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EEPOET.

The Extension of Commerce Committee, to which was referred the draft of the proposed Reciprocal Treaty between New Zealand and the Commonwealth of Australia, has the honour to report that it has carefully considered the proposals in the said treaty contained, and has taken evidence thereon ; and, while recognising the desirability of promoting reciprocal trade relations between New Zealand and Australia under mutual advantageous conditions, regrets that it is unable to recommend the ratification of the treaty submitted, on the ground that any advantages which would accrue to this colony would, in its opinion, be outweighed by the sacrifices involved. Thos. Mackenzie, 2nd October, 1906. Chairman.