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H.—44,

electrical machinery and apparatus, £157,040 (£100,770) ; boots and shoes, £155,816 (£126,318); hosiery, £130,788 (£126,318). A substantial decrease occurred in importations of printing-paper £294,345 (£432,721). rf The export trade to Canada, so far as the principal items are concerned, is shown in Table X below ; wool, hides and skins and pelts, and casings all showing very substantial increases over the previous year's figures : —

Table X. —Principal Exports.

In previous reports attention was drawn to the necessity on the part of producers to suitably grade and classify export hides, sheep-skins, and calf-skins. With the introduction of the standard specification for the treatment, grading, and classification of hides, yearlings, and calf-skins, there should be considerable improvement in the quality of our skins destined for the Canadian market. From official Canadian sources statistics of imports of principal items from New Zealand for the two calendar years 1936 and 1937 are set out in Table XI below :—

Table XI. —Principal Imports.

Butter. —Sales of butter to Canada by New Zealand have been almost negligible during recent years consequent upon the " dump " duty which the Canadian Government reserves the right to impose in excess of the treaty-rate of 5 cents. In November, 1937, it was apparent that supplies of butter available in Canada were low, and on Ist December it was estimated that the shortage was approximately 6,000,000 lb. Negotiations were therefore immediately commenced by the New Zealand Trade Commissioner in Toronto and the New Zealand Government for direct sales of our product. In January the Canadian Government decided to admit 25,000 boxes from New Zealand without " dump " duty and to extend this quantity if necessary. In all, some 35,500 boxes were despatched ; but the Canadian Government adhered to the quantity of 25,000 boxes mentioned above free of " dump " duty, but agreed to prorate the dumping-duty amongst importers in the ratio that 25,000 boxes will bear to the total quantity purchased prior to Ist February and imported between Ist January and Ist April, 1938. Lamb and Mutton. —A trial shipment of 5,900 carcasses of lamb and mutton was made early this year consequent on the reduction in duty from 3 cents to \ cent per pound. This shipment, followed by a further one of 3,000 carcasses of lamb, was made to Eastern. Canada (Montreal and Toronto), and ready sales were made at prices comparable with London. Mr. Forsyth, the London Manager of the New Zealand Meat Producers' Board, co-operated with Mr. J. W. Collins, the New Zealand Trade and Tourist Commissioner in Toronto, in arranging displays and generally placing the meat in consumption. The superior eating-quality of the New Zealand lamb was freely commented on by butchers, and the trial augurs well for the success of future shipments during a limited period extending from February to May. Mutton is not a popular meat in Canada.

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Item. ! 1933. 1934. 1935. 1936. 1937. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Butter .. .. .. 31,320 23,277 8,951 13,013 11,134 Cheese .. .. .. 2,133 201 4,731 3,082 14,358 Sausage-casings .. .. 129,129 156,645 223,633 157,483 266'733 Wool .. .. .. 149,245 301,058 197,163 613,766 957,721 Hides, pelts, and skins .. 196,562 153,764 161,837 257,665 307,969 Seeds .. .. .. 3,363 6,919 8,813 12,607 3o'437 Frozen meat .. .. 4,143 2,299 2,403 554 768 Apples .. .. .. 13,358 25,280 23,686 12,445 23,750 Kauri-gum .. .. .. 2,146 2,960 1,709 4,938 13,375 Phormium fibre .. .. 604 793 1,094 970 2,544 Tallow .. .. .. 525 .. 5,207 852 2o'772

1936. 1937. Quantity. Value. Quantity. Value. $ $ Apples, green .. .. .. Brl. 21,368 82,797 28,550 110,716 Casein .. .. .. ..lb. 116,936 10,290 34-9,618 42,609 Cheese .. .. .. .. „ 133,978 15,976 157,388 18,080 Gelatine, edible .. .. . . „ 10,080 2,247 45,360 9,005 Gums .. .. .. .. „ 314,600 13,667 660,300 55,639 Hides, raw .. .. .. Cwt. 56,652 1,132,693 79,819 1,474,663 Sausage-casings .. .. .. .. 658,242 .. 1,065,516 Seeds .. .. .. .. .. 70,487 .. 171,450 Flax .. .. .. .. Cwt. 1,907 8,807 2,045 9,411 Wool, raw .. .. ..lb. 12,053,396 2,488,044 13,207,483 4,476^244