B—l6

Compared with 1948-49 the most significant changes in 1949-50 (in terms of New Zealand currency) occurred in three items —receipts from exports and payments for imports, which increased by £lO-8 millions and £l3-8 millions respectively, and " Government payments," which declined by £4*s millions. The increase in export receipts was due largely to a favourable export season for all major exports, particularly wool. The fact that a surplus of only £541,000 was obtained after an export season which yielded record receipts emphasizes the need for continuation of some form of exchange and import control. At the present time overseas funds are relatively large, but they normally fluctuate considerably for seasonal reasons, being highest in May or June, and lowest in November or December. This fact must be taken into account in considering the adequacy of the overseas funds relative to future requirements. The table set out below analyses New Zealand's recorded balance of exchange transactions with various countries during the year :

Balance of Transactions Analysed by Countries, Year Ended 31st March, 1950 (£000)

This table reveals the pattern of New Zealand's overseas trade and payments. The surpluses with the European countries arise mainly from the sale of wool. These surpluses, together with that with the United Kingdom, were sufficient in 1949-50 to cover the deficits. with hard-currency areas and Australia. The large deficit with Australia is the result not only of Australia's small need for our exports, being herself a primary producing country, but is due also to the fact that she is in a position to supply New Zealand with materials and other goods not so readily available from other sources. The deficit in payments with the United States of America and Canada for the financial year 1949-50 was $(U.5.)39 millions. Comparable figures for the three calendar years 1947 to 1949 are as shown in the following table.

11

— Receipts. Payments. Balance. United Kingdom 129,013 115,891 +13,122 Australia 5,905 26,434 —20,529 Other sterling area 3,202 7,038 - 3,836 United States of America 10,313 17,699 - 7,386 Other American account 165 29 + 136 Canada 2,752 4,650 - 1,898 Belgian monetary area 2,038 416 + 1,622 Switzerland 253 337 84 France 7,062 255 + 6,807 French monetary area 169 4 + 165 Netherlands 3,406 213 + 3,193 Netherlands monetary area . . 135 214 - 79 Sweden 419 605 - 186 Italy 1,337 149 + 1,188 Denmark . 628 38 + 590 Norway 202 283 - 81 Japan 1,006 255 + 751 China 4 186 - 182 All other countries 7,632 404 + 7,228 Total 175,641 175,100 + 541