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Pages 1 to 20

Pages 1 to 20

Pages 1 to 20

Pages 1 to 20

H.—44,

1937. NE W ZEALAND.

DEPARTMENT OF INDUSTRIES AND COMMERCE (TWENTIETH ANNUAL REPORT OF THE).

Presented to both Houses of the General Assembly by Command of His Excellency. Your Excellency - Wellington, 30th September, 1937. I have the honour to submit for your Excellency's information the report of the Department of Industries and Commerce for the past year. I have, &c., D. G. Sullivan, Minister of Industries and Commerce. His Excellency the Governor-General of the Dominion of New Zealand. g iE _ Wellington, 6th September, 1937. I have the honour to submit the annual report of the Department of Industries and Commerce. This report deals with the work of the Department since the previous report was placed before Parliament, and covers generally the period ended 30th April, 1937. In certain instances, however, matters subsequent to that date are also referred to. I have, &c., L. J. Schmitt, Secretary. To Hon. D. G. Sullivan, Minister of Industries and Commerce.

I —H. 44.

H,— 44.

INDEX TO CONTENTS. Overseas Trade—• General Trade Review— PAGE NO. Exports Imports United Kingdom Australia 7 Canada 8 United States of America ...... British West Indies ........ South America .. 13 Island Trade— Fiji .. 13 Western Samoa 14 » Cook and Niue Islands ... Jo Tonga .. 15 Continent of Europe 16 East .. 17 Japan . . IS Trade Agreements ........ New Steamship Lines ....... jg Overseas Trade Representation ........ jg Exhibitions Overseas . ' • '' '' ■• • • • • ■• .. 20 Imperial Economic Conference ........ 2] Empire Chamber of Commerce Federation ........ *■ •• • • • . Stores Control Board . . 21 New Zealand Manufacturers' Federation ...... 21 Manufacturers' Associations 21 Statistics relating to Manufacturing Industries ...... . )9 Cost of Living, Prices, and Control .. 24 Bureau of Industry— Industrial Efficiency Act, 1936 ........ Functions of the Bureau of Industry .. .. . . g. Members of Bureau of Industry ...... or Meetings held .. 25 Summary of Work undertaken .......... 25 Retail Sale and Distribution of Motor-spirit .... 26 Fishing Industry ........ 2 g Appeals Ji • ■' •• •• •• •• .. ..26 Plans of Re-organization— Flax Industry .......... Pharmacy ........ gg Kauri-gum Industry .......... 27 Manufacturing Industries .......... 27 Preparation of Hides for Export .. .. . , .. _. 27 New Industries 27 Financial Assistance to Industries ....... 27 Value of Bureau Organization s V

2

H.—44

PAGE NO. Visit of Hon. W. Nash to United Kingdom, &c. .. . .. .. ■ • • • .. 27 Wheat, Flour, and Bread .. . . .. • ■ • ■ • • • • ■ • • • .. 28 Tobacco-growing Industry . . . . • • ■ ■ • • • • .• ■ • • ■ • .. 28 Onion-growing Industry .. .. ■ • ■ • ■ • • • ■ ■ • • • • .. 29 Investigation into Marketing and Handling of Fruit and Vegetables .. .. .. .. .. 30 Raratongan Fruit Inquiry .. .. • ■ • • ■ ■ • • • ■ • • ■ • .. 31 Woolpaeks .. . • • ■ • • ■ • • • • • • • • • • ■ .. 31 Sea Fisheries .. .. • • • • • • • • • • • • • • ■ • .. 31 Cement .. ■ • ■ • ■ ■ ■ • ■ • ■ • • • • • • • • • .. 32 Timber .. .. ■ • • • ■ • ■ • ■ • • • • • • • ■ • .. 32 Petrol . . ■ ■ ■ • • • • ■ • • • • • • ■ • • • • • • • 32 Board of Trade (Fertilizer) Regulations . . . • ■ • • • ■ • • • .. 32 Gas Regulations .. . . • • • ■ • • • ■ • ■ • ■ • ■ • . . 33 Chattels Transfer Act, 1924 .. • • • ■ ■ • • • ■ • • • • • 33 Trading Coupons Act, 1931 ■ • ■ • • • • • ■ • • • • • • ■ . . 34 Motion-picture Industry . . .. • • • • • • • • • • • • • • .. 34 New Zealand Centennial . . .. • . • • • • • • ■ • ■ • • • .. 34 New Zealand Standards Institute .. .. • • • • • • • • • ■ • • .. 35 Publications .. .. • • • • , • • • • • • • • • • • • .. 35 Miscellaneous Activities .. . • • ■ • • • ■ • • ■ ■ ■ • • • .. 35 Conclusion . . • • • • • • ■ • ■ • ■ • ■ • ■ • • • .. 36 Appendix : Statistics and Comments relating to Manufacturing Industries .. .. • ■ .. 36 GENERAL TRADE REVIEW. As has been the practice for some years, a brief review is made of the overseas trade of New Zealand for the past calendar year. For the year ended 31st December, 1936, the value of exports from the Dominion was £56,751,940, as compared with £46,538,678 for the year ended 31st December, 1935, an increase of £10,213,262. Imports for 1936 aggregated £44,134,326, as against £36,287,544 in 1935, an increase of £7,846,782. The total exports are the highest ever recorded. The foregoing figures are exclusive of specie, exports of which during 1936 amounted to £45,245, as compared with £521,000 during 1935. Specie imports during these two years were £36,601 and £381,821 respectively. All figures are shown in terms of New Zealand currency, which since early in 1930 has been at a discount on sterling. Specie is given at its face value.

External Trade (excluding Specie).

It is interesting to note that on only three occasions has the excess of exports over imports exceeded the figure for 1936, while the total external trade of the Dominion has exceeded £100,000,000 previously on only five occasions. V

3

] Total External Excess of Year ended Exports. Imports. 31st December, , Trade. Exports. ____ J £(N.Z.) £(N.Z.) £(N.Z.) I £(N.Z.) 1927 48,496,354 44,782,666 93,279,020 3,713,688 1928 .. 55,570,381 44,844,102 100,414,483 10,726,279 1929 54,930,063 48,734,472 103,664,535 6,195,591 1930 .. .. 44,940,517 44,339,654 89,280,171 600,863 1931 .. .. 34,950,698 26,498,151 61,448,849 8,452,547 1932 .. .. 35,609,919 24,646,006 60,255,925 10,963,913 1933 41,005,919 25,581,366 66,587,285 15,424,553 1934 .. .. 47,342,847 31,339,552 78,682,399 16,003,295 1935 46,538,678 36,287,544 82,826,222 10,251,134 1936 .. .. 56,751,940 44,134,326 100,886,266 12,617,614

H.—44,

Exports. The table hereunder sets out the quantities ancl values of the principal commodities (excluding specie) exported from New Zealand in each of the past two calendar years : —

Principal Exports (excluding Specie).

The 1936 figures reveal increases over 1935 in quantities and values of exports of butter, chilled beef, rabbit-skins, wool, kauri-gum, Phormium tenax, apples, and milk (dried and preserved). There was a smaller quantity of frozen mutton and beef exported, with a corresponding lower aggregate return. Values of cheese, hides and calf-skins, and pelts improved considerably, while there was a decrease in the return for sausage-casings, although an increase in quantity occurred. The most notable increase in both quantity and value was that of wool, in which commodity the quantity exported increased by almost 50 per cent., and value by upwards of 80 per cent. The direction of our export trade in 1936 is disclosed in the following table, which shows also the percentages of total exports to such , countries. For comparative purposes figures for the three previous years are also given :—

Direction of New Zealand's Export Trade, with Percentages of Total Exports.

4

1935. 1936. Item. Quantity. Value. Quantity. Value. £(N.Z.) £(N.Z.) Butter.. .. .. Cwt. 2,789,298 13,616,740 2,796,145 15,317,576 Cheese.. .. .. „ 1,727,552 4,376,512 1,658,206 5,122,438 BeefChilled .. .. „ 110,247 188,511 240,433 382,469 Frozen „ 707,339 791,200 495,564 607,378 Lamb, frozen .. .. „ 2,605,526 8,184,521 2,603,805 8,417,209 Mutton, frozen .. .. „ 1,025,305 1,837,600 883,844 1,672,522 Hides and calf-skins .. No. 1,788,003 685,873 1,608,789 761,511 Rabbit-skins .. .. ,, 13,536,745 395,090 16,928,931 763,961 Pelts .. .. .. „ 11,765,293 894,181 10,847,249 1,245,993 Wool .. .. .. Bales 647,801 7,096,873 909,132 13,293,583 Tallow.. .. .. Tons 25,277 630,638 26,095 628,310 Kauri-gum .. .. „ 2,872 79,113 3,237 96,961 Gold .. .. .. Oz. 172,779 1,452,940 168,914 1,404,973 Sausage-casings.. .. Lb. 4,192,001 787,261 4,416,070 641,393 Phormium tenax .. Tons 4,101 57,553 5,707 106,942 Apples.. .. ..Lb. 37,790,819 467,422 44,806,173 552,902 Grass-seed .. .. Cwt. 71,649 215,738 69,290 197,022 Timber .. .. Sup. ft. 39,585,198 364,359 26,993,334 265,108 Milk (dried or preserved) .. Lb. 20,783,080 370,890 23,742,354 405,801 Other items .. .. .. .. 4,056,813 .. 4,868,688 Total exports .. ... .. 46,538,678 .. 56,751,940

1033. 1934. 1935. 1936. ... Yalue - centage. | centage. [centage. ™ne. \^ e British possessions, protectorates, &c -— • : . 6(N.Z.) .. -£(N.Z.) £(N.2.) £(N.Z.) United Kingdom .. . . 86-03.38,629,240 81-59 38,921,568 83-63 45,492,989 80-15 India •• •• 34,326 0-08 "65,161 0-14 60,956" 0-13 125,826 0-22 Ceylon .. .. .. 2,670 0-01 - 393 0-00 1,528 0-00 1,401 0-00 South African Union ... 14,427 0-03 -29,152 0-06 27,504 0-06 21,855 0--03 Canada .. .. .. 560,875 1-37 6,97,865 1-46 656,984 1-41 1,103,008 1-S6 Australia .. .. .. 1,393,391 3-40 1,882,516 3-98 1,781,811 3-83 1,843,475 3-25 Fiji ■■ 87,035 0-21 85,493 0-18 86,191 0-19 102,076 0-17 Other British countries .. 153,516 0-37 190,581 0-42 241,999 0-52 272,736 0-52 Total, British countries 37,522,149 91-50 41,580,.401 87-83 41,778,541 89-77 48,963,366 86-30 Foreign countries and possessions— ' . ... United States of America .. 1,188,972 2-91 1,250,364 2-64 2,468,071 5-30 2,877,752 5-07 France •• •• •• 738,176 1-80 1,228,699 2-60 484,610 1-04 1,646il68 2-90 Belgium .. .. .. 330,284 0-81 612,646 1-29 647,212 1-39 618,356 1-09 Germany .. .. . 3.76,886 0-92 944:,310 . . 2-00: 165,30.4 0-36 . 272,481 0-48 Japan •• •• 354,462 0-86 856,014 1-81 432,495 0-93 1,554,837 2-74 Dutch East Indies .. .. 5,496 0-02 2,548 0-01 2,235 0-01 1,894 0-00 Other foreign countries .. 489,494 1-20 867,865 1-82 560,210 1-20 817,086 1-42 Total, foreign countries 3,483,770 8-50 5,762,446 12-17 4,760,137 10-23 7,788,574 13-70 Totals, all countries .. 41,005,919 100-00 47,342,847 100-00 46,538,678 100-00 56,751,940 100-00

H.—44.

- Comments 011 the variations in the direction of our trade and on individual items of export will be made under paragraphs relative to countries, but it is pertinent to remark that m the case of foreign countries the variations in the proportion of exports depend almost entirely on wool purchases by these countries. Imposts. The following table sets out the quantities and values of the principal items imported into New Zealand in each of the past two calendar years

Principal Imports (excluding Specie).

The marked increase of almost £8,000,000 is accounted for by increased purchasing-power and consequent freer spending which is reflected in an increased volume and value of the imports ot most commodities and, in particular, of motor-vehicles.

5

1935. ! 1936. Item. Quantity. j Value. Quantity. j Value. £(N.Z.) £(N.Z.) ww .. Bushels 224,702 58,977 407,141 100,676 .. Centals 244,733 202,855 152,083 135,190 " " " .. Cwt. 1,703,826 710,639 1,751,243 663,285 Tp! " " Lb. 9,972,438 648,535 11,242,534 750,026 Whis kv " " ' Gallons 277 ' 447 334,369 316,519 382,918 Syrettes' " Lb. 923,170 343,349 1,021,489 382,188 Tobacco :: •• •• ,, 2,646,746 347 859 3,082,200 399,328 q n .. 145,827 .. 141,96.2 H 0S ie r y'' " ■■ .. 246,536 ZaS:: :: 1.107.5« .. 1,261,519 Boots and shoes Doz. prs. 211,164 472 '° 49 219,650 ';?° 8 'I 78 Dranprv .. •• •• •• oZD,y/0 .. 000,^00 :: «.* 21 •• 688 ' S94 Pi p n e ;f° 0ds " .. 1,667,074 .. 1,829,589 t0n '■ " " ' .. 964,315 .. 1,088,344 Woollen " 652 > 616 852 ' 338 (Wacks " ■■ Doz. 4-48,032 165,476 364,089 125,628 OornsacKs .. 144,316 .. 203,200 wtoTpacks" " Doz. 60,225 87,927 45,776 54,085 Kerosene " Gallons 5,355,622 87,531 6,076,443 88,949 Motor spirits " . 63,920,658 1,085,361 86,423,750 1,633,396 Mineral lubricating' oil " •• „ 2,506,616 249,735 2,911,504 281,066 C™ietao?eum g .. 40 736,100 311,130 30,075,252 230,415 Coal ■■ Tons 97,398 94,197 111,078 105,340 rod .. .. Cwt. 438,789 289,340 647,209 411,956 :: * .. 4M ' 981 »:5S 54M66 «•:«? Electrical apparatus 1.276,316 1,841 500 Wireless apparatus .. •• ■■ •• ' Ti S a wn" ■■ Sup. ft. 15,898,729 206,164 20,062,369 276,021 IX, other :: :: .. ! • 195,722 .. 154,210 P Nemr>rint •• Cwt. 607,264 327,310 794,558 446,505 Printma other '' ■■ „ 129,663 222,966 144,363 238,963 Other •• •• 578 ' 925 •' 677,196 M •• Tons 254,871 372,754 310,691 493,865 phosphates .. g n 2 ,942 16,823 117,693 Motor vehicles " •• No. 20,845 3,207,431 30,264 4,547,065 Sfcrmotor.veMcta ..lb. ',068,325 735,042 6,603,969 669,746 Other items •• 16,485,740 - 19,980,813 Totals, imports 36,287,544 .. 44,134,326

H.—44,

The sources of New Zealand's imports in 1936 are set out in the table hereunder, which includes, for comparative purposes, the two previous years. In addition to total figures, percentages of total imports are given.

Source of New Zealand's Imports (excluding Specie).

The 1936 figures show that, practically all countries participated in the general rise in the value of imports, the most outstanding increases being those of the United Kingdom, Australia, Canada, and the United' States of America. A decrease in the actual proportion of total imports was' experienced in the case of the United Kingdom, while both Canada and Australia improved their positions. Trade with the United Kingdom. With exports from New Zealand to the United Kingdom at £45,492,989. and imports from the United Kingdom amounting to £21,852,347 during the calendar year 1936, increases of £6,571,421 and £1,379,854 respectively are recorded over 1935 figures. Notwithstanding these marked increases in value, exports to the United Kingdom represented 80-15 per cent, of total exports in 1936, as compared with 83-63 per cent, in 1935. Imports from the United Kingdom in the same two years represented 49-51 per cent, and 50-39 per cent, of total imports respectively. In considering the importance of the United Kingdom as a market for our produce due regard must, be paid to the fact that, owing to the lack of direct shipping facilities to the Continent, a considerable entrepot trade in New Zealand produce has developed between the United Kingdom and Continental countries. Wool is the chief commodity entering into this entrepot trade accounting as much as 80 per cent., while hides and skins account for a great portion of the Dairy-produce was at one time an important item, but with the development of agrarian policies of self-sufficiency by Continental countries re-exports of these commodities have fallen ofE considerably, except to Northern America. This entrepot trade in 1934 was valued at £5,354,425 sterling, while in 1935 the amount was £3,885,986 sterling, there being a fall in the value of New Zealand wool re-exported of approximately £2,000,000 from £4,500,000 to £2,500,000. The imports from the United Kingdom comprise mostly manufactured goods, the most important item of which is motor-vehicles, which has shown a remarkable and progressive growth in value since 1932, from £517,408 in that year to £2,674,155 in 1936. Cotton piece-goods and machinery are other very important items. The table below sets out the more important of our exports to the United Kingdom over the past two years, together with the percentage quantity of the United Kingdom's total requirements supplied by New Zealand.

6

3.934. 1935. 1936. Value - 1 centage. V-»- cgge. | British possessions, protectorates, &c.— £(N.Z.) £(N.Z.) £(N Z ) United Kingdom .. .. .. 15,789,761 50-38 18,283,884 50-39 21 852 347 49-51 * nd f 667,552 2-13 571,627 1-58 554,102 1-26 C e yJ° n ■■ •• 585,689 1-87 633,594 1-75 750,982 ]-70 South African Union .. .. .. 56,092 0-18 55,800 0-15 119 385 0-27 Canada .. .. .. .. 2,098,610 6-70 2,450,616 6-75 3,325'692 7-53 Australia .. .. .. .. 3,238,124 10-33 3,955,677 10-90 4,941,313 11-19 "• " " •• 103,166 0-33 80,084 0-22 95'802 0-22 Other British countries .. .. .. 600,619 1-92 571,401 1-57 558,435 1-26 Totals, British countries .. .. 23,139,613 73-84 26,602,683 73-31 32,198,058 72-95~ Foreign countries and possessions— United States of America .. .. 3,749,559 11-96 4,534,086 12-50 5 525 431 12-52 yrance 240,813 0-77 221,982 0-61 '215'll5 Ō-49 Germany .. .. .. .. 482,644 I-54 534,442 1-47 748 374 1-70 Belgium 137,139 0-44 217,516 0-60 409,102 0-91 .J-, iT •• •• •• 836,595 2-67 1,100,177 3-03 1,328,199 3-01 Dutch East Indies .. .. .. 1,381,974 4-41 1,437,379 3-96 1,722 802 3-90 All other foreign countries .. .. .. 1,371,215 4-37 1,639,279 4-52 1,987,245 4-52 Totals, all foreign countries .. 8,199,939 26-16 9,684,861 26-69 11,936,268 27-05 Totals, all countries .. .. 31,339,552 100-00 36,287,544 100-00 44,134,326 100-00

H.—44,

Principal Imports into the United Kingdom of Products of New Zealand Origin, with Percentage of Total Imports of such Commodities into United Kingdom.

The table above discloses the fact that New Zealand dominates the market in so far as frozen and chilled mutton, lamb, cheese, crossbred wool, hides and skins (other than woolled) are concerned, while in the case of pork, butter, and tallow she is the largest single exporter to the United Kingdom. The declared policy of the United Kingdom to encourage home production of dairy-produce and the safeguarding of the live-stock industry of Great Britain may have a very important bearing on the trade of New Zealand with the Mother-country in these primary products. The strong sentiment of the Dominion for closer trade relations with the Empire, and particularly with the United Kingdom, is evidenced in a practical manner by the fact that 73 per cent, of our total imports were of Empire origin in 1936, the imports from the United Kingdom being 49-5 per cent. As the result of discussions at the Imperial Economic Conference and of the trade mission of the Hon. Walter Nash, it is hoped that intra-Imperial trade will be still further increased. Trade with Australia. Our total trade with Australia still continues to expand, as is shown by the table hereunder, which sets out the value of this trade over the past five years, together with the visible trade balance :—

Total Trade with Australia.

While, the value of New Zealand's exports to Australia increased by only £61,664 in 1936 as compared with 1935, the imports from Australia increased by £1,049,579 ; the percentage taken by Australia of our total exports shows a further decline from 3-83 per cent, in 1935 to 3-25 per cent, in 1936. Imports, on the other hand, show an increase of from 10-90 per cent, to 11-19 per cent, of total imports. The increasing industrialization of Australia has had the effect of augmenting the quantity and value of manufactured articles imported from that source into the Dominion, and it may be mentioned that imports of hardware and machinery, steel, dried fruits, cut tobacco, timber sleepers, and cream of tartar show major increases. The Department, acting in collaboration with the Customs Department, is keeping the closest possible watch on importations, particularly of goods of a class which are already being made in New Zealand, in order to ascertain the effect of any increased importations upon the present position and future development and expansion of those local industries. In a number of instances where circumstances have warranted it action has been taken to open negotiations with the Governments of the countries concerned.

7

1935. 1936. Item - iUnit. Percentage Percentage Quantity. of Total Value. Quantity. of Total Value. Imports. Imports. £(stg.) £(stg.) Chilled beef .. .. .. Owt. 110,697 1-3 177,964 228,263 2-6 320,301 Frozen beef .. .. .. „ 464,758 27-1 606,849 277,900 18-6 344,007 Boned beef .. .. .. „ 217,617 36-6 302,853 210,453 31-6 285,586 Tongues, &c. .. .. .. „ 22,257 3-35 48,797 23,299 3-18 49,820 Veal, chilled and frozen . . .. „ 101,297 56-3 168,092 107,561 56-2 179,534 Mutton, frozen and chilled .. 1,041,563 60-7 1,754,720 888,864 66-1 1,616,778 Lamb .. .. .. „ 2,591,399 51-9 8,063,996 2,641,880 53-3 8,266,051 Pork, chilled or frozen .. .. „ 490,301 53-5 1,279,103 579,086 56-5 1,500,208 Cheese .. .. .. 1,762,915 64-9 4,198,564 1,681,147 62-8 4,773,989 Butter .. .. .. „ 2,637,502 27-4 11,571,543 2,791,914 28-6 13,445,227 Apples .. .. .. „ 296,130 4-08 443,902 377,480 6-67 434,136 Wool, crossbred .. 1,0001b. 150,992 45-5 5,890,527 208,269 56-0 8,389,333 Tallow .. .. .. Tons. 6,523 47-8 170,165 10,316 61-3 254,884 Hides and skins— Oxandcow.. .. .. Cwt. 77,097 7-43 181,684 59,419 5-6 150,475 Sheep and lamb, woolled .. „ 89,285 20-3 259,562 62,884 13-96 258,512 Other than woolled .. .. No. 3,885,367 64-5 299,911 2,890,356 58-3 314,435

Year ended 31st December, Total Trade. ! Exports to ! Imports from Excess of Imports Australia. Australia. over Exports. ■ i I [__ f(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. 3,813,153 1,444,860 2,368,293 923,433 1933 .. .. 3,969,403 1,393,311 2,576,092 1,182,781 1934 .. .. 5,120,640 1,882,516 3,238,124 1,356,608 1935 .. .. 5,739,209 1,781,811 3,957,398 2,175,487 1936 .. .. 6,784,788 1,843,475 4,941,313 3,097,838

H,— 44

The table hereunder sets out the nature of the commodities which enter into our export trade with Australia, quantities and values being shown for the past two calendar years

Notable increases have taken place in the case of wool, Phormium tenax, fish, seeds, and dairying machinery, while decreases have occurred in exports of timber and hides and skins. With a view to conserving supplies of white-pine, the export of this New Zealand timber has been prohibited except under license, and no doubt this action is in a large measure responsible for the fall in exports of timber. During the past year the expansion of secondary industries has been accelerated, more particularly in iron products, motor-car and aeroplane construction being in the forefront of industrial policy at the moment. Total production in Australia according to the latest figures available, 1934-35, is as follows £ Rural .. .. • • • • • • • • 188,000,000 Forestry, mining, and fish .. .. .. .. 31,000, 000 Manufacturing .. .. • ■ • ■ .. 137,000,000 £356,000,000 Of the total exports of Australia primary products account for 96 per cent., and, with the exception of New Zealand, she has not, up to the present, developed an export market for her manufactured products. During the year trade treaties were concluded by Australia with Belgium, Czechoslovakia, and France, while discussions with Canada and Germany were held. With the object of diverting trade to Australian and British manufacturers and " good customer " foreign countries, a licensing system, together with increased duties and import quotas on certain commodities, was instituted. Trade with Canada. A gratifying increase in the trade with Canada is apparent from the figures hereunder, which portray the value of New Zealand's exports to and imports from Canada, together with the visible trade balance.

Total Trade with Canada.

8

1935. 1936. Commodity. I p Quantity. | Value. Quantity. Value. £(N.Z.) £(N.Z.) Timber sawn .. .. Sup. ft. 37,608,594 347,960 25,693,632 242,570 Phormium tenax .. •• Tons 2,419 36,932 2,965 59,202 Tow ■■ „ 401 3,312 217 2,372 Grass and clover seeds .. Cwt, 20,725 54,596 32,409 68,020 Pe as . .. Centals 26,017 22,489 33,778 33,675 Oats •• „ 1 = 968 915 1,952 961 Fish frozen .. Cwt, 49,253 108,178 53,029 130,403 Sugar of milk .. .. Lb. 288,960 7,752 393,120 10,558 Wool .. .. .. „ 8,213,554 216,861 9,232,465 313,809 Tallow .. .. ■■ Tons 149 3,499 479 10,183 Sausage-casings .. .. Lb. 301,380 18,827 292,221 16,215 Hides, pelts, and skins — Calf-skins .. No. 178,806 40,060 66,387 23,994 Cattle-hides .. „ 116,889 144,737 87,616 139,442 Sheep-skins, without wool .. ,, 293,745 21,847 143,054 15,247 Sheep-skins, with wool .. „ 2,196 484 6,518 1,863 Pumice and sandstone .. Tons 3,124 8,296 2,995 8,210 Gold —Bar, dust, ingot, and Oz. 30,645 246,279 31,186 248,632 sheet Dairying machinery.. .. •• 13,506 .. 15,246

, „ , , j Exports to Imports from Excess of Imports Year ended 31st December, Total Trade. Canada. Canada. over Exports. I J . - £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. 1,351,234 244,160 1,107,074 862,914 1933 .. .. 1,825,807 560,875 1,264,932 694,057 1934 .. .. 2,796,475 697,865 2,098,610 1,400,745 1935 .. .. 3,107,600 656,984 2,450,616 1,793,632 1936 .. 4,428,700 1,103,008 3,325,692 2,222,684

H. —44,

The table shows that our exports to Canada have increased by £446,124, while imports have risen by £875,076. Canada now takes 1-96 per cent, of our total exports, as against 1-41 per cent, in 1935, while imports of Canadian origin are 7-53 per cent, of our total imports, compared with 6-75 per cent, in 1935. Imports from Canada comprise a great variety of individual items mostly manufactured, of which the most important are the following (1935 figures are shown in parentheses) : Motor-vehicles £891,016 (£549,740) ; newsprint, £424,706 (£323,980) ; rubber tires, £261,807 (£254,626); hosiery, £103,967 (£61,416); boots and shoes, £109,546 (£100,380). The principal commodities entering into our export trade with Canada are set out in the table below. It is interesting to note in this connection that 84 per cent, of the 1936 exports were made up of wool, calf-skins, and sausage-casings.

Principal Exports.

As mentioned above, the most important commodity exported to Canada is wool, which showed an increase in value of £416,603 over 1935 figures. It must be remembered that this direct export item is comprised mainly of wool-in-the-grease. If cognizance is taken of the indirect imports of New Zealand wool from the United Kingdom in the form of " tops " conservatively estimated by Canadian authorities at 33 per cent, of total indirect imports of wool from the United Kingdom, an additional amount of £427,000 should be credited to our export trade with Canada. The grading, packing, and freighting of our wool is deemed to be outstanding, and a considerable goodwill has been established with our customers. The trade in hides, sheep-skins, and calf-skins has not been quite so satisfactory, and there is a definite need for the grading and classification of all hides. The cultivation and extension of the Canadian market, where it is considered tanners can absorb the bulk of our output, is well worth while, and attention to grading and classification as mentioned above is essential. Notwithstanding the reduction in weight of hides and calf-skins exported to Canada and the fact that offerings from New Zealand have not been forthcoming, there was an appreciable gain in value over the previous year. Seeds showed a further important upward trend, and it is pleasing to note that the New Zealand Trade Commissioner has been successful in interesting Canadian importers in this direction. Although there was an actual increase in the value of butter exported to Canada this product has ceased to be a factor in the trade between the two countries as local production in Canada has now reached export proportions. There is, however, a market for a limited amount of New Zealand cheese. The trade in apples, though showing a decline this year, has held its position, and when the difficulties of marketing fruit in a country capable of growing huge exportable quantities are considered, results are very satisfactory. This is only possible in the short off-season in Eastern Canada—April, May, and June—and has required the fixation of prices to wholesalers on a fair market value and judicious advertising of the fruit explaining its New Zealand origin and freshness from our orchards. Fresh pears were marketed for the first time during the year, and while the samples sent did not stand up to the long journey involved the flavour and varieties were the subject of favourable comment. New items entering into the trade have been pears, referred to above, casein, again offered in limited quantities and sold, chamois-skins, grease for soap and oils, horse-meat, peas, and wool (noils). An endeavour was made during the year to introduce frozen rabbits for fox-feeding purposes, but this was unsuccessful, although possibilities still exist for this valuable and desired trade to be resumed now that fox-pelts are reaching higher values. Competition from offals, and especially lowpriced meats, renders success difficult, although the Breeders Association recognize the superiority of the New Zealand product. It is hoped that further investigation in the autumn may lead to successful negotiations for the opening-up of this trade.

2—H. 44

9

Item. 1932. | 1933. 1934. 1935. 1936. .1. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Butter 29,441 31,320 23,277 8,951 13,013 Cheese .. .. .. 9 2,133 201 4,731 3,082 Sausage-casings .. .. 40,523 129,129 156,645 223,633 157,483 Wool .. .. .. 81,295 149,245 301,058 197,163 613,766 Hides, pelts, and skins .. 45,749 196,562 153,764 161,837 257,665 Seeds .. .. .. 4,757 3,363 6,919 8,813 12,607 Frozen taeat .. •• 3,884 4,143 2,299 2,403 554 Apples .. .. .. 7,583 13,358 25,280 23,686 12,445 Kauri-gum .. .. .. 3,096 2,146 2,960 1,709 4,938 Phormium fibre .. .. 2,614 604 793 1,094 970 Tallow .. .. .. .. 525 .. 5,207 852

H. —44.

One pleasing feature of the trade relations between the two countries is that there is more evidence of good will and better understanding in Canada towards New Zealand products than in previous years. It is yet possible that New Zealand foodstuffs, frozen or canned, may command interest, though present tariff duties in some instances render it difficult. The duty of 3 cents per pound on frozen lamb is a particular case in point, and with its removal there should be a valuable seasonable trade in this commodity. Particular attention should be paid to the judicious advertising and attractive labelling of our speciality canned foodstuffs if they are to find a place in leading Canadian stores. Trade with the United States op America. Total trade for 1936 as disclosed by the figures appearing hereunder show increases over the calendar year 1935 in both imports from and exports to the United States of America amounting to £990,371 and £409,686 respectively. The United States of America provides our second-best market, taking in 1936 5-07 per cent, of our total exports, as against 5-30 per cent, in 1935. In respect of imports, the United States of America supplied in 1936 12-52 per cent, of our total requirements, as compared with 12-50 per cent, in 1935, and, after the United Kingdom, ranks as the most important source of our imports. It is interesting to note that of the total imports into the United States of America New Zealand supplies 0-48 per cent., while, expressed as a percentage of the total exports of the United States of America, we take 0-79 per cent.

Total Trade with United States of America.

The continued growth of our direct trade with the United States of America is very much in evidence, and while it has not yet reached the proportions obtaining in 1929 the figures show that the disparity between imports and exports has improved very materially. The principal exports from New Zealand to the United States of America are given in the table below. It may be seen that sheep-skins without wool, rabbit-skins, and wool continue to be the most important items.

Principal Exports.

The marked increase in the value of wool exported is particularly pleasing, and as a matter of interest I quote hereunder figures showing the United States of America classifications of the wool imported from New Zealand and indicating the quantities which are dutiable and which are free.

10

j I Year ended 31st December, Exports to the Imports from the Excess of Imports United btates. United States. over Exports. | I £(N.Z.) £(N.Z.) £(N.Z.) 1930 2,116,752 7,893,114 5,676,362 1931 .. .. .. 920,931 4,227,550 3,306,639 1932 .. .. .. 690,015 3,565,846 2,875,831 1933 .. .. .. 1,188,972 2,952,009 1,763,037 1934 .. .. .. 1,250,364 3,749,559 2,499,195 1935 .. .. .. 2,468.066 4,534,086 2,066,994 1936 2,877,752 5,525,431 2,647,679

j — Commodity. j 1933. 1934. 1935. 1936. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Wool .. .. .. .. .. 88,923 104,005 302,476 .660,777 Tallow .. .. .. .. .. 1,327 39,907 339,858 77,993 Calf-skins .. .. .. .. .. 82,537 43,684 56,931 86,240 Cattle-hides .. .. .. .. 30,869 17,360 32,766 30,567 Rabbit-skins .. .. .. .. 155,852 187,287 348,784 642,932 Sheep-skins, with wool .. .. .. 64,035 43,862 41,414 114,883 Sheep-skins, without wool .. .. .. 380,197 372,824 528,778 814,588 Sausage-casings .. .. .. .. 170,019 312,626 345,279 178,906 Grass and clover seeds .. .. .. 22,066 33,066 44,377 61,056 Butter .. .. .. .. .. 2,904 4,693 226,020 102,353

H,— 44.

The period covered by this survey is from Ist October, 1936, to February, 1937, inclusive. The trades suitable for the making of floor-coverings, approximating £4,500,000, have been admitted duty-free, and there appears to be great future possibilities in this direction. Imports for Consumption of Unmanufactured Wool from New Zealand, Period from October, 1936, to February, 1937, inclusive. Dutiable Free Donskoi, Smyrna, &c., and similar wools without Merino or (Actual Weight). (Actual Weight). English blood (carpet wool) — . lb - In the grease .. .. •• •• •• 132,389 3,710,829 Washed M 5B Sorted, or matchings, if not scoured .. .. .. • • 20,238 Scoured .. .. •• •• •• 11,638 59,318 All other wools not finer than 40's— Woollen type — In the grease .. .. • • • • ■ • 42,763 Scoured .. .. •• •• 275 8,219 Worsted type — In the grease .. .. • • • • • • 1 > 103 j 260 653,794 On the skin .. .. • ■ • • • • 343,528 Sorted, or matchings, if not scoured .. .. 14,899 4,048 Wools n.s.p.f. (not specially provided for) — Woollen type (clothing wool) finer than 40's, but not finer than 44's— In the grease .. • • • • • • • • 106,582 Sorted, or matchings, if not scoured .. .. 57,192 Finer than 44's, but not finer than 56's — In the grease .. ■ • • • • • • • 526,602 On the skin . . .. • • • • ■ ■ ®44 Finer than 56's — In the grease .. •• •• •• 119,485 Worsted type (combing wool) finer than 40 s, but not finer than 44's — In the grease . . • • • • • • • • , 954 On the skin 1«,757 Washed .. .. ■■ ■■ •• 5,151 Sorted, or matchings, if not scoured .. .. •• 17,812 Finer than 44's, but not finer than 56's — In the grease .. • • ■ • • • 1 > 228,907 On the skin .. •• •• •• 129,565 Sorted, or matchings, if not scoured .. .. .. 87,772 Scoured .. • • • • • • • • • • Finer than 56'S — In the grease .. • • • • • • • • 139,667 On the skin .. ■ ■ • • • • • • 197,090 5,173,506 4,456,446 Total 9,629,9521b. Consequent on floods and droughts and the loss or slaughter of vast herds of cattle in the United States of America the demand for hides and skins from overseas has considerably improved. The production of footwear, following better economic conditions, has reached record dimensions, some 415 000,000 pairs being manufactured during 1936, or more than 30,000,000 pairs greater than the average. Tanners' requirements for the current year are estimated at 20,000,000 hides, and of this quantity some 2,000,000 additional may be required to be imported over the quantity imported last During 1936 quantities demanded by both Canada and the United States of America were not forthcoming and the New Zealand Trade and Tourist Commissioner for the territory points out the desirability°'of paying particular attention to the requirements of these markets, which have been difficult to promote. . , IrioK c , The export of sausage-casings showed a very marked decline m value over 1935 figures, as also did that of tallow. It should be remembered that in 1935 tallow imports were exceptionally high due to special taxes on imported vegetable oils being imposed, thus forcing soap-manufacturers to use tallow as a substitute therefor. An internal tax of 3 cents per pound operating from Ist August, 1936, had the eSect of drastically curtailing shipments. . The value of seeds imported into the United States of America again shows a marked increase, being in 1936 almost treble that of 1933. ... ~ . , Inquiries for casein met with restricted ofiers and even then appeared out of line with those received from competing countries. The duty and charges amount to approximately 5* cents per pound. While domestic supplies are likely to be in greater volume this year owing to factories switching over from the production of dried-milk powder to casein manufacture, it is felt by reliable importers that, due to the short stock position in the Argentine, the opening prices m October and November, 1937, may be encouraging.

11

H.—44.

The importation of New Zealand butter continues, and direct exports of the commodity amounted to 20,281 cwt. in 1936. According to United States of America statistics imports from all sources of this product have decreased by 43 per cent, to approximately £(N.Z.)500,000. The activities of the New Zealand Trade and Tourist Commissioner in endeavouring to promote trade expansion with Western American States have been somewhat hampered by adverse influences notably the Pacific Coast shipping strike. There are, however, definite openings for speciality cheeses provided careful consideration is given to market requirements and for the supply to Pacific Coast markets of certain varieties of New Zealand fish. This question of New Zealand's export of fish has been investigated to some extent in the Dominion by the Department, but little interest has so far been displayed by local exporters. Inquiries made by American importers of timbers point to the possibility of developing a small trade in figured timbers for fancy panelling. The sale of our specialty woollen products, particularly travelling-rugs and reversible floor-rugs, would, it is felt, meet with a certain degree of success if specialized selling agencies were appointed. Special State restrictions in connection with the marketing of New Zealand beef, lamb and rabbits will need to be removed or partially removed before any appreciable amount of export trade could accrue to New Zealand. That there is a possibility of our obtaining a footing in this market is apparent from the retail prices for meats ruling on the Pacific Coast, and suitable action has been taken by the New Zealand Government with a view to the removal of these restrictions. The total external trade of the United States has increased in value by 12-5 per cent, above 1935 while in quantity the increase is 8-2 per cent. The great reduction in the export balance from £59,000,000 in 1935 to £8,250,000 in 1936 is accounted for by the following factors - (1) Greater increases in import-prices than in export prices. (2) Greater American purchasing-power in world markets. (3) The 1936 drought resulting in large importations and lower exports of agricultural products than usual. (4) The maritime strike's efiect on exports—estimated loss of $50,000,000 export sales. Imports increased by 18 per cent, from all countries and exports by 1\ per cent., while the trade with countries which have concluded reciprocal trade treaties with the United States of America show increases of 21-9 per cent, and 14-1 per cent, respectively. Trade with the British West Indies. It is gratifying to note that reciprocal trade with the British West Indies continues, and the table hereunder sets out the total trade with that colony over the past five years.

Total Trade with British West Indies.

* Excess of exports over imports. On balance over the five-yearly period there is an excess of exports over imports in favour o New Zealand, and with the improved shipping service in both the homeward and outward journeys we may look forward to an expanding trade with Jamaica. The imports from Jamaica comprise chiefly oranges, £16,671 (£18,990) ; grapefruit, £1 190 (£749) ; cocoa-beans, £6,455 (£16,756) ; rum, £8,213 (£5,055) ; asphalt and bitumen, £5,654 (£5,973) ; spices, £2,275 (£1,990). Figures in parentheses represent corresponding values for the calendar year 1935. The principal exports are given in the table below :—

12

Calendar Year. Total Trade. Direct Exports to Imports from Excess of Imports Jamaica. Jamaica. over Exports. £ £ £ £ 1932 .. .. .. 14,364 15 14,349 14,334 1933 .. .. .. 37,021 20,864 16,157 4 707* 1934 69,911 42,228 27,683 14M5* 1935 .. .. .. 109,973 53,966 56,007 2 041 1936 .. .. .. 93,773 48,796 44,977 3,819*

Principal Exports. Item. — ___ Calendar Year, 1935. Calendar Year, 1936. R . . £ ( N - Z -) £(N.Z.) Butter •• •• •• .. 50,406 . 45,866 GiLeese • • • • .... 360 ,213 Frozen meat . . I 07Q Tinned meat " . 67 , . .. Dried and condensed milk .... a7i W1» .• 1,386 £ - Other items .. .. .. ; 125 gyg Totals.. .. .. .. 53,966 48,796 x . V

H,— 44,

It is seen that butter dominates the position in so far as our exports are concerned, and, in fact, of the total importations into Jamaica of this product, amounting to 1,099,629 lb., the quantity supplied by New Zealand was 1,059,422 lb., or 96 per cent. This export trade in butter has doubled since the visit of the New Zealand Trade and Tourist Commissioner in Toronto in 1933. There appears, further, to be a market for other lines of New Zealand produce, as is evident from recent agency inquiries received from Jamaica, and close touch is being maintained by the New Zealand Trade Commissioner with this market. Hurricanes during the year affected the banana industry, and the reduced quantities available for export seriously reduced the national income. With reasonably good seasons it may be anticipated that increased purchasing-power will increase the consumption of products which New Zealand can supply. Trade with South America. The trade between New Zealand and South American countries is set out for the past three years in the table below, imports being shown according to country of origin : —

The marked increase in the exports of New Zealand produce to South American countries, as shown by the 1936 figures, is due in the main to shipments of potatoes to Uruguay. Crop failures in the Argentine and Uruguay have necessitated importation. During the calendar year 1936, 4,711 tons, valued at £23,687, were exported from New Zealand. For the first six months of 1937 a quantity of 6,882 tons, valued at £54,119, was exported to Uruguay and 497 tons, valued at £3,233, to Argentina. It must be remembered that of the exports consigned to Uruguay a large proportion may ultimately be consumed in the Argentine. Other exports to these countries are fresh apples and sheep. Imports from these countries comprise the following : — Argentina : Undressed hides, pelts and skins, crude tanning-materials, and seeds. Bolivia : Edible nuts. Brazil: Edible nuts and raw cocoa-beans. Chili: Nitrate of soda. Equador : Raw cocoa-beans. Island Trade. The trade with the Pacific Islands, while comparatively small in actual value, is nevertheless of considerable importance, and particulars are given hereunder of the trade of the more important islands and dependencies. FIJI. Trade with Fiji during the calendar year 1936 showed a marked improvement over 1935, as is disclosed by the table of total trade shown hereunder. Exports to the Island have increased by £15,885, or 18-4 per cent., and imports from Fiji by £15,712, or 19-6 per cent., over the 1935 figures.

Total Trade with Fiji.

13

Exports. Imports. 1934. 1935. ! 1936. 1934. ! 1935. I 1936. I i L £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Argentina .. .. 4,079 3,401 11,795 20,412 16,586 18,746 Bolivia .. .. .. .. .. 2,091 3,576 1,413 Brazil .. .. 13,080 11,517 5,937 12,665 27,559 15,955 Chili .. .. 11,500 76 2,520 10,446 10,625 7,560 Equador .. .. .. 281 1,161 3,042 5,003 6,624 Paraguay .. .. .. .. .. 6 10 20 Peru .... 7 .. 72 81 196 161 Uruguay .. .. 10,722 14,268 36,081 12 Totals.. .. 39,388 29,543 57,566 48,755 63,555 50,504

Exports to Fiji. Imports from Fiji. Total Trade. £(N.Z.) £(N.Z.) £(N.Z.) 1931 .. .. 89,245 112,955 202,200 1932 .. .. 88,693 116,645 205,338 1933 .. .. 87,435 106,096 193,531 1934 .. .. 85,493 103,166 188,659 1935 .. .. 86,191 80,090 166,281 1936 .. .. 102,076 95,802 197,878

H,— 44,

The exports of New Zealand produce to Fiji consist of a fairly wide range of products, of which those mentioned hereunder were the most important in 1936, the 1935 figures being shown in parentheses for purposes of comparison :— Meats, salted, frozen and tinned, £17,785 (£11,235) ; potatoes, £5,845 (£6,212) ; soap, £5,089 (£4,617) ; refined sugar, £4,301 (£3,069) ; tallow, £3,289 (£2,010) ; bacon and hams, £3,787 (£2,506) ; baking-powder, £2,126 (£1,102) ; sawn timber, £1,987 (£1,630) ; butter and cheese, £2,382 (£1 470) • onions, £1,607 (£152) ; lard, £1,199 (£504). Imports from Fiji consisted mainly of bananas, £72,499 (£59,274) ; raw sugar, £9,058 (£7,989) ; molasses, £1,489 (£1,745) ; potatoes, £4,201 (£2,145) ; coconut-oil, £3,165 (£2,368) ; mandarins, £1,809 (£2,426) ; oranges, £326 (£1,683). WESTERN SAMOA. During the calendar year 1936 further considerable expansion took place in the total trade of this territory, as disclosed in the following table. Exports from Western Samoa increased by £73,957 or 39 per cent., and imports into Western Samoa by £31,263, or 23 per cent., over 1935 figures.

Total Trade of Western Samoa.

The total values of importations into Western Samoa from various countries during the calendar year 1936 were : New Zealand, £53,218 (£51,384) ; United Kingdom, £31,165 (£22,855) ; Australia, £27,530 (£22,032) ; Japan, £17,781 (£13,662) ; United States of America, £11,636 (£14,151) ; Canada £7,239 (£3,016) ; Dutch East Indies, £5,959 (£1,396) ; Fiji, £4,464 (£3,381) ; India, £4,114 (£2,195) ; Germany, £1,176 (£242). These ten countries together supplied over 98 per cent, of the total imports into Western Samoa during 1936. Exports from Western Samoa during 1936, totalling £263,255, were shipped to the following countries : United Kingdom, £64,570 (£29,601) ; New Zealand, £56,869 (£59,251) ; Netherlands" £17,682 (£2,094); Mexico, £15,470 (£6,500) ; United States of America, £14,762 (£9,836) ; other countries, £93,902 (£82,016). While New Zealand is the largest supplier of the needs of Western Samoa, it is noticeable that the United Kingdom is now the largest purchaser of goods from that country and took in the year under review 24-5 per cent, of the total exports from the territory. The two most important items were copra, £38,540 (£21,520), and cocoa-beans, £24,417 (£6,691). The chief commodities taken by New Zealand were bananas, 128,045 cases, valued at £46,737 ; and cocoa-beans, 76 tons, valued at £3,880. Re-exports of silver coin amounting to £6,000 were also taken by New Zealand. Imports into Western Samoa from New Zealand comprise small quantities of a large number of commodities, the largest being tinned meats, £13,732 ; sugar, £10,381 ; butter, £2,422 ; vegetables, £1,115 ; dressed timber, £1,017. The quantities and values of the principal exports of Western Samoa during the past five calendar years are shown hereunder : —

Principal Exports from Western Samoa.

14

Year ended 31st December, Imports into Exports from Total Samoa. Samoa. Trade. £(N.Z.) £(N.Z.) £(N.Z.) 1931 .. .. .. .. 164,950 194,447 359,397 1932 .. .. .. .. 150,902 183,028 333,930 1933 .. 150,856 173,837 324,693 1934 .. .. .. .. 92,784 128,117 220,901 1935 .. .. .. .. 135,757 189,298 325,055 1936 .. .. .. .. 167,020 263,255 430,275

i • - Copra. Cocoa-beans. Bananas. Year ended 31st December, Tons. Value. Tons. Value. Cases. Value. £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. 10,879 108,698 825 49,712 66,715 20,016 1933 .. .. 11,526 101,347 899 41,813 81,983 26,999 1934 ... .. 8,948 60,654 1,027 29,498 96,225 35,796 1935 .. .. 12,501 108,695 576 19,639 109,000 38,146 1936 .. .. 13,014 156,873 1,065 46,607 128,045 46,737

H.—44,

COOK AND NIUE ISLANDS. The export and import trade with the Cook and Niue Islands shows a further advance during the period under review, and it is pleasing to note that in the case of Niue Island exports at £22,992 constitute a record. Total exports from the Islands, valued at £90,548, show an increase of 40 per cent., and total imports, at £97,238, an increase of 26 per cent, over 1935 figures. Total trade of the Islands is shown in the table hereunder for the last five years : —

Total Trade, Cook and Niue Islands.

The distribution of the trade is shown in the following table, from which it will be noted that New Zealand's share in the total trade is £152,290, or 81 per cent. The United Kingdom, United States of America, and Australia come next in importance in that order.

Direction of Trade of Cook and Niue Islands, 1936.

The principal exports from the Lower Group of the Cook Islands are oranges, bananas, tomatoes, and copra ; from the Northern Group copra and pearl shell, and from Niue copra and bananas. TONGA. The table given hereunder shows the values of New Zealand's exports to and imports from Tonga, in each of the past five calendar years : —

Total Trade with Tonga.

A further rise in the exports from New Zealand to Tonga took place in 1936, the increase being 42-5 per cent, over 1935 figures. On the other hand, imports which had been increasing steadily over the past few years receded "by £3,904, or 25 per cent, over 1935. The principal imports from Tonga were bananas, £10,645 (£14,079) and potatoes, £374 (£650). Exports included meats, salted and tinned, £10,248 (£8,346); refined sugar, £3,107 (£1,761); timber, £2,063 (£1,340); butter, £2,014 (£790).

15

Exports. Imports. Year ended 31st December, : Cook Islands. Niue Islands. Total. Cook Islands. Niue Islands. Total. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. 73,409 13,987 87,396 63,585 14,756 78,341 1933 .. .. 73,983 11,542 85,525 76,716 13,123 89,839 1934 .. .. 59,307 12,341 71,648 61,449 13,372 74,821 1935 .. .. 53,599 12,076 65,675 61,676 15,288 76,964 1936 .. .. 67,556 22,992 90,548 72,576 24,662 97,238

Exports. Imports. Country. From Cook From Niue rr + „i Into Cook Into Niue T ,, Islands. Islands. Lota1, Islands. Islands. iota1 ' £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) NewZealand .. .. 60,182 15,915 76,097 53,913 22,280 76,193 United Kingdom .. .. 3,509 .. 3,509 6,196 609 6,805 Australia .. .. 5,519 649 6,168 United States of America .. 3,861 .. 3,861 4,176 50 4,226 Japan .. .. 1,050 238 1,288 Canada .. .. .. .. ■• •■ 665 39 704 Western Samoa .. .. .. 5,152 5,152 .. 769 769 Mexico 1,925 1,925 Other countries " .. . . 4 . . 4 1,057 28 1,085 Totals .. .. 67,556 22,992 90,548 72,576 24,662 97,238

Year ended 31st Deceember, Exports to Tonga. Imports from Tonga. £(N.Z.) £(N.Z.) 1932 27,266 9,412 1933 .. .. .. .. 19,407 8,331 1934 .. .. •• 12,948 13,282 1935 .. .. .. •• 19,104 15,200 1936 .. .. .. •• 27,215 11,296

H.—44,

Trade with the Continent of Europe. The table following sets out the trade with European countries, other than the United Kingdom, for each of the past three years, according to New Zealand statistics, imports being given according to country of origin : —

The most noticeable feature brought out by the table is the marked rise of almost £1,500,000 in the total of our exports, seven of the countries listed contributing to this increase. Italy and Spain, due to internal unrest, and in the case of the former country the imposition of sanctions, absorbed considerably less of our products during the period than had been the case in previous years. Imports from European countries again showed an increase, there being only two of these mentioned —namely, Italy and France —which did not participate in the general improvement. The most noteworthy increases apparent from the table were in the products of Germany, BelgiumLuxemburg Union, and Sweden. In considering New Zealand's trade with the Continent it must not be forgotten that, owing to the lack of direct shipping services, a considerable proportion, estimated in 1935 at £3,885,986 sterling, of the produce is consigned to the United Kingdom and then re-exported. A small percentage of this amount is forwarded to countries other than Europe, particularly North America. The direct exports to the countries listed in the foregoing table are shown hereunder, and it is pextinent to remark that the greatest increase over exports in 1935 is shown in the case of wool. Other marked increases occur in casein, tallow, rabbit-skins, and fish, while the only decreases are in calf-skins and sausage-casings.

Direct Exports to European Countries listed above.

16

1934. 1935. 1936. Exports to— £(N.Z.) £(N.Z.) £(N.Z.) Germany 944,310 165,304 272,481 France .. .. .. .. .. 1,228,699 484,610 1,646,168 Belgium-Luxemburg Union .. .. 612,646 647,212 618,356 Italy .. .. .. .. ■■ 205,673 21,092 1,767 Netherlands 165,074 79,615 112,539 Switzerland .. .. .. •• 699 2,892 1,360 Sweden 117,529 47,142 64,936 Norway .. .. ■. • ■ • ■ 4,098 569 656 Poland .. .. .. .. 133,234 103,321 173,159 Czechoslovakia .. .. .. . • 1,986 12,969 20,064 Denmark 22,092 12,098 11,219 Finland 5,278 9,977 1,212 Spain .. .. .. .. 20,696 24,283 15,158 Other European countries .. .. .. 2,739 13,750 73,340 Totals .. .. .. .. 3,464,753 1,624,834 3,012,415 Imports from — Germany .. .. .. .. 482,644 534,674 748,374 France .. .. .. .. .. 240,813 222,049 215,115 Belgium-Luxemburg Union .. .. 137,139 217,513 409,102 Italy .. .. •• 192,342 225,157 45,279 Netherlands 139,611 161,480 210,397 Switzerland ... .. .. 91,283 97,208 140,776 Sweden .. .. .. .. 234,314 285,792 343,985 Norway .. .. .. .. 58,116 64,918 72,041 Poland .. .. .. .. 11,905 5,596 8,607 Czechoslovakia .. .. .. •• 79,892 120,590 142,215 Denmark 17,427 16,600 17,822 Russia 70,118 169,756 192,080 Finland 21,804 31,694 46,608 Spain .. .. .. 58,617 63,054 70,511 Other European countries .. .. .. 67,735 63,507 85,551 Totals .. .. .. .. 1,903,760 2,279,588 2,748,463

Commodity. Value. Commodity. Value. £(N.Z.) £(N.Z.) Wool .. .. 2,513,943 Seeds, grass and clover .. 7,648 Sheep-skins, with wool .. .. 78,847 Casein .. .. .. 8,148 Pelts .. .. 72,630 Tallow .. .. .. 16,928 Cattle-skins .. .. .. 112,299 Rabbit-skins .. .. 11,431 Calf-skins .. . . . • 46,343 Sausage-casings .. .. 320 Apples .. .. •• 32,613 Fish .. .. .. 3,704 Kauri-gum .. .. .. 14,322

H.—44.

The activities of the New Zealand Trade and Tourist Commissioner in Brussels have been largely responsible for increased quantities of New Zealand apples being admitted into the Netherlands and Germany, which latter country during 1936 took apples to the value of £17,096, as against none at all in 1935. In the case of casein, crayfish, honey, butter, milk-powder, and meats the Trade Commissioner has been successful in expanding our Continental market. The increasing trade in New Zealand grass and clover seeds is gratifying, and it may be stated that a definite interest is now being evinced by the Netherlands, Denmark, Belgium, and Sweden. The difficulties of developing New Zealand business with the Continent owing to the various restrictions imposed by Continental authorities, lack of direct shipping, and consequent transhipment with its attendant drawbacks, have received, and are receiving, the very close attention of the New Zealand Trade and Tourist Commissioner in Brussels. It is hoped that as the result of recent trade discussions and personal contact many of the present difficulties will be overcome and that trade expansion of direct benefit to New Zealand will thereby be facilitated. Trade with the East. The total trade with undermentioned Eastern countries for each of the calendar years 1933, 1934, 1935, and 1936 is shown in the table hereunder.

Total Trade with Eastern Countries.

11l considering these figures one is struck with the marked increases in exports to Japan (£1,122,342), India (£64,870), China (£25,136), Hong Kong (£10,927), British Malaya (£7,612) over the corresponding figures for 1933. Increased exports to India are accounted for by tallow £89,751 (£30,994), butter £15,743 (£11,664), and wool £5,614 (£1,390) ; figures in parentheses relating to 1935 export values. Imports from this source decreased by £16,500. In the case of China, wool to the value of £18,081 was exported in 1936, whereas no wool was exported to that country in 1935. Similarly, tallow valued at £2,136 was exported in 1936. In the case of butter the exports increased from £5,230 in 1935 to £7,988 in 1936. Total imports from China are stated at an unduly high figure, due to the importation of a collection of antiques, the imports under this heading being £27,570. Imports of walnuts increased from £12,019 in 1935 to £24,354 in 1936. Of the exports to Hong Kong, that of butter shows an increase of £9,396 to £13,480, while there have been increases in the importation of electric lamps and boots and shoes from that source. Increased imports of tea amounting to £112,859, which bring the total imports of tea from Ceylon to £723,355 for 1936, account for the increase in imports from that country. Increased imports of motor-spirit from the Dutch East Indies amounting to £384,376 brought the total to £1,008,227 in 1936. Sugar imports fell by £178,498 to £402,386.

3—H. 44.

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j-VLUi i mac vjuii njaaivni — 1933. | 1934, 1935. 1936. Export to — £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Dutch East Indies .. .. 5,496 2,548 2,235 1,894 British Malaya .. .. .. 22,929 49,727 63,771 71,383 Burma .. .. .. .. 743 208 618 946 Ceylon .. .. .. .. 2,670 393 1,528 1,401 Hong Kong .. .. .. 15,143 16,238 11,249 22,176 India .. .. .. .. 34,326 65,161 60,956 125,826 China .. .. .. .. 54,564 19,099 7,718 32,854 Japan .. .. .. .. 354,4-62 856,014 432,495 1,554,837 Philippine Islands .. .. .. 413 2,493 3,945 5,983 Totals .. .. ... 490,746 1,011,881 584,515 1,817,300 Imports from — Dutch East Indies .. .. 998,224 1,381,974- 1,437,379 1,722,802 British Malaya .. .. .. 63,181 64,826 81,457 97,246 Burma .. .. .. .. 17,239 11,622 9,679 11,361 Ceylon .. .. .. .. 551,388 585,689 633,594 750,982 Hong Kong .. .. .. 6,299 9,681 10,356 17,695 India .. .. .. .. 576,915 667,552 571,627 554,102 Japan .. .. .. .. 675,571 ' 836,595 1,100,150 1,328,199 China .. .. .. .. 72,785 98,454 97,244 151,299 Philippine Islands .. .. 7,033 13,268 10,837 14,824 Totals .. .. .. 2,968,635 3,669,661 3,952,333 4,648,510

H.—44

The export of apples to Eastern countries has been continued, a total of 6,205 cases having been exported in the season just closed. The destinations of our exports in this direction have been Singapore (1,001 cases), Batavia (1,855 cases), Saigon (50 cases), Manila (1,153 cases), Hong Kong (916 cases), Shanghai (1,130 cases), and Calcutta (100 cases). Inability to secure shipping space has hindered exports to India and Ceylon. Full advantage has been taken of the direct shipping services provided by the Japanese Line Osaka Shosen Kaisha since 1936, and also by the South Pacific Line inaugurated by the Royal Packet Navigation Company in May, 1937. The provision of a larger vessel early in 1938 to replace the s.s. " Van Rees " in this service should give increased opportunity for shipment of apples to Eastern markets. Inquiries for a variety of New Zealand products continue to be received from all parts of the East, both direct from Eastern importers and through the Department's honorary agents in Colombo, Hong Kong, Shanghai, and Tientsin. In all cases the inquirers have been placed in direct touch with New Zealand firms likely to be interested. It is pleasing to note that in the majority of cases mutually satisfactory business relations have resulted from these contacts. With the opening-up of a direct service to the Netherlands East Indies and adjacent territories inquiries from this source have increased considerably. Trade with Japan. In the table hereunder is depicted the total trade between New Zealand and Japan over the past six years. From this it is seen that, except for the years 1934 and 1936, there has been a balance of trade in favour of Japan.

Total Trade with Japan.

* Excess of Exports over Imports. In value our imports from Japan have shown a more or less steady growth over the period covered, while exports have been fluctuating with a rising tendency. The years 1934 and 1936 witnessed increased purchases of wool, which in the latter year aggregated £1,265,836, mainly owing to the tariff dispute with Australia. It is interesting to note that the total importations from Japan in 1936 increased 20-73 per cent, over the imports for 1935, while the total importations from all countries over the same period increased 21-53 per cent. Thus the rate of growth was slightly less than total importations. The increasing industrialization of Japan is apparent from the fact that the majority of our imports from that source are manufactured articles. Of these, silk and cotton piece-goods are the major items, and in the latter case an increase of almost 50 per cent, in value is noticeable over 1935 figures. Other important items are apparel, fancy-goods, electric-lamp bulbs, and sulphur. The principal exports from New Zealand to Japan for each of the years 1931 to 1936 are given below :■ —

Principal Exports to Japan.

As stated above, wool is by far the most important commodity, and in 1936 shows an increase of over £1,000,000 as compared with 1935. The increasing consumption of hides and skins is noticeable, while Japan's dependence on overseas sources of supply of metals and the increasing difficulty of obtaining adequate supplies is evident from the quantity of scrap metal imported from New Zealand in recent years. The direct shipping services between New Zealand and Japan are affording considerable assistance to exporters, and with increasing Westernization and higher living standards further markets for our exportable surplus should be possible.

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Exports. Imports. Excess of Imports r 1 Total Imports. over Exports. £(N.Z.) £(N.Z.) £(N.Z.) 1931 .. .. 267,899 335,000 1-2 67,101 1932 .. .. 236,799 478,000 1-9 241,201 1933 .. .. 354,462 677,000 2-6 322,538 1934 .. .. 856,014 836,000 2-7 20,014* 1935 .. .. 432,000 1,100,150 3-0 668,150 1936 .. .. 1,554,837 1,328,199 3-0 226,638*

1931. 1932. 1933. 1934. 1935. 1936. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Wool .. .. .. 179,049 181,246 233,229 689,851 241,697 1,265,836 Casein .. .. .. 50,248 30,865 52,436 92,342 128,667 142,124 Tallow .. .. .. 28,719- 9,491 10,922 24,424 8,536 49,865 Butter .. .. .. 4,095 3,133 1,661 2,419 446 469 Hides, pelts, and skins .. 4,009 7,257 15,716 21,222 27,016 48,376 Scrap metal .. .. .. .. 37,038 18,418 18,990 24,870

H.—44

TRADE AGREEMENTS. The most important trade agreements affecting New Zealand's trade with overseas countries are those made with the United Kingdom at Ottawa in 1932, with Canada in 1932, and with Australia m 1933 which are still operative either by extension or by lack of notice of termination. In 1933 a trade agreement was concluded with the Economic Union of Belgium and Luxembourg, and a modification of this agreement came into force on Ist September, 1936. Under the modification New Zealand receives free entry of sausage-casings, kauri-gum, and casein., while certain goods, such as electrical machinery, tools, &c., are to receive special treatment on entry into New Zealand. This agreement is to remain in force until the expiry of six months notification of revocation of the arrangement. Other trade arrangements in the nature of an exchange of notes are operative between NewZealand and South Africa, New Zealand and Sweden, New Zealand and Japan, while New Zealand has the benefit of a number of most-favoured-nation treaties concluded by the United Kingdom and certain foreign countries. . , v -.v n i i i • Under the terms of the treaty concluded m December, 1936, by Australia with Czechoslovakia apples provided they are cleared through the Czechoslovakia!! Customs within three months of picking, are entitled to a reduction of duty from 2|d. per pound to fd. per pound. Under most-favoured-nation treatment extended to New Zealand we enjoy the same duty-reduction. The United States of America has during the last twelve months negotiated a large number ol trade agreements, and the policy is adopted by the United States Government of extending the benefits of those reductions in duties made to other countries to all countries which do not discriminate against the United States Thus New Zealand automatically benefits from the conclusion of such agreements. During the visit in January, 1937, of the Hon. W. D. Euler, Canadian Minister of Trade and Commerce." the opportunity was taken of having preliminary talks on trade matters affecting New Zealand and Canada. NEW STEAMSHIP LINES. Dutch East Indies and Japan. There are two direct services between New Zealand and Japan —that of the Yamashita Kisen Kaisha which commenced in January, 1936, and the Osaka Shosen Kaisha, which since 1930 has operated a service to and from New Zealand via Australian ports. The latter company inaugurated in May 1936 a direct monthly service between New Zealand and Japan. For three months during the unfortunate strained relations between Australia and Japan in connection with the Customs tariff the New Zealand service took in Australian ports, but from October last the direct voyages between New Zealand and Japan were resumed. _ _ As the result of the activities of the Department the Royal Packet Navigation Co., Ltd. (K P.M. Line), decided to inaugurate a direct service between New Zealand and the Netherlands, East Indies, British Malaya, and adjacent territories. Under the title "South Pacific Line the company provides for monthly sailings with the m.v. " Maetsuycker and the as. Van Rees the former of which cleared Wellington on its maiden voyage on the 14th May, 1937. The '' Maetsuycker s schedule is Wellington, Sydney, Port Moresby, Sourabaya, Semarang, Batavia, Singapore, baigon, Singapore, Batavia, Semarang, Sourabaya, Port Moresby, Samarai, Rabaul, Port Vila, Noumea, Auckland. t Maet ker "is a new vessel of some 4,000 tons register having provision for fifty-one first-class passengers and ninety-two tons of cool and refrigerated space ; while the s.s. " Van Rees has accommodation for forty-seven first-class passengers, but no refrigerated space The introduction of this new direct service to eastern ports should be of material assistance to New Zealand exporters who wish to extend their business with the Netherlands East Indies and Malava Also the service should be valuable from a tourist viewpoint, as intending tourists will now be able to make the round voyage from New Zealand via Java ports and Singapore to Saigon without the inconvenience of transhipment. , . . The institution of this new direct service, following upon that of the direct shipping service to Japan is a further step in the development of New Zealand's export trade to the east, which it is hoped'will in due course become a very valuable outlet for our surplus exportable produce. OVERSEAS TRADE REPRESENTATION. New Zealand's trade representation overseas consists of the High Commissioner's Office m London the New Zealand Trade and Tourist Commissioners at Brussels, Toronto Los Angeles, and Sydney' and eight honorary agents and correspondents situated m Vancouver, Durban, Johannesburg, Colombo, Hong Kong, Shanghai, Tientsin, and Suva. In addition, the New Zealand Government offices in Melbourne handle trade inquiries in that city. . The expansion of New Zealand's trade overseas is one of the primary functions of the Department, and the representatives of the Government in overseas countries pay particular attention to the furtherance of this important phase of the Dominion's development. The services of these officers and of the Department itself are available to all members of the commercial community desiring to extend their trade relation with overseas countries. 1 hat the services of these representatives is appreciated is apparent from the increasing number of inquiries which are Not only do the Trade Commissioners deal with inquiries emanating from traders, but they are continually in touch with local conditions and with changes in the tariffs, quota restrictions, Customs regulations, methods of payment, &c„ in the territories they respectively cover.

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H,— 44,

Again these representatives are frequently called upon to obtain special information for the use ot various State Departments and Producers' Boards in New Zealand. As evidence of the useful work carried out by the Trade Commissioners may be mentioned the following instances : — Under the quota system of importation of canned crayfish into France licenses were made to expire 011 a date which meant that the full quota allotted to New Zealand could not be exported within the duration of such licenses. The Trade Commissioner in Brussels was able to arrange with the French authorities to extend the expiry date by almost three months, thus enabling New Zealand exporters to take full advantage of the quota allotted to New Zealand. After the conclusion of a trade agreement between Australia and Czechoslovakia the New Zealand Trade and Tourist Commissioner in Brussels was able to make arrangements whereby New Zealand apples entering Czechoslovakia received the same treatment as Australian apples, provided suitable packing certificates were supplied. Difficulty was met with in importing New Zealand honey into Denmark, but the action of the New Zealand Trade Commissioner in Brussels in explaining the full position to the Danish authorities facilitated the granting of the necessary license for import. Difficulty was experienced in connection with the shipment of New Zealand apples to Trinidad, but as the result of action taken by the New Zealand Trade and. Tourist Commissioner in Toronto the apples were admitted, and no further difficulties have since arisen. An instance might be quoted covering the action of the Honorary Agent for the New Zealand Government in Hong Kong, who has been instrumental in placing certain canned provisions on the Hong Kong market. Jk eS ® though chosen at random, will give some indication of the work carried out by the New Zealand Trade Commissioners in the development of New Zealand's export market in foreign countries, and the work of these Trade Commissioners is deserving of special mention, while the Departments thanks are also due to honorary agents and correspondents abroad for the readv assistance and close co-operation which have at all times been shown by them. The Department further appreciates the services rendered by the High Commissioner's staff in -London m connection with the carrying-out of trade inquiries on behalf of the Department. EXHIBITIONS OVERSEAS. urm g the year under review New Zealand participated in two major exhibitions—-the Empire Exhibition at Johannesburg and the Canadian National Exhibition at Toronto. In addition to the latter exhibition, the New Zealand Trade and Tourist Commissioner in Toronto also arranged a display of New Zealand specialty food products at the Hotel and Culinary Exhibition sponsored by the Quebec Hotel Association at Montreal. Canadian National Exhibition. This exhibition was held over the period 27th August to 12th September, and. is an annual event, and last year marked the seventh consecutive year in which New Zealand had participated The total number of people who visited the exhibition was 1,603,000, and of these, the greater number visited the New Zealand court. The industrial exhibits forwarded by New Zealand manufacturers for display purposes created a very wide advertisement, and in two particular lines such was the demand made on the Empire shop at the exhibition that supplies were so depleted as to necessitate cabling to New Zealand for a turther shipment. . .. Another section which created a very great deal of interest was that devoted to mothercraft and child-welfare which was arranged by the Royal New Zealand Society for the Health of Women and Children. Participation in the 1937 exhibition has been arranged, as the publicity given to New Zealand's products and to its many tourist attractions is of great value to the Dominion. Johannesburg Empire Exhibition. • e^ lbltlon presented an unparalleled opportunity for the display of New Zealand's products m South Africa, with which Dominion our export trade is almost negligible. The exhibition authorities allotted to New Zealand a pavilion, and a suitable display of New Zealand life and activities was arranged by the New Zealand Commissioner, Mr. Maurice O'Brien. This display embraced manufactured articles (such as rugs, provisions, &c.), raw materials (wool and seeds), sporting goods and trophies, and also dioramas and photographs setting out our chief tourist attractions. The New Zealand Commissioner was able, through contacts made at the exhibition, to gain nrst-hand knowledge of South Africa's requirements, and it is hoped that as a result we may be enabled to supply more of her needs. There is a market for our seeds, certain of our wool, hops, and tinned meats, while, no doubt, with suitable representation other of our products would find a ready market. Tk e exhibition was attended by approximately one and a half million people, and it is certain that the publicity given to New Zealand and the information obtained by the New Zealand Commissioner covering South African conditions will be of great value.

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Bibliographic details

H-44 DEPARTMENT OF INDUSTRIES AND COMMERCE (TWENTIETH ANNUAL REPORT OF THE)., Appendix to the Journals of the House of Representatives, 1 January 1937

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10,671

H-44 DEPARTMENT OF INDUSTRIES AND COMMERCE (TWENTIETH ANNUAL REPORT OF THE). Appendix to the Journals of the House of Representatives, 1 January 1937

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