A.—4

the Commonwealth, and the effect which federation might have upon the trade between New Zealand and Australia : — Yeab 1899. £ The total exports from New Zealand in the year 1899 amounted to 11,938,335 The total imports to New Zealand in the year 1899, excluding specie, amounted to ... ... ... ... ... 8,613,656 The total exports from New Zealand to the Commonwealth in the year 1899 amounted to ... ... ... ... ... 1,708,036 The total imports from the Commonwealth to New Zealand in the year 1899 (excluding specie) amounted to ... ... ... 1,211,568 The exports from New Zealand to the Commonwealth during 1899, and which were the produce of the colony, amounted to ... 1,646,169 In this amount was included gold (of universal value) to the amount of ... ... ... ... ... ... ... 645,850 1,000,319 The imports* from the Commonwealth to New Zealand, and which represented the produce of the Commonwealth (excluding specie), amounted to ... ... ... ... ... ... 500,699 Net balance in favour of New Zealand ... 499,620 * The values given here are f.o.b. values in Australia, not o i.f. in New Zealand. Year 1900. In 1900 the total exports from New Zealand to the Commonwealth £ amounted to ... ... ... ... ... ... 1,858,582 Deduct gold ... ... ... ... ... ... 764,590 Total export (excluding gold) ... ... 1,093,992 In 1900 the total imports to New Zealand from the Commonwealth (excluding specie) amounted to ... ... ... ... 1,389,008 Note.—The full particulars for 1900 are not jet available. The above table shows that, excluding gold, the exports of New Zealand produce to the Commonwealth in 1899 amounted to only B*4 per cent, of the total exports, and that the imports of produce of the Commonwealth to New Zealand amounted to only 5 - 8 per cent, of the total imports. Details of the interchange of trade between New Zealand and the Commonwealth accompany this report. Agriculture. —It has been contended that if New Zealand joined the Commonwealth the effect of inter-State free-trade would be to increase the markets in Australia for the productions of this colony, and so induce an extension of agricultural industry in New Zealand. It is said that a large and profitable market for agricultural produce, especially oats, from New Zealand existed in Victoria prior to the imposition of protective duties, and that in consequence of those duties that market has been practically closed. Whether or not the imposition of protective duties was the inducement which led Victorian farmers to extend the area under crop, certain it is that for some years past Victoria has been, and is now, able to grow all the oats and other agricultural produce required for home consumption, and to have a large surplus available for export. All the expert witnesses examined by your Commission in Australia agreed that, even under free-trade, New Zealand could not look to the States of the Commonwealth for a large permanent market for agricultural and pastoral products. But in seasons of drought a valuable market will, no doubt, always be found there. New South Wales has during the last ten years brought under crop for wheat an additional area of over 1,000,000 acres of land, and last season had a surplus of upwards of 6,000,000 bushels for export. Barley fit for malting, and hops, are also successfully grown. In Victoria the production of wheat is carried on upon a large scale; and, as to oats, although it is admitted that for some purposes the New Zealand oats are of a superior quality, and that the average yield in New Zealand iii—A. 4.

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