H.—44,

The sources of New Zealand's imports in 1936 are set out in the table hereunder, which includes, for comparative purposes, the two previous years. In addition to total figures, percentages of total imports are given.

Source of New Zealand's Imports (excluding Specie).

The 1936 figures show that, practically all countries participated in the general rise in the value of imports, the most outstanding increases being those of the United Kingdom, Australia, Canada, and the United' States of America. A decrease in the actual proportion of total imports was' experienced in the case of the United Kingdom, while both Canada and Australia improved their positions. Trade with the United Kingdom. With exports from New Zealand to the United Kingdom at £45,492,989. and imports from the United Kingdom amounting to £21,852,347 during the calendar year 1936, increases of £6,571,421 and £1,379,854 respectively are recorded over 1935 figures. Notwithstanding these marked increases in value, exports to the United Kingdom represented 80-15 per cent, of total exports in 1936, as compared with 83-63 per cent, in 1935. Imports from the United Kingdom in the same two years represented 49-51 per cent, and 50-39 per cent, of total imports respectively. In considering the importance of the United Kingdom as a market for our produce due regard must, be paid to the fact that, owing to the lack of direct shipping facilities to the Continent, a considerable entrepot trade in New Zealand produce has developed between the United Kingdom and Continental countries. Wool is the chief commodity entering into this entrepot trade accounting as much as 80 per cent., while hides and skins account for a great portion of the Dairy-produce was at one time an important item, but with the development of agrarian policies of self-sufficiency by Continental countries re-exports of these commodities have fallen ofE considerably, except to Northern America. This entrepot trade in 1934 was valued at £5,354,425 sterling, while in 1935 the amount was £3,885,986 sterling, there being a fall in the value of New Zealand wool re-exported of approximately £2,000,000 from £4,500,000 to £2,500,000. The imports from the United Kingdom comprise mostly manufactured goods, the most important item of which is motor-vehicles, which has shown a remarkable and progressive growth in value since 1932, from £517,408 in that year to £2,674,155 in 1936. Cotton piece-goods and machinery are other very important items. The table below sets out the more important of our exports to the United Kingdom over the past two years, together with the percentage quantity of the United Kingdom's total requirements supplied by New Zealand.

6

3.934. 1935. 1936. Value - 1 centage. V-»- cgge. | British possessions, protectorates, &c.— £(N.Z.) £(N.Z.) £(N Z ) United Kingdom .. .. .. 15,789,761 50-38 18,283,884 50-39 21 852 347 49-51 * nd f 667,552 2-13 571,627 1-58 554,102 1-26 C e yJ° n ■■ •• 585,689 1-87 633,594 1-75 750,982 ]-70 South African Union .. .. .. 56,092 0-18 55,800 0-15 119 385 0-27 Canada .. .. .. .. 2,098,610 6-70 2,450,616 6-75 3,325'692 7-53 Australia .. .. .. .. 3,238,124 10-33 3,955,677 10-90 4,941,313 11-19 "• " " •• 103,166 0-33 80,084 0-22 95'802 0-22 Other British countries .. .. .. 600,619 1-92 571,401 1-57 558,435 1-26 Totals, British countries .. .. 23,139,613 73-84 26,602,683 73-31 32,198,058 72-95~ Foreign countries and possessions— United States of America .. .. 3,749,559 11-96 4,534,086 12-50 5 525 431 12-52 yrance 240,813 0-77 221,982 0-61 '215'll5 Ō-49 Germany .. .. .. .. 482,644 I-54 534,442 1-47 748 374 1-70 Belgium 137,139 0-44 217,516 0-60 409,102 0-91 .J-, iT •• •• •• 836,595 2-67 1,100,177 3-03 1,328,199 3-01 Dutch East Indies .. .. .. 1,381,974 4-41 1,437,379 3-96 1,722 802 3-90 All other foreign countries .. .. .. 1,371,215 4-37 1,639,279 4-52 1,987,245 4-52 Totals, all foreign countries .. 8,199,939 26-16 9,684,861 26-69 11,936,268 27-05 Totals, all countries .. .. 31,339,552 100-00 36,287,544 100-00 44,134,326 100-00