H.—44,

It must be remembered, of course, that considerable quantities of goods shipped to the United Kingdom are re-exported to the Continent. The chief direct exports to the European countries listed above are as follows —

Table XXV.—Direct Exports to European Countries listed above.

During the year under review trade agreements have been concluded with Germany, Switzerland, and the Netherlands, while negotiations are taking place with France. A modification to the Belgian agreement was also made in respect of gloves. As the result of these agreements and the activities of the New Zealand Trade Commissioner in Europe larger quantities of our butter and apples are now being marketed on the Continent. TRADE WITH THE EAST. Trade with Eastern countries is set out in Table XXVI below, and is noteworthy in that it shows a very marked growth in exports and a smaller though substantial increase in imports from those countries :—

Table XXVI. —Total Trade with Eastern Countries.

Of the exports, Japan obtained a greater quantity of wool from New Zealand. China increased her imports from New Zealand by £49,214 : Wool, £46,303 (£18,081) ; tallow, £8,761 (£2,136) ; butter, £22,895 (£7,988). India took butter, £19,142 (£15,743) ; tallow, £103,432 (£89,751). Hong Kong : Butter, £16,564 (£13,480) : fungus, £6,253 (£5,616); and apples, £458. In imports, increases are noticeable from all countries other than China and Burma. From China we obtain walnuts, rice, brushmakers' materials, tea, silk, and artificial silk piece-goods. From Hong Kong : Boots and shoes ; electric lamps ; wood, cane, and wicker manufactures. Netherlands East Indies ; Motor-spirit, kapoc, peanuts, sugar, &c. Tea from Ceylon. Canned pineapples from Malaya.

14

Commodity. , 1936. 1937. Commodity. 1936. 1937. I I £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Wool .. .. 2,513,943 2,693,783 Seeds, grass and olover 7,648 5,409 Sheep-skins, with wool 78,847 64,131 Casein .. .. 8,148 10,091 Pelts .. .. 72,630 9,749 Tallow .. .. 16,928 18,848 Cattle-skins .. .. 112,299 143,976 Eabbit-skins .. 11,431 12,445 Calf-skins .. .. 46,343 71,270 Sausage-casings .. 320 4,966 Apples .. .. 32,613 36,375 Fish .. .. 3,704 618 Kauri-gum .. .. 14,322 9,746 Butter .. .. .. 65,000

1934. 1935. 1936. 1937. , - | Exports to — £(N.Z.) £(N.Z.) £<N.Z.) j £(N.Z.) Dutch East Indies .. .. 2,548 2,235 1,894 | 4,053 British Malaya .. ..I 49,727 63,771 71,383 78,869 Burma .. .. . • 208 618 946 584 Ceylon .. .. .. 393 1,528 1,401 1,074 Hong Kong .. .. .. 16,238 11,249 22,176 27,115 India .. .. 65,161 60,956 125,826 135,730 China .. .. .. 19,099 7,718 32,854 82,068 Japan .. .. .. 856,014 432,495 1,554,837 3,131,986 Philippine Islands . . . . 2,493 3,945 5,983 9,304 Totals .. .. .. 1,011,881 584,515 1,817,300 3,470,783 Imports from — Dutch East Indies .. .. 1,381,974 1,437,379 1,722,802 2,238,105 British Malaya .. . . j 64,826 81,457 97,246 108,934 Burma .. .. . . 11,622 9,679 11,361 10,014 Ceylon .. .. .. 585,689 633,594 750,982 823,469 HongKong .. .. .. 9,681 10,356 17,695 25,688 India .. .. .. 667,552 571,627 554,102 580,224 Japan .. .. .. 836,595 1,100,150 1,328,199 1,629,979 China .. .. .. 98,454 97,244 151,299 143,637 Philippine Islands .. .. 13,268 10,837 14,824 27,644 Totals .. .. .. 3,669,661 3,952,333 4,648,510 5,587,704