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of those countries. The Commonwealth of Australia and the Union of South Africa relinquished control at the 30th June of this year, and these, countries also have a tariff protection on sugar. In view of the decision to decontrol sugar in. August, it will be fitting to place on record a brief history of the Government's operations. New Zealand experienced the effect of war conditions as early as 1914, during which year there were no less than eight revisions of price. In addition there were complaints in regard to shortage of supplies, and alleged preferential treatment. Even before the war, during 19.1.2, the Cost-of-Living Commission reported that certain complaint in this regard were not without foundation. Early in 1915, at the instance of the Government, the Cost-of-Living Commission, presided over by Mr. Justice Stringer, effected an arrangement with the Sugar Company whereby the requirements of the Dominion were to be supplied, for the year ending the 30th June, 1916, at a price of £21 per ton. Complaints still continued in regard to the inequality of the basis of distribution and the general shortage of sugar. The Board of Trade instituted an inquiry in 1916, and satisfied itself that the Colonial Sugar-refining Company had done everything in its power to ensure an equitable distribution. In June, 1916, the Board effected an extension of the arrangement to supply the Dominion's requirements until the 30th June, 1.91.7, at a price of £21 per ton. This was further extended for another year at £22 per ton, which was considerably below world parity. A further arrangement was made with the, Sugar Company to supply the requirements of the Dominion for the nine months ending the 31st March, 1920, at £23 15s. per ton. It is estimated that the savings effected by these arrangements amounted up to that time to approximately £4,000,000. Government Purchase of Sugar. Early in 1920 negotiations ,bogan for a further arrangement, but the Sugar Company represented that the heavy increases in the cost of production of raw sugar and the unstable nature of the world's markets made it impossible for it to enter into anything like the old arrangements, and indicated that it would be, preferable for the Government to purchase outright the whole crop. The arrangements between the Government and the Sugar Company in respect to the years 1915-19 were in the first place negotiated for the; purpose of removing any cause for complaint in. regard to tin; question of preferential treatment by having official supervision of the distribution. The main object of the new proposal, however, was to ensure continuity of supply, as the Sugar Company was not prepared to take the risk, of holding their stocks for a lengthy period when an immediate market offered elsewhere. The world shortage strengthened the Sugar Company's economic position, as it could have remained out of the New Zealand market for a year or more, without its trade being seriously prejudiced by outside competition. The company offered to sell the whole of the Fijian crop —subject to a small reservation -at £35 10s. per ton raw f.o.b. Fiji. At this time inquiries showed that Cuban sugars were quoted at £96 per ton, and Javan up to £80. A consignment of Javan sugar landed, at this time cost a local manufacturer £102 per ton. A contract was entered into by the Government to purchase outright 65,000 tons of raw sugar to be refined and distributed on Government account. The wholesale price of refined sugar was fixed at £47 per ton f.o.b. Auckland, and the maximum, retail price 6|d. per pound. The comparative retail prices at this time in the United States of America were Bd. and lOd. per pound, and in the United Kingdom Is. and Is. 2d. per pound. The wholesale price in Australia was fixed at £49 per ton and. the retail price 6d. per pound. While New Zealand obtained the 1920 supply at £36 17s. 6d. per ton c.i.f., the average price paid by the British Government during 1920 was £67 Bs. 6d., and the average paid by the Australian Government for the same period was £59 19s. sd. This contract was an entirely new departure. Under the previous arrangements the Sugar Company undertook all risks of the market, but under the new arrangement the Government purchased the sugar f.0.b., paid the cost of transport and charges to Chelsea —in fact, became the actual owners of the sugar, and bore the expense of refining and selling. The contract finished with a small profit, a portion of which was utilized to lower the price for the succeeding period, and the balance to meet the loss arising out of the stranding of the " Atua." To avoid disturbing the established channels of trade the Board of Trade appointed as sub-agents wholesale merchants who usually handle sugar, and to ensure that the distribution would be on an equitable basis a limited system of rationing was inaugurated. Each retailer's supply of sugar was allotted on thcl>asis of his grocery turnover, and to prevent duplication each, was, required to nominate, a merchant through whom supplies would be drawn. The following order of essentiality was decided upon: (.1) Householders and general domestic requirements; (2) jam-manufacturers and fruitpreservers ; (3) manufactures other than sugar-boilers and confectioners, including vinegar, sauce, and jelly-crystals ; bakers and manufacturers of essential foodstuffs ; (4) sugar-boilers and confectioners ; (5) cordial, syrup, and aerated-water manufacturers ; (6) brewers. The Board of Trade placed the distribution on a stable basis, and endeavoured to arrange as far as possible for regular shipments at frequent intervals, to obviate the necessity of merchants carrying large stock's. A fiat rate of commission for subagents was instituted, in place of the scale rate hitherto in vogue, which had caused so much trouble, and which ultimately led to the well-known case against the Merchants' Association under the Commercial Trusts Act in 1912. In fixing the retail price consideration was given to retailers' handling-expenses, and a price was fixed each, time to allow of a faitmargin of profit. At the expiry of the first contract, in 1921, the company intimated to the Government that until trade conditions were more normal it would not be possible to return to the, pre-war methods of conducting business, and it offered the new season's crop to the, Government at £26 per ton raw f.o.b. Fiji. The Government made a counter offer which resulted in a price of £22 12s. 6d. per ton being