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COOK ISLANDS. REPORT OF RESIDENT COMMISSIONER. Sir, — Cook Islands Administration, Rarotonga, sth June, 1913. I have the honour to report as follows for the year ended 31st March, 1913. Finance. The year was commenced with a balance in hand of £4,151, of which £2,000 had been set aside in former years as an insurance fund against possible hurricane or other disaster. The revenue for the year was £9,420, showing an increase over 1912 of £496. The expenditure amounted to £11,508, being in excess of that for 1912 by £2,078, and exceeding the estimated expenditure by £2,527. £4,362 was expended on public works, while the contingent accounts and Hospital Account together absorbed £2,653, the latter being £459 in excess of the estimated expenditure, and £648 in excess of the previous year. The Contingencies Account was swollen by the necessity of a Land Court Judge attending from New Zealand. I append copy of report of Mr. W. J. Stevenson, which shows fully the receipts and expenditure. Public Works. I append copy of report of Mr. H. M. Connal, Government Engineer, which shows that several important works were successfully carried out or being proceeded with. The system of road-maintenance is, in my opinion, very unsatisfactory. The present law as to free labour being given by Natives under the direction of the Arikis produces very little real work on the roads, and I think it would be preferable to institute a tax for the special purpose, and have the work done by contract or by paid labour supervised by the Engineer. Fruit Industry. I attach copy of report of Mr. G. Esam, Fruit Inspector, who has been transferred to New Zealand, and whose place has been filled by Mr. E. A. Reid, who, having on a previous occasion filled the same position on the island, is no stranger to the needs of the fruit industry. The Administration has acquired an area of land which by the expenditure of a considerable sum thereon on very necessary drainage will be well suited for the purpose of agricultural experiments, and these, I hope, under the conduct of Mr. Reid, will prove an advantage to growers and exporters, both Native and European, and will, I trust, arouse the Natives from their apathy. Europeans are eager to secure land, but the Natives are reluctant in granting leases, and yet they do little or nothing to improve their lands and make them more productive. Some severe means of compulsion will have to be adopted, otherwise Native lands will rapidly degenerate into mere jungle, and the export of fruit rapidly decrease. It is only due to the extraordinary natural productiveness of these islands that exports have reached their present high level, but the figures only remotely indicate the possibilities under systematic cultivation. Water-supply. Water has now been laid on to all the settlements in Rarotonga, except Muri and Titikaveka, and provision has been made to convey it to Titikaveka this year ; and, I hope, next year will see Muri also supplied, after which funds will be available for much-needed improvements in other islands. In Aitutaki bores have been successfully put down, resulting in a good supply of wholesome water. The Islands of Manihiki, Rakahanga, Penhyrn, and Mangaia are now all provided with large concrete tanks, meeting the requirements of the inhabitants. Atiu. The year has seen the completion of a road round the island, eighteen miles in length, constructed under the supervision of Major J. T. Large, Resident Agent, by free Native labour. This will greatly facilitate the conveyance of produce to the wharves from every part of the island. Health op the Islands. The vital statistics show the population of the Group as a whole increases slightly, but in three districts in Rarotonga, one village in Aitutaki, and in the Islands of Manihiki and Rakahanga deaths exceeded, births in number. In the whole Group the excess of births over deaths was only sixty during the year 1912. The report of the Chief Medical Officer is appended. Appended hereto are also two reports by Dr. A. R. Maclurkin, Assistant Medical Officer, who visited the Islands of Mangaia and Aitutaki. These reports show that frequent medical visitation and supervision is imperatively necessary, owing to the great amount of disease among the Native inhabitants, largely due to their neglect and apathy as to cleanliness and sanitary matters. In my opinion a third Medical Officer should be appointed, who would visit each island as opportunity offers, staying at each some weeks. This would involve an expenditure at present beyond the means of the Administration, and I must leave the matter to the consideration of Cabinet as to whether assistance in this pressing need can be given to the Administration.