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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.

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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