A.—4.

4

This system of representation and officials is also additional to and distinct from departmental staffs. With the exception of the Fa'amasino, who are to have jurisdiction as to portions of the civil and criminal code, they are not invested with legal or executive authority, but act in consultative or mediatory capacities. During this year a small Samoan anti-Maw minority has become organized, mainly in Yaimauga East. In this sub-district a majority of the people have never belonged to the Mau, and when the Fono was re-elected in September, 1936, the new Faifule were firmly insistent upon a recasting of Faifule districts which allotted one Faifule for all the Yaimauga District where hitherto there had been two. In June of 1937 the Hon. Malietoa resigned his seat on the Legislative Council, which he had held by appointment from the Governor-General of New Zealand, in response to urgings from the Faipule that all four seats representative of the Samoans should be elective by them. The Faifule proposed to renominate Malietoa to occupy one of the elective seats, but to this he would not agree. The village of Malie, which owes allegiance to Malietoa, joined the new movement. In a letter to the Acting-Administrator in January, 1938, the organization declared " Everything that New Zealand has done for Samoa is good and right," but the villages concerned feel they have been somewhat eclipsed by the Mau majority. The Acting-Administrator endeavoured to arrange a meeting between representatives of the Faipule and of the new movement, in order to compose their differences, but the Faifule considered no good could come of such a meeting, and the movement is likely to continue. It illustrates normal differences in viewpoint, more particularly on the question of allocation of those Government offices which are elective, and has been rather over publicized, as up to the present the new movement does not represent more than 3J per cent, of the Samoan population. Its members wear a lavalava of khaki with a red stripe (which imitates part of the official Police uniform) in contradistinction from the Mau blue and white. There has been no physical hostility between the two factions. The " Book of Laws " mentioned in last year's report (page 2) has not yet been issued, as the Faifule have asked for an opportunity to discuss its contents before it is distributed, but in order not to delay unduly the expectation of the Permanent Mandates Commission as to dissemination of the mandate the contents of this document have been published separately in the Savali, Government paper printed in the vernacular, which circulates to every village. Trade. The trade year 1937 was the best experienced since 1928, the total trade being £620,304, representing an increase of 44-16 per cent, over the previous year's figure of £430,275. The higher trade return was due largely to the good prices for copra and cocoa which ruled at the beginning of the calendar year, and also on account of the increased banana exports, a record number (187,755 cases) being shipped during the year. It should, however, be recorded that the prices both of copra and cocoa have receded considerably from those obtaining at the commencement of 1937. Finance. An examination of the year's accounts discloses an excess of revenue over expenditure of £380. Particulars are given in Chapter YI, " Public Finance." Persons of Part Samoan Descent. The land-settlement scheme to assist local-born persons (of part Samoan blood) mentioned in the last annual report( 1 ) has now been operating successfully for over twelve months, and some of the settlers are benefiting from their early start with bush-felling and clearing, they being now able to provide bananas for export. The course of the next few years should see the settlers fully established on the land producing bananas, cocoa, and vegetables, thus affording a reasonable living for themselves and their families. There is no apparent tendency on the part of the settlers to revert to Native society ; rather, they welcome the opportunity to live in European fashion. The allotments are held on leases of thirty-three years at a rental of 3s. per acre, renewable for two further terms at reassessed rentals. The scheme has proved successful, particularly in dealing with the unemployed problem, and the Administration is opening up a further area of about 650 acres, upon which twenty-two families will be settled during the coming year. Dealing with the question of M. Sakenobe( 1 ) as to the 1936 census record of 898 inhabitants of mixed Chinese-Samoan blood, the enumeration showed that 120 of these people were of European status, and 778 were recorded as Samoans, of whom some 335 were found to have become absorbed into the communal Samoan village life and 443 were living with their parents at the place of employment or extra-village domicile of their Chinese fathers. There is no doubt that the latter also will become assimilated to Native life at adolescence or soon afterwards. With but one or two exceptions, these people do not speak any Chinese language ; some of them individually have the alert and industrious characteristics of their fathers, but they maintain no racial group entity apart from the ordinary Samoan and European-Samoan life with which they merge. There is a considerable affinity between Samoans and Chinese in the fundamentals of life, which helps to explain the facility with which they have intermingled. Visits. During the year the usual annual visits were exchanged between the Governor of American Samoa and the Acting-Administrator. The German Consul for New Zealand (including Western Samoa) paid an official visit in May in connection with the affairs of German nationals.

(!) See minutes of the thirty-third session of the Permanent Mandates Commission, page 54.