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No. 74. New Zealand, No. 278. My Lord,— Downing Street, 11th August, 1911. I have the honour to transmit to you, for the information of your Ministers, the papers noted below on the subject of the importation of food products, &c, into Mexico. I have, &c, L. HARCOURT. The Officer administering the Government of New Zealand.

Enclosures. Sir, — Mexico, 4th July, 1911. In reply to your circular despatch, No. 21023—Commercial, of Ist June, I have the honour to enclose copy of a very interesting report by the British Vice-Consul at Guadalajara upon the importation into Mexico of foodstuffs, &c. Mr. Holms inserts some valuable remarks upon the importation and use of rabbit-skins into this country, and I therefore have the honour to enclose an extra copy of the report, believing that the information it contains will be of interest to the Australian Government. I have, &c, The Right Hon. Sir Edward Grey, Bart., M.P., &c. T. B. Hohler.

Report on Importation of Foodstuffs into Mexico, by Mr. Vice-Consul Holms at Guadalajara. I beg to acknowledge receipt of your circular, No. 159, dated 27th instant, which refers to the importation of articles of Australian origin into foreign countries, with special reference to food products. Wheat. —Until the opening of the Manzanillo-Guadalajara railroad, which connects through to Mexico City, the wheat imported into this country had been mainly derived from Kansas. With the opening of that railroad, rates from Manzanillo have permitted the competitive entry of Western American and Canadian wheat, and the supply of imported wheat is now drawn mainly from the Pacific. For the use of millers in this country No. 1 Bluetem, No. 1 Red Walla Walla, and Turkey Red are preferred. Probably the most important dealers in wheat on the Pacific coast are Messrs. Balfour, Guthrie, and Co. ; Messrs. Grace and Co. ; Messrs. Otis, McAllister, and Co.—all of San Francisco, California, United States of America. As every one of these firms is also interested in Far Eastern trading, it might not be amiss for Australian shippers of wheat to address themselves to the above-mentioned houses. It is scarcely necessary to mention that Mexico sustains a Customs tariff against wheat at the rate of 3 cents per gross kilo., but this duty is rebated during this " open " time that importation is possible. Wheat is very frequently consigned to buyers in flour-sacks, as a heavy duty exists on sacks when they are shipped separately. By receiving his shipments of wheat in floursacks the miller effects a decided saving. Wheat has been successfully imported from the Argentine into Mexico. I believe that on this point the firm of Arthur G. Evans and Co., of Mexico City, can furnish information, as I understand that they received a shipment or shipments from Buenos Aires in 1910. Maize has been imported into Mexico from South Africa in 1909-] 0, and it would therefore seem feasible to import Australian maize also. It must Be' noted that the year cited was exceptional, and that the duty of 80 cents per 100 kilos, gross has very rarely been, taken off. Butter. —Considerable quantities of American butter are sold in Mexico, while even Danish butter is procurable in all large centres. Rabbits and Rabbit-skins. —Without refrigerator-steamer service between the Mexican Pacific slope and Australia it is impossible even to experiment in the importation of rabbits for food. Rabbitskins, however, are very largely used in this country for the manufacture of the well-known " charro " hat. I understand that at the present time the rabbit-skins used for the manufacture of these hats come from Italy. It is highly probable that the skins are cured in Italy, but that they have their actual Origin in Australia. If this is indeed the case, it should be of interest to learn if no firm in Australia prepares skins as required by the Mexican market. Messrs. Tarden and Co., Portal de Mercaderes, Mexico, D.F. ; Sanjenis Hermanos, Refugio 5, Mexico, D.F. ; and Zolly Hermanos, Sues., Portal de Mercaderes, Mexico, D.F., are probably the largest manufacturers of hats in this country. From any one of these firms samples of rabbit-skins could be procured and forwarded to the High Commissioner for the Australian Commonwealth.

Date. Description. From H.M. representative at Mexico. :th July, 1911