H—3o

Consequential amendments to the Schedules arising from these revised figures will be arranged between our respective officers. 2. Sales to Markets other than, the United Kingdom.—While our need for the maximum quantities of butter and cheese is well known to you, it was agreed that some regard must be given to supplies to other markets particularly those where New Zealand enjoys an established trade. Under these circumstances it was decided that, in addition to sales within the limits of the calendar year programmes to certain specified destinations which are governed by established procedure, New Zealand should also be at liberty to reserve for sale at her own discretion from 1947-48 seasons production up to: 1,500 tons of butter and up to 1,000 tons of cheese. I take this opportunity of confirming that the intentions expi*essed in my letter of the 2nd August, 1946, as regards (a) the period of the contract, (b) the relative volume of supplies of butter and cheese, (c) the distribution of New Zealand butter and cheese in the United Kingdom, and (d) the discontinuance of margarine rationing, still continue unchanged. I am informed that in consequence of the Dairy Products Marketing Commission Act, 1947, the New Zealand Government desires to assign its rights and liabilities under the agreements entered into with the United Kingdom Government for the sale and purchase of butter and cheese to the New Zealand Dairy Products Marketing Commission, and I confirm that the United Kingdom Government agrees to such assignment. In conclusion I should like to express my thanks for the helpful and understanding attitude which New Zealand has taken throughout these discussions. The terms of the contract were approved by the Dairy Products Marketing Commission, referred to on page 7. ALLOCATION OF BUTTER AND CHEESE TO MARKETS OUTSIDE THE UNITED KINGDOM In last year's annual report reference was made to the arrangements under which shipments of butter and cheese could be made to countries outside the United Kingdom, and to the fact that this was now the subject of agreement with the United Kingdom Ministry of Food. Global allocations for the calendar year 1947 were made to the following destinations by the Ministry of Food

5

— Butter. Cheese. Ghee. British Caribbean area— Tons. Tons. Tons. Bahamas 180 60 Barbadoes 240 48 Bermuda 250 150 British Guiana 400 184 British Honduras 90 53 Jamaica 475 281 Leeward Islands 106 62 Trinidad 850 330 Windward Isles — Dominica 6 7 Grenada 45 23 St. Lucia 45 20 St. Vincent 57 6 British Borneo 24 1 Burma 160 35 300 (a) Ceylon 564 324 240 (6) Falkland Islands 32 4 Fiji 23 18 89 (c) Gambia 5 4 Gibraltar 90 (d) 6 162 (d) Gilbert Islands 1 Gold Coast 84 19 Hong Kong 5 22;(e) 254(f); India 215 (c) 760 (c) India (civil canteen stores) 80 , . Kenya-Uganda