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Buildings and Equipment. —All buildings have been kept in a good state of repair. At Atiu concrete floors were laid down in the three buildings, and one was rebuilt with a permanent roof and walls. A concrete tank with a capacity of 2,500 gallons was built, so that the school now has a satisfactory water-supply. Methods of Teaching. —Changes and improvements in methods of teaching, have been put into practice. With Native teachers, this is necessarily a slow process, but the new methods are showing promise. Teachers are enthusiastic and have spent a great deal of time at the making of teaching apparatus, of which a very fair stock has been built up. Changes are more noticeable in the lower .classes, which have now a brighter and happier outlook. In several schools the teachers are voluntarily devoting one afternoon each week to the preparation of teaching-material. Classes for Native Teachers. —These have been reorganized with a view to improvements in academic standard and in teaching ability. Classes to improve academic attainments are held on one afternoon weekly by the various European Head Teachers, and Titikaveka and Ngatangiia have been grouped for this. A syllabus covering the requirements for the Student Teachers' Examination has been issued, but plans for the first examination in September last had to be abandoned owing to the measles epidemic. Native teachers are so eager to improve that in several schools extra voluntary classes are being held. Classes in methods of teaching have been instituted on one afternoon each week at Avarua for Avarua and Arorangi teachers and on one afternoon a week at Titikaveka for Ngatangiia and Titikaveka teachers. These classes are taken by the Organizing Infant-mistress and the Education Officer. Health. —The health of the children throughout the year has been good. All schools in Rarotonga, and Araura School, Aitutaki, were examined by the medical officers. It was unfortunate that a measles epidemic should have occurred. Measles were most prevalent at Rarotonga, although Aitutaki, Atiu, Manihiki, and Penrhyn were also affected. Schools on the affected Islands were closed from 3rd July until 3rd October, thus curtailing considerably the school year, with a corresponding detrimental effect upon educational work. Dental. —As there was no dentist, work at the school clinic was discontinued during the year. A dentist has now been appointed, and dental treatment will again be carried on. Public Works. Roads. —The main road has been kept in good order. Tapere (subsidiary) roads have been maintained by voluntary labour from the districts concerned. The Administration supplied food and assisted with trucks. Bridges and Cidverts. —All bridges and culverts were attended to during the year. A new bridge over the Takuvaine Stream was erected in place of the old bridge, which was swept away in a flood in 1936. Water-supply. —All supply systems to the various villages have been maintained in good order. A portion of the Takuvaine 6 in. main was renewed. Buildings.—All Government buildings have been repaired and renovated and most of them have been repainted during the year. Transport.• —All Administration vehicles were kept in good running-order. Agriculture. Citrus. —Due to the pruning that was carried out in 1937 and 1938, the citrus trees in Rarotonga are putting on new growth, which accounts for the very light crop forming at present. Great difficulty is still experienced in inducing the majority of growers to take the trouble to prune their trees, even though the results obtained are obviously beneficial. Pruning did not start as early as had been arranged, owing to the outbreak of measles. The system of cutting out the dead wood was carried out in the same manner as last year. Twenty-nine thousand five hundred and fifty-two cases of oranges were exported from Rarotonga. Reports from New Zealand stated that shipments arrived in a generally bad condition, the waste being as high as 30 per cent, in some shipments. The greater portion of this waste was caused by stem-end rot. During the year experiments were carried out with ethylene gas and debuttoning for the control of stemend rot. Although these experiments were not conclusive, the fruit treated showed considerably less stem-end rot than fruit which was not treated, and it is proposed to extend this treatment throughout the Group. The work at the Takuvaine Nursery is being carried on successfully. Five thousand seedlings were sent to Aitutaki during December, and these were planted out under the supervision of Mr. Reid, the Acting Resident Agent. Five thousand budded citrus plants at the Takuvaine Nursery—which number is sufficient for 50 acres —are progressing well, and should be ready for distribution at the end of the present year. A further supply of seed was sown at the Ngatipa seed-beds. Bananas. —Banana-planting was delayed for some time, but the folly of not planting was pointed out to growers, with the result that approximately thirty-three thousand shoots in excess of last year's figures have been planted. In July the system of inspection at the wharf was introduced.

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