8.—6

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mencing operations this month, and shortly there should be sufficient butter produced for consumption in the Dominion and for export. If it should be necessary to take any steps to regulate supplies and prices they will be considered later on. The New Zealand Government has done its best to assist the Commonwealth of Australia with supplies of foodstuffs, but with the present harvest and dairying prospects it may be impossible to go much further in this direction. Through the agency of the censor it was discovered that attempts were being made by the enemy to keep up a trade with this country through neutral countries, and consequently steps were taken by the Government to prevent this by requiring that all goods imported from Norway, Sweden, Denmark, Holland, Switzerland, and Italy should be supported by a certificate of origin signed by the British Consular Officer for these countries vouching for their place of production. Since then Italy has joined the Allies in the field, and thus has given the best assurance that her ports will not be used by the enemy to our disadvantage. Arrangements were made with the Imperial Government to obtain the assistance of their Consular Officers in carrying out the issue of these certificates. INSULATED TONNAGE.—IMPERIAL GOVERNMENT FROZEN-MEAT SUPPLY. The shortage of insulated tonnage for the conveyance of frozen meat and dairyproduce to the London market has been a matter of grave concern to the Government during the year. It arose largely through the withdrawal of a number of steamers regularly employed in the New Zealand trade for the transportation of the Expeditionary Forces, and the position was aggravated by other vessels engaged regularly in the trade being taken in Great Britain and Australia for military purposes. Moreover, the drought which was experienced in parts of the North Island early in the season, and later on in the South Island, rendered it necessary, if values were to be maintained, that farmers should immediately send their stock to the freezing-works. Further, delays in the discharge of vessels, due to the serious congestion of shipping at the London docks, the loss of the steamers " Kaipara " and " Tokomaru," and the inability of shipbuilding contractors in England to complete a number of vessels ordersd for the New|Zealand trade and due for delivery early in the current year, have all tended to accentuate the difficulties. The Government has been in the closest touch with the representatives in New Zealand of the various shipping interests, and has been in negotiation with the Secretary of State for the Colonies through His Excellency the Governor with a view to mitigating the trouble. It also has been in communication by cable with the High Commissioner, and has made representations to the Government of the Commonwealth of Australia with the object of securing tonnage from Australia. As a result of these efforts the Government was able to arrange for the return of three steamers from Egypt, the despatch of two steamers in ballast from Great Britain, and the diversion of two steamers from Australia. The expense incurred in connection with the return of the two steamers from Great Britain is being borne by the Imperial Government. In February last the Imperial Government requisitioned the whole of the beef, mutton, and lamb available for export from the Dominion. A scheme for giving effect to the requisition was submitted to a conference of representatives of freezing companies, the Board of Agriculture, producers, and other interested parties, and approved by them. It was accepted by the Imperial Government and brought into operation at the beginning of March, a special branch of the Public Service, known as the Imperial Government Meat-supply Branch, being established for the purpose of handling the business. The meat then in store amounted to 1,383,627 60 lb. carcases. The initial shipment went forward by the s.s. " Ruahine "on the 12th March. The total shipments on behalf of the Imperial Government up to the 31st July were 151,367 quarters beef, 1,296,995 carcases mutton, and 1,747,596 carcases lamb. The total payments to freezing companies and producers up to that time amounted to £3,022,344.