H.—44.

On the other hand the proportion of our imports from European countries, with the exception of Belgium, showed substantial reductions. _ . In considering the importance of the United Kingdom as a market for New Zealand products it must be borne in mind that a not inconsiderable part of our exports is sent thither merely as a convenient depot for subsequent sale and shipment to the Continent of Europe and to America. This is partly due to the absence of direct shipping facilities. The latest figures are not yet available but in 1933 the total of such re-exports of New Zealand produce was £5,264,804, and the gures oi later years probably show a larger volume of re-exports of New Zealand produce from the United Kingdom to the European countries and America. The strong sentiment prevailing in the Dominion towards closer trade relations with the Empire, and more particularly with the United Kingdom, continues to be indicated ma practical manner by the maintenance of the percentage of our imports which are the produce of Empire countries I lie proportion of our imports from the United Kingdom increased very slightly, from 50-38 per cent, m 1934 to 50-39 per cent, in 1935 ; imports from Canada over the two years increased from 6-70 per cent, to 6-75 per cent. In 1933 the percentage of Canadian goods was only 4-95 per cent of the total Imports from Australia in 1934 were 10-33 of the total, and the percentage m 1935 had increased t0 11 The total percentage of our imports derived from Empire countries in 1935 was 73-31. Tbade with Australia. The value of our trade with Australia in each of the past five calendar years is shown in the table below : — ——i i ~~ ; ~ i

The value of New Zealand exports to Australia declined in 1935 by £100,705, and the value of our imports from that country increased by £717,553. Prior to 1935 Australia was second only to the United Kingdom as a buyer of New Zealand goods, but second place has now been assumed by the United States, which purchased £2,468,071 worth of goods from us m 1935. The Trade Commissioner at Sydney has devoted considerable attention to the development of our export trade, and from time to time has submitted reports on trade activities and inquiries from potential buyers of New Zealand goods. Wherever possible exporters and importers m New Zealand have been put in touch with buyers and sellers of a number of products m Australia and m a number of cases business has followed as a result of the efforts of the Trade Commissioner and the Department. The following table covering the past two calendar years shows the nature of the commodities that enter into our export trade with the Commonwealth, and the quantities and values of the principal items : —

5

,T J A O, + n i. „ Exports to Imports from Total Tra( je. Year ended 31st December, Australia. Australia. 1 £(N.Z.) €(N.Z.) £(N.Z.) 1931 .. 1,157,403 2,073,361 3,240,764 ioqo .. 1,444,860 2,368,293 3,813,153 icm " 1,393,311 2,576,092 3,969,403 1934 .. 1,882,516 3,238,124 5,120,640 1935 ;; .. 1,781,811 3,955,677 5,737,488

1934. 1935Commodity. ! f Quantity. I Value. Quantity. Value. £(N.Z.) £(N.Z.) Timber, sawn ... .. Sup. ft. 33,205,938 305,615 37,608,594 347,960 Phormium tenax (New Zealand Tons 2,607 36,7o0 To^ mp) 500 4,179 401 3,312 Grass and clover seeds !! Cwt. 18,292 49,885 20,725 54,596 Peas . •• Centals 19,883 19,436 26,017 22,489 0ats " „ 3,051 1,307 i 1,968 915 Fish frozen' Cwt. 47,552 93,422 49,253 108,178 Sutr of m lk " :: Lb. 371;920 9,942 288,960 7,752 Wool • 8,098,596 331,980 8,213,554 216,861 Tallow Tons 678 11,681 149 3,499 :: ». ».«« *»>*» 18 > 827 Hides, pelts, and skins — ., nRn Calf-skins .. ..No. 337,964 63,027 178,806 40,060 Cattle-hides .. „ 139,971 183,517 116,889 144,737 Sheep-skins, without wool .. „ 217,533 o'lcifi '484 Sheep-skins, with wool . . „ 578 141 1 „ „„„ Pumice and sandstone •• Tons 2,279 WfUfS 946'979 Gold-Bar, dust, ingot, and Oz. 24,736 190,974 30,645 246,279 sheet _ __ —