A.—6

of disposing of this surplus in Great Britain. lam aware that there is in this country a preferential Customs duty on Empire-grown hops, but we would greatly appreciate any further assistance that can be rendered to put this industry on its feet. To sum up, we want a regular output for our surplus, and, in addition to that, there is no doubt that there is a great possibility, to a limited extent, for any settlers who like to follow this industry. The Empire can easily absorb the hops that it grows and a great deal more, but there is no doubt, as the Prime Minister is aware, that quite a large proportion of the hops consumed comes from foreign sources. Other Items on Agenda. On the subsidiary questions listed in the Agenda under this heading I have only a few remarks to make. We already provide for a deduction from the value of imported goods of any import or excise duty or dumping duty payable in the United Kingdom, and this, I think, meets the desire of His Majesty's Government. Though taxation of non-resident traders is, as a general rule, charged 011 a percentage of their receipts in New Zealand, our law provides that such traders may, if they choose, prove the actual merchanting profit in New Zealand, and on this being done their tax is charged on the actual rate of profit so shown. It is found, however, that as a general rule merchants are quite satisfied to accept the percentage rate. On the subject of standardization, I have to say that British standards are generally adopted in our country and invariably so by Government departments. We have recently set up a new Department of Scientific Research, and it will be the earnest aim of this Department, not only to increase standardization generally, but to ensure that wherever standards are adopted they are British standards. I have no comment to make on the Economic Conference called by the League of Nations, beyond saying that the progress of the League's inquiries will be watched with great interest in New Zealand. Assurance of Markets for Primary Products. May I, in conclusion, enunciate once again a principle that has received support not only at previous meetings of this Conference, but very generally throughout the Empire—that, as the surplus population of Great Britain is transferred, as it must be, to the Dominions, and primary production in the Dominions is correspondingly increased, it is essential that a satisfactory market be provided for the increased products that will be available. There can be no doubt that the natural market, and from all points of view the most satisfactory market, for these products is Great Britain, and I think at this stage it might be well to consider the desirability and the possibility of some directing steps to ensure that the market will be available when required. Having regard to the importance of this aspect of the subject of inter-Imperial trade as a factor in holding together the Empire, I venture to suggest that this might be a fit subject for consideration in the future by a committee of experts. Policy regarding British Films. I would like to add a word or two in connection with the production of British films. I agree with what has been stated by Mr. Bruce, that it is most important that, if possible—we know it is a commercial question —British films should be assisted in every reasonable manner. While I find little fault with films that are produced by foreign countires, I also realise that if that is allowed to go on they will gradually transplant the feelings, aspirations, and possibly the atmosphere, of our countries into new ones, and we are anxious to retain all the characteristics of the people we know best—the British race. For that reason all that New Zealand can do we will do in order that assistance and help and encouragement may be given to the producer so that his films may find a market in New Zealand. We know it is a small market, we realize that, but, on the other hand, if we all make an effort, I believe we can encourage capital in the direction of producing films with all the atmosphere of our British people contained in them. Several times we have made attempts definitely to suggest that every theatre must show at least, we will say, 20 per cent, of British-produced films. The reply has been, even from the British representatives themselves in New Zealand, that it is impossible for them to show that quantity, for the reason that the production is not forthcoming. It is true that we have gone up from about 5 per cent, to 13-1 per cent., which is encouraging, as showing that we are, no doubt, getting more films produced in Great Britain and the Empire than we did previously. When I say " Great Britain," I naturally refer to the Empire as well. We are anxious that we should co-operate and give exactly the same inducement to Sister Dominions as we do to Great Britain. There is a lot more that one could say, but I have endeavoured to condense my remarks, long though they may have been, to as few words as possible, and I thank you for giving me your attention while I have been delivering my speech. STATEMENT BY THE MINISTER OF FINANCE, UNION OF SOUTH AFRICA. General Hertzog: Mr. Havenga will speak for me. Mr. Havenga : At these Conferences some subjects appear on the agenda of each Conference whilst other important subjects, like currency, for instance, in 1923, may figure very prominently at one Conference and never require to be again brought up.

78