the value of £87,000, enables me to confidently predict that the present year also will be a prosperous one for Samoa.

2