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The method of appointing a Faipule is now as follows : When a vacancy occurs the Administrator requests the Ali'i and Faipule (chiefs and Tulafales) of the district concerned to submit the name of the chief they wish to nominate. These chiefs hold fonos and discuss the matter, and very often take a long time to come to a decision. By this means the wishes of the people are considered as fully as possible, and the Faipule is truly representative of all his people and has the authority to speak on their behalf. In the event of these chiefs failing to reach unanimity in their selection of a nominee, they submit two or more names to the Administrator, who appoints one of them as Faipule. Up to the present the chiefs of each district have always agreed on their nominee, so that it has not been necessary for the Administrator to decide as between two or more names. IV. EUROPEAN LANDS. (See diagram, page 10.) Development during the year has been limited to the cleaning of 800 acres of bush land for planting coconuts, and the bringing into use of the abandoned rubber plantations. A few applications have been received from local private planters to lease additional areas of bush land for further development. V. RUBBER. All but one of the rubber plantations are now being worked. The amount of rubber produced last year was 41 tons, and it is estimated that over 150 tons will be produced during the present year. Only Chinese labour is employed on these plantations, with the exception of 100 acres of rubbertrees which have been set apart by the Administration and leased for a nominal rental to a Samoan chief, with a view to giving an opportunity to Samoan Natives to learn the cultivation and production of rubber. VI. CHINESE LABOUR. The total number of Chinese labourers in the Territory at the present time is 946, in addition to which there are 155 Melanesian labourers from the Solomon Islands, who were in the country prior to British occupation and who do not wish to be repatriated. During the past year 112 labourers have been repatriated and 180 new coolies imported from Hong Kong. The additional number of Chinese were required for work on rubber plantations, for which Samoan labourers were tried but proved unreliable. The Chinese labourers have, as a body, maintained their reputation for good behaviour and reliability as plantation workers, and they appear to be thoroughly satisfied with their conditions of pay and labour. On the other hand, the European Planters Association, which does not include all the Planters of this Territory, have complained of the heavy cost of labour, and have urged the Government to endeavour to import cheaper labour. The Administration is unable to support the contention that the plantations cannot be made to pay at the present costs of labour, for a number of private planters are able to succeed under existing conditions, while experiences on the New Zealand Government plantations, which are practically all making profits, go to prove that the successful running of plantations depends more upon skilful organization and proper supervision of contented labourers than upon a plentiful supply of so-called cheap labour. The present wage of 3s. per diem for Chinese coolies is a reasonable wage for a daily task, and cannot in fairness to the labourers be reduced. VII. PUBLIC WORKS. The programme of public works for last year was not quite completed, but other works were carried out —viz., the building of a technical school and engineering workshop in Apia. The following programme has been authorized to be carried out as far as possible within the next financial year, viz. :— Water-supplies for Native villages : Complete the requirements for concrete cisterns in Savaii and Manono ; pipe-lined supplies in five districts—viz., Lealatele, Falelatai, Salailua, Mulifanua, and Vailele. Buildings : New maternity ward at Apia Hospital ; new export shed at the Apia Wharf. Roads and bridges : Extension and improvements of roads at Safata, Mulifanua, and to the wireless station, and a few small bridges ; new hydro-electric installation for Apia, referred to in last year's report. New telephone system for Apia and suburbs. VIII. EUROPEAN COMMUNITY. Legislative Council: The triennial election for three members to represent the interests of the Europeans in the local Legislative Council was held in November last, and resulted in the return of the former members. Taxation : Direct taxation from European sources supplies only 6-8 per cent, of the total revenue. Details are shown in the estimates under " Revenue," heads II and 111, and in the Taxation, Licensing, and Revenue Ordinance, 1921, and its amendments. European boys : In order to help the comparatively large number of European boys of mixed descent who are being educated in the schools of Apia, and for whom there are not only very limited opportunities for local employment, but practically no facilities for training to qualify as skilled tradesmen, the New Zealand Government authorized the building of a well-equipped technical school, which was completed in December last. The instructional staff is composed of qualified officials of the Administration, who give their services gratuitously. This institution should be the means of helping these boys to learn trades and so fit them to obtain employment in New Zealand or elsewhere. IX. ADMINISTRATION OFFICIALS. Efficient service has been rendered by the staffs of all Departments during the past year. A good proportion of the officials have been in the Samoan service for some years, and have increased their efficiency through knowledge of local conditions. Locally born youths are appointed to the service whenever nossible.

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