H.— 3B

6

CONDENSED MILK. Payment for supplies of condensed milk purchased on behalf of the Imperial Government by the Department of Munitions and Supplies has been arranged by the Department of Imperial Government Supplies. From the 27th November, 1916, up to the 31st March, 1917, 19,998 cases were shipped, the value being £21,381 ss. SCHEELITE. The Imperial Government, being desirous of obtaining all the scheelite produced in the Dominion, arranged with the Dominion Government to requisition the available supply on its behalf. Operations to this end commenced on the 20th September, 1915. The price paid for scheelite so dealt with was on a basis of £2 15s. per unit of tungstic acid disclosed by assays made in the United Kingdom, with a reduction if the assay fell below 65 units per ton of ore. The agreement with mine-owners expired on the 31st December, 1916, but at the request of the Imperial authorities it was extended to the 31st August, 1917. The price remained unchanged, but an allowance to cover increased rates of freight and war-risk insurance which had taken place since the inception of the scheme was made. The following are particulars of shipments and of payments made to producers : — Tonh , Shipped per " Kotorua" (sunk en route) ... ... 8 Arrived at destination ... ... ... ... 315 En route to Great Britain ... ... ... 27 Total ... ... ... ... 350 Total payments made to date ... £67,480 One marked effect of the requisition of scheelite has been the increase of producers from five recognized companies operating at the beginning of the scheme to forty syndicates, companies, and private producers furnishing supplies of the ore to the Imperial Government through the Department. WOOL. Requisition and Disposal. The most important addition to the operations of the Department in point of magnitude has been the carrying-out of all the details subsequent to valuation connected with the purchase of the wool-clip of the Dominion on behalf of the Imperial Government, an Advisory Committee appointed by the Government taking in hand and advising on all matters prior to valuation. On receipt of advice from the Imperial Government of its desire that the whole of the season's wool-clip for 1916-17 should be made available for Imperial requirements, a series of conferences was held, extending over a lengthened period, between the Hon. Minister (Mr. MacDonald) and growers, brokers, buyers, and others interested in the wool industry. The offer made by the Imperial Government for the season's clip named the price to be 45 per cent, advance on the average sale from values obtained in the Dominion during the 1913-14 season. After much deliberation and negotiation this offer was declined, and a counter-proposal made by the conference that the price should be based on the values ruling in the Dominion in January, 1916. This proposal was submitted to the Imperial Government, and as the result of further negotiations it was finally agreed that the price should be 55 per cent, advance on the average prices realized for season 1913-14. In order to aid the Minister and departmental officers in carrying out the scheme, committees were appointed to advise upon any points which might arise from time to time, and the assistance rendered has been invaluable.