H.—44.

Tonga. The table given hereunder shows the values of New Zealand's exports to and imports from Tonga in each of the past five calendar years : —

The value of our export trade with the Kingdom of Tonga has shown a steady decline for some years past. Imports, on the other hand, have shown an equally steady tendency to increase, this being due to greater purchases of bananas, our principal item of import from Tonga. In 1934 this item was valued at £12,115. The values of the principal commodities exported to Tonga from New Zealand m 1934 were as follows : Tinned meats, £3,338 ; meats, all classes other than tinned, £365 ; sugar, £1,241 ; provisions, £577 ; timber, £1,654 ; miscellaneous hardware and ironmongery, £277 ; cordage and rope, £160 ; butter, £204. Trade with Europe. The Government recently announced its decision to appoint, with headquarters at Brussels, a Trade and Tourist Commissioner for New Zealand in Europe, and the Secretary of this Department, Mr. G. W. Clinkard, has been appointed to fill the new post. _ _ The establishment of this office in Europe gives recognition of the fact that the Continent, with its industrial enterprises and population, is one of our most important present and potential markets both for foodstuffs and raw materials. Direct official representation, which allows for continuous exploration and personal contact with prospective importers, must serve a very valuable purpose. New Zealand firms at present exporting or desirous of exporting to European markets are experiencing the greatest difficulties in ascertaining and meeting the changing requirements of the authorities controlling imports, and it will be part of the duty of the Trade Commissioner to see that New Zealand exporters are kept constantly and fully informed, and wherever possible assisted, in overcoming the restrictive provisions of European trading and financial laws. There is already a trade agreement in force between Belgium and New Zealand, this having been finalized at the end of 1933. Under this agreement each country granted the other most-favoured - nation treatment. New Zealand, in exchange for concessions in duties on cheese, flax yarns and products, apples, wool, hides, and tallow, agreed to admit certain goods from Belgium at rates of duty below the general tariff. The following table, showing trade with Belgium, discloses that our exports to that country increased considerably during 1934, A further trade agreement lias recently been finalized between Sweden and New Zealand, whereby each country has agreed to accord to the other the same treatment in matters of commerce, Customs, and navigation, as is or may be accorded to the most-favoured foreign country. In addition, the Swedish Government have undertaken to admit New Zealand apples at a reduced tariff rate, it having been realized for some time that if a reduction in such duties could be obtained there would be a good prospect of that country taking a considerable quantity of our apples. During the past few years New Zealand has imported from Sweden goods of a value considerably in excess of the value of products exported to that country. It is confidently expected that the concession which has been obtained from Sweden will help to improve our balance of trade with Sweden, and it is hoped will be of great assistance to our apple-growers. The following table shows, according to the New Zealand statistical records, the value 01 our export and import trade with principal European countries for each of the past three calendar years :—

11

Year ended 31st Deceember, Exports to Tonga. Imports from Tonga. £ £ 1930 47,958 19 1931 .. .. 29,926 625 1932 27,266 9,412 1933 .. ■■ 19,407 8,331 1934 .. .. .. 12,948 13,282

1932. 1933. 1934. Exports to— £ ( N - Z ") £ ( N - Z -> Germany .. •• 289,917 376,886 944,310 JSe 7 ;; 508,960 738,176 1,228,699 BeMum-Luxemburg Union .. •• 167,629 330,284 612,646 Tt X . • ■ 85,353 97,330 205,673 Netherlands " " .. - 64,484 64,827 165,074 Switzerland 1:865 1,219 699 Sweden 20,925 33,984 117,529 Norway 3,693 2,908 4,098 1,142,826 1,645,614 3,278,728 Imports from- #«*•> «»«•> £(Stg) Germany •• 459,971 378,753 386,116 France !! •• .... 269,737 198,639 192,653 Belgium-Luxemburg Union .. .... 179)864 138,620 109,712 Ttaiv .. .. ■■ 119,521 115,888 153,948 Netherlands .. .. 109,145 Switzerland •• 87,256 87,987 73,029 Sweden " " ■■ •• 235,551 199,562 194,652 Norway ! 42,177 36,903 46,495 1,503,222 1,24-9,789 1,268,295