H.—44.

The importation of New Zealand butter continues, and direct exports of the commodity amounted to 20,281 cwt. in 1936. According to United States of America statistics imports from all sources of this product have decreased by 43 per cent, to approximately £(N.Z.)500,000. The activities of the New Zealand Trade and Tourist Commissioner in endeavouring to promote trade expansion with Western American States have been somewhat hampered by adverse influences notably the Pacific Coast shipping strike. There are, however, definite openings for speciality cheeses provided careful consideration is given to market requirements and for the supply to Pacific Coast markets of certain varieties of New Zealand fish. This question of New Zealand's export of fish has been investigated to some extent in the Dominion by the Department, but little interest has so far been displayed by local exporters. Inquiries made by American importers of timbers point to the possibility of developing a small trade in figured timbers for fancy panelling. The sale of our specialty woollen products, particularly travelling-rugs and reversible floor-rugs, would, it is felt, meet with a certain degree of success if specialized selling agencies were appointed. Special State restrictions in connection with the marketing of New Zealand beef, lamb and rabbits will need to be removed or partially removed before any appreciable amount of export trade could accrue to New Zealand. That there is a possibility of our obtaining a footing in this market is apparent from the retail prices for meats ruling on the Pacific Coast, and suitable action has been taken by the New Zealand Government with a view to the removal of these restrictions. The total external trade of the United States has increased in value by 12-5 per cent, above 1935 while in quantity the increase is 8-2 per cent. The great reduction in the export balance from £59,000,000 in 1935 to £8,250,000 in 1936 is accounted for by the following factors - (1) Greater increases in import-prices than in export prices. (2) Greater American purchasing-power in world markets. (3) The 1936 drought resulting in large importations and lower exports of agricultural products than usual. (4) The maritime strike's efiect on exports—estimated loss of $50,000,000 export sales. Imports increased by 18 per cent, from all countries and exports by 1\ per cent., while the trade with countries which have concluded reciprocal trade treaties with the United States of America show increases of 21-9 per cent, and 14-1 per cent, respectively. Trade with the British West Indies. It is gratifying to note that reciprocal trade with the British West Indies continues, and the table hereunder sets out the total trade with that colony over the past five years.

Total Trade with British West Indies.

* Excess of exports over imports. On balance over the five-yearly period there is an excess of exports over imports in favour o New Zealand, and with the improved shipping service in both the homeward and outward journeys we may look forward to an expanding trade with Jamaica. The imports from Jamaica comprise chiefly oranges, £16,671 (£18,990) ; grapefruit, £1 190 (£749) ; cocoa-beans, £6,455 (£16,756) ; rum, £8,213 (£5,055) ; asphalt and bitumen, £5,654 (£5,973) ; spices, £2,275 (£1,990). Figures in parentheses represent corresponding values for the calendar year 1935. The principal exports are given in the table below :—

12

Calendar Year. Total Trade. Direct Exports to Imports from Excess of Imports Jamaica. Jamaica. over Exports. £ £ £ £ 1932 .. .. .. 14,364 15 14,349 14,334 1933 .. .. .. 37,021 20,864 16,157 4 707* 1934 69,911 42,228 27,683 14M5* 1935 .. .. .. 109,973 53,966 56,007 2 041 1936 .. .. .. 93,773 48,796 44,977 3,819*

Principal Exports. Item. — ___ Calendar Year, 1935. Calendar Year, 1936. R . . £ ( N - Z -) £(N.Z.) Butter •• •• •• .. 50,406 . 45,866 GiLeese • • • • .... 360 ,213 Frozen meat . . I 07Q Tinned meat " . 67 , . .. Dried and condensed milk .... a7i W1» .• 1,386 £ - Other items .. .. .. ; 125 gyg Totals.. .. .. .. 53,966 48,796 x . V