H.—44,

Principal Imports into the United Kingdom of Products of New Zealand Origin, with Percentage of Total Imports of such Commodities into United Kingdom.

The table above discloses the fact that New Zealand dominates the market in so far as frozen and chilled mutton, lamb, cheese, crossbred wool, hides and skins (other than woolled) are concerned, while in the case of pork, butter, and tallow she is the largest single exporter to the United Kingdom. The declared policy of the United Kingdom to encourage home production of dairy-produce and the safeguarding of the live-stock industry of Great Britain may have a very important bearing on the trade of New Zealand with the Mother-country in these primary products. The strong sentiment of the Dominion for closer trade relations with the Empire, and particularly with the United Kingdom, is evidenced in a practical manner by the fact that 73 per cent, of our total imports were of Empire origin in 1936, the imports from the United Kingdom being 49-5 per cent. As the result of discussions at the Imperial Economic Conference and of the trade mission of the Hon. Walter Nash, it is hoped that intra-Imperial trade will be still further increased. Trade with Australia. Our total trade with Australia still continues to expand, as is shown by the table hereunder, which sets out the value of this trade over the past five years, together with the visible trade balance :—

Total Trade with Australia.

While, the value of New Zealand's exports to Australia increased by only £61,664 in 1936 as compared with 1935, the imports from Australia increased by £1,049,579 ; the percentage taken by Australia of our total exports shows a further decline from 3-83 per cent, in 1935 to 3-25 per cent, in 1936. Imports, on the other hand, show an increase of from 10-90 per cent, to 11-19 per cent, of total imports. The increasing industrialization of Australia has had the effect of augmenting the quantity and value of manufactured articles imported from that source into the Dominion, and it may be mentioned that imports of hardware and machinery, steel, dried fruits, cut tobacco, timber sleepers, and cream of tartar show major increases. The Department, acting in collaboration with the Customs Department, is keeping the closest possible watch on importations, particularly of goods of a class which are already being made in New Zealand, in order to ascertain the effect of any increased importations upon the present position and future development and expansion of those local industries. In a number of instances where circumstances have warranted it action has been taken to open negotiations with the Governments of the countries concerned.

7

1935. 1936. Item - iUnit. Percentage Percentage Quantity. of Total Value. Quantity. of Total Value. Imports. Imports. £(stg.) £(stg.) Chilled beef .. .. .. Owt. 110,697 1-3 177,964 228,263 2-6 320,301 Frozen beef .. .. .. „ 464,758 27-1 606,849 277,900 18-6 344,007 Boned beef .. .. .. „ 217,617 36-6 302,853 210,453 31-6 285,586 Tongues, &c. .. .. .. „ 22,257 3-35 48,797 23,299 3-18 49,820 Veal, chilled and frozen . . .. „ 101,297 56-3 168,092 107,561 56-2 179,534 Mutton, frozen and chilled .. 1,041,563 60-7 1,754,720 888,864 66-1 1,616,778 Lamb .. .. .. „ 2,591,399 51-9 8,063,996 2,641,880 53-3 8,266,051 Pork, chilled or frozen .. .. „ 490,301 53-5 1,279,103 579,086 56-5 1,500,208 Cheese .. .. .. 1,762,915 64-9 4,198,564 1,681,147 62-8 4,773,989 Butter .. .. .. „ 2,637,502 27-4 11,571,543 2,791,914 28-6 13,445,227 Apples .. .. .. „ 296,130 4-08 443,902 377,480 6-67 434,136 Wool, crossbred .. 1,0001b. 150,992 45-5 5,890,527 208,269 56-0 8,389,333 Tallow .. .. .. Tons. 6,523 47-8 170,165 10,316 61-3 254,884 Hides and skins— Oxandcow.. .. .. Cwt. 77,097 7-43 181,684 59,419 5-6 150,475 Sheep and lamb, woolled .. „ 89,285 20-3 259,562 62,884 13-96 258,512 Other than woolled .. .. No. 3,885,367 64-5 299,911 2,890,356 58-3 314,435

Year ended 31st December, Total Trade. ! Exports to ! Imports from Excess of Imports Australia. Australia. over Exports. ■ i I [__ f(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. 3,813,153 1,444,860 2,368,293 923,433 1933 .. .. 3,969,403 1,393,311 2,576,092 1,182,781 1934 .. .. 5,120,640 1,882,516 3,238,124 1,356,608 1935 .. .. 5,739,209 1,781,811 3,957,398 2,175,487 1936 .. .. 6,784,788 1,843,475 4,941,313 3,097,838