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H\—l7

The trade with China from Australia and New Zealand is.still in its infancy, and, no doubt, is.capable of great expansion. When it is considered that in 1905 the value of imports into China amounted to £67,996,578 12s. 7d., and that of the exports to £34,657,996 12s. 6d., it,is not unreasonable to think that New Zealand should secure a portion of this trade. The total British trade in 1905 amounted to £42,179,246 19s. lid. imports, and £16,208,206 9s. 3d. exports, of which Australasia contributed £234,017 15s. sd. imports, and £10,939 Is. exports. A very small portion of which trade was done with New Zealand. China now imports woollen goods, consisting of flannel blankets and rugs, worsted yarn, and also butter and cheese (of which commodities Australia exported during 1905 to the value of £9,093), candles, coal, fish and fish-products, flour, dried fruits, hides, leather, condensed milk, soap, timber, and wines, all of which are produced or manufactured in New Zealand. To show how the trade with the East is catered for in Australia, I quote the following from Dalgety's Review, 10th June, 1907: — " The requirements of our trade are well catered for by several lines of steamers —viz., Nippon Yusen Kaisha, China Navigation Company, Eastern and Australian S.S. Company, NordDeutscher Lloyd, Burns, Philp, and Co.'s line, A. Currie and Co., British-India S.N. Company. Besides these, other steamers are chartered on different occasions to transport special cargoes. The existence of all these regular lines of steamers is an indication of the extent of our present trade; on the outward voyage from Australia their carrying-capacity on most occasions is taxed to the utmost. This frequent, speedy service will materially assist in developing Australia's commerce with the Eastern countries. " The export of Eastern produce presents a splendid field for an energetic trade. Rice, tea, sugar, coffee, copra, silk —in fact, Eastern goods are 'legion.' They afford plenty of scope to the merchant, and, if an exporting house too, a reciprocal trade is more beneficial to both parties." Trade with Australia. Takiug into consideration the fact that New Zealand and Australia export similar lines of produce, the trade between the two countries has been satisfactory. • . Exports from New Zealand to Australia, year ending 31st December, 1906 3,156,489 Imports from Australia to New Zealand, year ending 31st December, 1906 2,391,767 Difference in favour of New Zealand ... ... ... 764,722 The figures for the year ending 31st December, 1905, are as follows : — £ Exports from New Zealand to Australia... ... ... ... 1,815,717 Imports from Australia to New Zealand ... ... ... 2,294,971 It will be seen by the 1906 figures that New Zealand exported to the Commonwealth goods to the value of £764,722 in excess of the imports from Australia. Interchange of trade is handicapped to a considerable extent by the Customs tariff adopted in each country. Still, large shipments of hemp, timber, fish, and woollen goods are exported regularly, and there is also a demand for hides, skins, marble, pumice-stone, and cheese. The latter article (although subject to a duty of 3d. per pound) is, in request for the better-class trade in the Commonwealth, being greatly superior in quality and texture to Australian cheese. War Office Supplies. As objections were raised by packers regarding the date on which any meat was preserved being stamped on the bottom of each tin, the authorities made the following concession in connection with the last tender called: Tins to be stamped "A" to represent meat packed in 1907 ; " B," 1908; "C," 1909; " D," 1910. Reports from London indicate the fact that the War Office authorities are, all things being equal, willing to draw supplies of New Zealand meats for use in the army. Major A. Long, D.5.0., of the Army Service Corps, has visited New Zealand to inspect the conditions under which preserved meat is being prepared and canned here. On arrival in Wellington Major Long was given every assistance to enable him to obtain reliable information. After inspecting the chief preserv-ing-works in the country Major Long gave expression to the fact that they were well conducted, the sanitary arrangements excellent, and the Government inspection admirable. He also expressed the opinion that nowhere in the world would there be found canning-works of a higher standard of efficiency. He considers the question of whether New Zealand will have an opportunity of supplying tinned meat to the British army mainly depends on the price at which it can be supplied, the price and quality naturally deciding the source of supply. Meat for the Philippines. The U.S.A. War Office authorities show a disposition to come to New Zealand for beef and mutton for the troops stationed at Manila, and tenders were recently called for a supply of 6 600,000 lb. of beef and 200,000 lb. of mutton. Owing to representations made to the authorities the date on which tenders were to close at Manila was extended so as to enable Australia and New Zealand to quote. Specifications and conditions of tenders were forwarded by the Department to the freezing companies in this country, but owing to there being no direct service to Manila from New Zealand no business resulted on this occasion.