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Post Office. The usual services have been maintained at Rarotonga and at all the post-offices throughout the Group. Telephone Services.—During the year the telephone system gave every satisfaction. No serious interruption of any sort occurred. Reconditioning of lines was undertaken, and equipment renewed when occasion warranted. On the whole the service given to subscribers throughout the year has been of a high standard. Mail-services. —The regular mail-service with New Zealand and the various Islands included in the itinerary of m.v. " Matua " throughout the year was carried out without difficulty. Mails were exchanged with all offices in the Group when opportunity offered. Post Office Savings-bank.—The summary of transactions in this branch is as follows £ s. d. Deposits, ordinary 21,535 4 1 Withdrawals, ordinary .. ■■ •• , y Excess of withdrawals over deposits .. .. ■ • £438 2 9 The total amount at credit of depositors on 31st March, 1939, was £28,609 9s. Id., being £411155. 3d. in excess of the figures for the previous year. Savings-bank Accounts — Savings-bank accounts opened during the year .. .. . ■ 329 Savings-bank accounts closed during the year .. .. - ™ Total number of accounts open .. •• •• ..1,891 (An increase of 234 new accounts opened during the year.) Savings-bank Telegrams : Since the inauguration of the system of withdrawing money by radio from the savings-bank at Rarotonga by those depositors in the Cook Group resident at Islands where branches of the savings-bank are situated, ninety such transactions have taken place, demonstrating that the privilege is appreciated and is a benefit to the public generally. Postal-notes. —Number of notes issued, 1,350 ; value of notes issued, £579 17s. sd. Money-orders. —Issued: Number, 1,693 ; amount, £37,150185. lOd. Paid: Number, 317 ; amount, £3,725 2s. 3d. ..... A considerable reduction in the cable and radio rates between British Empire points came into force in September last, but as 99 per cent, of the radio traffic is with New Zealand the new rate will not affect the revenue to any extent. Cook Islands Postage and Revenue Stamps.—Total sales (all sources), £2,473 14s lid. The foregoing figures show a large reduction when compared with the sales for the year ended 31st March 1938 but that period benefited from the sale of " Coronation ' stamps, the record sum of £22,277 bei g received. Radio. There are at present eight radio stations under the control of the Cook Islands Administration. Of these eight, there are five stations in the Lower Group and three in the Northern Group. Rarotonga Radio is the parent station and maintains direct communication with all seven substations, in addition to direct communication with the subsidiary stations, the parent station maintains regular daily schedules with Wellington Radio, Apia Radio, and Suva Radio. With the exception of Rarotonga Radio, which has two Europeans on the staff, and Manihiki Radio, operated by the Resident Agent, all other stations are operated by Polynesians. A subsidiary station will be erected shortly at Palmerston Island, and this station will also be operated by a Polynesian. Lower Group Substations. —Very little difficulty has been experienced during the past year in clearing traffic and maintaining schedules to the Lower Group stations at Aitutaki, Atiu, Mangaia, and Mauke. Northern Group Substations.—Pukapuka Radio : This station did not function during October owing to illness of the operator. Otherwise, schedules have been maintained without difficulty. Penrhyn Radio : The operator at Penrhyn is also Native Medical Practitioner and is called away at times on medical duties. Schedules have been maintained without difficulty. Manihiki Radio : Manihiki was not operating during October owing to the illness of the Resident Agent. The Resident Agent is also radio operator, and his duties require him to visit Rakahanga at intervals throughout the year. During those periods the station was off the air. Rarotonqa-Radio.—Staff : Mr. T. B. Pickering, senior Telegraphist on the staff of Rarotonga Radio, died suddenly in November. Mr. J. D. S. Fahey, of Wellington Radio, was appointed to fill the vacancy. Puri Teariki, who has been temporarily stationed at Pukapuka Radio for a year, returned early in March and is now attached to the staff of the parent station. Ton »a Henry, who was trained at Rarotonga, was transferred to Pukapuka Radio. Medical advice to Resident Agents and nurses in the whole Group amounted to 6,500 words,

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