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It is fully expected that the general publicity that will be given to New Zealand's scenic beauties and sporting attractions will encourage tourists to the Dominion, and that the practical display of our products will encourage greater trade with Canada. More than two million people are expected to visit this Exhibition during the brief period of its currency. INDUSTRIAL EXHIBITIONS. It is the policy of manufacturers' associations to promote the development of local industry by the frequent display of New-Zealand-made goods at industrial exhibitions. The Department has co-operated during the past year in the organization of such an exhibition held in Wellington in August, 1925. The Department also provided a small exhibit at that exhibition, a.nd at the Auckland Winter Show and Industrial Exhibition, also held during August last. These exhibitions have undoubtedly had a marked educative value, and must tend towards the creation of a public interest in and support for local manufactures. WHEAT AND WHEAT-PRODUCTS. In the annual reports of the Department for previous years extensive reference has been made to the matter of the supply and prices of wheat and its products, and the varying nature of the Government's association with the trade. For the season 1924-25 the Department was closely concerned in the matter, the importation and resale of over 4,000,000 bushels being carried out on Government account. It was hoped and anticipated that with the close of the season 1924-25 the Government would be able finally to terminate its connection with this trade, and to leave the market to find its own level behind the protection of the Customs tariff provided in 1921. As from the Ist March, 1925, the prohibition of importation of wheat and flour ceased, and the duties of 2s. per cental on wheat and 3s. per cental on flour were in force and effect. Difficulty, however, again arose for the reason that the price which millers were able to pay for local wheat in competition with imported flour did not meet with the approval of growers. After considerable discussion as to what constituted a fair price for wheat the representatives of both millers and growers placed their difficulties before the Government, and asked for action which would protect growers against the sudden and substantial fall in world market values which took place in March, 1925, and at the same time end the deadlock which had arisen as between buyers and sellers. It was also urged that arrangements were necessary to enable supplementary supplies of wheat to be imported for milling within the Dominion. Millers urged that they could not pay the full duty levied upon wheat and compete with imported flour even though the latter also bore duty at the tariff rate. Negotiations resulted in an agreement between growers and millers whereby an increase in wheatprices was arranged while flour-prices were reduced. This was possible by a substantial increase in prices of bran and pollard, which had previously been sold at very low rates. Growers indicated that they would raise no objection to Government importing duty-free and selling to millers such quantities of wheat as might be found necessary to ensure a full national supply. It was agreed that the prices at which such imported wheat would be sold to millers would be on a parity with the agreed prices for local wheat, and would vary from port to port according to the value of flour and wheat at those ports. For that reason prices at which the imported wheat was sold to millers were higher in the North Island and in Otago and Southland than at Lyttelton, Tima.ru, and Oama.ru. It was recognized, of course, that the purchase price in Australia, together with the cost of importation, must necessarily be covered by the average sale price, and that while outside markets were fluctuating, as far as possible a stable price of flour should be maintained in the Dominion. The scheme in effect represented an endeavour to maintain for a period of months a firm market for wheat, flour, and bread in the Dominion, as had been done in previous years, but with the important difference that in 1925 there existed no embargo against importation of flour. As the world market value of wheat remained at a comparatively high level (and in fact, for portion of the year, rose to specially high points) there was in practice no great difficulty in carrying out the scheme. Wheat was purchased at satisfactory prices, and over a period of eight months, from July, 1925, to February, 1926, inclusive, importation was effected by the Department of an amount of 1,794,119 bushels, or 48,057 tons. The weight sold was less than the weight purchased by an amount of only 2,423 bushels, representing a loss of 0-14 per cent. Judged by all previous records of importation and by reports of the operations of commercial firms, this loss in weight is particularly low. This satisfactory result has been achieved only by constant attention to such matters as the checking of input weights and the prevention of waste on discharge—factors which otherwise tend to give rise to serious loss. The Department desires again to record its appreciation of the careful attention which Mr. Alexander Davidson, our representative in Australia, has at all times given to the many matters arising in relation to weight and quality. The wheat was freighted in twelve shipments (eleven of which were complete cargoes), eight being from the Australian harvest of 1924-25 and four from the harvest of 1925-26. The purchase price of the wheat totalled £585,222 ss. 7d. While the quantity imported by the Department in 1925-26 was less than half that of the previous year, a quantity amounting to over 1,300,000 bushels was brought in during the months of July, August, and September, 1925, and the arrangements for shipment and discharge required close attention. Shipping delays arising from adverse weather were to some extent unavoidable, but were kept at a minimum, and no serious inconvenience in the matter of supply arose from any such delays. No industrial disturbances affected either loading, transport, or discharge. The Department has previously pointed out the difficulties and dangers which arise from the necessity of importation of this essential foodstuff. Probably the most real danger is that of a labour dispute in the transport

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