H.—44.

value of our exports show an increase over the previous year's figures. Exports to other countries m Europe not listed m the table were greater in 1935 than they were in 1934. The total direct exports to Europe were less than half the previous year's figures. On the other hand, importations into New Zealand of the products of every European country listed, with the exception of i ranee, Poland, and Denmark, showed increases during the vear under review over the figures for 1934. The outstanding increases were in the products of Belgium, Russia Czechoslovakia, Germany, and the Netherlands. With regard to the above figures of the Dominion's export and import trade with various European countries, it must be observed that while imports are recorded according to countries of origin exports are recorded according to the country to which goods are consigned from New Zealand. A considerable amount of New Zealand produce is consigned to the United Kingdom, and from there it is re-exported to various countries on the Continent. The recorded statistics indicate that the goods are exported to the United Kingdom, whereas they are destined finally for various continential ports. Recent statistics of the re-exports of New Zealand produce from the United Kingdom are not available, the last year for which particulars are published being 1933, when the value of such re-exports was £5,264,804. Direct exports to the eleven European countries enumerated in the foregoing table consisted principally of the following products : —

m development of the market for New Zealand apples in Holland is receiving attention from the Irade and Tourist Commissioner at Brussels. A fairly large quantity of apples is imported into this country for re-export to other European countries, and by this intermediary country it is possible for New Zealand apples to be sent into other countries where, due to various restrictions, quotas &c. it would not be possible for direct shipments to be sent. Efforts have also been made by the Trade and Tourist Commissioner in Europe to secure a quota tor New Zealand m respect of the importation of apples into France, but so far this has not been granted. The office of the New Zealand Trade and Tourist Commissioner in Europe was opened in Brussels m December, 1935. The establishment of this office in Europe gave recognition to the fact that the Continent, with its wide variety of industrial enterprises and tremendous volume of production, together with the large population of the countries in Europe, is of great importance as a potential market for foodstuffs and raw materials produced in New Zealand. A great deal of preliminary work has already been done by the Trade Commissioner in Europe. It is anticipated that the fact of having an office in Europe will prove of material advantage to Zealand. It is realized, of course, that the nationalistic policies adopted by the various countries of Europe, with their numerous restrictions on international trade, make it very difficult for a country like New Zealand to develop a large volume of trade. Much of the work done so far has been of an investigational character with a view to ascertaining what New Zealand products are likely to find a profitable market on the Continent and the best means of introducing our products to potential buyers. The existence of these trade restrictions makes direct representation in overseas markets not merely desirable but essential if the volume of our export trade with European countries is to be increased or even maintained. Trade with the East. The Department has continued to .give special attention to the question of the development of our export trade with the East. During the last year efforts have been made to introduce New Zealand ghee into the East and elsewhere, and, with that object in view, the Department arranged for the despatch of a number of samples of ghee, prepared in different ways and from different types of butter, to be sent to such countries as India, Burma, Ceylon, British Malaya, Dutch East Indies, Hong China, and Fiji, with a view to trying out the markets. Reports were received on these samples, and, on the basis of these reports, further sets of samples ha\Y been prepared by the Dairy Research Institute, which was also responsible for the preparation of the samples previously sent, and the Department has now arranged for these to be despatched to the different countries for the individual markets. When these reports are received the Department should be m a position to know more or less definitely whether New Zealand is able to produce types of ghee which will satisfy the requirements of the different markets.

12

Commodity. Value. Commodity. Value. £(N.Z.) £(N Z ) Wool .. .. .. 1,216,385 Casein .. 2 733 Sheep-skins .. .. .. 133,156 Tallow .. .. 2'()39 Cattle-skins .. .. .. 96,406 Rabbit-skins.. .. .. 2 717 Calf-skins .. .. .. 69,334 Sausage-casings .. 1' 800 Apples .. .. .. 25,618 Fish .. ' '979 Kauri-gum .. .. .. 5,670 Peas .. .. 290 Seeds .. .. .. 3,277