A.—6

in the volume of European trade. Not only to show the significance of that position, but also to suggest where the solution lies, I give another figure in regard to Australia herself and her value as a customer of Great Britain. In 1913 four countries—France, Belgium, Spain, and Portugal, with a population of seventy-four millions —bought £53,000,000 worth of British goods, against Australia's £34,000,000. In the year ending 26th March last the same four countries bought £60,000,000 worth of British goods, and Australia, with a population of six millions, bought the same amount. The increase in the money value of the export to these European countries by Great Britain between those two dates was 14 per cent., and the increase to Australia was 76 per cent. There is possibly a ray of hope in this, for it is obvious that the Dominions are a valuable market, and a market that, if effectively catered for, can meet the difficulty arising out of the increasing competition in European countries. British Trade with the Far East. Now let me turn to the other markets of the world. China and Japan, great customers of Britain, for the year ending March, 1924, together purchased £48,000,000 worth of British goods—somewhat less than Australia, but a very large sum. For the year ending March, 1926, however, they purchased only £31,000,000 —half of Australia's purchase, and a drop of £17,000,000, or 36 per cent. An obvious reply to that statement may readily suggest itself—namely, that the disturbed conditions in China must have affected Britain's trade position there ; but on examining the position it is found that the falling-off of the trade with China was only 21-6 per cent., while that with Japan was 45-6 per cent., which shows that it cannot be explained by the disturbed conditions in China. British Trade with South America. The South American Republics show possibly a more satisfactory position, but if it is analysed we find even here cause for concern. The trade in 1923 was : Imports from Britain £52,700,000, and from United States £62,000,000. In 1926 the imports from Britain had gone up to £60,000,000, while the trade with United States had gone up to £87,000,000; an American increase of 40-3 per cent., as against a British increase of 14-2 per cent. Britain's Share of Empire Trade. The trade with the Empire shows a great increase, but even there I suggest we have to take considerable thought as to what the position in the future is going to be.

Exports of British Produce and Manufactures to Europe and the Empire, 1913, 1923, and 1925-26.

These figures are certainly satisfactory as showing a growth in the proportion of Empire trade; but it has to be borne in mind that the total trade of the overseas Empire has largely increased between those dates, and that the increase from 37 to 44 per cent, in British exports to the Empire does not mean that Britain has taken her full share of the increased trade of the Empire. To give actual figures, taking America as a country for comparison, the exports of America to the Empire in 1913 were £112,000,000 ; in 1925 they were £233,000,000. In 1913 the British export to the Empire was £209,000,000, and in 1925 it had gone up to £310,000,000 ; so that, while it is still substantially greater than America's, the facts are that America increased her trade with the Empire by 108 per cent., and Britain by 48 per cent. The figures of the growth of American competition in Australia are very significant, and I believe show one of the ways in which British trade can really be stimulated by action which we can take.

Competitive Imports from Great Britain and United States of America into Australia, 1921-22 to 1924-25.

(N.B. —For the purposes of the above table, the following articles have been deducted from the list of imports : Unmanufactured tobacco, oils (including petrol and kerosene), and timber. The figures do not include gold and silver specie.)

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1913. 1923. 1925-26. Value ' of°Totaf e Value Percentage of „ , Percentage of Export. Total Ex P° rt ' Total Ex P° rt - £ £ £ Europe .. 178,645,749 34-0 250,077,251 32-6 (33-7) 214,853,638 28-5 (30-0) Empire .. 195.311,399 37-0 300,602,626 39-0 (37-2) 333,410,524 44-2 (41-2) (275,963,384) (294,847,202) (N.B. —The figures in brackets exclude exports to the Irish Free State.)

Share of Great Britain in j Share of Unite A d S * a * es of T ° tal Australian • Year - Australian Competitive Imports. merlCaln Australian Competitive r Competitive Imports. Imports. I Percentage of Percentage of £1,000. Total. £1,000. Total. £1,000. 1921-22 .. .. 52,604 56-7 12,856 13-8 92,800 1922-23 .. .. 67,915 57-0 17,764 14-9 119,053 1923-24 .. .. 63,051 50-8 24,367 19-6 124,081 1924-25 .. .. 68,507 52-6 23,776 18-2 130,985 July to December, 1925.. 33,369 | 49-2 13,224 19-5 67,643 I I