H.—44.

As will be observed substantial increases occurred during the past year in sales of timber peas sausage-casings, sheep-skins, pumice and sandstone, and gold. ~ ■ ' P ' + j T ke A ustrahan Commonwealth Government has recently announced the adoption of a new external trade policy mvo ving the introduction of an import licensing system. The objects of the scheme are tomcrease the volume of Australian primary produce, to expand secondary industries, and to improve J iral and industrial employment. All goods of British origin are to be exempt from the licensing proposals, so that no adverse effects will be sustained by New Zealand as a result of the introduction of Ae scheme. There has been insufficient time so far to ascertain what effects the new policy will have on New Zealand s external trade, but one minor result has been that the direct shipping service between T modlfled 80 that the Japanese steamships now call at Australia en route to New Zealand from Japan or vice versa. In other respects the direct service remains unaltered the only difference so far as New Zealand is concerned is that the voyage takes three or four days longer than when the ships did not make these calls at Australian ports. With the settlement of the present Japanese-Australian trade difficulties it is anticipated that the service will again become direct between Japan and New Zealand with no calls at Australia during the voyage. Trade with Canada. The value of our export import, and total trade with Canada in each of the past five years is Shorts and LpST 8 togeth6r Wlth the perCenta S e whiok sucll trade b ears to the total

It is gratifying to note that despite generally adverse conditions our trade with Canada has shown ,%4toK e^ nt t e > past tW Y ears - our sports have increased in value from in 1932 to £656,984 m 1934, while imports have increased from £1,107,074 in 1932 to £2 450 616 in 1935 n the same period the percentage of our total exports taken by Canada has increased fromO-69 to 1-41' and the percentage of our total imports from Canada has incieased from 4-49 to 6-75 The values of the principal items exported to Canada from New Zealand in 1935 are shown below m comparison with the figures for the previous four ears '

Every effort has been made by the New Zealand Trade and Tourist increase the sales of our principal exportable products, and in numerous instances sales have definitely resulted as a direct consequence of his efforts. ueumreiy The trade in fruit is showing steady expansion. The market is very restricted as to time—May June, and early July—when Canadian stored apples are usually unavailable in quantities in eastern cities During these months of the current year and outside the fiscal year under review the quantities exported to Canada have again increased, and an initial experiment in the sale of New Zealand pears is being tried out. Usually Canada proves itself to be a payable market the returns received being equal to if not slightly in excess of, the values realized on the English market. Competition is usually very keen, as New Zealand fruit is sold side by side with stored ancles of domestic and United States production. The fact that our fruit retains fts freshnessL favourabl factor m meeting this competition. The Canadian Government some time ago imposed a fixed valuation foi duty purposes against foreign apples 111 order to assist in the profitable marketing of

6

Year ended 31st December, Exports to ■ Pe of Imports from P of Canada " Exports. Canada. Total Trade. inoi £(N.Z.) £(N.Z.) f /M 7 \ 256, 890 0-74 1,342,321 5-06 1,599 211 1933 244,160 0-69 1,107,074 4-49 1,351,234 JS 660,875 !1I 1,264,932 4-93 , 1,825,807 S 697,865 1-46 2,098,610 6-69 2,796,475 19J5 656,984 1-41 2,450,616 6-75 3,107,600 ~ ~ : _

Item ' 1931 - I932 - 1933. J 1934. J 1935. -n i, £(N.Z.) £(N.Z.) : £(N.Z.) £(N.Z) ! M Z \ cw •• '■ 20 'I?I 2M « 31 ' 320 XSl a ■" '• ' 213 9 2,133 201 4 731 Sausage-casings .. . m ,761 40,523 129,129 156,645 223 633 J° 01 lt '• 57 ' 540 81,295 149,245 301 058 197 163 Hides, pelts, and skms .. 25,152 45,749 196,562 153,764 161 837 ™ " •' n ' 153 4.757 3,363 6,919 s'813 Frozen meat .. 2,719 3,884 4,143 2 299 2 503 fe™ - •• ■ 4 jg p*» i3 - 35s »:S. 23S Jlauri-gum 4,074 3,096 2,146 2,960 1 709 Set •• •• 1,291 2 ' 614 604 793 mm 525 .. 5,207