H.—44.

The importance of the United Kingdom as a market for our principal primary products is readily apparent from the foregoing statistics. As remarked in the previous section, there has, however, been a steady decline in the proportion of our total exports taken by the United Kingdom, the percentage having fallen from 88-02 in 1931 to 82-36 in 1934. Conversely, there has been a compensating increase in the relative importance of other markets. In 1934, for example, the percentage taken by Belgium, France, Germany, and Japan showed a substantial increase in each case over 1933. Compared with the United Kingdom, however, other overseas markets still remain relatively small. In considering the importance of the United Kingdom as a market for New Zealand products, it must be borne in mind that a not inconsiderable part of our exports is sent thither merely as a convenient depot for subsequent sale and shipment to the Continent of Europe and to America. Prior to the depression that has prevailed during the past few years this re-export trade in New Zealand produce amounted to between £7,000,000 and £8,000,000 per annum, but since 1930 the figures have been as follows: 1930, £4,612,765 ; 1931, £4,118,702 ; 1932, £3,798,311 ; 1933, £5,264,804. The figures of re-exports for 1934 are not yet available. As has already been pointed out, the proportion of our imports derived from the United Kingdom has steadily increased during the past four years, rising from 49-17 per cent, in 1931 to 51-46 per cent, in 1933. Actually this tendency was in evidence even before 1931, for in 1929 and 1930 the percentage was still lower, being 46-25 and 47-27 respectively in those years. These figures indicate that practical expression is being given by New Zealand to the strong sentiment that prevails in this Dominion towards closer trade relations with the Empire, and especially with the United Kingdom. Trade with Australia. The value of our trade with Australia in each of the past five calendar years is shown in the table below :—

Despite many adverse circumstances, both our export and our import trade with the Commonwealth have shown substantial increases since 1931. Ranking next to the United Kingdom, Australia is now our second best customer for our products, and is also next in importance to the United Kingdom as a supplier of goods to New Zealand. Considerable attention has continued to be paid by the Trade Commissioner at Sydney to the development of our export trade, and reports have been submitted from time to time. These relate to such commodities as timber, fish, hides and skins, wool, and Phormium tenax. Wherever possible exporters and importers in New Zealand have been put in touch with buyers and sellers of a number of products in Australia. The following table covering the past two calendar years shows the nature of the commodities that enter into our export trade with the Commonwealth, and the quantities and values of the principal items:—•

6

Yew ended 31st December, j 'TZĒT £ £ £ 1930 .. .. 1,562,281 3,308,915 4,871,196 1931 .. .. 1,169,055 2,437,955 3,607,010 1932 .. .. 1,444,860 2,681,393 4,126,253 1933 .. .. 1,393,311 2,674,683 4,067,994 1934 .. .. 1,922,516 3,238,124 5,160,640 ; ,

1933. 1934. Quantity. Value. Quantity. Value. £ £ Timber, sawn .. .. Sup. ft. 24,842,870 226,595 33,205,938 305,615 Phormium tenax (New Zealand Tons 1,857 23,750 2,607 36,750 hemp) Tow .. .. .. 513 4,590 500 4,179 Grass and clover seeds .. Cwt. 19,475 41,513 18,292 49,885 Peas .. .. .. Centals 17,482 19,270 19,883 19,436 Oats .. .. .. „ 2,612 932 3,051 1,307 Fish, frozen .. .. Cwt. 26,469 45,400 47,552 93,422 Sugar of milk .. ..Lb. 170,240 5,007 371,920 9,94-2 Wool .. .. .. „ 6,087,740 170,045 8,098,596 331,980 Tallow .. .. .. Tons 1,116 23,159 678 11,681 Sausage-casings .. ..Lb. 281,721 10,372 248,245 13,447 Hides, pelts, and skins— Calf-skins .. ..No. 101,028 16,982 337,964 63,027 Cattle-bides .. .. „ 88,212 100,768 139,971 183,517 Sbeep-skins, with wool .. ,, 16,145 1,865 578 141 Sheep-skins, without wool .. ,, 257,493 8,212 217,533 14,521 Pumice sand and stone .. Tons 2,112 7,686 2,279 6,179 Gold—Bar, dust, ingot, and Oz. 25,793 175,797 24,736 190,974 sheet