A.—6.

Education. Tie special feature of tlie school system is the training of the pupils in all matters which will be of benefit to them and to their people when they return to their villages. The average roll strength of the two Administration schools is 362, with an average attendance of 325. The Technical School handicraft and sewing classes have functioned admirably. The London Missionary Society has ten schools which are subsidized by this Administration. Their work is good and of great benefit. Public Works and Transport. These Departments have in training a number of Niue boys, and it is hoped that the knowledge they are gaining will be of great advantage to both the Administration and private employers. In addition to the practical training they receive they attend special classes conducted by the European Engineer. Roads. —Improvements have been made, but there is still much to do during the next few years before the roads can be considered satisfactory. Water-supply.—The whole supply is obtained from rain, and therefore tanks have to be built near catchment areas. Each year more of these tanks are being built, and those already in existence are kept in repair. The water-supply is still inadequate, but gradually this difficulty is being overcome. Agriculture. Gradual improvements in agricultural methods are being made, though the pace is slow owing to the difficulties which exist. In dealing with Native races it is not advisable or possible to carry out big reforms in a short time. However, the indications are that there is a steady improvement in agricultural matters, and it is believed that the methods used and the experiments carried out at the Administration plantation will be followed by the people. High Court and Native Land Court. No serious offences have occurred, the 634 cases dealt with by the High Court being for minor offences. Ihe Native Land Court has dealt with 126 cases, though many applications still await hearing. Island Council. There are thirteen Native Councillors for the twelve villages, their duty being to assist the Resident Commissioner and advise him on island matters. At an election held recently almost all former Councillors were re-elected by the people. Legislation. No new laws have been made during the year. Wireless. This Department is controlled by a European officer, who also assists with other activities of the Administration. In his wireless duties he is assisted by a Native boy. Traffic Inwards.—Three hundred and twenty-nine messages, containing 5,321 words, were received, as compared with 351 messages, containing 6,661 words, for the previous year. Traffic Outwards. —Three hundred and ninety-two messages, containing 6,746 words, were despatched, as compared with 469 messages, containing 7,781 words, for the previous year. Meteorological. The total rainfall for 1937 was 53-70 in., which is 27-57 in. less than the average for the last thirty-two years. Shipping. The New Zealand Government vessel " Maui Pomare " has called regularly, providing the only regular service between this island and the outside world. Vital Statistics. The Native population is now 4,215, an increase of 84 for the year. Births, 152 ; deaths, 80.- •

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