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REPORT

Sir, — I have the honour to submit the annual report and statement of accounts of the Marketing Department (Export Division) for the year ended 31st July, 1947. This report relates to the 1946-47 production season (the second post-war year), and the transactions in respect of dairy-produce, meat, tallow, woolly sheep-skins? hides, and linen flax are reviewed under the appropriate headings. I have, &c., Gr. M. POTTINGER, The Hon. the Minister of Marketing. Acting-Director. CONTRACTS BETWEEN THE UNITED KINGDOM AND NEW ZEALAND GOVERNMENTS FOR THE SECOND POST-WAR YEAR, 1946-47 Details of the four-year contracts (1944 to 1948) for butter, cheese, and meat were given in the 1945 report, and details of the extension of the contracts to 1950 in last year's report. In terms of the contracts, notice was given that the New Zealand Government desired reconsideration of the price and terms of the contract for dairy-produce, but of the terms only in the case of meat, and discussions were held with the Milk Products Division and Imported Meat Division of the United Kingdom Ministry of Food. In these discussions, Mr. Gr. A. Duncan, Chairman of the New Zealand Wool Disposal Commission, who was in London at the time, represented the New Zealand Government, together with Mr. H. E. Davis, and Mr. N. S. McClumpha, of the New Zealand Marketing Department in London, also Mr. L. C. Webb, Director of Stabilization. At the request of the New Zealand Government, Mr. W. E. Hale and Mr. A. Linton, Chairman and member respectively of the New Zealand Dairy Board, took part in the discussions, together with Mr. A. H. Ward, of the New Zealand Dairy Board, and Mr. S. A. Chisholm, London Manager of the New Zealand Meatproducers' Board. Details of the amended prices and terms agreed upon for the 1947-48 season are given in the appropriate sections of this report, as are also the contract prices and terms for tallow and other products handled by the Department. AGREEMENT WITH DAIRY AND MEAT INDUSTRIES FOR YEAR ENDING 31st JULY, 1947 In last year's annual report was set out the general terms of the agreement with the Dairy and Meat Boards in respect of debits to the . Industry Stabilization Accounts for the year ending 31st July, 1947. No schedule of actual debits has yet been approved, and meantime the distribution between the Dairy and Meat Accounts is the same as for the 1945-46 period.

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