H.—44,

The range of articles imported into New Zealand is very wide and in almost all cases have increases taken place as compared with the previous year, one noteworthy feature being the increase recorded in imports of luxury items and capital goods. The higher prices now ruling for imported lines is a factor contributing to the increased aggregate of our imports, but the volume of imports has increased very substantially. This is not to be wondered at in view of the increased purchasing-power of the public. Okigin of Imports. Table V hereunder sets out the sources from which New Zealand obtains her imports over the pastfour years, values and percentages of total imports being shown :—

Table V.—Source of New Zealand's Imports (excluding Specie).

The table does not disclose any marked variation in the source of our imports as compared with previous years, and it is satisfactory to note that the proportion of our requirements obtained from Empire countries is slightly in excess of last year's figure. TRADE WITH UNITED KINDGOM. The trade of New Zealand with the United Kingdom in the calendar year 1937 marks a record so far as exports, valued at £50,724,550, are concerned, and on only one occasion have imports been valued at a figure in excess of £27,866,857, the value of imports in 1937. These figures represent increases of £5,231,561 and £6,014,510 respectively over the previous year's figures. The excess of exports over imports was £22,857,693. In our trade with the United Kingdom it is interesting to note that, of our total exports, 76-03 per cent, was absorbed by the Mother-land, against 80-15 per cent, in 1936, and this notwithstanding the increase mentioned above. On the import side, 49-62 per cent, of total imports into New Zealand were obtained from the United Kingdom, as against 49-51 per cent, in the previous year. At this juncture it is interesting to note that, per head of population, New Zealand ranks first in consumption of the produce and manufactures of the United Kingdom with £12 15s. sd. sterling, or £15 18s. approximately in New Zealand currency, the next greatest consuming country being the Irish Free State with £7 ss. 9d. sterling. • When speaking of the value of our export trade with the United Kingdom it must always be remembered that owing to several factors, notably lack of direct shipping to the Continent, much of our produce shipped to the United Kingdom is destined for other countries. In 1935 this entrepot trade was valued at £3,885,986 sterling. Wool, hides and skins, and butter form the greatest bulk of this trade, and in 1935, owing to the very greatly reduced quantity of wool re-exported, the figure given above is substantially below normal. It is recognized that imports from the United Kingdom comprise a huge variety of manufactured goods. Of these, motor-vehicles again show a substantial increase, being valued at £3,416,124, or £741,969 in excess of 1936 figures. Other marked increases have been in carpeting, imports in 1937 being £816,701 ; textile piece-goods, cotton £1,710,596, woollen £1,105,420, silk and artificial silk £430,032 ; iron and steel, plate and sheet, £1,371,568; tubes, pipes, and fittings, £432,665; cigarettes, £464,214 ; electrical machinery, including apparatus, £1,678,787.

5

1984. 1935. 1936. 1937. | Value ' centage. centre. VaIue - eantage. Value ' centage. British possessions, protectorates, &c, — £(N,Z.) £(N.Z.) £(N.Z.) £(N.Z.) United Kingdom .. .. 15,789,761 50-38 18,283,884 50-39 21,852,347 49-51 27,866,857 49-62 India .. .. .. 667,552 2-13 571,627 1-58 554,102 1-26 '58o'224 1-03 Ceylon .. .. .. 585,689 1-87 633,594 1-75 750,982 1-70 823'469 1-47 South African Union .. .. 56,092 0-18 55,800 0-15 119,385 0-27 131 971 0-23 Canada .. .. .. 2,098,610 6-70 2,450,616 6-75 3,325,692 7-53 4 564 051 8-13 Australia .. .. .. 3.238,124 10-33 3,955,677 10-90 4,941,313 11-19 6'594*572 11-74 Fiji .. .. .. .. 103,166 0-33 80,084 0-22 95,802 0-22 ' 0-17 Other British countries .. .. 600,619 1-92 571,401 1-57 558,435 1-26 1-23 Totals, British countries .. 23,139,613 73-84 26,602,683 73-31 32,198,058 72-95 41,349,816 73-62 Foreign countries and possessions - United. States of America . 3,749,559 11-96 4,534,086 12-50 5,525,431 12-52 6,960,191 12-39 France .. .. .. 240,813 0-77 221,982 0-61 215,115 0-49 '232*450 0-42 Germany .. .. .. 482,644 1-54 534,442 1-47 748,374 1-70 972'743 1-73 Belgium .. .. .. 137,139 0-44 217,516 0-60 409,102 0-91 0-97 Japan .. .. .. 836,595 2-67 l s 100,177 3-03 1,328,199 3-01 1.629,979 2-90 Dutch East Indies .. .. 1,381,974 4-41 1,437,379 3-96 1,722,802 3-90 2'238'l05 3-99 All other foreign countries .. 1,371,215 4-37 1,639,279 4-52 1,987,245 4-52 21231 j 461 3-98 Totals, all foreign countries .. 8,199,939 26-16 9,684,861 26-69 11,936,268 27-05 14,810,879 26-38 Totals, all countries .. 31,339,552 100-00 36,287,544 100-00 44,134,326 100-00 56,160,695 100-00