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white. At the present time there are indications of cheese-makers going to the other extreme, and now shipments of coloured cheese are beginning to arrive, particularly of Canadian new season's make, in considerable quantity. Present arrivals from New Zealand also would indicate that cheese-makers there have been increasing their output of coloured. lam afraid this will be found to be a mistake, as the market of this country having got accustomed to white, the sudden large offerings of coloured cheese may upset it, and result in a premium being paid for white. This season the temperatures at which cheese has been carried on board ship have been raised s°, which I consider is an improvement. The condition of arrivals has been uniformly satisfactory, and no complaints have been received by me concerning damage on shipboard. As in the case of butter, arrivals have been more regular, and discharge has been conducted satisfactorily. Butter-adulteration. During the year close attention has been given to butter-adulteration in this country. Recognising the importance of the matter to the New Zealand producers, I have kept in touch with the several associations interested in the butter trade who have been doing their utmost to keep this question prominently to the front. Reports have been made by me to you on the subject. The recent dissolution of Parliament, with the accession to office of a new Government, has given fresh impetus to our efforts. During the election questions dealing with the sale of butter and with the adulteration of it were put to candidates for Parliament, and, as far as possible, interest generally was roused throughout the country. Meetings have been held in many districts, and urgent representations have been made to the new Minister of Agriculture. Earl Carrington, the new Minister, had fortunately formerly shown considerable interest in the subject, and had repeatedly expressed himself as in entire sympathy with the movement to suppress fraud in the butter trade. The present representative of the Board of Agriculture in the House of Commons, Sir Edward Strachey, is also closely identified with the subject, and has all along been a very strong supporter of the movement. Consequently, hopes are entertained that more consideration will now be given to the question than was given to it by the late Government. The several deputations that have already waited upon the Minister of Agriculture have been favourably received by him. The attention of Lord Carrington has also been specially drawn to the matter by yourself, by letter, on lines similar to those previously sent to his predecessors in office, in which you direct his attention to the necessity of prompt action being taken in introducing a Bill dealing with the butter trade. It is hoped, therefore, that attention will be paid by the present Government to the subject without delay. Although the Government in the colony is extremely alive to the injury to the New Zealand butter trade occasioned by the unsatisfactory state of the law in this country relating to the sale of butter, and representations have been made by them to you with a view to having the conditions here improved, and by you to the British Government, there appears to be a lack of support given by the butter-pro-ducers in New Zealand to the efforts that are being made on their behalf for the improvement of matters. This year there has been, as last, a very considerable supply of fresh butter made by them and shipped from the colony. The supply of this fresh butter greatly helps the perpetration of the frauds of which the New Zealand producers complain. It is readily purchased by " fakers " for the purpose of manipulation and adulteration. It seems surprising that butter-makers in the colony, who ask for assistance in improving the market here for the sale of their butter, should, at the same time as they make that request, be doing what is necessary to encourage the continuance of these frauds, so frustrating our efforts for their welfare and hindering the improvement they demand. I understand that a Select Committee of the House of Commons has been appointed to make full inquiry into the subject of butter-adulteration. Evidence will be taken and a report drawn up and submitted to Parliament by the Committee. It is to be hoped that the evidence will be satisfying, and the report of such weight as to convince the Government of the necessity for introducing a Bill dealing with the question at the very earliest opportunity. I am afraid, however, that no amendment to the present law can be hoped for during this session. Boracic Acid in Butter. I regret to report that during th N year a prosecution was instituted by the Lancashire County Council authorities against a retailer for selling New Zealand butter containing 0.77 per cent, of boracic acid. On coming before the Magistrates, however, the case was dismissed, the Bench arriving at the conclusion that the prosecution had not made out their case. Although, at the request of the County Council authorities, the Magistrates stated a case for appeal, no further action has been taken in the matter. It is regrettable that an action such as this should have been brought against New Zealand butter. I had always understood that in no case did any factory company in New Zealand apply more than 0 - 5 per cent, of boracic acid. Although there is no legal standard in this country for the application of boracic acid to butter, thrre is a general understanding that up to O5 per cent, shall not be objected to by the authorities. A fe~ years ago a Committee, which was appointed by the House of Commons to inquire into the butter laws, recommended that that percentage should be legalised. This recommendation, however, has never been adopted, and there is no law at present on the subject. I desire to imprsss upon the butter-producers in the colony the very great risk that is run in damaging the reputation that has been gained for New Zealand butter on the markets in this country by applying more than 0.5 per cent, of boracic acid to it when made in the colony.