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the great depression of the early 1930'5, when the commercial economy came largely to a standstill with the closing of most trade stores and the lapsing of much of the plantation activity. Judged by the commercial history of the last three decades, the level of " normalcy " in terms of world market demand and price for the local products is below the present level. A considerable recession may therefore be expected, and it would possibly affect not only the trade position, but also the public revenues and political temper of the Territory.

9. The trends here referred to can be seen by sampling the statistics of external trade and commerce at five year periods, and in the latest year

For 1946 the exports were as follows :

The principal imports are foodstuffs such as flour, biscuits, and sugar, together with drapery and apparel, petroleum products, and hardware. 10. The trade relations of the Territory are diversified internationally. Copra and cocoa-beans are sold in European and American markets for the most part, as New Zealand is not in a position to absorb them in large quantities. Similarly manufactured imports come from the industrialized areas of Europe and North America. It is primarily in these respects that the trade position of the Territory is vulnerable to changing market conditions. At the same time the Territory is relatively stable and increasing trade relations directly with New

Vooi. Value of Value of Total x ear. Exports. Imports. Trade. £ £ £ 1919 532,500 291,368 823,868 1924 361,418 274,803 636,221 1929 293,938 288,849 582,787 1934 128,117 92,784 220,901 1939 220,409 194,736 415,145 1944 391,317 460,764 852,081 1946 719,050 478,695 1,197,745

Product. Quantity. Value. £ Copra 13,795 tons 340,669 Desiccated coconut 568 tons 50,462 Cocoa-beans 1,885 tons 207,109 Bananas 172,823 cases 86,421 Dried bananas 46 tons 10,118 Rubber 80 tons 17,827 Others .. .. 6,444